March 18, 2011 Posts

Business / Economic / Financial
[ This link to a somewhat more cumulative blog posts page will precede current
days news since most all topics remain current in terms of impact and
longer-term effect and can be searched by topical index term more easily.
The same is provided since the blog site http://alpeiablog.blogspot.com
has just been censored as to size by google which is typical for google as
nsa / cia / gov’t shill as more are becoming aware of. The same is true for
microsoft, another co. that’s seen their best days and relies on the
government to maintain their monopoly. Up to now the better page
http://www.scribd.com/alpeia is provided for ease of formatting and clarity
thereby while the Washington Post page is the real deal but without
formatting http://www.washingtonpost.com/wp-
srv/community/mypost/index.html?
plckPersonaPage=PersonaComments&plckUserId=alpeia&newspaperUserId
=alpeia (Only up to 3-11-11 - (Washington Post) [ Comments COMMENTS
ARE CLOSED WHILE WE UPGRADE OUR SYSTEMS ] the comments are no
longer archived on their site ) . The following is the cumulative archive of
blog posts / topics for 2010 as the new year starts anew:
http://albertpeia.com/December312010postsarchive.htm or PDF formatted
version
http://albertpeia.com/December312010postsarchive.pdf ]
Overseas official trips amidst crises (Washington Post) [ It’s really quite
incredible indeed. It was the espn basketball brackets that got me … so
stereotypical … I mean what are they thinking, or not. Riiiight! Not! Well,
gates is gone and as a cia man, what he says means absolutely nothing …
they kind of pride themselves on that … On the receiving end you gotta think
they’re already checking air force one’s return trip schedule hoping to ‘hold
out’ and escape potential invasion themselves … After all, what nation in the
world can or does trust desperate, meaningfully lawless, pervasively
corrupt, defacto bankrupt america … oh yeah, maybe fellow war crimes
nation israel and orwellian, me-too old-biddy britain. ] As war clouds
gathered over Libya on Friday, the U.S. commander in chief and his defense
secretary were each preparing to leave Washington to visit places far
removed from any military operations.
Gaddafi’s forces enter Benghazi as U.S., allies plan military action (Washington
Post) [ Ron Paul: Libya Airstrikes Unconstitutional – Only Congress Can
Declare War Infowars / Libya, Hypocrisy and Betrayal by the United
Nations: US-NATO’s New War in North Africa of Death and Destruction The
bombing of Libya will begin on or nearly to the day, of the eighth
anniversary of the beginning of the destruction of Iraq, 19th March, in
Europe. A People Betrayed: West Launches New War for Oil in Libya And so
now, another war. Led by the United States and the religious extremists in
Saudi Arabia, the UN Security Council voted to intervene on behalf of one
side in the Libyan civil war. Having already armed and trained Moamar
Gadafy’s armies and security forces, the Western war-profiteers have now
decided to do the same for his opponents. Another Illegal War Of Slaughter
Couched In “Humanitarian” Doublespeak Those who were asking what the
“international community” planned to do in response to the escalating
global crisis surrounding the nuclear plant in Fukushima now have their
answer – bomb Libya. As if the world wasn’t experiencing enough turmoil
and devastation, another illegal war of aggression has been launched in a
volatile region, couched in the retching Orwellian doublespeak of ‘no fly
zones’ and ‘humanitarian’ rhetoric. ] Obama warns that Libyan leader faces
imminent military action unless troops withdraw from disputed cities, but
assaults on rebel-held towns continue.
Pressure on nuclear regulators heats up in U.S. (Washington Post) [ You can bet
that g.e. will be feeling some heat … and the courts in Japan, unlike those in
the pervasively corrupt u.s. where g.e. would probably have their way
regardless of merits, will be very unsympathetic.] The Union of Concerned
Scientists released a study citing 14 “near-misses” at domestic plants last
year.
Senators call on Obama to join deficit reduction talks (Washington Post) [ I truly
believe they have totally lost touch with reality (Davis ‘… This is how we
pay off our current debts and I think bondholders are simply happy to get
anything out of a country that admits it owes $15Tn (1/4 of global GDP) but
probably owes closer to $60Tn (entire global GDP) in the form of unfunded
liabilities. The funniest thing about this (and you have to laugh) is to see
Conservative pundits get on TV and talk about how we need to cut $100Bn
worth of discretionary spending to "fix" this (while continuing to spend $1Tn
on the military and $1Tn on tax cuts for the top 1% each year). Furthermore,
I think they substantially underestimate the ‘geese and gander’ effect (ie.,
Ellen Bente Oliver ‘Salary of House/Senate...$174,000. Salary of Speaker of
House...$223,500. Salary of Majority/Minority Leaders...$193,400. Average US
Salary...$33,000 to $77,000. Maybe our elected officials should make an
average salary too...It's a time of sacrifice after all...Pass along, post on your
own page if you agree…’). Fears over Japan impact grow (Washington Post)
[ As indeed they must, in keeping with some semblance of reality. ] Some
analysts predict the tragedy could dramatically disrupt the fragile global
economic recovery. [ You can bet that some bets already placed regarding
Japan’s prospective action in the markets; ie., buying or rolling over
government securities of such as the u.s., particularly, now fall under that
foreboding platitude, ‘all bets are off’. This is an economically / financially
staggering event and found the stock market rise of the last two days
incomprehensible until I realized as set forth immediately hereafter: I was
somewhat nonplussed by the suckers’ market bounce these past two days,
and then, ‘Eureka!’ … there it was, staring down for all to see … a blazing
full moon. Yes, they have such affects on lunatics as on wall street and it
certainly doesn’t take much to push the frauds on wall street over the edge
and into their predisposed fraudulent madness. In fact, you could say, ‘it’s
in their genes’. This is the grim economic reality [
http://albertpeia.com/grimreality.htm ]. This manipulated bubble in this
secular bear market based on b*** s*** alone and today’s short-covering /
suckers’ rally provides an especially great opportunity to sell / take profits
while you still can since there's much worse to come! ] The act is a
powerful sign of bipartisan willingness to abandon long-held positions on
entitlement spending and taxes.
Fears over Japan impact grow (Washington Post) [ As indeed they must, in
keeping with some semblance of reality. ] Some analysts predict the tragedy
could dramatically disrupt the fragile global economic recovery. [ You can
bet that some bets already placed regarding Japan’s prospective action in
the markets; ie., buying or rolling over government securities of such as the
u.s., particularly, now fall under that foreboding platitude, ‘all bets are off’.
This is an economically / financially staggering event and found the stock
market rise of the last two days incomprehensible until I realized as set forth
immediately hereafter:
I was somewhat nonplussed by the suckers’ market bounce these past two days,
and then, ‘Eureka!’ … there it was, staring down for all to see … a blazing full
moon. Yes, they have such affects on lunatics as on wall street and it certainly
doesn’t take much to push the frauds on wall street over the edge and into their
predisposed fraudulent madness. In fact, you could say, ‘it’s in their genes’. This
is the grim economic reality [ http://albertpeia.com/grimreality.htm ]. This
manipulated bubble in this secular bear market based on b*** s*** alone and
today’s short-covering / suckers’ rally provides an especially great opportunity to
sell / take profits while you still can since there's much worse to come! Looking
Like A Good Time To Sell Into Strength - Harding ‘Many important global stock
markets, including China, Brazil, India and Hong Kong, have been in fairly
significant corrections since November, down between 12% and 17%. Their major
concerns have been rising inflation and the resulting monetary tightening by their
central banks to combat the inflationary pressures...So was this week’s stumble
the beginning of a more serious correction? …’ BOB PRECHTER: We're Still In A
Massive Bear Market And Stocks Will Crash To New Lows
Global Meltdown? [ Looks like … feels like … seems like … Yes, it is! A
global meltdown! ] Nyaradi ‘Global meltdown.Scary words, indeed.
However, as we look around our world, it certainly does appear that a global
meltdown is in progress…’
Global Meltdown? [ Looks like … feels like … seems like … Yes, it is! A global
meltdown! ] Nyaradi ‘Global meltdown.Scary words, indeed. However, as we look
around our world, it certainly does appear that a global meltdown is in
progress.At Wall Street Sector Selector, we are nearly fully positioned on the
“short” side of global markets and so were fortunate to have had a pleasant day,
unlike so many investors and citizens of our small world. I sincerely hope and
pray that many pleasant days lie ahead for the people of Japan, Bahrain and
Libya.Of course, the big news is in Japan, where the struggle to contain the
potential of nuclear meltdown goes on after the tsunami and earthquake. I can’t
add much to this discussion other than to say that from a human standpoint, we
need to do what we can to help our allies in their time of need.I travel often to
Japan and this is a modern Western country now without power and water and
basic essentials for many days, and to fully understand this unthinkable tragedy,
just try to imagine a 30 foot wall of water coming through your neighborhood,
entire neighborhoods and towns disappearing, followed by the threat of nuclear
catastrophe and no water and power for days on end during these cold early
spring nights.Aside from the human catastrophe, the economic toll of this event
will be felt for years. Some analysts estimate that Japan will have to import an
additional 200,000 barrels of oil per day to make up for the lost output of the
damaged nuclear plants, while insurance and GDP losses are only guestimates at
this early hour but will be surely significant.Across the globe, unrest continues in
the Middle East as Bahrain is under martial law, the Libyan government continues
to quell the revolution (while the United Nations dithers) and Portugal’s credit
rating is downgraded and totters again on the edge of financial collapse. At
home, Congress continues putting band aids on our national budget deficit while
home sales plunge to new lows…’
Gadhafi Does a Head Fake: Dave's Daily ‘He declared an immediate cease fire to
perhaps buy some time; however, he didn't stop his troops advance. The rebels
also didn't stop fighting back correctly believing he was lying. It's unclear if his
forces can retake important Benghazi before multinational forces enforce the "no
fly zone." The UN vote was interesting with all BRIC countries plus Germany
abstaining. Russia and China don't want to be on the world team and have their
own agendas of global domination. The rest are a harder read. Markets were
higher early on the belief Libya fighting would subside, Japan's reactor issues
would be resolved and hopeful signs from GE (later a bust), CSCO and bank
dividend schemes. However, as the news developed, Libya proved it wasn't about
to stop its aggression and the Japan reactor issues remained heightened causing
markets to decline into the close. There wasn't any economic data to speak of
although the government noted (admitted?) the unemployment was higher in
most of 372 markets in January throwing doubt on previous claims of lower data.
The Fed is also continuing its POMO actions although Friday's buying was low.
Bonds were somewhat weaker, Uncle Buck is homing in on all-time lows,
commodities overall were higher as were precious metals. In the end nothing
much mattered given quad-witching antics which have little to do with the news
or much else--it's just a spectator sport. Volume remains elevated especially with
quad-witching on Friday. Breadth per the WSJ was positive relieving much short-
term oversold conditions…’
Why To Distrust The Snap-Back Rally Harding ‘Thankfully the news out of Japan
regarding the potential for nuclear meltdowns has subsided, and global stock
markets have rallied for two days in relief. Many on Wall Street are claiming the
correction in global stock markets is therefore over, and it’s a buying opportunity.
Let’s think this through and not react too quickly. The human toll and economic
damage in Japan was from the earthquake, not the subsequent potential
problems with nuclear plants.
Let’s consider first what was going on prior to the catastrophe.
Global markets were in quite significant corrections. For instance Brazil, China,
India, and Hong Kong, topped out in November and were down 12% to 17% prior
to the earthquake. Markets in Europe and the U.S. peaked in mid-February and
were down 3% to 4%.
So an important question is whether the factors that had global markets already
topped out prior to the earthquake have gone away. Unfortunately, the answer is
that they remain in place, and if anything have worsened, and the aftermath of the
disaster in Japan will likely add to them.
Those continuing problems are:
• Rising global inflation.

• Increasingly aggressive monetary tightening by important countries like
Brazil, China, India, Hong Kong, and smaller emerging markets, in efforts to
tackle the rising inflation, moves likely to also slow their economic growth.
• Uncertainties created by political uprisings in oil-producing countries.
• The on-going European debt crisis.
• Austerity programs in European countries aimed at tackling the debt crisis,
including cuts in government spending and jobs.
• The coming cutbacks in U.S. federal, state, and local government spending
to tackle their record budget deficits.
• The approaching end of the Fed’s QE2 pump-priming program.
Now added to those problems is the massive natural disaster in the world’s third
largest economy, Japan, a very important part of the global manufacturing and
high-tech supply chain. It has come at the worst time for the struggling Japanese
economy. The damage has already forced the closing of factories by Nissan,
Toyota, and Sony, as well as several oil refineries, while large agricultural areas
were wiped out, which can only add to concerns about rising food prices. Japan’s
problems will affect other global economies.
Optimists are pointing to reconstruction as being a positive for Japan’s economy,
noting that six months after the Kobe earthquake in Japan in 1995 almost all of
Kobe’s factories and infrastructure had been rebuilt. They are leaving out that
Japan’s stock market declined for six months after the smaller Kobe earthquake
and during the re-building stage, losing 32% of its value. At the present time, the
Japanese market is down only 15%.
Meanwhile, European central banks have now acknowledged inflation concerns,
and the UK says it could begin raising interest rates as soon as its April meeting.
The uprisings in oil-producing countries have not gone away, and indeed have
become more violent. In Libya, Dictator Muammar Gaddafi launched military
operations this week to crush demonstrators, and the U.N. authorized military
attacks against Gaddafi forces to assist the demonstrators. The previously
peaceful uprising in Bahrain became violent after Bahrain’s royal family called in
military forces from Saudi Arabia to help it put down the revolt.
The uprisings in Egypt, Tunisia, Libya, Bahrain, and Yemen, and unrest in Syria,
Iran, and Saudi Arabia, reportedly even have leaders in Russia, Cuba, and China
nervous.
In the European debt crisis, Portugal’s credit rating was downgraded further this
week, and its Prime Minister said he will quit if Portugal’s parliament does not
consent to his proposed austerity measures.
And on it goes. The previous problems that had global stock markets topped out
on fears of rising inflation and concerns about the sustainability of the fragile
global economic recovery, have not gone away, and if anything worsened while
attention was diverted by the disaster in Japan.
On the technical analysis side, the additional five-day market plunge following the
disaster in Japan had markets short-term oversold, and likely to see a short-term
rally off the oversold condition, but it’s questionable whether a bottom is in yet,
particularly in the U.S.
At their peaks, global stock markets, including that of the U.S., were extremely
overbought above their long-term 200-day moving averages, to a degree that
almost always results in a decline at least down to retest the support at that
moving average. In their corrections, some of which began in November, others
in mid-February, markets in Asia and Europe did decline to that moving average.
In several cases the support did not hold and they broke below it.
But the U.S. market so far has pulled back only 6%, leaving it still 7% above its
200-day m.a.
Additionally, investor sentiment in the U.S. does not indicate a bottom. This
week’s poll of its members by the American Association of Individual Investors
(AAII) shows bearishness has increased to 40.1%, but that is still well below the
55% to 65% bearishness usually seen prior to market lows.
So for now anyway, I still like the safe haven of treasury bonds, which I wrote up
in my column last weekend. The iShares 20-yr bond etf, symbol TLT, has gained
more than 5% in the five weeks since its early February low. And I still like gold
bullion and the SPDR Gold etf, symbol GLD. Gold is the long-time hedge against
rising inflation. I even like the idea of some downside positions against the U.S.
market, and I’m looking at some toppy looking stocks that might be short-sale
candidates.’
Stocks Achieve Back-to-Back Gains, But Nasdaq's 2.7% Drop Leads Weekly
Declines Midnight Trader ‘4:13 PM, Mar 18, 2011 --
• NYSE up 51.16 (+0.6%) to 8,116.02

• DJIA up 83.93 (+0.7%) to 11,859
• S&P 500 up 5.48 (+0.43%) to 1,279
• Nasdaq up 7.62 (+0.3%) to 2,644
GLOBAL SENTIMENT
• Hang Seng up 0.07%
• Nikkei up 2.72%
• FTSE up 0.64%
DOWNSIDE MOVERS
(-) NKE continues evening decline that followed earnings miss.
(-) AN downgraded.
(-) AEO downgraded.
UPSIDE MOVERS
(+) LO down as FDA weighs restrictions on menthol cigarettes.
(+) EL reaffirms earnings guidance that's below Street view.
(+) CRA sold to Quest Diagnostics for $8 a share.
(+) F initiated with Buy rating.
(+) RIMM initiated with Buy rating.
(+) GE finding some traction after early-week post-quake drop.
MARKET DIRECTION
Stock averages end firmer though in the middle to lower end of the day's range.
Weekly losses follow Japan's earthquake, one week ago today, and its nuclear
aftermath. The Nasdaq ends down 2.7%; the S&P off 1.9%; the DJIA also lower.
Reports of the government's call for a ceasefire in Libya, gains for U.S. banking
shares amid revived dividends and global help to cool the Japanese yen
combined to lift stocks Friday. Stocks did give back some of their earlier gains in
afternoon trading shortly after President Obama said the U.S. and some of its
allies were prepared to launch military action in Libya if the fighting there doesn't
cease.
Markets moved higher early on in response to Group of Seven action to curb a

surging yen though Japan's nuclear risks remain in focus and the situation is still
volatile. There were no U.S. economic reports scheduled.
Light, sweet crude oil for April delivery finished down 0.4%, or $0.35 to $101.07 a
barrel. In other energy futures, heating oil was down 1.33% to $3.02 a gallon while
natural gas was down 0.02% to $4.15 per million British thermal units. Meanwhile,
gold futures rose on safe-haven investing despite positive developments in
Libya. Gold for April delivery finished up 0.9% to $1,416.10 an ounce. In other
metal futures, silver was up $2.43 to $35.09 a troy ounce while copper traded up
0.08% to $4.34.
The U.S. dollar index (DXY) is down 0.48% to $75.67.
JPMorgan Chase & Co (JPM), Wells Fargo & Co (WFC) and other major U.S.
banks plan to boost their dividend payments after passing stress tests evaluated
by the Federal Reserve, they announced today.
The dividends, and announcements of share buybacks in some cases, signal that
regulators view banks as being healthy enough to withstand the remaining
uncertainties in the economy, after the banking system has been profitable for a
year, Reuters said.
In company news:
Cisco (CSCO) is higher after it says it will pay its first ever quarterly cash
dividend to shareholders. A quarterly dividend of $0.06 per common share will be
paid on April 20 to all shareholders of record as of the close of business on
March 31. Future dividends will be subject to Board approval, it said.
Amgen (AMGN) says the Committee for Medicinal Products for Human Use
(CHMP) of the European Medicines Agency (EMA) has adopted a negative opinion
for the company's application to extend the marketing authorization in Europe for
Vectibix to include combination with chemotherapy to treat patients with wild-
type KRAS metastatic colorectal cancer (mCRC).
General Mills (GIS) has entered into exclusive talks with French private equity
group PAI Partners and French dairy cooperative Sodiaal SA to buy a 50% stake
in the entity which owns yogurt-maker Yoplait SAS and affiliated companies. As
part of that offer, General Mills would take a controlling stake in the operating
company. The U.S. company did not put any figure on the deal, saying
negotiations are in progress. General Mills said via a partnership with Sodiaal, it
plans to expand and grow the Yoplait brand and business in France, Europe and
globally. General Mills licensed the Yoplait brand in 1977, and is its largest
licensee.
Morgan Stanley (MS) shares are higher after Bloomberg reported that the
investment bank is beginning to win more business from smaller private equity
firms after forming a group to concentrate on the sector. The bank trying to make
more in fees from buyouts, the report said.
Teva (TEVA) says the Committee for Medicinal Products for Human Use (CHMP)
of the European Medicines Agency (EMA) adopted a positive opinion for NOMAC-
E2, an investigational contraceptive pill combining 1.5 mg of 17-beta-estradiol
with 2.5 mg of nomegestrol acetate in a 24/4 monophasic regimen. The CHMP
issued its positive opinion following a review of data derived from clinical trials
evaluating NOMAC-E2.
Qualcomm Inc. (QCOM) is in talks with several firms, including Bharti Airtel Ltd.,
India's largest mobile-phone operator, as it seeks to advance a planned exit from
the four ventures housing its broadband-wireless licenses, Dow Jones
Newswires reported, citing a person familiar with the matter. Bharti Airtel's
planned bid for the assets of the U.S. mobile-phone chip maker appears to be the
most advanced, although any actual transaction may take at least another two to
three months, the report said.’
Housing Starts and the New Bear Market [ Actually, this has been a manipulated
bull (s***) cycle in a (continuing) secular bear market. ] Suttmeier ‘Housing Starts
and Building Permits disappoint. Part of my bear market theme is that Federal
Reserve policy has failed to help cure the original catalyst that began the bear
market of October 2007 to March 2009. Homebuilder stocks peaked in mid-2005,
community banks peaked at the end of 2006, and regional banks including those
considered "too big to fail" topped out in March 2007. Housing remains
depressed, and community banks continue to fail on "Bank Failure Friday!" You
would think that the zero to 0.25% federal funds rate in effect since December 16,
2008 would have helped, but it has not. You would think that QE2, which comes
to an end on June 30 would have helped, but it has not. Meanwhile the FOMC
ignores the rising cost of living on Main Street USA. Ben Bernanke needs to be
replaced as Fed Chairman!
Wednesday morning we learned that housing starts and building permits for new
home construction posted unexpected declines. Housing Starts plunged 22.5%
from January to a seasonally adjusted 479,000 units, the second slowest pace on
record. Building Permits fell 8.2% to a record low pace of 517,000. How come the
zero percent money from the Fed and QE2 cannot get to the cause of "The Great
Credit Crunch," which continues since March 2007?
The New Bear Market – Most of my readers know that I was bearish beginning in
March 2007 led by housing and financials. The broader market continued to rally
into October 2007. With the Dow above 14,000 I predicted that the next 2000 Dow
points would be down, not up. I became a bull on March 5, 2009 for a 40% to 50%
bear market rally. Sure I missed some of the rally in 2010, but in September called
for Dow 11,235 by election day on the prospect of a Republican victory, and re-
iterated that call in early-October in anticipation of QE2. My call for 2011 is that
strength would fail below 12,600, and I predicted the top on February 18 at
12,391.29 for both fundamental and technical reasons. We had a ValuEngine
Valuation Warning with 68.6% of all stocks overvalued. Today only 49.6% of
stocks are overvalued. Today 11 of 16 sectors are overvalued, but just one by
double digits. The Dow Industrial Average was extremely overbought on its
weekly chart. A close on Friday below 11,856 will pull momentum (12x3x3 weekly
slow stochastic) below 8.0, which to me is the confirmation of a cycle high. On
February 18 this reading was 9.5. My first downside objective is my annual risky
level at 11,491. Given a close in March below 11,491 the downside is to
semiannual value levels at 10,959 and 9,449.
10-Year Note – (3.210) This yield declined to 3.139 on a continued flight to quality
on Wednesday closing in on the 200-day simple moving average which lines up
with my monthly risky level at 3.015 and 3.002. Today’s pivot is 3.264 with weekly
value level at 3.634.
Comex Gold – ($1396.7) The 50-day simple moving average is $1379.6 with my
annual value level at $1356.5, and my weekly pivot at $1404.1, which was tested
on Wednesday. Monthly and quarterly pivots are $1437.7 and $1441.7 with my
semiannual risky level is at $1452.6.
Nymex Crude Oil – ($98.28) Held my monthly value level at $96.43 on Wednesday
and stayed below my annual pivots at $99.91 and $101.92. My daily pivot is $98.23
with semiannual and quarterly risky levels at $107.14 and $110.87.
The Euro – (1.3890) It appears that my weekly risky level at 1.4089 is a barrier. My
quarterly value level is 1.3227 with a daily pivot at 1.3846, and weekly, semiannual
and monthly risky levels at 1.4089, 1.4624 and 1.4637.
All daily charts for the major equity averages are negative – The Dow is below 50-
day simple moving average at 12,011 with declining daily momentum (12x3x3
daily slow stochastic). There are no oversold measures as yet. Wednesday’s low
was 11,555.48…’ Housing Starts Point to Weakening Housing Market Suttmeier
‘Housing Starts, Building Permits Disappoint -- Part of my bear market theme is
that Federal Reserve policy has failed to help cure the original catalyst that began
the bear market of October 2007 to March 2009. Home builder stocks peaked in
mid-2005, community banks peaked at the end of 2006, and regional banks
including those considered “too big to fail” topped out in March 2007. Housing
remains depressed, and community banks continue to fail on Bank Failure
Friday! You would think that the zero to 0.25% federal funds rate in effect since
December 16, 2008 would have helped, but it has not. You would think that QE2,
which comes to an end on June 30, would have helped, but it has not. Meanwhile
the FOMC ignores the rising cost of living on Main Street, USA. Ben Bernanke
needs to be replaced as Fed Chairman!
Wednesday morning we learned that housing starts and building permits for new
home construction posted unexpected declines. Housing starts plunged 22.5%
from January to a seasonally adjusted 479,000 units, the second slowest pace on
record. Building permits fell 8.2% to a record low pace of 517,000. How come the
zero percent money from the Fed and QE2 cannot get to the cause of “The Great
Credit Crunch," which continues since March 2007?
The New Bear Market -- Most of my readers know that I was bearish beginning in
March 2007 led by housing and financials. The broader market continued to rally
into October 2007. With the Dow above 14,000 I predicted that the next 2000 Dow
points would be down, not up. I became a bull on March 5, 2009 for a 40% to 50%
bear market rally. Sure I missed some of the rally in 2010, but in September called
for Dow 11,235 by Election Day on the prospect of a Republican victory, and
reiterated that call in early October in anticipation of QE2. My call for 2011 is that
strength would fail below 12,600, and I predicted the top on February 18 at
12,391.29 for both fundamental and technical reasons. We had a ValuEngine
Valuation Warning with 68.6% of all stocks overvalued. Today only 49.6% of
stocks are overvalued. Today 11 of 16 sectors are overvalued, but just one by
double digits. The Dow Industrial Average was extremely overbought on its
weekly chart. A close on Friday below 11,856 will pull momentum (12x3x3 weekly
slow stochastic) below 8.0, which to me is the confirmation of a cycle high. On
February 18 this reading was 9.5. My first downside objective is my annual risky
level at 11,491. Given a close in March below 11,491 the downside is to
semiannual value levels at 10,959 and 9,449.
10-Year Note -- (3.210) This yield declined to 3.139 on a continued flight to quality
on Wednesday closing in on the 200-day simple moving average which lines up
with my monthly risky level at 3.015 and 3.002. Today’s pivot is 3.264 with weekly
value level at 3.634.[chart]
Comex Gold -- ($1396.7) The 50-day simple moving average is $1379.6 with my
annual value level at $1356.5, and my weekly pivot at $1404.1, which was tested
on Wednesday. Monthly and quarterly pivots are $1437.7 and $1441.7 with my
semiannual risky level is at $1452.6. [chart]
Nymex Crude Oil -- ($98.28) Held my monthly value level at $96.43 on Wednesday
and stayed below my annual pivots at $99.91 and $101.92. My daily pivot is $98.23
with semiannual and quarterly risky levels at $107.14 and $110.87.[chart]
The Euro -- (1.3890) It appears that my weekly risky level at 1.4089 is a barrier. My
quarterly value level is 1.3227 with a daily pivot at 1.3846, and weekly, semiannual
and monthly risky levels at 1.4089, 1.4624 and 1.4637.[chart]
All daily charts for the major equity averages are negative -- The Dow is below 50-
day simple moving average at 12,011 with declining daily momentum (12x3x3
daily slow stochastic). There are no oversold measures as yet. Wednesday’s low
was 11,555.48.[chart]
Key Levels for the Major Equity Averages
• The Dow Industrial Average (11,613) -- My annual value level is 11,491 with
a daily pivot at 11,746, and weekly and monthly risky levels at 12,400 and
12,741.
• The S&P 500 (1256.9) -- My annual value level is 1210.7 with my quarterly
pivot at 1262.5, my daily pivot at 1266.3, and weekly and monthly risky
levels at 1327.3 and 1381.3. A weekly close below 1284 shifts the weekly
chart profile to negative.
• The NASDAQ (2617) -- My daily pivot is 2611 with weekly, quarterly and
monthly risky levels at 2753, 2853 and 2926. Semiannual and annual value
levels are 2363, 2335 and 2172.
• The NASDAQ 100 (NDX) (2203) -- My daily pivot is 2201.8 with weekly,
quarterly, and monthly risky levels at 2333, 2438 and 2499. Semiannual
value levels are 2006.8 and 1927.6.
• Dow Transports (4950) -- My quarterly value level is 4671 with a weekly

pivot at 4995, and daily and annual pivots at 5051 and 5179.
• The Russell 2000 (781.90) -- My quarterly value level is 765.50 with daily and
annual pivots at 778.07 and 784.16, and a weekly pivot at 805.37, and
monthly risky level at 850.79. Semiannual value levels are 631.62 and
567.74.
• The Philadelphia Semiconductor Index (SOX) (412.44) -- My daily value level

is 396.87 with weekly, monthly and quarterly risky levels at 447.74, 453.89
and 465.93. Semiannual and annual value levels are 296.89, 270.98 and
259.30. ‘
NY Fed intervenes in Yen currency trade Nikkei | The NY Fed bank is confirming
its first currency intervention for a decade.
Our Enemy, the Fed by Ron Paul Ron Paul | There is perhaps no topic as
important to the average American today as rising prices.
Michigan passes ‘financial martial law’ bill Politico | Michigan legislators have
approved a bill authorizing state-appointed emergency financial managers to
break union contracts.
US Cost of Living Hits Record, Passing Pre-Crisis High One would think that after
the worst financial crisis since the Great Depression, Americans could at
least catch a break for a while with deflationary forces keeping the cost of
living relatively low. That’s not the case.
Oil prices soar as UN approves no-fly zone in Libya Crude oil prices rose in Asian
trade on Friday, after the United Nations (UN) approved the imposition of a
no-fly zone over Libya, raising fresh fears over oil exports from the country.
Debt Problem: Who In The World Is Going To Buy The Billions Of Dollars Of Debt
The U.S. Government Is Constantly Pumping Out Now? Is the U.S.
government on the verge of a massive debt problem? For years, the U.S.
government has been able to borrow all the money that it has wanted to at
extremely low interest rates.
G-7 Sells Yen in First Joint Intervention in More Than Decade The Group of Seven
will jointly intervene in the foreign exchange market for the first time in more
than a decade after Japan’s currency soared, threatening its recovery from
the March 11 earthquake.
(3-18-11) Dow 11,858 +83 Nasdaq 2,643 +7 S&P 500 1,279 +5 [CLOSE- OIL
$102.39 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.57 (reg.
gas in LAND OF FRUITS AND NUTS $3.91 REG./ $3.93 MID-GRADE/ $4.05 PREM./
$4.13 DIESEL) / GOLD $1,418 (+24% for year 2009) / SILVER $35.23 (+47% for
year 2009) PLATINUM $1,717 (+56% for year 2009) Metal News for the Day /
DOLLAR= .70 EURO, 80 YEN, .62 POUND STERLING, ETC. (How low can you go -
LOWER)/ http://www.federalreserve.gov/releases/h15/update 10 YR NOTE
YIELD 3.26% …..… AP Business Highlights ...Yahoo Market
Update... T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies
- Domestic / International This Is a Secular Bear Market and The End
of Buy and Hold … and Hope MARKET MANIPULATION AND HOW THE
LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-
10 The bull market that never was/were beyond wall street b.s. when
measured in gold Property Values Projected to Fall 12% in 2010 Jan 31,
2010 THE COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer
(01-15-10) 11 Clear Signs Economy Sinking Economic Black Hole 1-22-10:
20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover
1-7-10 Crash is coming! ‘WORST ECONOMIC COLLAPSE EVER’ Must
Read Economic / Financial Data This Depression is just beginning
The coming depression… thecomingdepression.net The Next Wave of
Collapse is Coming Sooner than you think Sliding Back Into the Great
Depression ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS
WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!
National / World
Massive Japanese Storm Headed for U.S. West Coast Infowars | A massive storm
in the Pacific is headed directly for the U.S. and Canadian West Coast.
Infowars has some of the only Potassium Iodide in the U.S. [ Before you go
freaking out, let me just say that if you’re that concerned, read the label of
your multi-vitamin which probably contains more than sufficient quantities
of potassium iodide; mine do (I use two Rite Aid multis – inexpensive multi
and their more expensive male whole source with vitamins, minerals, herbs /
no iron) ] Infowars | Infowars has taken action and secured some of the only
remaining dose-ready potassium iodide (KI) in the country.
Nuclear plant boss breaks down crying, admits radiation levels deadly Mail Online
| Officials said rating was raised after they realized the full extent of the
radiation leaking from the plant.
When An ill Wind Blows From Afar! (Like from Japan, Iran or N. Korea) Shane
Connor | Surviving radioactive fallout & radiation contamination from Japan,
Iran or North Korea.
Reports Of “Harmless” Radiation Reaching California Are a Whitewash Paul

Joseph Watson | Bulk of radioactive particles from Fukushima blasts will not
reach west coast until Saturday to Monday.
Ron Paul: Libya Airstrikes Unconstitutional – Only Congress Can Declare War
This is black letter law, not some aspirational statement by our Founders.
Their intent was indisputably clear: Congress alone, not the Executive
Branch, has the authority and the obligation to declare war if hostilities are
to be initiated against a foreign state that has not attacked the United States.
Globalist Crimes Against Humanity Expanded Over Libya In an unsurprising
move that was all but inevitable, the UN has decided to enforce a no-fly zone
over Libya to save the globalist-backed rebellion sputtering in failure and
bordering on a “Bay of Pigs” disaster. Canadian, US, French, Arab, and UK
jets are already reported to be preparing for the operation.
MOX plutonium fuel used in Fukushima’s Unit 3 reactor two million times more
deadly than enriched uranium Largely absent from most mainstream media
reports on the Fukushima Daiichi nuclear disaster is the fact that a highly-
dangerous “mixed-oxide” (MOX) fuel in present in six percent of the fuel
rods at the plant’s Unit 3 reactor.
Obama tells Americans: Do NOT prepare for radioactive fallout, just listen to your
government In a truly incredible example of the complete disregard for the
health and safety of the American people, President Obama today told
Americans that they should NOT prepare for radiation from the possible
meltdown of the Fukushima nuclear power plant in Japan.
Nuclear Crisis in Japan Follows Decades of Faked Safety Reports, Accidents The
unfolding disaster at the Fukushima nuclear plant follows decades of
falsified safety reports, fatal accidents and underestimated earthquake risk
in Japan’s atomic power industry.
Libya, Hypocrisy and Betrayal by the United Nations: US-NATO’s New War in
North Africa of Death and Destruction The bombing of Libya will begin on or
nearly to the day, of the eighth anniversary of the beginning of the
destruction of Iraq, 19th March, in Europe.
A People Betrayed: West Launches New War for Oil in Libya And so now, another
war. Led by the United States and the religious extremists in Saudi Arabia,
the UN Security Council voted to intervene on behalf of one side in the
Libyan civil war. Having already armed and trained Moamar Gadafy’s armies
and security forces, the Western war-profiteers have now decided to do the
same for his opponents.
Saving Money? Not In This Economy – 22 Facts That Prove Middle Class Families
Are Being Savagely Crushed The 22 facts that you are about to read are all
real, although admittedly they are hard to believe. The sad truth is that
millions of middle class families in the United States today are being
savagely crushed by this economy.
“Humanitarian Wars are Good for Business”…. Speculators Applaud A war

directed against Libya would push the price of crude oil up to abysmally
high levels, potentially triggering a global inflationary spiral, which would
result in the impoverishment of large sectors of the World population.
Bloodbath in Yemen: No UN Action for the Peace Laureate’s Pal The regime in
Yemen will not face military intervention by the UN to stop its slaughter of
unarmed civilians. There will be, at most, a few stern words from the Obama
Administration urging “restraint on both sides” — even as the Peace
Laureate carries on his secret bombing campaigns and covert military
operations in Yemen.
U.S. Arming Libyan Rebels Via Egypt If all goes well for the globalists, this servile
proxy Arab conglomerate, after being marshaled to raid Libya on behalf of
the West, will then be organized and ready to turn its attention east toward
Iran at the behest of their globalist masters.
War Propaganda Begins: Media Reports Gaddafi is “Collecting Bodies” To Blame

Deaths On UN Bombing Libyan government officials say they have declared
a ceasefire. Libyan rebels say the ceasefire is a hoax. The Western military
industrial establishment says it will send fighter jets anyway.
Nuclear plant chief weeps as Japanese finally admit that radiation leak is serious
enough to kill people The boss of the company behind the devastated
Japanese nuclear reactor today broke down in tears – as his country finally
acknowledged the radiation spewing from the over-heating reactors and fuel
rods was enough to kill some citizens.
Reports Of “Harmless” Radiation Reaching California Are a Whitewash Exactly as
we predicted would happen, authorities have cited “miniscule” levels of
radiation reaching California as an excuse with which to downplay the threat
to Americans of fallout crossing the Pacific from Japan, completely ignoring
the fact that the bulk of the radiation from the two blasts at the Fukushima
power plant will not reach the west coast until Monday.
Globalists To Bomb Libya Despite Cease-Fire; US Deploys More Ships The United
States will deploy additional amphibious ships to the Mediterranean, the
military said on Friday, as part of the Obama administration’s plans for
responding to ongoing violence in Libya.
Another Illegal War Of Slaughter Couched In “Humanitarian” Doublespeak Those

who were asking what the “international community” planned to do in
response to the escalating global crisis surrounding the nuclear plant in
Fukushima now have their answer – bomb Libya. As if the world wasn’t
experiencing enough turmoil and devastation, another illegal war of
aggression has been launched in a volatile region, couched in the retching
Orwellian doublespeak of ‘no fly zones’ and ‘humanitarian’ rhetoric.
Drudgereport: US SHIPS DEPLOY; LIBYA ACTION

FRENCH, BRIT JETS SET FLY OVER
Japan govt finally admits radiation leak serious enough to kill...
Drives back crews attempting to rein in reactor...
'Very Grave'; Winds Shift...
AP: 'Minuscule fallout' reaches USA...
REUTERS: 'Very low radiation' detected on west coast...
Rads Whitewash?
Storage pools big worry...
HEAD FAKE: Libya Renews Attacks After Cease-Fire Offer...
BOMBS POWER STATION IN REBEL STRONGHOLD...
Claims 'No Bombardments' Since Cease-Fire...
US: Gaddafi still on the march...
DOJ to white males who are bullying victims: Tough luck...
Cost of Living Hits Record...
Unemployment rises in nearly all metro areas...
Obama understates deficits by $2.3 trillion...
Top big-wave surfer killed in wipeout off California...
REPORT: Pentagon Overpaid Billionaire Oilman By Up to $200 Million...
Fmr. Dean of White House Press Corps Still Talking About 'the Jews'…[Come on!
It’s true of course … quite amazingly since it’s been self-destructive and self-
defeating for presidencies and the nation generally … look at the mideast
policies, no-pros on the wall street frauds with those ‘goldman’ boys ‘sniffin’
around, etc. ]...
Helen Thomas to Playboy: Jews 'own the White House'
Helen Thomas is not sorry, nor were the comments that ended her career
accidental.
“I knew exactly what I was doing – I was going for broke,” she told Playboy in the
magazine’s April interview. “I had reached the point of no return. You finally get
fed up … I finally wanted to speak the truth.”
Thomas, of course, left her perch as the dean of the White House press corps last
year after telling a rabbi and blogger that Jews should “get the hell out of
Palestine” and “go home” to “Poland, Germany and America and everywhere
else.” Her family is Lebanese and she grew up in the Detroit area, home to one of
the country’s densest populations of Arab Americans.
She spoke to Playboy at length about the situation in Palestine, her feelings on
American support of Israel, and her take on Jews.
But her most controversial comments echoed ones she’s made before about the
influence of Jews in American life, which have contributed to her name being
stripped from journalism awards.
"[The Jews are] using their power, and they have power in every direction,” she
told Playboy. “Power over the White House, power over Congress … Everybody
is in the pocket of the Israeli lobbies, which are funded by wealthy supporters,
including those from Hollywood. Same thing with the financial markets. There's
total control … It isn't the 2 percent. It's real power when you own the White
House, when you own these other places in terms of your political persuasion. Of
course they have power. [To the interviewer] You don't deny that. You're Jewish,
aren't you?"
She also had some controversial views about memorializing the Holocaust.
"There's nothing wrong with remembering it, but why do we have to constantly
remember?" she said. "We're not at fault. I mean, if they're going to put a
Holocaust museum in every city in Germany, that's fine with me. But we didn't do
this to the Jews. Why do we have to keep paying the price and why do they keep
oppressing the Palestinians? Do the Jews ever look at themselves? Why are they
always right? Because they have been oppressed throughout history, I know.
And they have this persecution. That's true, but they shouldn't use that to
dominate."
New York Times to charge for access (Washington Post) [ They’re dreamin’.
Who’d be dumb enough to pay for regurgitated, filtered news? ] Some users
soon have to pay for Web and mobile access.
G-7 to intervene in currency markets (Washington Post) [ Well there you go …

nothing to worry about … now that the G7 is intervening … riiiiight! After all,
their track record has been surperlative in precipitating this global meltdown
(see infra). ] Major industrialized nations will combine in a rare coordinated
currency intervention to keep the Japanese yen from rising too sharply in
value in the wake of the country’s recent natural disaster.
This is the grim economic reality [ http://albertpeia.com/grimreality.htm ]. This

the beginning of a more serious correction? The events and reports this week did
provide more evidence that the stock market may be ahead of reality regarding
prospects for the economy, and therefore corporate earnings, going forward,
which should at least limit the market’s upside potential. Limited upside potential
equals more downside risk? It might be wise to lighten up some into strength that
may develop over the next few days during the ‘monthly strength period.’ BOB
PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New
Lows
Nuclear emergency could last for weeks, U.S. official warns (Washington Post) [ I
must say, and it brings me no joy to say it, but for those looking for some
silver lining in all this as the ‘glass-half-full’ perma-bulls have been
intimating as the markets rose; well, they’re just dreaming. Japan’s
economy, though better than that of defacto bankrupt america’s, was
already in the tank, particularly looking forward. Indeed, you could cut
current level stock prices in half and still be over-valued inasmuch as this is
far more serious in terms of prospective impacts than is being peddled by
the pundits. Poor g.e. … like Lucy, they got a ‘lotta splainin’ to do. ] As
Japan sprays stricken reactor with tons of water from helicopters and water
cannons, the U.S. warns of a long crisis. | Rick Maese and Rob Stein, 9:47
p.m.
unlike so many investors and citizens of our small world... Japan, Bahrain and
Fantasy? You should be on wall street! U.S. stocks rise (Washington Post) (on
b*** s*** alone) [ This is the grim economic reality [
http://albertpeia.com/grimreality.htm ]. This manipulated bubble in this
secular bear market based on b*** s*** alone and today’s short-covering /
suckers’ rally provides an especially great opportunity to sell / take profits
while you still can since there's much worse to come! Looking Like A
Good Time To Sell Into Strength – Harding ] Investors speculate
U.N. approves ‘all necessary measures,’ including no-fly zone, to protect Libyans
(Washington Post) [ The u.n. has spoken … just not to israel lately … Hamas
says Israeli fighter jets bomb facility in Gaza, killing 2 Palestinians [ War
crimes nation israel keeping america looking bad in the Mideast, when
defacto bankrupt america can least afford it. ] Washington Post - GAZA
CITY, Gaza Strip - Israeli fighter jets pummeled a Hamas security facility in
the Gaza Strip on Wednesday, killing two Palestinian civilians / freedom
fighters and wounding four, officials in the Palesinian coastal ... Two killed
in Israeli air strike on Hamas compound in Gaza Jerusalem Post
Palestinians: Three killed in Israel air strike on Gaza Ha'aretz ] The
resolution, passed 10 to 0 with 5 abstentions, opens the door to air and
naval attacks against the forces of leader Moammar Gaddafi as he vowed to
level the city of Benghazi, the last major rebel stronghold.
Neo-Libs Rejoice As UN Declares War On Libya Neo-libs everywhere are

rejoicing. Remember – war is evil unless it’s sprinkled with the magic pixie
dust of UN endorsement and “humanitarian” rhetoric, in which case the
dead bodies, the terror, and the screaming children are all worth it. The fact
that Libya is the richest oil nation on the entire African continent is a mere
coincidence. Go back to sleep – basketball is on the TV. Soon you’ll be able
to crack open a 6 pack and enjoy the air strikes like you would a Dwyane
Wade slam dunk.
VIDEO: EU Naval Forces Fight Piracy off Somali Coast [ Yeah! With all their
nation-bankrupting, self-defeating, wasteful, adventuring, warring for no
good reason in Afghanistan, etc., I have been at a loss to understand why
they are not blasting the skinnies out of the water, along with bombing the
skinny-places of refuge! ]

may develop over the next few days during the ‘monthly strength period.’ BOB
PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New
Lows
unlike so many investors and citizens of our small world. I sincerely hope and
pray that many pleasant days lie ahead for the people of Japan, Bahrain and
Oversold Market Rally: Dave's Daily ‘It was time for a good oversold short
squeeze and we got it today. Wednesday's large selloff took the McClellan
Oscillator to sub -60 readings; the VIX nearly broached the fear level of 30; and,
daily RSIs in some sectors also pushed below 30 meaning more oversold
conditions. The initial stimulus for today's rally came from FedEx which actually
reported results that missed, but gave a cautiously positive forecast. The stock
rallied 5% on the news initially. Jobless Claims also fell just matching
expectations; headline CPI was up .5% (I refuse to report the bogus "core" rate);
Industrial Production was a large miss lower (-.1% vs. +.5%); Leading Indicators
missed expectations (.8% vs 1% expected) but the Philly Fed knocked the cover
off the ball with a reading of 43.4 vs 28 expected. Little noticed by bulls was the
huge rise in prices that will surely be noted in the next PPI report. The Fed
tossed-in another $7B in POMO to grease the trading desks and "wink-wink" they
know what they're supposed to do with that cash. As to problems with Japan and
MENA, bulls just put those aside for today. Also options expiration is at hand and
can add significantly to volatility. And, what the hell, it is St. Patrick's Day after
all! So let's put our worries aside and rally. Volume was still high but about 45%
lower than Wednesday. Breadth was positive but moderately so…’
US says plant's spent fuel rods dry; Japan says no (AP) AP - Nuclear plant
operators trying to avoid complete reactor meltdowns said Thursday that they
were close to completing a new power line that might end Japan's crisis, but
several ominous signs have also emerged: a surge in radiation levels,
unexplained white smoke and spent fuel rods that U.S. officials said could be on
the verge of spewing radioactive material. Lessons from the long tail of
improbable disaster (Washington Post) [ No! I disagree with the implication of the
article! Modern life advantages? What, new fangled frauds? That was the
bottomline to the real estate debacle; that is, the ‘pretend’ was creating an
ongoing plethora of profits derived from literally worthless paper. If not for
financial incentive (from fraud), and certainty of prosecution for the fraud (to date
such has not occurred), this still extant debacle in the trillions would not have
occurred. Moreover, and this is not 20/20 hindsight, I had no idea of the
prevalence of earthquakes in Japan (but was aware of their nuclear energy
commitment) and clearly, conscious decisions for the sake of extra profits were
made regardless of risk. Some (ie., earthquake-prone) nations just have to suck it
up and make do without nuclear (and pay more for fossil fuels, etc., which would
affect margins). The BP disaster was the consequence of a known flaw, even
warned against by personnel close to the debacle (the solution possibly affecting
executive bonuses, yacht, plane, exotic vacation home, etc.). New Orleans? …
well, who’d want to live there anyway outside of the Mardi Gras celebration…just
kidding. All the attention in the world does not change the ‘facts of life’. No, not
those facts of life, but reality. ] The lesson of disasters such as the one in Japan
is that more attention must be paid to extra risks that come with all the
advantages of modern life
[video] Analyst Sees Fibonacci Retracement
[video] Market Rallies on Oil [ Yeah … riiiiight … that’s bullish … keep the
inflation comin’ … talk about inmates running the asylum! ]
Market in a Slow-Burn Mode and Starting to Wilt the Inflation Trader ‘…and now,
I’m supposed to be a nuclear engineer? Financial engineering is in some ways
similar to nuclear engineering, which is one reason we use terms in finance like
“nuclear waste” to mean a particularly toxic tranche of a deal that no one wants
to have, or refer to a particular credit as being “radioactive.” The credit crisis has
also been called a “financial meltdown.” But most of the products that Wall Street
creates don’t actually kill people (on the other hand, they also don’t get better
when you pour water on them, so perhaps the jury is still out on which is worse).
Markets reacted poorly for most of the day yesterday on the news coming out of
Japan. The Federal Reserve was forced to cancel its scheduled bond buy-back in
mid-stream when the Dow Jones newswire ran headlines saying “EU ENERGY
CHIEF: SITUATION AT JAPAN NUCLEAR PLANT OUT OF CONTOL” and “EU
ENERGY CHIEF: POSSIBLE CATASTROPHIC EVENTS IN NEXT HOURS.” Bonds
predictably shot straight up and stocks tumbled until the EU energy chief
admitted that his “analysis” had been gleaned from details in news reports. The
Fed re-initiated and complete the bond buyback, and everybody learned a lesson
not to listen to the EU Energy Chief. Ever. Again.
The U.S. stock market, however, is also in slow-burn mode and starting to wilt.
Yesterday’s 2% decline in the S&P on the highest volume of the year (1.4bln
shares or so) took the index to flat on the year. Easy come, easy go. Meanwhile,
the Nikkei rallied overnight (5.7%) and the Yen strengthened to match its all-time
strongest level, 79.80 yen to the dollar, last seen in 1995. Yes, you read that
correctly. The U.S. market is all aflutter now while the Nikkei is rallying and the
Japanese currency is actually rallying. Maybe nuclear engineering would be
easier.
Speaking of the 2008 meltdown, a reminder of it was called up yesterday when

the Wall Street Journal ran an article entitled “Banks Probed in Libor
Manipulation Case.” In 2008, there was another Journal story – and it probably
prompted this investigation, as that is the way these things go – that pointed out
that LIBOR was exceptionally low given the apparent difficulty many banks were
having funding themselves in the LIBOR market. It was clear that it was
predominantly hedge funds that were upset by the settings and stirring up
trouble; after all, the banks are lending money tied to LIBOR and most of us are
borrowing that money…so why would we get all bent out of shape because
LIBOR was being mismarked too low?
This whole issue wouldn’t even exist if the British Bankers’ Association (BBA)
hadn’t changed the way the LIBOR survey was conducted some years ago. Until
1998, LIBOR was set by a survey in which a large number of money market
dealers were asked the following question: “At what rate do you think interbank
term deposits will be offered by one prime bank to another prime bank for a
reasonable market size today at 11am?” On the basis of that question, the crisis
of 2008 wouldn’t affect the setting since it became merely hypothetical. There
were no prime banks in late 2008, but that doesn’t mean it isn’t possible to
speculate where such banks might have lent to each other. This was a smart way
to word the question because it meant that (a) no bank was forced to reveal its
own cost of funds to its competitors and (b) it abstracted from the occasional
funding difficulties that a bank or two might have in special circumstances. That
bank, during its problem, wasn’t a prime name bank so it could be ignored for the
purpose of the survey.
However, as the swaps market grew and with it, the importance of the LIBOR rate,
I suppose the BBA thought it oughtn’t be so hypothetical. So the survey
procedure was changed, and now banks are asked “At what rate could you
borrow funds, were you to do so by asking for and then accepting inter-bank
offers in a reasonable market size just prior to 11 am?” (Thanks to MM for helping
me find that.)
This is obviously a very different question. Now banks are expected to trumpet to
the world when they are having funding difficulties. Moreover, the question leads
to absurdities in the circumstances of late 2008. Complainers think that LIBOR
should have been marking higher than it was, but how are you supposed to
answer this when the real answer is “infinity. No funds are being offered to me or
to any other bank at any price”? And that was in fact the situation. Banks were
being ordered not to put out 12-month, 6-month, 3-month, and for a time even 1-
month and shorter money.
If you had offered 100% and been lifted, you would have lost your job (especially
if that bank then collapsed the next day and your unsecured LIBOR deposit went
down the hole with it). So there was literally no correct answer. Obviously, some
banks unilaterally altered the question they were answering (since they are
required to answer it, and amended to the question “…and the market was
functioning normally.” Or perhaps they merely decided to answer the question in
the original, pre-1998 spirit. Can we blame people for giving a bad answer to a
stupid question? I suppose it makes sense to look to see if there was collusion
among the twenty banks that make up the LIBOR survey, although it is a little
hard to imagine how a secret agreement could have been kept with so many
conspirators.
This just in: the housing market is still radioactive as well. Yesterday’s Housing
Starts figure printed at 479k, only 2k above the absolute low of April 2009. This is
good, in a way, since less construction means less inventory, which means
existing inventory gets worked off more quickly and more homebuyers get
shunted to the existing home market where the inventories are really ugly. But it
also means that construction is not going to be adding much to the growth
figures for a while…
The housing data was lost in the global geopolitical news, as is appropriate. But it
was harmonious with what the market wanted to do anyway. Stocks wanted to
fall, and they did. Bonds wanted to rally, and the 10y yield declined 10bps to
3.20%, the lowest yield since December and starting to make Bill Gross look
kinda bad (but seriously, Mr. Gross has many powers but the ability to predict
earthquakes, I suspect, is not among them).
Commodities were flat, with the Ags and Industrial Metals down and energy up.
Crude oil regained the $98 level. Opinions on oil vary widely, but I’m a bull.
Monetary policy, respectable global growth, damage to MENA production
environments, and a decrease in the BTU that can be output from nuclear – that
seems like a bullish mix to me.
Today’s data includes Initial Claims (Consensus: 388k from 397k), Industrial
Production/Capacity Utilization (Consensus: +0.6%/76.5%), Leading Indicators
(Consensus: +0.9%), and the Philly Fed Index (Consensus: 28.8 vs 35.9).
But by far the most important data is the CPI report. The consensus calls for
+0.4% on headline and +0.1% on core, raising the year/year headline number to
+2.0% and maintaining +1.0% on core.
I think there is risk to the upside on core inflation. Last month, the print surprised
on the upside at +0.17% m/m, which brought the y/y number to +0.95% (rounded
to +1.0% in news reports). What are the chances of another similar number, more
than 0.1% but not quite 0.2%?
I think the odds are reasonable. Recall that last month, major subindices of the
CPI constituting 83.5% of total inflation showed acceleration in the year-on-year
numbers (to review what I wrote last month, follow this link). And, as I pointed out
just 10 days ago, the recent rise in inflation swaps, especially combined with the
decline in forward energy quotes, implies that the market also expects core to
rise (updated chart below, click to enlarge). [chart]
Purple line is expected core inflation over the next 1 year implied by current
inflation swaps and forward energy futures.
As I said in that recent comment, however, the aggressive expectations that are
embedded does create the potential for disappointment. The inflation market is
far more likely to respond negatively to an as-expected print than it is likely to
respond positively to a higher-than-expected core print. We’d need a strong 0.2%,
not just a weak 0.2%, to really goose the market I think, and that seems a stretch.’
BOB PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To
New Lows Blodget ‘Investors have gotten wildly bullish of late, as the bull market
that started in early 2009 keeps driving stocks to new highs. But the pigs are
about to get slaughtered, says Bob Prechter, president of Elliott Wave
International and editor of the Elliott Wave Theorist. Prechter still thinks the new
bull market is just a cyclical "retracement" of some of the bear market losses that
we've had since the market crashed in 2008. Prechter expected this retracement
to drive stocks 50% above the market lows, but stocks have since soared 30%
higher than than he expected. So when the day of reckoning comes, Prechter
thinks, it will be even more startling. And Prechter still thinks that stocks will
eventually crash to new bear-market lows (read: below 6,800 on the DOW). What
makes Prechter think this day of reckoning may come sooner rather than later?
Sentiment indicators and other technical analysis. Investor bullishness has now
gotten so extreme, Prechter says, that it has exceeded the levels in 2008 before
the market crashed. Investors could still get even more bullish, of course, but
eventually they'll pay for this optimism. And Prechter's not just bearish on
stocks: He thinks oil, silver, and other commodities are absurdly overvalued, too.
The only thing he's bullish on is the dollar. And lest he be dismissed as a perma-
bear, Bob Prechter is quick to add that he hopes there will come a day when he
can come on the show and tell everyone that stocks are finally so crushed and
hated that it's a historic opportunity to buy them. When will that be? Stay
tuned...’ The Case for a Bear Market for Stocks Suttmeier ‘In making a bearish call
on the U.S. stock market, I base it on both fundamental and technical factors. The
fundamentals show that stocks are overvalued and we have had three ValuEngine
Valuation Warnings so far this year. The January warning was ignored by the
market but so far stocks peaked with the warning issued on February 18 and re-
iterated on March 3. During this period we have seen many days where all 16
sectors have been overvalued, with eight to 11 by double-digit percentages.
Today 63.8% of all stocks are overvalued, and all 16 sectors are overvalued, 11 by
double-digit percentages…’

Salary...$33,000 to $77,000. Maybe our elected officials should make an average
salary too...It's a time of sacrifice after all...Pass along, post on your own page if
you agree…’
World's richest are almost $1 trillion richer [ And the other 95% trillions poorer. ]
Utilities Are Warning the Correction Is Here Gayed ‘The utilities sector (IDU) may
not be the most fascinating sector of the market to watch, but in many ways can
be one of the most important. Legendary technical analyst Edson Gould, known
for being one of the best market timers of all time, believed that the performance
of utilities was an early indicator for broad market movements. He noted often
times that when utilities performed exceptionally well, within a short period of
time, markets would experience a period of volatility and declining prices…’
Is the Bear Market Back? [ The bear market never left … This has been a
manipulated bubble-bull cycle in this secular bear market based on b*** s***
alone and hence, is an especially great opportunity to sell / take profits while you
can since there's much worse to come! ] Michaud ‘Financial Markets at Critical
Junctures
Michigan passes ‘financial martial law’ bill Politico | Michigan legislators have
approved a bill authorizing state-appointed emergency financial managers to
break union contracts.
Another Ron Paul Critic at the Fed: ‘I Know Some Powerful People’ Robert
Wenzel | Paper money as issued by the Fed can be, I guess, considered a liability.
Currency Meltdown Coming USA Watchdog | A ball of debt is growing. It is on

course to swamp the system.
G-7 Sells Yen in First Joint Intervention in More Than Decade The Group of Seven
will jointly intervene in the foreign exchange market for the first time in more
than a decade after Japan’s currency soared, threatening its recovery from
the March 11 earthquake.
Japanese Politician Suggests Closing Financial Markets For A Week Yesterday’s

speculation that a bank holiday was suggested and may be imposed in
Japan due to unprecedented market swings and tens of trillions in support
from the BOJ has just been confirmed.
Tokyo Exodus Part 3: ATM Shutdowns, Power Outages Put Citizens On Edge,
Gold Hoarded In Evacuation Preparations The resilience of those living in
the Japanese capital has been beyond admirable. After experiencing a
record earthquake, hundreds of aftershocks, a historic tsunami, radioactive
catastrophy 160 miles away and constant fears a northeasterly wind can
bring in radioactive snow, and now unending rolling blackouts and ATM
service interruptions, one has yet to hear about any mass exodus let alone
coordinated complaining.
How the NY Fed Gifted An Extra $15.7 Million To Wall Street Yesterday As part of
the Federal Reserve’s ongoing QE2 program, nearly each day, the NY Fed
purchases US Treasury securities from a select group of primary dealers in
what is called a permanent open market operation (POMO).
National / World
Infowars has some of the only Potassium Iodide in the U.S. Infowars | Infowars
has taken action and secured some of the only remaining dose-ready
potassium iodide (KI) in the country.
Alex Jones: Pentagon preparing for Martial Law RT | Is the system itself
collapsing?
Neo-Libs Rejoice As UN Declares War On Libya Paul Joseph Watson | War is evil
unless it’s sprinkled with the magic pixie dust of UN endorsement and
“humanitarian” rhetoric.
U.N. Security Council Passes Libya No-fly Resolution Financial Times | Diplomats
vote 10-0 for military action, with five nations, including Russia, China and
Germany, abstaining.
Preview: Charlotte Iserbyt – The Miseducation of America PrisonPlanet.tv | Part

one of exclusive interview, coming in April 2011.
Last remaining potassium iodide available at Infowars.com Infowars has taken

action and secured some of the only remaining dose-ready potassium iodide
(KI) in the country.
Neo-Libs Rejoice As UN Declares War On Libya Neo-libs everywhere are

rejoicing. Remember – war is evil unless it’s sprinkled with the magic pixie
dust of UN endorsement and “humanitarian” rhetoric, in which case the
dead bodies, the terror, and the screaming children are all worth it. The fact
that Libya is the richest oil nation on the entire African continent is a mere
coincidence. Go back to sleep – basketball is on the TV. Soon you’ll be able
to crack open a 6 pack and enjoy the air strikes like you would a Dwyane
Wade slam dunk.
NY Times Maps Underplaying Extent Of Radiation The radiation plume illustrated

on the map is from the original release over last weekend. A far larger and
more deadly plume of radiation from the explosions and fires earlier this
week will soon follow.
Swedish Government: Radiation To Cover Entire Northern Hemisphere

Suggesting that levels of radiation leaks from the stricken Fukushima plant
are being grossly underreported by Japanese authorities, a Swedish
government agency told Reuters today that not only will the radiation reach
North America, but it will subsequently cover the entire northern
hemisphere.
Pentagon’s Actions Suggest Nuclear Disaster Is Much Worse Than Feared The
Pentagon’s actions regarding the nuclear crisis in Japan reveal that the true
scale of the disaster is being withheld from the public.
Tokyo Passengers Trigger U.S. Airport Detectors, N.Y. Post Says Radiation
detectors at Dallas-Fort Worth and Chicago O’Hare airports were triggered
when passengers from flights that started in Tokyo passed through
customs, the New York Post reported.
Harmless? Chernobyl Radiation Killed Nearly One Million People “No citizen of
any country can be assured that he or she can be protected from radioactive
contamination. One nuclear reactor can pollute half the globe,” they said.
“Chernobyl fallout covers the entire Northern Hemisphere.”
MSNBC LIES About Three Mile Island Health Effects They never mentioned
studies by the Radiation and Public Health Project, including a “new
analysis of health statistics in the region found that death rates for infants,
children, and the elderly soared in the first two years after the Three Mile
Island accident in Dauphin and surrounding counties.”
Western Response to Japan: The real crime against humanity The Anglo-
American multi-trillion dollar global military machine has been defended ad
nauseum as essential to protecting free humanity and its progress into a
promising future.
Newly Released Images Show Devastated Nuclear Reactors The Tokyo Electric
Power Company has released new images that show the devastated nuclear
reactors at the stricken Fukushima plant, as authorities confirm that a
second reactor containment vessel has been damaged, leading to yet more
deadly radiation being released into the atmosphere.
French claim Japan is hiding full scale of nuclear disaster The French
government accused the Japanese of losing control of the situation and
hiding the full scale of the disaster.
27 Signs That The Nuclear Crisis In Japan Is Much Worse Than Either The
Mainstream Media Or The Japanese Government Have Been Telling Us How
much of a threat is the nuclear crisis in Japan? That question is on the
minds of millions of people around the globe tonight. The Economic
Collapse March 16, 2011
How much of a threat is the nuclear crisis in Japan? That question is on the
minds of millions of people around the globe tonight. Unfortunately, the
Japanese government and the mainstream media have both been doing their
best to downplay this crisis. Even though there have been massive
explosions at the Fukushima Dai-ichi nuclear facility, authorities in Japan
have still been very stingy with information and they keep insisting that the
situation is under control. But the situation is not under control. In fact, it
just seems to get worse with each passing day. Radiation levels are now
incredibly high at the Fukushima Dai-ichi complex and the radiation cloud is
starting to spread. Radiation levels in Tokyo are already 10 times above
normal levels, and there are reports in the international media that some
people have begun to flee the city. It is imperative that the Japanese
government tell the truth about what is going on because this could
potentially affect the health of millions of people. There are over 12 million
people in the city of Tokyo alone. If this nuclear crisis continues to get
worse it could potentially end up killing more Japanese than the tsunami
just did.
Yes, things really are that serious.
We are not just talking about a repeat of Chernobyl.
We are possibly talking about “many Chernobyls”.
It is somewhat understandable that the Japanese government and the

mainstream media do not want to panic the public, but the reality is that
people need the truth about what is going on.
Unfortunately, it is not likely that the Japanese government or the mainstream
media are going to “change their stripes” overnight, so in order to try to get
an idea of what is really going on we need to look at the clues.
Sometimes it is much more important to watch what people are doing rather than
what they are saying.
For example, a significant number of foreign governments are now evacuating

personnel from Tokyo.
Why would they be evacuating if there was no threat?
Posted below are 27 signs that the nuclear crisis in Japan is much worse than
either the mainstream media or the Japanese government have been telling
us. When you take all of these clues and you put them together it really
does paint a frightening picture….
#1 Japanese Prime Minister Naoto Kan is urging all people living within 30
kilometers of the Fukushima Dai-ichi nuclear facility to stay indoors.
#2 Andre-Claude Lacoste, the head of France’s Nuclear Safety Authority, says

that the containment vessel surrounding the No. 2 reactor at Japan’s
Fukushima Dai-ichi nuclear complex is “no longer sealed“.
#3 Radiation levels in Tokyo are already 10 times above normal levels.
#4 Reuters is reporting that some residents of Tokyo are already starting to flee
the city.
#5 Radiation levels in one city north of Tokyo, Utsunomiya, were recently

reported to be 33 times above normal levels.
#6 Radiation levels in the city of Saitama have been reported to be 40 timesabove

normal levels.
#7 According to Japanese Prime Minister Naoto Kan, the “possibility of further

radioactive leakage is heightening.”
#8 The Japanese government is admitting that radiation levels near the

Fukushima Dai-ichi complex are very harmful to human health.
#9 According to the World Nuclear Association, exposure to over 100 millisieverts

of radiation a year can lead to cancer. At this point the level of radiation
being measured right outside the number 4 reactor at the Fukushima Dai-
ichi complex is 400 millisieverts per hour.
#10 A U.S. Navy crew that was assisting in relief efforts was exposed to a month’s
worth of nuclear radiation in just a single hour.
#11 According to the U.S. Navy, low levels of radiation have been detectedat their
bases in Yokosuka and Atsugi.
#12 The USS Ronald Reagan recently detected significant levels of radiation 100
miles off the Japanese coast.
#13 The operator of the Fukushima Dai-ichi complex has pulled out 750 of the 800
workers that were working at the facility.
#14 The French embassy in Tokyo is advising French citizens to leave the city.
#15 The German embassy in Tokyo is advising all German citizens to leave the
country entirely.
#16 German technology company SAP is evacuating their offices in Tokyo.
#17 Austria has announced that it is moving its embassy from Tokyo to Osaka
due to fears about the radiation.
#18 Finland is urging all of their citizens to leave Tokyo.
#19 The Czech military is sending planes to Japan specifically to evacuate the
Czech Philharmonic Orchestra.
#20 Air China is canceling many flights to Tokyo.
#21 The Chinese Embassy has announced that it will be evacuating all Chinese
citizens from the Miyagi, Fukushima, Ibaraki and Iwate prefectures.
#22 Russia is making preparations to evacuate civilians and military unitsfrom

the Kuril Islands.
#23 Physicist Frank von Hippel recently told the New York Times the following
about this disaster: “It’s way past Three Mile Island already”.
#24 The president of France’s nuclear safety authority says that this crisis is now
almost as bad as Chernobyl was….
“It’s clear we are at Level 6, that’s to say we’re at a level in between what
happened at Three Mile Island and Chernobyl.”
#25 There have been reports of extremely high radiation at another nuclear
facility in Japan. It has been reported that at the Onagawa nuclear plant
radiation that is 700 times the normal level was detected at one point.
#26 One anonymous senior nuclear industry executive told The Times Of India
that Japanese power industry managers are “basically in a full-scale panic”
and that “they don’t know what to do”.
#27 It is also being reported that there were over 600,000 spent fuel rodsstored at
the Fukushima Dai-ichi complex. Most of these rods were apparently stored
near the top of the 6 reactor buildings. There have already been major
explosions at three of those buildings. It is now feared that there is now
nothing to prevent many of these spent fuel rods from releasing radiation
into the atmosphere. That is really, really bad news.
So is there a threat that nuclear radiation from Japan could reach the United
States?
Well, actually everyone agrees that radiation could reach the United States. The
controversy is whether or not it will be enough to be harmful to human
health.
The Nuclear Regulatory Commission is admitting that it is “quite possible” that

nuclear fallout from this disaster could reach the United States. In fact,
Nuclear Regulatory Commission spokesman David McIntyre says that there
could already be radiation from Japan over America….
Right now it’s quite possible that there could be some radiation floating over
the United States.
But most government officials in the U.S. are insisting that there is “no threat” to
the health of American citizens from this crisis at this point.
So how would nuclear radiation from Japan get transported to the United States?
Well, if radiation released by a damaged nuclear reactor got up into the jet
stream, the first major land mass that it would encounter would be North
America. In fact, the jet stream commonly takes air from over Japan directly
over the west coast of the United States. The following video demonstrates
this fact beautifully….
So is there any reason for those of us living in the United States to be

concerned?
According to the Japanese government, the U.S. government and the mainstream
media there is not.
But do you believe them?
The truth is that they seem much more concerned with keeping the public calm
rather than telling the public the truth.
Radiation levels are increasing all over northern and central Japan. People are
starting to leave Tokyo and other major cities in the region. Foreign
governments are evacuating personnel. Fires continue to erupt at the
Fukushima Dai-ichi complex. The authorities in Japan seem to have no idea
how to solve this crisis.
If even one of those damaged nuclear reactors fully melts down it is going to be a
complete and total nightmare. If you live in an area that could potentially be
affected by nuclear radiation from Japan you might want to start figuring out
how you and your family are going to handle this crisis’
Hamas says Israeli fighter jets bomb facility in Gaza, killing 2 Palestinians [ War
crimes nation israel keeping america looking bad in the Mideast, when
defacto bankrupt america can least afford it. ] Washington Post - GAZA
CITY, Gaza Strip - Israeli fighter jets pummeled a Hamas security facility in
the Gaza Strip on Wednesday, killing two Palestinian civilians / freedom
fighters and wounding four, officials in the Palesinian coastal ... Two killed
in Israeli air strike on Hamas compound in Gaza Jerusalem Post
Palestinians: Three killed in Israel air strike on Gaza Ha'aretz
VIDEO: EU Naval Forces Fight Piracy off Somali Coast [ Yeah! With all their
nation-bankrupting, self-defeating, wasteful, adventuring, warring for no
good reason in Afghanistan, etc., I have been at a loss to understand why
they are not blasting the skinnies out of the water, along with bombing the
skinny-places of refuge! ]
Drudgereport: UN AUTHORIZES MILITARY STRIKES ON LIBYA...

HILLARY'S WAR
Strikes Could Come Within Hours...
'ALL NECESSARY MEASURES'...
THE BOOT: Sorties from Italy...
Canada on the march...
GADDAFI: 'WE ARE COMING TONIGHT'...
'THERE WON'T BE ANY MERCY'...
Japan's increasingly frantic efforts at nuke plant...
'Like suicide fighters in a war'...
Mayor of town near nuke: 'They're leaving us to die'...
DESPAIR TURNING TO ANGER...
'We're Very Close Now to the Point of No Return'...
U.S. Officials Alarmed By Japanese Handling of Crisis...
Life Among the Ruins...
AP... BBC... KYODO... NHK... REUTERS...
US, JAPAN SPLIT ON NUKE DANGER
Debt Jumps $72B Same Day House Votes to Cut Spending $6B...
Tiny tim geithner to Congress: More Debt, Please...
OBAMA SETS WEEKEND IN RIO!
Family will take in the sights...
SPRING BREAK: Obama the invisible; Anti-leadership amid world crises …
[ wobama’s presidency is over, he should be impeached / removed from
office ! ] ...
VIDEO: T_rump Says He'll Spend $600 Million on Prez Run… dreamin’,
schemin’, to no avail … even this mobster’s bribes couldn’t put him over the
top … he’s a joke, a lightweight, and a loser! And, from the nation’s
foremost drains / sinkholes, corrupt / mob infested new york / new jersey (he
and his corrupt sister judge maryanne should be in jail – Jerry Springer
would make a more serious candidate, and that also would be a joke; but at
least Springer pioneered that mindless entertainment genre and is
intelligent.)...
RACE TO SAVE CORE...
(Washington Post) [ Comments COMMENTS ARE CLOSED WHILE WE UPGRADE

OUR SYSTEMS ]
Dana Milbank In state legislatures, Tea Partyers take democracy to absurd

lengths. (Washington Post) [ I love to pick on Mr. Milbank … we’re so …
‘opposite’. ‘Louis Brandeis’? As they say on Saturday Night Live, ‘What’s up with
that, what’s up with that’. I concede he was a brilliant jurist (my personal favorite
was Holmes, especially Holmes’ discussion of the law as providing foreseeability
of consequences to actions, ie., threatening to do what one legally can do which
enables the other party to avoid such consequences, etc.. – Boy, did he get that
wrong with pervasively corrupt, defacto bankrupt ‘modern america’ where
meaningfully lawlessness reigns supreme (see, ie., RICO case [
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperj
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] ). Yet
Brandeis’ powers of foresight were sorely lacking [ Upon completion of his first
semester exams he was packing his bags to leave (I think harvard) certain he had
failed out. In fact, he ‘aced’ them all. (I can empathize with that feeling which
unlike anytime after a test I felt after the 3 day bar exam. I felt drained and
‘certain’ I had failed. In fact, I scored so high on the multi-state that my ‘jersey
part’ of the exam became irrelevant (how prescient a circumstance). ]
Laboratory?... I don’t think so … unless you’re talking of that of Dr. Frankenstein
himself.
2chambers: McConnell, McCain draw the line (Washington Post) [ mccain

recently said that if he had been elected president, defacto bankrupt america
would be fighting 3 wars. Talk about a race to the ‘bottom’. Earth to mccain …
that’s why you weren’t elected (mccain’s a loser, from wrestler, to downed pilot,
to songbird pow, to keating 5 man who should have gone to jail, etc.; although
wobama the b (for b*** s***), despite promises to the contrary, has been no better;
viz., maybe 2 and a half wars despite the nation’s defacto bankruptcy. Never trust
a *********** Go ahead, fill it in … whatever comes to mind … don’t feel guilty, his
presidency’s done! Obama Laments He’s Not President Of Communist China
[ Time to relieve wobama the b’ (for b*** s***) of his burden by impeaching /
removing him from office without delay! He may not have been the first black
president (Clinton is generally considered the first black president by blacks and
whites alike, a moniker Clinton accepted and wore proudly – that 18% vote), but
he is certainly the last! Drudgereport: City Lowers Police Testing Standards
Because Not Enough Blacks Passed... Under pressure from Obama
administration... Illinois mayor says Obama still owes city $55,457... Obama to
party with Washington reporters... Golf in the afternoon... ] Weekly Standard |
“Mr. Obama has told people that it would be so much easier to be the president of
China.” Dave’s Daily: ‘…Where is the president? This has been a universal
question raised by both right and left. Obama appeared on ESPN to go over his
NCAA basketball bracket, is hosting a $30K a plate fund raiser in Harlem and
heads this weekend to Rio. The president's disconnect is beyond belief and his
ears have turned to tin…’ Obama Plays While Japan Begs for Help [ ‘Wobama
the b’ (for b*** s***) is a typical ‘***************’ … Go ahead, fill it in … whatever
comes to mind … don’t feel guilty, he’s already a failed president who should be
impeached / removed from office without delay and a total incompetent and fraud.
] Watson/Jones | With the world on fire, the President goes AWOL again … ’
Financialization and Our Increasingly Unstable Economy Roche ‘I finally got
around to seeing the movie Inside Job, the story behind the credit crisis and
winner of the Academy Award for best documentary. It’s very good and I highly
recommend it to anyone who hasn’t seen it. It will certainly infuriate you. The
movie doesn’t place nearly enough blame on homeowners, but all in all it does an
excellent job of showing how Wall Street and government have become overrun
by deregulation and sheer greed. A combination of flawed economic theory and
greed have combined to create the beast that we now call a “functioning”
economy. The worst part of it all is that President Obama, who vowed change,
has done almost nothing to fix any of it and in fact continues most of the policies
that helped get us here in the first place. ]
US says plant's spent fuel rods dry; Japan says no (AP) AP - Nuclear plant
operators trying to avoid complete reactor meltdowns said Thursday that they
were close to completing a new power line that might end Japan's crisis, but
several ominous signs have also emerged: a surge in radiation levels,
unexplained white smoke and spent fuel rods that U.S. officials said could be on
the verge of spewing radioactive material. Lessons from the long tail of
improbable disaster (Washington Post) [ No! I disagree with the implication of the
article! Modern life advantages? What, new fangled frauds? That was the
bottomline to the real estate debacle; that is, the ‘pretend’ was creating an
ongoing plethora of profits derived from literally worthless paper. If not for
financial incentive (from fraud), and certainty of prosecution for the fraud (to date
such has not occurred), this still extant debacle in the trillions would not have
occurred. Moreover, and this is not 20/20 hindsight, I had no idea of the
prevalence of earthquakes in Japan (but was aware of their nuclear energy
commitment) and clearly, conscious decisions for the sake of extra profits were
made regardless of risk. Some (ie., earthquake-prone) nations just have to suck it
up and make do without nuclear (and pay more for fossil fuels, etc., which would
affect margins). The BP disaster was the consequence of a known flaw, even
warned against by personnel close to the debacle (the solution possibly affecting
executive bonuses, yacht, plane, exotic vacation home, etc.). New Orleans? …
well, who’d want to live there anyway outside of the Mardi Gras celebration…just
kidding. All the attention in the world does not change the ‘facts of life’. No, not
those facts of life, but reality. ] The lesson of disasters such as the one in Japan
is that more attention must be paid to extra risks that come with all the
A Tragedy of Epic Proportions: Dave's Daily ‘No Mr. Wise Guy today. The world is
facing two crises in Japan and MENA. The nuclear issue in Japan appears out of
control. At the same time, this tragedy is masking what's going in MENA as
Gadhafi takes control and in Bahrain where the weird Sunni/Shiite battles rage.
With the latter, it's like a primitive religious war the west experienced centuries
ago (save Ireland) with Catholics fighting Protestants. Where is the president?
This has been a universal question raised by both right and left. Obama appeared
on ESPN to go over his NCAA basketball bracket, is hosting a $30K a plate fund
raiser in Harlem and heads this weekend to Rio. The president's disconnect is
beyond belief and his ears have turned to tin. Hillary Clinton meanwhile has
announced she won't serve a second term as Secretary of State should Obama be
reelected. Perhaps she'll serve as Vice-President to beef-up Obama's reelection
chances; but, she hasn't distinguished herself in foreign affairs lately. Last night
the BOJ injected many trillions of yen helping markets rebound. With rapidly
changing "current" news this may not occur tonight. Bulls hope for
reconstruction that will help U.S. industries within materials and manufacturing
sectors providing the stuff they need to rebuild. But, that's a longer term positive
for U.S. markets. For now, we need to know how this situation will play out from a
humanitarian and safety view. The yen has hit fresh all-time high with repatriation
paramount. Bonds are still climbing while crude oil rose and precious metals
were up a touch. Other commodities were mixed…’
U.S. home construction drops sharply (Washington Post) [Well, there you go …
just like ‘no-recession b.s. bernanke’ said: green shoots … comin’ up
roses! ] The level of home construction plummeted in February from a
month earlier to its lowest level since April 2009.
Top 3 Reasons Markets Continued to Get Hammered Wall Street Cheat Sheet ‘On
Wednesday March 16, 2011, Markets closed down on Wall Street: DJI -2.04%
SP500 -1.95% Nasdaq -1.89% Gold +0.24 % Oil +1.46% .Japan ( NYSE:EWJ )
continues to spook the world and Saudi Arabia has an escalating issue with
Bahrain. Moody’s ( NYSE:MCO ) also downgraded Portugal’s credit rating again
and PIIGS like Spain ( NYSE:EWP ) got slammed as austerity is becoming the new
normal in Europe.
Today’s markets dropped because:
1) Japan ( NYSE:EWJ ) is about as scary a situation as possible. Fukushima is the

center of the world at this point, and reports on Japan’s wire indicate problems
are not contained at the nuclear power plant. General Electric ( NYSE:GE ) has
been dumped on fears of legal liability for the design and construction of the
facility at issue, and you better believe the Japanese government will look for a
scapegoat (and deep pockets) once the situation stabilizes and the blame game
begins. The next BP ( NYSE:BP )? Possibly. But there is still hope for a
successful rebuild .
2) US producer prices are heating up and housing starts are drastically slowing
down. Ironically, the best thing that could happen to the housing market is a
slowdown in adding new supply. But don’t tell that to Homebuilders ( NYSE:XHB )
who got slammed today . And the last thing producers need is higher input costs
as the economy remains as fragile as a Hollywood ego at the Oscars . Hey, let’s
all focus on the NCAA Men’s Basketball Tournament and everything will seem
fine … for a few days.
3) Apple ( NASDAQ:AAPL ) had its tiara dented. Ready for a complete shocker?
The iPad2 is sold out, yet some Excel jockey over at JMP Securities (who??)
downgraded Apple . On a more important note, tablet computing rival Motorola
( NYSE:MMI ) announced the new Xoom WiFi will compete at Apple’s price point
and run on Google’s ( NASDAQ:GOOG ) Honeycomb OS. All this added up to a
staggering 4.4% one day drop for Wall Street’s darling.
Now that you’re in the know, good luck using logic or reason to predict
tomorrow’s market activity.’
A Snapshot of Global PE Ratios and Dividend Yields Horowitz ‘Below, presented

without comment, an interesting view of some of the major world markets and
their P/E or "cheapness" ratios. Spain's IBEX checks in with the lowest P/E ratio
and highest dividend ratio on a relative basis, while the two countries with the
lowest dividend yield are Japan's Nikkei 225 and Mexico's IPC Index. [chart] ‘
Stock Market Decline Develops Exactly as Expected McCurdy‘The S&P 500

index has declined nearly 5% during the last five sessions, erasing all of the
previous gains for the year.
[chart]
Click to enlarge graphic
Of course, mainstream financial media have attributed much of the recent

weakness to the earthquake and subsequent tsunami in Japan. But market
behavior was telling us to expect a sharp decline long before this natural disaster
occurred.
As we often note, the stock market is a discounting mechanism that sees several
months into the future. It represents the cumulative judgment of all market
participants, reflecting the best fundamental information available along with
investor and trader sentiment. Those who do not understand how the market
functions attempt to explain its behavior via the daily news flow, attributing up
days to positive data or developments and down days to negative information.
However, doing so misses the big picture and ignores basic market dynamics.
Market behavior on any given day only has meaning when viewed in its proper
context.
Prices are influenced by trends and cycles across multiple time frames that range
from decades to days. Secular trends drive market movements for 10 to 20 years
at a time, while cyclical component trends dominate price swings for 2 to 5 years.
You also have intermediate-term weekly moves and short-term daily trends and
cycles. Most importantly, each time frame exhibits relatively independent
behavior. Sometimes all trends are aligned across all time frames, but most of the
time they are not, so they must each be analyzed and properly characterized in
order to develop a comprehensive, accurate understanding of market behavior.
Tragedies such as the Japanese natural disaster do influence market behavior,

but their primary functions are as catalysts, setting in motion processes that were
already likely. In the case of the current market environment, the process in
question was the violent correction of an extremely over-extended rally from
September. From early September until late February, the S&P 500 index
advanced 28% without experiencing a meaningful retracement. Such extreme
moves are always followed by volatile counter-trends, and by early February
market behavior was warning us that the inevitable violent correction was
becoming more likely. Broad market internals began to exhibit weakness as
treasury yields continued to rise and market sentiment held at irrationally bullish
extremes. When the overextended rally finally broke below uptrend support
during the final week in February, market internals such as volume summation
followed suit, strongly suggesting that the correction was about to begin.
Click to enlarge
[chart]
The Japanese disaster then acted as a catalyst that set the process in motion.
The sharp rally from September to February is representative of the current
environment and reflects heightened market volatility that has persisted since the
crash in 2008.
Click to enlarge
[chart]
Again, extreme moves such as these are always followed by violent
countermoves, and careful study of market behavior will indicate when the next
reversal is becoming likely. For example, in February 2009, chart analysis
suggested that historically oversold conditions would soon lead to the best
trading opportunity in a generation, and the catalyst that set the massive rally in
motion was a surprise positive earnings announcement from Citigroup on March
10.
Click to enlarge
[chart]
As expected, the subsequent oversold reaction was equally violent in character,
resulting in the development of an extremely overbought condition in April 2010.
Once again, market behavior warned us when the inevitable correction was
imminent, and the European debt crisis in May 2010 acted as the catalyst that set
the decline in motion.
Click to enlarge
[chart]
Returning to the present, now that the violent correction we have been awaiting is
in progress, market behavior during the next several weeks should provide a
reliable assessment of cyclical bull market health and produce clarity with
respect to long-term direction. The decline from early March has caused the
current short-term cycle to transition to a bearish bias.
Click to enlarge
[chart]
The next Short-Term Cycle Low (STCL) should occur sometime during the next
two weeks, and the character of the subsequent reaction will likely tell us if the
cyclical bull market is simply taking a breather or preparing to terminate.’
Don't Ignore Weak Housing Market and Bank Stress Issues Suttmeier ‘Japan’s
nuclear nightmare will stall global growth, which begins with housing and banking in the
United States. With the world’s third-largest economy slowed to a crawl, the impact will
be felt around the globe. Here in the United States, I worry about the housing market
and the banking system where problems have been kicked down the road since 2008.
The Fed says that the housing market remains depressed! The scars of “The Great
Credit Crunch” could be opened as the economic impact from Japan slows business
activities here in the United States.
The NAHB Housing Market Index Rose by a Point to 17 -- The National Association
of Home Builders Housing Market Index has been 20 or lower since September 2007
after being as high as 72 in June 2005, when I predicted that housing stocks were
extremely overvalued and overbought and long overdue for a bear market. [chart]
In March the HMI inched up to 17 from 16 where 50 is the neutral zone so home
builders have been in a depressed mood since May 2006 when this index first dropped
below 50. Today home builders face the same obstacles talked about in the last several
reports: competition from short sales and foreclosures, potential new home buyers’
inability to sell existing homes, home appraisals falling below the costs of new
construction, and tough lending standards for both home builders and home buyers.
Economies on Main Street, USA depend upon the construction industry, and the
housing market is a major component of this. Community banks are reluctant to lend to
home builders, as they still have $321.6 billion in Construction & Development (C&D)
loans on the books, where collections are problematic.
The NAHB Tells Congress that the Housing Market Needs Access to Credit
The National Association of Home Builders tried to give a positive spin on the housing
market, anticipating an improving job market, but hedge that with the fact that builders
cannot get construction credit from community banks. C&D loans declined 9.2% or
$32.5 billion sequentially in the fourth quarter and down 28.7% year-over-year. This is a
slight acceleration of this component of Commercial Real Estate loans, which is a
natural occurrence as the total is down to $321.6 billion. C&D are down $307.4 billion
since the end of 2007, or 48.9%. Back between the end of 1988 and the end of 1992
this category of Commercial Real Estate Loans declined 54.7%, and “The Great Credit
Crunch” we are in today will likely exceed that percentage.
The NAHB is worried that this contraction in construction lending will force more small
builders out of business resulting in more job losses industry-wide and across the
country. I have been saying that construction jobs are the most significant catalyst for
job growth on Main Street, USA. Keep in mind that housing represents about 15% of
our nation’s GDP. The NAHB told Congress that residential construction jobs declined
by 1.4 million since April 2006.
The NAHB urged Congress to have a solution to the Fannie and Freddie dilemma as an
affordable source of credit for housing, and to preserve the mortgage interest tax
deduction, and the capital gain exclusion. Without these protections home prices are
likely to continue to decline. The NAHB s worried about raising the down payment to
20%, but I agree with that restriction.
The NAHB is way too optimistic forecasting a modest gain in new home sales of 8% to
347,000 units in 2011 with 516,000 units in 2012.
Bank Failure Friday -- Two private banks were closed by the FDIC last Friday, and one
had an extreme overexposure to Commercial Real Estate loans.
• 25 banks failed in 2008

• 140 banks failed in 2009 with a peak of 50 in the third quarter
• 25 banks have failed year to date in 2011
• 347 banks have failed since the end of 2007
• I still predict 500 to 800 bank failures in total by the end of 2012 into 2013.
The Number of Underwater Mortgages Rose at the End of 2010 -- According to

CoreLogic approximately 11.1 million households or 23.1% of all mortgages were
underwater in the fourth quarter of 2010. Another 2.4 million have only 5% of less
equity. Underwater mortgages had declined in the prior three quarters because more
homes came off the market because of foreclosures. The total negative equity in the
mortgage market rose to $751 billion at the end of 2010 up from $744 in the third
quarter. The number-one cause of underwater mortgages is lower home values. Home
prices hit there lowest point of the crisis in 11 of 20 cities tracked by Case-Shiller in
December.
Foreclosure Related Notices Decline, but That's Misleading -- Foreclosure filings fell
to a 36-month low in February because lenders delayed activities against homeowners
due to heightened scrutiny over the way banks are handling home repossessions.
Information from RealtyTrac shows foreclosures down 14% in February to 255,101
homes, down 27% year over year.
Lenders repossessed 16% fewer homes in February, down 41% year over year to
64,643 units. Once the procedures are streamlined the pace will pickup as homeowners
in default stay longer living in their homes. Meanwhile the backlog of potential
foreclosure action and repossessions will grow.
The delay of foreclosure actions will likely delay a housing recovery until 2014 into
2015. Meanwhile home prices should continue to slump as around 5 million
homeowners are at least two months behind on their mortgage payments.
Quite often an unexpected event from abroad will divert attention away from key market
factors, which can expose old wounds!
Fed Policy Statement Implies That the US Economy Isn't Out of the Woods
The Federal Reserve says that the economic recovery is on firmer ground with an
overall gradual improvement in the labor market. The key to the fact that Main Street
economy is not out of the woods? Investment in nonresidential structures remains weak
and the housing market continues to be depressed.
The Fed recognizes that commodity prices are putting upward pressure on inflation, but
they say that it's temporary. They recognize the sharp run-up in energy costs caused by
supply concerns, but have blinders on saying that longer-term inflation expectations is
stable with underlying inflation still subdued. This theory will be put to a test with PPI
released Wednesday and CPI on Thursday. The FOMC still believes that Americans do
not need to eat and buy gasoline.
The Fed will continue to expand their balance sheet via the $600 billion QE2
(quantitative easing), which continues through June and they will continue to buy
additional US Treasuries to replace maturing mortgage-backed securities. In addition
they are continuing to keep the federal funds rate at zero to 0.25% for an extended
period which began December 16, 2008.
10-Year Note -- (3.323) This yield declined to 3.203 on a continued flight to quality. The
200-day simple moving average lines up with my monthly risky level at 3.016 and 3.002.
With the rebound in Japanese stocks overnight this yield is up to 3.351 this morning.
[chart]
Comex Gold -- ($1396.9) The 50-day simple moving average was tested at Tuesday’s
low at $1380.2. My annual value level is $1356.5 with my weekly pivot at $1404.1, and
daily, monthly and quarterly pivots at $1420.1, $1437.7 and $1441.7, and semiannual
risky level at $1452.6. [chart]
Nymex Crude Oil -- ($97.50) Tested $96.71 on Tuesday versus my monthly value level
at $96.43. My annual pivots at $99.91 and $101.92 have been strong magnets. My
monthly value level is $96.43 with daily, semiannual and quarterly risky levels at
$102.18, $107.14 and $110.87. [chart]
The Euro -- (1.3991) My quarterly value level is 1.3227 with a daily pivot at 1.3913, and
weekly, semiannual and monthly risky levels at 1.4089, 1.4624 and 1.4637. [chart]
All daily charts for the major equity averages are negative -- trading below 50-day
simple moving averages with declining daily momentum (12x3x3 daily slow stochastic).
There are no oversold measures as yet. Tuesday’s low was 11,696 and Monday’s low
was 11,897.[chart]
The weekly chart for the Dow Industrial Average remains overbought, but will join the
other major averages with momentum (12x3x3 weekly slow stochastic) declining below
8.0 given a close on Friday below 11,856. This will confirm the Friday, February 18 high
at 12,391.29 as a cycle high. My prediction has been a March high below 10,600. [chart]
While we are no longer under a ValuEngine Valuation Warning, stocks remain

overvalued with 53.4% of all stocks overvalued. This measure needs to fall below 35%
to call stocks cheap. Fifteen of 16 sectors remain overvalued, but now only one by
double-digit percentage.
• The Dow Industrial Average (11,855) -- My annual value level is 11,491 with a
daily pivot at 11,835, and weekly and monthly risky levels at 12,400 and 12,741.
• The S&P 500 (1281.9) -- My quarterly and annual value levels are 1262.5 and
1210.7 with a daily pivot at 1276.3, and weekly and monthly risky levels at
1327.3 and 1381.3. A weekly close below 1284 shifts the weekly chart profile to
negative.
• The NASDAQ (2667) -- My daily value level is 2646 with weekly, quarterly and
monthly risky levels at 2753, 2853 and 2926. Semiannual and annual value
levels are 2363, 2335 and 2172.
• The NASDAQ 100 (NDX) (2260) -- My daily value level is 2238 with weekly,
quarterly, and monthly risky levels at 2333, 2438 and 2499. Semiannual value
levels are 2006.8 and 1927.6.
• Dow Transports (5020) -- My quarterly value level is 4671 with weekly and daily
pivots at 4995 and 5040 with my annual pivot at 5179.
• The Russell 2000 (791.33) -- My quarterly value level is 765.50 with daily and
annual pivots at 785.84 and 784.16, and a weekly pivot at 805.37, and monthly
risky level at 850.79. Semiannual value levels are 631.62 and 567.74.
• The Philadelphia Semiconductor Index (SOX) (421.79) -- My daily value level

is 404.53 with weekly, monthly and quarterly risky levels at 447.74, 453.89 and
465.93. Semiannual and annual value levels are 296.89, 270.98 and 259.30. ‘
Look at How Producer Prices are Getting More Expensive Wall St Cheat Sheet ‘On
Wednesday March 16, 2011, The Producer Price Index for finished goods
increased 1.6 percent in February, seasonally adjusted, the U.S. Bureau of Labor
Statistics reported today . This rise followed advances of 0.8 percent in January
and 0.9 percent in December, and marks the largest increase in finished goods
prices since a 1.9-percent advance in June 2009.
At the earlier stages of processing, prices received by manufacturers of

intermediate goods moved up 2.0 percent, and the crude goods index climbed 3.4
percent. On an unadjusted basis, prices for finished goods advanced 5.6 percent
for the 12 months ended February 2011, the largest 12-month increase since a
5.9-percent rise in March 2010. (See table A.)
Monthly Changes Breakdown[chart]

Finished Goods (seasonally adjusted)[chart]
Finished Goods (not seasonally adjusted)[chart]
Intermediate Goods (seasonally adjusted)[chart]
Intermediate Goods (not seasonally adjusted)[chart]
Crude Materials (seasonally adjusted)[chart]
Crude Materials (not seasonally adjusted)[chart]’
Uptick in Wholesale Prices, Lower U.S. Home Construction Data Weighing On

Markets Barron’s ‘As Japan’s nuclear crisis widens and several Arab states
contemplate taking a more active role in Libya, stock ETFs are pointing down this
morning.The SPDR S&P 500 ETF (SPY) is slipping slightly in pre-markets
following disappointing reports on housing construction and wholesale prices.
The PowerShares QQQ (QQQQ) is down 0.4%.Overseas, the iShares MSCI EAFE
ETF (EFA) is sliding by 0.5% and the iShares MSCI Japan ETF (EWJ) is down
1.4%.Weighing on investors this morning is a report on U.S. housing starts that
showed that construction activity took the steepest monthly plunge in nearly 27
years in February. Also, U.S. wholesale prices surged 1.6% last month on higher
energy and food prices.’
Marc Faber On The Japanese Disaster, On A 20% Market Correction And On QE18
Marc Faber appeared earlier on CNBC in response to a plunging market, and gave
his latest updated outlook on QE3… and 4, 5, 6, 7 and 8 (not to mention 18). Tyler
Durden Zero Hedge March 15, 2011 ‘Marc Faber appeared earlier on CNBC in
response to a plunging market, and gave his latest updated outlook on QE3… and
4, 5, 6, 7 and 8 (not to mention 18). “We may drop 10 to 15 percent. Then QE 2 will
come, (then) QE 4, QE 5, QE 6, QE 7—whatever you want. The money printer will
continue to print, that I’m sure. .. I meant to say QE 18.”… No fear of that here: Zero
Hedge has been rather vocal in our opinion of the world’s most destructive
central planning buro from day one. We will continue being so, regardless how
low the S&P plummets… Perhaps even to its fair value south of 500.’
Junctures’ (see infra)
U.S. Stocks in Red, Though Markets Cut Early Losses Amid Fed Optimism [ Fed
optimism? You mean ‘fed b*** s*** ‘! Yes, we’re spoon fed ‘fed b*** s*** ‘. The
same ‘no-recession’ b*** s*** that wall street frauds are made of and thrive on.
What do you expect them to say? After all, it’s the fed’s incompetence, complicity
and wall street’s greed, fraud! ] Midnight Trader (see infra)
The sad, hypocritical retirement of Evan Bayh Klein (Washington Post) [ What’s
so sad about it? Maybe only that the entire congress hasn’t stepped down
with him, along with ‘wobama the b’ and the rest of his executive branch
except law enforcement, and that other so-called judicial branch of plushly
accoutered lifetime appointees. After all, someone must bear responsibility
for the pervasively corrupt, defacto bankrupt state of the nation. If not them,
then who. In the figurative (and I mean figurative not literal) sense, we should
all burst out with that familiar refrain from ‘Another one bites the dust’.]
Obama Laments He’s Not President Of Communist China [ Time to relieve

wobama the b’ (for b*** s***) of his burden by impeaching / removing him
from office without delay! He may not have been the first black president
(Clinton is generally considered the first black president by blacks and
whites alike, a moniker Clinton accepted and wore proudly – that 18% vote),
but he is certainly the last! Drudgereport: City Lowers Police Testing
Standards Because Not Enough Blacks Passed... Under pressure from
Obama administration... Illinois mayor says Obama still owes city
$55,457... Obama to party with Washington reporters... Golf in the
afternoon... ] Weekly Standard | “Mr. Obama has told people that it would
be so much easier to be the president of China.” Dave’s Daily: ‘…Where is
the president? This has been a universal question raised by both right and
left. Obama appeared on ESPN to go over his NCAA basketball bracket, is
hosting a $30K a plate fund raiser in Harlem and heads this weekend to Rio.
The president's disconnect is beyond belief and his ears have turned to
tin…’ Obama Plays While Japan Begs for Help [ ‘Wobama the b’ (for b***
s***) is a typical ‘***************’ … Go ahead, fill it in … whatever comes to
mind … don’t feel guilty, he’s already a failed president who should be
impeached / removed from office without delay and a total incompetent and
fraud. ] Paul Joseph Watson & Alex Jones | With the world on fire, the
President goes AWOL again … ’ Financialization and Our Increasingly
Unstable Economy Roche ‘I finally got around to seeing the movie Inside
Job, the story behind the credit crisis and winner of the Academy Award for
best documentary. It’s very good and I highly recommend it to anyone who
hasn’t seen it. It will certainly infuriate you. The movie doesn’t place nearly
enough blame on homeowners, but all in all it does an excellent job of
showing how Wall Street and government have become overrun by
deregulation and sheer greed. A combination of flawed economic theory and
economy. The worst part of it all is that President Obama, who vowed
change, has done almost nothing to fix any of it and in fact continues most
of the policies that helped get us here in the first place. …’ ‘INSIDE JOB’
Ferguson wins Oscar for Documentary on the unprosecuted massive extant
fraud in the (many) TRILLIONS by the frauds on wall street ( and declares
with oscar in hand that not one high level wall street exec has been
prosecuted … despite ‘earning’ billiions from the fraud ), the commentator /
experts recommend getting rid of the corrupt eric holder ( now what do
holder and wobama have in common … is it wall street money ………… is it
a proclivity for jive-talking / b*** s*** ………all of the above, some of the
above ……….. or is it something else …… here’s a hint - UPDATE: MORE
CLAIMS OF RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO
PURSUE FED PROBE IN BLACK PANTHER CASE... ‘In emotional and
personal testimony, an ex-Justice official who quit over the handling of a
voter intimidation case against the New Black Panther Party accused his
former employer of instructing attorneys in the civil rights division to ignore
cases that involve black defendants and white victims ...’ US v. AZ...
Cases against Wall Street lag despite Holder’s vows to target financial fraud
Washington Post | Obama has promised to hold Wall Street accountable for
the meltdown. ) (see this film, I strongly recommend the complete
documentary – the following is a preview/summary)
http://www.youtube.com/watch?v=ffHFjlqIzKE&feature=related
[Here’s an archived version
’Inside Job’ New Documentary Exposes Wall Street Fraud And How Banksters
Continue To Steal Our Money
Web site Link / Path to archived file: http://www.albertpeia.com/insidejob.flv

[45mb ]
http://www.albertpeia.com/insidejob.mp4 [ 65mb ] ]
] Former general counsel inherited part of a Bernard Madoff account.
Ethics code urged for Supreme Court (Washington Post) [ Sounds like a plan!
Come on! Wake up! After all, what can you expect from two guidos from ‘jersey
(alito and scalia, colloquial – note that I have refrained from using what some
might consider disparaging terms as w*p*, gui***s, or da***s … and let me state
for the record that I truly loved and respected my grandmother who was 100%
Italian/Bari,Italy and as well my grandfather/Lake Como,northern Italy with greek
ancestral roots and I thereby claim standing/right to posit the criticism in light of
my direct experience. ). How ‘bout starting with enforcing laws as to judges, liars,
etc., within the very corrupted american illegal system; and, particularly bribes
which in one form or another are rampant . I don’t know about Thomas ( 3-4-11
Throw Clarence Thomas Off the Bench (The Daily Beast) ) , but I do know about
alito and ‘jersey … :
October 15, 2010 (*see infra)
Steven M. Martinez, Assistant Director In Charge

Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700
Los Angeles, CA 90024
Dear Sir:
I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your
computer’s browser) as per your office’s request as made this day (the disk and contents
have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to
prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as
filed with the subject court as referenced therein (which files are also included on the
aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as
you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including
treble damages and attorney fees, as an incentive for private prosecution of said claims
probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of
such assistance given the seriousness and prevalence of said violations of law which have a
corrupting influence on the process, and which corruption is pervasive). A grievance
complaint against Coan was also filed concurrently with the subject action and held in
abeyance pending resolution of the action which was illegally dismissed without any
supporting law and in contravention of the Order of The Honorable Robert N. Chatigny,
Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the
referenced documents as filed. (Owing to the damage to the financial interests of both the
U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam
provisions of the Federal False Claims Act probably would apply and I would absent
resolution seek to refer the within to a firm with expertise in that area of the law with
which I am not familiar).
The document in 5 pages under penalty of perjury I was asked to forward to the FBI office
in New Haven is probably the best and most concise summary of the case RICO Summary
to FBI Under Penalty of Perjury at Their Request (5 pages)
[ ricosummarytoFBIunderpenaltyofperjury.pdf
http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf ].
The correspondence I received from the Congresswoman by way of email attachment

(apparent but typical problem with my mail) along with my response thereto is included on
the 3 disks as fbicorrespondencereyes.htm . With regard to the calls to the FBI’s LA
and New Haven, CT offices: There was one call to the LA office and I was referred to the
Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave
probative evidentiary documents of the money laundering which he confirmed as indicative
of same (he was transferred from said office within approximately a month of said meeting
and his location was not disclosed to me upon inquiry). The matter was assigned to FBI
Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly
retired (our last conversation prior to his retirement related to the case and
parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to
which he registered disbelief and requested I prove it, which I did – he served 12 years in
prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation –
Andrew Maloney’s the one that prosecuted gotti).
In contradistinction to the statement in said correspondence, there is a plethora of

information including evidence supporting the claims set forth in the RICO VERIFIED
COMPLAINT (see infra). Such includes and as set forth in the case, inter alia,
1. A judgment had been entered in my favor in the case, United States District Court
Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in
excess of $300,000 remains unaccounted for and which could be used for payment to
creditors, Los Angeles, etc..
2. Counsel Robert Sullivan on my behalf documented by way of certification upon
investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false
statement he predicated a retaliatory and spurious contempt proceeding against me
causing substantial damage, and for which he sought Judicial Notice of those and
related proceedings as did I in some of my filings.
3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant
Coan’s failure to file anything whatsoever by the court’s deadline causing creditors
and me substantial damages: [ Shiff Order of Dismissal With Prejudice on Coan’s
Failure to File Page 1 Page 2 ]
4. Defendant Coan had filed an action against me to prevent me from suing him which
necessitated me to fly to Connecticut for a hearing before The Honorable Robert N.
Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s
requested relief as to Coan but precluded my action against Shiff (although there is
no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a
case under Title 11, USC, etc.) . [ transcript in pertinent part -
crossexamofcoanbypeia.pdf ]
5. Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was
assigned the RICO case despite the conflict of interest in light of hundreds of
thousands of dollars of illegal (drug) money being laundered through the Trump
casinos by the RICO defendants, and despite my motion to recuse her which motion
she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met
personally refused to join or file a separate motion to recuse and not long thereafter
left said office for private practice at Cole, Shotz, et als on retainer with the RICO
defendants as his primary client.
6. Probative and evidentiary documents, affidavits, exhibits, including those turned
over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S.
Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office
in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said
documents and their probative value with him. Within approximately a month
thereafter upon inquiry I was told that Jonathon Lacey was no longer with the
office, that the file/documents could not be located, and that there was no further
information available concerning contacting him or his location. I thereupon
delivered by hand, copies of said documents to the office of then U.S. Attorney Alito,
addressed to him, with assurance they would go directly to him. In addition to being
inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on
purpose?) since I was suing some mob-connected under RICO and the court (I had
known / previously met outside of court the judge Ackerman through a client) was
absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20
mob defendants (rather than prosecute one or a few to flip them first) who feigning
illness had beds/cots in the courtroom along with their moans during testimony and
had the jury in stitches. As much as I hate the mob, it truly was funny, if not so
tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a
reasonable (but still rather short) time I called to determine the status and was told
that Alito was no longer with the Office of the U.S. Attorney, that he was
(appointed) a federal judge, and that neither the documents nor any file or record of
same could be located. Alito did parley the same / cover-up into quid pro quo direct
lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of
judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry
as well). This is the same Sam Alito that now sits on the purported highest court in
the land. The real application of the illegal rule ‘don’t ask, don’t tell’.
There is applicable insurance / surety coverage and neither LA, nor creditors, nor I
should continue to have been damaged by this brazened corrupt and illegal scenario,
which should be resolved in accordance with the meaningful rules of law apposite
thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
(213) 622-3745 (listed land line but there are unresolved problems with the line,
computer connection may be the reason but I hesitate to chance greater non-
performance / worsening by their ‘fix’ so cell phone best for contact).
] Group of law professors' appeal comes after controversies involving travel and
appearances at political events by several justices.
Why your local Hospital could soon shut down (Ad)

http://www.stansberryresearch.com/pro/1011PSIENDVD/LPSILC43/PR [ The
instant video on the economic / financial collapse from Stansberry and
Associates is so well researched and succinctly presented that I’ve archived
same on my website; also, because the facts and views presented comport with
the facts and views I’ve presented on my site which I believe to be correct. This is
a must-view, must-see that I strongly recommend!
The complete url: http://www.albertpeia.com/stansberrysinvestmentadvisory.flv
( 146mb – approx. 1 hr. 17 min. )
http://www.albertpeia.com/stansberrysinvestmentadvisory.mp4 ( 374mb )
Written text of presentation (without pictures / charts)
http://www.albertpeia.com/stansberrypresentation.htm ]
(Washington Post) [Wobama says daffy gaddafi’s time is up, got to go. The same
can be said of wobama et als and his fraudulently failed presidency.
Sheen On Obama: “A Coward In a Cheap Suit” [ I think Sheen to be too
gentle in his criticism of wobama (Some might reflexively, defensively
allege drugs (prescription or otherwise) or any number of the varied
personality disorders so prevalent in america … ‘fuzzy, California laid back
thinking’, ‘whatever’… Who knows? ) But, that said, wobama’s far worse
than just a ‘coward in a cheap suit’. Indeed, Wobama’s a total fraud having
been elected under false pretenses; viz., his total, unequivocal, and
unfulfilled b*** s*** (those campaign promises) ! Moreover, there has been
some persuasive documentation questioning wobama’s citizenship /
birthplace placing his eligibility to even hold the office of president in
question. Drudgereport: UPDATE: Huckabee claims Obama grew up in
Kenya... The Obama Nation, by Jerome Corsi Rezko was corrupt, and
supported Obama in many campaigns as well as in Obama buying his
home -- and therefore, according to Corsi, Obama is corrupt
by ...www.ontheissues.org/Obama_Nation.htm ] Amidst the controversy of
his wild interview on the Alex Jones Show yesterday, actor Charlie Sheen
wasted little time in confronting President Barack Obama on his failure to
answer Sheen’s twenty questions concerning 9/11, calling Obama, “a
coward in a cheap suit.” A Government Shut-down Imperils the Power
of Congress Paul Craig Roberts | Congress could try to protect its loss of
the power of the purse by impeaching Obama. Drudgereport: WOBAMA
'IMPEACHMENT' WARNING... ...to announce exploratory committee 'in 10
days' Globalist Shill Barack Obama Asks Business Leaders For Job
Creation Ideas Even As He Ships More Of Our Jobs Overseas As Part Of
The New One World Economy The other day, Barack Obama summoned a
group of business and labor leaders to the White House and “challenged”
them to come up with some great ideas for creating more jobs inside the
United States. Public confidence in Obama reaches new low (Washington
Post). Six in 10 Americans lack faith in Obama and hold lower esteem for
members of Congress, according to the latest Washington Post-ABC News
poll. Such stats as this tend to typify scenarios as this where you break
every significant campaign promise that got you elected, from endless war
(ie., Afghanistan, etc.) to not prosecuting the frauds on wall street, and the
growing realization of ‘typical’: Public confidence in Obama reaches new
low (Washington Post) Six in 10 Americans lack faith in Obama and hold
lower esteem for members of Congress, according to the latest
Washington Post-ABC News poll. Such stats as this tend to typify
scenarios as this where you break every significant campaign promise that
got you elected, from endless war (ie., Afghanistan, etc.) to not prosecuting
the frauds on wall street, and the growing realization of ‘typical’:
But still it’s ‘hands off fraudulent wall street’ to theirs, the nation’s, and the
world’s detriment. Firms subpoenaed in attempt to regain Fannie, Freddie
losses (Washington Post). But there’s a reason:
The following youtube video is well worth the look and explains how and why the
frauds on wall street have gotten away with their devastating fraud thus far.
The frauds on wall street et als should be criminally prosecuted, jailed, fined,
and disgorgement imposed. ( UPDATE: MORE CLAIMS OF RACE BIAS AT
JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK
PANTHER CASE... ‘In emotional and personal testimony, an ex-Justice
official who quit over the handling of a voter intimidation case against the
New Black Panther Party accused his former employer of instructing
attorneys in the civil rights division to ignore cases that involve black
defendants and white victims ...’ US v. AZ... Cases against Wall Street lag
despite Holder’s vows to target financial fraud Washington Post | Obama has
promised to hold Wall Street accountable for the meltdown. ):
‘THE OBAMA DECEPTION’ http://www.youtube.com/watch?

v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from
=PL&index=0&playnext=1 – well worth a look. [ The Obama Deception
Number 1 on U.S. Google Trends ]
While boner and barton are indeed jokes / vegetables that bespeak the single-
digit approval rate for congress, obama’s failure to deliver on promises with
as well, endless war spending despite defacto bankruptcy of the nation and
a watered down nothing financial regulation bill for talking points but little
substance, make him as big a joker, along with the dems. This well
researched / produced video tells the real story :
http://www.youtube.com/watch?
=PL&index=0&playnext=1 ‘THE OBAMA DECEPTION’ – well worth the view.
[ The Obama Deception Number 1 on U.S. Google Trends ]
‘The Obama Deception’ Censored A viral You Tube upload of one of Alex Jones’
most popular feature films ‘The Obama Deception’ has been censored following a
spur of the moment campaign to elevate the movie’s title to the top of the major
internet search engines. In light of this development, I provide an archived site
version which appears to be complete (but will be compared with earlier version
and replaced with same if incomplete)
http://albertpeia.com/obamadeceptionhighqualityversion.flv
Then there is the well researched, produced, and informative ‘ESOTERIC
AGENDA’ which explains how we’ve gotten to this forlorn point:
http://video.google.com/videoplay?docid=-7052400717834950257# For
the Same Reason I’ve Included Here a Web Site Archived FLV Version of
Esoteric Agenda http://albertpeia.com/esotericagenda.flv

you agree…’
Lessons from the long tail of improbable disaster (Washington Post) [ No! I
disagree with the implication of the article! Modern life advantages? What,
new fangled frauds? That was the bottomline to the real estate debacle; that
is, the ‘pretend’ was creating an ongoing plethora of profits derived from
literally worthless paper. If not for financial incentive (from fraud), and
certainty of prosecution for the fraud (to date such has not occurred), this still
extant debacle in the trillions would not have occurred. Moreover, and this is
not 20/20 hindsight, I had no idea of the prevalence of earthquakes in Japan
(but was aware of their nuclear energy commitment) and clearly, conscious
decisions for the sake of extra profits were made regardless of risk. Some (ie.,
earthquake-prone) nations just have to suck it up and make do without
nuclear (and pay more for fossil fuels, etc., which would affect margins). The
BP disaster was the consequence of a known flaw, even warned against by
personnel close to the debacle (the solution possibly affecting executive
bonuses, yacht, plane, exotic vacation home, etc.). New Orleans? … well,
who’d want to live there anyway outside of the Mardi Gras celebration…just
kidding. All the attention in the world does not change the ‘facts of life’. No,
not those facts of life, but reality. ] The lesson of disasters such as the one in
Japan is that more attention must be paid to extra risks that come with all the
Hidden workforce hinders recovery (Washington Post) [ Come on! Get real!
They’ll never give up that ‘fudge factor’ that gives them cover for their
prevarication and continued wall street churn and earn bubble fraud. ] The
biggest challenge to the nation’s economic recovery is Americans who have
stopped looking for new jobs.

manipulated bubble in this secular bear market based on b*** s*** alone is
an especially great opportunity to sell / take profits while you can since
there's much worse to come!
YAHOO [BRIEFING.COM]: ‘…Data generally disappointed today. First on the list

of releases is a housing starts report that showed a 22.5% drop in February
to an annualized rate of 479,000 units, which is not only considerably less
than the 575,000 units that had been forecasted, on average, by economists
surveyed by Briefing.com, but also the slowest rate in almost two years.
Building permits for February were also discouraging. They fell 8.2% from
the prior month to an annualized rate of 517,000, which is less than the
573,000 that had been broadly expected…’
AP Business Highlights: On Wednesday March 16, 2011, 6:54 pm EDT ‘Higher

prices for food are about to get worse WASHINGTON (AP) -- Americans are
noticing higher prices at the grocery store, and it's about to get worse. Food
prices at the wholesale level rose last month by the most in 36 years…’
Currency Meltdown Coming USA Watchdog | A ball of debt is growing. It is on

course to swamp the system.
US food price rise is steepest in decades London Telegraph | Food prices in

America soared at their fastest rate since the 1970s last month.
The Unbearable Lightness Of TARP Reporting The Daily Bail | Credit markets
were NOT “frozen” during the crisis.
Yen Hits Highest Against Dollar Since 1995 on Radiation Concern The yen
reached its strongest level since 1995 versus the dollar as risk of radiation
leaks from crippled nuclear plants in Japan added to speculation insurers
and investors will redeem overseas assets to pay for damages.
Foreign bankers flee Tokyo as nuclear crisis deepens Foreign bankers are fleeing
Tokyo as Japan’s nuclear crisis worsens, scrambling for commercial and
charter flights out of the country and into other major cities in the region.
Radiation In Ibaraki Rises To 300 Times Normal As Fukushima Evacuated,

DOCOMO To Limit Up To 80% Of Voice Calls In Chiba, Ibaraki, 50% In Tokyo
A choppy futures session has seen some modest profit-taking in line with
Nikkei trading, following news that all TEPKO personnel around Fukushima
are to be evacuated due to abnormally high radiation levels.
Nikkei Surges As BOJ Injects Another ¥3.5 Trillion: Just Add It To The Existing
¥23 Trillion Plunge Protection Tab It’s another day for the BOJ, which more
than anything is hell bent on preventing a rerun of last night’s tumble in the
futures to a 7 handle.
National / World
Fukushima nuclear power plant in Japan — a dirty bomb waiting to go off Mike
Adams | Far worse than a terrorism attack.
NRC Says Spent Fuel Pool at Unit Four Lost Massive Amounts of Water ABC
News | The Japanese quickly challenged statement, but gave few details
saying only that the situation at the holding pool was “stable.”
Governments, Corporations Push Cover-up of Japanese Nuclear Nightmare Kurt
Nimmo | Government secrecy is the rule of the day and the health and
welfare of citizens ranks low.
Obama Plays While Japan Begs for Help Paul Joseph Watson & Alex Jones | With
the world on fire, the President goes AWOL again.
Water in Pool Storing Spent Nuclear Fuel Rods May Be Boiling, Sign for Release
of Radioactivity Washington’s Blog | Damaged fuel rods emit radioactive
substances.
Radiation Contaminated Wind to Blow Toward U.S. Reuters | The wind speed will
get stronger in the afternoon, blowing as fast as at 12 meters (39.4 ft) per second.
Exodus from a nuclear nightmare Daily Mail | Those inside the cars and trucks
were fleeing for their lives, terrified about what might happen next.
Workers abandon Japan nuclear plant as crisis worsens Reuters | Japan’s

nuclear crisis appeared to be spinning out of control on Wednesday.
Fukushima nuke plant situation ‘worsened considerably’ Kyodo News | ”This

accident can no longer be viewed as a level 4 on the International Nuclear and
Radiological Events scale that ranks events from 1 to 7.”
Massive Cover-Up Of Radiation Levels In Fukushima Prefecture A data map of

radiation levels in Japan posted on the TargetMap website has omitted
information from the Fukushima Prefecture where nuclear reactors are
currently melting down.
Nuclear Crisis Live: 48 Hours To Avoid “Chernobyl On Steroids”? The IAEA says
that the temperature of the pool at reactor 4 was 84C on Tuesday morning.
On Wednesday morning, it was 62.7C at reactor 5 and 60C at reactor 6.
Current reports say the pools at both reactors 3 and 4 are boiling. Reactor
4′s pool may even be dry.
Obama Fiddles While Fukushima Burns History tells us that Nero fiddled while
Rome burned, but Barack Obama is providing the famous emperor with
some serious competition when it comes to going AWOL while America and
the world face crises the likes of which haven’t been experienced in
decades.
EPA Increases radiation monitoring In U.S. The EPA plans to work with its federal
partners to deploy additional monitoring capabilities to parts of the western
U.S. and U.S. territories.
Plant workers may undertake “suicide mission” to avert total meltdown “We’re
very close now to the point of no return,” Dr. Michio Kaku, a theoretical
physicist, said. “It’s gotten worse. We’re talking about workers coming into
the reactor perhaps as a suicide mission and we may have to abandon
ship.”
U.S. forces kept 50 miles away from Japan nuke plant U.S. forces in Japan are not
allowed within 50 miles of Japan’s crippled nuclear power plant, the
Pentagon on Wednesday, explaining measures meant to keep troops safe
during a relief operation.
Alert: Radiation from Stricken Japanese Plant Reaches Alaska? Radiation from
the Fukishima Daiichi nuclear power plant disaster has reached Alaska,
according to the state commissioner of health and social services in that
state. He said the state has detected a “very small increase in radiation
levels – well below levels that would be a health concern.”
Newly Released Images Show Devastated Nuclear Reactors The Tokyo Electric
Power Company has released new images that show the devastated nuclear
reactors at the stricken Fukushima plant, as authorities confirm that a
second reactor containment vessel has been damaged, leading to yet more
deadly radiation being released into the atmosphere.
French claim Japan is hiding full scale of nuclear disaster The French
government accused the Japanese of losing control of the situation and
hiding the full scale of the disaster.
27 Signs That The Nuclear Crisis In Japan Is Much Worse Than Either The
Mainstream Media Or The Japanese Government Have Been Telling Us How
much of a threat is the nuclear crisis in Japan? That question is on the
minds of millions of people around the globe tonight. The Economic
Collapse March 16, 2011
LATEST: Japan Now Using Helicopters to Dump Water on Smoking Reactors...
(Washington Post) [ Comments COMMENTS ARE CLOSED WHILE WE UPGRADE

OUR SYSTEMS ]
certainty of prosecution for the fraud (to date such has not occurred), this
still extant debacle in the trillions would not have occurred. Moreover, and
this is not 20/20 hindsight, I had no idea of the prevalence of earthquakes in
Japan (but was aware of their nuclear energy commitment) and clearly,
conscious decisions for the sake of extra profits were made regardless of
risk. Some (ie., earthquake-prone) nations just have to suck it up and make
do without nuclear (and pay more for fossil fuels, etc., which would affect
margins). The BP disaster was the consequence of a known flaw, even
warned against by personnel close to the debacle (the solution possibly
affecting executive bonuses, yacht, plane, exotic vacation home, etc.). New
Orleans? … well, who’d want to live there anyway outside of the Mardi Gras
celebration…just kidding. All the attention in the world does not change the
‘facts of life’. No, not those facts of life, but reality. ] The lesson of disasters
such as the one in Japan is that more attention must be paid to extra risks
that come with all the advantages of modern life
4, 5, 6, 7 and 8 (not to mention 18). “We may drop 10 to 15 percent. Then QE 2 will
come, (then) QE 4, QE 5, QE 6, QE 7—whatever you want. The money printer will
continue to print, that I’m sure. .. I meant to say QE 18.” …
Junctures’ (see infra)
U.S. Stocks in Red, Though Markets Cut Early Losses Amid Fed Optimism [ Fed
optimism? You mean ‘fed b*** s*** ‘! Yes, we’re spoon fed ‘fed b*** s*** ‘. The
same ‘no-recession’ b*** s*** that wall street frauds are made of and thrive on.
What do you expect them to say? After all, it’s the fed’s incompetence, complicity
and wall street’s greed, fraud! ] Midnight Trader (see infra)
The sad, hypocritical retirement of Evan Bayh Klein (Washington Post) [ What’s
so sad about it? Maybe only that the entire congress hasn’t stepped down
with him, along with ‘wobama the b’ and the rest of his executive branch
except law enforcement, and that other so-called judicial branch of plushly
accoutered lifetime appointees. After all, someone must bear responsibility
for the pervasively corrupt, defacto bankrupt state of the nation. If not them,
then who. In the figurative (and I mean figurative not literal) sense, we should
all burst out with that familiar refrain from ‘Another one bites the dust’.]

afternoon... ] Weekly Standard | “Mr. Obama has told people that it would be
so much easier to be the president of China.”

you agree…’
certainty of prosecution for the fraud (to date such has not occurred), this still
extant debacle in the trillions would not have occurred. Moreover, and this is
not 20/20 hindsight, I had no idea of the prevalence of earthquakes in Japan
(but was aware of their nuclear energy commitment) and clearly, conscious
decisions for the sake of extra profits were made regardless of risk. Some (ie.,
earthquake-prone) nations just have to suck it up and make do without
nuclear (and pay more for fossil fuels, etc., which would affect margins). The
BP disaster was the consequence of a known flaw, even warned against by
personnel close to the debacle (the solution possibly affecting executive
bonuses, yacht, plane, exotic vacation home, etc.). New Orleans? … well,
who’d want to live there anyway outside of the Mardi Gras celebration…just
kidding. All the attention in the world does not change the ‘facts of life’. No,
not those facts of life, but reality. ] The lesson of disasters such as the one in
Japan is that more attention must be paid to extra risks that come with all the
Hidden workforce hinders recovery (Washington Post) [ Come on! Get real!
They’ll never give up that ‘fudge factor’ that gives them cover for their
prevarication and continued wall street churn and earn bubble fraud. ] The
biggest challenge to the nation’s economic recovery is Americans who have
stopped looking for new jobs.

4, 5, 6, 7 and 8 (not to mention 18). “We may drop 10 to 15 percent. .. Faber was
modestly constructive on the Japanese selloff, which at one point hit 18% down
in overnight futures trading: “This huge selloff is an investment opportunity in
Japanese equities, but if a meltdown occurs then all bets are off.” As usual, there
is no love loss between Faber and the Chairsatan (recall that today’s Empire
Manufacturing survey confirmed margins continue to be crushed due to surging
input costs): “I think Mr. Bernanke doesn’t know much about the global economy
but he probably watches the S&P every day.” And on Fed criticism: “”Until very
recently the Feds have had very few critiques, very few people criticized the Fed’s
policies under Mr. Greenspan and Mr. Bernanke. Over the last few months, a lot
of critical comments have come up about the Fed and its money-printing habit.
The S&P drops 20 percent (and) all the critics will be silent and they will all applaud new
money-printing.” No fear of that here: Zero Hedge has been rather vocal in our
opinion of the world’s most destructive central planning buro from day one. We
will continue being so, regardless how low the S&P plummets… Perhaps even to
its fair value south of 500.’
Poll: Support for Afghan war waning (Washington Post) [ Waning? When have
these nation-bankrupting, perpetual war policies been other than ‘waning’, except
among the zionists, neocons, war criminals, military industrial complex, war
profiteers, etc.. It was opposition to these perpetual war policies that got
‘wobama the b’ (for b*** s***) elected, only to be revealed for the blatant liar / fraud
that he truly is. ]
This is the grim economic reality http://albertpeia.com/grimreality.htm . This


you agree…’
Saudi troops intervene in Bahrain (Washington Post) [ This most assuredly is

exactly that; viz., a ‘declaration of war’. And, as importantly, the militant /
transgressor is hardly a righteous player but rather a self-interested,
totalitarian, family plutocracy whose actions cannot be supported by any
criteria heretofore promulgated precluding same. Saudi police open fire at
protest (Washington Post) [ Time to revoke the saudi pass to do whatever
please owing to their preposterous claim to all the oil wealth of the entire
Saudi nation. 16 miles away, Saudi Arabia's watchful eye looms over
Bahrain unrest (Washington Post) [ I’m sure they are… with a microscope at
that. Saudis Worried Protests Will Hit Home - saudi arabia; talk about do
nothing hypocrites. How does one family claim ownership of all the oil
reserves of a sovereign nation; I suspect only when foreign corporations
say so For the sake of the saudi Arabian people, more than just protests
should come to fruition! ] AFP | Saudi royal warns Arab world uprisings
could cause harm unless they reform. Bahrain authorities launch surprise
attack on protesters [There’s the america and saudi Arabia effect; far less
than democratic and far more deadly in the mideast among other places; talk
about hypocrites. How does one family claim ownership of all the oil
reserves of a sovereign nation as the saudis; time for the saudis to go the
way of dictator Mubarak and take the war criminal americans with them. ]
Los Angeles Times Tear gas canisters bombard sleeping protesters in
Manama's Pearl Square. At least two men are reported killed Video:
Bahrain protesters look to emulate Egypt revolt euronews Riot Police
Attack Bahrain Protesters Voice of America ‘Saudi Arabia sending troops to
Bahrain’ Saudi Arabia is sending troops to Bahrain in a move to crack down
on pro-democracy protesters who took to the streets in the capital Manama,
a political analyst says. [SAUDIS TOLD OBAMA 'NOT TO HUMILIATE
MUBARAK'] Opposition calls move to shore up monarchy and quell protests
a “declaration of war.”
Store shelves empty even outside disaster zone as panic buying grips Japan
(Washington Post) [ I think the term ‘panic-buying’ with its connotation of
‘overreaction’ is a misnomer and misapplied to this unprecedented catastrophe. I
further believe that the magnitude of the fallout, literally and figuratively,
economically and otherwise, cannot be overstated in being far more dire in
negatively impacting already dour global economic prospects. ] TOKYO - Canned
goods, batteries, bread and bottled water have vanished from store shelves and
long lines of cars circle gas stations, as Japan grapples with a new risk set off by
last week's earthquake, tsunami and ensuing nuclear crisis: panic-buying.
Controversey Over Bonuses (Washington Post) : I think an appropriate bonus for

anyone on capital hill is an all-expenses-paid trip to ………… JAIL! Fed meets as
risks widen; policymakers aim to guard against inflation while fostering growth
(Washington Post) [ Come on! Let’s not kid each other! The fed’s failed on both
counts, continuing the policies of failure ushered in by the senile greenspun…
This is the grim economic reality http://albertpeia.com/grimreality.htm . This
manipulated bubble in this secular bear market based on b*** s*** alone is an
especially great opportunity to sell / take profits while you can since there's much
worse to come! … Who, Besides Ben Bernanke, Wants to Buy (u.s.) Bonds?
Well, PIMCO just voted with their feet (they’re out of them) … Japansunami will
preclude same (note: despite the dire implications for defacto bankrupt america
owing to their costly reconstruction preoccupation … market suckers’ rally into
the close and off the lows to keep investors suckered … you can do such things,
especially into the close, with those computerized high frequency trade programs
which are great for generating commissions from the old ‘in-out, in-out’, and then
some … these days like last crash / crisis are made for such frauds.) … don’t go
looking to china to take more baths, especially with that recent trade deficit of
theirs. The answer is no-one! And, one can begin to see the fed’s reluctance to
alow proper scrutiny of their books ( technically ‘insolvent’ but printing ever more
worthless paper); beyond their complicity in the massive wall street frauds
cashed out with their help, there’s the worthless ‘paper on paper’ debacle just
around the corner. ] WASHINGTON - The Federal Reserve meets Tuesday at a
time of widening economic risks: higher oil and food prices; unemployment near
9 percent; crises in the Middle East and Japan.
Operators struggle to stabilize nuclear plants Attempts to cool Fukushima

Daiichi reactors have failed (Washington Post) [ ‘China Syndrome’ … now
being third after China, economically speaking, is the least of Japan’s
worries. While never really giving it much thought, though seemingly 20/20
hindsightish (it’s really not), I always assumed now admittedly
unrealistically, that nuclear plants were built in nonearthquake-prone-zones.
Clearly, that’s not the case in Japan and I all but wonder where else. ] Some
170,000 evacuated, 160 possibly exposed; other facility declares state of
emergency.
Monday's Correction: Now That's a Black Swan Tradermark ‘The seemingly

widespread issues with nuclear plants in Japan are certainly not something one
typically has to deal with in the market. Generally you expect media to overplay
things, so after the quake Friday, it has been a surprise to see the nuclear
situation getting seemingly progressively worse as each day passes, so we
definitely have this affecting sentiment. Japan fell over 6% overnight, and U.S.
markets are at fresh lows as this mini 'black swan' overwhelms the normal
Monday morning garbage. [chart] I said Friday it would actually be in the bears'
interest for a rally to work off some of the oversold condition, and then we'd (in a
normal market) see another leg back down. Certainly due to the news, we did not
get more than a 1 day bounce - but this is how sell-offs usually occur. While still
prone to news which can herk and jerk us around, this market definitely now
seems to be in correction mode with the S&P 500 quickly fading back the 50 day.
One could make bets against the index with the 50 day as your ceiling. Usually a
real correction begins with everyone thankful there is a "buying opportunity" but
ends when people feel actual consternation. Right now, almost everyone is just
thankful they have a chance to get in, hence I'd think there is more downside
ahead from a sentiment standpoint.’
Who, Besides Ben Bernanke, Wants to Buy (u.s.) Bonds? [ Well, PIMCO just voted
with their feet (they’re out of them) … Japansunami will preclude same
(note: despite the dire implications for defacto bankrupt america owing to
their costly reconstruction preoccupation … market suckers’ rally into the
close and off the lows to keep investors suckered … you can do such
things, especially into the close, with those computerized high frequency
trade programs which are great for generating commissions from the old ‘in-
out, in-out’, and then some … these days like last crash / crisis are made for
such frauds.) … don’t go looking to china to take more baths, especially with
that recent trade deficit of theirs. The answer is no-one! And, one can begin
to see the fed’s reluctance to alow proper scrutiny of their books
( technically ‘insolvent’ but printing ever more worthless paper); beyond
their complicity in the massive wall street frauds cashed out with their help,
there’s the worthless ‘paper on paper’ debacle just around the corner.]
Looking Like A Good Time To Sell Into Strength - Harding ‘Many important global
stock markets, including China, Brazil, India and Hong Kong, have been in fairly
may develop over the next few days during the ‘monthly strength period.’
Junctures
The markets technically are at critical junctures right now. Stock prices are at the point
of very possibly getting squeezed to an upside breakout as some have forecasted, and
to a downside breakdown as some others, including me, have forecasted (not to
mention what the market is showing currently). I don’t see fundamental, technical or
sentiment information supporting higher stock prices right now; rather, technical
fundamental analysis -- and even more importantly, sentiment indicators -- are showing
that the market is heading lower before heading higher again.
I would also suggest that the major index support levels I’ve listed below may not hold
either, with more downside from these levels longer-term. Below are more reasons to
be at least cautious and/or short-selling right now.
March 14, 2011 Major Index Price Support Forecasts

DJIA – 11,839.93 to 11,485.37
S&P 500 – 1,227.95 to 1,156.06
Nasdaq – 2,557.06 to 2,382.12
Is the Bear Market Back? Reasons to be Cautious
Oil and Stock Prices
Oil prices fell on Thursday and Friday, as did stocks. Lower oil prices help global
growth, and higher oil prices slow it down. Seems to me the oil market is saying if global
growth slows down due to high oil prices (or any other number of economic problems), it
won’t support oil prices at these levels for very long. In my opinion, I don’t think global
growth can handle oil at prices above $100 plus for very long; if so, oil demand
destruction will set in eventually, causing lower global growth, and eventually lower oil
prices to match up with that growth. Deflation first, inflation later -- as I’ve always said.
Global Broad Market Sell-Off
The sell-off last week was a global broad market sell-off. The global markets have been
on an uptrend for the last two years. From my perspective, it’s been a bear market rally
from the October 8, 2007 market top to the March 2, 2009 low, especially in the U.S.
and Europe. Asia and the other emerging markets are now almost in lockstep with the
developed markets, showing that what affects the major countries of the world affects
the rest of the emerging growing world too.
Even the higher growth rates of the emerging markets don’t necessarily mean higher
stock prices in those markets. I’ve yet to see different markets decouple for a sustained
period of time. They always seem to follow the broad global markets in the long term, no
matter what their good and bad news is.
European Union Sovereign Debt Problems Still There
Europe financial skeletons in the closet are making noise again, with Moody’s (MCO)
Spain debt downgrade and the entire ECB sovereign debt problems re-awakening with
the recent news. It seems the financial markets forgot about this very serious debt issue
unfolding, and it's not over with yet in Europe. I suggest the same is coming for the U.S.
eventually as well. It’s going to take years to clean up the sovereign debt mess, with
some of those countries possibly ending up in default.
China’s Surprise Jump in Trade Deficit
China’s increasing trade deficit is another worry for the global economy. China had an
unexpected $7.3 billion trade deficit report last week. China continues trying to slow
down its economic growth. A friend of mine in China who’s not a financial analyst says
it’s only a matter of time before the China real estate market in the metro areas declines
much more. China real estate prices and rent in China's cities are “crazy” in relation to
earnings, he says, and if there is a China and/or global slowdown, he sees China real
estate prices and rent heading much lower.
If this happens, it could put a big squeeze on the Chinese government, the Chinese
banks that hold the debt, and the economy as a whole. Famous short-seller Jim Chanos
might just get his wish of a bigger China selloff. I don’t like the idea of short-selling
China myself, but I wouldn’t be buying just yet either.
2009-10 Stock Price Rebound: Too Far Too Fast
The rebound in stock prices over the last two years has been too far, too fast compared
to the actual economic growth in the same time period -- which is still the same as it
was three years ago. With the severe sell-off that the market saw during 2007-08, it’s
normal to have a rebound back to test the sell-off breaks which are now major
resistance levels. The market is at those major resistance levels now. Because of this, I
see at least near-term downside pressure on stock prices, and longer-term price
downside if the bigger picture long-term fundamental issues don’t get worked out fast
enough to support sustainable long-term economic growth.
Priced for Perfection?
The markets are showing more high-risk low-reward conditions now from my technical
analysis. The market is showing no margin of safety in case the bulls are fundamentally
wrong, which I think they are. The U.S. market seems to be priced for perfection, with
the bears in hiding after this two-year bull run in the markets. I remind all the bulls that
buying into a breakout after an already extended bull run can easily end up in a fake-out
break-out, trapping new long positions. I think professional money managers know this
well, suggesting more selling is to come. Retail investors take note and use caution
taking on any new "buy long" positions here.
Over-Valued Market Valuation Now?
Market over-valuation is here with the S&P500 dividend yield below 2%, and cyclically-
adjusted earnings at 24 times compared to the 16 times historical average. I suggest
looking at earnings estimate revisions from Zacks Investment research for the best
individual stock opportunities in the markets right now. Most stocks follow the broad
market, but a select few buck the broad market. Zacks Ranks Earnings Revisions can
help you to select stock by stock picks.
Analysts' earnings estimate revisions can go up and down with the psychology of the
time, so your due diligence is crucial at this time. With the market prices up these last
two years, some analysts have been increasing their company earnings estimates. The
reality is that earnings estimates and their revisions can skew the analysis of any
company with a false sense of future price performance confidence. Buying in on
positive earnings estimate revisions and or real earning report increases is not
necessarily a guarantee of increasing stock prices, so be careful.
Amateurs Want To Be Right and Professionals Want To Make Money
The retail public has been buying more stock this last year, which is another possible
sell indicator. History has shown in the past that the public gets in and out of stocks at
the wrong times, buying near the tops and selling near the bottoms.
Here’s the difference between an amateur armchair retail investor trader and a
professional one: Amateurs want to be proven right most of the time. They will take
huge drawdowns in an attempt to prove themselves right on a stock buy. Once they’ve
taken more drawdown than they can handle financially and mentally, usually 50% or
more, they throw in the towel and admit defeat.
Professionals, on the other hand, understand losses are a part of the game, and have a
system to deal with increasing losses. It’s called stop-loss. Depending on the stock, and
its volatility, the stop-loss amount to admit defeat and save your investment trading
account is 8% loss per stock from the purchase price, even if it’s a blue-chip. Stop-loss
is a tool to effectively manage money in the markets. Professionals use stop-loss, and
retail investors need to use it more if they want to save their accounts.
Record Insider Selling Lately
Insider selling during the fourth quarter 2010 hit multi-year highs. Since then, insider
selling has stayed strong. Insider selling or buying is not a standalone surefire way of
knowing where the price of a stock is going, but there’s no one who better knows about
a company’s future earnings prospects than its board of directors. If they are selling,
and especially selling in big blocks, you should be paying attention, and very possibly
selling too. You can always buy back the stock at any time.
Fundamental and Technical Analysis? Review the Current Market Sentiment Even
More
Notice that what I’m citing is not just all about fundamental or technical analysis, but
also involves a very important aspect of the markets: Sentiment or market psychology.
Money managers are saying it’s all "bull bull bull" again. Well, of course. If they don’t,
they might be out of a job if the redemptions empty the mutual fund they're managing.
With everyone a bull again, that’s one indicator to possibly be ready to move to the
other side -- and fast -- in case the market tips too heavily to one side for too long.
When everyone is leaning to one side for a sustained period of time, it might be prudent
and very profitable for you to start reviewing the option of moving to the other side
before everyone else does.
If you are fortunate to see a reversal opportunity, and take a reversal position, and then
the reversal moves in your direction, it can be exponentially profitable with the reward-
risk ratio very large in your favor, meaning the stop-loss to the "take profit" areas of the
trade are extremely favorable. Reward-risk ratios of 3:1-plus are great.
In a market like this right now, some of the reward-risk ratios to the short-sell side may
be approaching 5:1 to 15:1. Remember, successful investing and trading is about
knowing what price you’re entering at, your stop-loss price you will exit at (with a small
loss in case the position goes against you), and your take profit target areas to book a
profit. This is total trade entry and trade management to be successful long-term in
investing and trading the markets.
Investing and trading without a system is a plan for failure. If you want to succeed in the
markets long-term, learn and manage your investing trading systems on a regular
consistent basis.’
Buying Power Wasted?: Dave's Daily ‘It's probably not a good time for humor. I
just wonder what was behind the immediate bounce higher off the opening gap
lower Tuesday. Certainly it wasn't from any shred of good news. Oh wait, oil
prices dropped and many believe the Fed will print money forever while keeping
interest rates low. Further, markets were sharply short-term oversold right from
the opening bell. Okay, I get it now. Still, you must wonder if buying power was
wasted. Rumors dominate markets. One asserts the Japanese will shutter
markets for the week because of margin calls. EWJ (iShares Japan ETF) actually
closed green today. Why? Perhaps if the markets closed some can work some
arbitrage just as done when Egypt markets were closed. The outcome of the
nuclear mess in Japan remains influx with more earthquakes and radiation
spreading. We are also witnessing the collapse of western and U.S. diplomacy.
Gaddafi is going to win. He was a terrorist but then became a friend of sorts.
When the violence was at its peak, western powers told him to leave. He didn't
and now he looks to win and we look stupid since, what do we do now? Send
Hillary over to have a nice chat with him? Next, Saudi Arabia invades Bahrain and
the U.S. was uninformed. What's up with that? There was some economic news
from the Empire Manufacturing report which was positive only if you didn't look
at the inflationary prices paid component. The Fed also weighed-in with their
interest rate report which came in as expected. The dollar was slightly lower,
while commodities overall were sharply lower as investors fled risk and moved to
the sidelines or bonds. Suffice it to say, this is a tough market to navigate.
Volume was the heaviest we've seen in a long time and opening trades may have
been a wash-out but it's too early to say. Breadth per the WSJ was decidedly
negative. ‘
Damage Assessment - How Low can Stocks Go? Maierhofer ‘Simon Maierhofer,
On Tuesday March 15, 2011, 6:08 pm EDT
Before we talk about how bad things could get and the key support level that may
make the difference between correction and meltdown, I'd like to say a word
about the Japan and the media.
Some people are news junkies, I am a headline junkie. Scouring headlines

provides a quick read on the nations sentiment. Whether headlines are a
reflection of national mood, or shape the national mood, that is a subject for
another day.
Thinking about what happened in Japan puts things in perspective for many of
us. There is more to life than analyzing the market's every move. The media
vividly portrays the damage and heartbreak of a ravaged country.
Let's remember that even when the media moves on to the next hot topic, there
remain many victims that need our support. At one point the media will forget
about Japan as it did about Haiti, Chile, and Indonesia, but that doesn't mean that
the suffering has miraculously been wiped away. Our support is needed even
more so once the media loses interest.
Damage Assessment
No doubt the events transpiring in Japan (NYSEArca: EWJ - News) have put stock
markets around the world on a fast track to lower prices. Japan's Nikkei 225
futures have fallen from 10,900 a few weeks ago to as low as 8,400, a 23% drop.
The iShares MSCI EAFA Index ETF (NYSEArca: EFA - News), a barometer of
developed markets around the world, had dropped from 62 to 55. The loss in the
iShares MSCI Emerging Markets ETF (NYSEArca: EEM - News) has been
contained to 10% or less.
Even U.S. investors spoiled by the Fed's loose monetary policy have come to find
out that the major U.S. indexes a la Dow Jones (DJI: ^DJI), S&P (SNP: ^GSPC),
and Nasdaq (Nasdaq: ÎXIC) can (and will) actually move in both directions.
Speeding up the Inevitable
Let's not forget that the U.S. stock market was in correction mode even before the
earthquake hit Japan. On Thursday, March 10, the S&P closed at 1,295. On Friday,
March 11, the first post-earthquake trading day, the S&P actually was up and
closed at 1,304. The events in Japan may have accelerated the stock sell off, but
they weren't the only cause. There were a number of subtle (by Wall Street
standards) but obvious (by contrarian standards) red flags in the middle of
February.
On February 8 with the S&P at 1,325, the ETF Profit Strategy Newsletter examined
the environment of exuberant bullishness. The medias conclusion (see headlines
below) was so obvious: Higher prices ahead:
Reuters: Fed more Confident in Recovery
AP: Investors Return to US Stock Funds in January
CNBC: S&P will Rise 60% by 2013
Kiplinger: 10 Signs the Economy is on the Upswing
The ETF Profit Strategy Newsletter offered this advice and recommended short
ETFs: 'How often in the past have we seen the old adage if it's too obvious, it's
obviously wrong' have the last laugh? Now is not the time to be complacent, it's
the time to evaluate shorting strategies and other defensive measures.'
How Bad Can it Get?
There've been a number of major earthquakes in the past decade. Following the
December 26, 2004 earthquake off the coast of Sumatra, the U.S. stock market
declined about 4%.
The January 12, 2010 earthquake in Haiti did not immediately affect the stock
market. However, starting on January 19, U.S. stocks declined about 10%.
Even though the death toll of both earthquakes was larger than in Japan, the
economic impact of the Japan quake outweighs anything previously recorded.
In terms of economic impact, hurricane Katrina might be the closest comparison

there is. Hurricane Katrina struck Louisiana on August 29 and cased an estimated
$81 billion in property damage.
Stocks rallied the ten trading days following August 29, declined about 5%
thereafter and continued their run to the 2007 all-time highs.
Admittedly, based on a small sample, natural catastrophes are not necessarily

bearish for U.S. stocks.
Technical Damage Assessment

The risk in U.S. stocks comes from bullish sentiment extremes, valuations, and a
decoupling between facts and reality. In addition, there is a giant bearish head
and shoulders pattern (ideal upside target not quite met yet) and a trend line that
has contained the Dow Jones for most of the past 80 years.
On February 18, the ETF Profit Strategy Newsletter identified this trend line (at the
time running through Dow 12,400) as major resistance. The Dow came within 9
points before reversing sharply.
In terms of technical analysis, S&P 1,275 is important support/resistance. As of

Tuesday mornings stocks have recovered some of their overnight losses and are
once again above 1,275. The 50-day moving average is at 1,302. It remains to be
seen whether stocks have enough strength to rally that far.
Thus far key structural support below 1,275 has been maintained and the
potential for higher prices has not yet been eliminated. However, the reaction to
Japan's woes (remember how the market shrugged of European financial defaults
and Middle East unrest) might indicate a larger change of trend…’
U.S. Stocks in Red, Though Markets Cut Early Losses Amid Fed Optimism
Midnight Trader ‘4:18 PM, Mar 15, 2011 --
• NYSE down 101.82 (-1.2%) to 8,092.14

• DJIA down 137.74 (-1.2%) to 11,855
• S&P 500 down 14.52 (-1.1%) to 1,282
• Nasdaq down 33.64 (-1.3%) to 2,667
GLOBAL SENTIMENT
• Hang Seng down 2.86%

• Nikkei down 10.55%
• Shanghai Composite down 1.4%
• FTSE down 1.35%
The Unbearable Lightness Of TARP Reporting The Daily Bail | Credit markets
were NOT “frozen” during the crisis.
Stocks nosedive on panic selling over nuke crisis JapanToday | Tokyo stocks
tumbled further Tuesday, with the Nikkei index shedding more than 14 percent at
one point on panic selling.
The Rule of Gold After The Financial Collapse Activist Post | In a secular world,
the operative “Golden Rule” is “He Who Has the Gold Makes the Rules”.
World Stocks, Oil Slump on Japan Nuclear Fears World stocks hit 2-1/2 month
lows on Tuesday and oil fell and the yen surged after reports of rising
radiation near Tokyo triggered a 10 percent fall in Japanese stocks, hurting
risky assets across the board.
Japan’s Nikkei plunges 11 percent on radiation fears, sending global markets into
a tailspin Japan’s stock market nose-dived nearly 11 percent, leading world
markets sharply lower on Tuesday, as an escalating nuclear crisis
threatened to compound the devastation from last week’s earthquake and
tsunami.
14 Reasons Why The Economic Collapse Of Japan Has Begun The economic
collapse of Japan has begun. The extent of the devastation is now becoming
clear and many are now projecting that this will be the most expensive
natural disaster in modern human history.
ECONOMIC CRISIS ARCHIVE
National / World
Alert: Fukushima Coverup, 40 Years of Spent Nuclear Rods Blown Sky High Paul
Joseph Watson and Kurt Nimmo | More than 600,000 spent fuel rods on site,
ready to burn and enter the atmosphere.
Alarm Over Spent Fuel Rods Threatens “Chernobyl on Steroids” Perhaps the
most underreported and deadliest aspect of the three explosions and
numerous fires to hit the stricken Fukushima nuclear reactor since Saturday
is the fact that highly radioactive spent fuel rods which are stored outside of
the active nuclear rod containment facility are likely to have been massively
compromised by the blasts, an elevation in the crisis that would represent
“Chernobyl on steroids,” according to nuclear engineer Arnie Gundersen.
Japanese PM Attempts to Calm Nation as Massive Radiation Spreads Tokyo

Electric Power Company, in collusion with the Japanese government, is
deliberately misinforming and thus endangering the people of Japan, the
surrounding region, and eventually the United States and other countries
that may be downwind from the Fukushima Daiichi nuclear plant.
New Fire Hits Number 4 Reactor At Fukushima AFP is reporting a new fire at the
number four reactor at the Fukushima Daiichi nuclear plant. Flames are
rising from the reactor, AP reports.
U.S. Government Blocking Americans From Obtaining Potassium Iodide? U.S.

health authorities could be blocking Americans from obtaining the radiation-
fighting drug potassium iodide, even as the threat of a radioactive cloud
from the stricken Fukushima nuclear plant affecting the United States
prompts panic buying, which has led to stocks of the drug running out
across the country.
Panic Buying: Stocks Of Potassium Iodide Exhausted In U.S. We are getting

numerous reports from readers that stocks of potassium iodide, which is
used to protect the body against the effects of nuclear fallout, are
completely sold out across the United States. Checks of health supplement
websites in the U.S. also confirmed that stocks are completely exhausted.
Mass Evacuations Begin From North East Of Japan, Tokyo As the scale of the
nuclear disaster unfolding at the stricken Fukushima’s nuclear plant begins
to be finally realised, despite the Japanese government’s continued
underplaying of the situation, mass evacuations are are underway with
people fleeing Tokyo and North Eastern areas of the country in order to
avoid a toxic cloud of radiation heading their way.
Radioactive Winds Head Towards Tokyo As Some Flee Capital With Japanese
authorities confirming that the third blast at Fukushima’s stricken nuclear
plant caused radioactive particles to be released directly into the
atmosphere, localized winds are blowing the radiation towards Tokyo,
causing many to flee the capital, but the longer term trajectory of upper
atmosphere prevailing winds will still send any potential radiation cloud
towards the U.S. west coast.
U.S. Government Blocking Americans From Obtaining Potassium Iodide? Paul

Watson | U.S. health authorities could be blocking Americans from obtaining
potassium iodide.
Radio France Pulls Staff From Japan Over Radiation Fears Radio France decided
Tuesday to pull out staff dispatched to cover the major earthquake in Japan,
following a series of accidents at a Japanese nuclear power plant, a public
relations official told Kyodo News.
Airlines start cancelling flights to Tokyo Lufthansa, Europe’s biggest airline

group by revenues, has cancelled flights to Tokyo’s main international
airport of Narita as Japan’s nuclear crisis deepens.
U.S. Navy: Low-level radiation detected at some Tokyo-area bases The Navy said
very low levels of airborne radiation were detected Tuesday morning at
greater Tokyo-area bases in Yokosuka and Atsugi, prompting commanders
to direct base residents to remain indoors as a precaution.
Qaddafi Retaking Libya Tony Cartalucci | It appears Colonel Qaddafi has begun
retaking Libya from globalist-backed rebels.
Panic Buying: Stocks Of Potassium Iodide Exhausted In U.S. Paul Joseph Watson |
Health websites sold out, readers struggle to find radiation-fighting pills
anywhere.
Japan braces for potential radiation catastrophe Reuters | Spent nuclear fuel was
exposed to the atmosphere.
Violent Protests Across Yemen, 3 Soldiers Dead Reuters | Scattered clashes

broke out across Yemen on Monday.
Fuel rod fire at Fukushima reactor “would be like Chernobyl on steroids” Kirk
James Murphy | Chernobyl’s contamination settled upon people and nations
thousands of miles from that reactor’s location.
Drudgereport: BAIL: NUKE WORKERS ABANDON PLANT

Radiation spews into sky -- again...
KYODO: CRISIS HAS 'WORSENED CONSIDERABLY'...
Wind to blow toward Pacific Ocean, America...
U.S. Surgeon General: Get iodide...
AP... BBC... KYODO... REUTERS...
Sudden run on pills...
GOVERNMENTS CALL FEARS UNWARRANTED...
Reactor Design Caused GE Scientist To Quit In Protest...
Design in dispute for decades...
FUEL RODS DAMAGED 70 PERCENT...
Roof Cracked After Last Explosion...
Two workers still missing...
SPENT NUKE FUEL POOL MAY BE BOILING...
Helicopters no longer option to cool reactors...
Nuclear blizzard...
Food panic...
Thousands missing, millions short of water – and fear everywhere...
MILLIONS SUFFER FREEZING TEMPS WITHOUT POWER...
Confusion, chaos spreading...
WHITE POWDER DISCOVERED AT KENNEDY SPACE CENTER TESTS POSITIVE
FOR COCAINE...
AL FRANKEN WARNS: 'THEY'RE COMING AFTER THE INTERNET' … This should
be taken very seriously since they know that truth is their worst enemy in light of
their nefarious, nation-destroying activities for greed and worse ...
Monday's Correction: Now That's a Black Swan Tradermark ‘The seemingly

widespread issues with nuclear plants in Japan are certainly not something one
typically has to deal with in the market. Generally you expect media to overplay
things, so after the quake Friday, it has been a surprise to see the nuclear
situation getting seemingly progressively worse as each day passes, so we
definitely have this affecting sentiment. Japan fell over 6% overnight, and U.S.
markets are at fresh lows as this mini 'black swan' overwhelms the normal
Monday morning garbage. [chart] I said Friday it would actually be in the bears'
interest for a rally to work off some of the oversold condition, and then we'd (in a
normal market) see another leg back down. Certainly due to the news, we did not
get more than a 1 day bounce - but this is how sell-offs usually occur. While still
prone to news which can herk and jerk us around, this market definitely now
seems to be in correction mode with the S&P 500 quickly fading back the 50 day.
One could make bets against the index with the 50 day as your ceiling. Usually a
real correction begins with everyone thankful there is a "buying opportunity" but
ends when people feel actual consternation. Right now, almost everyone is just
thankful they have a chance to get in, hence I'd think there is more downside
ahead from a sentiment standpoint.’

you agree…’
2 Years After the Bottom, the 'Smart Money' Is Selling: "It's a Bit Late to Go
Long," Nenner Says Nenner ‘Wednesday's two-year anniversary of the start of the
bull market proved anticlimactic as major averages fell slightly. The selling
picked up steam early Thursday as renewed concerns about Europe's debt crisis
offset any positive impact of falling oil prices.
In recent trading, the Dow and S&P were down about 1.3% each while the Nasdaq
was off 1.5%.
Such lackluster action is likely to continue in the near term, followed by

something much worse for the bulls, according to cycle watcher Charles Nenner
of the Charles Nenner Research Center.
"I think it's a bit late to go long," Nenner says, suggesting investors should not
expect much more upside from stocks. For the near-term, Nenner expects the
market to remain within a trading range between 1307 and 1356 on the S&P 500.
(The S&P fell below 1307 early Thursday; a close below that level would mean
"big trouble," Nenner says in the accompanying video, taped Wednesday
afternoon.)
"We don't intend to go short right now," he says...with "right now" being the
operative term.
Looking further out, Nenner is sticking with a forecast of "Dow 5000" over the
next three years, a call based partially on his view that deflation remains the
primary threat, not inflation. (See: Deflationary Hurricane Will Slam Into U.S.
Economy, Charles Nenner Says)
"I would challenge people: ‘how do you get to inflation?'," he says, suggesting
wage pressures are the key determinant, not food or energy prices or even Fed
policy. "What's clear is that wage demands lead to inflation; people want higher
wages and then you get an upside spiral," Nenner says. "People are still happy
they have a job, so I don't see any wage inflation, so it means there's no inflation"
-- at least not in Europe and the U.S.
The Price of Prognostication
A former market-timing consultant at Goldman Sachs, Nenner has been lauded

here and other venues for some of his prescient calls in recent years, most
notably:
• -- Forecasting a Dow peak of 14,500 in the summer of 2006.

• -- Predicting a "substantial drop" in housing in Aug. 2006.
• -- Calling the market top in October 2007.
• -- Forecasting in late 2007 a "deflation scare" would occur in 2008.
• -- In February 2009, predicted a major rally would start "in a few weeks" and
could take the S&P as high as 1000.
But Nenner has had his share of clunkers too, including a forecast here that 2010
would be a grim year for both the economy and the markets. In April 2008 on
CNBC, he was bullish about the second half of the year and predicted a return to
old highs.
Hopefully Nenner's "Dow 5000" call will be similarly misplaced.
I point out these gaffes not to embarrass or make fun, but to remind viewers that
to err is human and everything you see/hear should be taken with a grain of
salt...assuming you're not already.
Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or
email him at altask@yahoo.com’
US Stocks - Is Japan Speeding up the Inevitable? Maierhofer, ‘Japan's Nikkei 225

is down 16% since its February 16 secondary high. Reuters reports that 'Wall
Street Dives on Impact of Japan Disaster.' However, Japan's stock market
(NYSEArca: EWJ - News) topped before the earthquake, as did the major U.S.
Indexes.Is the Japan shock merely speeding up the inevitable or could the bad
news actually be part of a bullish 'wall of worry?'Featured below is an article from
February 11. At the time the S&P was trading at 1,330. Even though a few weeks
old it provides information investors can use to gauge the current down side risk.
Updated support levels are provided at the end:
February 11, 2011:If it's too obvious, it's obviously wrong. More often than not,
this proverbial Wall Street adage has the last laugh. What's the prevailing consent
on Wall Street? What's suspiciously obvious today?
- The Fed is here to help. As long as there's QE2 (or QE3, 4, etc,) prices will go up.
- January was positive. As January goes, so goes the year.
- This is the third year of the Presidential Election Year Cycle. There hasn't been a
negative third year since 1939.
- There's no catalyst to send stocks higher.
While Wall Street analysts are trying to one up each other's positive forecasts, the
Fear Index, VIX has fallen to a 3 year low. The last time the VIX was at a similar
level was in April 2010, just before a literally fear-inspiring 17% correction and the
May 'Flash Crash' (see chart below).The ETF Profit Strategy Newsletter didn't
subscribe to the prevailing optimism in April 2010 and warned that: 'The message
conveyed by the composite bullishness is unmistakably bearish. The pieces are
in place for a major decline.'Does that mean that the bottom will fall out again
within a matter of days? Not necessarily, but now is certainly not the time to be
married to your holdings. Tight sell stops are warranted because any minor
correction could turn into a large one. Why?
New Bull Market, or Mother of all Bear Market Rallies?
The devil's in the long-term trend. If we are in a new bull market, any dip would
present a buying opportunity. If we are in the mother of all bear market rallies,
every rally is a trap and represents a selling opportunity.How can one determine
whether we are in a new bull market, or a bear market rally? [chart]It's said that
bull markets climb a wall of worry. No doubt there was extreme pessimism
surrounding the March 2009 lows. That's one of the reasons the ETF Profit
Strategy Newsletter sent out a strong buy signal on March 2, 2009.But pessimism
at the bottom doesn't equal a wall of worry. In fact, following the initial bout of
disbelief, investors embraced the rally rather quickly. In late 2009, sentiment
readings became frothy, in January 2010 they rivaled 2007 extremes (stocks fell
9%), and in April 2010 they exceeded 2007 extremes (stocks fell 17%).About two
thirds of the rally from the 2009 lows was accompanied by optimism. This is no
wall of worry.
Glass Half Full Outlook
Think about it, even the truly big problems - unemployment and falling real estate
prices - were sugar coated from the very beginning. The unemployment problem
was charmingly called 'jobless recovery' and falling real estate prices were simply
ignored.The Case-Shiller home price index is down four months in a row, but
nobody is bothered. A few days ago, MarketWatch ran an article: '10 reasons to
be bullish on housing.'Courtesy of the continuing real estate conundrum, the
FDIC closed 157 banks in 2010, and 14 thus far in 2011. According to a Wall Street
Journal article, the top 10 U.S. owned banks had $13.8 billion in unrealized
losses.Those are not reflected in earnings numbers as long as financial
institutions (NYSEArca: XLF - News) believe the investment will later rebound.
Guess what? Banks are pretty darn sure prices will reclaim their 2006 all-time
highs.In addition to the $13.8 billion in unrealized losses, the top 10 U.S. banks
owned $360.7 billion in illiquid, hard to value assets (called level 3 assets). While
paper earnings appear solid, it appears as if banks are hiding skeletons in their
closets. But who cares, stocks (NYSEArca: VTI - News) are up.
Anomaly Explained
Ben Bernanke has openly admitted that asset inflation, or the wealth effect from
rising stock prices, is the objective of QE2. Obviously, the money flow from the
Federal Reserve over banks into the stock market has been the driving force
behind this monster rally.Much of the Fed money has been funneled into
commodities. Since QE2, net speculative positions in wheat and copper have
doubled, oil soared 115%, soybeans 40% and corn 15%. Rising commodity prices
(NYSEArca: DBC - News) are putting the squeeze on lower income Americans and
will eventually lower profit margins for the materials sector (NYSEArca: XLB -
News).It's quite likely that this ripple effect will spill over into the retail
(NYSEArca: XRT - News), technology (NYSEArca: XLK - News), and consumer
discretionary sector (NYSEArca: XLY - News). From there it's just a matter of time
until it hits the broader Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq (Nasdaq:
ÎXIC).Contrary to its objective, QE2 has also sent interest rates soaring. Higher
interest rates tend to encourage the money to flow from equities into bonds.
Higher interest rates put pressure on bond and stock prices alike...’
Stocks Rattled by One-Two Punch: Dave's Daily ‘Everything was going along just
fine for markets even absorbing Tunisia and Egypt well. But then the contagion
continued to Libya, Bahrain, Yemen, Kuwait and so forth. This pushed energy
prices higher. Further, even though these MENA [Middle East and North Africa]
events may ease, you can rest assured they'll resurface and overhang markets for
awhile. The next punch was delivered by Japan's earthquake, tsunami and
nuclear reactor issues. Japan, being the world's third largest economy, may be in
trouble for some unknown period. There will be massive infrastructure spending
down the road (emphasis added) which should provide strong demand for
building materials (lumber, base metals and so forth). For now, the economy will
get a heavy dose of cash from Japan's central bank and this will require
enormous debt sales driving yields higher theoretically. Since Japan is a large
exporter of stuff to the world, prices for finished products may rise causing more
inflation. Commodity prices remained mixed with softs and base metals weak
while energy, gold and rice were higher overall. Bonds rallied while the dollar fell.
The Fed is busy is POMO activities oblivious to external conditions. Here's their
schedule for March and April. Stocks were sold with some late day buying lifting
major averages off their lows. Volume continues to rise on selling but with an
afternoon "stick save" much of this was positive. Breadth per the WSJ was once
again negative.’
Investment Implications of a Nuclear Meltdown in Japan Ciovacco ‘The concerns

continue to mount after Japan’s devastating earthquake and subsequent tsunami,
which may further heighten recent anxiety in the financial markets (DIA). An
explosion near the No. 1 reactor at the Fukushima Dai-Ichi nuclear power station
has industry experts talking about the possibility of a meltdown.
According to Bloomberg:
If the fuel rods are melting and this continues, a reactor meltdown is
possible,” Kakizaki said. A meltdown refers to a heat buildup in the
core of such intensity it melts the floor of the reactor containment
housing. “If they cannot get the nuclear reactor back under control
during the day, this may end up being the biggest problem of all,”
said Ken Courtis, former vice chairman of Goldman Sachs Group
Inc. in Asia. “A meltdown, which would cause massive immediate
damage, would also set the nuclear industry back decades. This
would have vast implications for the global energy equation and
perforce the world economy.
Japanese Chief Cabinet Secretary Yukio Edano said at a press conference that
the blast didn’t damage the reactor container, only the structure outside it, and
that there was no major radiation leakage with the explosion. The nuclear
reactors are about 150 miles north of Tokyo. New reports in Japan have indicated
the radioactivity at the site was rising to 20 times normal levels. [chart]
We would expect the nuclear energy ETF (NLR) to struggle next week. From an
investment perspective, we would avoid NLR in the short-term due to the
uncertainties in Japan. If we owned NLR (we do not), we would consider selling
some of the position with a close below 24.74, and cutting back even further with
a close below 23.18.
“If the water level remains at this level, the reactor core might be damaged, but
we are now pouring water into the reactor to prevent it from happening,” Dow
Jones Newswires quoted a Tepco spokesman as saying.
According to Wikipedia, a nuclear meltdown:
• Occurs when a severe failure of a nuclear power plant system prevents

proper cooling of the reactor core, to the extent that the nuclear fuel
assemblies overheat and melt. A meltdown is considered very serious
because of the potential that radioactive materials could be released into
the environment. A core meltdown will also render the reactor unusable
until and unless it is repaired.
• Within the former Soviet Union several nuclear meltdowns of differing
severity have occurred. In the most serious example, the Chernobyl
disaster, design flaws and operator negligence led to a power excursion
that subsequently caused a meltdown.
• A core damage accident is caused by the loss of sufficient cooling for the
nuclear fuel within the reactor core. The reason may be one of several
factors, including a loss of pressure control accident, a loss of coolant
accident (LOCA), an uncontrolled power excursion, or in some types, a fire
within the reactor core…’
EU leaders reach deal on debt crisis London Telegraph | European leaders

reached agreement early this morning.
‘Anonymous’ to Release Docs Proving Bank of America Fraud Zero Hedge |

Hacker collective to leak proof that Assange previously threatened to release.
Are the prophets of doom right? The American Dream | Major Middle East war?
Oil at $200/barrel? Gold at $2000?
Foreclosure activity declines as lenders review legal procedures North Jersey |

Did foreclosures drop 27% because banks being blamed for robo-signing
scandal?
Insured losses from Japan quake could hit $35 billion Reuters | Last week’s
earthquake in Japan could lead to insured losses of nearly $35 billion.
EU leaders reach deal on debt crisis London Telegraph | European leaders

reached agreement early this morning.
Japan and Otherwise: World Markets Decline
Hacker Group Anonymous Brings Peaceful Revolution To America: Will Engage

In Civil Disobedience Until Bernanke Steps Down The goal – engage in “a
relentless campaign of non-violent, peaceful, civil disobedience” until Ben
Bernanke steps down.
Hacker Collective Anonymous To Release Documents Proving Bank Of America

Committed Fraud This Monday After Julian Assange crashed and burned in his
threat to release documents that expose fraud at Bank of America, many thought
he had been only bluffing, and that BofA is actually clean. Not so fast. The Rule
of Gold After The Financial Collapse Activist Post | In a secular world, the
operative “Golden Rule” is “He Who Has the Gold Makes the Rules”.
Nikkei Plunges As Quake Sparks Sell-Off Nikkei | Tokyo stocks plunged Monday,
with investors selling to avert financial risks over the devastating earthquake.
Has The Tsunami In Japan Destroyed The Japanese Economy? So what is this
disaster going to do to the 3rd largest economy in the world? Japan already
had a national debt that was well over 200 percent of GDP. Could this be the
“tipping point” that pushes the Japanese economy over the edge and into
oblivion?
Will The Japanese Earthquake Be The Straw That Breaks Europe’s Back? If an
earthquake flips its wings in Japan, does the Eurozone go bankrupt,
especially in the month when its most insolvent countries face billions in
debt rollover requirements, tens of billions in maturity funding needs, even
more in deficit funding requirements… and no cash?
Update: Make That 15 Trillion; BOJ Raises Liquidity Injection To JPY12 Trillion
($146 Billion) Total reactionary panic everywhere now as the BOJ hikes the
liquidity injection from 2 to 7 to 12 trillion yen.
The Fed Fails to Create the Stability it Dreams Of Wall Street at least temporarily
relieved of the burden of having to buy Treasuries & Agency bonds, is
looking at the jump in oil prices as nothing more than an irritant to their
plans for a higher market. Bill Dudley of the NY Fed, a most powerful
member, continues to make a vigorous defense of Federal Reserve policies.
Tokyo stocks drop 5% in first opening since quake Tokyo shares fell 5.2 percent
on Monday in their first opening since Friday, when Japan was struck by the
biggest earthquake in its history and a devastating tsunami.
Store shelves empty in Tokyo as uncertainty reigns Commuters and residents of

the Japanese capital faced confusion and uncertainty on Monday over the
supply of food and energy after Friday’s devastating quake and tsunami
which crippled a nuclear power plant.
The Rule of Gold After The Financial Collapse Activist Post | In a secular world,
the operative “Golden Rule” is “He Who Has the Gold Makes the Rules”.
Nikkei Plunges As Quake Sparks Sell-Off Nikkei | Tokyo stocks plunged Monday,
with investors selling to avert financial risks over the devastating earthquake.
Japan Worries Keep Stocks in the Red Midnight Trader ‘ 4:15 PM, Mar 14, 2011 --
• DJIA down 51.24 (-0.43%) to 11,993.16

• S&P 500 down 7.89 (-0.60%) to 1,296.39
• Nasdaq down 14.64 (-0.54%) to 2,700.97
GLOBAL SENTIMENT
• Hang Seng up 0.41%
• FTSE down 1%
National / World
10K dead in Japan amid fears of nuclear meltdowns (AP) AP - The estimated
death toll from Japan's disasters climbed past 10,000 Sunday as authorities raced
to combat the threat of multiple nuclear reactor meltdowns and hundreds of
thousands of people struggled to find food and water. The prime minister said it
was the nation's worst crisis since World War II.
Third Reactor Explodes, Full Scale Nuclear Catastrophe Imminent Kurt Nimmo |
Effort to cool reactor with seawater a failure.
Experts fear 3rd reactor explosion Aaron Dykes | A third explosion at the
Fukushima plant may be imminent.
CIA Sends USAID to Japan to Manage Nuclear Disinfo Campaign Kurt Nimmo |
Cover-up of the extent and severity of Japan’s multiple nuclear meltdowns is
now underway.
Cover Up Of Fukushima Chain Reaction Underway Paul Joseph Watson & Steve
Watson | True scale of nuclear crisis suppressed by Japanese authorities,
aided by castrated and slavish mass media.
Tracking Page: Japan’s Nuclear Meltdown, Aftershocks & Fallout Infowars |

Following Japan’s nuclear plant emergency with the latest updates.
Fuel rod fire at Fukushima reactor “would be like Chernobyl on steroids” Kirk
James Murphy | Chernobyl’s contamination settled upon people and nations
thousands of miles from that reactor’s location.
Tokyo nuke cloud crisis The Sun | Japan teeters on brink of nuclear catastrophe
amid fears a radioactive cloud could envelop Tokyo’s 13 million residents.
Evacuation zone widening; 300,000 homeless crowd shelters Daily Mail | Fears of
second explosion at quake-hit N-plant as exclusion zone stretches to 13 miles.
Radiation From Fukushima Would Take 7 Days To Reach U.S. Radioactive

particles from the stricken Fukushima nuclear facility would take around a
week to reach Alaska and eleven days to reach Los Angeles, according to an
Accuweather.com analysis, which highlights the fact that prevailing winds
over the region would send any potential fallout from the crisis-hit plant
drifting towards west coast cities in the United States.
Nuclear Expert: Radiation Could Spread To US West Coast Nuclear expert Joe
Cirincione warns that radiation from Japan’s multiple potential nuclear
meltdowns could spread to the US west coast and that the threat represents
an “unprecedented crisis,” as another explosion rocked the Fukushima
complex and officials admitted that nuclear fuel rods at reactor number two
have been fully exposed.
Japan’s nightmare gets even WORSE: All THREE damaged nuclear reactors now
in ‘meltdown’ at tsunami-hit power station The Japanese nuclear reactor hit
by the tsunami went into ‘meltdown’ today, as officials admitted that fuel
rods appear to be melting inside three damaged reactors.
Japanese death toll to far exceed 10,000 The death toll from the Japanese
earthquake and tsunami is expected to exceed 10,000 as local and
international rescue teams search through the ruins of north-eastern coastal
cities for survivors of last Friday’s disaster.
TIME: Everything’s Tracked- Get Over It Aaron Dykes | In an astounding cover
story,’ TIME tells readers to “get over” ubiquitous tracking.
Nuclear Plant Designer Says Japanese Government Suppressing Scale Of Crisis

BBC News | A former nuclear plant designer has said Japan is suppressing
vital info on the grave crisis. A former nuclear power plant designer has said
Japan is facing an extremely grave crisis and called on the government to
release more information, which he said was being suppressed. Masashi
Goto told a news conference in Tokyo that one of the reactors at the
Fukushima-Daiichi plant was “highly unstable”, and that if there was a
meltdown the “consequences would be tremendous”.
Volcano in southern Japan erupts LA Times | A volcano in southern Japan began

spewing ash even as the country struggled to recover from the catastrophic
earthquake and tsunami.
U.S. West Coast in Path of Fallout Washington’s Blog | California is closely

monitoring efforts to contain leaks from a quake-damaged Japanese nuclear
plant.
Japan Fears Second Reactor Blast There is a risk of a second explosion at the
quake-hit Fukushima power station, Japanese officials have said. However,
chief cabinet secretary Yukio Edano said the facility could withstand the
impact and the nuclear reactor itself would not be damaged.
U.S. West Coast in Path of Fallout “At present there is no danger to California.
However we are monitoring the situation closely in conjunction with our
federal partners,” Michael Sicilia, spokesman for California Department of
Public Health, told AFP.
Radiation Increases as Cooling Systems Fail at Fukushima Plant in Japan

Japanese officials battling to prevent a potential meltdown at a nuclear
power station said an explosion was possible at a second reactor building
after the plant’s cooling system failed.
Cooling at Sixth Reactor Fails Tokyo Electric Power Co. said Sunday another
reactor of its quake-hit Fukushima nuclear power plants had lost its cooling
functions, while at least 15 people at a nearby hospital were found to have
been exposed to radioactivity.
Featured Stories archive
Japanese Nuclear Meltdown Confirmed Infowars.com | As we accurately reported,

the explosion at the Fukushima nuclear plant was the result of a nuclear
meltdown of the reactor core.
Media Coverup of Massive Chernobyl Event Underway in Japan Kurt Nimmo |

Media in Japan is not reporting this fact in order to prevent mass hysteria.
Piers Corbyn: Massive Japan Earthquake & Tsunami Were Triggered by Solar
Action The Alex Jones Channel | Meteorologist and astrophysicist Piers
Corbyn, talks with Alex about the Japanese tsunami.
US Contracting Tech Firms for Revolutions Tony Cartalucci | US shamelessly

admitting to funding Middle East revolutions

afternoon... ] Weekly Standard | “Mr. Obama has told people that it would be
so much easier to be the president of China.”
Drudgereport: SIXTH NUKE REACTOR FAILS

MELTDOWN ALERT...
Firefighters battle blaze at reactor...
Rods fully exposed for 2.5 hours...
Higher radiation recorded north of Tokyo...
RACE TO SAVE THE REACTORS...
Japan Asks USA To Help...
WRAP...
BBC LIVE... REUTERS LIVE... KYODO WIRE...
QUAKE MAPS, DETAILS...
FLASH: Nikkei Stock Market Falls Another 6%...
PM Kan asks public to act calmly...
Confusion from deadly quake spreading...
Emergency Cooling Effort at Reactor Failing...
'UNSTABLE'...
Crisis 'Uncharted Territory'...
Up to 160 exposed to radiation...
Japan battles nuclear meltdown...
Biggest Crisis Since WWII...
Races to avert multiple reactor failures...
Injecting seawater at Fukushima...
Another hydrogen explosion possible...
Evacuation zones widened -- again...
NUKE DESIGNER: Gov't suppressing info...
BBC LIVE... REUTERS LIVE... KYODO WIRE...
QUAKE MAPS, DETAILS...
USA West Coast in Path of 'Fallout'?
190 EXPOSED TO RADIATION IN MELTDOWN OF REACTOR NO. 1...
Thousands scanned...
200,000 Evacuated...
US EXPERTS: Pumping seawater into reactors 'act of desperation'...
'May foreshadow Chernobyl-like disaster'...
GE-designed reactors in Fukushima have 23 sisters in USA...
IS THE WORST STILL TO COME?
THOUSANDS SCANNED...
140,000 Evacuated...
ADMIT: Officials say radiation levels rise above limit...
Third explosion raises spectre of nuclear nightmare...
USA West Coast in Path of 'Fallout'?
Winds Should Send Radiation Out to Sea...
Run on iodine tablets -- in Finland...
German airline scans Japan flights for radioactivity...
17 U.S. Navy crew members contaminated...
HOPE: Pumping seawater into hot, leaking reactor...
'We're told not to breathe the air -- it's scary'...
GOV'T: Releasing radioactive steam from another reactor...
SAFETY BOARD: Meltdown occurred...
Core of Fuku 1 partially melted; race on to cool...
Japanese officials: 'Nuclear catastrophe averted'...
Say steel container housing reactor undamaged...
Japan to IAEA: Report radiation levels dropping...
REPORT: Nearly 10,000 people missing from town of 17,000...
KYODO: Death tops 2,000...
Military finds 300-400 bodies in one coastal city...
UPDATE: Four trains missing...
Northeast Japan 'a wasteland'...
'Devastation and despair'...
MAPS, DETAILS...
BBC LIVE...
REUTERS LIVE
KYODO WIRE...
City Lowers Police Testing Standards Because Not Enough Blacks Passed...
Under pressure from Obama administration...
Illinois mayor says Obama still owes city $55,457...
Obama to party with Washington reporters...
Golf in the afternoon...
Milbank: King's red scare (Washington Post) [ It truly is difficult for me to imagine
being on the same page as Mr. Milbank on virtually any topic at all; and, yet
here I am, on the same page agreeing with him with what has already
occurred to me in thinking about the mccarthyish way of political
opportunist for his zionist district politics, neocon peter king. It is important
to distinguish the ‘anti-communist’ tenor of mccarthy’s day, communism
being in my view a very real threat in light of my own staunch opposition to
communism, the ultimate ‘b*** s***’ political doctrine / social organization
whereby everybody is purportedly equal, yet some bureaucrats / party
members were far more equal in every way than others. Yet, pervasively
corrupt / defacto bankrupt america (Batista’s cuba is an example on smaller
scale) has become a poster-child for the failure of capitalism (though
capitalism is but a fading memory for america in favor of the corrupt
bureaucratic morass it’s become) with totalitarian communist china the
greatest beneficiary though it’s capitalism that has garnered china
enormous success. The irony of it all. While the communist threat was all
too real, from the beginning (upon the long overdue fall of communism),
there was a void sought to be filled by the military industrial complex,
neocons, zionists, war profiteers, etc., literally ‘militants without a cause’. A
sad reality that’s all too real. ]
NATO endorses plan for Afghan forces to take over several areas (Washington
Post) [ Yeah! Sounds like a plan … if the several areas encompass the entire
nation; and, nato quits their foolishness in wasting money they don’t have
for the sake of the military industrial complex, war profiteers, thieves, and
(nato) heroin dealers. ]
Major changes ahead for U.S. mortgage system (Washington Post) [ Duh! Ya
think? … How ‘bout major changes to the entire pervasively corrupt, defacto
bankrupt u.s. (illegal) system, long overdue … SEC chief: Becker should not
have worked on Madoff fallout (Washington Post) [ Oh come on! Everyone
now knows here and abroad that capital hill is just an incestuous, nepotic
morass of venal, greedy, corrupt incompetents who do or don’t do whatever
is necessary to further their personal financial interests, including bribes
both direct and indirect, now or later. Between goldman’s / citi’s rubin, and
paulsen, and etc., etc., they’ve pillaged the treasury and aided / abetted /
covered up a still extant fraud. Now those who can, do; those who can’t,
work for the u.s. government. Who’s the head of enforcement? A goldman
man of course. Madoff? House Republicans press SEC on official's ties to
Madoff (Washington Post) [ The ultimate subterfuge. Mr. small potatoes
madoff the focus of so much influence … yet he’s in jail … and the only one
… Boy, did mary shapiro become total b*** s*** fast … the current shibboleth
of capital hill / all 3 branches of pervasively corrupt u.s. government …
joining the others: “The Financial Industry Has Become So Politically
Powerful That It Is Able To Inhibit the Normal Process of Justice And Law
Enforcement” The economy cannot stabilize unless fraud is prosecuted. But
the folks in D.C. seem determined to turn a blind eye to Wall Street
shenanigans, and is now moving to defund the enforcement agencies like
the SEC and CFTC. Market Crash 2011: It Will Hit by Christmas Farrell,
MarketWatch SAN LUIS OBISPO, Calif. (MarketWatch) — ‘Politicians lie.
Bankers lie. Yes, they’re liars. But they’re not bad, it’s in their genes,
inherited. Their brains are wired that way, warn scientists. Like addicts, they
can’t help themselves. They want to sell stuff, get rich…’ Financialization
and Our Increasingly Unstable Economy Roche ‘I finally got around to
seeing the movie Inside Job, the story behind the credit crisis and winner of
the Academy Award for best documentary. It’s very good and I highly
movie doesn’t place nearly enough blame on homeowners, but all in all it
does an excellent job of showing how Wall Street and government have
become overrun by deregulation and sheer greed. A combination of flawed
economic theory and greed have combined to create the beast that we now
call a “functioning” economy. The worst part of it all is that President
Obama, who vowed change, has done almost nothing to fix any of it and in
fact continues most of the policies that helped get us here in the first place.
…’ ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the
unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds
on wall street ( and declares with oscar in hand that not one high level wall
street exec has been prosecuted … despite ‘earning’ billiions from the
fraud ), the commentator / experts recommend getting rid of the corrupt eric
holder ( now what do holder and wobama have in common … is it wall street
money ………… is it a proclivity for jive-talking / b*** s*** ………all of the
above, some of the above ……….. or is it something else …… here’s a hint -
UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE... CIVIL RIGHTS
PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ‘In emotional
and personal testimony, an ex-Justice official who quit over the handling of
a voter intimidation case against the New Black Panther Party accused his

[45mb ]
] Former general counsel inherited part of a Bernard Madoff account.
which in one form or another are rampant . I don’t know about Thomas ( 3-4-11
Throw Clarence Thomas Off the Bench (The Daily Beast) ) , but I do know about
alito and ‘jersey … :

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)

instant video from Stansberry and Associates is so well researched and
succinctly presented that I’ve archived same on my website; also, because the
facts and views presented comport with the facts and views I’ve presented on my
site which I believe to be correct. This is a must-view, must-see that I strongly
recommend!
( 146mb – approx. 1 hr. 17 min. )
] Higher down payments could be demanded by lenders, and the availability of

long-term mortgages with fixed interest rates could be curtailed.
Disaster in Japan threatens recession recovery (Washington Post) [ Recovery? …

Dreamin’ … and, we’re way past the ‘straw broke the camel’s back’ … we’re really
talkin’ about final nails in the coffin … This is the grim economic reality [
http://albertpeia.com/grimreality.htm ]. This manipulated bubble in this secular
bear market based on b*** s*** alone is an especially great opportunity to sell /
take profits while you can since there's much worse to come! What Can the
Great Depression Teach Us About Our Great Recession? Chartprophet ‘Is the
massive market rally of the past two years just a temporary recovery that has
tricked many investors to jump back into stocks right before the next plunge?
And how can the Great Depression reveal what may happen to the markets this
year, almost 80 years later?As we enter the third year of what has been a very
impressive "bull" market, many are left wondering whether this incredible run of
as much as 100 percent on the S&P 500 can continue - and for how long. Yet
while the economy seems to have rebounded very strongly off of its early 2009
lows, accompanied by improving fundamentals, increased company earnings,
and a more optimistic consumer, many investors fail to at least consider the
thought that this entire "recovery" could, in fact, be just an extreme overreaction
to the 2008 market crash. In other words, the huge rally we have seen in the
global stock markets since early 2009 could be just a temporary recovery and
pause before the next - and possibly worse - market decline.
It was less than a year ago that the fear of an economic "double dip" - a plunge
back down to recession - intensely gripped the markets. The "flash crash", BP oil
spill, European troubles, high unemployment, and potential derailment of the
economy all posed a severe threat to the viability of our recovery. Yet while many
parts of the economy seem to have been improving, there are still so many issues
surfacing daily that most of the world is basically ignoring. I am not saying that
all these issues are guaranteed to pull us back into recession, but with such a
huge rebound in stocks accompanied by so many potential derailers, it may not
be so far-fetched to at least consider the possibilities of the tremendous
upcoming turmoil.
The issues now: huge government debt, credit crisis, European troubles, high
insider selling, Middle East turmoil, surging oil prices that threaten to hurt the
economy, soaring commodity prices, surfacing inflation, uncertainty about the
Fed's QE2 and QE3, billions of dollars of toxic assets on the balance sheets of
many banks, emerging market weakness since the end of 2010, real estate
bubbles from China to Singapore, rationalization of fundamentals and a strong
complacency that things will continue to be just as positive as they have been, a
very slowly-improving unemployment picture, and perhaps one of the most
telling points - the average investor is finally getting back in, and maybe right at
the end of the rally.
So why should investors at least consider the possibility of a "double dip"? What
are the potential scenarios if this tremendous market rally was, in fact, a "fool's
rally"? And what can the Great Depression teach us about our current situation?
First, we must understand what a "fool's rally" is:
Otherwise known as a "Dead Dog Bounce," the fool's rally is a corrective bounce
or temporary rebound that follows a severe decline in an individual stock or
broader market. Following a severe decline, stocks and markets can sometimes
see sharp bounces off of the lows as a rapid overreaction to the downside is
followed by an overreactive bounce to the upside. In other words, a market
crashes quickly and sharply but rebounds temporarily as much of the bad news
takes some time to fully sink in.
This phenomenon is has been termed the "Dead Dog Bounce," based on the
statement that "even a dead dog will bounce" if dropped from high enough.
Here's an image of what this looks like:
[picture]
The Dead Dog Bounce is just a temporary recovery, however. The scenario is as
follows: 1) the market drops sharply; 2) after an extreme downturn, the market
recovers as some investors buy up what they consider to be "value"; 3) the
market cannot make it all the way back up to where it started its down move,
however, because the economy is nowhere near as healthy as it was; 4) the
investors who have pulled their money out of the stock market or who have
missed the recovery now jump back in, thinking the market is going back up; 5)
since this has been a dead dog bounce, and therefore just a corrective rebound
before the dead dog falls back down, many investors were tricked into thinking
the recovery was underway - but the market enters the next phase of decline or
recession. A double dip takes place.
Think of a tennis ball dropped from the top of a building: as it drops, it gains
momentum, hits the ground, and bounces up - but the bounce can not be as high
as its original point. And following that bounce, it will ultimately be pulled back
down by gravity. So too the Dead Dog Bounce - the market drops from above,
falls sharply, hits the "ground," bounces back up (but not as high), and ultimately
falls back down.
[picture]
I bring the Great Depression up because it is one of the best examples of a Dead
Dog Bounce. We often think of the Crash of 1929 as the biggest event of the Great
Depression, and perhaps also consider it to be the biggest drop in the market.
But that actually wasn't the case.
Here's how the Dead Dog Bounce played out in the Great Depression:
click to enlarge
[chart]
Following 17 years of sideways movement beginning, the market finally
embarked on an uptrend from 1921 to the ultimate peak of 1929.
Compare the above chart to what we have recently seen in our market:
[chart]
Like the Dow from 1904 to 1921, the Dow of 1960 to 1983 was also stuck in a long
sideways trend. It eventually broke out above the 1,000 level in 1983 and began
one of the greatest bull markets we have ever seen. Like the 1929 top before the
Great Depression, the 2007 peak marked the top before the Great Recession we
find ourselves in. The two charts above look eerily similar, and make dismissing
the relationship between the Great Depression and Great Recession almost a
fool's move.
Now take a look at the 1929 stock market crash:
[chart]
After reaching a peak of 380+, the Dow tumbled to under 200 as the Crash of 1929
sent markets into a free-fall. Following the Crash, a Dead Dog Bounce took place -
raising the market approximately 50 percent.
Compare the 1929-1930 Crash-Dead Dog Bounce scenario with what we have just
seen:
[chart]
After a bull market from 2003 to the end of 2007, the Dow reached a peak of over
14,000. As the housing market collapsed, so did the stock market - sending the
Dow below 6,500. As in the Dow of 1929-1930, a potential Dead Dog Bounce has
followed since 2009 and continues until today.
The question remains - what followed the Dead Dog Bounce of 1929-1930, and
will our market follow the same course?
Here's how it played out in 1930:

[chart]
The Crash of 1929 was almost negligible in comparison to the Great Depression
that followed. The Crash sent the Dow tumbling from 380 to 200, and was
followed by a Dead Dog Bounce which recovered over 50 percent of the Crash;
but the real damage was done beginning in April 1930 and lasting until late 1932 -
where the Dow toppled from nearly 300 to less than 50 - a loss of over 83 percent.
The Dead Dog Bounce in 1929 and 1930 was just a corrective overreaction to the
steep plunge that the Crash of 1929 brought to the market. But as we can see, the
Crash and the ensuing bounce were nothing compared to the huge drop that
followed and carried through until the end of the Great Depression.
We now find ourselves in perhaps a similar situation - a market that saw a very
impressive bull run for years, and reached a lofty top followed by a severe
downturn in 2008 and early 2009. It has since shown signs of improving, and
many investors and economists are optimistic for the future - thinking the worst
is behind us. But with so many negative and potentially devastating issues
constantly surfacing, are we just in the middle of a Dead Dog Bounce before
reality sets in and the market plunges back down into recession? I do not yet
know the answer to that question. But with the very strong similarities between
our market and that of the Great Depression, it would be very wise to at least pay
attention.
[picture]
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate

any positions within the next 72 hours.’
] The earthquake and tsunami in Japan struck an area that
accounts for only a small fraction of the country's
economic activity, but damage could still run into the
tens of billions of dollars.
Japan reeling after quake (Washington Post) [ Japan reeling, wall street rallying?
… What’s wrong that picture? … Hello! … earth to wall street, reality calling
… Can’t be good for oil prices, or the debt market (for u.s.) for starters …
Who, Besides Ben Bernanke, Wants to Buy (u.s.) Bonds? [ Well, PIMCO just
voted with their feet (they’re out of them) … Japansunami will preclude same
(note: despite the dire implications for defacto bankrupt america owing to
their costly reconstruction preoccupation … market suckers’ rally anyway to
keep investors suckered and from getting any rational selling ideas over the
weakend … you can do such things, especially into the close, with those
computerized high frequency trade programs which are great for generating
commissions from the old ‘in-out, in-out’, and then some … these days like
last crash / crisis are made for such frauds.) … don’t go looking to china to
take more baths, especially with that recent trade deficit of theirs. The
answer is no-one! And, one can begin to see the fed’s reluctance to alow
proper scrutiny of their books; beyond their complicity in the massive wall
street frauds, cashed out with their help, there’s the worthless ‘paper on
paper’ debacle just around the corner. ] A bulldozing tsunami leaves the
country bracing for an epic humanitarian disaster.

you agree…’
was off 1.5%.

afternoon.)
operative term.

notably:

old highs.
Stocks for Brave Adults Only: Dave's Daily ‘Stock rallied in the afternoon led by
oversold conditions and that's about it. You could argue those that could lifted
some indexes over the breached 50-day moving average. But, with the NYMO at a
-70 reading yesterday markets became quickly short-term oversold. Now many
wondered with the catastrophe in Japan, U.S. stocks should not have risen. This
is understandable and I got a lot of mail about this, but perversely, it may have
been more important the Saudi Day of Rage was a nonevent--just ask Prince
Alwaleed. Moreover, imagine the amount of reconstruction spending that follows
these disasters. Bulls also felt the poor data Friday might lead to more QE from
the Uncle Sugar. Markets can often be hard to understand and be hard-hearted at
the same time. Retail Sales were okay but you have to wonder about it as "old
news" while Michigan Consumer Sentiment dropped substantially. My favorite
Fed official, William "have some Kool Aid" Dudley, got trashed as he tried to
explain the "no inflation meme" to a crowd in Queens. It's pretty hilarious how he
was called out…’
Modest Stock Gains During Friday Trading, But Losses for Week Midnight
Trader ‘4:08 PM, Mar 11, 2011 -
• NYSE up 55.56 (+0.7%) to 8,255.63

• DJIA up 59.79 (+0.5%) to 12,044
• S&P 500 up 9.17 (+0.7%) to 1,304
• Nasdaq up 14.59 (+0.5%) to 2,716
GLOBAL SENTIMENT

• FTSE down 0.28%
Sneaky Banks to Lay Foundation for Their Own Collapse
Welfare State: Handouts Make Up One-Third of U.S. Wages CNBC | Government

payouts make up more than a third of total wages and salaries of the U.S.
population.
Will The Japanese Earthquake Be The Straw That Breaks Europe’s Back? Zero
Hedge | Japan will have no choice but to launch a mini round of Quantitative
Easing. If an earthquake flips its wings in Japan, does the Eurozone go bankrupt,
especially in the month when its most insolvent countries face billions in debt
rollover requirements, tens of billions in maturity funding needs, even more in
deficit funding requirements… and no cash?
Are The Prophets Of Doom Right About Major War, $200 Oil, $2000 Gold And Dow
5000 By The End Of 2012? Are the “prophets of doom” right? Is a major war
going to erupt in the Middle East? Is the price of oil going to $200 a barrel?
Is the price of gold going to hit $2000 at some point over the next two years?
Adjusted Monetary Base: Up, Up And Away Shortly Zero Hedge will present our
quarterly analysis of the liabilities held by the shadow banking system.
National / World
Chilling Account of Big Brother Society Infowars.com | Author Mark Dice details
horrific scope of technological control grid.
Japanese Nuclear Meltdown Would Be Hundreds of Times Worse Than Chernobyl

Kurt Nimmo | Radiation levels inside Fukushima Daiichi nuclear power plant
are 1,000 times normal levels.
Justice Department: TSA Has Authority To Literally Strip Search People Steve
Watson | Naked body scanners court case underway, throws up disturbing
precedents
Global Warming Did Not Cause The Japanese Earthquake Paul Joseph Watson |
BBC reporter spouts lies about “disappearing” South Pacific island to imply
man-made climate change connection to devastating tsunami.
Videos Document Horrific Japanese Earthquake Infowars.com | The earthquake is

one of the largest ever recorded.
Japan scrambles to avert radiation crisis at nuclear plant Reuters | Thousands of

residents were evacuated from an area around a nuclear plant.
Huge tsunami kills hundreds in Japan, sweeps across Pacific Reuters | The
biggest earthquake on record to hit Japan rocked its northeast coast on Friday.
Saudi Security Forces Flood Streets to Stop ‘Day of Rage’ Mail Online | Moderate
Sunni Islamists and Shi’ite Muslims have joined forces to demand political
change.
A Perfect Storm of GMOs, Chemicals and Cancer Rady Ananda | Several books
lay out the framework for and evidence of a concerted effort to sicken and then
treat humanity, while earning obscene profits.
Guatemalans to sue US government for secretly infecting them with syphilis

Natural News | The US government deliberately infected roughly 700
Guatemalans with syphilis.
Second Japanese Nuclear Plant In Peril As Thousands Evacuated Japanese

authorities on Saturday were racing to find ways to deliver new backup
generators or batteries to a nuclear power reactor whose cooling facilities
were crippled by a loss of power caused by the deadly earthquake and
tsunami that hit Japan on Friday afternoon.
Global Warming Did Not Cause The Japanese Earthquake Just hours after the
horrific earthquake and tsunami devastated coastal areas of Japan, global
warming alarmists like the BBC are already injecting climate change
propaganda into their coverage of the story, hastily exploiting the tragedy as
a vehicle through which to push their increasingly desperate and discredited
enviro-fascist agenda.
Justice Department: TSA Has Authority To Literally Strip Search People A

government attorney has told federal appeals court judges that the
Department of Homeland Security has the authority to literally strip search
Americans inside airports if it determines that is the correct course of action
to deal with “ever-evolving threats”.
REPORT: 88,000 People Are Missing In Japan Heartbreaking: While the death toll
remains in the low hundreds right now (officially) it seems sure to spiral
much higher. According to the Kyodo News Agency, via BBC, the official
missing persons tally is around 88,000.
Ron Paul: No-fly Zone Over Libya Would be an Act of War On the House floor
Thursday, Rep. Ron Paul pointed out that imposing a so-called no-fly zone
on Libya would be illegal under international law and an act of war.
Japan Declares Nuclear Emergency After Devastating Earthquake The horrifying

consequences of the biggest earthquake to hit Japan since records began
are only just beginning to be discovered, with the tsunami that followed
causing massive devastation and engulfing cities and airports, leading to
the declaration of a nuclear emergency at the Fukushima No. 1 nuclear plant
after efforts to cool malfunctioning reactor cores failed.
Saudi King Counters Protests With $36 Billion as Tension Mounts As unrest
escalated across the Middle East, activists in Saudi Arabia demanded a
political voice as well. Rather than promises of democracy, they got a $36
billion handout and a slap down from Islamic clerics.
Nato ‘kills cousin of Afghan President Hamid Karzai’ A relative of Afghan

President Hamid Karzai has been mistakenly killed by Nato troops in
southern Afghanistan, officials say.
Drudgereport: THEGREAT QUAKE OF JAPAN... 9.1 MAG CAUSES CHAOS... BBC

LIVE... REUTERS LIVE MAPS, DETAILS... KYODO WIRE... NHK... Hundreds of
bodies found... Thousands Missing, Feared Dead... Dam breaks, washes away
homes... Agency: N American plate snapped upward... HUGE WHIRLPOOL
CREATED... Thousands roam Tokyo streets... Cruise ship, entire train missing...
Japan Rushes to Contain Damage...
'HOURS' TO PREVENT NUKE MELTDOWN
'MAY BE EXPERIENCING NUCLEAR MELTDOWN'
Quake's Magnitude Hiked to 9.1...
Japan scrambles to ease pressure building inside two nuke plants...
...TOKYO POWER says temperatures falling back to normal at Reactor #3
...Meltdown threat remains for Reactor #1
Radiation at 1000X Normal...
LEAK...
Fuel Rods May Have Been Damaged...
Fears of THREE MILE ISLAND repeat...
'No immediate health hazard,' officials say -- while evacuating 45,000...
US Amb. to Japan Warns Americans to Evacuate...
US military DID NOT provide any coolant... Earlier, Hillary Clinton said Air Force
'assets' had been used to do so...
BRUSSELS WEEKEND: Broke euro countries plead for help...
18 GOP senators in Wisc report death threats after union vote...
UNIONS THREATEN BUSINESSES...
Iowa follows suit; House passes collective bargaining bill...
Obama says 'tightening noose' on Gadhafi...
Tripoli protest stamped out...
Berlusconi: West may have miscalculated...
Police flood Saudi capital, preventing 'Day of Rage'...
Saudi police open fire at protest (Washington Post) [ Time to revoke the
saudi pass to do whatever please owing to their preposterous claim to all
the oil wealth of the entire Saudi nation. 16 miles away, Saudi Arabia's
watchful eye looms over Bahrain unrest (Washington Post) [ I’m sure they
are… with a microscope at that. Saudis Worried Protests Will Hit Home -
saudi arabia; talk about do nothing hypocrites. How does one family claim
ownership of all the oil reserves of a sovereign nation; I suspect only when
foreign corporations say so For the sake of the saudi Arabian people, more
than just protests should come to fruition! ] AFP | Saudi royal warns Arab
world uprisings could cause harm unless they reform. Bahrain authorities
launch surprise attack on protesters [There’s the america and saudi Arabia
effect; far less than democratic and far more deadly in the mideast among
other places; talk about hypocrites. How does one family claim ownership of
all the oil reserves of a sovereign nation as the saudis; time for the saudis to
go the way of dictator Mubarak and take the war criminal americans with
them. ] Los Angeles Times Tear gas canisters bombard sleeping
protesters in Manama's Pearl Square. At least two men are reported killed
Video: Bahrain protesters look to emulate Egypt revolt euronews Riot
Police Attack Bahrain Protesters Voice of America ‘Saudi Arabia sending
troops to Bahrain’ Saudi Arabia is sending troops to Bahrain in a move to
crack down on pro-democracy protesters who took to the streets in the
capital Manama, a political analyst says. [SAUDIS TOLD OBAMA 'NOT TO
HUMILIATE MUBARAK'
NATO troops kill Karzai's cousin in botched raid, Afghans say (Washington Post)
[ ‘All the right moves’. Right, right, right! Righto!…Riiiiight! Winning those
hearts and minds; or as Charlie Sheen would say … duh … winning! Whew!
U.N. alarmed by surge in civilian casualties in Afghanistan (Washington
Post) [ No, gates has already addressed that … minor setbacks, says he …
Turmoil jars U.S. counter-terror efforts (Washington Post) [ Now how does
this come as a surprise to anyone? Beyond america’s propaganda machine,
orwellian england, etc., just how do think the war crimes, invasions,
pillaging and plundering, and killing of innocent children, women, and men
by pervasively corrupt, defacto bankrupt america et als for the sake of the
u.s. military military complex are viewed by the rest of the world, and
particularly the subject region. Euphemistically but realistically speaking,
‘not good’! … Gates says killing of Afghan boys a "setback" (Reuters) [Ah,
yes, riiiiight! … that’s what it is, alright…just a setback…I see. ] Gates: US
military to stay in Afghanistan US Defense Secretary Robert Gates, who is
on a surprise visit to Afghanistan, says the American military should stay in
the conflict-riddled country despite the rising human costs. Violent spring
looming in Afghanistan (Washington Post) [ See … something to look
forward to … must be that good news that keeps getting pushed back … and
spring no less … everything bombing blooming or in war criminal american-
speak … ‘booming’ … but not the defacto bankrupt american economy for
which a crash is ‘looming’. Could somebody help me out with a translation
of gates’ speech a west point … I must be missing something … Lt. Gen.
John Kelly, who lost son to war, says U.S. largely unaware of sacrifice
(Washington Post) [ I disagree! They are very much aware; as they stand in
unemployment lines, use food stamps to get by, etc.. I hate to sound cavalier
and I’m sorry that Kelly lost a son to war, but along with the multitude of
civilians in the nations unlucky enough to provide a source of corporate
welfare to the military industrial complex and war profiteering for the few (as
warned against by President General Eisenhower), they died for nothing, for
no good reason beyond the false propaganda. Six NATO troops killed in
Afghanistan (Washington Post) [ Is there something wrong with the
following picture? … am I missing something? … Gates's warning: Avoid
land war in Asia, Middle East, and Africa Christian Science Monitor - In a
speech to cadets at the United States Military Academy at West Point,
Gates's message was clear: The US military services, as well as the elected
and appointed civilians who send them to war, need better ways of
foreseeing and preparing for ... Gates Tells US Army to Take New
Approach Voice of America Warning Against Wars Like Iraq and
Afghanistan New York Times [ Better said, than unsaid; but, methinks a bit
late for that in light of pervasively corrupt, defacto bankrupt america’s
consummate decline and fall! If only they had listened and not shot at the
messenger … things could have been different! ] ] American military
officials expect that the Taliban will mount a campaign to regain ground lost
to U.S. troops last year and use suicide bombing teams to strike at those
associated with the Afghan government or coalition forces. ]
Krauthammer: What Social Security trust fund? (Washington Post) [ Fraud? Most
assuredly! But breathtaking, shocking? Come on! Let’s get real here …
paper iou’s (the ‘trust fund’) from pervasively corrupt, defacto bankrupt,
perpetual warster america? I mean, REALLY (as they say on SNL-a
joke)...This is the grim economic reality (
http://albertpeia.com/grimreality.htm ). In Senate's debt debate, talk isn't
cheap (Washington Post) [ Oh, but it is cheap! Very cheap relative to the
magnitude of the insurmountable debt … here’s an initial and astute vote of
‘no confidence’ … Drudgereport: World's biggest bond fund dumps all U.S.
debt... Senate still wrangling over spending bill (Washington Post) [ Few
signs of compromise on budget details (Washington Post) [ Come on …
wake up! The cuts they’re quibbling over don’t even cover interest on the
national debt! Timid Tuesday: Is it Safe? Davis ‘… This is how we pay
off our current debts and I think bondholders are simply happy to get
on the military and $1Tn on tax cuts for the top 1% each year). There is no
fixing this and even a Republican said you can’t fool all of the people all of
the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE
CAREFUL OUT THERE! ‘ ] Senate leaders delayed until Wednesday
consideration of a bill to fund the government through Sept. .…. Top
Economists: Trust is Necessary for a Stable Economy … But Trust Won’t Be
Restored Until We Prosecute Wall Street Fraud Most policy makers still don’t
understand the urgent need to restore trust in our financial system, or the
need to prosecute Wall Street executives for fraud and other criminal
wrongdoing ….. 'Gang of 6' takes deficit fight to public (Washington Post) [
Riiiight! I like that term, gang, as applied to capital hill. Indeed, without
exaggeration or sarcasm I posit the realistic existence of government mob,
relative to other mob designations as ie., mafia, irish mob, jewish mob, etc.,
based not on what they say they do but on what they actually do. That now
corrupted supreme court of old’s test for obscenity; viz., ‘you know it when
you see it’. And, haven’t we been seeing it for quite some time now; the
corruption, the corruptibility, the lobbyists, the military industrial complex,
the look the other way for the massive frauds on wall street, the bribes in
one form or another before or after the fact? The ‘gangs’ should be
shouldering the burden first, then come asking those who foolishly trusted
them. Why Social Security is welfare (Washington Post) [ What does it
matter what you call it? Part of america’s defacto bankruptcy? Most
assuredly (I haven’t even looked at the Bloomberg propaganda piece which
by its very title is an insult to intelligence; after all, we all know they can
continue to print evermore worthless fiat currency which in reality does not
change the ultimate reality of america’s defacto bankruptcy but merely
exacerbates while forestalling a realistic assessment of the magnitude of the
crisis. The fact is that there are others, culpable in creating this crisis who
should be shouldering the burden first; ie., frauds on wall street via
prosecution, fines, disgorgement; Ellen Bente Oliver ‘Salary of
House/Senate...$174,000. Salary of Speaker of House...$223,500. Salary of
Majority/Minority Leaders...$193,400. Average US Salary...$33,000 to $77,000.
Maybe our elected officials should make an average salary too...It's a time of
sacrifice after all...Pass along, post on your own page if you agree…’ ; SEC
on the hot seat (Washington Post) [ Oooooh! The capital hill hot seat …
shilling for no more than a grilling. House Republicans press SEC on
official's ties to Madoff (Washington Post) [ The ultimate subterfuge. Mr.
small potatoes madoff the focus of so much influence … yet he’s in jail …
and the only one … Boy, did mary shapiro become total b*** s*** fast … the
current shibboleth of capital hill / all 3 branches of pervasively corrupt u.s.
government … joining the others: “The Financial Industry Has Become So
Politically Powerful That It Is Able To Inhibit the Normal Process of Justice
And Law Enforcement” The economy cannot stabilize unless fraud is
prosecuted. But the folks in D.C. seem determined to turn a blind eye to Wall
Street shenanigans, and is now moving to defund the enforcement agencies
like the SEC and CFTC. Market Crash 2011: It Will Hit by Christmas
Farrell, MarketWatch SAN LUIS OBISPO, Calif. (MarketWatch) — ‘Politicians
lie. Bankers lie. Yes, they’re liars. But they’re not bad, it’s in their genes,
inherited. Their brains are wired that way, warn scientists. Like addicts, they
can’t help themselves. They want to sell stuff, get rich…’ Financialization
and Our Increasingly Unstable Economy Roche ‘I finally got around to
seeing the movie Inside Job, the story behind the credit crisis and winner of
the Academy Award for best documentary. It’s very good and I highly
movie doesn’t place nearly enough blame on homeowners, but all in all it
does an excellent job of showing how Wall Street and government have
become overrun by deregulation and sheer greed. A combination of flawed
economic theory and greed have combined to create the beast that we now
call a “functioning” economy. The worst part of it all is that President
Obama, who vowed change, has done almost nothing to fix any of it and in
fact continues most of the policies that helped get us here in the first place.
…’ ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the
unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds
on wall street ( and declares with oscar in hand that not one high level wall
street exec has been prosecuted … despite ‘earning’ billiions from the
fraud ), the commentator / experts recommend getting rid of the corrupt eric
holder ( now what do holder and wobama have in common … is it wall street
money ………… is it a proclivity for jive-talking / b*** s*** ………all of the
above, some of the above ……….. or is it something else …… here’s a hint -
UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE... CIVIL RIGHTS
PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ‘In emotional
and personal testimony, an ex-Justice official who quit over the handling of
a voter intimidation case against the New Black Panther Party accused his

[45mb ]
Stocks sink amid new economic concerns (Washington Post) [New economic
concerns? I don’t think so! The economic concerns certainly aren’t new: This is
the grim economic reality [ http://albertpeia.com/grimreality.htm ]. This
manipulated bubble in this secular bear market based on b*** s*** alone is an
especially great opportunity to sell / take profits while you can since there's much
worse to come!But that money/prosperity’s truly down the crapper and into the
hands of the ‘perps and friends’ … World's richest are almost $1 trillion richer
( And the other 95% trillions poorer.) … There’s never been a mystery here … just
a massive fraud that despite the rhetoric has been purposefully overlooked and
unprosecuted … : “The Financial Industry Has Become So Politically Powerful
That It Is Able To Inhibit the Normal Process of Justice And Law Enforcement”
The economy cannot stabilize unless fraud is prosecuted. But the folks in D.C.
seem determined to turn a blind eye to Wall Street shenanigans, and is now
moving to defund the enforcement agencies like the SEC and CFTC. Market
Crash 2011: It Will Hit by Christmas Farrell, MarketWatch SAN LUIS OBISPO,
Calif. (MarketWatch) — ‘Politicians lie. Bankers lie. Yes, they’re liars. But they’re
not bad, it’s in their genes, inherited. Their brains are wired that way, warn
scientists. Like addicts, they can’t help themselves. They want to sell stuff, get
rich…’ Financialization and Our Increasingly Unstable Economy Roche ‘I finally
got around to seeing the movie Inside Job, the story behind the credit crisis and
by deregulation and sheer greed. A combination of flawed economic theory and
economy. The worst part of it all is that President Obama, who vowed change,
has done almost nothing to fix any of it and in fact continues most of the policies
that helped get us here in the first place. …’ ‘INSIDE JOB’ Ferguson wins Oscar
for Documentary on the unprosecuted massive extant fraud in the (many)
TRILLIONS by the frauds on wall street ( and declares with oscar in hand that not
one high level wall street exec has been prosecuted … despite ‘earning’ billiions
from the fraud ), the commentator / experts recommend getting rid of the corrupt
eric holder ( now what do holder and wobama have in common … is it wall street
money ………… is it a proclivity for jive-talking / b*** s*** ………all of the above,
some of the above ……….. or is it something else …… here’s a hint - UPDATE:
MORE CLAIMS OF RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO
PURSUE FED PROBE IN BLACK PANTHER CASE... ‘In emotional and personal
testimony, an ex-Justice official who quit over the handling of a voter intimidation
case against the New Black Panther Party accused his former employer of
instructing attorneys in the civil rights division to ignore cases that involve black
promised to hold Wall Street accountable for the meltdown. ) (see this film, I
strongly recommend the complete documentary – the following is a
preview/summary) http://www.youtube.com/watch?v=ffHFjlqIzKE&feature=related

[45mb ]
] Official opens an investigation into allegations that the agency mishandled

potential conflicts of interest in its response to Madoff's Ponzi scheme.
]

you agree…’
was off 1.5%.

afternoon.)
operative term.

notably:

old highs.
Market Thrill Ride Ends Badly: Dave's Daily ‘‘Well, this wasn't very nice. When a
roller coaster is on pause as Wednesday you know something thrilling is coming
next. What spooked the herd anyway? China reported a surprising trade deficit
versus an expected surplus due to oil imports; Spain's credit rating was
downgraded a notch, Japan's GDP growth estimates were cut; Jobless Claims
were higher than expected; shots were fired at Saudi demonstrators; the Libya
situation remains a stalemate while major powers dither; and, there was no
POMO Thursday. Is that what it takes for a stampede? Markets have been
unstable to put it mildly and one of our trusty tech indicators DeMark sequential
counts (not to mention DeMark himself) has indicated "trend exhaustion" for
some time. This is why we've been light save for our Lazy Portfolios. [chart]
Everything was down today save bonds which rallied on a flight to safety. One
might think this ephemeral since "bond daddy" Bill Gross and PIMCO sold all
their holdings and yields can't go "much" lower from here. Despite having data
from WSJ late enough I can't determine if this was a 10/90 day or not; but, it sure
could be. Breadth may was particularly negative and someone no doubt will
chime in with a confirmation or not. As is usually the case for big sell days like
this, stops get hit and volume builds significantly.’
SPY's 25-Minute Tumble Sends ETF Back To January Levels Coleman ‘This
started out as a rocky day as China’s trade woes, European sovereign debt
concerns and sour job numbers in the U.S. sent stocks falling. As reports
emerged of bullets pelting protesters in Saudi Arabia, popular ETFs tracking key
benchmarks tumbled.In a 25-minute span, the SPDR S&P 500 ETF (SPY) fell
almost 0.9%, erasing its intra-day high. It rallied for about an hour before losing
steam in the last 1.5 hours of the regular session. SPY closed down 1.9% at
$129.94 a share, back to levels not seen since January.Perhaps just as alarming,
the blue chip tracking ETF fell below its 50-day moving average, a key short-term
technical indicator. So did the SPDR Dow Jones Industrial Average ETF (DIA).Now,
all eyes are likely to be focused on on the Fed’s policy setting committee meeting
next Tuesday. If it decides to keep rates low for an extended period, “the risk of
an even deeper pullback increases,” writes Tomi Kilgore in his column today for
Dow Jones Newswires.The S&P 500 index closed today at 1295.11. Bears should
target the 1225-1230 range, where there was significant resistance from early
November through early December, notes Kilgore. “In addition, the 38.2%
retracement–the first significant retracement level for followers of Fibonacci
numbers–of the rally off the August low of 1040 to the February high of 1344 is at
1228,” he adds.About the same time as SPY was falling, the U.S. Oil Fund (USO)
made a push higher after moving lower in the morning. The ETF’s shares
bounced up on heavy volume in the early afternoon to reach an intra-day high
around $42.10 a share. But it meandered down the rest of the afternoon. USO
closed down 1.6% at $41.40 a share, back to last week’s levels.The SPDR Gold
Trust (GLD) did much the same as USO, jumping in the afternoon only to slide
lower later in the day. But the precious metals ETF did manage a small rally early
in the session to reach $138.72 a share. It finished down 1.2% at $137.77 a share,
taking the fund back to late February levels.’
Stocks Sharply Lower, Dow's 200-Plus Point Drop Deepest Since August
Midnight Trader ‘4:22 PM, Mar 10, 2011 --
• NYSE down 179.37 (-2.1%) to 8,200.07

• DJIA down 228.48 (-1.9%) to 11,985
• S&P 500 down 24.91 (-1.9%) to 1,295
• Nasdaq down 50.70 (-1.8%) to 2,701
GLOBAL SENTIMENT

• FTSE down 1.53%
Reviewing My Reasons to Book Profits Suttmeier ‘In the new millennium I’ve
made some good market timing calls and some not so good calls. In March 2000,
I recommended that investors reduce holdings in NASDAQ stocks by 50%. Then,
between July 2002 and October 2002, I was a major bull, and re-iterated that
bullish call in March 2003 as our troops marched towards Baghdad.
Unfortunately, margin calls forced many of my readers who stayed long to bail-
out at the lows.
In June 2005, I called the summer top for the homebuilders. At the end of 2006, I
called the top for community banks. In March 2007, I called the top for the
regional banks, but was pre-mature on the bearish overall market call, though I
stuck to my guns with a re-iteration all the way into October 2007 when I said that
the Dow would not sustain gains above 14,000. I was a bear until March 2009,
when I called for a 40% to 50% bear market rally.
In 2010, I under-estimated the potential upside to the market, but my stock

selection process of “Buy and Trade” limited the extent of this bad call. Starting
in September 2010, I shifted to a more balanced market outlook looking for Dow
11,235 by election day, on the Republican victory and QE2. My ValuTrader model
portfolio was up 35.2% in 2010, solidly beating the S&P 500. At year end, my call
for 2011 has been a Dow top below 12,600.
Reviewing Reasons to Book Profits:
1. The fundamentals showed that stocks were overvalued and we have had three
ValuEngine valuation warnings when more than 65% of all stocks are overvalued.
The January warning was ignored by the market, but so far stocks peaked with
the warning issued on February 18th and re-iterated on March 3rd. During this
period, we have seen many days where all sixteen sectors have been overvalued,
with eight to eleven by double-digit percentages. The Dow high was 12,391.29 on
February 18th.
2. I believe that the Federal Reserve will allow QE2 to end at the end of June and
that there will be no QE3. At that meeting the FOMC will remove “extended
period” from their statement. The federal funds rate has been zero to 0.25% since
December 16, 2008.
3. The weekly chart for the Dow Industrial Average has been overbought since the
week of October 9, 2010. Momentum needs to fall below 8.0 and the Dow must
have a weekly close below the five-week modified moving average, which ended
last week at 12,017. A negative weekly chart confirms the market top.
4. It will be hard to maintain a bull market with European debt issues, African and
Middle-East political unrest, problems at US state capitals, and inflationary
pressures in China.
5. The housing market remains depressed and community banks remain

stressed.
• The Dow Industrial Average (12,213) Libya Trading Range: 11,983 to 12,391.
My annual value level is 11,491 with a daily pivot at 12,205, and weekly and
monthly risky levels at 12,483 and 12,741.
• The S&P 500 (1320.0) Libya Trading Range: 1294 to 1344. My quarterly
value level is 1262.5 with a daily pivot at 1317.0, and weekly and monthly
risky levels at 1350.3 and 1381.3.
• The NASDAQ (2752) Libya Trading Range: 2706 to 2840. My monthly value
level is 2629 with a daily pivot at 2745, and weekly, quarterly and monthly
risky levels at 2829, 2853 and 2926.
• The NASDAQ 100 (NDX) (2323) Libya Trading Range: 2285 to 2403. My
monthly value level is 2250 with a daily pivot at 2328, and weekly, quarterly,
and monthly risky levels at 2398, 2438 and 2499.
• Dow Transports (5147) Libya Trading Range: 4918 to 5306. My quarterly
value level is 4671 with weekly, daily and annual pivots at 5052, 5086 and
5179. The Transports closed below its five-week modified moving average
in each of the two weeks with declining momentum, which is a negative
weekly chart profile. A close above this week’s five-week at 5111 shifts the
weekly chart to neutral.
• The Russell 2000 (824.66) Libya Trading Range: 795 to 838. My quarterly
value level is 765.50 with a daily pivot at 816.86, and weekly, daily and
monthly risky levels at 831.09 and 850.79.
• The Philadelphia Semiconductor Index (SOX) (447.94) Libya Trading Range:
439 to 474. My monthly value level is 402.46 with a daily pivot at 436.99, and
monthly and quarterly pivots at 453.89, 458.32 and 465.93, and weekly risky
level at 485.92.
10-Year Note – (3.475) Daily, weekly, annual, and semiannual value levels are
3.544, 3.642, 3.796 and 4.268 with monthly, annual, and semiannual risky levels at,
3.002, 2.690, 2.441, and 2.322.
Comex Gold – ($1429.6) Weekly, annual, quarterly, semiannual and annual value
levels are $1385.4, $1356.5, $1331.3, $1300.6 and $1187.2 with monthly and
quarterly pivots at $1437.7 and $1441.7, and daily and semiannual risky levels at
$1446.3 and $1452.6.
Nymex Crude Oil – ($104.16) Weekly, monthly and semiannual value levels are
$97.78, $96.43, and $87.52 with my annual pivots at $99.91 and $101.92, and
semiannual, daily and quarterly risky levels are $107.14, $107.24 and $110.87.
The Euro – (1.3904) My quarterly value level is 1.3227 with a daily pivot at 1.4040,
and weekly, semiannual and monthly risky levels at 1.4446, 1.4624 and 1.4637.
Daily Dow: (12,213) Annual, quarterly, semiannual, and semiannual value levels
are 11,491, 11,395, 10,959, and 9,449 with a daily pivot at 12,205, and weekly,
monthly and annual risky levels at 12,484, 12,741 and 13,890.’
ETFs React to Jobless Claims and Deficit tlydon@globaltrend.com (Tom Lydon),

On Thursday March 10, 2011, 11:40 am EST ‘Exchange Traded Funds (ETFs)
dropped Thursday, with the bears in control after data showed rising jobless
claims and growing U.S. and Chinese trade deficits.
• The number of people seeking unemployment benefits rose last week. But
the rise comes after applications hit their lowest level in nearly three years
and economists expect further declines as the economy improves.
Applications increased by 26,000 to a seasonally adjusted 397,000 during
the week ended March 5, the Labor Department said Thursday. The four-
week average, a less volatile measure, rose to 392,250. The average fell to
its lowest level since July 2008 two weeks ago. The latest report covers the
week after the Presidents’ Day holiday, when many government offices
were closed. Applications usually rise in weeks following holiday-
shortened weeks. The SPDR Dow Jones Industrial Average
(NYSEArca:DIA) is down 1.5% in morning trading.
• A surge in oil prices helped push imports up at the fastest pace in 18 years
in January, giving the country the largest trade deficit in six months. The
Commerce Department said Thursday the January deficit increased 15.1
percent to $46.3 billion. Exports rose 2.7 percent to an all-time high of
$167.7 billion. But imports rose a faster 5.2 percent to $214.1 billion. That
reflected a big jump in America’s foreign oil bill, underscoring concerns
that surging oil prices could slow the economic recovery. A widening trade
deficit hurts the U.S. economy. When imports outpace exports, more jobs
go to foreign workers than to U.S. workers. The Direxion Daily Energy Bear
3x Shares ETF (NYSEArca:ERY) rose over 9% in early trading.
• Europe’s leading stock markets retreated Thursday as euro zone debt fears
sparked by a credit downgrade to Spain overshadowed news of positive
company earnings, traders said. “Markets are taking another pasting …
mainly on the back of Spain getting downgraded by Moody’s,” said
Spreadex trader Chris Purdy . The markets are looking at higher oil prices
and the continued concern over European debt. The iShares S&P Europe
350 Index ETF (NYSEArca:IEV) is down approximately 2% today.
• Asian shares declined Thursday as escalating fighting in Libya and China’s

unexpected trade deficit for February sparked a sell-off in the region. The
fall in Shanghai came after the country posted a $7.3 billion trade deficit in
February, compared with expectations of a surplus, as exports and imports
growth slowed sharply, bearing the impact from the Chinese New Year
holidays during the month. “One thing we are more certain about is that
China’s trade surplus is most likely to decline at a faster rate than anyone
expected this year… A much smaller trade surplus means that the external
pressure on yuan appreciation would be less,” said Wei Yao, China
economist at Societe Generale in Hong Kong . iShares FTSE/Xinhua China
25 Index (NYSEArca:FXI) is down this morning about 1.3%.
Gregory A. Clay contributed to this article.’
Deja Vu - Nasdaq Breaks 50 Day Moving Average Trader Mark ‘Let's try this again
- we just had this conversation Monday. The NASDAQ (QQQQ) - yet again - has
broken the 50 day moving average, although today's move is more impressive
than the last occurrences as it was a gap down situation. Hence, no part of
today's range in the index has been above the 50 day moving average. When this
break of support happened early afternoon Monday, the NASDAQ turned on a
dime and rallied 1% in just over 2 hours.
[chart]
(Click charts to expand)
As I state constantly, what matters is the CLOSING price, not the intraday price,
BUT today's action is not looking prone to a 'stick save' situation (late day rally)
as we saw the other times this happened the past few weeks. Hence I would be
quite surprised if 'dip buyers' were bailed out today. As for 'da bears' - they want
to see a close below 2730 on NASDAQ.
The S&P 500 (SPY) has come down to sniff the 50 day moving average as well,
but the NASDAQ has been the indicator of where the bulls charge in the past few
weeks so I'll keep a closer eye there. Obviously a close below 1294 on this index
would be a double whammy. That would be both a close below the 50 day moving
average AND a close below the intraday low of 2 weeks ago.
[chart]
No place for heroes here - I continue to stress caution and de-risking. Remember,
we have major air pockets below these key supports since the rally has been so
vicious and shorts eviscerated for half a year; therefore they are not going to
provide the natural support as in a normal market when they cover.
It is fun to see a 2 way market once again - first time since November.’
Ex-Goldman Sachs Analyst: “Major War” Coming End Of 2012 Paul Joseph Watson
| Massive conflict will prompt stock market collapse, predicts cycle
strategist Nenner.
QE 3 and the Coming Rout Chris Martenson | There’s a scenario that could play
out between May and September.
Oil prices drop before US data, Saudi protests AFP | Traders kept a wary eye
ahead of US data and planned protests in oil kingpin Saudi Arabia.
Faber: Oil will go up ‘ballistically’ if unrest shifts to Saudi Arabia Business
Intelligence Middle East | Marc Faber sees oil prices extending their bull run
despite the 15% run-up this year alone.
Jobless Claims in the U.S. Rose 26,000 Last Week to 397,000 Bloomberg | First-
time claims for jobless benefits rose last week from an almost three-year low.
8 Reasons Why Silver Is the Investment of the Decade If there’s one asset that’s
heated up over the last several months amid tensions in the middle east and
a second round of the Federal Reserve’s quantitative easing, it’s silver.
Should We Be Alarmed That The Biggest Bond Fund In The World Has Dumped
All Of Their U.S. Treasury Bonds? Bill Gross, the manager of the biggest
bond fund in the world, has forgotten more about bonds than most of us will
ever learn. That is why the big move that PIMCO has just made is so
unsettling.
Bernanke Tries To Explain Why A Ponzi Scheme Is A Perfectly Acceptable

System For Post Civil-War America, Fails The following exchange between
Ben Bernanke and Senator Kirk is a must watch for everyone who wonders
how Ben Bernanke justifies the fact that America is now an open Ponzi
scheme.
Gasoline cost to jump $700 for average household U.S. drivers will pay another
10 cents a gallon for gasoline before the latest jump in wholesale costs is
fully passed on at the pump, and yearly motor fuel costs will rise 28 percent
from last year, the Energy Department said on Wednesday.
National / World
Ex-Goldman Sachs Analyst: “Major War” Coming End Of 2012 Paul Joseph Watson
| Massive conflict will prompt stock market collapse, predicts cycle
strategist Nenner.
Bob Bowman: Star Wars Secrets & Lies Paul Joseph Watson | Former head of SDI
blows the whistle on the militarization of space.
Stealing from Social Security to Pay for Wars and Bailouts Paul Craig Roberts |
The government of the United States does not represent the American
people. It represents the oligarchs.
Doctors Report Bahrain Using Nerve Gas On Demonstrators Kurt Nimmo |

Bahraini PM states the monarchy is permitted to use chemical weapons
against its citizens.
Egyptian Revolution? Globalists Own Both Horses In Two Horse Race Paul
Joseph Watson | Welcome to “democracy,” new world order style.
Ex-Goldman Sachs Analyst: “Major War” Coming End Of 2012 When cycle
forecaster Charles Nenner told the Fox Business network yesterday that the
Dow Jones was set to collapse to the 5,000 level on the back of a “major
war” that will shake the globe at the end of 2012, hosts David Asman and
Elizabeth MacDonald sat in stunned silence.
Oil Trims Losses After Saudi Police Fire On Protesters Crude-oil futures pared
losses Thursday after reports Saudi police opened fire at protesters in the
eastern city of Qatif.
Congressman: TSA “Cooked The Books” To Discourage Use Of Private Security

Contractors In Airports The chairman of the House Transportation and
Infrastructure Committee has charged that the TSA intentionally fixed data
to ensure that federal workers were employed to screen airport passengers,
rather than private contractors.
Two Fresh TSA Gropedown Videos: Pregnant Woman pulled aside, TSA Thugs
Block Man From Filming Wife Being Groped Two new videos taken by
concerned Americans accosted by the TSA in airports. The first shows a
pregnant woman being groped by an officer. The second shows TSA agents
blocking a man from recording TSA agents touching his wife, even after a
supervisor had overruled them and said the man had the right to film.
Bob Bowman: Star Wars Secrets & Lies Robert M. Bowman, a former Director of
Advanced Space Programs Development for the U.S. Air Force in the Ford
and Carter administrations has been targeted with death threats,
government harassment and three tax audits in two years as a consequence
of his bold truth-telling activism, which all started when he blew the whistle
on the fact that Reagan’s Star Wars program was an offensive act of military
conquest in space and a means of waging aggressive pre-emptive warfare,
disguised as a defensive program.
Saudi police open fire on demonstrators MSNBC.com | Word of the protest

helped drive oil prices back up on international markets.
Qaddafi’s Son Says It’s Time For Full-Scale Military Action Qaddafi’s son Saif Al-
Islam says the time has come for full-scale military action against the rebels,
in an interview with Reuters. While France says Libya’s rebel national
council is the only legitimate representative of the country, and will seek to
engage in targeted airsrtikes.
Three BBC journalists ‘detained and beaten’ in Libya Three BBC journalists were
“detained and beaten” before being subjected to a mock execution while
reporting in battle-torn Libya, the news organisation reported Wednesday.
Drudgereport : SARKOZY, CAMERON TAKE CHARGE ON LIBYA...
HILLARY: U.S. should wait for world to act...
Top U.S. Spy: GADHAFI WILL PREVAIL...
LIBYA BURNS AS NATO SQUABBLES
Ill. Gov. Slaps Tax on Internet Sales...
Targets AMAZON...
Major ad firm threatens to leave state...
Part of growing battle in cash-starved states...
OBAMA: I was bullied…[Maybe that accounts for his precarious mental state and
compulsive need to b*** s***… he’s so pathetic!]...
Michelle Obama Sports $1,000 Handbag… (the wobamas are such jive-tallkers) ...
Gang Rape of 11-Year-Old Girl Sparks Racial Tensions in Texas Town…[ People
are tired of soft-peddling and making up excuses for blacks panthers as with the
holder department of injustice…This is very commonplace in Sub-Saharan Africa.
]...
Gas Prices Up 67% Since Obama President...
Elite journalist club bans CSPAN from covering Obama at posh dinner...
Jesse Jackson: We're 'Going To Escalate The Protests'...
Wisc. lawmakers curb public worker bargaining power...
Pandemonium in Wisc as protesters storm Capitol over union vote...
[ Wis. Senate strips workers' bargaining rights Vote by Republicans bypasses
chamber's missing Democrats (Washington Post) [ Drudgereport: Drudge is
reporting, and I think Charlie Sheen would agree, that in Wisconsin, the GOP is …
duh … winning … and conversely, the dems / unions are … duh … losers, trolls,
etc… just kidding …]
World's biggest bond fund dumps all U.S. debt...
UNIONS LOSE IN WI
WI GOP pushes through union bill...
'ENOUGH IS ENOUGH'...
Gov. Walker applauds...
DEMS SCRAMBLE BACK...
SHOCK: 82% of US schools 'failing'...
Gasoline cost to jump $700 for avg household...
Libya Tanks Move In To Crush Rebel Stronghold...
Carnage in Rebel City...
FOOTAGE: Libyan war plane shot down...
Obama, Cameron discuss plan of action...
Hoyer: No Balanced Budget for 15-20 Years 'We've Dug Such a Deep Hole'...
FLASHBACK: Larger Than Entire 2007 Deficit...
Treasury Draws Down Cash Balance...
FEBRUARY DEFICIT: $223 BILLION
FRESHMAN DEM. SENATOR: OBAMA HAS 'FAILED TO LEAD'...
Mayors to Unions: 'Dire fiscal straits' without 'dramatic' changes...
Anger Brews Over Government Workers' Benefits...
UNREST IN THE MIDWEST: Now Michigan...
WELFARE NATION: ONE-THIRD OF ALL WAGES ARE HANDOUTS...
ROMNEY: Obama Misery Index hits record high...
OPEC VOWS NEW PUMPING...
OIL HOLDS NEAR $105...
Roubini: Will Hit $150...
Sheen: 'I'm really starting to lose my mind'... ‘In what appears to be a 180 degree
turn around from his daily proclamations of having “tiger’s blood” and “Adonis
DNA,” Charlie Sheen admitted “I’m really starting to lose my mind” in the new
issue of “Life & Style.”
U.N. confirms probe into allegations of torture by Gaddafi's forces (Washington

Post) [ Well we all know how effective the u.n. has been in enforcing the
mandate against torture / war crimes in light of their stern rebuke / sanctions
/ action against the u.s. / israel … riiiiight!
http://albertpeia.com/evilonthetarmac.htm ]
Dispute threatens trade agenda (Washington Post) [ Agenda? What agenda?

Come on! A cursory look at the consistent and persistent trade numbers and
one must conclude that they’d safe some face and be thought of just a wee
bit better than worse than bad if they stated they have no agenda. My
computer is under constant hack-attack and truth be told, I’ll be going linux /
non-windows with my next ‘non-american’ made computer (this dell just
can’t hack the hacks / barrage). Let’s not kid ourselves, there is nothing
‘made in america’ (even most components of ‘domestic’ products are made
overseas) that can’t be made elsewhere better and cheaper except for the
ubiquitous fraud for which pervasively corrupt, defacto bankrupt america
has no peer…
Taxpayers caught in middle of Fannie lawsuit (Washington Post) What could be

worse than taxpayers paying more than $100 million to defend a shareholder-
owned company and its former executives in a private lawsuit? [ What could be
worse? Not prosecuting the massive wall street frauds in the trillions with jail,
fines, and disgorgement the goal.…. Top Economists: Trust is Necessary for a
Stable Economy … But Trust Won’t Be Restored Until We Prosecute Wall Street
Fraud Most policy makers still don’t understand the urgent need to restore trust
in our financial system, or the need to prosecute Wall Street executives for fraud
and other criminal wrongdoing ….. 'Gang of 6' takes deficit fight to public
(Washington Post) [ Riiiight! I like that term, gang, as applied to capital hill.
Indeed, without exaggeration or sarcasm I posit the realistic existence of
government mob, relative to other mob designations as ie., mafia, irish mob,
jewish mob, etc., based not on what they say they do but on what they actually
do. That now corrupted supreme court of old’s test for obscenity; viz., ‘you know
it when you see it’. And, haven’t we been seeing it for quite some time now; the
corruption, the corruptibility, the lobbyists, the military industrial complex, the
look the other way for the massive frauds on wall street, the bribes in one form or
another before or after the fact? The ‘gangs’ should be shouldering the burden
first, then come asking those who foolishly trusted them. Why Social Security is
welfare (Washington Post) [ What does it matter what you call it? Part of
america’s defacto bankruptcy? Most assuredly (I haven’t even looked at the
Bloomberg propaganda piece which by its very title is an insult to intelligence;
after all, we all know they can continue to print evermore worthless fiat currency
which in reality does not change the ultimate reality of america’s defacto
bankruptcy but merely exacerbates while forestalling a realistic assessment of
the magnitude of the crisis. The fact is that there are others, culpable in creating
this crisis who should be shouldering the burden first; ie., frauds on wall street
via prosecution, fines, disgorgement; Ellen Bente Oliver ‘Salary of
House/Senate...$174,000. Salary of Speaker of House...$223,500. Salary of
Majority/Minority Leaders...$193,400. Average US Salary...$33,000 to $77,000.
Maybe our elected officials should make an average salary too...It's a time of
sacrifice after all...Pass along, post on your own page if you agree…’ ; SEC on the
hot seat (Washington Post) [ Oooooh! The capital hill hot seat … shilling for no
more than a grilling. House Republicans press SEC on official's ties to Madoff
(Washington Post) [ The ultimate subterfuge. Mr. small potatoes madoff the focus
of so much influence … yet he’s in jail … and the only one … Boy, did mary
shapiro become total b*** s*** fast … the current shibboleth of capital hill / all 3
branches of pervasively corrupt u.s. government … joining the others: “The
Financial Industry Has Become So Politically Powerful That It Is Able To Inhibit
the Normal Process of Justice And Law Enforcement” The economy cannot
stabilize unless fraud is prosecuted. But the folks in D.C. seem determined to turn
a blind eye to Wall Street shenanigans, and is now moving to defund the
enforcement agencies like the SEC and CFTC. Market Crash 2011: It Will Hit by
Christmas Farrell, MarketWatch SAN LUIS OBISPO, Calif. (MarketWatch) —
‘Politicians lie. Bankers lie. Yes, they’re liars. But they’re not bad, it’s in their
genes, inherited. Their brains are wired that way, warn scientists. Like addicts,
they can’t help themselves. They want to sell stuff, get rich…’ Financialization
and Our Increasingly Unstable Economy Roche ‘I finally got around to seeing the
movie Inside Job, the story behind the credit crisis and winner of the Academy
Award for best documentary. It’s very good and I highly recommend it to anyone
who hasn’t seen it. It will certainly infuriate you. The movie doesn’t place nearly
enough blame on homeowners, but all in all it does an excellent job of showing
how Wall Street and government have become overrun by deregulation and sheer
greed. A combination of flawed economic theory and greed have combined to
create the beast that we now call a “functioning” economy. The worst part of it all
is that President Obama, who vowed change, has done almost nothing to fix any
of it and in fact continues most of the policies that helped get us here in the first
place. …’ ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the
unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds on
wall street ( and declares with oscar in hand that not one high level wall street
exec has been prosecuted … despite ‘earning’ billiions from the fraud ), the
commentator / experts recommend getting rid of the corrupt eric holder ( now
what do holder and wobama have in common … is it wall street money …………
is it a proclivity for jive-talking / b*** s*** ………all of the above, some of the above
……….. or is it something else …… here’s a hint - UPDATE: MORE CLAIMS OF
RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN
BLACK PANTHER CASE... ‘In emotional and personal testimony, an ex-Justice
official who quit over the handling of a voter intimidation case against the New
Black Panther Party accused his former employer of instructing attorneys in the
civil rights division to ignore cases that involve black defendants and white
victims ...’ US v. AZ... Cases against Wall Street lag despite Holder’s vows to
target financial fraud Washington Post | Obama has promised to hold Wall Street
accountable for the meltdown. ) (see this film, I strongly recommend the
complete documentary – the following is a preview/summary)

[45mb ]
] Official opens an investigation into allegations that the agency mishandled

potential conflicts of interest in its response to Madoff's Ponzi scheme.
] Here is how I define a welfare program.
] While Washington bickers noisily over cutting a small slice of the federal
budget, Sens. Mark Warner, a Virginia Democrat, and Saxby Chambliss, a
Georgia Republican, launch a campaign to convince the public that merely
cutting spending will do little to tame the $14 trillion national debt.
]
] A battle over a proposed free-trade agreement with Colombia is undercutting
U.S.'s pact with South Korea
In Senate's debt debate, talk isn't cheap (Washington Post) [ Oh, but it is cheap!
Very cheap relative to the magnitude of the insurmountable debt … here’s an
initial and astute vote of ‘no confidence’ … Drudgereport: World's biggest
bond fund dumps all U.S. debt... Senate still wrangling over spending bill
(Washington Post) [ Few signs of compromise on budget details
(Washington Post) [ Come on … wake up! The cuts they’re quibbling over
don’t even cover interest on the national debt! Timid Tuesday: Is it Safe?
Davis ‘… This is how we pay off our current debts and I think bondholders
are simply happy to get anything out of a country that admits it owes $15Tn
(1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in
the form of unfunded liabilities. The funniest thing about this (and you have
to laugh) is to see Conservative pundits get on TV and talk about how we
need to cut $100Bn worth of discretionary spending to "fix" this (while
continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1%
each year). There is no fixing this and even a Republican said you can’t fool
all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING
FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ] Senate leaders delayed until
Wednesday consideration of a bill to fund the government through Sept.
Wis. Senate strips workers' bargaining rights Vote by Republicans bypasses

chamber's missing Democrats (Washington Post) [ Drudgereport: Drudge is
reporting, and I think Charlie Sheen would agree, that in Wisconsin, the GOP is …
duh … winning … and conversely, the dems / unions are … duh … losers, trolls,
etc… just kidding …
Drudgereport: World's biggest bond fund dumps all U.S. debt...

UNIONS LOSE IN WI
WI GOP pushes through union bill...
'ENOUGH IS ENOUGH'...
Gov. Walker applauds...
DEMS SCRAMBLE BACK...
SHOCK: 82% of US schools 'failing'...
Gasoline cost to jump $700 for avg household...
Libya Tanks Move In To Crush Rebel Stronghold...
Sheen: 'I'm really starting to lose my mind'... ‘In what appears to be a 180 degree
turn around from his daily proclamations of having “tiger’s blood” and “Adonis
DNA,” Charlie Sheen admitted “I’m really starting to lose my mind” in the new
issue of “Life & Style.” The recently fired “Two and a Half Men” star also reveals
his desperation to regain custody of his two young twin sons, Bob and Max.
ARTICLE: Charlie Sheen Attacks Jon Cryer.
“She can’t keep them from me,” Sheen says of his estranged wife, Brooke
Mueller. “I won’t let her—I’ll do anything to get them back.”Sheen, 45, who has
made four disturbing live web broadcasts from his compound in Sherman Oaks,
CA, admits that even his lawyer, Marty Singer, has expressed concern about him.
PHOTOS: Charlie Sheen's Long List of Lady Friends.
“My lawyer wants to come over to my house and take the bullets out of my gun,"
he told the magazine.A party pal of Charlie’s tells the magazine, "It's crazy over
here at the house—Charlie's losing it. He's really mad about the show, and
dealing with the kids and Brooke is getting to be too much. Charlie is a ticking
time bomb, and we all fear he could do something drastic like committing suicide
or falling back on hard drugs."
ARTICLE: 'Tiger Blood' Drink Goes On Sale.
Sheen, who appeared on a Beverly Hills rooftop Monday, brandishing a machete,

realizes that his bizarre behavior has many concerned."I'm really trying to contain
myself right now," he said.
ARTICLE: 'Men' Co-Star Is Sheen's Lone Defender.
If that's true, he's not doing a good a job of it, because Sheen widened his list of
targets to include his former "Two and a Half Men" co-star, Jon Cryer, on
Tuesday.Cryer had managed to stay out of the fray during Sheen's fall from grace
at CBS, but his luck ran out.
ARTICLE: Can 'Two and a Half Men' Survive? Just Ask 'Three's Company.'
"Jon has not called me. He's a turncoat, a traitor, a troll. Clearly he's a troll,"
Sheen told E! News. "He issued a statement. Is it gonna take me calling him a
'traitor, juvenile and scared' for him to get it?"Cryer has actually not issued an
official statement since Sheen was fired from the hit CBS sitcom “Two-And-A-Half
Men” on Monday. But he may want to issue one now, because Sheen has not
stopped ranting about his enemies since his dismissal, and once you are on his
crosshairs, it seems you never escape.
ARTICLE: Sheen's Kids Could Be Next on Reality Show.
Tuesday night was the latest case in point, as Sheen blasted his list of hated CBS
executives one by one with yet another nonsensical, barely decipherable scripted
screed on Ustream. "A high treason has occurred. The scales of justice are in a
state of radical disarray. Together we must right this infantile wrong… What
happened yesterday was completely and entirely illegal, unconscionable and to
quote my lawyer 'really shi**y shi**y suck suck'," Sheen, the self-proclaimed
“Malibu Messiah,” said before launching into a strange diatribe in his fourth
"Sheen's Korner" webcast, in which he saved his most savage attacks for
producer Chuck Lorre – calling him everything from a “silly clown,” to “little
worm” and “loser.”
Read more: http://entertainment.blogs.foxnews.com/2011/03/09/charlie-sheen-

tells-magazine-im-really-starting-to-lose-my-mind/#ixzz1GA8oolSk ‘
Gaddafi forces engage in fierce battle Regime loyalists in Libya mount assaults
to reclaim ground (Washington Post) [ 41 years in power … Hey, when
interviewed by Charlie Sheen on SNL he seemed rather spry …
Sheen's-Korner, Ustream.TV You're either in Sheen's-Korner or you're with the
trolls... [and the big question is which trolls … the pat_trolls, the con_trolls, the
troll_eys, the troll_ups, etc.? ] http://www.ustream.tv/charliesheen
Archived Web Site File: http://www.albertpeia.com/Sheen's-
Korner,Ustream.TVYou'reeitherinSheen's-Korneroryou'rewiththetrolls.flv
(448mb) (for whatever reason, this file did not open properly in my somewhat
older player and I didn’t have time to download another to determine if the
problem is with the viewer or the file, but will, and will indicate the result here. )
Here’s SNL’s take on the Sheen webcast [ This was the first time I’d seen Miley
Cyrus in anything and I must say she is truly a star, albeit a very precocious one;
this SNL was absolutely hilarious across the board! ]
http://www.saturday-night-live.com
Part of the webcast: www.youtube.com/watch?v=HIx4_t26AAs
With neither side able to muster overwhelming force, the result appeared to be a
bloody stalemate, with the death tolls rising in both east and west.Intense
international deliberations come as troops loyal to Gaddafi continue to besiege
the rebel-held city of Zawiyah, 27 miles west of Tripoli.] The vote comes after a
maneuver by GOP members that split the proposal to curtail union rights from
legislation requiring a quorum.


you agree…’
time, markets would experience a period of volatility and declining prices.
The theory behind utilities' performance as it relates to the S&P 500 (IVV) does
have a logic behind it. Because utility companies in general are local monopolies
which have high infrastructure costs, most tend to have high levels of debt and
are thus especially sensitive to intermediate/long-term interest rates. Growth in
revenue is not the primary source of profits, but rather costs are.
What this means is that fundamental investors in utilities would really put money
to work in the sector if they expected interest rates to fall, because that lowered
cost of capital would benefit profits in a substantial way. Thus, the
outperformance of utilities against the broader market is because of expectation
that interest rates fall (the yield curve flattens).
So while the Dow Jones Industrial Average (DIA), the S&P 500 (IVV), and
particularly the Russell 2000 (IWM) have all gone effectively nowhere in price with
high volatility, the utilities sector has consistenly been up more/down less on
those big up and big down days we've been experiencing. Take a look below at
the price ratio of utilities (IDU) to the Dow (DIA). As a reminder, a rising price ratio
means the numerator/IDU is outperforming (up more/down less) the denominator.
Click to enlarge:
[chart]
The message from utilties investors is clear: Expect lower long interest rates in
the near future. And since interest rates and the yield curve are a leading
indicator of the economy and the broad stock market, we may very well be in the
early stages of a correction.’
Market Thrill Ride Continues: Dave's Daily ‘Within most thrill rides there can be a
pause before the next level of excitement whether it's a climb or hitting the next
big drop. Markets Wednesday ran out of steam despite ongoing MENA [Middle
East and North Africa] violence and oil disruptions. Crude oil was fractionally
lower due to an inventory build but that's really old news. Iraqi production was
rumored as halted and Libyan oil is not flowing. Tech remains weak especially
after disasters for fiber optic leaders like FNSR, CIEN and JDSU. Also semi's
remained down and SMH broke its 50 day MA. The Fed wasn't idle as more POMO
was released to Da Boyz who didn't do much with it...yet. As an aside our
contractor stopped by today and was bemoaning gas prices. His wife works for a
local Ford dealer and they had a huge January but now sales have stopped. Such
is the impact of higher fuel prices. Volume came in about average on the day
while breadth per the WSJ was mixed to negative.’
STOCKS SLIDE, TECH HAMMERED, COPPER CRUSHED: Here's What You Need
To Know Weisenthal ‘Yesterday was up, so today was down. That's the way this
market is behaving right now.
But first, the scoreboard:
Dow: -0.38
NASDAQ: -14.73
S&P 500: -1.63
And now, the top stories:
• First, we'll get a note on Libya out of the way. It was basically the same-old
same-old, except with more bombing and fires at oil facilities. No big
movement in one way or another.
• Going back a bit, remember that yesterday was a big up day for stocks.
However, the mood was negative after hours after some ugly numbers form
Finisar and Texas Instruments.
• Overnight, things were fairly quiet, except that Eurozone spreads continue
to blow out.
• Economic news in the US pretty much didn't happen. Bill Gross caused a stir
when it came out that he had completely sold out of US Treasuries, though of
course that was totally in line with what he called for earlier, so it's not a
big shock.
• In the end, tech was the worst loser, thanks to those tech earnings. Copper
got really hammered (quite ominously), and oil even fell a little bit.
• Today was the 2-year anniversary of the 2009 bottom.’

The Case for a Bear Market for Stocks Suttmeier ‘In making a bearish call on the
U.S. stock market, I base it on both fundamental and technical factors. The
double-digit percentages.
ValuEngine provides valuation, forecast, and ratings data for a universe of more than
5,500 stocks. When more than 65% of all stocks are calculated to be overvalued, we
issue a ValuEngine Valuation Warning. We do this because in the past this level of
overvaluation has often been correlated with market corrections and downturns.
Conversely when more than 65% of all stocks are undervalued additional weakness
provides buying opportunities. On March 5, 2009 the percentage of undervalued stocks
reached 91%.
The technical factors ignore the daily charts as timing a cycle high requires confirmation
from the weekly charts and having risky levels from my proprietary analytics to judge
how high markets can go before they top out. Right now the major averages are stuck in
want I call the "Libya Trading Ranges," which are the February 18 highs down to the
February 24 lows. The weekly chart profiles are positive, but overbought for all major
averages except Dow Transports. To confirm a cycle high, all major averages must
have weekly closes below their five-week modified moving averages with weekly
12x3x3 weekly slow stochastic readings declining below 8.0 on a scale of zero to 10.0.
This dynamic is being delayed as the major equity averages straddle their 50-day
simple moving averages. The Dow Industrial Average and S&P 500 have been above
their 50-day since December 1. They're now at 11,967 Dow and 1298.81 S&P 500. The
NASDAQ and NASDAQ 100 have tested their 50-day several times since February 23,
six days for the NASDAQ with the 50-day now at 2742.35 and four days for the
NASDAQ 100 with the 50-day now at 2314.18. The Russell 2000 tested and held its 50-
day on February 22 and February 23 and today the 50-day is 802.42. The Philadelphia
Semiconductor index tested and held its 50-day the past two days at 444.47 and has
been above the 50-day since September 24. Dow Transports has been below its 50-day
since February 22 and has been tested as resistance twice, and closed above 5111
yesterday. A weekly close above the five-week shifts Transports to neutral delaying the
market top.
My annual value level is 11,491 with daily, weekly and monthly risky levels at
12,249, 12,483 and 12,741. The five-week modified moving average has been
tested in each of the past three weeks and this week the average is 12,060.
• The S&P 500 (1321.8) Libya Trading Range: 1294 to 1344. My quarterly value
level is 1262.5 with daily, weekly and monthly risky levels at 1331.2, 1350.3 and
1381.3. The five-week modified moving average has been tested in each of the
past three weeks and this week the average is 1307.
level is 2629 with daily, weekly, quarterly and monthly risky levels at 2798, 2829,
2853 and 2926. The NASDAQ traded below its five-week modified moving
average in each of the past three weeks without a weekly close below, and this
week the average is 2755.
• The NASDAQ 100 (2338) Libya Trading Range: 2285 to 2403. My monthly value
level is 2250 with daily, weekly, quarterly, and monthly risky levels at 2370, 2398,
2438 and 2499. The NASDAQ 100 traded below its five-week modified moving
average in each of the past three weeks without a weekly close below, and this
week the average is 2327.
• Dow Transports (5147) Libya Trading Range: 4918 to 5306. My quarterly value
level is 4671 with weekly, daily and annual pivots at 5052, 5119 and 5179. The
Transports closed below its five-week modified moving average in each of the
two weeks with declining momentum, which is a negative weekly chart profile. A
close above this week’s five-week at 5111 shifts the weekly chart to neutral.
• The Russell 2000 (824.66) Libya Trading Range: 795 to 838. My quarterly value
level is 765.50 with weekly, daily and monthly risky levels at 831.09, 835.56 and
850.79. The five-week modified moving average has been tested in each of the
past three weeks and this week the average is 810.47.
• The Philadelphia Semiconductor Index (447.94) Libya Trading Range: 439 to
474. My monthly value level is 402.46 with a monthly pivot at 453.89, daily and
quarterly pivots at 458.32 and 465.93, and weekly risky level at 485.92. The five-
week modified moving average has been tested in each of the past three weeks
and this week the average is 450.51.
The trading strategy in this environment is what I have been calling "Buy and Trade,"
where you buy weakness to a value level and sell strength to a risky level. Here are the
guidelines.
Buy and Trade Strategies for Long Positions
• Value Level – The price at which you establish an additional long position
on share price weakness. This is done on a GTC Limit Order to buy weakness
to the Value Level.
• Risky Level – The price at which you remove a single long position or
reduce a multiple long position on share price strength. This is done on a
GTC Limit Order to sell strength to the Risky Level.
Buy and Trade Strategies for Short Positions
• Value Level – The price at which you remove a single short position or
reduce a multiple short position on share price weakness. This is done on a
GTC Limit Order to buy weakness to the Value Level.
• Risky Level – The price at which you establish an addition short position
on share price strength. This is done on a GTC Limit Order to sell strength to
the Risky Level.
10-Year Note – (3.542) Weekly, annual, and semiannual value levels are 3.642, 3.796
and 4.268 with a daily pivot at 3.523, and monthly, annual, and semiannual risky levels
at, 3.002, 2.690 and 2.441.
levels are $1385.4, $1356.5, $1331.3, $1300.6 and $1187.2 with monthly and quarterly
pivots at $1437.7 and $1441.7, and daily and semiannual risky levels at $1450.1 and
$1452.6.
semiannual, daily and quarterly risky levels are $107.14, $107.71 and $110.87.
The Euro – (1.3900) My quarterly value level is 1.3227 with a daily pivot at 1.3953, and
weekly, semiannual and monthly risky levels at 1.4446, 1.4624 and 1.4637.
Daily Dow: (12,214)Annual, quarterly, semiannual, and semiannual value levels are
11,491, 11,395, 10,959, and 9,449 with daily, weekly, monthly and annual risky levels at
12,249, 12,484, 12,741 and 13,890.’
21 Signs Of Impending Doom For The 2011 Economy ‘If you are not aware of how
rapidly the global economic situation is unraveling you need to snap out of it
and start paying attention. The world economy was relatively stable in 2010,
but here in 2011 things are deteriorating very quickly.
The American Dream

Wednesday, March 9, 2011
If you are not aware of how rapidly the global economic situation is unraveling you need
to snap out of it and start paying attention. The world economy was relatively stable in
2010, but here in 2011 things are deteriorating very quickly. Right now there is major
civil unrest in at least a dozen different nations in Africa and the Middle East. The civil
war going on in Libya has sent the price of oil skyrocketing and the protests that are
scheduled to begin in Saudi Arabia later this month could send oil prices even higher.
Meanwhile, the sovereign debt crisis in Europe just seems to get worse by the day.
Several nations in Europe are suddenly finding that it has become extremely expensive
to finance more debt. It appears that it will only be a matter of time before more bailouts
are needed. Meanwhile, the United States is also covered in a sea of red ink and the
economic situation in the largest economy on earth continues to deteriorate rapidly. It is
as if the entire world financial system has caught a virus that it just can’t shake, and now
it looks like another massive wave of financial disaster could be about to strike. Does
the global economy have enough strength to weather a major oil crisis in 2011? How
much debt can the largest nations in North America and Europe take on before the
entire system collapses under the weight? Will 2011 be a repeat of 2008 or are we
going to be able to get through the rest of the year okay? Only time will tell.
But it is quickly becoming clear that we are reaching a tipping point. If the price of oil
keeps going up, all hopes for any kind of an “economic recovery” will be completely
wiped out. But if the globe does experience another economic slowdown, it could
potentially turn the simmering sovereign debt crisis into an absolute nightmare. The
U.S. and most nations in Europe are having a very difficult time servicing their debts
and they desperately need tax revenues to increase. If another major economic
downturn causes tax revenues to go down again it could unleash absolute chaos on
world financial markets.
The global economy is more interconnected than ever, and so a major crisis in one area
of the world can have a cascading effect on the rest of the globe. Just as we saw back
in 2008, if financial disaster strikes nobody is going to escape completely unscathed.
So what should we expect for the rest of 2011? Well, the truth is that it doesn’t look
good. The following are 21 signs of impending doom for the 2011 economy….
#1 The civil war in Libya now looks like it could drag on for an extended period of time,
and that is likely to drive the global price of oil even higher.
#2 Barack Obama is publicly saying that NATO is now considering “potential military
options” for solving the crisis in Libya.
#3 Kuwait exports more oil than Libya does, and it looks like the civil unrest that has
been sweeping the rest of the Middle East is now starting to spread to that country.
#4 In Saudi Arabia, protest groups are planning a “Day of Rage” on March 11th. If a
revolution breaks out in that nation the entire global economy is going to be thrown into
turmoil.
#5 The average price of a gallon of gasoline in the United States increased by 33 cents
during the two-week period that ended last Friday.
#6 According to the Oil Price Information Service, U.S. drivers spent an average of $347
on gasoline during the month of February, which was 30 percent more than a year
earlier.
#7 It is being reported that the average price of a gallon of gasoline in Europe has hit an
all-time record of $8.63 a gallon.
#8 Ivory Coast produces nearly 40 percent of all the cocoa in the world and protests
against the government there are becoming increasingly violent. If this violence
continues to escalate you will soon be paying a lot more for chocolate.
#9 The yield on 10-year Portuguese bonds has increased to 7.6%.
#10 The yield on 10-year Irish bonds has soared to 8.1%.
#11 The yield on 10-year Greek bonds has skyrocketed to a whopping 12.8%.
#12 Moody’s Investors Service has reduced the rating of Greek government debt three
levels all the way down to B1.
#13 According to the United Nations, the global price of food set another brand new
record high during the month of February. That was the 8th month in a row that global
food prices have gone up.
#14 According to the World Bank, global food prices have soared 29% over the last 12
months.
#15 The United Nations is projecting that the global price of food will increase by
another 30 percent by the end of 2011.
#16 23 percent of all residential properties with a mortgage in the U.S. were in negative
equity as of the end of 2010.
#17 In the state of Nevada, approximately 65 percent of all homeowners with a

mortgage owe more on their mortgages than their homes are worth.
#18 Two years ago, the average U.S. homeowner that was being foreclosed upon had
not made a mortgage payment in 11 months. Today, the average U.S. homeowner that
is being foreclosed upon has not made a mortgage payment in 17 months.
#19 Since 2005, the United States has shelled out 1.1 trillion dollars for products from
China but China has only spent 272 billion dollars on products from the United States.
This trade imbalance is causing the global financial system to become increasingly
unstable.
#20 Collectively, the 50 U.S. state governments are facing a budget shortfall of 125
billion dollars for fiscal 2012.
#21 The U.S. government had a budget deficit of 233 billion dollars during the month of
February, which was the largest federal budget deficit ever recorded for a single month.
We are living in the middle of the biggest debt bubble in the history of the world…’
Faber: Oil will go up ‘ballistically’ if unrest shifts to Saudi Arabia Business
Intelligence Middle East | Marc Faber sees oil prices extending their bull run
despite the 15% run-up this year alone.
Oil hovers around $105 CNNMoney.com | The benchmark U.S. oil contract was up
35 cents to $105.37 a barrel for April delivery.
Bank Economist Warns of ‘Food Price Riots in the UK’ SkyNews | A senior
economist at the worldwide bank HSBC has warned of civil unrest in Britain if
food prices continue to soar.
Oil markets brace for Saudi ‘rage’ as global spare capacity wears thin Those
exhorting OPEC to boost output should be careful what they wish for. The
cartel card can be played once only, and it risks exposing the fragility of the
global energy system if the Gulf powers are seen struggling to deliver.
HOW IT WILL ALL END : Debt Jubilee or WWIII ? Bob Chapman talks about the
crumbling economy and how it will implode.
Warning Of ‘Food Price Riots In The UK’ A senior economist at the worldwide
bank HSBC has warned of civil unrest in Britain if food prices continue to
soar.
Currency Wars: Flash Points in the ‘Age of Rage’ The conflict in North Africa was
a predictable outcome of the US Monetary Policy of Quantitative Easing. It is
not plausible that the US Federal Reserve, as the manager of the world’s
Reserve Currency, did not fully recognize the global ramifications of such
monetary inflation actions well in advance.
National / World
Jesse Jackson, Jr.’s Communist Bill of Rights Kurt Nimmo | Jackson’s speech is
like something right out of the CPUSA playbook.
Soros: Communist Chinese Model Of Order May Become “The Envy Of The
World” “Western democracies provide less successful leadership than
China”
Day Of Rage: Saudi Arabia In Veiled Threat To US Paul Joseph Watson | Saudi
Foreign Minister threatens to “cut foreign fingers” in event of outside
intervention after US sided with protesters.
Corporate Media Coverage of Libya is a Psyop Kurt Nimmo | Only by destroying

the oil-based economy can the globalists forge ahead with their plan to
implement world authoritarian government.
Kansas House Panel Endorses Pension Cuts KMBC.com | The bill is likely to draw
opposition from public employees’ and retirees’ groups.
Day Of Rage: Saudi Arabia In Veiled Threat To US As the world braces itself for
Saudi Arabia’s “day of rage” on Friday, which many fear could be the spark
that sends oil prices soaring to beyond the $200 a barrel mark, Saudi
Foreign Minister Prince Saud Al-Faisal issued a veiled threat to the United
States, warning that the Kingdom was prepared to “cut foreign fingers” in
the event of any outside interference.
Soros: Communist Chinese Model Of Order May Become “The Envy Of The
World” Billionaire investor George Soros has once again cited China’s
dictatorship as the model for the rest of the world in a speech at an elite
gathering in Europe.
BIG SIS BUSTED: Homeland Security Undercover Pedophile Entrapment Website

Suspended In an aggressive bid to entice prospective “sex tourists,” the
Department of Homeland Security last year launched an undercover web site
that purported to arrange trips from the U.S. to Canada, where clients could
engage in sexual activity with minors, The Smoking Gun has learned.
Corporate Media Coverage of Libya is a Psyop In the interview here, war

correspondent Keith Harmon Snow spells out how the lopsided coverage of
the conflict in Libya is a Pentagon psyop. The psyop is particularly evident
on CNN, especially on Anderson Cooper’s show.
Lawmaker Warns TSA Harassment Coming To Sidewalks The lawmaker behind a

bill aimed at curtailing TSA grope downs and naked body scanners warns
that Americans will be subjected to such harassment on sidewalks and at
football games if the TSA is not stopped in its tracks now, but in reality,
TSA-style measures have already been aggressively expanded well beyond
airports.
FEATURED INFOWARS STORIES ARCHIVE
U.S., allies weigh operations near Libya Humanitarian aid delivery, no-fly zone
are under consideration (Washington Post) [ Weigh? As on a scale … of 1 to 10
… we all know how well pervasively corrupt, defacto bankrupt america and allies
are at weigh-ins … weighing … so much so, they’re set to star that tv program,
‘The Biggest Loser(s)’ … Update: Drudgereport: Libya Tanks Move In To Crush
Rebel Stronghold...
SHEEN SETS 'FINAL' WEBCAST
Gadhafi Deploys Tanks, Hundreds of Troops in New Assaults...
...Denies talk he's looking for exit
WITNESSES: Women and Children Killed...
Libyan tanks, planes bombard Zawiyah; rebels still hold 'Martyrs' Square'...
Libyan central bank chief goes missing...
...Loyalty unknown
East-West military gap 'rapidly shrinking'...
China could match US military power in 10-15 years...
U.K. Warned of Food Riots...
Ahmadinejad calls for new world order...

tuned...’
The Terrible Twos? Let's All Hope Not [ Hoping doesn’t change reality. Take your
gains, sell while you can in this manipulated bull cycle on debased dollar in this
secular bear market. ] Bespoke Investment Group ‘After falling 22% over the last
month and a whopping 57% from its highs less than a year and a half earlier, the
S&P 500 (SPY) closed the day on March 9th, 2009, at 676.53. Had you asked 100
people that day where the index would be trading in two years, you likely could
have counted on one hand the number that said higher than 1,300.Tomorrow
marks the two-year anniversary of the current bull market, and the S&P 500 is
now trading at 1,324, or 96% above its closing level on 3/9/09. Below is a chart of
the S&P 500 since October 9th, 2007, which is the day that the index made its all-
time high of 1,565.15. The bear market from 10/9/07 to 3/9/09 is highlighted in red,
and the bull market that started on 3/9/09 is highlighted in green.
(Click charts to expand)
[chart]
Below is a table highlighting the performance of key ETFs across asset classes
since the bull market began on 3/9/09 as well as since 10/9/07 when the S&P 500
made its all-time high and the prior bear market started. For each asset class, the
best and worst performing ETF is shaded in light red and light green over each
time period.While many ETFs are up more than 100% since the bull market began,
only a handful are up from their 10/9/07 levels. The Nasdaq-100 tracking QQQQ is
one of them with a gain of 8% since 10/9/07. The S&P Midcap 400 ETF (IJH) is also
up, along with the Midcap 400 Growth ETF (IJK) and the Smallcap 600 Growth
ETF (IJT). Three sector ETFs are now above the level they were at when the
market made its all-time high on 10/9/07 -- Consumer Discretionary (XLY),
Consumer Staples (XLP), and Energy (XLE). The Silver trust (SLV) is up the most
of all securities shown since 10/9/07 with a gain of 160.47%, while Gold (GLD) is
up the second most at 90.33%. And all but one (TLT) of the fixed income ETFs are
in the black versus where they were trading when equities hit their all-time
highs.Since 3/9/09, the Russia ETF (RSX) has been the best performer in the
entire table with a gain of 247.54%. The Smallcap 600 Growth ETF (IJT) has been
the best performing US market index ETF with a gain of 144.78%, while the
Financials ETF (XLF) has been the best performing sector ETF during the bull
market. Unsurprisingly, UNG -- which is supposed to track natural gas -- has been
the worst performer since 3/9/09 with a decline of 66.69%!
[chart]
Beware of the Ides of March Suttmeier ‘The first quarter of 2011 could turn out to
be a multi-year selling opportunity, just as March 2009 was a multi-year buying
opportunity. On March 5, 2009, 91% of all stocks were undervalued and all 11
sectors were undervalued by more than 30%. Wall Street and hence Main Street
missed this golden opportunity to buy stocks. In early March 2009, I made the call
that stocks would rally 40% to 50%. I proved to be too pessimistic. Since then the
Dow Industrial Average (DIA) is up 86.9% with the S&P 500 (SPY) up 96.4% and
the NASDAQ (QQQQ) up 117.0%. With stocks overvalued and weekly charts
overbought with the exception of Transports now is not the time to increase
allocation to stocks, it’s the time to decrease stock allocations.
The Housing Market was the first to provide warnings as The Housing Index
topped out in July 2005 and today is 62.0% below that high, with housing
currently at risk of renewed weakness.
The America’s Community Bankers Index (ABAQ) peaked in December 2006 and
today is 49.0% below that high. The FDIC List of Problem Banks rose by 24 in the
fourth quarter to 884 from 860, which is 11.5% of the 7,657 FDIC-insured financial
institutions. When I drill down into the FDIC data I find 2623, or 34.3% of all
community banks overexposed to commercial real estate loans, and 58.5% of all
banks have a real estate loan pipeline that’s 80% or more funded, which is
continued stress.
The Regional Bankers Index (BKX) peaked in March 2007 and today is 57.2%
below that high. The “too big to fail” banks are bigger and the BKX is down
fractionally so far in 2011. Under Dodd-Frank some of these banks will need to
raise capital, and face heavier FDIC deposit insurance fund assessments
beginning in April.
Total Assets in the banking system declined $51.8 billion in the 4th quarter 2010
with C&D loans down $32.5 billion. Even so C&D loans still total $321.6 billion
with nonfarm, non-residential real estate loans at $1.07 trillion and problem loans
continue to clog bank balance sheets.
ValuEngine Valuation Warnings on February 18th and March 3rd marked tradable
highs for stocks. To confirm a market top all weekly charts must shift to negative.
The major equity averages remain below their February 18th highs when the Dow
Industrial Average reached 12,391. My proprietary analytics still show weekly and
monthly resistances, to limit the upside even if some of the averages continue to
new highs. Market weakness on Friday and Monday resulted in a reduction of
overvalued stocks to 60.5%, below 65%. We show 15 of 16 sectors overvalued, six
by double-digit percentages.
My annual value level is 11,491 with daily, weekly and monthly risky levels
at 12,152, 12,483 and 12,741.
• The S&P 500 (1310.1) Libya Trading Range: 1294 to 1344. My quarterly
value level is 1262.5 with daily, weekly and monthly risky levels at 1323.8,
1350.3 and 1381.3.
level is 2629 with daily, weekly, quarterly and monthly risky levels at 2802,
2829, 2853 and 2926.
• The NASDAQ 100 (NDX) (2328) Libya Trading Range: 2285 to 2403. My
monthly value level is 2250 with daily, weekly, quarterly, and monthly risky
levels at 2375, 2398, 2438 and 2499.
• Dow Transports (5018) Libya Trading Range: 4918 to 5306. My quarterly
value level is 4671 with daily, weekly and annual pivots at 5082, 5052 and
5179.
• The Russell 2000 (824.99) Libya Trading Range: 795 to 838. Daily and
quarterly value levels are 819.50 and 765.50 with monthly risky level at
850.79.
439 to 474. My monthly value level is 402.46 with a monthly pivot at 453.89,
a quarterly pivot at 465.93 and daily and weekly risky levels at 466.70 and
485.92.
10-Year Note – (3.514) Weekly, annual, and semiannual value levels are 3.642,
3.796 and 4.268 with daily, monthly, annual and semiannual risky levels are 3.449,
3.002, 2.690, 2.441, and 2.322.
levels are $1385.4, $1356.5, $1331.3, $1300.6 and $1187.2 with monthly and
quarterly pivots at $1437.7 and $1441.7, and my semiannual risky level at $1452.6.
semiannual and quarterly risky levels are $107.14 and $110.87.
The Euro – (1.3971) My quarterly value level is 1.3227 with a daily pivot at 1.4001,
and weekly, semiannual and monthly risky levels at 1.4446, 1.4624 and 1.4637.
Daily Dow: (12,090) Annual, quarterly, semiannual, and semiannual value levels
are 11,491, 11,395, 10,959, and 9,449 with daily, weekly, monthly and annual risky
levels at 12,152, 12,484, 12,741 and 13,890.’
Now's the Time to Decrease Stock Allocations
[video]Summer Bears Will Threaten Two-Year Bull Run
Hoyer Says Federal Budget May Not Be Balanced for 20 Years Matt Cover | Hoyer
said Republicans and Democrats must compromise if they are ever going to
solve the nation’s budget issues.
Trust is Necessary for a Stable Economy Washington’s Blog | Prosecuting the
criminals Is necessary to restore trust.
Saudi Arabia’s ‘Day of Rage’ Lures Record Bets on $200 Oil: Chart of Day
Bloomberg | Options traders are betting more than ever that crude oil is heading
to $200 a barrel.
Oil Breakout Alert – Kuwait, World’s Fourth Largest Oil Exporter, Joins
Demonstrations Demanding Regime Change Crude dropped overnight, after
the FT joined the BBC in the “False Rumor Spreading Korner”, after the
Libyan Investment Authority held newspaper said some OPEC members are
looking to raise oil output to avoid any supply shortfalls.
Will The Day Of Rage In Saudi Arabia On March 11 Send The Price Of Oil Into
Unprecedented Territory? The price of oil is shaping up to be the number
one economic story of 2011, and right now the eyes of the investing world
are closely watching the developing situation in Saudi Arabia.
No Silver? No Problem: US Mint Would Like To Know If You Will Accept Brass,
Steel, Iron Or Tungsten Coins Instead Wonder why the US mint has not sold
a single ounce of silver so far in March? Here is a clue…
National / World
Paul: Let public vote on judges Texas Rep. Ron Paul said on Monday that
Americans should have the same right to oust federal judges as Iowans did
with their historic vote last November to remove three State Supreme Court
justices.
Homeland Security Says It Has Every Right To Spy On Peaceful Protest Groups
Steve Watson | The Department Of Homeland Security has decided it is
reasonable for it to spy on dozens of peaceful groups.
Oil Shock: Banksters Ready QE3 Asset Bubble Kurt Nimmo | QE is forever.
TSA Worker Arrested for Impersonating a Police Officer Steve Watson | A TSA
worker claimed he had the same authority as a police officer.
Obama Mimics Bush: Libyan Intervention Ahead Michael S. Rozeff | The American
empire stands at the edge of disintegration.
Deluded TSA Worker Arrested After Telling Cop “I’m A Customs Inspector” The
actions of a TSA worker who was pulled over during a routine traffic stop
betray the general attitude of the TSA in recent month, that the agency is
above the law and makes its own rules.
President Obama Issues Executive Order Institutionalizing Indefinite Detention

President Obama today issued an executive order that permits ongoing
indefinite detention of Guantánamo detainees while establishing a periodic
administrative review process for them. The administration also announced
it will lift the ban on bringing new military commissions charges against
detainees that don’t already have ongoing cases in the substandard system.
MSM Hyped Reports Of Bombardment Give False Picture Of Tripoli Libya’s
opposition has told Colonel Gaddafi, if he leaves the country now … they
won’t put him on trial. But Libyan state TV has broadcast denials that
Gaddafi offered to quit if his family were allowed to safely leave the country.
Just a week ago media reports suggested that Gaddafi was close to total
defeat. But today he’s still there, and news of his downfall proved to be
exaggerated. RT’s Paula Slier went to Tripoli to uncover how things really
stand.
British Tax Protesters Arrest Judge In Act Of “Lawful Rebellion” For those
wondering whether we can expect to see anything like the scenes witnessed
in Egypt coming to America or the United Kingdom, the actions of British
protesters who engaged in “lawful rebellion” by attempting to arrest a judge
yesterday could herald the beginning of a new tax revolt to rival the
infamous poll tax riots of 1990.
Why is Hillary Not Defending the Rights of Saudis to Protest? Secretary of State
Hillary Clinton had been exhaustively in front of cameras promoting the right
for people to protest in Egypt, Bahrain, Iran, and Libya.
Kissinger urges Obama: Grant clemency to Israeli Spy [ The zionist kissinger
shows colors in urging a self-destructive path for wobama. ] Former U.S.
Secretary of State Henry Kissinger sent a letter to U.S. President Barack
Obama on Monday, urging him to commute the prison term of Jonathan
Pollard, who is serving a life term for spying for Israel.
Chinese military ‘growing fast’: think tank China is building its military capability
at a rapid pace but it remains a “regional power with regional concerns”, the
think tank IISS said in its annual report on the world’s armies on Tuesday.
Gaddafi forces engage in fierce battle Regime loyalists in Libya mount assaults
to reclaim ground (Washington Post) [ 41 years in power … Hey, when
interviewed by Charlie Sheen on SNL he seemed rather spry …
] With neither side able to muster overwhelming force, the result appeared to be
a bloody stalemate, with the death tolls rising in both east and west.
Obama creates indefinite detention system for prisoners at Guantanamo Bay

(Washington Post) [ Sounds more like fellow failed president/war criminal
dumbya bush every day. Meanwhile, back at the pervasively corrupt, defacto
bankrupt american credit farm (totalitarian communist china): New restrictions on
foreign journalists Under rules announced after foreign journalists were
physically harassed by security officers, foreign journalists must have
government permission to interview anyone in a public area.]
Gates successor a quandary for Obama (Washington Post) [ Quandary? For
‘wobama the b’ (for b*** s***)? I don’t think so! Like wobama, he or she must
speak out of both sides of his/her mouth, be particularly adept at lying (cia-
speak), and believe in absolutely nothing (no core values/beliefs). Gates says
killing of Afghan boys a "setback" (Reuters) [Ah, yes, riiiiight! … that’s what it is,
alright…just a setback…I see. ] Gates: US military to stay in Afghanistan US
Defense Secretary Robert Gates, who is on a surprise visit to Afghanistan, says
the American military should stay in the conflict-riddled country despite the rising
human costs. Violent spring looming in Afghanistan (Washington Post) [ See …
something to look forward to … must be that good news that keeps getting
pushed back … and spring no less … everything bombing blooming or in war
criminal american-speak … ‘booming’ … but not the defacto bankrupt american
economy for which a crash is ‘looming’. Could somebody help me out with a
translation of gates’ speech a west point … I must be missing something … Lt.
Gen. John Kelly, who lost son to war, says U.S. largely unaware of sacrifice
unemployment lines, use food stamps to get by, etc.. I hate to sound cavalier and
I’m sorry that Kelly lost a son to war, but along with the multitude of civilians in
the nations unlucky enough to provide a source of corporate welfare to the
military industrial complex and war profiteering for the few (as warned against by
President General Eisenhower), they died for nothing, for no good reason beyond
the false propaganda. Six NATO troops killed in Afghanistan (Washington Post)
[ Is there something wrong with the following picture? … am I missing
something? … Gates's warning: Avoid land war in Asia, Middle East, and
Africa Christian Science Monitor - In a speech to cadets at the United States
Military Academy at West Point, Gates's message was clear: The US military
services, as well as the elected and appointed civilians who send them to war,
need better ways of foreseeing and preparing for ... Gates Tells US Army to
Take New Approach Voice of America Warning Against Wars Like Iraq and
Afghanistan New York Times [ Better said, than unsaid; but, methinks a bit late
for that in light of pervasively corrupt, defacto bankrupt america’s consummate
decline and fall! If only they had listened and not shot at the messenger … things
could have been different! ] ] American military officials expect that the
Taliban will mount a campaign to regain ground lost to U.S. troops last year and
use suicide bombing teams to strike at those associated with the Afghan
government or coalition forces. ]
Investors Whiplashed: Dave's Daily ‘As stated I'm away at a family reunion in Las
Vegas. It's an appropriate place from which to view markets. Since the action is
so crazy, no mere mortal, even with nearly 40 years experience, can make sense
of it. So, in the interest of clarity (not to mention the family), I'll make only a
couple of comments and just post a few charts. Yes, the unemployment data
came in about as expected but wage growth was limited (who knew?!) and banks
were downgraded by another bank, BAC. Not a nice thing to do to your pals. With
MENA unrest near all time highs and oil prices exploding higher who would want
to be casually long the markets heading into the weekend? But, someone (let's
just guess shall we?) with the power to close this week higher launched a serious
"stick save" late to do just that. This was gross manipulation. Volume was higher
on selling once again as no doubt stops were hit once again. Meanwhile, per the
WSJ, breadth was negative. ‘
Financialization and Our Increasingly Unstable Economy Roche ‘I finally got

around to seeing the movie Inside Job, the story behind the credit crisis and
by deregulation and sheer greed.
A combination of flawed economic theory and greed have combined to create the
beast that we now call a “functioning” economy. The worst part of it all is that
President Obama, who vowed change, has done almost nothing to fix any of it
and in fact continues most of the policies that helped get us here in the first
place.
In his latest letter Howard Marks touches on the regulatory debate. He says:
A great source on the subject is Wall Street Under Oath, a 1939 book
on the causes of the Great Crash of 1929 written by Ferdinand
Pecora, who was counsel to the Senate committee investigating the
crash and later a New York State judge. I first read it about twenty
years ago, and I brought it out of storage in 2007. It is a typical
polemic, assigning blame and touting regulation pursuant to what I
assume were the author’s philosophical/political biases (see page 4).
Pecora describes a Wall Street that, up to and including the 1920s,

was like the Wild West. Bankers and brokers were out to make
money for themselves; their behavior was largely unregulated; and
conflicts between their interests and those of their clients were
widespread and disregarded. In particular, according to Pecora,
disclosure standards were non-existent.
These facts combined with other causes to produce a market crash

of epic proportions; widespread losses; a drying up of capital;
deflation; and a massive depression with a resulting increase in
unemployment to 25%. Unsurprisingly, fingers were pointed at the
prior administration and political power shifted to believers in an
activist role for government. The most lasting result was the
enactment of laws that governed the financial system for decades
and in many cases still do: the Securities Act, the Securities and
Exchange Act, and the Glass-Steagall Act. Thus the 1930s saw a
massive swing of the pendulum in favor of regulation.
The next several decades on Wall Street were – perhaps thanks to

the impact of those laws – a relatively placid period. This led to a
view that, with rare exceptions, market participants are well-behaved
by nature. Further, steady growth with only moderate dips caused a
perception of an inherently benign and productive economy that
could achieve even more if only the regulatory shackles were
loosened. After President Carter deregulated the transportation
industry in the late 1970s, the door was open for much of the
regulatory apparatus built in the early part of the century to be
relaxed. Ronald Reagan, whose famously free-market views
coincided with a period of peace and prosperity, led the deregulatory
charge. We saw a similar turn in Britain under the leadership of
Margaret Thatcher; the collapse of the USSR and a resounding
victory for capitalism; and the ascendance of free market adherents
Alan Greenspan and George W. Bush.
With the economy and financial system generating prosperity,

people wanted more of the same. And with manufacturing in decline,
we relied heavily on the financial sector for an increased contribution
to GDP, job creation and standards of living. The prevailing view was
that the less regulation we had, the more productive business and
finance could be. And what was there to be feared from an
unregulated economy, anyway? The result in the past decade,
according to a great newspaper quote that sadly I can’t locate, was
“the kind of regulation you get from an administration that doesn’t
believe in regulation.”
Thus, coming full circle from the 1930s, starting in 1999 we saw
revocation of Glass-Steagall; elimination of the up-tick rule limiting
short sales to instances when stock prices were rising; a pivotal
decision to exempt derivatives from regulation; increased permitted
leverage at investment banks; and starvation of regulatory agency
budgets. These developments were followed by the global financial
crisis of 2007-08. Coincidence or causality?
No, it’s most certainly not a coincidence. Marks goes on to argue that the markets
and regulations will never be perfect so our economy will continue to be
imperfect. It’s a rather defeatist and general attitude if you ask me. I think there
are fairly basic rules that can and should be implemented that limit the potential
outlier events from occurring. For instance, collateral on OTC derivatives would
have substantially reduced the risks at the investment banks. Leverage limits.
Higher capital standards. How about requiring down payments on homes? These
are simple rules that eliminate the potential for some of the incredible risks we’ve
seen over the last 25 years.
I am not an advocate of highly strict rules, just common sense rules. The fact that
the NINJA loan ever even came into existence is a clear sign that allowing the
markets to regulate themselves is bordering on insanity. Such lack of rules in
capitalism is guaranteed to result in putting greed before rationality. I don’t want
to contain capitalism. But I do want to keep it from destroying itself. That is the
path we are on and the increasing instability upon which we build each recovery
is a clear example….
In the movie, a prominent paper is mentioned written by Raghuram Rajan, a
professor of Economics at the Chicago School. He shows how the
financialization of the US economy is creating an increasingly unstable economy.
Make no mistake, markets are not self regulating. This nonsense that government
should never oversee the free market is disastrous policy that is driven by a
misguided and dogmatic political perspective and a purely greed driven banking
system. It’s a great weekend read. Enjoy. ‘
Fed Has Convinced Consumers to Re-Leverage [ Sounds like a plan! … albeit a

failed plan ala greenspan … this encore courtesy of ‘’no-recession helicopter ben
shalom bernanke’ … anything for that irrationally exuberant feeling on wall street
…. Bubbles, bubbles, everywhere, but not a bloke to blink. ] Roche ‘Despite
lopsided balance sheets and near record levels of household debt the Fed
appears to have succeeded in convincing American households that it is wise to
begin re-leveraging. The Fed’s latest consumer credit report showed broad
improvement in consumer credit trends (via Econoday):
"Consumer credit outstanding in December rose $6.1

billion showing, for the first time in the recovery, gains
for both revolving and non-revolving credit. Revolving
credit, up $2.3 billion, rose for the first time in 27
months. Non-revolving credit, reflecting strength in
vehicle sales, extended its run of strength with a gain of
$3.8 billion. Looking ahead to January’s number, there
may be some modest help from motor vehicle sales
which edged up 0.6 percent for the month but the
amount boosting consumer credit will depend in part on
the share split of sales to consumers and to
businesses."
[chart]
(Click to enlarge)
As I’ve previously mentioned, this is great news for the near-term economic
outlook. A re-leveraging consumer means more spending, higher corporate
revenues, etc. My hope was that a 10% deficit would result in consumers
continuing to de-leverage, however, that looks like wishful thinking. Instead, the
combination of easy money and no loser capitalism appears to be setting the
foundation for another debt binge. At a level of 115% of debt:income, this trend is
clearly unsustainable, however, the American public appears intent on sustaining
its fiscal imprudence. In short, enjoy the growth, however, once the deficit
shrinks or another asset bubble pops the air is going to come out of the debt
bubble once again and the upside down U.S. consumer will again be exposed as
the imprudent consumer that he/she is...’
Flashback: Comprehensive Annual Financial Reports Exposed Infowars | There is

no reason for continued taxation, the government has a secret slush fund and in
the meantime is telling you that they’re broke.
Iran oil wealth ‘must be shared’ with citizens says Soros BBC | Citizens of oil
producing nations must see more benefit from their country’s national resources,
says billionaire.
Former Goldman director charged with insider trading Globe & Mail | Raj
Rajaratnam, the founder of hedge fund Galleon Group, is on trial on criminal
insider-trading charges.
Gas up 33 cents — second biggest two-week jump ever Reuters | The national
average for a gallon of self-serve, regular gas was $3.50 on March 4.
Saudi Stock Market Tumbles as Fear of Revolt Grows The Telegraph | Triggered
by the arrest of Shi’ite cleric after he called for democratic reforms.
Flashback: Comprehensive Annual Financial Reports Exposed Infowars | There is

no reason for continued taxation, the government has a secret slush fund and in
the meantime is telling you that they’re broke.
The Shadow King Of Wall Street: “Markets Like Totalitarian Governments” Wall
Street’s shadow king, Blackrock’s Larry Fink who manages over $3 trillion,
and is the world’s biggest asset manager, appeared on Bloomberg TV in an
interview with Erik Schatzker, and the first thing he said is that the “market
likes totalitarian governments.” Matt Damon Thinks Obama Is Working For
Wall Street
Big Brother: The Orwellian Nightmare Come True When George Orwell (pen name
of Eric Blair) first published his famous novel, Nineteen Eighty-Four, it was
the year 1949, and it told a dark story of what he envisioned life may be like
in the future-in the year 1984.
Britain at risk of another financial crisis, Bank of England chief warns Britain
risks suffering another financial crisis without reform of the country’s banks,
the Governor of the Bank of England warns today.
Oil Price Shock; You Ain’t Seen Nothing Yet The most common cause of a
spiking oil price is supply shock. We may be seeing just such a phenonenon
right now with the effective shut down of Libyan oil. But sometimes it’s
excessive demand that does the damage.
Wisconsin Governor To Issue 1500 Layoff Notices Unless Fugitive Democrats

Return To The State In addition to “stagflation” which we announced in
January would be the word of the year, we now have a new contender in the
running for what may soon be the most popular word for the next 10
months: “escalation.”
The Fed Distorts The Economy With Inflation The Federal Reserve tells us we
need inflation to overcome the overhang created by debt and its inflationary
aspects. The inflation does not create jobs – it just distorts prices upward.
Spain town reintroduces peseta to boost economy A small town in northern

Spain has decided to reintroduce the old Spanish currency – the peseta –
alongside the euro to give the local economy a lift.
QE2: An Unmitigated Disaster
[video] Summer Bears Will Threaten Two-Year Bull Run
STOCKS DIVE, SILVER SURGES, TECH HAMMERED: Here's What You Need To
Know
More Jobs Mirage In February—BLS Continues To Overestimate Job Growth Paul

Craig Roberts | The announcement that 192,000 new jobs were created in
February was greeted with a sigh of relief.
Government’s biggest monthly deficit ever Washington Times | $223 billion,

according to the Congressional Budget Office.
Gas up 33 cents — second biggest two-week jump ever Reuters | The national
average for a gallon of self-serve, regular gas was $3.50 on March 4.
Oil, Gold, and Silver Prices Up as Saudi Arabia Faces Unrest Oil market
speculators used the escalating conflict in Libya as an excuse to jack up
crude prices to $106 per barrel today. Crude oil prices rose on news
opposition forces and soldiers loyal to Moammar Gadhafi clashed near
some of the country’s key energy infrastructure.
SocGen’s Three Scenarios For Oil See Crude Price Between $110 And $200 After
Nomura released a report two weeks back predicting oil could rise to $220 if
the MENA situation escalates, this morning SocGen’s Michael Wittner has
released his own scenario analysis on the possible outcomes of the 2011
revolutions.
More Jobs Mirage In February—BLS Continues To Overestimate Job Growth The

announcement on March 4 that 192,000 new jobs were created in February
was greeted with a sigh of relief. But the number is just more smoke and
mirrors, as I will show shortly. First, let’s pretend the jobs are real. What
areas of the economy produced the jobs?
Gold Surges, Hits New All Time High Of $1,437 After Precious Metals Talked Up
During PDAC Conference As the world continues to burn, gold hits a new all
time high of $1,437 as silver is en route to pass $36. Whatever shorts did not
cover on Friday night are strongly urged to postpone their “market top”
speculation until another day. Elsewhere Bernanke is still confused by what
the relentless march to daily all time highs in gold means…
National / World
Amtrak Chief Targets TSA For Conducting “Illegal” Grope Downs In late
February, the Transportation Security Administration took over the Amtrak
station in Savannah, Ga., and thoroughly searched every person who
entered. None of the passengers got into trouble, but the TSA certainly did
— big time.
Michael Moore’s Communist Rhetoric Distracts from Crimes of the Banksters
Last week, filmmaker Michael Moore declared war on the producers. Moore
told Laura Flanders of GRITtv that people who did not create trillions of
dollars of wealth are entitled to steal it from those who did. Private wealth,
Moore insisted, is a “national resource” that can be expropriated from the
producers and divided parasitically between the non-producers.
Oil And Gold Slip On Rumors Gaddafi Set To Flee Oil and gold pared some of
their soaring gains today after a rumor began circulating that Moammar
Gaddafi was seeking to reach an agreement with rebels that would allow him
to safely flee the country in return for relinquishing power.
Interventionism Leads to Resentment and Anti-Americanism Last week, Secretary

of State Hillary Clinton testified before the House Foreign Affairs Committee,
and I had the opportunity to raise some of my concerns regarding US
government policy and the cost of our interventionism around the world.
Michael Moore’s Communist Rhetoric Distracts from Crimes of the Banksters Kurt
Nimmo | Filmmaker says your hard-earned money is a national resource.
The Resistance Continues: More “The Answer to 1984″ Video Contest Entries
Infowars | Another great batch of video entries.
Oil And Gold Slip On Rumors Gaddafi Set To Flee Paul Joseph Watson | Libyan
leader has offered rebels deal to take power if safe exit of his family is
guaranteed, according to reports.
Oil, Gold, and Silver Prices Up as Saudi Arabia Faces Unrest Kurt Nimmo |
Protests planned in oil kingdom today as government promises to dispatch
10,000 troops to put down dissent.
Bill O’Reilly And Old Media: Not Waving But Drowning Paul Joseph Watson | The
establishment is so terrified of new media, they dare not mention Alex Jones
by name.
‘Egyptian army follows Israel, US orders’ Protests in Egypt gain momentum as

revolutionaries say they are set to disclose information incriminating senior
officials over their involvement in the violent crackdown on anti-regime
protests.
Libya: ‘Eight SAS Soldiers Held By Rebels’ Eight SAS soldiers have been
detained by rebels in Libya, according to Sky News sources.
Libya: Gaddafi Gunships Fire On Rebels Libyan helicopter gunships have fired on
rebels advancing along the coast towards the capital Tripoli.
Chinese state media slams calls for protests China’s state media stepped up its
criticism of calls for anti-government rallies on Sunday, saying stability is
key amid concern that unrest sweeping the Middle East could spread to the
Asian nation.
Saudis mobilise thousands of troops to quell growing revolt Saudi Arabia was
yesterday drafting up to 10,000 security personnel into its north-eastern Shia
Muslim provinces, clogging the highways into Dammam and other cities
with busloads of troops in fear of next week’s “day of rage” by what is now
called the “Hunayn Revolution”.
US Department of Imperial Expansion The illegitimacy of the current US State

Department fits in well with the overall Constitution-circumventing empire
that the American Republic has degenerated into. The current Secretary of
State, Hillary Clinton, gives a daily affirmation of this illegitimacy every time
she bellies up to the podium and further makes a mockery of America, its
people and its destiny.
Zbigniew Brzezinski Spouts Globalist Agenda on Al Jazeera Zbigniew Brzezinski:

We shouldn’t be the policeman of the world… but we should send troops
and warships to Libya.
Hey Bill O’Reilly: Alex Jones is a Patriot, And You’re a Clown Fox News host Bill
O’Reilly mentioned Alex Jones’s appearance on the View the other day,
calling him “some guy on the radio, we really don’t know who he is.” But as
Kurt Nimmo points out, O’Reilly is not totally out of the loop.
TSA, DHS plan massive mobile surveillance rollout Mike Adams | The DHS is
America’s new secret police.
US Department of Imperial Expansion Tony Cartalucci | The illegitimacy of the

current US State Department fits in well with the overall Constitution-
circumventing empire that the American Republic has degenerated into.
Senior Fed Economist Calls Ron Paul a Pinhead Robert Wenzel | If you think
destruction of a currency is no biggie, call Robert Mugabe in Zimbabwe.
Bill O’Reilly: Who Is Alex Jones? Kurt Nimmo | Fox News anchor with ratings in
decline feigns ignorance of growing alternative media.
People Of Earth: Prepare For Economic Disaster The Economic Collapse | It is not
just the United States that is headed for an economic collapse.
Don’t Worry, the Economy is Going to be Just Fine The American Dream | Haven’t
you heard? The coming economic collapse has officially been cancelled.
Rolling Stone: Glenn Beck Rips Off Alex Jones Infowars.com | Rolling Stone
Magazine has posted a part two to follow up on its profile of Alex Jones
earlier this week.
We’re On The March: More “Answer to 1984″ Video Contest Entries Infowars |
More entries for “The Answer to 1984 is 1776″ video contest.
Homicide case involving Daley nephew closed without charges Chicago Sun-
Times | Chicago Police said Friday they know who hit David Koschman and
knocked him to the ground in a drunken confrontation in the Rush Street area,
leading to his death.
Major Libyan oil plant ablaze Mail Online | A major Libyan oil plant was ablaze last
night as fresh fighting raged across the country leaving at least 50 dead.
Qaddafi’s Militia Storms Key Town Controlled by Rebels NY Times | Col.

Muammar el-Qaddafi’s militia stormed the rebels controlling the town of Zawiyah
on Saturday.
‘If the Americans Come, They Would Steal our Revolution’ Spiegel Online |
Opposition fighters claim they have driven back their attackers, but the battle is
far from finished.
Alex Jones: The Name Bill O’Reilly Dare Not Speak During a discussion on
Charlie Sheen, Fox News’ Bill O’Reilly mentioned Alex Jones’ appearance on
The View. He didn’t bother to mention Jones by name. O’Reilly said Jones is
merely “some guy on the radio, we really don’t know who he is,” and his co-
host during the segment, Arthel Neville, chuckled.
Don’t Worry, Be Happy: Unemployment Is Down, The Stock Market Is Up And The
Economy Is Going To Be Just Fine Haven’t you heard? The coming
economic collapse has officially been canceled. The U.S. economy is in full
recovery mode. It has just been announced that the U.S. unemployment rate
fell to 8.9% in February. That was the third monthly decline in a row.
People Of Earth: Prepare For Economic Disaster It is not just the United States
that is headed for an economic collapse. The truth is that the entire world is
heading for a massive economic meltdown and the people of earth need to
be warned about the coming economic disaster that is going to sweep the
globe.
Texas Plans to Implement REAL ID in 2013 Tela Mange, Chief of Media Relations
at Texas Department of Public Safety, has responded to an Infowars.com
request for information on the state’s implementation of REAL ID.
Gaddafi forces mount fierce counterattack; witnesses describe ‘massacre’ in city

under siege Forces loyal to Libyan leader Moammar Gaddafi on Friday
unleashed their fiercest counterattack yet, assaulting rebel-held positions by
ground and air and firing on demonstrators in the government stronghold of
Tripoli.
MI6, SAS Working Together To Take Control In Libya Britain is to send teams of
spies and diplomats into Libya to help oust Colonel Gaddafi, it emerged last
night.

Drudgereport: FLASHBACK: Larger Than Entire 2007 Deficit...

GATES SAYS ANY MILITARY ACTION ON LIBYA SHOULD HAVE
INTERNATIONAL BACKING...
Caught on Video: General Petraeus And Secretary Gates Share Private Joke
About Attacking Libya...
NATO starts 24/7 surveillance of Libya...
Greece slams rating agencies after MOODY'S cut...
Spain's savings banks race to find funds by Thursday...
Portugal edges closer to crisis...
PAPER: Obama asks Saudi Arabia to supply Libyan rebels with weapons...
GADHAFI OFFENSIVE MAKES LITTLE GROUND
Saudi Arabia detains Shi'ites as clerics ban protests...
OIL CONTINUES CLIMB...
Gas prices up 33 cents -- in two weeks!
Number of ObamaCare waivers climbs above 1,000...
Unrest returns to Cairo streets...
UK 'to send team of spies' to help oust Gadhafi...
British Army readies for mission at 24 hours' notice...
Obama goes golfing...
ROMNEY TO NH: WE NEED A NEW PRESIDENT
'Moore: The rich have overplayed their hand' … [yes they have … quite foolishly
at that … they really have] ...
CHICAGOLAND: Homicide case involving Daley nephew closed without charges...
OBAMA TAKES 'BUTTER KNIFE' TO BUDGET...
Biden opens budget talks -- leaves country...
Senate Democrats dropping like flies...
Harry Reid offers spending proposal -- predicts failure...
Saudi Arabia bans all protest and marches...
Mobilizes thousands of troops to quell growing unrest...
'MASSACRE' IN ZAWIYAH...
Shi'ite protesters in Bahrain form human chain around capital...
SHOCK VIDEO: Women gunned down by soldiers in Ivory Coast...
Peter King, IRA supporter and enthusiastic counter-terrorism advocate
(Washington Post) [ A neocon; a zionist with a large jewish constituency; an
IRA terrorist supporter; looks a lot like, bears a striking resemblance to,
corrupt dodo dodd former Conn. Senator; in sum, that can’t be good. Maybe
he suffers from a multiple personality disorder. I mean … wow! Whew! ]
Milbank: The subpar lender crisis (Washington Post) [ It truly is difficult for me to
imagine Mr. Milbank as a business reporter; although, … wall street journal …
could fit. I had occasion to know a successful wall street executive, chairman,
institutional brokerage / investment banking firm, who referred to the wall street
journal as ‘total b*** s***’. I don’t think Mr. Milbank needs to refer to an ad hoc
experience which we know and can reasonably infer to be ubiquitous in kind and
that they’re all a bunch of typical american crooks (he wasn’t … but he was an old
school risk seeker long since out of the game). Academy Award winner Ferguson
is way ahead: ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the
unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds on
wall street ( and declares with oscar in hand that not one high level wall street
exec has been prosecuted … despite ‘earning’ billiions from the fraud ), the
commentator / experts recommend getting rid of the corrupt eric holder ( now
what do holder and wobama have in common … is it wall street money …………
is it a proclivity for jive-talking / b*** s*** ………all of the above, some of the above
……….. or is it something else …… here’s a hint - UPDATE: MORE CLAIMS OF
RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN
BLACK PANTHER CASE... ‘In emotional and personal testimony, an ex-Justice
official who quit over the handling of a voter intimidation case against the New
Black Panther Party accused his former employer of instructing attorneys in the
civil rights division to ignore cases that involve black defendants and white


[45mb ]
Private hiring spurs drop in jobless rate (Washington Post) [ This is a tab yet to
be paid (taxpayer / treasury / public) and the costs in money the nation doen’t
have for the political obfuscation will far outway the benefits. (Gallup Reports
Underemployment Surges To 19.9%, February “Jobs Situation Deteriorates”: As
Bad As 2010 On one hand we have the Department of Truth about to tell
tomorrow that NFP based on various seasonal and birth death adjustments
increased by 250,000… Santelli: 'Good' Jobs Report Has Dark Side... …
Denninger ‘ … Summary: The report did not show any material amount of
acceleration; it is, for all intents and purposes, flat. The Household Survey
showed some people going back to work, but in terms of percentage of the
working-age population the needle did not move to any material degree. The
problem continues to be people we don't count as unemployed but in fact are,
and as such the statistical gerrymandering of the results will give both the left
and right something to spin, but in point of fact there's no evidence of an
economy that is recovering it's ability to generate both private income and tax
revenues.’ … ‘ Mason’…Over the past four weeks, the Treasury’s General
Account has dropped by almost $70 billion. Thus, between this account and the
Treasury’s Supplementary Financing Account the Fed has injected almost $170
billion reserves into the banking system in February …’ Gerald Celente: “There is
no recovery — it’s a coverup!” Sic Semper Tyrannis | Celente argues the oil prices
have been going up before the recent chaos in the Middle East. ‘…One other
point brought out by Gerald Celente is the fact that the current puppet regime in
the White House is “cooking the books” on the unemployment numbers and
current inflation rates. They are making their own rules on how to determine
inflation rates by leaving out essential information such as food and fuel prices.
The same is being done with White House unemployment numbers by simply
leaving out those who have given up looking for jobs, as well as other deceptive
“carnie” tricks (in reference to White House spokesperson Carnie) in which he
compares the administration to a traveling carnival act.
In closing, Celente states:

“… There is no recovery, it’s a coverup. It’s only being boosted by
these low interest rates, which again, when inflation skyrockets-
they’re gonna have to raise them …‘
Delusional for 2012Will: Huckabee and Gingrich are diminishing the GOP.
(Washington Post) [ That’s only if you take them seriously; and, you can’t take
neocons seriously. You know the type … the pro-zionist bush me-toos … and
don’t forget … what could be more diminishing than having failed president
‘wobama the b’ (for b*** s***) as their putative head. Perma war types all, the
pervasively corrupt america is defacto bankrupt. Drudgereport: Delaware voters
say no to Lobotomy Joe ….. Biden (the self-proclaimed zionist) -- for name of
school...
'Wobama’s Where's Waldo?' Presidency...
All Former U.S. Presidents To Get Together For TV Special Honoring George H.W.
Bush…(How totally pathetic they are! How embarrassing for NBC!) ... [ Wake up!
http://albertpeia.com/bushcrimes.htm ]
Gingrich to announce exploratory committee 'in 10 days' [ Neo-con Dreamin’! I
mean, come on … are memories so short they don’t recall him being a total
hypocrite, zionist shill, and part of the problem though to his credit, he’s not a
mobster and complete joke as is trump! ]
CHICAGOLAND: Lawmaker Suggests BOEING'S Contract Win A Result Of Dirty
Politics... [ The contract’s with money the nation doen’t really have anyway; and,
the value of the money paid will be worth substantially less by completion; and,
no surprise … Chicago hasn’t changed much from the days of capone and is
rivaled in terms of corruption by such states as jersey, new york, etc.. ] ‘…“I’m
disappointed but not surprised,” Republican Sen. Richard Shelby said. “Only
Chicago politics could tip the scales in favor of Boeing’s inferior plane. EADS
clearly offers the more capable aircraft.”…’
Rep. Rangel Causes Stir In Courtroom; Reprimanded By Judge...NEW YORK
(CBSNewYork) – Congressman Charles Rangel caused a stir in court Friday while
trying to lend his support for bail of Afrika Owes.Owes, 17, had been a student at
the prestigious Deerfield Academy in Massachusetts. Prosecutors say she was
also a member of a drug gang that terrorized 137th Street in Harlem.Owes was
one of fourteen suspected “137th Street Crew” gang members arrested last
month. Prosecutors said the gang used shootings, beatings and robberies to
protect their turf and gain street status on a stretch of West 137th Street. The
gang allegedly openly dealt crack in apartment lobbies, near Harlem Hospital and
near the Abyssinian Baptist Church. Congressman Charles Rangel argues for Owes
getting bail to Juliet Papa of 1010 WINS
Violent spring looming in Afghanistan (Washington Post) [ See …
something to look forward to … must be that good news that keeps
getting pushed back … and spring no less … everything bombing
blooming or in war criminal american-speak … ‘booming’ … but not the
defacto bankrupt american economy for which a crash is ‘looming’.
Could somebody help me out with a translation of gates’ speech a west
point … I must be missing something … Lt. Gen. John Kelly, who lost
son to war, says U.S. largely unaware of sacrifice (Washington Post)
[ I disagree! They are very much aware; as they stand in unemployment
lines, use food stamps to get by, etc.. I hate to sound cavalier and I’m
sorry that Kelly lost a son to war, but along with the multitude of civilians
in the nations unlucky enough to provide a source of corporate welfare
to the military industrial complex and war profiteering for the few (as
warned against by President General Eisenhower), they died for
nothing, for no good reason beyond the false propaganda. Six NATO
troops killed in Afghanistan (Washington Post) [ Is there something
wrong with the following picture? … am I missing something? …
Gates's warning: Avoid land war in Asia, Middle East, and Africa
Christian Science Monitor - In a speech to cadets at the United States
Military Academy at West Point, Gates's message was clear: The US
military services, as well as the elected and appointed civilians who
send them to war, need better ways of foreseeing and preparing for ...
Gates Tells US Army to Take New Approach Voice of America
Warning Against Wars Like Iraq and Afghanistan New York Times
[ Better said, than unsaid; but, methinks a bit late for that in light of
pervasively corrupt, defacto bankrupt america’s consummate
decline and fall! If only they had listened and not shot at the
messenger … things could have been different! ] ] American
military officials expect that the Taliban will mount a campaign to regain
ground lost to U.S. troops last year and use suicide bombing teams to
strike at those associated with the Afghan government or coalition
forces. ]
YAHOO [BRIEFING.COM]: [Suckers’ rally into the close] ‘A late flurry of buying
lifted the Dow almost 90 points in less than 30 minutes, but stocks still finished
the day with marked losses as participants looked past an encouraging jobs
report to focus on oil's climb to a new two-year high…’
Employment Report: No Joy Here Denninger ‘The reaction on CNBS, in particular:

"This is a very good report."
Really?
Incidentally, I said 100k +/- 50, and we hit ... (misprint - the original link is here -
nobody's perfect!)
Nonfarm payroll employment increased by 192,000 in

February, and the unemployment rate was little changed
at 8.9 percent, the U.S. Bureau of Labor Statistics
reported today. Job gains occurred in manufacturing,
construction, professional and business services,
health care, and transportation and warehousing.
Ok, high side. The uncertainty was very high on this report, but the results are not
out of line. Those people looking for a "2" or even "3" handle (and there were lots
of people who were) have a problem though - they didn't get that.
Hourly payrolls didn't move, nor did working hours. Meh.
The spin machine will be out in force I'm sure on both sides of the political
spectrum. The market's initial reaction was to spike and then dive a bit; just
enough to nail you with a stop run if you happened to be in the futures with a
stop on at the time.
Here's the household data, which is where I focus my attention (incidentally, the
"Birth-Death" was +100kish this month - if you believe that.)
[chart]
(Click to enlarge)
There was a small uptick in actual employment in February. This has to be
maintained, of course, in order for it to continue to count. The key here is that on
this metric annualized (which removes seasonality) we were basically flat over
last month, although on the positive side of the ledger.
[chart]
(Click to enlarge)
That's a problem. We're basically flat on the labor participation rate among the
population. This must show a strong recovery or the government funding model
will collapse. You can report all the numbers you want but this is the one that
matters, and while it did not further deteriorate it also didn't turn around.
[chart]
(Click to enlarge)
"Not in labor force" - that is, those who have walked off in disgust - showed little
change this last month. Annualized it was up slightly. Again, this reflects as a
lower unemployment rate, but only because we're not counting people.
[chart]
(Click to enlarge)
No joy here.
Summary: The report did not show any material amount of acceleration; it is, for
all intents and purposes, flat. The Household Survey showed some people going
back to work, but in terms of percentage of the working-age population the
needle did not move to any material degree. The problem continues to be people
we don't count as unemployed but in fact are, and as such the statistical
gerrymandering of the results will give both the left and right something to spin,
but in point of fact there's no evidence of an economy that is recovering it's
ability to generate both private income and tax revenues.’
Stocks Hit by Middle East Worries, Financial Sector Downgrades Midnight Trader
‘4:10 PM, Mar 4, 2011 --
• DJIA down 88.32 (-0.72%) to 12,169.88

• S&P 500 down 9.82 (-0.74%) to 1,321.15
• Nasdaq down 14.07 (-0.50%) to 2,784.67
Stock Market Rally - Where's the Money Coming From? How much is Left?
Maierhofer, On Friday March 4, 2011, 12:31 pm EST
Most retail investors exited the stock market early 2009 and didn't get back in
until recently. According to Strategic Insight, investors piled a net $21 billion into
U.S. stock mutual funds in January, the biggest monthly inflow in seven years.
Is this rekindled infatuation with stocks bullish or bearish? If it is bullish, how

much more cash is waiting on the sidelines, and how much longer can the rally
last?
Once Bitten, Twice Bold
According to Michal Strahilevitz (quoted in the Wall Street Journal), a business

professor at Golden Gate University, delayed bulls are driven by what
psychologists call 'counterfactual regret' - the haunting sense of what might have
been.
Strahilevitz explains: 'These investors have been double traumatized. First in

2008 and 2009 they suffered until they said I can't take it anymore' and sold all
their stocks. And now they've had to deal with the trauma of watching the market
go up and realizing they'd be better off if only they hadn't gotten out.'
Like an annoying splinter, the regrets over being out of stocks are refreshed
every day the market goes up. Apparently, watching stocks rise from the sideline
is more painful than the perceived risk of buying at lofty prices.
Right but Wrong
The timing of retail investors reminds me of the Wall Street Journal. On March 9,
2009, the Journal ran a front-page article with the headline 'Dow 5,000 - There's a
case for it.'
This headline stuck with me because Dow 5000 is what I predicted before the
financial crisis hit in 2008. By the time the Journal pointed towards Dow 5,000, the
Dow had already lost over 50%, and I moved into the bullish camp. Via a March 2,
2009 special ETF Profit Strategy Newsletter alert, I advised to buy, buy, and buy.
True, after the initial 40 - 50% gain I got suspicious and haven't trusted the market
since. In hindsight that was foolish. Looking at fund flows, a large number of
investors are just now starting to re-enter the market, which also seems foolish.
Based on that new data, catching the initial 40-50% of the rally was much more
profitable, less nerve racking, and in risk-adjusted terms much more desirable
than entering around current prices or being invested over the last year.
Even investors that entered as early as August 2009, when the S&P 500 traded
around 1,000, have seen a gain of only 32%, if they stuck with it. At one point, the
post-April 2010 decline and May 'Flash Crash' erased eight months worth of
gains. The last 21 months of the rally were much more treacherous than the first
three months, but delivered a lower return with more stress.
Why Wrong?
The two charts below illustrate how sentiment and money flow affect stocks
(NYSEArca: VTI - News). The green bar represents buying pressure, and the red
bar selling pressure.
At the March 2009 lows, the major indexes a la Dow (DJI: ^DJI), S&P (SNP:
^GSPC), and Nasdaq (Nasdaq: ÎXIC) lost over half of their value, the financial
sector (NYSEArca: XLF - News) lost nearly 80%, investors were fed up with
stocks and threw in the towel.
At that time, there were no more sellers left. Without sellers pulling down prices,
stocks had nowhere to go but up. That's what they did.
Since the S&P blew through my initial price target, I expected a reaction at the
61.8% Fibonacci retracement level. The first chart below shows that normal
market forces returned to Wall Street when the S&P reversed within points of
reaching the 61.8% Fibonacci resistance [chart]
At S&P 1,220 there were simply more sellers than buyers. As in every market, the
stock market needs fresh dollars to create new bids and higher prices. When
sellers outnumber buyers, prices tend to fall. That's what happened.
A Formula for Disaster
The second chart below extends beyond the April 2010 highs and visually
explains what happened when the Fed's QE2 appeared on the scene. In essence,
the money flow was altered.
A picture says more than a thousand words, and even though simplified, this
chart visualizes the effect of QE2. It has kept a constant bid beneath prices. Due
to QE2 the red selling pressure bar is allowed to continue growing. At one point,
the confined selling pressure will burst like a bubble and play havoc with
prices. [chart]
All of this can be summarized in one formula:
Buying Pressure > Selling Pressure = Rising Stock Prices
How much Cash is on the Sidelines
Mutual fund cash levels are at an all time low of 3.4%. Even the 2007 all-time high
saw mutual fund levels at 3.6%.
Currently, there are 2.4 times more assets invested in equity mutual funds than in
money market funds. This is the highest ratio since after the 2007 peak but is
lower than the peak ratio of 3.0.
According to Jason Goepfert with SentimenTrader, margin debt on the NYSE

stood at $290 billion in January, one of the highest amounts in history. At the
same time free credit dipped. Due to higher debt and lower credit, the available
cash dropped to negative $46 billion, the worst figure since July 2007 (it was at
negative $44 billion in April 2010).
Air Pocket Protection
QE2 has and possibly will extend the new mania and makes the possible future
gains look so enticing. How do you milk this market without getting burned?
If you want the thrill of more gains you have to walk the tightrope. And if you're
going to walk the tightrope you'll want a safety net.
A safety net doesn't assure a perfect performance but it keeps you safe and
protects you from harm. In the investment world, a safety net - or early warning
system - will get you out of stocks before it's too late.
In fact, the stock market builds its own safety nets; it's called support. As long as
stocks teeter above support, the performance is solid while a break below usually
means the show is either over or temporarily suspended. Either way, it's time to
get out…’
Santelli: 'Good' Jobs Report Has Dark Side...
QE2 Watch Version 4.0: Fed Is 'Tone Deaf' and 'Spaghetti Tossing' Mason ‘The
Federal Reserve continues to pump funds into the banking system. Reserve
balances at Federal Reserve banks reached $1.3 trillion on March 2, 2011. This is
up from $1.1 trillion on
February 2 and up from $1.0 trillion on December 29, 2010.
These balances serve as a relatively good proxy for the excess reserves in the
banking system which averaged $1.2 trillion over the two-week period ending
February 23, 2011.
As we have reported before, there are two drivers of this increase in bank
reserves. The first, connected with the Fed’s program of quantitative easy, is the
acquisition of United State Treasury securities.
Over the past four weeks the Federal Reserve has added almost $100 billion to its
portfolio of Treasury securities. Only about $18 billion of these purchases were
offset by maturing Federal Agency issues and mortgage-backed securities.
Since the end of last year, the Fed has added $220 billion to its Treasury security
portfolio. In this case the Fed was replacing a $48 billion decline in the other
securities that were maturing.
And, in the past 13-week period, Almost $320 billion were added to the Treasury
portfolio, replacing about $80 billion in maturing Agency issues and mortgage-
backed securities.
The second driver has been the action surrounding Treasury deposits with
Federal Reserve banks. Since these deposits are a liability of the Fed, a reduction
in these deposits increases reserves in the banking system. There are two
important accounts here, the Treasury’s General Account and the Treasury’s
Supplementary Financing Account.
The Supplementary Financing Account has been used for monetary purposes
and in the current case, the Treasury has reduced the funds in this account by
$100 billion. All of this reduction came in February.
The Treasury’s General Account is used in conjunction with Treasury Tax and
Loan accounts at commercial banks and is the account that the Treasury writes
checks on. Generally tax monies are collected in the Tax and Loan accounts and
then are drawn into the Federal Reserve account as the Treasury wants to write
checks. When the Treasury writes a check, it is deposited in commercial banks,
so that bank reserves increase.
Over the past four weeks, the Treasury’s General Account has dropped by almost
$70 billion. Thus, between this account and the Treasury’s Supplementary
Financing Account the Fed has injected almost $170 billion reserves into the
banking system in February.
I need to call attention to the fact that funds moving into and out of the General
Account can vary substantially. For example, since the end of the year (which
includes the February change) this account has only fallen by $39 billion. Over
the last 13-week period, the account has actually increased by $4 billion. Tax
collections build up toward the end of the year and then are spent during the first
quarter of the year preparing for another buildup around April 15, tax collection
time.
The bottom line, the Federal Reserve is seeing that plenty of reserves are being
put into the banking system. But, the commercial banks seem to be holding onto
the reserves rather than lending them out.
Still, the growth rates of both measures of the money stock seem to be
accelerating. The year-over-year growth rate of the M1 measure of the money
stock was growing by about 5.5% in the third quarter of 2010. The growth rate
increased to 7.7% in the fourth quarter and is growing at a 10.2% rate in January
2011.
The M2 measure of the money stock has also accelerated, going from a year-
over-year rate of increase of 2.5% in the third quarter to 3.3% in the fourth quarter
to 4.3% in January.
On the surface these increases in money stock look encouraging in terms of

possible future economic growth. However, we are still seeing the same behavior
of individuals and businesses in the most recent period that we have observed
over the past two years.
The growth rates of both measures of the money stock still seem to be coming
from people that are getting out of short term "investment" vehicles and are
placing these funds in demand deposits or other transaction accounts, or in
currency.
The first piece of evidence of this relates to the reserves in the banking system.
The total reserves in the banking system have remained roughly constant over
the past year. Yet, the required reserves of the banking system have increased by
10% year-over-year. This situation could only happen if demand deposit-type of
accounts, which require more reserves behind them, were increasing relative to
time and savings accounts, which have smaller reserve requirements.
Looking at the individual account items we see that demand deposits at

commercial banks rose at a 20% year-over-year rate of growth in January. The
non-M1 part of the M2 measure of the money stock rose by only an anemic 3%
rate. Thus, the substantial shift in funds from time and savings accounts to
transaction accounts continues. There is no indication of a speeding up of money
stock growth connected with the reserves that the Fed is injecting into the
banking system.
An even more dramatic shift can be seen if we include institutional money funds
in the equation and look at what has happened in the banking system over the
past nine weeks. The non-M1 portion of M2 increased by $22 billion over this time
period. However, funds kept in institutional money funds declined by roughly $40
billion. This means that accounts that Milton Freidman would have labeled "a
temporary abode of purchasing power" actually declined by $18 billion since the
start of the year.
Demand deposits and other checkable deposits rose by about $21 billion. One
could note that currency in the hands of the public also rose by $16 billion.
The public continues to move money from relatively liquid short-term savings
vehicles to assets that can be spent by check or cash. This is not the kind of
behavior one gets in an economy that is confident and expanding. This behavior
can roughly be called "defensive".
So, another month has gone by. The Fed is aggressively executing its program of
quantitative easing. Yet, it still seems to be "pushing on a string." Why is it I
retain the feeling that the Federal Reserve’s effort is just spaghetti tossing,
seeing what might stick to the wall?
The longer this policy continues, the less confidence people seem to have in both
Ben Bernanke and the Federal Reserve. I shutter to think what Bernanke and the
Fed will do to us when the banking system actually does start lending again.
Note that some members of the Fed’s Open Market Committee are suggesting
that QE2 end abruptly at the end of June when the current program is slated to
expire. (See "Policy Makers Signal Abrupt End to Bond Purchases in June")
Does everyone in the Fed seem "tone deaf" to you? They just seem to act on pre-
conceived ideas and have no sense or feel of the banking system and financial
markets. Another confidence raiser.’
Warning: Stocks, Bond Yields Overvalued SuttmeierWe begin Friday with a new
ValuEngine Valuation Warning which occurs when more than 65% of all stocks
become overvalued. Today 66.4% of all stocks are overvalued as the market
attempts to rebound back to the February 18 highs, when 68.6% of all stocks were
overvalued. A higher bond yield is an important factor that makes stocks more
overvalued. In addition to a new valuation warning all 16 sectors are overvalued,
14 by double-digit percentages.
Beware of Improved Jobless Claims -- If Initial Jobless Claims start to trend below
350,000 per week, the FOMC will likely allow QE2 to end at the end of June, and
the market is anticipating QE3. Higher materials and energy costs are starting to
be passed on to consumers. With regular gasoline approaching $3.50 per gallon,
folks on Main Street, USA, will be driving less, which will become a drag on the
economy. In his testimonies earlier this week Fed Chief Bernanke recognized this
inflation trend as he called it temporary. The extended period for the “zero to .
25%” federal funds rate began December 16, 2008, and this environment of high
commodities prices and lower jobless claims should bring this extended period
to an end at the end of June even if unemployment is above 9%.
The major equity averages remain below their February 18 highs when the Dow
Industrial Average reached 12,391. My proprietary analytics still show weekly and
monthly resistances to limit the upside even if some of the averages continue to
new highs.
My daily and annual value levels are 11,917 and 11,491 with weekly and
• The S&P 500 (1331.0) Libya Trading Range: 1294 to 1344. My daily and
quarterly value levels are 1290.9 and 1262.5 with weekly and monthly risky
levels at 1352.9 and 1381.3.
• The NASDAQ (2799) Libya Trading Range: 2706 to 2840. My daily value
level is 2691 with weekly, quarterly and monthly risky levels are 2860, 2853,
and 2926.
• The NASDAQ 100 (NDX) (2372) Libya Trading Range: 2285 to 2403. My daily
value level is 2279 with weekly, quarterly, and monthly risky levels at 2436,
2438, and 2499.
• Dow Transports (5111) Libya Trading Range: 4918 to 5306. My daily and
quarterly value levels are 4793 and 4671 with weekly and annual pivots at
5150 and 5179.
• The Russell 2000 (828.89) Libya Trading Range: 795 to 838. Daily and
quarterly value levels are 795.83 and 765.50 with monthly risky level at
850.79.

439 to 474. My daily value level is 441.14 with a monthly pivot is 453.89,
quarterly pivot at 465.93 and weekly risky level at 493.15.
10-Year Note -- (3.570) Weekly, annual, and semiannual value levels are 3.630,
3.796, and 4.268 with daily, monthly, annual, and semiannual risky levels at 3.355,
3.002, 2.690, 2.441, and 2.322. [chart]
Comex Gold -- ($1417.1) Annual, quarterly, weekly, semiannual, and annual value
levels are $1356.5, $1331.3, $1.316.1, $1300.6, and $1187.2 with monthly,
quarterly, daily, and semiannual risky levels at $1437.7, $1441.7, 1442.2, and
$1452.6.[chart]
Nymex Crude Oil -- ($101.82) Monthly, weekly, and semiannual value levels are
$96.43, $89.76, and $87.52 with my annual pivots at $99.91 and $101.92, and daily,
semiannual, and quarterly risky levels are $112.14, $107.14 and $110.87.[chart]
The Euro -- (1.3958) My weekly and quarterly value levels are 1.3690 and 1.3227
with a daily pivot at 1.3929. Semiannual, monthly, and annual risky levels are
1.4624, 1.4637, 1.4989, 1.6367, and 1.7312.[chart]
Daily Dow -- (12,258) Daily, annual, quarterly, semiannual, and semiannual value
levels are 11,917, 11,491, 11,395, 10,959, and 9,449 with weekly, monthly, and
annual risky levels at 12,461, 12,741,and 13,890.[chart]
Today's Markets: Betting on Blue Skies? Moenning ‘Good morning. I am often
asked why I get up so early every morning to write about something as mundane
as the stock market. The answer is simple. My primary objective relating to the
market is to stay in tune with the drivers of the action. And since those drivers
are constantly changing (and at times more than a little difficult to find), getting
an early start is the only way to keep up. Many times, the way the market reacts to
the early morning news tells you more than the news itself. Thus, I'm of the mind
that you've got to be there to witness the action and the accompanying reaction
firsthand if you want to truly understand what is going on in the game.
Thursday was a prime example of the market doing something that may have
been unexpected. I'm not talking about the joyride to the upside at the open, as
that was to be anticipated given the early inputs. No, I'm talking about the action
in the afternoon. In short, stocks continued to move higher despite the fact that
we had heard nothing further regarding the much ballyhooed Venezuelan peace
plan and that oil prices were once again movin' on up.
Here's the deal. During the current consolidation phase, stocks have been
inversely linked to the movement in oil prices the vast majority of the time. The
thinking has been that higher oil prices would eventually have a negative impact
on the global economy. And with the U.S. economic rebound just now starting to
look sustainable, another shock to the system could bring the R word back into
the mix. However, Thursday afternoon's action in the stock market suggests that
traders are instead betting on blue skies ahead.
With oil prices reversing early declines on growing skepticism over the ability of
one Hugo Chavez to help out his good buddy over in Libya, one might have
expected to see stock prices give up those big gains and take a swan dive into
the close. Don't forget, oil only finished down $0.32 on the day and closed at
$101.91. Thus, the story about the drop in oil prices that the press yammered on
about all day seemed more than a little silly by the time the closing bell rang at
the corner of Broad and Wall.
If you recall, a similar situation occurred on Wednesday. With the major indices
teetering on the edge of important support, oil prices broke to new highs as the
fighting in Libya intensified in the afternoon. And yet, while the bears appeared to
have an opening, the bulls somehow managed to hold the line.
So, given that traders have been treated to a big batch of better-than-expected
economic data this week, the action over the past two sessions seems to suggest
that the economy may trump the worry about what might (or might not) happen
with oil prices. Some traders may have been positioning themselves in front of
this morning's Jobs report after Wednesday's ADP data and Thursday's big drop
in weekly jobless claims (jobless claims came in at the lowest level since May
2008). Some may have been covering shorts after the technical support levels
held up. And while one afternoon does not a trend make, some traders may have
been readying themselves for the next leg up. After all, up until the trouble in
MENA started, just about everyone agreed that U.S. stocks had some room to run
to the upside this year.
Heck, even Jean Claude Trichet may be getting into the act of betting on blue
skies ahead. Yesterday, Mr. Trichet suggested, as only a central banker can, that
the ECB may need to start pulling back on their quantitative easing program and
start raising rates - as early as next month. Thus, the folks at the center of the
European debt crisis may also be seeing some clearing in the clouds.
Turning to this morning... Hopes for a peace deal in Libya appear to be fading as
oil climbs above $103 this morning. However, foreign markets are up nicley and
the day is all about the jobs report, so let's get to it...
On the Economic front... The Labor Department reported that Nonfarm Payrolls
rose in the month of February by 192,000. This was just slightly below the
consensus estimates for an increase of 198,000. The January totals were revised
higher to 58K from 36K and the combination of revisions for January and
December produced an increase of 58K jobs.The private sector (aka the
household survey) showed gains of 222K jobs, which again was above the
estimates.
The nation’s Unemployment Rate was once again a big surprise as it fell to 8.9%,
which was below the expectations for a reading of 9.1% and January’s level of
9.0%.
Although stock futures initially rallied on the jobs report, crude's continued rude
rise has pushed prices lower in the last few minutes...
Thought for the day: Best of luck on this Friday and be sure to enjoy the
weekend!
Pre-Game Indicators
Here are the Pre-Market indicators we review each morning before the opening
bell...
• Major Foreign Markets:

o Australia: +1.14%
o Shanghai: +1.35%
o Hong Kong: +1.25%
o Japan: +1.02%
o France: +0.28%
o Germany: +0.59%
o London: +0.52%
• Crude Oil Futures: +$1.39 to $103.30
• Gold: +$1.60 to $1418.00
• Dollar: lower against the Yen, higher vs. Euro and Pound
• 10-Year Bond Yield: Currently trading at 3.524
• Stocks Futures Ahead of Open in U.S. (relative to fair value):
o S&P 500: -0.62
o Dow Jones Industrial Average: -2
o NASDAQ Composite: -1.20
Wall Street Research Summary
Upgrades:
• Progressive (PGR) - BofA/Merrill

• Marathon Oil (MRO) - Target increased at Deutsche Bank
• Valero Energy (VLO) - Target increased at Deutsche Bank
• Western Refining (WNR) - Target increased at Deutsche Bank
• Dollar Tree (DLTR) - Goldman Sachs
• Capital One (COF) - Morgan Stanley
• Simcere Pharmaceutical (SCR) - Oppenheimer
• Altera (ALTR) - RW Baird
• Fairchild Semiconductor (FCS) - RW Baird
• Intel (INTC) - RW Baird
• Lattice Semiconductor (LSCC) - RW Baird
• ON Semiconductor (ONNN) - RW Baird
• STMicroelectronics (STM) - RW Baird
• Foot Locker (FL) - Sterne, Agee
• Toronto-Dominion Bank (TD) - UBS
• Viacom (VIA) - Estimates and target increased at UBS
Downgrades:
• Citi (C) - BofA/Merrill

• Goldman Sachs (GS) - BofA/Merrill
• Amylin Pharmaceuticals (AMLN) - BMO Capital
• Cephalon (CEPH) - Oppenheimer
• Canadian Pacific (CP) - Target reduced at RBC
• Cerus Corporation (CERS) - RW Baird
• Monster Worldwide (MWW) - William Blair…’
Why the Dollar’s Reign Is Near an End Wall Street Journal | Fully 85% of foreign-
exchange transactions world-wide are trades of other currencies for dollars.
Oil price rises as Libya tensions grow Crude oil rose by more than $1 as fighting
in Libya intensified and amid reports of protests in Saudi Arabia’s oil-
producing eastern region.
LSE head quits over Gaddafi cash: Resignation as top judge appointed to probe
Libyan links Sir Howard Davies paid the price last night for the London
School of Economics’ controversial financial links with Libya.
You Call This An Economic Recovery? 44 Million Americans On Food Stamps and
10 Other Reasons Why The Economy Is Simply Not Getting Better When
Barack Obama, the Federal Reserve and the mainstream media tell us that
we are in the middle of an economic recovery, is that supposed to be some
kind of sick joke?
Wisconsin Governor To Issue 1500 Layoff Notices Unless Fugitive

Democrats Return To The State In addition to “stagflation” which we
announced in January would be the word of the year, we now have a new
contender in the running for what may soon be the most popular word for
the next 10 months: “escalation.”
Silver’s Breaking Point As part of silver week, we have talked about all sorts of
factors—supply, demand, futures, backwardation, and even the
government’s manipulation of silver. The one critical factor that we didn’t
mention is how megabanks have manipulated silver as of late, and the
tremendous effect it has had on the market.
Gallup Reports Underemployment Surges To 19.9%, February “Jobs Situation

Deteriorates”: As Bad As 2010 On one hand we have the Department of
Truth about to tell tomorrow that NFP based on various seasonal and birth
death adjustments increased by 250,000.
Utah Considers Return to Gold, Silver Coins It’s been nearly 80 years since the
U.S. stopped using gold coins as legal currency, and nearly 40 since the
world abandoned the gold standard, but the precious metal could be making
a comeback in the United States — beginning in Utah.
National / World
Rolling Stone: Glenn Beck Rips Off Alex Jones Infowars.com | Rolling Stone
Magazine has posted a part two to follow up on its profile of Alex Jones
earlier this week.
Texas Plans to Implement REAL ID in 2013 Kurt Nimmo | Chief of Media Relations
at Texas Department of Public Safety confirms state will conform to federal
rules.
Infowars.com pushes ‘Defriend Day’ to #1 on Google Aaron Dykes | Campaign to

draw-down from privacy predators on Facebook and other social media
sites.
Big Brother: The Orwellian Nightmare Come True Mark Dice | Tremendous
advances in technology often come with unforeseen consequences.
Liberated Libya Rejects US Intervention TRNN | On the streets of liberated

Benghazi people say no to McCain, Lieberman and any US intervention.
World cheers as the CIA plunges Libya into chaos David Rothscum | Gaddafi is
the main threat to US hegemony in Africa.
Obama Deceptively Answers Second Amendment Question It was yet another

example demonstrating that some people in Mexico just don’t understand
the concept of liberty, the Constitution, and the Bill of Rights.
Alex Jones Invades Twitter With Hillary Clinton this week admitting that the US
military-industrial complex and the globalists are losing the information war
to alternative media outlets that cover “real news,” Alex Jones is taking the
Infowar to a whole new level by invading Twitter with a fresh culture
jamming offensive designed to bring the truth to millions more people all
over the world.
States Rebeling Against TSA: Texas The Latest To Legislate For Banning Grope-
Downs, Naked Scanners Legislation has been introduced into the Texas
House of Representatives that directly challenges the authority of the TSA in
airports within the state, specifically aimed at criminalizing the use of naked
body scanners and enhanced pat-downs.
Ron Paul Sets MSNBC Host Right On Taxes Cenk Uygur, MSNBC talking head,
demonstrates how dishonest liberals can be when making arguments that
the government has the right to steal your money at gunpoint. In an
interview with Rep. Ron Paul, he characterizes a tax cut for the oil industry
as a subsidy. Dr. Paul sets him right.
Dancing with Devil: ‘Intervention will be tragedy for Libyan people’ The Libyan
leader Colonel Gaddafi is promising more violence if US or NATO forces
dare to intervene, while the US is preparing for a humanitarian mission in
Libya and the UK has already started one.
On the Edge: Intervention Fears Rise as US, UK Forces Mass Near Libya The U.S.
and UK are becoming more isolated as they refuse to rule out intervention in
Libya. Germany has joined international voices opposing any foreign
military action. Washington, massing its forces off the Libyan coast, claims
its keeping all options open and is ready to step in if the crisis deepens.
Oil price rises as Libya tensions grow Crude oil rose by more than $1 as fighting
in Libya intensified and amid reports of protests in Saudi Arabia’s oil-
producing eastern region.
LSE head quits over Gaddafi cash: Resignation as top judge appointed to probe
Libyan links Sir Howard Davies paid the price last night for the London
School of Economics’ controversial financial links with Libya.
You Call This An Economic Recovery? 44 Million Americans On Food Stamps and
10 Other Reasons Why The Economy Is Simply Not Getting Better When
Barack Obama, the Federal Reserve and the mainstream media tell us that
we are in the middle of an economic recovery, is that supposed to be some
kind of sick joke?
Obama declares state governors will enforce health care bill whether they like it
or not At a recent meeting with US state governors in Washington, DC,
President Obama made clear his intent to force the individual states to
comply with his unconstitutional health care overhaul.
Soros Threatens Iran With “Bloodiest Of Revolutions” More “transparency and

accountability” was needed from other producers such as Saudi Arabia he
said. Mr Soros also predicted the Iranian regime would be overthrown in the
“bloodiest of the revolutions”.
Computer Expert: US Was Behind Stuxnet Virus A computer expert at the

influential TED Conference in California has confirmed what the New York
Times already admitted in January – that the same governments calling for
draconian cybersecurity powers in order to protect against cyber warfare
were themselves the culprits behind an act of cyber warfare that could have
triggered a new Chernobyl disaster in launching the Stuxnet worm attack
against Iran.
The TV Column: Charlie Sheen keeps talking; CBS gets in on the conversation
(Washington Post) [Wobama says daffy gaddafi’s time is up, got to go. The
same can be said of wobama et als and his fraudulently failed presidency.


Cohen: Time for Arabs to reject anti-semitism (Washington Post) [ Reality check
… time for israelis / jews to reject zionism and all that is entailed therein,
including an alternate reality that defies credulity, rationality, and facts; such
as, a self-rationalizing greed, anti-arab / anti-Christian predisposition and the
‘Oedipal Effect’ (blowback) engendered thereby. No, Johnny Carson was not
anti-semitic (Fred Silverman), same for Charlie Sheen (Chuck Lorre), etc.
(the list is endless inasmuch as when facts are not on their side, such
specious inflammatory arguments as ‘anti-semitism’, prejudice, are a
convenient subterfuge distracting from their weak position; ie., illegal nukes,
war crimes, ignoring u.n. resolutions, ie., 242, 338, etc., ignoring
international law. At best, no … God did not give them this land … at worst,
God took the land back when they with roman muscle crucified Christ.
Balfour was an arbitrary, incompetent, british joke.). ] ] Article | Tuesday
will be known as the day we heard from The Receiving End of Charlie
Sheen's Scorched Earth Media Tour.
Lt. Gen. John Kelly, who lost son to war, says U.S. largely unaware of sacrifice
could have been different! ]
Bernanke: Fed will respond if oil prices trigger inflation (Washington Post) [ If?
Come on … don’t make me laugh! … Inflation Is Here – Just Open Up Your Eyes
And Look At These 5 Financial Charts! (see infra) Despite what Federal Reserve
Chairman Ben Bernanke says, rampant inflation is officially here. The federal
government is constantly monkeying with the numbers to keep the “official” rate of
inflation below 2 percent, but it is becoming very difficult to deny that the cost of almost
everything is really going up these days. … Merk ‘…While we believe food inflation
will be with us for quite some time and may contribute to an unstable world
possibly for years to come, the Federal Reserve appears to be firmly in the camp
of heavily discounting food inflation. The European Central Bank (ECB), in
contrast, has historically taken commodity inflation more seriously than the Fed –
ECB President Trichet talks about his concern over "second round effects," i.e.,
commodity inflation stirring inflation throughout the value chain.
The relevance of all this is that in the U.S. it’s business as usual as far as
monetary policy is concerned. According to Fed Chair Bernanke, the U.S.
economy must grow at a rate of at least 2.5% per annum just to keep
unemployment stable, however, he has made it clear that he will pursue policies
to boost growth above that level. With oil prices soaring, he is facing yet another
headwind. Rather than mopping up the liquidity that, in our assessment, has
contributed to global commodity inflation, he may be tempted to keep the printing
press in high gear to promote economic growth.
It doesn’t really matter whether we think there is a crisis. What matters is that the
Fed doesn’t think its policies are contributing to global instability and continues
on its expansionary path…’
Jim Rogers: “Saudi Arabia Is Lying About Being Able To Increase Its Oil
Production” Jim Rogers joins Zero Hedge in being highly skeptical about
just how credible Saudi’s call for a 1MM + boost in its oil supply is: “Saudi
Arabia has been lying about the reserves for decades. Saudi Arabia the last
two times said they are going to increase production and they couldn’t
increase production. Don’t fall for that. ] Federal Reserve chairman says he
does not expect a major impact on consumer prices.
House Republicans press SEC on official's ties to Madoff (Washington Post) [ The
ultimate subterfuge. Mr. small potatoes madoff the focus of so much influence …
yet he’s in jail … and the only one … Boy, did mary shapiro become total b*** s***
fast … the current shibboleth of capital hill / all 3 branches of pervasively corrupt
u.s. government … joining the others: “The Financial Industry Has Become So
Politically Powerful That It Is Able To Inhibit the Normal Process of Justice And
Law Enforcement” The economy cannot stabilize unless fraud is prosecuted. But
the folks in D.C. seem determined to turn a blind eye to Wall Street shenanigans,
and is now moving to defund the enforcement agencies like the SEC and CFTC.
Market Crash 2011: It Will Hit by Christmas Farrell, MarketWatch SAN LUIS
OBISPO, Calif. (MarketWatch) — ‘Politicians lie. Bankers lie. Yes, they’re liars. But
they’re not bad, it’s in their genes, inherited. Their brains are wired that way, warn
rich…’
‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the unprosecuted
massive extant fraud in the (many) TRILLIONS by the frauds on wall street ( and
declares with oscar in hand that not one high level wall street exec has been
experts recommend getting rid of the corrupt eric holder ( now what do holder
and wobama have in common … is it wall street money ………… is it a proclivity
for jive-talking / b*** s*** ………all of the above, some of the above ……….. or is it
something else …… here’s a hint - UPDATE: MORE CLAIMS OF RACE BIAS AT
PANTHER CASE... ‘In emotional and personal testimony, an ex-Justice official
who quit over the handling of a voter intimidation case against the New Black
Panther Party accused his former employer of instructing attorneys in the civil
rights division to ignore cases that involve black defendants and white

[45mb ]
] House Republicans ramp up pressure on SEC Chairman Mary Schapiro.
Drudgereport: Gadhafi Keeps Tight Grip on Capital...

Major oil plant ablaze...
Oil millions still flow for Gadhafi...
Internet service cut again...
Battle for control...
Prayers Lead to Protests...
Rise of Islamist regimes...
AL-JAZEERA LIVE FEED... REUTERS WIRE...
Tables turned on one of Gaddafi's boy soldiers...
Rebels reject Chávez mediation offer...
Video: Bloody Battle...
Obama: Pentagon Examines 'Full Range' of Options...
Pump prices jump another 4 cents -- overnight...
Santelli: 'Good' Jobs Report Has Dark Side...
Layoffs At Pre-Recession Level; Job Openings Down 30%...
GALLUP: Unemployment Hits 10.3% in February...
UPDATE: More inconsistencies found in stimulus job creation claims...
UN: Food prices hit record high...
Gadhafi vows fight to last man...
'It's a conspiracy to take our oil'...
Rebels rout Gadhafi force attack on oil port...
Seek Airstrikes by Foreign Forces...
FARRAKHAN: JEWS PUSHING U.S. INTO WAR
Announced Job Cuts 'Rose 20% From Year Ago'...
Idaho county files for bankruptcy...
Delaware voters say no to Lobotomy Joe ….. Biden (the self-proclaimed zionist) --
for name of school...
'Wobama’s Where's Waldo?' Presidency...
All Former U.S. Presidents To Get Together For TV Special Honoring George H.W.
Bush…(How totally pathetic they are! How embarrassing for NBC!) ... [ Wake up!
http://albertpeia.com/bushcrimes.htm ]
U.S. assault ships clear Suez, enter Med Sea on way to Libya...
Panic on borders...
...180,000 refugees pour into Tunisia, Egypt
Could become "a giant Somalia"...
Gunman kills 2 US airmen at German airport...
Shouts 'Allah Akbar' before shooting...
GOLD HITS NEW HIGH -- AGAIN...
Angry mob confronts Wisconsin GOP Senator... Video...
Wisc GOP passes bill to fine AWOL Dems...
White House seeks $15 billion from federal property sales...
OIL SHOCK AS MIDEAST SPIRALS
More Than 140,000 People Flee Libya...
Gadhafi forces retake towns near capital...
Cameron backtracks on no-fly zone plan...
Astonishing wealth of Gaddafi and his family revealed...
WIKILEAKS' ASSANGE CITED JEWISH CONSPIRACY...
YEMEN RAGES...
President says US, Israel behind unrest...
Fashion Week Führer: DIOR Fires Galliano After Racism Complaints...
'I love Hitler'...
'Your parents should have been gassed'...
FADE: OSCAR RATINGS DOWN 10% ...
Injury Added to Insult... [ In terms of production value (rich in content in every way), I believe
this to be as good and in my view better than ever as award ceremonies can be without the
inimitable Bob Hope. I believe any falloff can be directly attributable to last year the academy’s
egregious misstep in over-looking ‘Avatar’ / Cameron presaging a similar fate concerning my
clear choice of ‘Inception’ / Nolan ( Truth be told, I’ve yet to see ‘The King’s Speech’ failing to
muster any enthusiasm for seeing a film centered around a ‘so-called royal’ trying to over-come a
speech impediment, albeit a minor one, regardless of circumstances; viz., stuttering, though I
would concede that it was probably well done. We all know of the problems attendant to english
royal inbreeding…ho hum… I did find ‘The Black Swan’ superb but attribute same to my own bias
and fascination with viewing female ballet dancing). Bob Hope: Academy Awards, ‘passover’ …
very funny! ]
CIVIL WAR WEEKEND
Armed pro-Gaddafi gangs roll in Tripoli...
...Shooting from ambulances...
GRAFFITI AND BARRICADES...
Gaddafi vows to crush protesters...
Egypt protesters dispersed by force...
Al Qaeda calls for revolt against Arab rulers...
Obama to Gaddafi: Leave now...
UN Security Council passes votes to sanction...
Gas prices surge 17 cents in a week...
Motorist Calls Police Over Rising Prices...
OBAMA: CAN WE DRILL NOW?
LONDON DRIVERS PAYING $9 A GALLON...
Spain reduces motorway speed limit to save oil...
WOBAMA 'IMPEACHMENT' WARNING... ...to announce exploratory committee 'in
10 days'
WEST MOVES MILITARY ASSETS AROUND LIBYA
CharlieSheen Publicist Runs For Hills...
Actor set to sue CBS for $320M, 'mental anguish'...
The Legal Letter...
THE 'TODAY' INTERVIEW...
NY MAG: Madoff on Madoff: The Jailhouse Tapes...
Government a Ponzi scheme...
CIVIL WAR WEEKEND...
Anti-Gaddafi forces widen control...
Take town 30 miles from Tripoli...
Security forces defect...
Armed pro-gangs roll in capital...
...shooting from ambulances
STUDY: World's sixth 'mass extinction' may be underway…[Much, much too
optimistic relative to reality] ...
ISRAELI'S YOUTUBE SPOOF OF GADHAFI CATCHES ON IN ARAB WORLD...
Police station, state office burning in Oman town...
Tunisia prime minister resigns...
Gingrich to announce exploratory committee 'in 10 days' [ Neo-con Dreamin’! I
mean, come on … are memories so short they don’t recall him being a total
hypocrite, zionist shill, and part of the problem though to his credit, he’s not a
mobster and complete joke as is trump! ]
CHICAGOLAND: Lawmaker Suggests BOEING'S Contract Win A Result Of Dirty
Politics... [ The contract’s with money the nation doen’t really have anyway; and,
the value of the money paid will be worth substantially less by completion; and,
no surprise … Chicago hasn’t changed much from the days of capone and is
rivaled in terms of corruption by such states as jersey, new york, etc.. ] ‘…“I’m
disappointed but not surprised,” Republican Sen. Richard Shelby said. “Only
Chicago politics could tip the scales in favor of Boeing’s inferior plane. EADS
clearly offers the more capable aircraft.”…’
Rep. Rangel Causes Stir In Courtroom; Reprimanded By Judge...NEW YORK
(CBSNewYork) – Congressman Charles Rangel caused a stir in court Friday while
trying to lend his support for bail of Afrika Owes.Owes, 17, had been a student at
the prestigious Deerfield Academy in Massachusetts. Prosecutors say she was
also a member of a drug gang that terrorized 137th Street in Harlem.Owes was
one of fourteen suspected “137th Street Crew” gang members arrested last
month. Prosecutors said the gang used shootings, beatings and robberies to
protect their turf and gain street status on a stretch of West 137th Street. The
gang allegedly openly dealt crack in apartment lobbies, near Harlem Hospital and
near the Abyssinian Baptist Church. Congressman Charles Rangel argues for
Owes getting bail to Juliet Papa of 1010 WINS
Stocks rally(Washington Post) [ Come on! You can’t believe anything these
desperate desparados say! What news, bad or good, don’t the frauds on wall
street rejoice at (you can do that with manipulated cumputerized trading)
Drudgereport: Layoffs At Pre-Recession Level; Job Openings Down 30%...
GALLUP: Unemployment Hits 10.3% in February...
UPDATE: More inconsistencies found in stimulus job creation claims...
UN: Food prices hit record high...
Announced Job Cuts 'Rose 20% From Year Ago'...
This manipulated bubble rally in this secular bear market based on b*** s*** alone
is an especially great opportunity to sell / take profits while you can since
stock markets, including China, Brazil, India and Hong Kong, have been in
fairly significant corrections since November, down between 12% and 17%.
Their major concerns have been rising inflation and the resulting monetary
tightening by their central banks to combat the inflationary pressures...So
was this week’s stumble the beginning of a more serious correction? The
events and reports this week did provide more evidence that the stock
market may be ahead of reality regarding prospects for the economy, and
therefore corporate earnings, going forward, which should at least limit the
market’s upside potential. Limited upside potential equals more downside
risk? It might be wise to lighten up some into strength that may develop over
the next few days during the ‘monthly strength period.’ ] Wall Street
rejoices in an unexpected drop in jobless claims.
Violent spring looming in Afghanistan (Washington Post) [ See … something to

look forward to … must be that good news that keeps getting pushed back … and
speak … ‘booming’ … but not the defacto bankrupt american economy for which
a crash is ‘looming’. Could somebody help me out with a translation of gates’
speech a west point … I must be missing something … Lt. Gen. John Kelly, who
lost son to war, says U.S. largely unaware of sacrifice (Washington Post) [ I
disagree! They are very much aware; as they stand in unemployment lines, use
food stamps to get by, etc.. I hate to sound cavalier and I’m sorry that Kelly lost a
son to war, but along with the multitude of civilians in the nations unlucky
enough to provide a source of corporate welfare to the military industrial complex
and war profiteering for the few (as warned against by President General
Eisenhower), they died for nothing, for no good reason beyond the false
propaganda. Six NATO troops killed in Afghanistan (Washington Post) [ Is there
something wrong with the following picture? … am I missing something? …
Gates's warning: Avoid land war in Asia, Middle East, and Africa Christian
Science Monitor - In a speech to cadets at the United States Military Academy at
West Point, Gates's message was clear: The US military services, as well as the
elected and appointed civilians who send them to war, need better ways of
foreseeing and preparing for ... Gates Tells US Army to Take New Approach
Voice of America Warning Against Wars Like Iraq and Afghanistan New York
Times [ Better said, than unsaid; but, methinks a bit late for that in light of
pervasively corrupt, defacto bankrupt america’s consummate decline and fall! If
only they had listened and not shot at the messenger … things could have been
different! ] ] American military officials expect that the Taliban will mount a
campaign to regain ground lost to U.S. troops last year and use suicide bombing
teams to strike at those associated with the Afghan government or coalition
forces.
Public pension shortfalls could reach $1.5T (Washington Post) [ First, I think this
is a low-ball estimate since it may assume some of the wildeyed
assumptions beyond those being discounted in this figure. Then there’s
social (in)security. Next, there’s the private pension shortfalls, particularly in
the defined benefit plans. Most importantly is the defacto bankruptcy of the
nation and the insurmountable debt / debt service attendant thereto. In sum,
without exaggeration it really is quite a bad picture here beyond the paper
fraud / froth frenzy on fraudulent wall street which of course has and still
remains a significant part of the problem. Prosecution, fines, disgorgement,
well deserved of the frauds on wall street could significantly help lessen the
shortfalls. ] The pension funds for state and local workers are understating
the amount they will owe workers by $1.5T or more, according to some
economists who have studied the issue, meaning that the benefits are much
costlier than many governments thought.
Krauthammer: Converts to the Bush Doctrine (Washington Post) [ ‘bush
doctrine’? What’s that? Moronics(http://albertpeia.com/bushisms.htm) ,
imbecility, war crimes (http://albertpeia.com/evilonthetarmac.htm ), etc.?
Dumbya bush has been nothing less than a one-man wrecking crew,
domestically and internationally and ‘wobama the b’(for b*** s***) has
followed suit. Where do they get the likes of krauthammer on the right,
Milbank on the left, etc.. Wake up! ]
U.S. prepares for possible rise of new Islamist regimes Revolutions may bring a
more religious cast to Mideast politics (Washington Post) [ Oh riiiiight!
Pervasively corrupt, defacto bankrupt america, the ‘johnny on the spot’ when it
comes to being ahead of the events / curve … and they’re so interested in
democratization … as in Saudi Arabia, etc… Egypt, Serbia, Georgia… The History
of US Sponsored “Democratization” There is a Russian proverb: only a fool
learns from his own mistakes. As Georgia’s foreign minister visits his Egyptian
counterpart, there are lessons for Egypt in similar revolutions in eastern Europe
and the ex-Soviet Union. ] Recent developments have alarmed some who fear that
the governments taking shape will inevitably undercut democratic reforms.
Commerce Data Shows Personal Incomes Rising but Few Americans Believe It
[ Yeah, they don’t believe it because it’s not true. Scandal scarred commerce
department of pervasively corrupt, defacto bankrupt, and very desperate
america? Come on, give us all a break. ] Zielinski ‘American workers should be
celebrating the latest numbers from the U.S. Department of Commerce that show
personal income at all time highs. Since taking a rather sharp dip during the
recession of 2008-2009, personal income has soared to almost $13 trillion, up
from $12 trillion in early 2009.
[chart] (Click to enlarge)
Getting Americans to believe that their incomes have actually increased is

another story. While the Department of Commerce is reporting all time highs in
income, another survey released by Fannie Mae shows the opposite.
Fannie Mae (FNMA.OB) conducts a National Housing Survey every quarter that
polls homeowners and renters in depth about their confidence in
homeownership, overall confidence in the economy and the current state of their
household finances.
The latest National Housing Survey for the fourth quarter of 2010 polled 3,407
Americans and the results do not reflect the rosy income numbers reported by
the Department of Commerce.
The survey revealed that 62% of all respondents believe the U.S. economy is on
the wrong track, 60% reported that monthly household income was the same as a
year ago and 34% said that their monthly expenses were "significantly higher"
than a year ago. Only 19% of those polled said their incomes were significantly
higher.
Keep in mind that Americans do not normally "inflation adjust" their perception of
personal income – when respondents say that their income has not changed, it
means they are receiving the same absolute amount of dollars, unadjusted for
inflation.
[chart] (Click to enlarge)
Total personal income may have increased but income gains seem to have been
limited to a small minority of Americans.
In any event, if most Americans have not seen an increase in their monthly
incomes, there is little reason for comfort going forward. As higher oil and
commodity prices work their way through the system, the basic cost of living will
increase for everyone. If that’s not enough, once Fed Chairman Bernanke’s
obsession with creating higher inflation succeeds, we are all apt to feel poorer.’
3 Market Valuation Indicators Continue to Signal Caution Short ‘Yesterday I

posted monthly updates of the three valuation indicators I routinely follow:
• The relationship of the S&P Composite to a regression trendline (more)

• The cyclical P/E ratio using the trailing 10-year earnings as the divisor
(more)
• The Q Ratio — the total price of the market divided by its replacement cost
(more)
This post is essentially an overview and summary by way of chart overlays of the
three. To facilitate comparisons, I've adjusted the Q Ratio and P/E10 to their
arithmetic mean, which I represent as zero. Thus the percentages on the vertical
axis show the over/undervaluation as a percent above mean value, which I'm
using as a surrogate for fair value. Based on the latest S&P 500 monthly data, the
index is overvalued by 72%, 48% or 43%, depending on which of the three metrics
you choose.
I've plotted the S&P regression data as an area chart type rather than a line to
make the comparisons a bit easier to read. It also reinforces the difference
between the two line charts — both being simple ratios — and the regression
series, which measures the distance from an exponential regression on a log
chart.
click to enlarge images
[chart]
The chart below differs from the one above in that the two valuation ratios (P/E
and Q) are adjusted to their geometric mean rather than their arithmetic mean
(which is what most people think of as the "average"). The geometric mean
weights the central tendency of a series of numbers, thus calling attention to
outliers. In my view, the first chart does a satisfactory job of illustrating these
three approaches to market valuation, but I've included the geometric variant as
an interesting alternative view for P/E and Q.
[chart]
As I've frequently pointed out, these indicators aren't useful as short-term signals
of market direction. Periods of over- and under-valuation can last for years. But
they can play a role in framing longer-term expectations of investment returns. At
present they suggest a cautious outlook and guarded expections.’
Bulls Find a Way to Rally: Dave's Daily ‘ Stocks rallied on economic data (better
than expected Jobless Claims & ISM Data) and hopes (I kid you not!) that
Libya might accept mediation via Hugo Chavez which drove oil prices
slightly lower. That's about the gist of it as best I can tell. Most markets
reversed course with stocks higher, bonds much lower, precious metals
down and commodities lower overall. I woke up this morning in Las Vegas
(family reunion) and thought something big must have happened and other
than the points rallied didn't really see that much. But, let's remember, bulls
are a trigger happy bunch, believe the Fed might continue QE forever (more
POMO today) and MENA is nothing to worry about "today". Further, with
great expectations, bulls must believe the non-farm payrolls report Friday
will bring much joy. One pundit yesterday noted markets were "resilient"
and was grateful oil prices weren't "too high" (he must not commute). That's
basically the bullish mindset. Retail Sales were reported as good and with oil
still over $100; SUVs are believed to be flying off car lots. This is hard to
imagine. The next "I got to have it" iPad2 was introduced and if you had the
original would you really jump to the new one? Yes, for those in Hollywood
or executive offices of hedge funds and Wall Street. But, no matter how you
slice it this week has seen extraordinary volatility and it's not over yet…’
Bernanke Throws Gasoline on the Fire Payne ‘
Sustained rises in the prices of oil or other commodities would

represent a threat both to economic growth and to overall price
stability, particularly if they were to cause inflation expectations to
become less well anchored. -Ben Bernanke
If it's all about expectations then I think the Federal Reserve Chairmen added
gasoline to the fire on Tuesday. Many people already see inflation and don't
expect it to go away anytime soon. This puts the Fed in a tough position because
so far it has been able to get what it wants in the perception department. The
wealth effect is creeping back. People aren't afraid to open their 401K statements.
Yet, on that note, people aren't flocking to the stock market as most still seek
comfort in precious metals or prefer cooling their heels on the sidelines.
Despite soaring consumer confidence surveys, to which Bernanke referred,

visions of March 2009 burns bright in the minds of many. This actually makes the
market more vulnerable to a series of lower moves based solely on a domino
effect of fear. But this all falls into the emotion category, and while moves from
these emotions can be sharp and abrupt, they don't reflect true value or future
potential. What it does is create one heck of a dilemma. It also could be a heck of
a challenge for investors, active and those on the sidelines, still smarting about
that nuclear meltdown of 2009.
In the meantime, Bernanke might have sold the wisdom of QE 1 and 2 so well that
the foregone conclusion is that there is no way the economy (stock market…
wink) should need additional help. That means the stock market has to find new
sources to make up for the Fed's $75.0 billion monthly injections. It's highly
unlikely individual investors will make up that number, and professionals may not
have the powder. Plus, those professionals are held to greater accountability.
Yes, there are still trillions of dollars on the sidelines and people are becoming
more eager to make money, but that still has to translate into taking chances. It's
easier to take chances when one feels confident.
I continue to believe such confidence begins with our government. The House
passed a stopgap budget bill giving lawmakers two weeks to figure out where to
cut and by how much. Republicans in the House have already passed a bill with
$61.0 billion in cuts but Democrats are balking. They point to a report from
Goldman Sachs (GS) that says such cuts would decrease GDP by 1.5% to 2.0% in
the second and third quarters. Mark Zandi says the cuts would cost 700,000 job
losses through 2012. I beg to differ. Fiscal responsibility would embolden people
to put money to work knowing their own government is becoming responsible.
But the White House holds the wildcard, and that's to lower corporate taxes. We
saw consumer income climb from the payroll tax cut, I think we could see
massive money pour into society the right way, through job hires and research
and development. Let U.S. businesses bring money parked abroad back home
and we could find a source to take the place of that $75.0 billion gravy train that
will probably come to a halt in June. The market can handle higher prices as a
consequence of lower unemployment and rising wages. But, the Fed has fueled
the rise in crude as much as it has played the role in gold and silver spiking
higher. There is a demand dynamic to crude, particularly in emerging markets.
Going into the close on Tuesday we also learned there is surprising domestic
demand for petroleum.
American Petroleum Institute reported on changes in inventories.
Crude drawdown: 1.08 million barrels (consensus was build of 1.6 million)
Gasoline drawdown: 4.9 million barrels (consensus build of 900,000)
Distillates drawdown: 1.44 million (consensus drawdown of 1.8 million)
I still believe most of Tuesday's spike was Bernanke talking up oil and the notion
of commodities climbing on expectations of higher prices.
[chart]
Consumers are talking a good game about confidence, but it's going to take
serious job gains for them to put their money where their survey responses are. I
think the January jobs number could come in above 200,000, but I wonder if
weather could have played a role or could we have yet another disappointment.
Confidence would get a boost with a quick resolution in the Middle East. Right
now, it looks like Saudi Arabia gets through along with Oman and Yemen. Libya
would seem like a done deal, although waking up to learn Qaddafi launched an
unsuccessful counterattack yesterday was unnerving. Now, dissidents might ask
America to provide air attacks as cover for their own counterattack. As it stands,
we have two U.S. Naval battleships heading to Libya for humanitarian assistance.’
Housing Market, Community Banks Will Drag the Economy Suttmeier ‘The Fed’s
Beige Books are the gossip columns from the 12 Fed districts, and the anecdotal
evidence shows that despite some economic improvements, the housing market
continues to be a drag, and that community banks are still reluctant to lend. The
FDIC Quarterly Banking Profile is the balance sheet of the US economy, and
nearly 60% of all community banks still face balance sheet stress that makes it
difficult to increase lending, as noncurrent loans continue to be a burden.
The latest Beige Book, released on Wednesday, showed that economic growth
continued to expand at a modest to moderate pace in January and early February.
The major headwind has been residential real estate activity and some Fed
districts reported a slight increase in activity, but the overall level of home sales
and construction remained low. Nonresidential construction was described as
weak.
In a separate report from the FDIC, their Quarterly Banking Profile for the fourth
quarter showed continued stress among the community banks that provide
funding to real estate lending. Overexposures to Construction & Development
Loans and Commercial Real Estate Loans continued. This correlates to the Beige
Book reporting that credit standards were unchanged to tighter.
• The FDIC List of Problem Banks rose by 24 in the fourth quarter to 884 from
860, which is 11.5% of the 7,657 FDIC-insured financial institutions.
• 1,265 community banks remain overexposed to C&D loans and another

1,358 are overexposed to CRE loans, which includes nonfarm and
nonresidential real estate loans. The total, 2,623 community banks, is
34.3% of all banks that still need to unwind risk exposures.
• Looking at Pipeline Risk, which is the ratio of CRE loans to CRE loan
commitments, 4,479 community banks have a Pipeline of 80% or higher,
which is 58.5% of all FDIC-insured financial institutions.
• Total Assets in the banking system declined $51.8 billion in the fourth
quarter of 2010 with C&D loans down $32.5 billion. Even so C&D loans still
total $321.6 billion with nonfarm, non-residential real estate loans at $1.07
trillion, and problem loans continue.
The housing market thus remains a drag on the US economy, and the network of
community banks are not fit financially to increase lending to homebuilders and
to potential home buyers. This environment caused the 2008/2009 recession and
because the environment is not improving, housing and the banking system can
again drag the economy into a double dip. I have been calling it “The Great Credit
Crunch” since March 2007, and the crunch continues in 2011.
10-Year Note -- (3.477) Weekly and annual value levels are 3.630 and 3.796 with
the 50-day simple moving average at 3.446 and daily and monthly risky levels at
3.356 and 3.002.
[chart]
Source: Thomson / Reuters
Comex Gold -- ($1434.1) Strength tested my monthly and quarterly risky levels at
$1437.7 and $1441.7. The 50-day simple moving average is $1375.8 with
semiannual risky level at $1452.6.
[chart]
Nymex Crude Oil -- ($102.44) My annual pivots at $99.91 and $101.92 have
become strong magnets. My monthly value level is $96.43 with semiannual, daily,
and quarterly risky levels at $107.14, $108.37, and $110.87.
[chart]
The Euro -- (1.3863) It tested Wednesday’s risky level at 1.3898. My weekly and
quarterly value levels are 1.3690 and 1.3227 with a daily risky level at 1.3942. The
euro remains below its 200-week simple moving average at 1.3953.
[chart]
Daily Dow: (12,067) It's trading between its 50-day simple moving average at
11,916 and its 21-day simple moving average at 12,148. Daily and annual value
levels are 11,977 and 11,491 with weekly, monthly, and annual risky levels at
12,461, 12,741, and 13,890.
[chart]
ValuEngine Valuation Warning -- A ValuEngine Valuation Warning occurs when

more than 65% of all stocks in the ValuEngine universe are calculated to be
overvalued. On February 18, 68.6% of all stocks were overvalued, which was the
highest of the year. Today 62.1% of all stocks are overvalued. All 15 of 16 sectors
are overvalued, eight by double-digit percentages.
My daily and annual value levels are 11,977 and 11,491 with weekly and
• The S&P 500 (1308.4) Libya Trading Range: 1294 to 1344. The 50-day is
1293.55 with the 21-day at 1319.83. My daily and quarterly value levels are
1291.2 and 1262.5 with weekly and monthly risky levels at 1352.9 and
1381.3.
• The Nasdaq (2748) Libya Trading Range: 2706 to 2840. The 50-day is
2733.76 with the 21-day at 2779.85. My daily value level is 2690 with weekly,
quarterly, and monthly risky levels at 2860, 2853, and 2926.
• The Nasdaq 100 (NDX) (2327) Libya Trading Range: 2285 to 2403. The 50-
day is 2304.84 with the 21-day at 2350.52. My daily value level is 2268 with
weekly, quarterly, and monthly risky levels at 2436, 2438, and 2499.
• Dow Transports (4957) Libya Trading Range: 4918 to 5306. Below its 50-
day at 5126. My daily and quarterly value levels are 4804 and 4671 with
weekly and annual pivots at 5150 and 5179.
• The Russell 2000 (810.90) Libya Trading Range: 795 to 838. The 50-day is
799.71 with the 21-day at 813.44. Daily and quarterly value levels are 793.95
and 765.50 with weekly and monthly risky levels at 826.33 and 850.79.

439 to 474. The 50-day is 441.01 with the 21-day at 459.17. My daily value
level is 438.94 with a monthly pivot at 453.89, quarterly pivot at 465.93, and
weekly risky level at 493.15.’
Why the Dollar’s Reign Is Near an End Wall Street Journal | Fully 85% of foreign-
exchange transactions world-wide are trades of other currencies for dollars.
Ron Paul To Ben Bernanke “I Want A Definition Of Money!” MOX News |

Congressman overseeing monetary policy questions Fed chair.
China Gold Demand Voracious – Chinese Yuan Gold Standard? Gold and silver
have recovered somewhat from slight falls in Asia overnight and are now
higher against the British pound and Swiss franc which are weaker this
morning. With geopolitical instability looking set to escalate and the real
possibility of a military confrontation in the Mediterranean, any sell off in the
precious metals will likely be tentative.
Monetization and Debt Will Only Bring Inflation Many ask, what will happen when
quantitative easing ends? China doesn’t want to accumulate more Treasury
and Agency bonds and we find the buying from London and the Cayman
Islands questionable at best.
97% of All U.S. Mortgages are Backed by the Government I heard a recent talk by
Richard Wolff – Professor of Economics Emeritus at the University of
Massachusetts in Amherst (PhD in Economics from Yale) – where Wolff said
that 97% of all U.S. mortgages are either written or guaranteed by the
government.
Oil: How High Will It Go? Some emails have been stacking up with regard to
what’s happening with oil prices. In summary, people are wondering, “How
high will it go?” and “How bad could this get?” and “Is this it?” etc.
National / World
TSA Controversy Explodes Steve Watson | One week is a long time in the world of
TSA tyranny .
Making “V”ictory a Reality: Answer to 1984 Contest Entry Infowars | An awesome

example of peaceful activism in the fight against 1984.
James Woolsey denies CIA media control Aaron Dykes | Former CIA director plays
dumb on Operation Mockingbird and admitted media propaganda.
Zakaria: America is Doomed Because It Fails to Embrace Globalism Kurt Nimmo |
Fareed Zakaria is a member of both the CFR and Rockefeller’s Trilateral
Commission.
Rolling Stone Gets Alex Jones Wrong Saman Mohammadi | Alex is attracting
listeners because he doesn’t play the false left-right game like Glenn Beck
and other clowns on television.
On Charles Ponzi Day We Celebrate Another All Time Record In Food Stamp
Usage Bernanke’s plan to recreate Libya in our own back yard is continuing
to work magnificently. It is no surprise that on Charles Ponzi day, the update
to food stamp usage indicates that in December those receiving an average
of $134 per month has just hit 44.1 million people.
Gas Prices Jump 4 Cents Overnight Gas prices jumped 4 cents overnight, with
the average American driver now paying more than $3.40 a gallon.
Hillary Clinton: ‘We Are Losing The Infowar’ Secretary of State Hillary Clinton
made a tacit admission during a U.S. Foreign Policy Priorities committee
meeting yesterday, arguing that the State Department needs more money
because the US military-industrial complex is “losing the information war” to
the likes of Russia Today and Al Jazeera due to the US corporate media
having completely abandoned “real news”.
Wars, Rumors Of Wars, Skyrocketing Oil Prices And Global Economic Chaos –
Why Is All Of This Happening? Did anyone out there anticipate that 2011
would be such a wild year?
Egypt, Serbia, Georgia… The History of US Sponsored “Democratization” There

is a Russian proverb: only a fool learns from his own mistakes. As Georgia’s
foreign minister visits his Egyptian counterpart, there are lessons for Egypt
in similar revolutions in eastern Europe and the ex-Soviet Union.
personality disorders so prevalent in america … ‘fuzzy, California laid
back thinking’, ‘whatever’… Who knows? ) But, that said, wobama’s far
worse than just a ‘coward in a cheap suit’. Indeed, Wobama’s a total fraud
having been elected under false pretenses; viz., his total, unequivocal, and
unfulfilled b*** s*** (those campaign promises) ! Moreover, there has
been some persuasive documentation questioning wobama’s citizenship /
of Congress Paul Craig Roberts | Congress could try to protect its loss of the
power of the purse by impeaching Obama. Drudgereport: WOBAMA
'IMPEACHMENT' WARNING... ...to announce exploratory committee
'in 10 days' Globalist Shill Barack Obama Asks Business Leaders For
Job Creation Ideas Even As He Ships More Of Our Jobs Overseas As Part
Of The New One World Economy The other day, Barack Obama
summoned a group of business and labor leaders to the White House and
“challenged” them to come up with some great ideas for creating more
jobs inside the United States. Public confidence in Obama reaches new
low (Washington Post). Six in 10 Americans lack faith in Obama and hold
lower esteem for members of Congress, according to the latest Washington
Post-ABC News poll. Such stats as this tend to typify scenarios as this
where you break every significant campaign promise that got you elected,
from endless war (ie., Afghanistan, etc.) to not prosecuting the frauds on
wall street, and the growing realization of ‘typical’: Public confidence in
Obama reaches new low (Washington Post) Six in 10 Americans lack faith
in Obama and hold lower esteem for members of Congress, according to
the latest Washington Post-ABC News poll. Such stats as this tend to typify


Come on … don’t make me laugh! … Inflation Is Here – Just Open Up Your Eyes
And Look At These 5 Financial Charts! (see infra) Despite what Federal Reserve
Chairman Ben Bernanke says, rampant inflation is officially here. The federal
government is constantly monkeying with the numbers to keep the “official” rate of
inflation below 2 percent, but it is becoming very difficult to deny that the cost of almost
everything is really going up these days. … Merk ‘…While we believe food inflation
will be with us for quite some time and may contribute to an unstable world
possibly for years to come, the Federal Reserve appears to be firmly in the camp
of heavily discounting food inflation. The European Central Bank (ECB), in
contrast, has historically taken commodity inflation more seriously than the Fed –
ECB President Trichet talks about his concern over "second round effects," i.e.,
on its expansionary path…’
Gerald Celente: “There is no recovery — it’s a coverup!” Sic Semper Tyrannis |

Celente argues the oil prices have been going up before the recent chaos in the
Middle East. ‘…One other point brought out by Gerald Celente is the fact that the
current puppet regime in the White House is “cooking the books” on the
unemployment numbers and current inflation rates. They are making their own
rules on how to determine inflation rates by leaving out essential information
such as food and fuel prices. The same is being done with White House
unemployment numbers by simply leaving out those who have given up looking
for jobs, as well as other deceptive “carnie” tricks (in reference to White House
spokesperson Carnie) in which he compares the administration to a traveling
carnival act.

rich…’

[45mb ]

Christian minorities minister assassinated (Washington Post) [ Christians,
Christianity lumped together with war criminals, zionists, invaders, plunderers,
murderers, etc.. No surprise here. Winning hearts and minds? I don’t think so …
Blowback? Most assuredly: 2 U.S. airmen killed, 2 hurt in shooting near Frankfurt
airport (Post, March 2, 2011); Most U.S. aid to Pakistan hasn't gotten there yet
(Post, March 2, 2011); Clinton: U.S. losing global public-relations battle - to
'Baywatch' and wrestling (Post, March 2, 2011 Well, I don’t know about baywatch
and wrestling, but reality beyond false propaganda will do it every time) ]
Shahbaz Bhatti is gunned down in the second killing this year of a liberal, senior
government official who had spoken out against the nation's stringent blasphemy
laws.Karzai condemns deadly NATO airstrike (Washington Post) [ Well, for
pervasively corrupt, defacto bankrupt america, it’s just another of many war
crimes. They just role out the propaganda machine that no one is buying
anymore. Yet, can you believe your eyes and ears here: Six NATO troops killed in
Afghanistan (Washington Post) [ Is there something wrong with the following
picture? … am I missing something? … Gates's warning: Avoid land war in
Asia, Middle East, and Africa Christian Science Monitor - In a speech to cadets at
the United States Military Academy at West Point, Gates's message was clear:
The US military services, as well as the elected and appointed civilians who send
them to war, need better ways of foreseeing and preparing for ... Gates Tells US
Army to Take New Approach Voice of America Warning Against Wars Like Iraq
and Afghanistan New York Times [ Better said, than unsaid; but, methinks a bit
messenger … things could have been different! ] A NATO airstrike that Afghan
officials said killed nine children collecting firewood in eastern Afghanistan
beccomes the latest irritant in the tense relationship between President Hamid
Karzai and the international force in the country.
Government cracks down on employment scams (Washington Post) [ Yet leave

the biggest, most deleterious scam / fraud unprosecuted. What total b*** s***!
rich…’

[45mb ]
] FTC says companies promised to help people find work

but instead took their money.
Oil soars to more than $100 a barrel on Libyan unrest (Washington Post) [ When
you factor in reality, the worst is yet to come … Gerald Celente: “There is no
recovery — it’s a coverup!” Sic Semper Tyrannis | Celente argues the oil prices
have been going up before the recent chaos in the Middle East. ‘…One other
point brought out by Gerald Celente is the fact that the current puppet regime in
the White House is “cooking the books” on the unemployment numbers and
current inflation rates. They are making their own rules on how to determine
inflation rates by leaving out essential information such as food and fuel prices.
The same is being done with White House unemployment numbers by simply
leaving out those who have given up looking for jobs, as well as other deceptive
“carnie” tricks (in reference to White House spokesperson Carnie) in which he
compares the administration to a traveling carnival act.

A Crash in Saudi Arabia, Arrogant Eurocrats and a Look at the Markets Part 2
Tenebrarum ‘Saudi Arabia's Stock Market Plunges
Stock market traders in Saudi Arabia got a bit of a wake-up call yesterday. Their stock
market evidently sees something it doesn't like. Why the market is all of a sudden more
worried than it was previously about the challenge to the established political order in
the Arab world is a bit of a mystery, but presumably traders have thus far deluded
themselves into thinking that Saudi Arabia would be immune to unrest. Something has
evidently changed their mind. It seems to us that this event deserves the moniker
warning sign. The selling has been extremely heavy for three days now. Since this
market is largely driven by local investors, we should probably attach some significance
to this recent plunge. Someone has begun to sell three days ago and has spooked the
herd. It's a good bet that the someone who started the selling is better informed than the
rest of us.
Note in this context the following information about the current oil policy of Saudi Arabia
from Marketwatch. While the article references anonymous sources, which stands in the
way of fact-checking, there is one paragraph that caught our eye:
"The main threat is ... Saudi instability when the current king
dies. We know he is very ill but obviously there is no
indication of how critical that condition is. But it is
acknowledged that the next transition will present a much
bigger threat to internal stability ... Vested interest groups
have been waiting for this transition to push their agenda.
Saudi experienced considerable regional instability up to 10
years ago but bought it off with higher oil-based spending.
Today the problem is as bad, if not worse. There have been
only a few of the promised reforms ... Resentment towards
the wealth gap with the royals is very high ... Even if/when
the instability in other countries, such as Libya, settles, the
Saudi succession threat is now firmly on the table. What
happens in Bahrain could be very key. That alone will keep
the oil market nervous for this year."
The very ill king could in fact be the key to the sudden crash in Saudi Arabia's stock
market. With political instability across the entire region, a fight for succession in Saudi
Arabia wouldn't be very conducive to stability at this particular point in time. The fact that
spreading some of the oil wealth around has not been effective in lowering the level of
resentment vis-a-vis the royals sounds very credible to us. So does the assertion that
what happens in Bahrain will be very important. Bahrain is ruled by a monarchy as well
and should it lose power, the Saudi masses could be galvanized.
Saudi Arabia is the world's second biggest oil producer after Russia and as a result the
monarchy has enormous financial resources at its disposal. This certainly helps with
buying off numerous special interest groups. Also, as we mentioned in passing
previously, the royals have a deal with the powerful and highly conservative religious
establishment that helps keep them in power. Essentially the country is a mixture
between a monarchy and theocracy. The strict religiously inspired laws may on the one
hand sit well with the deeply religious population, but on the other hand they also make
for a very repressive environment that may sit less well with the youth – large numbers
of which are unemployed. Also, the extravagance of the many Saudi princes (over
10,000 royals are about, all well-endowed with stipends) may not go down all that well
with the rest of the Saudis , regardless of what deals the royals have made with the
mullahs. All in all, it remains a potentially explosive situation.
[chart]
(Click to enlarge)
Saudi Arabia's Al-Tadawul All-share Index goes somewhat belatedly into free-fall.
In the meantime, Muammar Qaddafy continues to give utterly bizarre interviews (if
anything, they have become even more so ... "I don't lead Libya, I have no power" ...
"The people of Libya love me!"), while more and more of Libya falls to opposition forces.
Evidently the man has lost whatever connection to reality he may once have possessed.
The Pentagon has meanwhile assembled naval forces off Libyan waters – possibly to
enforce a no-fly zone.
While all eyes are on Libya, Egypt has once again decided not to reopen its stock
market – the reopening of the stock exchange has been been postponed repeatedly, so
this is almost business as usual by now.
"The Egyptian Exchange, shuttered for over a month, was to

resume trading on Tuesday. But in an overnight statement,
exchange officials said the market would reopen instead on
March 6 to 'allow investors to profit from the government's
support to guarantee stability in the bourse.'
"The decision reflected the strong undercurrent of unease in

the Arab world's most populous nation where the market's
benchmark stock index had shed almost 17 percent in two
consecutive trading sessions before it closed at the end of
the business day on Jan. 27."
Keep the market closed to 'allow investors to profit from the government's support to
guarantee stability in the bourse'? Good luck with that one.
As a final note on the Middle East, we continue to recommend keeping an eye on Iran.
The regime is evidently worried, and given Iran's importance as an oil exporter, any
unrest in that country would arguably have an even bigger effect on the oil market than
Libya's recent disintegration.
Ireland and the Arrogant Eurocracy
Via Dr. Jim Walker of the excellent research firm Asianomics, we have been made
aware of some of the things various eurocrats have had to say about the Irish election.
Some of these quotes are remarkable for their unbridled and quite unwarranted
arrogance.
"As Irish voters headed for the polling booths on Friday, the
European Commission bluntly declared that the terms of the
EU-IMF bailout "must be applied" whatever the will of
Ireland's people or regardless of any change of government.
"It's an agreement between the EU and the Republic of

Ireland, it's not an agreement between an institution and a
particular government," said a Brussels spokesman.
A European diplomat, from a large eurozone country, told

The Sunday Telegraph that "the more the Irish make a big
deal about renegotiation in public, the more attitudes will
harden."
"It is not even take it or leave it. It's done. Ireland's only
role in this now is to implement the programme agreed
with the EU, IMF and European Central Bank. Irish
voters are not a party in this process, whatever they
have been told," said the diplomat.”
(Our emphasis)
Hello? Irish voters are "not a party in this process"? Irish voters – i.e. the tax cows that
have been condemned to bail out their failed banks so that the highly leveraged
German banking system can avoid a debt restructuring broadside – may well go from
"revolution lite" as the WSJ calls the election outcome (since essentially, one
conservative party was exchanged for another), to a "real revolution." As an aside, while
the WSJ asserts that 'Ireland needs Merkel," we believe it is exactly the other way
around (see further below as to why). Our understanding of 'democracy' is that voters
are the ultimate arbiters of such things. There is no agreement that can not be amended
or broken if voters feel they have been sold out by the government that signed it. As the
Telegraph notes further:
"Dessie Shiels, an independent candidate in Donegal, said:

"People have not been given the basic right of deciding
whether or not they should have their taxes increased in
order to repay bondholders who have lent to the banks."
David McWilliams, an economist and former official at the

Ireland's Central Bank, has led calls for a popular vote under
Article 27 of the Irish constitution, which requires on a
matter of "such national importance that the will of the
people ought to be ascertained."
"We have to re-negotiate everything," he said.

"Obviously, the first way to do this is to make them
aware that if they force us to pay everything, we will
default and they will get nothing. So they had better get
a little bit of something, than all of nothing. To make this
financial pill easier to swallow, we must take the
initiative politically. We can do this via a referendum.
"If the Irish people hold a referendum on the bank debts

now, we can go to the EU with a mandate from the
people which says No. This will allow our politicians to
play hard-ball, because to do otherwise would be an
anti-democratic endgame."
Declan Ganley, the Irish businessman who led the 2008 No

vote to the Lisbon Treaty, said Ireland must "have the balls"
to threaten debt default and withdrawal from the single
currency.
"We have a hostage, it is called the euro," he said. "The
euro is insolvent. The only question is whether Ireland
should be sacrificed to keep the Ponzi scheme going.
We have to have a Plan B to the misnamed bailout,
which is to go back to the Irish Punt."
(our emphasis)
Got it in one, Mr, Ganley. Ireland is the party that has the leverage in this situation, not
the EU. The decisive point is this: The euro is a kind of roach motel – it's easy (too
easy) to get in, but it is very hard to get out.
Why is it so hard to get out? It isn't, as the outgoing Irish government asserted, the fact
that government would find it hard to borrow money in the markets after a bank debt
restructuring, or even after a restructuring of the government's own debt. Greece, which
has been bankrupt for half of the past 180 years, is proof positive that it is fairly easy to
find new suckers for government debt after a while.
No, at the root of the roach motel problem are the banks themselves. If the population
suspects that an abandonment of the euro is imminent, worries that the national
currency likely to succeed the euro will be devalued would provoke a flight from the
banks – depositors would shift their deposits to other banks somewhere else in the euro
area. Both Greece and Ireland have in fact been plagued by such a flight of depositors
already, to varying extent. In fact, the biggest and quite obviously bankrupt Irish banks
have bled deposits at an enormous rate lately. With the banks completely zombified,
worries about a flight of depositors should be much reduced – since they have already
largely fled.
The banking system is however also a big worry for the rest of the EU. Why was the
Irish government forced to accept a bailout? What was so urgent? Why was it so
important to especially avoid a restructuring of the senior debt of Ireland's banks? The
answer is that an Irish debt restructuring imposing a big haircut on bondholders would
hit banks elsewhere in the euro area (including the ECB, as it were). The way we see
this, Irish voters will eventually prove the arrogant unnamed European diplomat from a
big country wrong. They will eventually be a party to the proceedings. Negotiating a
lower interest rate on borrowings from the EFSF, the currently enunciated goal of the
new Irish government won't be enough. It won't do the trick because the burden will still
be too large.
We would note here, as we have repeatedly done before, that it does no-one any good
to pretend that losses don't exist or that the giant fiat money Ponzi scheme made up of
unpayable government debt and de facto insolvent fractionally reserved banks can be
forever kept going by heaping new debts atop the old ones. If we want genuine,
sustainable economic growth to resume, the only way to achieve that is to bite the
bullet. Acknowledge the losses and let them fall upon those who have invested
unwisely. This is not merely a question of morality, as prominent Keynesians like Paul
Krugman keep saying. It is a question that concerns the system of free market
capitalism itself. Capitalism is not supposed to privatize profits and socialize losses.
This is a perversion of the free market system that will ultimately serve to destroy it.
In addition, as the EU lurches toward the 'big accord' planned for late March – a.k.a. the
Grand Bargain (Portugal may well fall into crisis before that date, as its bond yields
remain stuck above the crucial 7% level and large debt rollovers are awaiting it in
March) , there are evidently plans afoot to make other European nations more like
Germany. Unfortunately this is not merely about fiscal rectitude as such. It is also about
the desire of the German political class to impose Germany's high taxes on everyone.
Ireland would do well to think twice about agreeing to such stipulations.
[chart]
(Click to enlarge)
Portugal's 10 year bond yield sits at 7.45%. Greece and Ireland both became EFSF
wards when their yields crossed the 7% mark. And yes, this is a bullish (bearish for
Portuguese debt) chart.
The Markets
The Stock Market
In the wake of the big decline in Saudi Arabia's stock market, other stock markets also
suffered a bad hair day. It would be easy to pin the blame for the stock market's recent
decline on the problems in the Middle East, but bulls should perhaps be more
concerned about a number of other facts. For one thing, there is the subtle internal
technical deterioration as evidenced by many 'momo' stocks coming under pressure of
late, i.e., the so-called "Teflon stocks" all of a sudden look somewhat less teflonesque.
A similar point is made in a recent article by Michael Kahn at Barron's about the Dow
Jones Industrial Average. As Kahn remarks:
"Despite its limited representation in a market of thousands

of stocks, the Dow Jones Industrial Average nonetheless is
an important barometer. Given the sheer dollar value of its
30 component issues, any cracks in its armor should not be
ignored.
So when fully one fifth of Dow stocks sport technical failure

we should take notice. Failure, in the lexicon of charting, is
often used to describe a stock falling as it hits a key level
such as resistance or the top of a pattern.
When a stock breaks out to the upside from resistance or a

chart pattern it is usually a bullish sign. Demand overcomes
supply and prices move higher – most of the time. However,
failure to hold on to that breakout is the unusual case and
that makes it a true newsworthy event for investors."
Kahn notes that the bulk of the DJIA stocks remains in solid uptrends, but of course
when the market gets into trouble, the first signs of such are always subtle.
[chart]
(Click to enlarge)
What is notable to us about the recent decline is that the preceding rally as well as the
recent rebound all happened on very weak volume, whereas volume tends to spike
when the market moves lower. This is a negative sign too.
What else should stock market bulls worry about aside from the loss of leadership and
subtle signs of technical deterioration? How about "Hedge funds borrow the most
since 2007 to purchase U.S. stocks?"
"Hedge funds increased their net leverage in January to

the highest level since October 2007, as they took
advantage of record-low borrowing costs to bet that the
U.S. equity rally will continue.
Debt at margin accounts at the New York Stock Exchange

minus cash and unused credit from margin accounts climbed
to $46 billion, according to data released by NYSE
yesterday. Hedge funds had $290 billion of debt from margin
accounts in December, the largest sum since Lehman
Brothers Holdings Inc. collapsed in September 2008."
(Our emphasis)
Needless to say, October of 2007 was not exactly a propitious time to buy lots of stocks
on margin. Perhaps this time will be different, but we kind of doubt it (although in some
respects the 2007 high was even more beset by extremes – but then, it was a much
higher high).
What else is there to worry about? How about those capitulating bears: "Capitulating
Bears Push Short Sales to Lowest in Three Years."
"The biggest Standard & Poor’s 500 Index rally in more

than five decades is forcing stock market bears to
abandon short sales, cutting them to the lowest level
since 2007 last month.
Shares borrowed and sold to profit from declines dropped

four straight months and represented 3.3 percent of all stock
in January, according to data compiled by NYSE Euronext.
Pessimists are giving up after missing the 95 percent rally in
the S&P 500 spurred by the fastest earnings growth since
1994. The monthly decrease comes as individuals added
$17.6 billion to U.S. mutual funds this year after
withdrawing money since April."
(Our emphasis)
There it is mentioned again, that fateful year 2007. Capitulating bears weren't a good
sign then, and they are unlikely to be a good sign now. The lower the short interest
ratio, the less support from short covering there will be once the market heads down,
but to us it is more important what this datum says about sentiment.
[chart]
(Click to enlarge)
The chart of the high beta DJ Transportation average is intriguing – its rebound failed at
the 50 day moving average. This average generally tends to lag in moves up (i.e. it
tends to be one of the last indexes to top out) and lead in declines.
[chart]
(Click to enlarge)
A recent chart of mutual fund cash levels from Jason Goepfert's sentimentrader.com
shows that mutual fund managers are also all in – the current reading is the second
lowest in all of history , a mere 10 basis points above the all time low (the absolute low
was seen in 2010). This indicator tends to have medium to long term significance. We
see it largely as an expression of fund manager sentiment.
Solely from a chart perspective it is too early to say whether the recent pullback will just
be a short term hiccup or the beginning of a more substantial correction. Many of the
aforementioned momentum stocks have weakened, but they have not yet broken any
important supports. However, the fact that the market has for a change not rallied on the
first of the month (the bulk of the advance from the 2009 low was accomplished by large
first-of-the-month rallies) clearly constitutes a change in character.
Apart from that, the fact remains that risk is extremely high. Should the market rebound
and streak to new highs for the move, said risk won't diminish, but will become even
greater.
Gold and Oil
Not too surprisingly, both oil and gold have continued their rallies. Gold is on the verge
of a decisive breakout, while the oil market appears close to negating a recent reversal
candle (as we noted at the time, such reversals require follow-through selling to be
confirmed as such).
[chart]
(Click to enlarge)
It appears that oil wants to go even higher. Since the reversal candle that was put in
place four trading days ago has not led to follow-through selling and the market is
already bouncing higher again, no reversal has been confirmed as of yet. Of course this
is now a market harboring a large political risk premium, which makes it extra-risky (for
both bulls and bears). Nothing's wrong with this chart though.
We are not certain how much of a political risk premium there is now in gold, but gold
seemed to us already set to make new highs before the news about the unrest in Arab
countries took center stage (we have frequently remarked on the subdued bullish
sentiment after the small correction in January).
One must not forget, when central bankers stubbornly defend ultra-easy monetary
policies as Mervyn King and Ben Bernanke both keep doing, then there is little reason
not to want to own gold (we will soon have more to say about the recent statements by
these two gentlemen – neither of them managed to disappoint our expectations, which
are even lower than their interest rates). Also, with the bulk of gold's fundamental price
drivers in a bullish configuration, the backdrop remains conducive to higher gold prices
regardless of the geopolitical noise (it is to our mind different in the case of crude oil).
[chart]
(Click to enlarge)
Both gold and silver (solid line) streak higher. Gold's close actually constitutes a
breakout, but it is not a decisive breakout yet. As previously noted, gold doesn't do triple
tops, so a decisive breakout seems highly likely.
The U.S. Dollar
The dollar rates a mention for its failure to profit from safe haven buying in view of the
news from the Arab world. It may be that talk of the allegedly undiminished likelihood of
QE3 isn't helping, especially as ECB officials have lately adopted a fairly hawkish tone.
Of course, money supply growth in the euro area has in recent months been far lower
than money supply growth in the U.S., so there is a good reason for the euro to show
some relative strength based on that, but the problem of the unresolved debt crisis
remains – which argues strongly against the euro going forward. Be that as it may, the
dollar hasn't been going anywhere lately. We would however not be inclined to get too
bearish on the U.S. dollar here, in spite of its failure to attract safe haven buying. The
recent decline has been grudging, which is often the precursor to a short term trend
change.
[chart]
(Click to enlarge)
The U.S. dollar hasn't been helped by turmoil in the Middle East – which is a bit
surprising.
Finally, before it is out of date, we want to point readers to a recent interview by the
father of securitization, Lew Ranieri, on the state of the U.S. housing market. He echoes
the concerns that Ramsey Su has enunciated in these pages. The U.S. housing market
remains quite sick, in spite of the wagon-loads of money Ben Bernanke's Fed has
printed. An old adage is confirmed by this fact: the central bank can print money, and/or
encourage the commercial banks to increase the credit and money supply, but it has no
control over where this money ultimately goes.’
Inflation Is Here – Just Open Up Your Eyes And Look At These 5 Financial Charts!
‘The Economic Collapse March 2, 2011 Despite what Federal Reserve Chairman
Ben Bernanke says, rampant inflation is officially here. The federal government
is constantly monkeying with the numbers to keep the “official” rate of inflation
below 2 percent, but it is becoming very difficult to deny that the cost of almost
everything is really going up these days. The American people are not stupid.
They notice the difference when they go to the grocery store or stop at the gas
station. The dollar is losing value rapidly now. The price of gold set another new
all-time record today and is currently hovering just above $1430 an ounce. The
price of West Texas crude has moved above 100 dollars several times recently
and the price of Brent crude is currently above 116 dollars. These higher oil
prices are really starting to be felt in the United States. The average price for a
gallon of gasoline in the United States has now reached $3.38. There are some
gas stations in the U.S. where the price of a gallon of gas is already over 4
dollars. But it is not just the American people that are feeling the pain. The
global price of food recently hit a new record high and almost every major
agricultural commodity has absolutely skyrocketed in price over the past 12
months. Meanwhile, Ben Bernanke just told the Senate Banking Committee that
he really isn’t concerned about inflation at all.
When it comes to inflation, the key is not to look at the official U.S. government
numbers (they are highly manipulated) or how the U.S. dollar is performing
against other major currencies (because they are all being devalued as well).
Instead, you can get a truer sense of what is really happening to inflation by
looking at what the U.S. dollar is doing against precious metals, commodities and
other hard assets.
So are we experiencing rampant inflation right now? Well, just open up your eyes
and look at these 5 charts….
1 – The price of oil is racing back up to record levels. The chart below from the
Federal Reserve is a couple weeks out of date. As noted above, the current price
of West Texas crude is about $100 a barrel….[chart]
2 – The price of a gallon of gasoline in the United States seems destined to hit a
brand new all-time record at some point this year. Was it really just a few short
years ago when the average price of gas in this country was about a dollar a
gallon?…. [chart]
3 – The value of most precious metals is very consistent over time. So when you
see precious metals go up dramatically in price, it means that the dollar is being
devalued. The price of gold just set another new all-time high and it seems
destined to keep going even higher….[chart]
4 – The chart below from the Federal Reserve is a measure of the price of all
commodities. These price increases are inevitably going to be passed along to
consumers in the United States….[chart]
5 – After a couple of years of stable food price, the price of food is starting to take
off yet again….[chart]
In fact, many analysts are warning that we could experience a major food crisis
over the next couple of years. The global demand for food continues to grow at a
very brisk pace, but all of the crazy weather we have been having around the
world has caused some very bad harvests.’
Oil surges after Libya airstrike near oil terminal Reuters | Fresh airstrikes hit
Brega, about 1.2 miles from a Libyan oil terminal.
] Fighting near oil ports in Libya fuels market anxiety. Pump prices have reached
$3.39 a gallon.
Fed report shows gains in U.S. economy, moderate growth (Washington Post)
[ Come on! What do you expect them to say … they lie about everything …
and at what cost in insurmountable debt, debt service and defacto
bankruptcy of the nation. En route to losing near 8 million jobs, before and
during the melt-down, if you recall (I do, and reported here on my site) jersey
(that says it all) based adp was pulling job numbers out of their a***s,
‘surprising’ to the upside as now, although I would concede some contract
work with money defacto bankrupt america doesn’t have may have provided
a lesser number. How can you believe anything they say? Drudgereport:
Announced Job Cuts 'Rose 20% From Year Ago'... more of things to come
Idaho county files for bankruptcy... ] Job market shows progress, as do
sectors such as retail and tourism.
Metal News for the Day Grant ‘…With the Fed now buying 70% of Treasury's
debt issuance, one has to wonder who will step in to fill the void when the
Fed finally does implement their so-called "exit strategy." PIMCO's Bill
Gross poses the question plain and simple in his most recent Investment
Outlook: Who will buy Treasuries when the Fed doesn’t? Certainly nobody is
going to completely fill the massive void in the debt market left by a
retreating Fed at the current yields. Yields will have to rise once the Fed's
faux demand is gone and yields start to once again accurately reflect risk
and that will threaten the recovery. So you see the dilemma. Our own
Jonathan Kosares discussed this very topic in the lead article of our
December Newsletter. People began to speculate about QE3 shortly after
QE2 was announced and such market chatter is ongoing and even
intensifying. In a recent Barron's interview, MacroMavens' Stephanie
Pomboy says she doesn't believe the recovery is sustainable at all. Her
recommendation? Buy Treasuries...clearly she thinks the Fed is going to
remain a buyer and can be front-run...oh, and buy gold…’


Locked in standoff, Gaddafi foes debate foreign airstrikes Opposition leaders

consider requesting foreign intervention (Washington Post) [ Six NATO troops
killed in Afghanistan (Washington Post) [ Is there something wrong with the
following picture? … am I missing something? … Gates's warning: Avoid land
war in Asia, Middle East, and Africa Christian Science Monitor - In a speech to
cadets at the United States Military Academy at West Point, Gates's message was
clear: The US military services, as well as the elected and appointed civilians who
send them to war, need better ways of foreseeing and preparing for ... Gates
Tells US Army to Take New Approach Voice of America Warning Against Wars
Like Iraq and Afghanistan New York Times ( Better said, than unsaid; but,
methinks a bit late for that in light of pervasively corrupt, defacto bankrupt
america’s consummate decline and fall! If only they had listened and not shot at
the messenger … things could have been different! )
DÉJÀ VU ALL OVER AGAIN? WHERE’S YOGI WHEN YOU NEED HIM TO EXPLAIN
THIS INSANITY:
Chavez: U.S. distorting situation in Libya ‘to justify an invasion’ CNN |
Venezuelan President Hugo Chavez claims U.S. criticism of Libyan leader
Moammar Gadhafi has a clear aim: military invasion.
US tightens military grip on Gaddafi The Guardian | The west is edging towards a
possible military confrontation with Muammar Gaddafi’s regime.
Obama Encircles US War Machine Around Libya Paul Joseph Watson |

Administration readies to exploit humanitarian crisis to control Africa’s largest oil
producer.
Most Americans Strongly Oppose U.S. Military Action in Libya According to

Rasmussen, a large majority of Americans agree with the common sense of
George Washington. During his farewell address, the first president of the United
States said the nation should beware of foreign entanglements. ] Issue takes on
increasing urgency amid realization that rebels cannot continue to match the
weaponry and firepower of forces loyal to Gaddafi.
[ (2-26-11 et seq.) Let me state for the record here that my computer has been
under constant viral, hack attack, paralleling prior such foolish, paranoid actions
and let me reiterate: They will be sorry and I won’t forget it! ]
Money Illusion: The Nominal and Real Dow Short ‘An email I received earlier
today commented on the difference between nominal and real (inflation-adjusted)
charts of market data. The overlay below of the Nominal and Real (inflation-
adjusted) Dow illustrates the concept of "money illusion," the tendency of people
to think of currency in nominal, rather than real, terms.
Below the two Dow series is the Consumer Price Index (CPI) from 1913 and with
estimates for the earlier years. The CPI is the inflation (deflation) multiplier that
accounts for the difference between the two views of the Dow.
[Click all to enlarge]

[chart]
One of the most conspicuous differences between the nominal and real series is
apparent during secular bear markets, such as the period from the mid-1960s to
1982. In the nominal chart, this period looks like a choppy sideways pattern. But
when we adjust for the high inflation of the 1970s and early 1980s, the sideways
chop becomes the cascading downward direction of the real value of the market
price. The 1982 dollar had shrunk in purchasing power to about 33 cents in
comparison to its 1965 counterpart. Inflation had devoured two thirds of its value.
In the chart above, I adjusted the real Dow price to the dollar value of May 1896 to
highlight the money illusion over the entire time frame. More commonly, my
inflation-adjusted charts are priced at the present value of the currency, as
illustrated in the real series below. This has the effect of raising the numbers for
the earlier periods to adjust for the effect of the dominant pattern of inflation with
brief but vicious periods of deflation, especially in the earlier decades.
[chart]
Bernanke Cautious on Economic Growth as Oil Prices Rise [ In pervasively

corrupt, defacto bankrupt america it’s come to be known all too familiarly as
‘defending the indefensible’. ] New York Times | Fed chief again defended the
Fed’s large and unprecedented stimulus program.
Pentagon Tries to Blame Financial Crisis on Foreign Financial Terrorists [ You

just can’t believe the magnitude of the b*** s*** they try to foist off …
financial terrorists who are u.s. citizens and are collectively called wall
street; oh, right, they fly a big american flag outside the exchange which
garners them carte blanche to…rape, pillage, and plunder with impunity …
even as the pentagon’s become singularly talented at raping, pillaging, and
plundering … the 360 tons of $100 bills gone missing in Iraq is a small
example of their talent, and a general previously attested to the reality that
on any given day there’s 2-3 billion floatin’ around the pentagon. Pervasively
corrupt, defacto bankrupt, war criminal america is pathetic! ] The Pentagon
is paying contractors to claim that it was foreign financial terrorists –
instead of fraud by American financial executives – which caused the 2008
financial crisis.
Libya’s Bankers Exposed: Goldman, JP Morgan And Citi Ten days ago, when we
first looked at the Libyan investment authority (its sovereign wealth fund),
we asked “Which US Banks Are Managing Billions For The $32 Billion
Libyan Sovereign Wealth Fund?”
BOE’s Mervyn King “Surprised Anger Directed At Bankers Is Not Greater” When a
nation’s top central banker says that even he is surprised the middle class is
not far angrier at the bankers, you know the lithium consumption is
surpassing Surgeon General RDA levels.
Oil could bring US down Ben Bernanke testified before the Senate Banking
Committee and warned that a rise in oil prices as a result of the conflicts in
the Middle East could threaten US growth and spark dangerous price rises.
Author and researcher Adrian Salbuchi says while rising oil prices seem to
go against US interests there has been a process of weakening the US
because of other rising super powers anyway.
Inflation Is Here – Just Open Up Your Eyes And Look At These 5 Financial Charts!
Despite what Federal Reserve Chairman Ben Bernanke says, rampant
inflation is officially here. The federal government is constantly monkeying
with the numbers to keep the “official” rate of inflation below 2 percent, but
it is becoming very difficult to deny that the cost of almost everything is
really going up these days.
tuned...’
National / World
U.S. and Britain Prepare to Impose No-fly Over Libya Kurt Nimmo | The bankers
are horrified by Libya’s 2009 decision to implement Islamic banking.
Gaddafi claims: ‘West only wants our oil’ As Libya teeters on the brink of full-
scale civil war Colonel Gaddafi today said there was a conspiracy to get of
Libyan oil as he again pledged to fight to the last.
Oil surges after Libya airstrike near oil terminal Oil prices jumped to near 2-1/2
year highs on Wednesday after an airstrike near Libya’s oil infrastructure
kept the market braced for a prolonged disruption from the OPEC nation and
worried unrest might spread to other regional producers.
TSA Criminality Epidemic: “Behavioral Detection” Officer Faces Charges Of

Helping Drug Dealers Through Security Yet another TSA officer has been
arrested on suspicion of abusing her position and engaging in illegal
activity, adding to a long history of cases indicating that TSA workers are
prone to criminal behavior.
Barbour: Obama’s policy ‘is to drive up energy prices’ With price of gasoline
rising for the eighth consecutive day, Mississippi Gov. Haley Barbour
accused the Obama administration of hiking energy costs in an effort to
promote alternative fuels.
Russian Military Claims Libya Air Strikes Did Not Happen The Russian military
claims that the supposed air strikes launched by Libyan leader Muammar
Gaddafi against protesters last week did not happen, suggesting that the key
event seized upon by the global media as a justification for a “humanitarian”
military intervention was a contrived hoax.
Rolling Stone On Alex Jones: “Most Paranoid Man In America” Paul Joseph
Watson | Profile is a generally good insight into Alex’s personal character
and how he sees his own role in standing up against tyranny.
Docs Reveal TSA Plan To Body-Scan Pedestrians, Train Passengers Newly

uncovered documents show that as early as 2006, the Department of
Homeland Security has been planning pilot programs to deploy mobile
scanning units that can be set up at public events and in train stations,
along with mobile x-ray vans capable of scanning pedestrians on city
streets.
Oil surges after Libya airstrike near oil terminal Oil prices jumped to near 2-1/2
year highs on Wednesday after an airstrike near Libya’s oil infrastructure
kept the market braced for a prolonged disruption from the OPEC nation and
worried unrest might spread to other regional producers.
TSA Criminality Epidemic: “Behavioral Detection” Officer Faces Charges Of

Helping Drug Dealers Through Security Yet another TSA officer has been
arrested on suspicion of abusing her position and engaging in illegal
activity, adding to a long history of cases indicating that TSA workers are
prone to criminal behavior.
The Perfidy of Government: Evidence v. Denial Paul Craig Roberts | America is

dissolving.
New Hampshire Moves to Criminalize TSA Grope-down Procedures Kurt Nimmo |

Lawmakers argue TSA goons should be placed on sex offender registry.
World cheers as the CIA plunges Libya into chaos David Rothscum | Gaddafi is
the main threat to US hegemony in Africa.
Blair cronies supported Gaddafi for his millions Mail Online | ‘Useful idiots’ was
how mass murderer Stalin dubbed left-wing academics who enthusiastically
endorsed Communism.
Russia Warns on Libyan Intervention Mail Online | Russia’s top diplomat has
today dismissed plans to create a no-fly zone over Libya.
Farrakhan: Jews Are Pushing the US Into War Nation of Islam leader Louis
Farrakhan said Jews and Zionists are “trying to push the US into war” and
are a cover for Satan, at the group’s annual meeting near Chicago on
Tuesday.
More Than 140,000 People Flee Libya The United Nations refugee agency says
over the past 10 days, more than 140,000 people have fled to Egypt and
Tunisia from Libya. The UNHCR says tens of thousands of people are stuck
at the borders and in urgent need of help.
“The Financial Industry Has Become So Politically Powerful That It Is Able To

Inhibit the Normal Process of Justice And Law Enforcement” The economy
cannot stabilize unless fraud is prosecuted. But the folks in D.C. seem
determined to turn a blind eye to Wall Street shenanigans, and is now
moving to defund the enforcement agencies like the SEC and CFTC.
rich…’

[45mb ]
Wobama says daffy gaddafi’s time is up, got to go. The same can be said of wobama
et als and his fraudulently failed presidency. Sheen On Obama: “A
Coward In a Cheap Suit” [ I think Sheen to be too gentle in his criticism
of wobama (Some might reflexively, defensively allege drugs (prescription
or otherwise) or any number of the varied personality disorders so
prevalent in america … ‘fuzzy, California laid back thinking’,
‘whatever’… Who knows? ) But, that said, wobama’s far worse than just a
‘coward in a cheap suit’. Indeed, Wobama’s a total fraud having been
elected under false pretenses; viz., his total, unequivocal, and unfulfilled
b*** s*** (those campaign promises) ! Moreover, there has been some
persuasive documentation questioning wobama’s citizenship / birthplace
placing his eligibility to even hold the office of president in question.
Drudgereport: UPDATE: Huckabee claims Obama grew up in Kenya...
The Obama Nation, by Jerome Corsi Rezko was corrupt, and supported
Obama in many campaigns as well as in Obama buying his home -- and
therefore, according to Corsi, Obama is corrupt
of Congress Paul Craig Roberts | Congress could try to protect its loss of the
power of the purse by impeaching Obama. Drudgereport: WOBAMA
'IMPEACHMENT' WARNING... ...to announce exploratory committee
'in 10 days' Globalist Shill Barack Obama Asks Business Leaders For
Job Creation Ideas Even As He Ships More Of Our Jobs Overseas As Part
Of The New One World Economy The other day, Barack Obama
summoned a group of business and labor leaders to the White House and
“challenged” them to come up with some great ideas for creating more
jobs inside the United States.
Public confidence in Obama reaches new low (Washington Post). Six in 10
Americans lack faith in Obama and hold lower esteem for members of
Congress, according to the latest Washington Post-ABC News poll. Such
stats as this tend to typify scenarios as this where you break every
significant campaign promise that got you elected, from endless war (ie.,
Afghanistan, etc.) to not prosecuting the frauds on wall street, and the
growing realization of ‘typical’: Public confidence in Obama reaches new low
(Washington Post) Six in 10 Americans lack faith in Obama and hold lower
esteem for members of Congress, according to the latest Washington Post-
ABC News poll. Such stats as this tend to typify scenarios as this where you
break every significant campaign promise that got you elected, from
endless war (ie., Afghanistan, etc.) to not prosecuting the frauds on wall
street, and the growing realization of ‘typical’:

substance, make him as big a joker. This well researched / produced video
tells the real story : http://www.youtube.com/watch?

which in one form or another are rampant . I don’t know about Thomas, but I do
know about alito and ‘jersey … :

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)

recommend!
( 146mb – approx. 1 hr. 17 min. )

Come on … don’t make me laugh! … Merk ‘…While we believe food inflation will
be with us for quite some time and may contribute to an unstable world possibly
for years to come, the Federal Reserve appears to be firmly in the camp of heavily
discounting food inflation. The European Central Bank (ECB), in contrast, has
historically taken commodity inflation more seriously than the Fed – ECB
President Trichet talks about his concern over "second round effects," i.e.,
on its expansionary path. After all, the banks continue to sit on their money and
as such, the economy is certainly not in overdrive. With the exception of social
instability spreading globally, the Fed may be very much on course:
• Bernanke may want a weaker dollar. Unlike his predecessor, Bernanke

embraces the U.S. dollar as a monetary policy tool to boost economic
growth.
• Bernanke wants higher inflation. Having explicitly called for higher inflation
since last August, he has since praised the progress the market has made
in pricing higher than inflation expectations. The challenge with raising
inflation expectations is not only that it may be difficult to lower those
expectations later but that it is difficult to control where that inflation
appears. Bernanke, in our assessment, needs to get home price to rise and
is willing to put up with rising prices in other areas.
• We often focus on housing as a reason the Fed wants to boost growth, but
we can also focus on WalMart (WMT): in the 13 weeks that ended 1/29/2010,
WalMart’s sales declined 1.2%. Keep in mind that unlike government
statistics, WalMart’s sales are not inflation adjusted. Also keep in mind that
WalMart has been expanding its produce section in recent years; the
section very much exposed to food inflation. As a result, on a real basis,
sales have had rather substantial declines. Given that WalMart’s sales
comprise more than 10% of total U.S. retail sales, we don’t believe there is
such a thing as "company specific" problems; WalMart’s problems are
those of the U.S. economy.
In contrast, the rest of the world is taking steps to stem inflationary pressures.
Russia is the latest country to raise interest rates, following countries ranging
from Sweden to Norway, Canada to Australia and Korea to China. In the
Eurozone, the pairing down of some emergency facilities (leading to a draining of
liquidity; a form of monetary tightening) and recent hawkish talk suggest interest
rates may be raised later this year.
This discussion should clarify that it is perfectly possible for the world to be in
turmoil without the U.S. dollar being a beneficiary. The focus of this analysis was
the perceived status of the U.S. dollar as a safe haven, as well as implications of
food inflation; a small, but important sliver affecting the U.S. dollar.’
rich…’

[45mb ]
Locked in standoff, Gaddafi foes debate foreign airstrikes Opposition leaders

consider requesting foreign intervention (Washington Post) [ Six NATO troops
Like Iraq and Afghanistan New York Times ( Better said, than unsaid; but,
the messenger … things could have been different! )
DÉJÀ VU ALL OVER AGAIN? WHERE’S YOGI WHEN YOU NEED HIM TO EXPLAIN
THIS INSANITY:
Chavez: U.S. distorting situation in Libya ‘to justify an invasion’ CNN |
Venezuelan President Hugo Chavez claims U.S. criticism of Libyan leader
Moammar Gadhafi has a clear aim: military invasion.
US tightens military grip on Gaddafi The Guardian | The west is edging towards a
possible military confrontation with Muammar Gaddafi’s regime.
Obama Encircles US War Machine Around Libya Paul Joseph Watson |
Administration readies to exploit humanitarian crisis to control Africa’s largest oil
producer.
Most Americans Strongly Oppose U.S. Military Action in Libya According to

Rasmussen, a large majority of Americans agree with the common sense of
George Washington. During his farewell address, the first president of the United
States said the nation should beware of foreign entanglements. ] Issue takes on
increasing urgency amid realization that rebels cannot continue to match the
weaponry and firepower of forces loyal to Gaddafi.
[ (2-26-11) Let me state for the record here that my computer has been under
constant viral, hack attack, paralleling prior such foolish, paranoid actions and let
me reiterate: They will be sorry and I won’t forget it! ]
March 2011 Economic Forecast: GDP Is Disconnected From the Real Economy -
Hansen ‘Last week, the second estimate of 4Q2010 Gross Domestic Product
(GDP) was issued. It showed a rather paltry 2.8% economic growth.
The way GDP is designed – it is not a true measure of an advanced economy. It is

designed to measure economic growth of an emerging economy. An advanced
economy’s growth cannot be measured necessarily by measurements of brick
and mortar or investment.
This kind of approach also leaves open too many questions relative to population
growth and methodology in determining change in dollar value (analysis here).
The question really is a definition of an economy. My colleague Derryl put it

succinctly in "Profits for a Few Can Not Replace Real Jobs:"
"The people" need to work to earn a living. That’s called
"having an economy."
An economy is the sum of trading work and goods between all the people.
Modern economies use money for this trade. GDP measures the "productive" use
of money. GDP measures less than half of all money flows. Econintersect
believes GDP does not properly measure "productive" use of money.
Economists are saying the economy has fully recovered from the Great
Recession – yet Main Street remains in a depression. The reason comes from
GDP itself. Simply isolating the goods and services Joe Sixpack from GDP, the
economy is no where near recovered.
[chart]
(Click to enlarge)
You see, GDP takes credit for exports and debits imports. Yet Joe Sixpack is
trading what he earns for products and services. To see the economy of Joe
Sixpack, you have to look at the sum of what he is trading.
[chart]
(Click to enlarge)
Go back and review the economic forecasts Econintersect made for October,
November and December. We predicted the real economy – the economy of Joe
Sixpack was stalling.
Econintersect uses a forward looking economic indicator which uses non-
monetary pulse points that have a general – not specific correlation with Gross
Domestic Product. These pulse points are geared to anticipate consumer and
industrial income / spending for 30 to 60 days after the indicator is issued.
Econintersect counts units of things other then money – and is specifically
designed to measure Main Street and Joe Sixpack’s world.
March 2011 Economic Forecast
The "real" economy – the economy of Joe Sixpack continues to expand. The
strength of this growth is considered moderate with positive underlying trend
lines. Putting this into perspective – the economy is likely improving on a per
capita basis.
[chart]
(Click to enlarge)
There are "buts" to this forecast.
• In last month’s forecast, we warned of a black swan possibility of an

economic reversal due to the start of unrest in oil producing countries.
This is no longer a black swan – but a known event underway – and
seemingly now priced in to the economy.
• Econintersect is unable to forecast employment levels using this
methodology. There is little correlation between the Econintersect
Economic Index (EEI) and employment since the beginning of the Great
Recession.
The EEI has improved from +0.25 to +0.55.

[chart]
(Click to enlarge)
One major component of the EEI is transport related. Econintersect considers
transport (truck, rail and sea container) counts a primary economic pulse point –
and its trend represents underlying economic pressure.
This month, the transport portion of the EEI index continued its upward trend.
This portion of the index is quite noisy as it quantifies the month-over-month
(MoM) change (positive numbers indicate seasonally adjusted MoM growth,
negative numbers represent seasonally adjusted MoM contraction).
[chart]
To Econintersect, transports represent the pulse of the real economy – the
economy of Joe Sixpack. All of our man made surroundings, the clothes we wear
and the food we eat are moved several times by transport during their
processing/delivery cycles. A growing economy consumes more (and therefore
transports more), a contracting economy consumes less.
Last month, we mentioned in passing – that there was anecdotal evidence that
the transport sector of the index was weakening. Hard data over the last 30 days
has been entirely contradictory to this.
For a complete explanation of the EEI, please see the October 2010 forecast.
Disasters Rocking the U.S. Dollar? Merk ‘From earthquakes in New Zealand to
revolutions in the Middle East, natural and man-made disasters are rocking the
world. We are all too often made to believe that in times of crisis there’s a flight to
the U.S. dollar. However, the U.S. dollar has instead had a rocky ride of its own
thus allowing the crisis-ridden Eurozone to shine. What’s going on? Is there no
crisis, or has the U.S. dollar lost its appeal as a safe haven?
Over longer periods there is little correlation between the U.S. dollar and other
assets. In the past two years, however, a mentality has arisen that whenever there
is a crisis the U.S. dollar benefits; as the crisis abates money flows out of the U.S.
dollar and once again into currencies and markets overseas that may be deemed
riskier. That may well be a skewed pendulum, however, as the U.S. dollar may
have a more difficult time attracting money at each subsequent crisis. Firstly, the
U.S. is simply better at spending and printing money than the rest of the world;
causing the balance sheet of the U.S. to deteriorate at a faster pace than that of
the rest of the world. And secondly, policy makers around the world are
addressing whatever the cause of the crisis may have been i.e., the "trillion-
dollar" backstop provided in the Eurozone to support weaker countries. One can
argue how effective such measures are, but generally speaking, the region may
be safer than before measures were taken; not safe, but "safer," meaning less
money may flee back to the U.S. dollar the next time a crisis flares up.
But maybe there is no crisis? Saudi Arabia may make up for any shortfall of lost
Libyan oil production and Egypt and Tunisia don’t affect U.S. markets anyway.
The argument we heard in early phases of the sub-prime crisis was "it’s all
contained". Intelligent people in both Libya and abroad did not think the Egyptian
turmoil would swamp over to Libya. After all, the standard of living – and with it,
presumably social stability - in Libya is higher due to wealth created by oil. For
now, the extreme volatility in the oil markets suggests that market participants
beg to differ as to how all of this unfolds. If anything, that is a healthy process;
it’s when everyone agrees that bubbles are created.[picture]
To understand the dynamics unfolding we have to dig a little deeper into the "it’s
all contained" argument. People don’t like autocratic rule but we have argued that
people may put up with oppression as long as they can feed themselves.
Escalating food prices may be a key reason revolts and revolutions are
happening now. (See also our analysis of Politics of Inflation.) However, U.S.
policy makers generally disregard food inflation for a couple of reasons:
• The U.S. economy is not very dependent on food. Yes, people need to eat
but only a small portion of disposable income is spent on food in the U.S.
• Food inflation in the rest of the world is really the problem of the rest of the
world. Federal Reserve (Fed) Chairman Bernanke, when pressured on
whether U.S. monetary policy exports inflation to the rest of the world, has
argued that other countries have plenty of tools at their disposal to address
inflationary pressures there. That is correct but in the absence of foreign
policy makers heeding Bernanke’s advice, the world is less stable; $100 oil
is a reminder that global instability does come home to roost.
• Food inflation is temporary. There is a widely held belief that food inflation
is due to special factors such as a plethora of bad crops throughout the
world. However, the Financial Times writes: "The World faces a protracted
bout of extremely high food prices, the US government has warned,
overwhelming farmers’ ability to cool commodity markets by planting
millions of additional hectares with crops."
• Not only can farmers plant more, they can also farm more efficiently.
Developing countries, over time, may greatly enhance the productivity of
their farmland. That is correct, but let’s not forget that as the standard of
living is rising in the developing world, there’s a shift towards a more
protein based diet. A lot of corn will be needed to feed the cattle to produce
the meat to satisfy demand.
• Acknowledging these drivers, it’s still a question of whether we are merely
seeing a bout of inflation, i.e. a reset of the price level or an era of
continuously rising food prices. Even with little agreement on where we are
headed in the medium term, most would agree that there is no such thing
as continuity in agricultural commodity prices. As an example, Bloomberg
reports that wheat prices fell 8.6% from February 18 until February 25.
While we believe food inflation will be with us for quite some time and may
contribute to an unstable world possibly for years to come, the Federal Reserve
appears to be firmly in the camp of heavily discounting food inflation. The
European Central Bank (ECB), in contrast, has historically taken commodity
inflation more seriously than the Fed – ECB President Trichet talks about his
concern over "second round effects," i.e., commodity inflation stirring inflation
throughout the value chain.
on its expansionary path. After all, the banks continue to sit on their money and
as such, the economy is certainly not in overdrive. With the exception of social
instability spreading globally, the Fed may be very much on course:
• Bernanke may want a weaker dollar. Unlike his predecessor, Bernanke

embraces the U.S. dollar as a monetary policy tool to boost economic
growth.
• Bernanke wants higher inflation. Having explicitly called for higher inflation
since last August, he has since praised the progress the market has made
in pricing higher than inflation expectations. The challenge with raising
inflation expectations is not only that it may be difficult to lower those
expectations later but that it is difficult to control where that inflation
appears. Bernanke, in our assessment, needs to get home price to rise and
is willing to put up with rising prices in other areas.
• We often focus on housing as a reason the Fed wants to boost growth, but
we can also focus on WalMart (WMT): in the 13 weeks that ended 1/29/2010,
WalMart’s sales declined 1.2%. Keep in mind that unlike government
statistics, WalMart’s sales are not inflation adjusted. Also keep in mind that
WalMart has been expanding its produce section in recent years; the
section very much exposed to food inflation. As a result, on a real basis,
sales have had rather substantial declines. Given that WalMart’s sales
comprise more than 10% of total U.S. retail sales, we don’t believe there is
such a thing as "company specific" problems; WalMart’s problems are
those of the U.S. economy.
In contrast, the rest of the world is taking steps to stem inflationary pressures.
Russia is the latest country to raise interest rates, following countries ranging
from Sweden to Norway, Canada to Australia and Korea to China. In the
Eurozone, the pairing down of some emergency facilities (leading to a draining of
liquidity; a form of monetary tightening) and recent hawkish talk suggest interest
rates may be raised later this year.
This discussion should clarify that it is perfectly possible for the world to be in
turmoil without the U.S. dollar being a beneficiary. The focus of this analysis was
the perceived status of the U.S. dollar as a safe haven, as well as implications of
food inflation; a small, but important sliver affecting the U.S. dollar.’
Post Meltdown Economy Looks More Like a Pre Meltdown Economy Maierhofer
‘Based purely on the stock market, the economy should be rockin' and rollin' but
while the market's performance has been stellar, the economy is flat.
Will stocks catch up with the economy or the economy with stocks?
Just how strong is the market? The SPDR S&P MidCap 400 ETF (NYSEArca: MDY
- News) is trading at an all-time high, the Nasdaq-100 (Nasdaq: QQQQ - News) has
surpassed its 2007 watermark, the Russell 2000 (NYSEArca: IWM - News) is
closing in on its all-time high, the S&P 500 (SNP: ^GSPC) has doubled since
March 2009, and the Dow (DJI: ^DJI) is viewed as the ultra safe haven in a world
of turmoil.
How strong is the economy? Real estate (NYSEArca: IYR - News), the biggest
wealth builder/destroyer in the country is still weak. The Standard & Poor's Case-
Shiller Home Price Index has dropped to the lowest level in nearly a decade. As
the Home Price Index has fallen below March 2009 levels, residential REIT stocks
(NYSEArca: REZ - News) have nearly tripled since then.
Another huge contributor to a healthy economy - unemployment - shows signs of

improvements at a peripheral glance but continues to lag significantly if
examined beyond the rosy headline numbers. To wit, if it wasn't for the labor
force sliding to a near 30-year low, the headline unemployment number would be
around 12% while the real unemployment would be around 20%.
Based on a 11-line surface analysis, stocks and the economy are out of sync. To
see whether stocks will catch up with the economy or vice versa, we'll need to
slice beneath the service and examine the very foundation of our economy.
Multi-decade Economic Trend
Unnoticed by Wall Street, the economy has been shifting gears, and has gone
from acceleration mode to coasting mode. How so?
A few decades ago, sweat-trenched U.S. manufacturing facilities were the most
fertile, growth-producing environment on the planet. This growth was fueled by
'Made in America' products. The growth was organic and it was real.
When taking a closer look at the economy over the past 70 years, we see two
distinct growth periods. Phase 1 lasted from 1947 - 1966 and phase 2 stretched
from 1975 - 2000.
Throughout phase 1, GDP averaged 4.18% while unemployment was low. GDP
during phase 2 averaged 3.40% with unemployment inching up. [chart]
GE, a company that endured though both phases, provides important clues about
the difference between both phases. Up until the end of phase 1, GE was known
for manufacturing quality products like light bulbs, refrigerators, jet engines, and
aircraft super chargers. GE's slogan was 'We bring good things to life.'
In the second phase, GE ventured into television and high finance. GE Capital, GE
Commercial Finance, GE Money, GE Consumer Finance and NBC Universal
contributed an ever-growing slice of GE's profit pie.
GE's focus shifted from manufacturing to financial engineering. If GE didn't build

a product it would finance the consumer's purchase of a competitor's product. It
was just appropriate that GE's slogan was changed to 'Imagination at work.'
The 'New Normal' - New but not Normal
The concept of making money by using money, encouraged by the Fed's interest
rate policy, lacked substance and sustainability. The 2000 tech (NYSEArca: XLK -
News) crash was more pronounced than what we've seen from the decades
before. The real estate boom was as gigantic as its subsequent bust.
The post-2007 financial crisis further highlighted the dangers of an economy low
on manufacturing but rich on leverage, accounting tricks, and financial
engineering. No wonder the average GDP for the 2001 - 2010 period - dubbed the
lost decade - dropped to 1.71%.
But amnesia or selective memory loss, usually triggered by rising prices, is not
new to investors. The more stocks rally, the more excited investors become, the
more dangerous the stock market gets.
Building an Air Castle?
The post meltdown economy has become a launching pad for the new economy
and new key players. Facebook and Twitter are Wall Street's new darlings.
Investors can't wait to get their hands on the upcoming IPOs.
According to Wall Street valuations, Facebook is worth as much as Home Depot
or Boeing. Home Depot employs 306,000 workers, Boeing 154,000. Facebook
sends paychecks to about 1,000 lucky individuals.
A happy go lucky investor looks at the new economy and says 'Wow, that's just
marvelous.' A skeptical mind looks at it and wonders 'How long before that blows
up in my face?'
Simple Math
As the economy is weakening, the Fed's role in providing sufficient liquidity to

keep a faux system running is ever increasing. Stock market tops and bottoms
have become more extreme, and the boom-bust cycle is shorter than ever before.
An 80-year trend line that has contained the Dow Jones for much of the 20th
century provides an interesting technical reference to this discussion. On
February 18, the ETF Profit Strategy Newsletter highlighted this trend line, which
runs through Dow 12,400.
Interestingly that very day, the Dow rallied to 12,391 before reversing 300 points
lower. Perhaps the tug of war between the economy and stock market has
entered a pivotal juncture.
Bullish investors will quote the third presidential election year, a willing Federal
Reserve, positive momentum, and cash on the sidelines as reasons for higher
stock prices.
Bearish investors can point to extreme sentiment readings, bearish divergences,

valuations, and bad fundamentals as culprits for lower prices ahead.
Slice & Dice but Watch your Finger
However you slice and dice it, the market is treacherous and can make you rich
or strip you of your wealth faster than at any other time in history.
One way to limit risk and maximize opportunity is to pay attention to trend lines
such as the one mentioned above. The market draws trend lines and creates
important support and resistance levels. If the market speaks, it behooves us to
listen.
A break below support is as bearish as a thrust above resistance is bullish. Being

unaware of crucial support/resistance level is like driving down a busy road
without paying attention to red or green traffic lights.’
Stocks Close at Day's Lows - Midnight Trader ‘4:36 PM, Mar 1, 2011 --
• NYSE down 122.70 (-1.5%) to 8,315.85

• DJIA down 168.40 (-1.4%) to 12,058
• S&P 500 down 20.9 (-1.6%) to 1,306
• Nasdaq down 44.86 (-1.6%) to 2,737
Bernanke Cautious on Economic Growth as Oil Prices Rise New York Times | Fed
chief again defended the Fed’s large and unprecedented stimulus program.
Prepare for an Economic Meltdown Matt Towery | For a truly troublesome

economic cocktail, throw in the instability in the Arab world.
Bernanke warns on oil price ‘threat’ Federal Reserve chairman Ben Bernanke on
Tuesday warned a “sustained” rise in oil prices could threaten US growth
and spark dangerous price rises, as he eyed turmoil in Libya.
CNBC On The Case For $130 Silver Nothing new for regulars here. Yet the fact
that CNBC, following Cramer’s endorsement of gold, is now apparently
pushing silver on retail is very troubling.
China’s holdings of US debt larger than reported China’s holdings of US bonds

reached $1.16 trillion at the end of December, almost $270 billion more than
previously estimated, new data showed Monday.
Greenback Armageddon Ahead? Why the dollar is about to crash, with Damon
Vickers, Nine Points Capital Management founder, and “The Day After Dollar
Crash” author.
Government Promises to Cut Social Security It’s official, national austerity

measures are here.
Politicians Slash Budget of Watchdog Agencies … Guaranteeing that Financial

Fraud Won’t Be Investigated or Prosecuted As I noted last year, you can tell
how interested Congress and the White House are in uncovering the truth by
looking at how much money is actually budgeted for investigation.
Will banksters get away with it? Aljazeera | Why have the unions and leftist
groups been mostly silent on these issues?
The REAL Unemployment Rate Is 22% The Daily Bail | It remains above 22% with
the February update.
National / World
Gold Hits New High as Tension Mounts in Middle East Kurt Nimmo | Once again,
gold serves as a solid refuge for jittery investors.
Aussies Ready to Roll Out Deep Penetrating Radiation Scanners at Airports Steve
Watson | Trials begin for devices that can scan your insides, deep
penetrating radiation scans cause 15,000 deaths per year.
Documentary exposes fluoride truth: Industrial waste passed off as medicine

Mike Adams | Water fluoridation around the world is achieved through the
purchase of chemically contaminated toxic waste chemicals from China.
TSA Lies To Justify Illegal Train Station Grope-Down Paul Joseph Watson |
Passengers were forced to enter train station by TSA goons who swarmed
them on platform.
Will ‘Chindia’ Rule the World in 2050, or America After All? [ I include this only
because it’s by Evans-Pritchard in light of his prior forthrightness in reporting
what he saw (clinton years, financial crisis pre-blowout, etc.). But Citigroup and
HSBC? Hardly the pictures of Nostradamus gone corporate given their track
records. Even Evans-Pritchard is out of his league here since 2050 is so
optimistically close to the end (remember, decades at best), that such really
matters very little. Disclosure: I haven’t and don’t need to read the article. ]
Ambrose Evans-Pritchard | Citigroup and HSBC have come up with radically
different pictures of what the world will look like in 2050.
Gaddafi loyalists fail to retake territory in six-hour battle with rebels Libyan
soldiers and paramilitaries loyal to Moammar Gaddafi attempted Tuesday to
retake territory that has been seized by rebels, but neither side appeared to
gain ground, according to accounts of the fighting from residents and
officials with the opposition movement.
Report: US Special Forces Arrive In Libya US Special Forces have reportedly

landed in Libya to train anti-Gaddafi rebels as a western-backed coup d’état
in the oil-rich nation nears, with British and French “defense advisors” also
arriving to set up training bases in the rebel-controlled eastern region of the
country.

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)

recommend!
( 146mb – approx. 1 hr. 17 min. )
Ohio, Wisconsin shine spotlight on new union battle (Washington Post) [ The
importance of this article cannot be over-stated in at least its an attempt to
highlight, if not distinguish between the roles of unions in the private sector
versus the public sector, namely government. While in law school evenings,
and working at a law firm during the day, I invariably taught one or two
courses per semester (spring, fall, summer) at a local college in
predominantly finance, management, insurance, and real estate. I used the
Drucker text, case book, materials for management which enabled me to pay
close attention to his quite brilliant thoughts, positions as they continued to
evolve (as an undergrad we used Drucker, who also was consultant to many
major corporations). He was a defender of unions in the private sector, if
only to provide an all encompassing, cohesive, unified group with which
management could deal. He also talked about the need to apply
management principles to and manage non-profit organizations, institutions
as, ie., hospitals, schools, etc., and hence by inference, though he didn’t
seem to get to it, governments. They specifically needed to be managed for
performance, which of course, in his approach required substantial thought
in defining mission, goals, objectives, steps in achieving objectives, and
measuring achievement or not of objectives, etc.. Moreover, raises,
compensation, benefits, pensions were never to be automatic, but rather
based upon clearly defined performance, merit, as can be measured. The
problem in pervasively corrupt, defacto bankrupt america particulary is that
more, regardless of performance had, has become an oftimes integrally
political thing determinant of election results. Congress (as well as judiciary,
executive branch-excepting law enforcement) has been among the worst
offenders from not only the perspective of their own ever increasing pay /
benefit / compensation packages despite the nation’s sinking sensation, but
as well, their role in keeping in check the abuses, frauds, crimes in the
private sector (ie., wall street, ceo excessive comp., etc.) which duty they
have egregiously shirked. The bottomline is exactly that; viz., the bottomline.
The money’s not there. The nation, state, local governments in america have
not been managed for performance and are defacto bankrupt in general
therefore. States can’t pay what they don’t have, but there are a lot of those,
ie., frauds on wall street, etc., who should be paying first, whatever it takes! ]
The divide between government worker unions and their opponents
highlights a critical aspect of the evolving labor movement.
Balfour was an arbitrary, incompetent, british joke.). ]
U.S. freezes $30 billion in Libya government assets (Washington Post) [ The
lesson for the Libyan people based upon pervasively corrupt, defacto bankrupt
war crimes nation america’s desperation is … you better watch that Libyan
money closely; after all, look what’s happened to american money in american
hands … totally plundered by the opportunist few! ] Action taken by executive
order is largest blocking under any U.S. sanctions program ever; Clinton
announces efforts to stem humanitarian crisis.
[ (2-26-11) Let me state for the record here that my computer has been under
constant viral, hack attack, paralleling prior such foolish, paranoid actions and let
me reiterate: They will be sorry and I won’t forget it! ]
Report: GOP spending plan would cost 700,000 jobs (Washington Post) [ If
everyone was so concerned with the reality that pervasively corrupt america
is defacto bankrupt, they could could begin with disgorgement of the
hundreds of billions in fraudulent gains gotten in their massive fraud by the
frauds on wall street by prosecuting same as falsely promised by ‘wobama
the b’ (for b*** s***) and holder as set forth in Oscar Winner Ferguson’s
Documentary, ‘INSIDE JOB’, see immediately hereafter. After all, the nation
is bankrupt! Don't cut here (Washington Post) [ If not there … then where? I
think people are totally out-of-touch with the reality of america’s dire
circumstances and impending collapse on as many levels as a nation could
face disaster. Denial? If it were only that simple … Why your local Hospital
could soon shut down (Ad)
http://www.stansberryresearch.com/pro/1011PSIENDVD/LPSILC43/PR
( The instant video from Stansberry and Associates is so well researched
and succinctly presented that I’ve archived same on my website; also,
because the facts and views presented comport with the facts and views I’ve
presented on my site which not only do I believe to be correct, but are
supported by the unequivocal documented facts. This is a must-view, must-
see that I strongly recommend! The complete url ( 146 mb – approx. 1 hr.
17 min. ) :
http://www.albertpeia.com/stansberrysinvestmentadvisory.flv ) ]
Topic A: Advocates make the case for funding their favorite federal
programs. [ With what? The nation’s bankrupt: Senate Democrats draft cuts
in domestic agency budgets (Washington Post) [ Do these ‘too little, too
late’ so-called cuts purport to make the nation ‘less bankrupt’? There’s no
such thing … absolutely preposterous! And, Kotlikoff thinks so as well, see
immediately hereafter… ] The plan will involve accelerating some of the $33
billion in program terminations and reductions included in Obama's
proposed budget for next year. When Pretending Fails to Hide Bankruptcy:
Laurence Kotlikoff ( Today in the WashingtonPost.Com ) Laurence Kotlikoff
Feb 22, 2011 Feb. 23 (Bloomberg) -- Our country is bankrupt. It’s not
bankrupt in 30 years or five years. It’s bankrupt today…’ ] The report offers
fresh ammunition to Democrats seeking block the plan, which would slash
federal appropriations by $61 billion.



[45mb ]
Wobama says daffy gaddafi’s time is up, got to go. The same can be said of
wobama et als and his fraudulently failed presidency. Sheen On Obama: “A
Coward In a Cheap Suit” [ I think Sheen to be too gentle in his criticism of
wobama (Some might reflexively, defensively allege drugs (prescription or
otherwise) or any number of the varied personality disorders so prevalent in
america … ‘fuzzy, California laid back thinking’, ‘whatever’… Who knows? ) But,
that said, wobama’s far worse than just a ‘coward in a cheap suit’. Indeed,
Wobama’s a total fraud having been elected under false pretenses; viz., his total,
unequivocal, and unfulfilled b*** s*** (those campaign promises) ! Moreover, there
has been some persuasive documentation questioning wobama’s citizenship /
birthplace placing his eligibility to even hold the office of president in question. ]
Amidst the controversy of his wild interview on the Alex Jones Show yesterday,
actor Charlie Sheen wasted little time in confronting President Barack Obama on
his failure to answer Sheen’s twenty questions concerning 9/11, calling Obama,
“a coward in a cheap suit.” A Government Shut-down Imperils the Power of
Congress Paul Craig Roberts | Congress could try to protect its loss of the power
of the purse by impeaching Obama. Drudgereport: WOBAMA 'IMPEACHMENT'
WARNING... ...to announce exploratory committee 'in 10 days' Globalist
Shill Barack Obama Asks Business Leaders For Job Creation Ideas Even As He
Ships More Of Our Jobs Overseas As Part Of The New One World Economy The
other day, Barack Obama summoned a group of business and labor leaders to
the White House and “challenged” them to come up with some great ideas for
creating more jobs inside the United States.



Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)

recommend!
( 146mb – approx. 1 hr. 17 min. )
‘The Chicago PMI for February climbed to a 20-year high of 71.2. It had only ben expected
to come in at 67.5 after a 68.8 reading in January’. [ Come on! Does anyone take anything
coming out chicago capone-land seriously…maybe is the answer if you’re a fool. ]
OBISPO, Calif. (MarketWatch) — Politicians lie. Bankers lie. Yes, they’re liars. But
rich.
We want to believe they’re telling us the truth. Silly, huh? Both trapped in this
eternal “dance of death” controlled by programs hidden deep in our brains,
telling us what to do, telling us to ignore facts to the contrary — till it’s too late,
till a new crisis crushes all of us.
Dow ends at 2 1/2-year high
Joe Bel Bruno explains why stocks climbed to 21/2-year highs and extended their
winning streak to a third consecutive week.
Psychology offers us a powerful lesson: Our collective brain is destined to trigger
a crash before Christmas 2011. Why? We’re gullible, keep searching for a truth-
teller in a world of liars. And they’re so clever, we let them manipulate us into
acting against our best interests.
In fact, behavioral science tells us that bankers and politicians are lying to us
93% of the time. It’s 13 times more likely Wall Street is telling you a lie than the
truth. That’s why they win. Why we lose. Because our brains are preprogrammed
to cooperate in their con game. Yes, we believe most of their lies.
One of America’s leading behavioral finance gurus, University of Chicago Prof.
Richard Thaler, explains: “Think of the human brain as a personal computer with
a very slow processor and a memory system that is small and unreliable.” Thaler
even admits: “The PC I carry between my ears has more disk failures than I care
to think about.” Easy to manipulate.
Eternal love story: Your brain’s in love with Wall Street’s brain
Thaler’s a quant, speaks mostly in cryptic algorithmics. So if you really want to

know how Wall Street’s con game works on you, Barry Ritholtz, the financial
genius behind “Bailout Nation,” recently summarized it in the Washington Post:
“Humans make all the same mistakes, over and over again. It’s how we are wired,
the net result of evolution. That flight-or-fight response might have helped your
ancestors deal with hungry saber-toothed tigers and territorial Cro Magnons, but
it drives investors to make costly emotional decisions.”
Humans have something “akin to brain damage,” says Ritholtz. “To
neurophysiologists, who research cognitive functions, the emotionally driven
appear to suffer from cognitive deficits that mimic certain types of brain injuries.
… Anyone with an intense emotional interest in a subject loses the ability to
observe it objectively: You selectively perceive events. You ignore data and facts
that disagree with your main philosophy. Even your memory works to fool you, as
you selectively retain what you believe in, and subtly mask any memories that
might conflict.”
Worse, there’s no cure.
Your brain needs to believe lies; Wall Street loves telling lies
Examples: USA Today headline: “Average Bull is 3.8 years: We’re not at 2 yet.”
More upside. Wall Street loves it. The Wall Street Journal: “Stock recovery in high
gear … S&P500 now speeding toward its next landmark,” double its March 2009
bottom.
Other lies: Inflation and rate rises won’t push China and America over the edge
into a new bear recession. That one’s real popular in Wall Street’s echo chamber.
Wall Street also cheers every time cable pundits and journalists repeat their
favorite statistic: That stocks rally in the third year of a presidency, often more
than 20%. Yes, Wall Street loves those 93% lies.
Biggest lie? Wharton’s perennial bull, Jeremy Siegel, of “Stocks for the Long
Run” fame, recently told a TD Ameritrade Institutional Conference, “There’s
nothing but upside to come …the next several years are going to be good for
stocks.”
Yes, one of Wall Street’s favorite co-conspirators is hypnotizing thousands of our
best money managers and advisers into believing the lie that this bull market will
roar indefinitely. Worse, they’ll use that message to sell naive investors on
buying whatever junk Wall Street is selling.
Get the picture? A little conspiracy begins in your head, a conspiracy between
your gullible brain and Wall Street’s con men selling hype, hoopla and happy-talk.
Listen and you’ll lose. Warning: This little conspiracy is a retirement killer.
Remember: It’s odds-on you’re being lied to. So for a few moments, listen to
some highly respected contrarians. They’re short-selling this conspiracy, betting
that 2011 will hit headwinds before Christmas, turn a cyclical bull rally into a
cyclical bear market.
Our brains never learned 2008’s lessons, will fail again in 2011
Remember, we can’t help it. Our brains are defective, biased, manipulated by
unseen forces 93% of the time. So blame all the lies, lying and liars on our brain
wiring. A perfect excuse. Sure, political dogma and insatiable greed factor into
our bizarre mental equations. But your brain is as susceptible to the “great con”
as Ben Bernanke, Henry Paulson, Bernie Madoff.
Go back a few years: The subprime credit meltdown was widely predicted years
in advance. For example, back in 2007, the IMF’s Chief Economist, Raghuram
Rajan, “delivered a stark warning to the world’s top bankers: Financial markets
were headed for doom. They laughed it off,” said the Toronto Star. Both Alan
Greenspan and Larry Summers were there.
In April 2007, Jeremy Grantham, whose firm manages $107 billion, also warned
investors: “The First Truly Global Bubble: From Indian antiquities to modern
Chinese art; from land in Panama to Mayfair; from forestry, infrastructure, and the
junkiest bonds to mundane blue chips; it’s bubble time. … Everyone, everywhere
is reinforcing one another. … Bursting of the bubble will be across all countries
and all assets … no similar global event has occurred before.”
We knew a crash was coming, Wall Street laughed.
Call it denial, or lying, or just a brain defect, late that summer as the meltdown
spread like wildfire, shutting down the economy, our manipulative Treasury
Secretary Hank Paulson, a former Goldman Sachs CEO, told Fortune “this is far
and away the strongest global economy I’ve seen in my business lifetime.” And
Fed boss Bernanke was telling us the subprime crisis was “contained.” Alan
Greenspan agreed. He was on tour, making millions hustling his new book of
excuses, delusions and lies, “The Age of Turbulence.”
Today, just three years later, the market’s just a shade above its 2000 peak.
Adjusted for inflation, Wall Street stocks have lost roughly 20% of your retirement
money the past decade. Get it? Wall Street’s a big loser the past decade. And
they’ll lose another 20% by 2020. Why? Because 93% of what comes from Wall
Street is suspect, can’t be trusted.
Warning: Cyclical bull ends in 2011, new cyclical bear roars back
At the beginning of 2011 USA Today reported a contrarian forecast. Ned Davis
Research says the S&P 500 will make a run at the 2007 high of 1,565, but hit a
“midyear peak.” Then it will crash as interest rates rise. Davis concludes: “The
midyear peak could mark the end of the cyclical bull market that began in March
2009 and the start of a new cyclical bear market.”
Warning, even though your brain doesn’t want to hear it, there is a high
probability a new cyclical bear market will begin this summer … and overshadow
the 2012 elections.
The Journal’s also warning: “Inflation jitters spread through emerging markets,
prompting China’s central bank to raise interest rate for the third time in four
months amid worries that a drought threatening the country’s wheat crop will put
further pressure on global food prices.”
Wake up America: With commodity prices rising rapidly, all the bizarre
rationalizations Wall Street uses to keep Bernanke’s interest rates low are rapidly
vaporizing. Yes, Ned Davis’ prediction of a bear will soon be a painful reality.
S&P 500 inflated, worth just 910, get out before it tops 1,500
Grantham also sees inflation and rising interest rates killing the lies, popping the
bubble and ending the rally: “As a simple rule, the market will tend to rise as long
as short rates are kept low. This seems likely to be the case for eight more
months and, therefore, we have to be prepared for the market to rise and to have
a risky bias.”
With $107 billion at stake Grantham better be concerned. He predicted the 2008
meltdown, now sees a repeat dead ahead: “Be prepared for a strong market and
continued outperformance of everything risky, but be aware that you are living on
borrowed time as a bull.”
Yes, the bubble will pop this year says Grantham: “If the S&P rises to 1,500, it
would officially be the latest in the series of true bubbles. All of the famous
bubbles broke, but only after short rates had started to rise.”
So keep a close watch on those two tipping points in your planning, interest rates
breaking to the upside and the S&P closing near 1,500. When inflation pushes
interest rates up they’ll choke off this bull market. If you’re active, better stop
chasing higher returns, especially emerging markets.
Bottom line: In what sounds like a direct shot at super-bull Jeremy Siegel,
Grantham says that GMO’s research warns that “the market is worth about 910 on
the S&P 500, substantially less than current levels” just above 1,300.
Then Grantham throws his fast ball right down the middle: “The speed with which
you should pull back from the market as it advances into dangerously overpriced
territory this year is more of an art than a science, but by October 1 you should
probably be thinking much more conservatively.”
Translation: Get the heck out of Wall Street’s stock market casino soon, maybe
as early as July 4th, and definitely get out by Christmas, because soon all the
lies, lying and liars will stop working. ‘
Stock Concentration: A Different Aspect of ETF Risk Kownatzki ‘ETFs have been
all the rage. Ongoing investor interest has prompted an amazing growth of this
type of investment vehicle. For most individual investors the traditional ETFs do
provide an easy, certainly more cost effective way of diversification and therefore
spreading risk among possibly several hundred companies. Many of these ETFs
track the major stock market indices such as the SPDR S&P 500 (SPY), SPDR
Dow Jones Industrial Average (DIA) and PowerShares NASDAQ 100 (QQQQ).
I have been repeatedly critical of some of the more complex ETFs in the past.
Leveraged ETFs (double and triple) as well as inverse ETFs should only be
considered by more experienced investors as they generally incur much higher
risks. Worse yet, they tend to do a rather poor job at tracking the underlying
index or basket of assets, often lagging far behind the expected performance. We
discussed this in detail in numerous articles, more recently in Naïve expectations
versus actual performance.
By contrast, as long as one invests in the traditional ETFs tracking just the major
market indices, one should take comfort from the fact that diversification through
the many different companies provides some insurance against individual
company risk. Or does it?
Let’s look at an area of risk that’s not all that obvious on first glance:
concentration risk.
Whenever I examine a new ETF or Mutual Fund, my first question is always: What
are they actually buying and what are their current holdings?
One should do the same before buying any index fund too. Be aware of what the
index is actually made of and what the fund allocations are. For instance, looking
at the top ten holdings of the Dow Jones ETF (DIA), it is clear that a significant
portion of that index, about 10%, is allocated to one company – IBM. Nothing
against IBM, but just be aware that this is quite a large allocation in just one
stock.
DIA TOP TEN HOLDINGS AS OF 2-25-11

Components Weight
IBM 10.08%
Chevron (CVX) 6.39%
Caterpillar Inc (CAT) 6.30%
3M Co (MMM) 5.64%
Exxon Mobil (XOM) 5.39%
United Technologies
5.18%
(UTX)
McDonald's (MCD) 4.71%
Boeing Co (BA) 4.43%
Coca Cola Co (KO) 4.00%
Procter & Gamble Co (PG) 3.95%
Granted that the Dow is only made up of 30 companies, that concentration risk is
still relatively benign. Much more of a concentration risk has been gathering
steam in the NASDAQ 100. The extremely successful company Apple now
comprises more than one fifth of the Index, clearly a huge allocation in just one
company.
QQQQ TOP TEN HOLDINGS AS OF 2-25-11

Components Weight
Apple Inc. (AAPL) 20.47%
QUALCOMM Inc. (QCOM) 5.29%
Google Inc. (GOOG) 4.24%
Microsoft Corp. (MSFT) 3.59%
Oracle Corp. (ORCL) 3.17%
Amazon.com Inc. (AMZN) 2.43%
Intel Corp. (INTC) 1.96%
Cisco Systems Inc. (CSCO) 1.70%
Comcast Corp. (CMCSA) 1.68%
Teva Pharmaceutical (TEVA) 1.68%
Apple (AAPL) has been a huge success and the NASDAQ 100 Index has also been
profiting from Apple’s stellar performance in recent years. Without going into
detail as to how the component allocation of these indices are calculated, the
average investor should at least be aware of the top 10 holdings of these ETFs as
they provide some insight into how much or how little the index is actually
diversified. Given the larger allocation of Apple in this case has been a huge plus
for holders of QQQQ. But the same holders should appreciate that there is a
significant concentration risk through this massive holding in just one company.
Don’t get me wrong, I love Apple and its products and I am not here to argue as to
whether Apple’s astronomical market cap of $320 billion is justified. But the fact
that Apple is now more than 20% of the NASDAQ 100 leaves me a bit
uncomfortable.
You could consider buying Apple stock directly (if Apple were the “chosen one”)
while achieving your desired level of diversification through a broader index like
the S&P 500. In that index, comprised of 500 companies, Apple is still the second
largest component stock. However, with a weight of just 2.65% it looks more like
diversification is actually happening.
SPY TOP TEN HOLDINGS AS OF 2-25-11

Components Weight
Exxon Mobil 3.65%
Apple Inc. 2.65%
General Electric Co (GE) 1.85%
Chevron Corp New 1.73%
Microsoft Corp 1.70%
IBM 1.68%
JP Morgan Chase & Co
1.51%
(JPM)
Procter & Gamble Co 1.49%
Johnson & Johnson JNJ) 1.39%
Wells Fargo & Co (WFC) 1.39%
Again, I’m not debating the commercial viability of Apple Inc. (although there are
those who fear that the absence of Steve Jobs will eventually hurt the long-term
prospects of the company). This is rather a heads up for those who might not
realize how much of their money is invested in just one stock when they
purchase shares in the ETF QQQQ. Always good to know what’s inside the
shopping bag…’
tuned...’
Greenback Armageddon Ahead? Why the dollar is about to crash, with Damon
Vickers, Nine Points Capital Management founder, and “The Day After Dollar
Crash” author.
Government Promises to Cut Social Security It’s official, national austerity

measures are here.
Politicians Slash Budget of Watchdog Agencies … Guaranteeing that Financial

Fraud Won’t Be Investigated or Prosecuted As I noted last year, you can tell
how interested Congress and the White House are in uncovering the truth by
looking at how much money is actually budgeted for investigation.
Will banksters get away with it? Aljazeera | Why have the unions and leftist
groups been mostly silent on these issues?
Libya’s Turmoil Leads to Highest February Gas Prices in 21 Years ABC News |
Crude oil touched nearly $102 a barrel in Asia this morning amid fears that Libya
could halt exports.
The Flood Of Money Drowns Out The Value The world is awash in dollars and that
is being reflected in the USDX, which are six major currencies versus the
dollar. The loss of value is being loudly trumpeted as the IMF says a
replacement must be found.
Mob Robbers And Rampant Looting: Is This The Future Of America? Have you
ever heard of mob robberies? What happens is that dozens of young people
storm a store at the same time, take whatever they want, and then storm out
as powerless store clerks watch helplessly.
Price of food is at the heart of revolutions The Independent | No one saw the
uprisings coming, but their deeper cause isn’t hard to fathom.
Oil Rises for Second Day as Middle East Turmoil Spreads to Oman Bloomberg |
Oil advanced for a second day in New York after turmoil that has cut Libya’s
output spread to Oman.
Madoff Says Entire U.S. Government a `Ponzi Scheme’ Bernard Madoff, convicted
for organizing a ponzi scheme, criticized the U.S. during a recent telephone
interview with New York Magazine.
‘No Plans’ To Cut Speeds As Oil Price Soars Transport officials have denied they
are considering cutting speed limits on the roads to conserve fuel, despite
the world oil crisis.
“Technical Glitch” Takes Down Australian Stock Exchange After last week we
saw the Euronext, the Italian and the London Stock Exchanges crashing and
burning, it is now Australia’s turn.
Will The Death Of The Dollar Lead To The Birth Of A New World Economic Order?
There is no getting around it. The U.S. dollar is dying. U.S. government debt
continues to grow at a very frightening pace and the Federal Reserve is now
buying up most of the new debt that is being issued.
National / World
War, Martial Law, and the Economic Crisis Peter Dale Scott | A quiet
agglomeration of military power shows sustained intention.
Government Promises to Cut Social Security Infowars.com | It’s official, national

austerity measures are here.
“Day of Rage” in Iraq: 23 Killed by Government Infowars.com | Obama too busy

condemning Gaddafi to take al-Maliki to task in Iraq.
Obama Signs Patriot Act Extension New York Post | Allows law enforcement to set
roving wiretaps to monitor multiple communication devices.
Ignacio Pena: “Songs for the Fall of an Empire” Infowars.com | Another example of
the sort of excellent work submitted to the latest video contest.
A Government Shut-down Imperils the Power of Congress Paul Craig Roberts |

Congress could try to protect its loss of the power of the purse by
impeaching Obama.
Libyans: No Thanks to Globalist Intervention Kurt Nimmo | Rebel leader stated his
country does not want or need help from the United States and its globalist
partners.
Obama’s “Humanitarian” Conquest Of Libya Paul Joseph Watson | While his

predator drone attacks kill 90% innocents, President suddenly develops a
conscience for human suffering
Globalism Pushing Middle Class Standard of Living Down to Third World Levels
The Economic Collapse | The truth is that the global economy is bad for
America.
Is Barack Obama About To Order The U.S. Military To Invade Libya? As insane as
it might sound, the United States may soon be getting involved in another
war in the Middle East. According to White House spokesman Jay Carney,
“no options” have been taken off the table when it comes to the situation in
Libya.
War Uber Alles The United States government cannot get enough of war. With
Libyan dictator Moammar Gadhafi’s regime falling to a rebelling population,
CNN reports that a Pentagon spokesman said that the U.S. is looking at all
options from the military side.
Mob Robbers And Rampant Looting: Is This The Future Of America? Have you
ever heard of mob robberies? What happens is that dozens of young people
storm a store at the same time, take whatever they want, and then storm out
as powerless store clerks watch helplessly.
Infowars.com Takes 1st Place in Alternative News Rating The DBKP Report has
listed Infowars.com as the top alternative news and information website in
its February, 2011, 80 Alternative News-Information ratings report. DBKP
bases its ratings on 3-month average of Alexa worldwide traffic rankings.
Perceptions And Facts About The War On Terror American philosopher and
author Robert Anton Wilson, who died four years ago at the age of 74, tried
to awaken us to the fact that the “world is not governed by facts or logic,”
but by “belief systems.” The priests of power in the United States
understand this well, and they have used their knowledge to rule over the
ignorant people below them, and keep America in the dark.
Analysis of the Global Insurrection Against Neo-Liberal Economic Domination

and the Coming American Rebellion If you think what’s happening in Egypt
won’t happen within the United States, you’ve been watching too much TV.
The statistics speak for themselves.
UK paying ‘bribes’ to free trapped Britons Britain has been buying off Libyan
officials with hefty additional fees in order to expedite the troubled
evacuation of UK nationals, according to senior government figures.
Neocon Analysts Push for Invasion of Libya CNN reports the Pentagon and NATO
are ready to send troops into Libya under the cover of humanitarian
assistance. CNN underscores the situation by stating that reports say
Gaddafi will fight to the end and will seek martyrdom.
Inside The Mind Of Charlie Sheen Paul Joseph Watson & Alex Jones | Why the actor
is so angry, and why Infowars is involved in the story. Following the
controversy caused by Charlie Sheen’s wild and rampaging appearance on
The Alex Jones Show, it’s necessary to understand why the actor is so
angry, if only to set the record straight on a number of issues that have been
misconstrued by the establishment media, as well as explaining why
Infowars and Alex Jones are involving themselves with the machinations of
the entertainment industry.
Homeland Security To Scan DNA The Homeland Security Department this

summer plans to begin testing a DNA analyzer that’s small enough to be
easily portable and fast enough to return results in less than an hour.
The Real Revolution As Washington plunges the Middle East and North Africa
into chaos, and city by city collapses into the hands of globalist stooges,
many have mistakenly interpreted this “change” as a positive
transformation.
Obama says Kadhafi must ‘leave now’: White House President Barack Obama
said Saturday that Libya’s leader Moamer Kadhafi needs to “leave now,”
having lost the legitimacy to rule, a White House statement said.
Rebel army may be formed as Tripoli fails to oust Gaddafi Col. Moammar Gaddafi
faced fresh setbacks domestically and internationally early Sunday with
opposition forces in eastern Libya preparing to dispatch a rebel force to his
stronghold in Tripoli and the United Nation’s imposing military and financial
sanctions while raising the specter that the isolated leader could face
charges for crimes against humanity.
Globalist Client Regime in Iraq Massacres Protesters Kurt Nimmo | Donald

Rumsfeld told the Iraqis democracy can be messy. It can also be bloody.
War Über Alles Paul Craig Roberts | War makes money for the politically
connected.
The Real Revolution Tony Cartalucci | We have been given a prepackaged ideal of
what “revolution” is supposed to look like.
North Korea threatens US, South with 'all-out war' (AFP) AFP - North Korea
threatened "all-out war" in response to exercises by South Korean and US troops
due to start Monday and told Seoul to stop cross-border propaganda, upping the
rhetoric against its ar...
Afghan gov't: NATO op killed 65 civilians (AP) [ War criminals winning hearts and
minds? … Never gonna’ happen! ]
Ron Paul: Reject the Welfare-Warfare State! During the past few weeks, Congress
has been locked in a battle to pass a continuing resolution to fund
government operations through September. Both supporters and opponents
of the bill – HR1 – claim it is a serious attempt to reduce federal spending.
However, an examination of the details of the bill call that claim into
question.
Alex Jones Culture Jams The View Alex Jones blasts the truth to The View’s
audience of millions, bringing up the slaughter of a million innocents in Iraq,
TSA grope down abuse, as well as the collapse of Building 7.
Obama Encircles US War Machine Around Libya President Barack Obama has
instructed the Pentagon to reposition U.S. military forces around Libya as
the administration prepares to exploit a humanitarian crisis to seize de facto
control over the largest oil producing country in the continent of Africa,
following the advice of top neo-cons who have urged Obama to use U.S.
forces to topple the Gaddafi regime.
Ron Paul 2012: Tea Partiers Choose Congressman Over Sarah Palin For
Presidential Bid Congressman Ron Paul has topped a Tea Party presidential
straw poll, beating Sarah Palin as the favourite to run against Barack Obama
in 2012.
Libyans: No Thanks to Globalist Intervention Following Secretary of State

Clinton’s call for intervention, a rebel leader in Libya has stated his country
does not want or need any help from the United States and its globalist
partners.
Saudi activists eye protests, wait for new cabinet Democracy activists in Saudi
Arabia say the government is closely monitoring social media to nip in the
bud any protests inspired by uprisings that swept Arab countries, toppling
leaders in Egypt and Tunisia.
Obama’s “Humanitarian” Conquest Of Libya Before President Barack Obama

even took office, we warned that his administration would continue to follow
the Bush-era policy of bankrupting America both financially and morally with
new wars, but that these conquests would be done in the name of a
humanitarian crisis rather than a pre-emptive assault.
Congress on course to avert shutdown (Washington Post) [ And just when we

thought there was hope … for the nation … the world … How ‘bout a massive
furlough program for congress, the judiciary, and the executive branch (except
law enforcement). After all, if all of the foregoing along with the likes of pseudo
gov’t / connected fraudulent wall street, etc., are not to blame for the debacle we
now call america, then who is? They are, period, exclamation point. Massive
firings would also do quite satisfactorily! ]
Chinese authorities block Web site, terms (Washington Post) [ It is bad enough
that China is essentially a totalitarian communist nation, disingenuously relying
upon capitalism for its stellar growth. In light of such and China’s preoccupation
with censorship, it is also clear that it’s not so much China’s rise as it is
pervasively corrupt / defacto bankrupt america’s demise. In other words, they’re
‘limited’ (by such). But make no mistake, pervasively corrupt, defacto bankrupt
america goes to great lengths in suppressing information, truth in favor of what’s
spewed out by their propaganda machine which is nonpareil; and then there’s the
perpetual illegal wars. ] Chinese authorities continued to tighten controls on
Internet use Friday in the face of murky calls for "jasmine rallies" to emulate the
anti-government protests convulsing the Middle East and North Africa.
Midwest, Middle East events threaten U.S. (Washington Post) [ Come on! It’s just
not there! ‘Seemed’ is the best they can muster and that’s what they’re
shooting for … to fool all of the american people/taxpayers (other than
insiders) all of the time … see here: Why your local Hospital could soon shut
down (Ad)
17 min. ) :
http://www.albertpeia.com/stansberrysinvestmentadvisory.flv ) ] Just
when the economic recovery seemed to gain momentum, two new threats
have emerged that could undermine it.
Don't cut here (Washington Post) [ If not there … then where? I think people are
totally out-of-touch with the reality of america’s dire circumstances and
impending collapse on as many levels as a nation could face disaster.
Denial? If it were only that simple … Why your local Hospital could soon
shut down (Ad)
17 min. ) :
http://www.albertpeia.com/stansberrysinvestmentadvisory.flv ) ]
Topic A: Advocates make the case for funding their favorite federal
programs. [ With what? The nation’s bankrupt: Senate Democrats draft cuts
in domestic agency budgets (Washington Post) [ Do these ‘too little, too
late’ so-called cuts purport to make the nation ‘less bankrupt’? There’s no
such thing … absolutely preposterous! And, Kotlikoff thinks so as well, see
immediately hereafter… ] The plan will involve accelerating some of the $33
billion in program terminations and reductions included in Obama's
proposed budget for next year.
When Pretending Fails to Hide Bankruptcy: Laurence Kotlikoff ( Today in the

WashingtonPost.Com ) Laurence Kotlikoff Feb 22, 2011
Feb. 23 (Bloomberg) -- Our country is bankrupt. It’s not bankrupt in 30 years or

five years. It’s bankrupt today.
Want proof? Look at President Barack Obama’s 2010 budget. It showed a
massive fiscal gap over the next 75 years, the closure of which requires
immediate tax increases, spending cuts, or some combination totaling 8 percent
of gross domestic product. To put 8 percent of GDP in perspective, this year’s
employee and employer payroll taxes for Social Security and Medicare will
amount to just 5 percent of GDP.
Actually, the picture is much worse. Nothing in economics says we should look
out just 75 years when considering the present-value difference between future
spending and future taxes. Over the full long-term, we need an extra 12 percent,
not 8 percent, of GDP annually.
Seventy-five years seems like a long enough time to plan. It’s not. Had the
Greenspan Commission, which “fixed” Social Security back in 1983, focused on
the true long term we wouldn’t be sitting here now with Social Security 26 percent
underfunded. The Social Security trustees, at least, have learned a lesson. The 26
percent figure is based on their infinite horizon fiscal- gap calculation.
But the real reason we can’t look out just 75 years is that the government’s cash
flows (the difference between its annual taxes and non-interest spending) over
any period of time, including the next 75 years, aren’t well defined. This reflects
economics’ labeling problem. If you use different words to describe the receipts
taken in and paid out each year by the government, you produce entirely different
cash flows and an entirely different fiscal gap measured over any finite horizon.
Matter of Language
It’s only the value of the infinite horizon fiscal gap that is unaffected by the choice
of labels of language. Take this year’s payroll tax contributions. Let’s call these
transfers from workers to Uncle Sam “borrowing” by the government, rather than
“payroll taxes,” since the money will be paid back as future benefits. If the future
payback isn’t in full (equal to principal plus interest), we can call the difference a
“retirement tax.” Presto! With this change of words, our 2011 deficit of about 10
percent of GDP is boosted another five points to 15 percent.
With one set of words, taxes are higher now and lower latter. With the other set of
words, the opposite is true. But neither set of labels makes more economic sense
than the other or changes what the government takes, on balance, from any
person or business in any given year.
This is no surprise. The math of economics rules out an absolute measure of the
deficit, just like the math of physics rules out an absolute measure of time.
Bottom Line
The bottom line, then, is that we need to look at the infinite-horizon fiscal gap not
just for Social Security, but for the entire federal government. That analysis,
based on the Congressional Budget Office’s long-term alternative fiscal scenario,
shows an unfathomable fiscal gap of $202 trillion. And covering this gap requires
coming up with the aforementioned 12 percent of GDP, forever.
If this gives you the willies, there’s a ready narcotic -- the president’s 2012
budget, which shows that most of our long- term fiscal problem has miraculously
disappeared; the fiscal gap isn’t 12 percent of annual GDP. Nor is it 8 percent. It’s
now 1.8 percent.
This fantastic improvement in our finances is due, we’re told, primarily to the
Independent Payment Advisory Board. This board, to be established in 2014 (after
the next election, of course) is charged with recommending cuts to Medicare and
Medicaid providers when their costs grow too fast.
Repealing Cuts
We’ve had laws mandating such cuts for years, and they are routinely repealed.
Indeed, President Obama signed the latest such repeal last June. But rather than
laugh out loud at this cost-control mechanism, the Medicare trustees, three-
quarters of whom were appointed by the president, assume in their 2010 report
that these cuts will be made -- to the dollar. And the 2012 budget cites the report’s
fictional forecast as its authoritative source.
No one takes the 2010 Medicare trustee report’s long-run projections seriously,
least of all Richard Foster, Medicare’s chief actuary. Foster added this statement
to the end of the report: “The financial projections shown in this report for
Medicare do not represent a reasonable expectation…in either the short range…
or the long range.”
This isn’t the first administration to conceal our long- term fiscal problem. Back in
1993, Alice Rivlin, then deputy director of the Office of Management and Budget,
asked me and economists Alan Auerbach and Jagadeesh Gokhale to prepare a
long-term fiscal gap/generational accounting for inclusion in President Bill
Clinton’s 1994 budget.
Politics Triumphs
We worked for months on the analysis, but two days before the budget’s release,
the study was excised from the budget. We were shocked, but, in retrospect, the
politics are clear. The Clinton administration wanted to claim it was fiscally
prudent and the study, which showed unofficial debt growing at enormous rates,
showed the opposite.
The fiscal gap’s next near appearance in a president’s budget was in 2003.
Treasury Secretary Paul O’Neill commissioned Gokhale and Kent Smetters to do
the study. It showed a massive $45 trillion fiscal gap -- not a great basis for
pushing tax cuts or introducing the prescription-drug benefit for seniors, known
as Medicare Part D. O’Neill was ousted on Dec. 6, 2002, and a couple of days later
the fiscal-gap study was discarded.
I’m not sure whether censoring the fiscal gap is more dishonorable than fudging
it. What I do know is that we can’t assume our problems away and that I expected
far better of this president when I voted for him.
--Editors: James Greiff, Steven Gittelson’
Libyan ruler clings to power as violence escalates (Washington Post) [ Clings? …

As in a tight sweater … or maybe a straight jacket. Wow! Talk about delusional. ]
Regime opens fire on protesters; Gaddafi calls supporters to arms (Washington
Post) [ Pressure mounts on Gaddafi (Washington Post) [ That he was always a
caricature of sorts, there is no question. That he’s totally burned out, there’s also
no doubt; though they might argue in his defense that so was failed president
dumbya bush … a point well taken … but look at the consequential pathetic state
of pervasively corrupt, defacto bankrupt america … with the unlit torch passed to
failed president wobama the b (for b*** s***) who pretends, or maybe in his
alternate and fake reality just believes it’s lit. That he’s done, also fait accomplis,
after 41 years … who cares. That he’s insane … now that’s quite another thing
with greater worldwide implications, so, daffy… gadaffy… duck! Gaddafi vows to
maintain hold on power Libyan strongman says he'll fight 'until the last drop of
my blood' (Washington Post) [ His latter wish is the world’s command.
‘Something there is that doesn’t love a dictator, that wants them down’ …
(Excuse me … I was thinking of walls and ‘Mending Wall’, Robert Frost
http://albertpeia.com/RobertFrost.htm ). Libya Internet Shut Down Amid Protests,
Per Multiple Reports [ Once again, as in Egypt, this, the internet, inherently
global in nature is the lynchpin, tampering with or stifling same marking the end
of any regime. Let this be a warning; viz., you cannot put the genie back in the
bottle! 41 years? Gadaffy duck should duck ‘cause he’s done. I mean, look at him,
he’s the singular equivalent of the multiple bushes. He’s totally burnt out (as
much or more so than dumbya bush or mubarack) and quite done! ] Reports have
emerged late Friday that Libya appears to have shut down its Internet due to
widespread protests, less than a month after Egypt did the same. ] With rebels
apparently controlling much of the eastern half of the country, the violence
engulfing Libya is already the worst in more than a month of unrest that has
toppled other regimes. ] He remains defiant even as high-level defections
continue to weaken his government and rebels reportedly seize control of key
swaths of nation. American evacuees describe 'long ordeal' on ferry
(Washington Post) [ I’ve included this headline here, not for the article’s content
but rather for the statement of one of said evacuees on network television news
that he was told by the u.s. embassy that they’d have to fend for themselves and
that they’re on their own. That is an important aspect of the fact-filled video
presentation by Stansberry and Associates, infra, except that that will be the
almost unimaginable position of the u.s. government when the almost
unimaginable but inevitable happens here in pervasively corrupt, defacto
bankrupt america. Don’t forget, they and their’s have plundered this nation, its
treasury, people and have use each branch of this government to do so. I’ve
experienced this first-hand in having to ‘fend for myself’ in what should have
been a simple RICO case owing to the venality of those self-interested in the
process (bribes, cover-up of crimes, etc.
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ) …..
http://www.stansberryresearch.com/pro/1011PSIENDVD/LPSILC43/PR The
site which not only do I believe to be correct, but are supported by the
unequivocal documented facts. This is a must-view, must-see that I strongly
recommend! The complete url ( 146 mb – approx. 1 hr. 17 min. ) :
http://www.albertpeia.com/stansberrysinvestmentadvisory.flv ]

site which not only do I believe to be correct, but are supported by the
unequivocal documented facts. This is a must-view, must-see that I strongly
recommend! The complete url ( 146 mb – approx. 1 hr. 17 min. ) :
http://www.albertpeia.com/stansberrysinvestmentadvisory.flv ]
central banks to combat the inflationary pressures.
The U.S. market has had no such worries, and has continued its non-stop bull
market to new highs.
It did stumble a bit this week, spooked by the spike-up in oil prices created by the
spreading unrest in oil-producing countries, notably Libya. Yet in the week’s
decline the Dow and S&P 500 fell less than 3%, hardly a blip on the long-term
charts.
Short-term, the next ‘monthly strength period’ has arrived, when the market tends
to be positive for the five-day period from the last trading day of the month
through the first four days of the following month.
As I have written before, it is a quite consistent pattern. For instance, in 2010 the
S&P 500 gained 143 points, or 12.8% for the year, but its gains on just the first
three days of each month amounted to 229 points, or 20.5%. The pattern has
pretty much continued so far this year, with nice gains in the first weeks of both
January and February.
That raises the odds for a return to a positive market next week.
Yet, the events of the past week may have been a warning shot. There had
already been enough potential catalysts for a market correction. This week added
several more.
As most investors are aware, investor sentiment has been at levels of bullishness
and confidence usually seen near market tops, and the major market indexes are
as over-extended above their long-term 200-day moving averages as they usually
get without at least a 10% to 12% correction down to retest the support at those
moving averages. As noted, many important global stock markets, including
China, Brazil, India and Hong Kong, have been in fairly significant corrections
since November, and global markets, including the U.S., tend to move in tandem
with each other in both rallies and corrections.
Now we have spiking oil prices. The 2003-2007 bull market ended in October,
2007 when the price of oil reached $96 a barrel. The 2007-2009 recession began
three months later. After trading briefly above $100 a barrel on Thursday oil
pulled back, but was still trading around $97 at the week’s end.
On Thursday it was reported that new home sales plunged an unexpected and
huge 12.6% in January. It was not a good start for this year, after 2010 was the
worst year for new home sales in almost half a century. Not providing much
encouragement for coming months, it was also reported that applications for
mortgages are at a 15-year low.
Then, on Friday it was reported that the economy was even weaker than
previously thought in the December quarter. Gross Domestic Product (GDP)
growth for the quarter was unexpectedly revised down to only 2.8% from the
previously reported 3.2%.
These events and reports – turmoil in the oil-producing countries that is more
likely to spread than go away; spiking oil prices that tend to cut into U.S.
economic growth (and add to global inflation pressures); news that the economy
grew significantly slower in the 4th quarter than previously thought – were more
than enough reasons for the market to nosedive this week. But it only stumbled
for a few days.
Yet it was enough to cause some concern and nervousness. That could be seen
in the sharp drop in bullish investor sentiment, and the upturn in the number of
pundits declaring the end of the bull market. The poll of its members by the
American Association of Individual Investors (AAII) this week shows the
percentage of those who are bullish plunged to just 36.6% from readings above
50% just three weeks ago, and the near record high of 63% in late December.
Sentiment does reverse from high levels of bullishness near tops to increasingly
pessimistic expectations as corrections develop.
So was this week’s stumble the beginning of a more serious correction?
The events and reports this week did provide more evidence that the stock
market may be ahead of reality regarding prospects for the economy, and
therefore corporate earnings, going forward, which should at least limit the
market’s upside potential.
Limited upside potential equals more downside risk?
It might be wise to lighten up some into strength that may develop over the next
few days during the ‘monthly strength period.’
Ready to Rally or Ready to Blow? The One Indicator That's in the Know
Maierhofer, On Friday February 25, 2011, 7:35 pm EST
After publishing this article on Tuesday, a lot of people asked me: 'So, what did
percentR tell you about the rally. Is it over?'
Unfortunately the message of this accurate but little-known indicator wasn't as clear as I
hoped, but it was nevertheless valuable. Combining percentR with my other tenchnical
analysis, I came to the following conclusion (published for ETF Profit Strategy
subscribers in the Wednesday update):
'It looks like stocks want to rally and retrace some of the points lost since last Friday.'
Based on percentR the up trend may be over, but it's too early to tell. If stocks break out
above the safety level outlined in the same update, the rally will be back on track.
Please find below the original article for your reading pleasure:
Low-Risk. The term 'low-risk' has the same appeal in the investment world as the
enticing little word 'free' in the advertising world.
Some advertising executives claim that 'free' is the most powerful word in the ad world.
'Low-risk' might be the most powerful concept in the investing universe.
If you read the ETF Profit Strategy Newsletter you are very familiar with the term low-
risk entry. If you don't, here's a quick summary and crash course of an indicator that's
been 100% accurate over the past 6 months.
Low risk entries for various indexes are identified or triggered by a relative strength
indicator called percentR. PercentR is expressed on a scale from 1 - 100. Readings
above 80 are considered overbought, readings below 20 oversold. If you read the ETF
Profit Strategy Newsletter you are very familiar with the term low-risk entry. If you don't,
here's a quick summary and crash course of an indicator that's been 100% accurate
over the past 6 months.
Uncannily Accurate
A picture says more than a thousand words and the chart sheds more light on the value
of percentR. As you can tell by the red line, following the W bottom in November (not
shown in the chart), percentR spiked above 80 (first yellow circle) around S&P 1,210.
This was the initial buy signal. [chart]
With two exceptions, percentR remained above 80 ever since. The two dips below 80
(yellow circles) on January 19 and 28 triggered a low-risk entry. Even though investors
were worried about riots in Egypt, according to percentR it was time to buy.
This bullish low-risk entry is valid as long as the underlying index (in this case the S&P
500) does not close below that day's low (white line). In both instances, the S&P (SNP:
^GSPC) stayed above that low and went on to rally over 5%.
Other Low-Risk Entries
PercentR works with stocks and indexes alike. Similar low-risk entries were identified by
the ETF Profit Strategy Newsletter for the Dow Jones (DJI: ^DJI), Nasdaq-100 (Nasdaq:
QQQQ - News), Nasdaq Composite (Nasdaq: ÎXIC), and the Financial Select Sector
SPDR (NYSEArca: XLF - News) on January 28. The Russell 2000 (Chicago Options:
^RUT) was the weakest index and registered its low-risk entry sooner.
Corrections are Healthy, if ...
'Corrections are healthy' is one of many ambiguous Wall Street sayings. If you judge the
current 'bull market' purely on this statement, this market is one sick puppy - there
hasn't been more than a 2.5% correction in nearly a quarter - and needs a serious
correction to be jolted back into healthy territory.
Put yourself in a time capsule and zoom back to April 2010 when the major U.S.
indexes declined nearly 20% before the promise of QE2 resurrected stocks. There was
little conviction then that corrections are healthy. The correction had rattled the investing
masses and shaken out many stockholders before the market went on to rally again.
PercentR is the canary in the coalmine that identifies a deeper correction. No significant
sell off happens without a failed low-risk entry.
A failed low-risk entry occurs when the indexes close below the low of the day that
triggers the low-risk entry (white lines on the chart). The last failed low-risk entry
happened in November 2010 when stocks chopped around for a few weeks and
ultimately lost about 5%. Another failed low-risk entry flashed a sell signal on August 11
and ushered in a 21 day, 8% sell off.
The Right Tool for the Job
Any craftsman will tell you that there are limitations to any tool, but there's a tool for
each job. percentR is the right tool for the current job.
After a parabolic rally, the job at hand is to distinguish whether pull backs are a buying
opportunity or a warning signal. Should you buy the dips or step on the sidelines (or
even short the market)?…’
could halt exports.
IMF Austerity Measures Lead to Violent Riots in Greece AFP | The confrontation
occurred near the finance ministry.
Saudi Arabia Raises Oil Output By 8% To Over 9 Million Barrels Per Day As we
reported yesterday, Saudi Arabia which following its latest recreation of
Helicopter Ben’s money parachuting experiment to buy its people’s love,
suddenly has found itself in a fiscal crunch, has no choice but to increase
general oil sales revenues.
It’s Not an Arab Revolution … It’s a GLOBAL Revolution While the revolution in
Tunisia, Egypt, Libya and other North African countries may seem like an
“Arab revolt”, it’s actually worldwide.
What You Need To Know About Buying Silver At A Time When Even The
Canadian Mint Says “It Has Sold Everything It Has” Even as silver performed
some unprecedented fireworks today, plunging on what was a margin hike
in… crude, the metal continues to trade just below its post-Hunt Brother
highs.
Adjusted Monetary Base Goes Vertical Just in case there was any confusion in
the interpretation of the M2 chart, here is the latest just released Adjusted
Monetary Base.
21 Signs That The Once Great U.S. Economy Is Being Gutted, Neutered,
Defanged, Declawed And Deindustrialized Once upon a time… The Economic
Collapse Feb 12, 2011 ‘Once upon a time, the United States was the greatest
industrial powerhouse that the world has ever seen. Our immense economic
machinery was the envy of the rest of the globe and it provided the foundation for
the largest and most vibrant middle class in the history of the world. But now the
once great U.S. economic machine is being dismantled piece by piece. The U.S.
economy is being gutted, neutered, defanged, declawed and deindustrialized and
very few of our leaders even seem to care. It was the United States that once
showed the rest of the world how to mass produce televisions and automobiles
and airplanes and computers, but now our industrial base is being ripped to
shreds. Tens of thousands of our factories and millions of our jobs have been
shipped overseas. Many of our proudest manufacturing cities have been
transformed into “post-industrial” hellholes that nobody wants to live in anymore.
Meanwhile, wave after wave of shiny new factories is going up in nations such as
China, India and Brazil. This is great for those countries, but for the millions of
American workers that desperately needed the jobs that have been sent overseas
it is not so great.
This is the legacy of globalism. Multinational corporations now have the choice
whether to hire U.S. workers or to hire workers in countries where it is legal to
pay slave labor wages. The “great sucking sound” that Ross Perot warned us
about so long ago is actually happening, and it has left tens of millions of
Americans without good jobs.
So what is to become of a nation that consumes more than it ever has and yet
continues to produce less and less?
Well, the greatest debt binge in the history of the world has enabled us to
maintain (and even increase) our standard of living for several decades, but all of
that debt is starting to really catch up with us.
The American people seem to be very confused about what is happening to us

because most of them thought that the party was going to last forever. In fact,
most of them still seem convinced that our brightest economic days are still
ahead.
After all, every time we have had a “recession” in the past things have always
turned around and we have gone on to even greater things, right?
Well, what most Americans simply fail to understand is that we are like a car that
is having its insides ripped right out. Our industrial base is being gutted right in
front of our eyes.
Most Americans don’t think much about our “trade deficit”, but it is absolutely
central to what is happening to our economy. Every year, we buy far, far more
from the rest of the world than they buy from us.
In 2010, the U.S. trade deficit was just a whisker under $500 billion. This is money
that we could have all spent inside the United States that would have supported
thousands of American factories and millions of American jobs.
Instead, we sent all of those hundreds of billions of dollars overseas in exchange

for a big pile of stuff that we greedily consumed. Most of that stuff we probably
didn’t need anyway.
Since we spent almost $500 billion more with the rest of the world than they spent
with us, at the end of the year the rest of the world was $500 billion wealthier and
the American people were collectively $500 billion poorer.
That means that the collective “economic pie” that we are all dividing up is now
$500 billion smaller.
Are you starting to understand why times suddenly seem so “hard” in the United
States?
Meanwhile, jobs and businesses continue to fly out of the United States at a
blinding pace.
This is a national crisis.
We simply cannot expect to continue to have a “great economy” if we allow our

economy to be deindustrialized.
A nation that consumes far more than it produces is not going to be wealthy for
long.
The following are 21 signs that the once great U.S. economy is being gutted,
neutered, defanged, declawed and deindustrialized….
#1 The U.S. trade deficit with the rest of the world rose to 497.8 billion dollars in
2010. That represented a 32.8% increase from 2009.
#2 The U.S. trade deficit with China rose to an all-time record of 273.1 billion
dollars in 2010. This is the largest trade deficit that one nation has had with
another nation in the history of the world.
#3 The U.S. trade deficit with China in 2010 was 27 times larger than it was back
in 1990.
#4 In the years since 1975, the United States had run a total trade deficit of 7.5
trillion dollars with the rest of the world.
#5 The United States spends more than 4 dollars on goods and services from
China for every one dollar that China spends on goods and services from the
United States.
#6 In 1959, manufacturing represented 28 percent of all U.S. economic output. In

2008, it represented only 11.5 percent and it continues to fall.
#7 The number of net jobs gained by the U.S. economy during this past decade
was smaller than during any other decade since World War 2.
#8 The Bureau of Labor Statistics originally predicted that the U.S. economy
would create approximately 22 million jobs during the decade of the 2000s, but it
turns out that the U.S. economy only produced about 7 million jobsduring that
time period.
#9 Japan now manufactures about 5 million more automobiles than the United
States does.
#10 China has now become the world’s largest exporter of high technology
products.
#11 Manufacturing employment in the U.S. computer industry is actually lower in

2010 than it was in 1975.
#12 The United States now has 10 percent fewer “middle class jobs” than it did
just ten years ago.
#13 According to Tax Notes, between 1999 and 2008 employment at the foreign
affiliates of U.S. parent companies increased an astounding 30 percent to 10.1
million. During that exact same time period, U.S. employment at American
multinational corporations declined 8 percent to 21.1 million.
#14 Back in 1970, 25 percent of all jobs in the United States were manufacturing
jobs. Today, only 9 percent of the jobs in the United States are manufacturing
jobs.
#15 Back in 1998, the United States had 25 percent of the world’s high-tech export
market and China had just 10 percent. Ten years later, the United States had less
than 15 percent and China’s share had soared to 20 percent.
#16 The number of Americans that have become so discouraged that they have
given up searching for work completely now stands at an all-time high.
#17 Half of all American workers now earn $505 or less per week.
#18 The United States has lost a staggering 32 percent of its manufacturing jobs
since the year 2000.
#19 Since 2001, over 42,000 U.S. factories have closed down for good.
#20 In 2008, 1.2 billion cellphones were sold worldwide. So how many of them
were manufactured inside the United States? Zero.
#21 Ten years ago, the “employment rate” in the United States was about 64%.
Since then it has been constantly declining and now the “employment rate” in the
United States is only about 58%. So where did all of those jobs go?
The world is changing.
We are bleeding national wealth at a pace that is almost unimaginable.
We are literally being drained dry.
Did you know that China now has the world’s fastest train and the world’s largest
high-speed rail network?
They were able to afford those things with all of the money that we have been
sending them.
How do you think all of those oil barons in the Middle East became so wealthy
and could build such opulent palaces?
They got rich off of all the money that we have been sending them.
Meanwhile, once great U.S. cities such as Detroit, Michigan now look like war
zones.
Back in 1985, the U.S. trade deficit with China was about 6 million dollars for the
entire year.
As mentioned above, the U.S. trade deficit with China for 2010 was over 273billion
dollars.
What a difference 25 years can make, eh?
What do you find when you go into a Wal-Mart, a Target or a dollar store today?
You find row after row after row of stuff made in China and in other far away
countries.
It can be more than a bit difficult to find things that are actually made inside the
United States anymore. In fact, there are quite a few industries that have
completely and totally left the United States. For certain product categories it is
now literally impossible to buy something made in America.
So what are we going to do with our tens of millions of blue collar workers?
Should we just tell them that their jobs are not ever coming back so they better
learn phrases such as “Welcome to Wal-Mart” and “Would you like fries with
that”?
For quite a few years, the gigantic debt bubble that we were living in kind of
insulated us from feeling the effects of the deindustrialization of America.
But now the pain is starting to kick in.
It has now become soul-crushingly difficult to find a job in America today.
According to Gallup, the U.S. unemployment rate is currently 10.1% and when
you throw in “underemployed” workers that figure rises to 19.6%.
Competition for jobs has become incredibly fierce and it is going to stay that way.
The great U.S. economic machine is being ripped apart and dismantled right in
full view of us all.
This is not a “conservative” issue or a “liberal” issue. This is an American issue.
The United States is rapidly being turned into a “post-industrial” wasteland.
It is time to wake up America.’
This is that unmentionable reality as I alluded to earlier on close scrutiny of the

data, ‘that stock prices have been manipulated to the upside beyond any and all
rational basis‘ and as I previously wrote: Perception vs. Reality: Four Reasons to
Remain Cautious on U.S. Equities [ Hey, Abbott … That’s Lou Costello calling
him from the other side … Wake up! … Just kidding … but I’m not kidding when I
say that contrary to Abbott’s view, infra, if you’re not a successful market timer
you should rethink your position as an equity investor. Moreover, in
contradistinction to Mr. Abbott’s implication, if you’re not a successful speculator
(there are very few), you should rethink your position as a short seller: reason…,
you could be wiped out, lose more than your principal, forced to cover (that’s why
the same is considered a contrary market indicator, particularly in these
manipulated, contrived markets). When I did my MBA thesis (1977, NYU, GBA,
Eve.Prog., Finance), a review of the data revealed even then (and much more so
now with computer programmed market manipulation) that the market remained
biased / propped up (artificially, especially now with computerized manipulation)
to the upside for far longer periods of time than for the downside which meant
that dollar-cost averaging (through regular, periodic investment, for example),
meant you were accumulating shares at higher prices generally for longer
periods of time skewing the average cost to the upside (dollar-cost-averaging in
declining markets was ok if analysis / forecast saw resurgence based on
fundamentals - now absent – which is timing, as even senile wall street / gov’t
shill Buffet would attest, that ‘greedy when others are fearful thing’). Abbott
discusses perception which is the psychological factor involved in security
evaluation / analysis; but investors need not and should become nuts
themselves, particularly when as now, the inmates are running the asylum. ]
Abbott ‘Perception determines short-term market movements. The difference between
perception and reality determines the direction of major market trends. Though I
generally try to avoid making macro prognostications, I believe bottom-up analysis can
be informative about the current level of stock prices. I want to share what my recent
work tells me about where stocks are (and where they might be headed). I will outline
some various nuggets of collective wisdom that are taken for granted right now by stock
bulls, and I will attempt to demonstrate how reality is likely to differ from these
perceptions.
First, a disclaimer. This is not a market timing call. At all times, I stay away from market
timing predictions. I think that's a loser's game in the long run. Even if I'm correct about
the discrepancies between the following perceptions and realities, there's no saying
when people will change their minds or shift their focuses. That said, let's dive in.
Perception vs. Reality #1

Perception: Low Interest Rates, Questionable Bond Outlook Means Stocks are
Attractive
Reality: Interest Rates Are Being Artificially and Deliberately Manipulated
It's no secret that the Federal Reserve's low interest rate policy and quantitative easing
efforts have held interest rates very low for very long. However, when people talk about
stock market implications of bond yields, they rarely mention the fact that bond yields
are artificially low. In an unmanipulated market, bond prices and stock valuations should
be related, but I regard that connection as highly dubious right now. Investors who say
that stocks deserve higher multiples (lower earnings yields) because bond yields are so
low may well be setting themselves up for disappointing returns/frustrating losses when
bond prices normalize. Again, this isn't a market timing call, and yields may remain low
for quite some time. But, eventually this discrepancy will correct itself, and stock
performance is likely to suffer at that time.
Perception: Earnings Growth Has Been Strong and Will Remain That Way
Reality: Top-Line Growth Will Have to Pick Up; Cost-Cutting has Run Its Course
Earnings growth has certainly been robust, but much of the strength has come from
companies running lean cost structures and wringing as much efficiency as possible out
of their employees and their assets. Though the recession has ended, the economy is
not yet healthy enough to fuel strong sales growth. Companies can only boost profits by
cutting costs and increasing productivity for so long. Therefore, top-line growth will have
to play a larger role going forward than it has over the past 4-6 quarters. Whether or not
economic growth is strong enough to drive revenue increases is unsure, but the current
level of stock prices undoubtedly assumes it is. Any stagnation of the recovery and
concomitant sluggish sales will likely hit stock prices.

Perception: European Debt Crisis Drives Short-Term Volatility, but It's Not a Long-Term
Concern
Reality: Crisis May Be a Harbinger of What's to Come in the U.S. if States, the Feds
Don't Improve Balance Sheets
So far, turmoil in Greece and Ireland has served only as a temporary headwind to U.S.
stocks. In keeping with the investment world's increasingly short-term focus, people
seem more concerned with what fiscal crises in Europe mean for U.S. stocks over the
coming days and months than with what they might mean down the road. I believe that
this interpretation misses the mark. Since the U.S. fiscal situtation is generally
considered to be stronger than that in many European countries, U.S. federal and
municipal debt issuance has been relatively smooth, and interest rates have only risen
modestly. If the U.S. doesn't get serious about its fiscal woes, eventually the crisis will
arrive on American shores. There's no way of telling when this might happen, but the
current level of stock prices seems to imply that it never will.
Here's the problem with that. To fix the federal balance sheet and/or to improve state
and municipal balance sheets, legislators will have to raise taxes and/or cut spending.
Tax hikes and spending cuts both reduce consumer spending. This hurts growth.
There's no way around this. Stocks can certainly continue to rise for some time, but
austerity will be bearish if/when it comes. If it doesn't come, we're in for a much bigger
crisis some time down the road.

Perception: Everywhere You Look, You See Good Companies at Cheap Prices
Reality: It's Hard to Find Genuine Bargains, but There are Intriguing Short Prospects
Everywhere
There is no shortage of stock market commentators who claim that they see bargains
everywhere they look. Perhaps I'm not looking in the right places, but I've been having a
difficult and increasingly impossible time finding good companies at reasonable prices. I
use similar criteria to assess long and short investments, and I find intriguing shorts in
lots of sectors right now. This tells me that valuations are stretched. Certainly they can
become more so before we get a selloff, but every day that stocks rally, they get more
expensive.
I've written on Seeking Alpha about a number of stocks which I regard as expensive
(CRM, OPEN, GMCR), and take my word for it: there are plenty more than these whose
shares I do not want to own at present levels. A few weeks ago, I also mused about the
Facebook-Goldman deal and argued that this valuation is indicative of excessive
investor enthusiasm. Bargains are hard to find, and as valuations go up, so does
positive sentiment. While this is not a prediction of an impending correction or bear
market, it is a message of caution for people who think stocks are cheap right now.
All that said, I always try to consider both sides of any investment issue, and there are
some reasons for optimism. Job growth has shown signs of improvement, and some
economic data have been increasingly (though not uniformly) positive. The Federal
Reserve remains accommodative, and I'm skeptical about whether or not there is
political will for austerity. For these reasons, stocks could continue onward and upward.
That said, I see too many reasons for caution, and investors are turning a blind eye to
these concerns as their complacency rises.’
12 Economic Collapse Scenarios That We Could Potentially See In 2011 What

could cause an economic collapse in 2011? Well, unfortunately there are quite a
few “nightmare scenarios” that could plunge the entire globe into another
massive financial crisis.
The Economic Collapse Jan 20, 2011 ‘What could cause an economic collapse in
2011? Well, unfortunately there are quite a few “nightmare scenarios” that could
plunge the entire globe into another massive financial crisis. The United States,
Japan and most of the nations in Europe are absolutely drowning in debt. The
Federal Reserve continues to play reckless games with the U.S. dollar. The price
of oil is skyrocketing and the global price of food just hit a new record high.
Food riots are already breaking out all over the world. Meanwhile, the rampant
fraud and corruption going on in world financial markets is starting to be exposed
and the whole house of cards could come crashing down at any time. Most
Americans have no idea that a horrific economic collapse could happen at
literally any time. There is no way that all of this debt and all of this financial
corruption is sustainable. At some point we are going to reach a moment of
“total system failure”.
So will it be soon? Let’s hope not. Let’s certainly hope that it does not happen in
2011. Many of us need more time to prepare. Most of our families and friends
need more time to prepare. Once this thing implodes there isn’t going to be an
opportunity to have a “do over”. We simply will not be able to put the toothpaste
back into the tube again.
So we had all better be getting prepared for hard times. The following are 12
economic collapse scenarios that we could potentially see in 2011….
#1 U.S. debt could become a massive crisis at any moment. China is saying all of
the right things at the moment, but many analysts are openly worried about what
could happen if China suddenly decides to start dumping all of the U.S. debt that
they have accumulated. Right now about the only thing keeping U.S. government
finances going is the ability to borrow gigantic amounts of money at extremely
low interest rates. If anything upsets that paradigm, it could potentially have
enormous consequences for the entire world financial system.
#2 Speaking of threats to the global financial system, it turns out that

“quantitative easing 2″ has had the exact opposite effect that Ben Bernanke
planned for it to have. Bernanke insisted that the main goal of QE2 was to lower
interest rates, but instead all it has done is cause interest rates to go up
substantially. If Bernanke this incompetent or is he trying to mess everything up
on purpose?
#3 The debt bubble that the entire global economy is based on could burst at any
time and throw the whole planet into chaos. According to a new report from the
World Economic Forum, the total amount of credit in the world increased from
$57 trillion in 2000 to $109 trillion in 2009. The WEF says that now the world is
going to need another $100 trillion in credit to support projected “economic
growth” over the next decade. So is this how the new “global economy” works?
We just keep doubling the total amount of debt every decade?
#4 As the U.S. government and the Federal Reserve continue to pump massive
amounts of new dollars into the system, the floor could fall out from underneath
the U.S. dollar at any time. The truth is that we are already starting to see
inflation really accelerate and everyone pretty much acknowledges that official
U.S. governments figures for inflation are an absolute joke. According to one
new study, the cost of college tuition has risen 286% over the last 20 years, and
the cost of “hospital, nursing-home and adult-day-care services” rose 269%
during those same two decades. All of this happened during a period of
supposedly “low” inflation. So what are price increases going to look like when
we actually have “high” inflation?
#5 One of the primary drivers of global inflation during 2011 could be the price of
oil. A large number of economists are now projecting that the price of oil could
surge well past $100 dollars a barrel in 2011. If that happens, it is going to put
significant pressure on the price of almost everything else in the entire global
economy. In fact, as I have explained previously, the higher the price of oil goes,
the faster the U.S. economy will decline.
#6 Food inflation is already so bad in some areas of the globe that it is setting off
massive food riots in nations such as Tunisia and Algeria. In fact, there have
been reports of people setting themselves on fire all over the Middle East as a
way to draw attention to how desperate they are. So what is going to happen if
global food prices go up another 10 or 20 percent and food riots spread literally
all over the globe during 2011?
#7 There are persistent rumors that simply will not go away of massive physical
gold and silver shortages. Demand for precious metals has never been higher.
So what is going to happen when many investors begin to absolutely insist on
physical delivery of their precious metals? What is going to happen when the
fact that far, far, far more “paper gold” and “paper silver” has been sold than has
ever actually physically existed in the history of the planet starts to come out?
What would that do to the price of gold and silver?
#8 The U.S. housing industry could plunge the U.S. economy into another
recession at any time. The real estate market is absolutely flooded with homes
and virtually nobody is buying. This massive oversupply of homes means that
the construction of new homes has fallen off a cliff. In 2010, only 703,000 single
family, multi-family and manufactured homes were completed. This was a new
record low, and it was down 17% from the previous all-time record which had just
been set in 2009.
#9 A combination of extreme weather and disease could make this an absolutely

brutal year for U.S. farmers. This winter we have already seen thousands of new
cold weather and snowfall records set across the United States. Now there is
some very disturbing news emerging out of Florida of an “incurable bacteria” that
is ravaging citrus crops all over Florida. Is there a reason why so many bad
things are happening all of a sudden?
#10 The municipal bond crisis could go “supernova” at any time. Already,
investors are bailing out of bonds at a frightening pace. State and local
government debt is now sitting at an all-time high of 22 percent of U.S. GDP.
According to Meredith Whitney, the municipal bond crisis that we are facing is a
gigantic threat to our financial system….
“It has tentacles as wide as anything I’ve seen. I think next to

housing this is the single most important issue in the United States
and certainly the largest threat to the U.S. economy.”
Former Los Angeles mayor Richard Riordan is convinced that things are so bad
that literally 90% of our states and cities could go bankrupt over the next five
years….
#11 Of course on top of everything else, the quadrillion dollar derivatives bubble
could burst at any time. Right now we are watching the greatest financial casino
in the history of the globe spin around and around and around and everyone is
hoping that at some point it doesn’t stop. Today, most money on Wall Street is
not made by investing in good business ideas. Rather, most money on Wall
Street is now made by making the best bets. Unfortunately, at some point the
casino is going to come crashing down and the game will be over.
#12 The biggest wildcard of all is war. The Korean peninsula came closer to war
in 2010 than it had in decades. The Middle East could literally explode at any
time. We live in a world where a single weapon can take out an entire city in an
instant. All it would take is a mid-size war or a couple of weapons of mass
destruction to throw the entire global economy into absolute turmoil.
Once again, let us hope that none of these economic collapse scenarios happens
in 2011.
However, we have got to realize that we can’t keep dodging these bullets forever.
As bad as 2010 was, the truth is that it went about as good as any of us could
have hoped. Things are still pretty stable and times are still pretty good right
now.
But instead of using these times to “party”, we should be using them to prepare.
A really, really vicious economic storm is coming and it is going to be a complete

and total nightmare. Get ready, hold on tight, and say your prayers.’
Poor Recovery: The Problem Is Institutional [ Well it’s true that the problem is
institutional as in pervasively corrupt, incompetent, nonproductive in real
terms relative to their cost / damage (still no pros on the wall street fraud
which is ongoing in terms of the last crisis, the worthless paper marked to
anything, and the current bubble fraud that’s high-frequency computerized
churn-and-earn high-frequency commissioned / sold into, 360 tons of $100
bills disappear in Iraq, etc.. What do they get paid for?) ( Peter Schiff:
Washington a parasite to economy ‘US foreclosures hit record highs in 2010,
but that may not be the worst of it. 2011 may be even worse. Meanwhile, JP
Morgan Chase exceeded market expectations, announcing a 47% rise in
quarterly profits and released details on a $28.1 billion pay and bonus pool.
Peter Schiff, the President of Euro Pacific Capital said Washington and Wall
Street are becoming one force and are sucking the underlying American dry
like a parasite’.); but the problem is structural, as in transfer of jobs,
industries, etc. (among the sources of the huge over-compensation to wall
street, company executives), never to return in any meaningful sense; and
as in the defacto bankruptcy of the nation with insurmountable record debt /
deficits or stated another way, broke. Unlike in the past, once beyond the
propaganda, rhetoric, and smoke and mirrors / obfuscation, there is no
prospective way for america to grow its way out, nor are there funds in real
money with which to do it. Quite simply, america’s broke / bankrupt in every
which way. ] Loundsbury ‘Harold Meyerson, Op Ed Columnist at The
Washington Post, has hit the nail right on the head, in the opinion of GEI.
Meyerson says the debate about whether the recession and poor recovery is
a cyclical problem or a structural problem is misguided. He says the
problem is institutional - - - and is he ever right!
In a column last week, Myerson points out that the devastation of The Great
Recession has fallen disproportionately on the blue collar population, those
without a college degree. And he traces the rolling over of median family income
in this century, not just in the downturn, but since the turn of the century. Even at
the peak, in 2007, median family income was less than in 2000.
What Meyerson doesn't point out is that average incomes have faired better in the
21st century and in all of the past 50 years. In fact, average family income has
risen more than 2.5 times as much and median income over the last 30 years.
Why is this important? Because the more there is a fat tail of ever higher incomes
for a few, the greater the difference between average and median income
becomes.
Myerson says:
The great sociologist William Julius Wilson has long argued that the
key to the unraveling of the lives of the African American poor was
the decline in the number of "marriageable males" as work
disappeared from the inner city. Much the same could now be said of
working-class whites in neighborhoods that may not look like the
ghettos of Cleveland or Detroit but in which productive economic
activity is increasingly hard to find.
This grim new reality has yet to inform our debate over how to come
back from this mega-recession. Those who believe our downturn is
cyclical argue that job-creating public spending can restore us to
prosperity, while those who believe it's structural - that we have too
many carpenters, say, and not enough nurses - believe that we
should leave things be while American workers acquire new skills
and enter different lines of work. But there's a third way to look at
the recession: that it's institutional, that it's the consequence of the
decisions by leading banks and corporations to stop investing in the
job-creating enterprises that were the key to broadly shared
prosperity.
Since Meyerson has chosen income disparity as a cornerstone of his argument,

let's look at how incomes have grown over the last 50 years. These are shown in
the following graph, not adjusted for inflation.
click to enlarge images [chart]
Real median income and average income seem to grow similarly in the 1950s and
1960s, the growth of average income starts to pull away in the mid-1960s and
appears to continue to gain gound for the the next 40+ years. The more average
income deviates from median income the more money is found in the high
income tail on the distribution curve. This is often called a "fat tail", which is very
appropriate in this discussion because that is where the fat cats are. The fat tail
has not gotten so because ten times as many people equaled the incomes of the
former fat cats, but more because a few fat cats have received 10 times the
income. This is exemplified by the often quoted statistic that average CEO
salaries were 40x average worker pay 50 years ago and today are more like 400x.
The change income distribution that seems to be appearing in the above graph
becomes more apparent in the following graph where real income gains are
shown for the last six decades starting with the ten years from 1949 - 1959 (the
1950s) and ending with 1999 - 2009 (the 2000s). [chart]
The 1950s and 60s were real boom years. Starting with the 1970s a lower level of
income growth was established, but even that lower level could not be
maintained in the 2000s.
After the 1950s every decade has seen average real income grow more than the
median. The fat tail has gotten fatter over the past half century in every decade,
without exception. Yes the average did decline in the 2000s, but the median
declined 76% more!
The most dramatic pattern of change is evident when the data is divided into two
halves: 1949 to 1979 and 1979 - 2009. This is done in the following graph: [chart]
For thirty years after World War II the wealth of the country increased in a
balanced manner. The average income containing the greater contribution from
the top earners of the day, grew at a rate very similar to the income growth of the
broader population, represented by the median.
Yes there were "fat cats" and they had significantly larger incomes than the bulk
of the population. And these top incomes grew over those three decades, but at
almost the same rate as the majority of the populace.
Then something happened. From 1979-2009 it appears that the American pie
suddenly got smaller. In the later three decades the real median income growth
was less than 10% of the rate seen from 1949 to 1979. And as the pie got smaller,
the fat cats took a much larger share. The average income grew at a rate 254%
that of the median income. You might say that, as the cow gave less milk, the top
of the economic ladder skimmed more and more cream off the top.
Meyerson identifies the force majuere to be corporate America:
Our multinational companies still invest, of course - just not at home.
A study by the Business Roundtable and the U.S. Council
Foundation found that the share of the profits of U.S.-based
multinationals that came from their foreign affiliates had increased
from 17 percent in 1977 and 27 percent in 1994 to 48.6 percent in
2006. As the companies' revenue from abroad has increased, their
dependence on American consumers has diminished. The
equilibrium among production, wages and purchasing power - the
equilibrium that Henry Ford famously recognized when he upped his
workers' pay to an unheard-of $5 a day in 1913 so they could afford
to buy the cars they made, the equilibrium that became the model for
20th-century American capitalism - has been shattered. Making and
selling their goods abroad, U.S. multinationals can slash their
workforces and reduce their wages at home while retaining their
revenue and increasing their profits. And that's exactly what they've
done.
Meyerson doesn't get into some of the other areas that might be brought to bear
on the current condition of the American economy:
• He doesn't address the fact that the U.S. ranks below some third world
countries in education.
• He doesn't discuss the increasing burden of health care, both because
costs have been running out of control and because an ever increasing
portion of the population is kept from making the contribution they might
have otherwise because of poor health.
• He doesn't discuss the capture of much potential domestic capital by
financial engineers who find it much easier to get rich in a rigged casino
than to make money the old fashioned way.
Part of the problem is that Americans have fallen into the way of the easiest path,
where, either by credit card or by making quick trades, the desires of the moment
are satisfied with no seemingly current cost.
It seems that few want to think about the needs of tomorrow. This is true starting
with the masses who kiss off the idea of working hard in school to prepare for
what they will need 20 years down the road. This is also true of the "capitalist"
who finds that skimming a few percent off each of many deals a year to get quick,
large quarterly returns is much easier than investing and building something that
will will make much larger returns extending over decades and producing things
of real economic utility.
There are a number of things that Meyerson does not address, but if you want to
hit one nail at a time, I think he has picked the baddest nail in the plank. He
finishes his column thusly:
Our economic woes, then, are not simply cyclical or structural. They
are also - chiefly - institutional, the consequence of U.S. corporate
behavior that has plunged us into a downward cycle of
underinvestment, underemployment and under-consumption. Our
solutions must be similarly institutional, requiring, for starters, the
seating of public and worker representatives on corporate boards.
Short of that, there will be no real prospects for reversing America's
downward mobility.
If we were to address all the other issues I mentioned previously and did not
address the institutional problem Meterson has identified, we would not
ultimately solve our economic puzzle.’
20 Shocking New Economic Records That Were Set In 2010 2010 was quite a year,
wasn’t it? 2010 will be remembered for a lot of things, but for those living in the
United States, one of the main things that last year will be remembered for is
economic decline…The Economic Collapse Jan 14, 2011 ‘2010 was quite a year,
economic decline. The number of foreclosure filings set a new record, the
number of home repossessions set a new record, the number of bankruptcies
went up again, the number of Americans that became so discouraged that they
simply quit looking for work reached a new all-time high and the number of
Americans on food stamps kept setting a brand new record every single month.
Meanwhile, U.S. government debt reached record highs, state government debt
reached record highs and local government debt reached record highs. What a
mess! In fact, even many of the “good” economic records that were set during
2010 were indications of underlying economic weakness. For example, the price
of gold set an all-time record during 2010, but one of the primary reasons for the
increase in the price of gold was that the U.S. dollar was rapidly losing value.
Most Americans had been hoping that 2010 would be the beginning of better
times, but unfortunately economic conditions just kept getting worse.
So will things improve in 2011? That would be nice, but at this point there are not
a whole lot of reasons to be optimistic about the economy. The truth is that we
are trapped in a period of long-term economic decline and we are now paying the
price for decades of horrible decisions.
Amazingly, many of our politicians and many in the mainstream media have
declared that “the recession is over” and that the U.S. economy is steadily
improving now.
Well, if anyone tries to tell you that the economy got better in 2010, just show
them the statistics below. That should shut them up for a while.
The following are 20 new economic records that were set during 2010….
#1 An all-time record of 2.87 million U.S. households received a foreclosure filing

in 2010.
#2 The number of homes that were actually repossessed reached the 1 million
mark for the first time ever during 2010.
#3 The price of gold moved above $1400 an ounce for the first time ever during
2010.
#4 According to the American Bankruptcy Institute, approximately 1.53 million

consumer bankruptcy petitions were filed in 2010, which was up 9 percent from
1.41 million in 2009. This was the highest number of personal bankruptcies we
have seen since the U.S. Congress substantially tightened U.S. bankruptcy law
several years ago.
#5 At one point during 2010, the average time needed to find a job in the United
States had risen to an all-time record of 35.2 weeks.
jobs, which is believed to be a new record low.
#7 The number of Americans working part-time jobs “for economic reasons” was
the highest it has been in at least five decades during 2010.
#8 The number of American workers that are so discouraged that they have given
up searching for work reached an all-time high near the end of 2010.
#9 Government spending continues to set new all-time records. In fact, at the

moment the U.S. government is spending approximately 6.85 million dollars every
single minute.
#10 The number of Americans on food stamps surpassed 43 million by the end of
2010. This was a new all-time record, and government officials fully expect the
number of Americans enrolled in the program to continue to increase throughout
2011.
#11 The number of Americans on Medicaid surpassed 50 million for the first time
ever in 2010.
#12 The U.S. Census Bureau originally announced that 43.6 million Americans are
now living in poverty and according to them that was the highest number of
Americans living in poverty that they had ever recorded in 51 years of record-
keeping. But now the Census Bureau says that they miscalculated and that the
real number of poor Americans is actually 47.8 million.
#13 According to the FDIC, 157 banks failed during 2010. That was the highest
number of bank failures that the United States has experienced in any single year
during the past decade.
#14 The Federal Reserve brought in a record $80.9 billion in profits during 2010.
They returned $78.4 billion of that to the U.S. Treasury, but the real story is that
thanks to the Federal Reserve’s continual debasement of our currency, the U.S.
dollar was worth less in 2010 than it ever had been before.
#15 It is projected that the major financial firms on Wall Street will pay out an all-
time record of $144 billion in compensation for 2010.
#16 Americans now owe more than $881 billion on student loans, which is a new
all-time record.
#17 In July, sales of new homes in the United States declined to the lowest level
ever recorded.
#18 According to Zillow, U.S. housing prices have now declined a whopping 26
percent since their peak in June 2006. Amazingly, this is even farther than house
prices fell during the Great Depression. From 1928 to 1933, U.S. housing prices
only fell 25.9 percent.
#19 State and local government debt reached at an all-time record of 22 percent
of U.S. GDP during 2010.
#20 The U.S. national debt has surpassed the 14 trillion dollar mark for the first
time ever and it is being projected that it will soar well past 15 trillion during 2011.
There are some people that have a hard time really grasping what statistics
actually mean. For people like that, often pictures and charts are much more
effective. Well, that is one reason I like to include pictures and graphs in many of
my articles, and below I have posted my favorite chart from this past year. It
shows the growth of the U.S. national debt from 1940 until today. I honestly don’t
know how anyone can look at this chart and still be convinced that our nation is
not headed for a complete financial meltdown….[chart]
14 Eye Opening Statistics Which Reveal Just How Dramatically The U.S.
Economy Has Collapsed Since 2007 Most Americans have become so
accustomed to the “new normal” of continual economic decline that they don’t
even remember how good things were just a few short years ago. ‘The Economic
Collapse Jan 10, 2011
’Most Americans have become so accustomed to the “new normal” of continual

economic decline that they don’t even remember how good things were just a few
short years ago. Back in 2007, unemployment was very low, good jobs were
much easier to get, far fewer Americans were living in poverty or enrolled in
welfare programs and government finances were in much better shape. Of
course most of this prosperity was fueled by massive amounts of debt, but at
least times were better. Unfortunately, things have really deteriorated over the
last several years. Since 2007, unemployment has skyrocketed, foreclosures
have set new all-time records, personal bankruptcies have soared and U.S.
government debt has gotten completely and totally out of control. Poll after poll
has shown that Americans are now far less optimistic about the future than they
were in 2007. It is almost as if the past few years have literally sucked the hope
out of millions upon millions of Americans.
Sadly, our economic situation is continually getting worse. Every month the
United States loses more factories. Every month the United States loses more
jobs. Every month the collective wealth of U.S. citizens continues to decline.
Every month the federal government goes into even more debt. Every month
state and local governments go into even more debt.
Unfortunately, things are going to get even worse in the years ahead. Right now
we look back on 2005, 2006 and 2007 as “good times”, but in a few years we will
look back on 2010 and 2011 as “good times”.
We are in the midst of a long-term economic decline, and the very bad economic
choices that we have been making as a nation for decades are now starting to
really catch up with us.
So as horrible as you may think that things are now, just keep in mind that things
are going to continue to deteriorate in the years ahead.
But for the moment, let us remember how far we have fallen over the past few
years. The following are 14 eye opening statistics which reveal just how
dramatically the U.S. economy has collapsed since 2007….
#1 In November 2007, the official U.S. unemployment rate was just 4.7 percent.
Today, the official U.S. unemployment rate is 9.4 percent.
#2 In November 2007, 18.8% of unemployed Americans had been out of work for
27 weeks or longer. Today that percentage is up to 41.9%.
#3 As 2007 began, there were just over 1 million Americans that had been
unemployed for half a year or longer. Today, there are over 6 million Americans
that have been unemployed for half a year or longer.
#4 Nearly 10 million Americans now receive unemployment insurance, whichis

almost four times as many as were receiving it back in 2007.
#5 More than half of the U.S. labor force (55 percent) has “suffered a spell of
unemployment, a cut in pay, a reduction in hours or have become involuntary
part-time workers” since the “recession” began in December 2007.
#6 According to one analysis, the United States has lost a total of approximately
10.5 million jobs since 2007.
#7 As 2007 began, only 26 million Americans were on food stamps. Today, an all-
time record of 43.2 million Americans are enrolled in the food stamp program.
#8 In 2007, the U.S. government held a total of $725 billion in mortgage debt. As
of the middle of 2010, the U.S. government held a total of $5.148 trillion in
mortgage debt.
#9 In the year prior to the “official” beginning of the most recent recession in
2007, the IRS filed just 684,000 tax liens against U.S. taxpayers. During 2010, the
IRS filed over a million tax liens against U.S. taxpayers.
#10 From the year 2000 through the year 2007, there were 27 bank failures in the
United States. From 2008 through 2010, there were 314 bank failures in the
United States.
#11 According to the U.S. Department of Housing and Urban Development, the
number of U.S. families with children living in homeless sheltersincreased from
131,000 to 170,000 between 2007 and 2009.
#12 In 2007, one poll found that 43 percent of Americans were living “paycheck to
paycheck”. Sadly, according to a survey released very close to the end of 2010,
approximately 55 percent of all Americans are now living paycheck to paycheck.
#13 In 2007, the “official” federal budget deficit was just 161 billion dollars. In
2010, the “official” federal budget deficit was approximately 1.3 trillion dollars.
#14 As 2007 began, the U.S. national debt was just under 8.7 trillion dollars.
Today, the U.S. national debt has just surpassed 14 trillion dollars and it
continues to soar into the stratosphere.
So is there any hope that we can turn all of this around?

Unfortunately, the massive amount of debt that we have piled up as a society
over the last several decades has made that impossible.
If you add up all forms of debt (government debt, business debt, individual debt),
it comes to approximately 360 percent of GDP. It is the biggest debt bubble in the
history of the world.
If the federal government and our state governments stop borrowing and
spending so much money, our economy would collapse. But if they keep
borrowing and spending so much money they will continually make the eventual
economic collapse even worse.
We are in the terminal stages of the most horrific debt spiral the world has ever
seen, and when the debt spiral gets stopped the house of cards is going to finally
come down for good.
So enjoy these times while you still have them. Yes, today is not nearly as
prosperous as 2007 was, but today is most definitely a whole lot better than 2015
or 2020 is going to be.
Sadly, we could have avoided this financial disaster completely if only we had
listened more carefully to those that founded this nation. Once upon a time,
Thomas Jefferson said the following….
I wish it were possible to obtain a single amendment to our

Constitution. I would be willing to depend on that alone for the
reduction of the administration of our government to the genuine
principles of its Constitution; I mean an additional article, taking
from the federal government the power of borrowing.’
Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Then
Ever The financial collapse that so many of us have been anticipating is
seemingly closer then ever. Over the past several weeks, there have been a
host of ominous signs for the U.S. economy.
The Economic Collapse

Dec 17, 2010
The financial collapse that so many of us have been anticipating is seemingly

closer then ever. Over the past several weeks, there have been a host of ominous
signs for the U.S. economy. Yields on U.S. Treasuries have moved up rapidly and
Moody’s is publicly warning that it may have to cut the rating on U.S. government
debt soon. Mortgage rates are also moving up aggressively. The euro and the
U.S. dollar both look incredibly shaky. Jobs continue to be shipped out of the
United States at a blistering pace as our politicians stand by and do nothing.
Confidence in U.S. government debt around the globe continues to decline. State
and local governments that are drowning in debt across the United States are
savagely cutting back on even essential social services and are coming up with
increasingly “creative” ways of getting more money out of all of us. Meanwhile,
tremor after tremor continues to strike the world financial system. So does this
mean that we have almost reached a tipping point? Is the world on the verge of a
major financial collapse?
Let’s hope not, but with each passing week the financial news just seems to get
eve worse. Not only is U.S. government debt spinning wildly toward a breaking
point, but many U.S. states (such as California) are in such horrific financial
condition that they are beginning to resemble banana republics.
But it is not just the United States that is in trouble. Nightmarish debt problems
in Greece, Spain, Portugal, Ireland, Italy, Belgium and several other European
nations threaten to crash the euro at any time. In fact, many economists are now
openly debating which will collapse first – the euro or the U.S. dollar.
Sadly, this is the inevitable result of constructing a global financial system on

debt. All debt bubbles eventually collapse. Currently we are living in the biggest
debt bubble in the history of the world, and when this one bursts it is going to be
a disaster of truly historic proportions.
So will we reach a tipping point soon? Well, the following are 25 signs that the
financial collapse is rapidly getting closer….
#1 The official U.S. unemployment rate has not been beneath 9 percent since
April 2009.
#2 According to the U.S. Census Bureau, there are currently 6.3 million vacant
homes in the United States that are either for sale or for rent.
#3 It is being projected that the U.S. trade deficit with China could hit 270 billion
dollars for the entire year of 2010.
#4 Back in 2000, 7.2 percent of blue collar workers were either unemployed or
underemployed. Today that figure is up to 19.5 percent.
#5 The Chinese government has accumulated approximately $2.65 trillion in total

foreign exchange reserves. They have drained this wealth from the economies of
other nations (such as the United States) and instead of reinvesting all of it they
are just sitting on much of it. This is creating tremendous imbalances in the
global economy.
#6 Since the year 2000, we have lost 10% of our middle class jobs. In the year
2000 there were approximately 72 million middle class jobs in the United States
but today there are only about 65 million middle class jobs.
#7 The United States now employs about the same number of people in
manufacturing as it did back in 1940. Considering the fact that we had 132 million
people living in this country in 1940 and that we have well over 300 million people
living in this country today, that is a very sobering statistic.
#8 According to CoreLogic, U.S. housing prices have now declined for three
months in a row.
#9 The average rate on a 30 year fixed rate mortgage soared 11 basis points just
this past week. As mortgage rates continue to push higher it is going to make it
even more difficult for American families to afford homes.
#10 22.5 percent of all residential mortgages in the United States were in negative
equity as of the end of the third quarter of 2010.
#11 The U.S. monetary base has more than doubled since the beginning of the
most recent recession.
#12 U.S. Treasury yields have been rising steadily during the 4th quarter of 2010
and recently hit a six-month high.
#13 Incoming governor Jerry Brown is scrambling to find $29 billion more to cut
from the California state budget. The following quote from Brown about the
desperate condition of California state finances is not going to do much to inspire
confidence in California’s financial situation around the globe….
“We’ve been living in fantasy land. It is much worse than I thought.

I’m shocked.”
#14 24.3 percent of the residents of El Centro, California are currently

unemployed.
#15 The average home in Merced, California has declined in value by 63 percent
over the past four years.
#16 Detroit Mayor Dave Bing has come up with a new way to save money. He
wants to cut 20 percent of Detroit off from essential social services such as road
repairs, police patrols, functioning street lights and garbage collection.
#17 The second most dangerous city in the United States – Camden, New Jersey
– is about to lay off about half its police in a desperate attempt to save money.
#18 In 2010, 55 percent of Americans between the ages of 60 and 64 were in the
labor market. Ten years ago, that number was just 47 percent. More older
Americans than ever find that they have to keep working just to survive.
#20 The U.S. government budget deficit increased to a whopping $150.4 billion
last month, which represented the biggest November budget deficit on record.
#21 The U.S. government is somehow going to have to roll over existing debt and
finance new debt that is equivalent to 27.8 percent of GDP in 2011.
#22 The United States had been the leading consumer of energy on the globe for
about 100 years, but this past summer China took over the number one spot.
#23 According to an absolutely stunning new poll, 40 percent of all U.S. doctors
plan to bail out of the profession over the next three years.
#25 All over the United States, local governments have begun instituting “police
response fees”. For example, New York Mayor Michael Bloomberg has come up
with a plan under which a fee of $365 would be charged if police are called to
respond to an automobile accident where no injuries are involved. If there are
injuries as a result of the crash that is going to cost extra.
16 Nightmarish Economic Trends To Watch Carefully In 2011 The American

Dream Dec 15, 2010 ‘If you only watch the “economic pundits” on television,
it can be very confusing to figure out exactly what is happening with the U.S.
economy. One pundit will pull out a couple statistics that got a little bit
better over the past month and claim that we have entered a time of solid
recovery. Another pundit will pull out a couple statistics that got a little
worse over the past month and claim that we are headed for trouble. So
what is the truth? Well, if you really want to get a clear idea of what is really
going on you have to look at the long-term trends. There are some
economic trends which just keep getting worse year after year after year,
and it is those trends that tell the real story of the decline of our economic
system.
As you examine the long-term trends, you quickly come to realize that the U.S. is
trapped in an endless spiral of debt, the middle class is being wiped out, the U.S.
dollar is being destroyed and America is rapidly becoming a post-industrial
wasteland.
Posted below are 16 nightmarish economic trends to watch carefully in 2011. It is

becoming exceedingly apparent that unless something is done rapidly we are
heading for an economic collapse of unprecedented magnitude….
#1 Do you want to see something scary? Just check out the chart below. Since
the beginning of the economic downturn, the U.S. monetary base has more than
doubled. But don’t worry – Federal Reserve Chairman Ben Bernanke has
promised us that this could never cause inflation. In fact, Bernanke says that we
need to inject even more dollars into the economy. So if you are alarmed by the
chart below, you are just being irrational according to Bernanke….
[chart]
#2 Thousands of our factories, millions of our jobs and hundreds of billions of

dollars of our national wealth continue to be shipped overseas. In 1985, the U.S.
trade deficit with China was 6 million dollars for the entire year. In the month
of August alone, the U.S. trade deficit with China was over 28 billion dollars.
Nobel economist Robert W. Fogel of the University of Chicago is projecting that
the Chinese economy will be three times larger than the U.S. economy by the year
2040 if current trends continue.
#3 The United States is rapidly becoming a post-industrial wasteland. Back in

1959, manufacturing represented 28 percent of all U.S. economic output. In 2008,
it represented only 11.5 percent and it continues to fall. Sadly, the truth is that
America is being deindustrialized. As of the end of 2009, less than 12 million
Americans worked in manufacturing. The last time that less than 12 million
Americans were employed in manufacturing was in 1941.
#4 The number of Americans that have been out of work for an extended period of
time has absolutely exploded over the last few years. As 2007 began, there were
just over 1 million Americans that had been unemployed for half a year or longer.
Today, there are over 6 million Americans that have been unemployed for half a
year or longer.
#5 The middle class continues to be squeezed out of existence. According to a

poll taken in 2009, 61 percent of Americans ”always or usually” live paycheck to
paycheck. That was up substantially from 49 percent in 2008 and 43 percent in
2007.
#6 The number of Americans living in poverty is absolutely skyrocketing. 42.9

million Americans are now on food stamps, and one out of every six Americans is
now enrolled in at least one anti-poverty program run by the federal government.
Unfortunately, many of those that have been hardest hit by this economic
downturn have been children. According to one new study, approximately 21
percent of all children in the United States are living below the poverty line in
2010 - the highest rate in 20 years.
#7 Many American families have been pushed beyond the breaking point during
this economic downturn. Over 1.4 million Americans filed for personal
bankruptcy in 2009, which represented a 32 percent increase over 2008. The final
number for 2010 is expected to be even higher.
#8 The U.S. real estate market continues to stagnate. During the third quarter of
2010, 67 percent of mortgages in Nevada were “underwater”, 49 percent of
mortgages in Arizona were “underwater” and 46 percent of mortgages in Florida
were “underwater”. So what happens if home prices go down even more?
#9 More elderly Americans than ever are being forced to put off retirement and
continue working. In 2010, 55 percent of Americans between the ages of 60 and
64 were in the labor market. Ten years ago, that number was just 47 percent.
Unfortunately, it looks like this problem will only get worse in the years ahead. In
America today, approximately half of all workers have less than $2000 saved up
for retirement.
#10 In the United States today, there are simply far too many retirees and not
nearly enough workers to support them. Back in 1950 each retiree’s Social
Security benefit was paid for by 16 workers. Today, each retiree’s Social Security
benefit is paid for by approximately 3.3 workers. By 2025 it is projected that there
will be approximately two workers for each retiree.
#11 Financial assets continue to become concentrated in fewer and fewer hands.
For example, the “big four” U.S. banks (Citigroup, JPMorgan Chase, Bank of
America and Wells Fargo) had approximately 22 percent of all deposits in FDIC-
insured institutions back in 2000. As of the middle of 2009 that figure was up
to 39 percent.
#12 The Federal Reserve has been destroying the value of the U.S. dollar for
decades. Since the Federal Reserve was created in 1913, the U.S. dollar has lost
over 95 percent of its purchasing power. An item that cost $20.00 in 1970 would
cost you $112.35 today. An item that cost $20.00 in 1913 would cost you $440.33
today.
#13 Commodity prices continue to soar into the stratosphere. Ten years ago, the
price of a barrel of oil hovered around 20 to 30 dollars most of the time. Today,
the price of oil is rapidly closing in on 100 dollars a barrel and there are now fears
that it could soon go much higher than that.
#14 Federal government spending is completely and totally out of control. The
U.S. government budget deficit increased to a whopping $150.4 billion last month,
which represented the biggest November deficit on record. But our politicians
can’t seem to break their addiction to debt. In fact, Democrats are trying to ram
through a 1,924 page, 1.1 trillion dollar spending bill in the final days of the lame-
duck session of Congress before the Republicans take control of the House of
Representatives next year.
#15 The U.S. national debt is rapidly closing in on 14 trillion dollars. It is more
than 13 times larger than it was just 30 short years ago. According to an
official U.S. Treasury Department report to Congress, the U.S. national debt is
projected to climb to an estimated $19.6 trillion by 2015.
#16 Unfortunately, the official government numbers grossly understate the

horrific nature of the crisis we are facing. John Williams of Shadow Government
Statistics has calculated that if the federal government would have used GAAP
accounting standards to measure the federal budget deficit for 2009, it would
have been approximately 8.8 trillion dollars. Not only that, but John Williams now
says that U.S. government debt is so wildly out of control that it is mathematically
impossible for us to “grow” our way out of it….
The government’s finances not only are out of control, but the actual
deficit is not containable. Put into perspective, if the government
were to raise taxes so as to seize 100% of all wages, salaries and
corporate profits, it still would be showing an annual deficit using
GAAP accounting on a consistent basis. In like manner, given
current revenues, if it stopped spending every penny (including
defense and homeland security) other than for Social Security and
Medicare obligations, the government still would be showing an
annual deficit. Further, the U.S. has no potential way to grow out of
this shortfall.
The more one examines the U.S. economic situation, the more depressing it
becomes. The U.S. financial system is trapped inside a horrific debt spiral and
we are headed straight for economic oblivion.
If our leaders attempt to interrupt the debt spiral it will plunge our economy into a
depression. If our leaders attempt to keep the debt spiral going for several more
years it will just make the eventual crash even worse. Either way, we are headed
for a financial implosion that will be truly historic.
The debt-fueled good times that we have been enjoying for the last several
decades are rapidly coming to an end. Unfortunately for the tens of millions of
Americans that are already suffering, our economic problems are only going to
get worse in the years ahead.’
Jobless Recovery?: 25 Unemployment Statistics That Are Almost Too Depressing

To Read ‘… Unemployment is up again! That’s right – even though Wall
Street is swimming in cash and the Obama administration is declaring that
“the recession is over”, the U.S. unemployment rate has gone even higher.
So are you enjoying the jobless recovery? Economic Collapse Blog Dec 4,
2010 ‘Guess what? Unemployment is up again! That’s right – even though
Wall Street is swimming in cash and the Obama administration is declaring
that “the recession is over”, the U.S. unemployment rate has gone even
higher ... Times are really, really tough and unfortunately the long-term
outlook is very bleak. We should have compassion on those who are out of
work right now, because soon many of us may join them.
The following are 25 unemployment statistics that are almost too depressing to
read….
#1 According to the Bureau of Labor Statistics, the U.S. unemployment rate for
November was 9.8 percent. This was up from 9.6 percent in October, and it
continues a trend of depressingly high unemployment rates. The official
unemployment number has been at 9.5 percent or higher for well over a year at
this point.
#2 In November 2006, the “official” U.S. unemployment rate was just 4.5 percent.
#3 Most economists had been expecting the U.S. economy to add about 150,000
jobs in November. Instead, it only added 39,000.
#4 In the United States today, there are over 15 million people who are “officially”
considered to be unemployed for statistical purposes. But everyone knows that
the “real” number is even much larger than that.
#6 The number of “persons not in the labor force” in the United States recently
set another new all-time record.
#7 It now takes the average unemployed American over 33 weeks to find a job.
#8 When you throw in “discouraged workers” and “underemployed workers”, the

“real” unemployment rate in the state of California is actually about 22 percent.
#9 In America today there are not nearly enough jobs for everyone. In fact, there
are now approximately 5 unemployed Americans for every single job opening.
#10 According to The New York Times, Americans that have been unemployed for
five weeks or less are three times more likely to find a new job in the coming
month than Americans that have been unemployed for over a year.
#11 The U.S. economy would need to create 235,120 new jobs a month to get the
unemployment rate down to pre-recession levels by 2016. Does anyone think
that there is even a prayer that is going to happen?
#12 There are 9 million Americans that are working part-time for “economic
reasons”. In other words, those Americans would gladly take full-time jobs if
they could get them, but all they have been able to find is part-time work.
#13 In 2009, total wages, median wages, and average wages all declined in the
United States.
#14 As of the end of 2009, less than 12 million Americans worked in

manufacturing. The last time that less than 12 million Americans were employed
in manufacturing was in 1941.
#15 The United States has lost at least 7.5 million jobs since the recession began.
#16 Today, only about 40 percent of Ford Motor Company’s 178,000 workers are
employed in North America, and a big percentage of those jobs are in Canada and
Mexico.
#17 In 1959, manufacturing represented 28 percent of U.S. economic output. In

2008, it represented 11.5 percent.
#18 Earlier this year, one poll found that 28% of all American households had at
least one member that was looking for a full-time job.
#19 In the United States today, over 18,000 parking lot attendants have college
degrees.
#21 As the employment situation continues to stagnate, millions of American

families have decided to cut back on things such as insurance coverage. For
example, the percentage of American households that have life insurance
coverage is at its lowest level in 50 years.
#22 Unless Congress acts, and there is no indication that is going to happen,
approximately 2 million Americans will stop receiving unemployment checks over
the next couple of months.
#23 A poll that was released by the Pew Research Center back in June discovered
that an astounding 55 percent of the U.S. labor force has experienced either
unemployment, a pay decrease, a reduction in hours or an involuntary move to
part-time work since the economic downturn began.
#24 According to Richard McCormack, the United States has lost over 42,000
factories (and counting) since 2001.
#25 In the United States today, 317,000 waiters and waitresses have college
degrees.
But this is what we get for creating the biggest debt bubble in the history of the
world. For decades we have been digging a deeper hole for ourselves by going
into increasingly larger amounts of debt. In America today, our entire economy is
based on debt. Even our money is debt. We were fools if we ever thought this
could go on forever. Just think about it. Have you ever gone out and run up a
bunch of debt? It can be a lot of fun sitting behind the wheel of a new car,
running your credit cards up to the limit and buying a beautiful big house that
you cannot afford. But in the end what happens? It always catches up with you.
Well, our collective debt is starting to catch up with us. There is a sea of red ink
on every level of American society. It is only a matter of time before it destroys
our economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT. THINGS
ARE GOING TO GET A WHOLE LOT WORSE. A HORRIFIC ECONOMIC
COLLAPSE IS COMING, AND IT IS GOING TO BE VERY, VERY PAINFUL.’
Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE
BROKE!" 11-25-10 ‘The U.S. economy "is a complete disaster," Howard
Davidowitz declared here in July, the most recent in a string of dire
predictions from Tech Ticker's most entertaining guest.On the eve of
Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to
throw in the towel given recent signs of economic revival. Are you kidding
me? "Here are the numbers...we're broke," Davidowitz declares, noting the
U.S. government goes $5 billion deeper into debt every day and is facing $1
trillion-plus annual deficits for the next decade. "In other words, we're
bankrupt."As with the economy, Davidowitz is unwaveringly consistent in
his views on President Obama, calling him "deranged, dysfunctional and
discredited."Results of the midterm election show "the people of this
country think we are in a catastrophe," he says. "I'm with them."Check the
accompanying video for more of Howard's unfettered opinions and stay
tuned for additional clips from this interview. And...Happy Thanksgiving!
Aaron Task is the host of Tech Ticker. You can follow him on Twitter at
@atask or email him at altask@yahoo.com’
17 Things Worrying Investors Lloyd's Wall of Worry
Worry Count: 17
CHINA: 1,330,044,605 people can’t be wrong.
The PIIGS: Fasten your seatbelts. It’s gonna be a long, bumpy, expensive, weird,
(insert your own adjective here) freak show of a ride.
CALIFORNIA AND THE OTHER 49 STATES: Not yet as dire as “The PIIGS”. Might I
suggest the classier moniker of “The Prosciuttos” for the American basket-case
states?
QE II: Gobble?
U.S. ECONOMY: The “Punky Brewster” of the global economic landscape.
UNEMPLOYMENT: Only thing worse than losing your job, losing your
unemployment check. At least there’s the holiday season to cheer everyone up
(read: heavy sarcasm).
TAXES: Praying to the Financial Market Gods that we don’t have another TARP-
like vote fiasco.
OBAMA ADMINISTRATION PART II: Still two years before the Pres. election and
the peanut gallery is already pleading for a Hail Mary Pass to get them back in the
game.
HFT: Instead of beating up these liquidity supplying traders, let’s honor them with
their very own stock exchange. But wait -- with no retail saps to pick-off they will
never get that Day 1 opening bell tick. Perfect.
XMAS 2010: As my professor friend Nick says, “Nowadays Americans are dining
off of two menus – The Million Dollar and the $0.99 Cent.” And both are pissed
about it.
CURRENCIES: Poor Mr. Greenback. Does someone need a hug?
HOUSING CRISIS: Price Stabilization – Are we there yet? Just a little bit more. Are
we there yet? Just a little bit more. Are we there yet? Just a little bit more….
INFLATION/DEFLATION: Fed Chief Ben B. comes out swinging from his heels in
defense of inflation promotion. Don’t punch yourself out as this one is likely to go
the distance.
COMMODITIES: Corrected but still sky high; fortunately these prices are only
affecting core, basic, life-sustaining necessities and sparing our electronic
gadgets and plus-sized SUVs. Whew!
INSIDER TRADING: Another black eye for Hedge Funds. I estimate that makes
black eye number 6,597.
INTEREST RATES: South Korea and China slowly turning up the dial to “11”. On
the other hand the U.S. has removed the dial altogether. This never ends well….
NORTH KOREA: Here we go again. (and now Egypt, etc.)
Consumer confidence down, LiveLeak.com - Loonie closes above U.S. dollar …

dollar for first time closes below parity on Canadian loonie … hey, hey, hey …
'Huge' stock decline — but not yet MarketWatch - Brimelow ‘Commentary:
Adens … ‘mega trend’ looks grim … The Adens expect a hyperinflationary
collapse … ‘ Oh come on! Manipulated dollar decline with inflated earnings, stock
prices thereby, etc., … we’ve seen this all before … the last few crashes …
Jobless rate jumps to 9.8% as hiring slows (Washington Post) [ The reality is not
a mystery! The nation’s been thrown under the bus for the greater good (wealth)
of the very few (frauds on wall street, etc.); wall street giving out record bonuses
from their accomplished fraud (with no-recession b.s. bernanke help) of $144
BILLION: Come on! This is gettin’ even more downright ridiculous (if that’s even
possible)! Pending home foreclosure / distress sales up, oil prices (and oil
stocks) up, debased dollar down, plus a little familiar ‘better than expected’
thrown in along with prospects of a ‘no-recession bernanke’ market-frothing bull
session on 60 minutes and, voila, suckers’ rally into the close to keep the
suckers suckered! What’s good for the frauds on wall street is bad for just about
everyone else which includes the vast majority of people and businesses,
domestically and globally, as current dollar manipulation / debasement ultimately
results in higher costs and loss of purchasing power (ie., oil, etc.). Clearly, this is
one of those fraudulent wealth transfers to the frauds on wall street et als which
will ultimately be paid for by those who least are in a position to afford it,
courtesy of the ever more worthless Weimar dollar, etc., inflating earnings, eps,
lowering p/e multiples, etc., see infra. This is an especially great time to sell / take
profits while you can since there's much worse to come! Previous: Rosy
numbers on consumer sentiment, unemployment (far better than private
forecasts) from the government prior to the holiday so-called ‘shop till you drop’?
How can anyone believe anything they say? Najerian interviewed by Motek
chimes in with the reason for good retail cheer; viz., people have stopped paying
their mortgages and are using the funds to purchase retail goods; while
Davidowitz adds that with record numbers of americans on food stamps, real
unemployment at 17+, and wall street giving out record bonuses from their
accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION …
the high end stores / jewelers will do well … daaaaah! And, with insiders and wall
street frauds selling into the bubble as preceded last crash, this is an especially
great opportunity to sell / take profits! Suckers’ rally on light volume, full moon,
and government complicity (false data / reports) to keep suckers suckered (easy
for the wall street frauds to do with just a mouse click / push of the button – and,
they know all those technical trade lines that are easy to program in this current
phase of the scam/fraud with the debased dollar). Keep in mind, the totally
mindless blather from the ‘cottage industries’ of and fraudulent wall street itself
in talking up lower P/E multiples when the same is a direct result of the
debasement of the dollar and the consequent manipulation / translation (not real,
see Davis, infra) which preceded the financial crisis / last crash. Unemployment,
trade, deficit, etc., numbers continue decidedly worse than expected along with
other negative data (and in the ‘wrong direction’, that spin accorded ‘down but
not as bad as before’ b*** s*** ) yet the market has rallied like no tomorrow with
used home foreclosure / distressed sales, though abated owing to
‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo
lemmings of Europe have jumped on the fraudulent defacto bankrupt american
crazy train propelled to the precipice also as if no tomorrow. This is about
keeping the suckers sucked in with the help of a market-frothing pre-election
debased dollar for favorable currency translation and paper (but not real when
measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a
bubble as in the last crisis to facilitate the churn-and-earn, particularly with
computerized (and high frequency) trades and which commissions they’ll get
again on the way down. There is nothing to support these overbought stock
prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even
wall street shill, the senile Buffett is saying we’re still in a recession (depression)
[ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that
10% is the E that gets divided from the P and gives us a much better
price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’
The bull market that never was / were beyond wall street b.s. when measured in
gold ] This is a great opportunity to sell / take profits (these lower dollar,
hyperinflationary currency manipulations / translations to froth paper stocks will
end quite badly as in last crash)! This is a global depression. This is a secular
bear market in a global depression. The past up moves were manipulated bull
(s***) cycles (at best) in a secular bear market. This has been a typically
manipulated bubble as has preceded the prior crashes with great regularity that
the wall street frauds and insiders commission and sell into. This is a typical wall
street ‘programmed computerized high-frequency churn and earn pass the hot
potato scam / fraud as in prior crashes ( widely reported, high-frequency trading
routinely accounts for more than 50% of daily U.S. equity trading volume and
regularly approaches 70%. )’. This national decline, economic and otherwise, will
not end until justice is served and the wall street frauds et als are criminally
prosecuted, jailed, fined, and disgorgement imposed.The Stock Market's Long
Decline Has Begun Smith ]
Go to following pages for above links:

http://www.albertpeia.com/currentopics2ndqtr10108.htm
http://www.albertpeia.com
http://www.albertpeia.com/alresume.htm
http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm
http://www.scribd.com/alpeia
You may post a comment on my blog on any topic:

http://alpeiablog.blogspot.com
National / World
Bush nixes Denver visit, citing invite to Assange [ The best thing that’s happened
to Denver for quite some time; after all, it’s doubtful that war criminals have
suddenly become fashionable, particularly dumb, burnt out morons as dumbya
bush. ](AP)
Infowars.com Takes 1st Place in Alternative News Rating Infowars.com | Alex

Jones’ other flagship website, Prison Planet.com, came in the number eight
spot on the list.
New Google Algorithm is Live: News Aggregators Will Be Punished Eric Blair &
Michael Edwards | We can only conclude that they have begun to wage war
on alternative news sites.
Neocon Analysts Push for Invasion of Libya Kurt Nimmo | Obama and Secretary of
State Clinton are busy building the required attack consensus.
Glenn Beck’s Secret TheAlexJonesChannel | The truth Beck doesn’t want you to
know.
Bankster Economist Heralds Third World Hellholes Kurt Nimmo | Mega-bank

Citigroup has trotted out its prime economist to send the message.
Rumsfeld doesn’t have the answers (video) Infowars | Rumsfeld couldn’t answer
Mancow’s question about WTC 7 but he also couldn’t give an answer on the Opie
and Anthony show.
US military ‘fully involved’ in talks on Libya options Agence France-Presse | “The

military is fully involved in these discussions.”
Democrat Urges Union Protesters to Get “Bloody” Politico | Political observers

have been the lookout for potentially incendiary rhetoric in the wake of the
shooting in Tucson.
Neocon Analysts Push for Invasion of Libya CNN reports the Pentagon and NATO
are ready to send troops into Libya under the cover of humanitarian
assistance. CNN underscores the situation by stating that reports say
Gaddafi will fight to the end and will seek martyrdom.
Libyan rebels say control oil fields, honour deals Rebels in eastern Libya said on
Friday they now controlled most of the oil fields east of the town of Ras
Lanuf, and said they would honour oil deals as long as they were in the
interest of the people.
Bankster Economist Heralds Third World Hellholes The banksters are making it
known. You’re going to be a pauper. The mega-bank Citigroup has trotted
out its prime economist to send the message.
Madison Mayor, Police Chief Demand Explanation Over Walker Suggestion To

Infiltrate Wisconsin Protests The Mayor and the police chief of Madison,
Wisconsin have both asked Governor Scott Walker to explain comments he
made indicating that he had considered employing “troublemakers” to
infiltrate and discredit the Wisconsin protests.
Sheen On Obama: “A Coward In a Cheap Suit” [ I think Sheen to be too gentle in

his criticism of wobama. Wobama’s far worse than just a ‘coward in a cheap
suit’. Indeed, Wobama’s a total fraud having been elected under false
pretenses; viz., his total, unequivocal, and unfulfilled b*** s*** (those
campaign promises) ! Moreover, there has been some persuasive
documentation questioning wobama’s citizenship / birthplace placing his
eligibility to hold the office of president in question. ] Amidst the
controversy of his wild interview on the Alex Jones Show yesterday, actor
Charlie Sheen wasted little time in confronting President Barack Obama on
his failure to answer Sheen’s twenty questions concerning 9/11, calling
Obama, “a coward in a cheap suit.” Globalist Shill Barack Obama Asks
Business Leaders For Job Creation Ideas Even As He Ships More Of Our
Jobs Overseas As Part Of The New One World Economy The other day,
Barack Obama summoned a group of business and labor leaders to the
White House and “challenged” them to come up with some great ideas for
creating more jobs inside the United States.
Trends Journal Predicted Global Anti-Gov’t Protests: What’s Next? It is a matter

of record! The spate of seething, youth-inspired Middle East uprisings that
are toppling governments, reshaping the geopolitical landscape and roiling
world markets blindsided the world’s intelligence community.
Drudgereport: Gaddafi militia open fire on protesters...

UK paying 'bribes' to free trapped citizens...
Gaddafi offers $400 per family as rebels close in...
'Dance, sing and get ready'...
WILL NATO INTERVENE?
American Ferry From Libya Finally Arrives in Malta...
USA WILL DROP TO WORLD'S '3RD LARGEST ECONOMY'...
OBAMA GIVEN 'IMPEACHMENT' WARNING...
Obama signs temporary extension of Patriot Act... [ ‘Wobama the b’ (for b***
s***) ] ...RAILED AGAINST DURING CAMPAIGN
OH NO, HUFFPO: GOOGLE ALGORITHM CHANGE HITS 12% OF SEARCH
RESULTS...
Bush Nixes Denver Visit, Citing Invite To Assange...
GADDAFI SHOT?
Libyan uprising closes round Tripoli...
Crude breaches $119 in frantic trading...
CA Gas Station: $4.51 Gallon...
Feds: Food prices set to jump 3.5%...
'Extreme'...
Swiss franc touches record peak against dollar...
California's $800K city manager leaves court on gurney… [California’s extreme in
this regard as I noted to a college instructor on coming out here, but aren’t they
all overpaid, state and federal; indeed, these career gov’t ees have made over-
priced gov’t jobs career goals of themselves which even three decades ago was
unheard of other than as a sacrifice of earning power- definitely part of the
problem – the overpaid, overpriced, overvalued bureaucrats. ] ...
$100.00
HIGHEST SINCE 2008
Saudi's $36 billion bid to beat unrest...
King offers financial package as opposition calls 'day of rage'...
Nervous China puts security apparatus into overdrive...
Gaddafi loses more Libyan cities...
FORCES DEFY ORDERS...
WH: Obama's 9-Day Silence Due To 'Scheduling Issue'...
Gaddafi relatives fleeing Libya?
State Dept tries to evacuate Americans by boat...
Turkey launches biggest ever evacuation...
OIL PRICE JUMPS 8.5% IN A DAY
Big Stock Sell Off...
Home Prices Hit Post-Bust Lows in Major Cities...
$4 Gasoline? Yes in California...
Highest Gas Prices in February Since 1990...
Iranian warships sail through Suez Canal for first time since 1979...
REPORT: Gaddafi orders sabotage of oil facilities...
Defies revolt with tanks, planes...
In rambling speech, blames 'tyranny of US,' free drugs for youth...
VIDEO: 'I Will Be A Martyr At The End' …(sounds more like an american hero
every day; a martyr for himself!) ...
WH: Nothing to say on Libya...
MUSLIM BROS: KILL GADDAFI...
Intelligence agency 'jamming' TV signals...
Witnesses report bodies in streets...
Oil industry worries unrest could spread...
Russia blames GOOGLE for stirring unrest...
Medvedev sees 'fires for decades' in Arab world...
GADDAFI FLEES TRIPOLI
UK Foreign Sec: Gaddafi headed to Venezuela...
Chavez gov't denies...
Muslim leaders order followers to rebel...
Tribe threatens to cut oil exports...
REPORT: Military jets attack protesters in Tripoli...
Two pilots refuse, fly to Malta, defect...
Oil companies move staff...
U.S. military chief visits Gulf to urge restraint...
Khamenei: America must be removed from Islamic world...
ON THE BRINK!
Qaddafi's son warns of civil war...
Tribe threatens to cut oil exports...
Unrest in Iran, Algeria, Yemen, Morocco, China [and Wisconsin]...
U.S. military chief visits Gulf, to urge restraint...
Michelle Obama, Daughters Hit the Slopes on Ski Vacation ...
Vail...
Bidens vacation on Fla Keys...
FLASHBACK: Obama on tough economy: 'You might put off a vacation'...
'Everyone must sacrifice'...
RASMUSSEN: OBAMA APPROVAL SLIPS BACK TO 44%...
Gov't shutdown threat looms over budget fight...
Geithner Criticizes Spending Cuts...
SANTELLI: BUDGET CRISIS IS NEXT 9/11...
Gas prices skyrocket; up 55 cents from year ago...
Oil prices surge; Brent crude hits 2 1/2-year high...
GALLUP: Number of Solidly Democratic States Cut in Half From '08 to '10...
American Held in Pakistan Worked for CIA...
Egypt's activists skeptical about army intentions...
...ask West to guarantee reform
Wounded Iraq veteran jeered for speaking in Columbia University...
Sen. John Kerry attacked by anti-war protesters...
Reporter, camerawoman attacked by black mob... in California
WISC UNIONS OFFER CONCESSIONS
Gov. Walker Says No...
Dem Sen: We'll Stay Away For Weeks...
Court Rejects Madison School Effort to Get 'Sick' Teachers Back to Work...
Fake Doctor's Notes Being Handed Out at Union Rally...
VIDEO: 'Everybody is sick -- of Scott Walker'...
Thousands Pack Capitol Grounds...
Libya: Snipers shoot mourners, killing 15...
REPORT: 120 dead...
U.S. Warship Tracking Yacht Hijacked by Somali Pirates... [ I realize there are ‘laws of
the sea’ / codified bodies of law within that broad yet very specific category called ‘maritime law’,
none of which I know nor care to know (I’ll content myself to knowing and seeing to the
enforcement of american law as pertains to me; viz., RICO
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm . I do
know that these somali pirates need killin’ and I further believe that open season on them
including using their boats in the water for target practice makes sense and certainly is morally
justified. I’m tired of hearing about those little weasels … you know, ‘the skinnies’. ]
Some now question U.S. deal that brought Gaddafi back into diplomatic fold
(Washington Post) [ Oh, come on! At this point in pervasively corrupt, defacto
bankrupt america’s intractable decline, naivity becomes no one! …Money, oil,
arms change hands and no one’s the wiser … and those few are again
substantially richer … it’s the fatally tragic ‘american tale’… Arms deals still made
amid Middle East crackdowns (Washington Post) You bet your bippy … a raison
d’etre, so to speak. ]ABU DHABI, UNITED ARAB EMIRATES - As Libya's
Moammar Gaddafi ordered attacks on his own people this week, thousands of
arms sellers from the United States and other countries hawked their aircraft, riot
gear and rifles to Middle Eastern buyers at the Persian Gulf's preeminent arms
show.
Julian Assange must be extradited to Sweden (Washington Post) [ Julian

Assange to be extradited to Sweden Infowars.com [ No surprise here. As I’ve
previously written, I’m against the censorship since one always, in the final
analysis, must discern truth from falsehood, information from disinformation,
reality from propaganda. In truth, I found it somewhat shocking and more than
surprising that of all places ‘to escape to’, Assange chose Orwellian england,
puppet to the u.s. and guarantor of servility to u.s./zionist interests, such is their
own desperate circumstances. What was he thinking? ] WikiLeaks founder
Julian Assange is to be extradited to Sweden to face allegations of rape and
sexual assault. Assange will appeal, his legal team confirmed. If this is
unsuccessful, he will be extradited to Sweden in 10 days. ] LONDON - Britain will
honor Sweden's request to extradite WikiLeaks founder Julian Assange to face
sex-crime allegations, a British judge ruled Thursday.
Oil prices on the rise (Washington Post) [ And except when and for fraudulent /
false / manipulated data, everything else down, dirty, and dismal: AP Business
Highlights: February 24, 2011, ‘New-home sales in January drop 12.6 pct
WASHINGTON (AP) -- Sales of new homes fell significantly in January, a dismal
sign after the worst year for that sector in nearly a half-century.New-home sales
dropped to a seasonally adjusted rate of 284,000 homes last month, the
Commerce Department said Thursday. That's down from 325,000 in December
and less than half the 600,000-a-year pace that economists view as healthy…’
(Washington Post) New-home sales fell more than forecast / FHFA: Home prices
fell in fourth quarter Pro-government forces, rebels engage in battles for
territory (Washington Post) [ The big story here, lost on mainstream media, was
the manipulated stock / oil price fraud based upon false rumor of daffy gaddafi
not ducking and having been shot. Remember: there’s no place for reality in
pervasively corrupt, defacto bankrupt america and on fraudulent wall street
particularly. STOCKS MAKE HUGE TURNAROUND ON STUNNING COLLAPSE IN
OIL: BASED SOLELY ON NOW KNOWN TO BE FALSE TWITTER RUMOR! [ Don’t
be surprised if the frauds on wall street initiated the rumors; their fraudulent
manipulations have included far worse … put them in jail where they belong, with
fines, disgorgement! ( ‘…an apparently Twitter-borne rumor started making the
rounds that Qaddafi had been shot! There was no basis for it, but oil simply
collapsed…’ ) ] Weisenthal, On Thursday February 24, 2011 Thank Twitter-borne
rumors of Qaddafi's death for the fact that markets totally didn't get crushed
today…’ ] Militiamen, mercenaries hit cities near capital while protesters seized
air force base; U.S., other Western powers consider responses to situation.
Gaddafi loyalists launch counterattacks ] Crude prices broke through the $100-
a-barrel threshold as violence in Libya continued to shake markets.
Senate Democrats draft cuts in domestic agency budgets (Washington Post) [ Do

these ‘too little, too late’ so-called cuts purport to make the nation ‘less
bankrupt’? There’s no such thing … absolutely preposterous! And, Kotlikoff
thinks so as well, see immediately hereafter… ] The plan will involve
accelerating some of the $33 billion in program terminations and reductions
included in Obama's proposed budget for next year.
When Pretending Fails to Hide Bankruptcy: Laurence Kotlikoff ( Today in the

WashingtonPost.Com ) Laurence Kotlikoff Feb 22, 2011
Feb. 23 (Bloomberg) -- Our country is bankrupt. It’s not bankrupt in 30 years or
five years. It’s bankrupt today.
Want proof? Look at President Barack Obama’s 2010 budget. It showed a
massive fiscal gap over the next 75 years, the closure of which requires
immediate tax increases, spending cuts, or some combination totaling 8 percent
of gross domestic product. To put 8 percent of GDP in perspective, this year’s
employee and employer payroll taxes for Social Security and Medicare will
amount to just 5 percent of GDP.
Actually, the picture is much worse. Nothing in economics says we should look
out just 75 years when considering the present-value difference between future
spending and future taxes. Over the full long-term, we need an extra 12 percent,
not 8 percent, of GDP annually.
Seventy-five years seems like a long enough time to plan. It’s not. Had the
Greenspan Commission, which “fixed” Social Security back in 1983, focused on
the true long term we wouldn’t be sitting here now with Social Security 26 percent
underfunded. The Social Security trustees, at least, have learned a lesson. The 26
percent figure is based on their infinite horizon fiscal- gap calculation.
But the real reason we can’t look out just 75 years is that the government’s cash
flows (the difference between its annual taxes and non-interest spending) over
any period of time, including the next 75 years, aren’t well defined. This reflects
economics’ labeling problem. If you use different words to describe the receipts
taken in and paid out each year by the government, you produce entirely different
cash flows and an entirely different fiscal gap measured over any finite horizon.
Matter of Language
It’s only the value of the infinite horizon fiscal gap that is unaffected by the choice
of labels of language. Take this year’s payroll tax contributions. Let’s call these
transfers from workers to Uncle Sam “borrowing” by the government, rather than
“payroll taxes,” since the money will be paid back as future benefits. If the future
payback isn’t in full (equal to principal plus interest), we can call the difference a
“retirement tax.” Presto! With this change of words, our 2011 deficit of about 10
percent of GDP is boosted another five points to 15 percent.
With one set of words, taxes are higher now and lower latter. With the other set of
words, the opposite is true. But neither set of labels makes more economic sense
than the other or changes what the government takes, on balance, from any
person or business in any given year.
This is no surprise. The math of economics rules out an absolute measure of the
deficit, just like the math of physics rules out an absolute measure of time.
Bottom Line
The bottom line, then, is that we need to look at the infinite-horizon fiscal gap not
just for Social Security, but for the entire federal government. That analysis,
based on the Congressional Budget Office’s long-term alternative fiscal scenario,
shows an unfathomable fiscal gap of $202 trillion. And covering this gap requires
coming up with the aforementioned 12 percent of GDP, forever.
If this gives you the willies, there’s a ready narcotic -- the president’s 2012
budget, which shows that most of our long- term fiscal problem has miraculously
disappeared; the fiscal gap isn’t 12 percent of annual GDP. Nor is it 8 percent. It’s
now 1.8 percent.
This fantastic improvement in our finances is due, we’re told, primarily to the
Independent Payment Advisory Board. This board, to be established in 2014 (after
the next election, of course) is charged with recommending cuts to Medicare and
Medicaid providers when their costs grow too fast.
Repealing Cuts
We’ve had laws mandating such cuts for years, and they are routinely repealed.
Indeed, President Obama signed the latest such repeal last June. But rather than
laugh out loud at this cost-control mechanism, the Medicare trustees, three-
quarters of whom were appointed by the president, assume in their 2010 report
that these cuts will be made -- to the dollar. And the 2012 budget cites the report’s
fictional forecast as its authoritative source.
No one takes the 2010 Medicare trustee report’s long-run projections seriously,
least of all Richard Foster, Medicare’s chief actuary. Foster added this statement
to the end of the report: “The financial projections shown in this report for
Medicare do not represent a reasonable expectation…in either the short range…
or the long range.”
This isn’t the first administration to conceal our long- term fiscal problem. Back in
1993, Alice Rivlin, then deputy director of the Office of Management and Budget,
asked me and economists Alan Auerbach and Jagadeesh Gokhale to prepare a
long-term fiscal gap/generational accounting for inclusion in President Bill
Clinton’s 1994 budget.
Politics Triumphs
We worked for months on the analysis, but two days before the budget’s release,
the study was excised from the budget. We were shocked, but, in retrospect, the
politics are clear. The Clinton administration wanted to claim it was fiscally
prudent and the study, which showed unofficial debt growing at enormous rates,
showed the opposite.
The fiscal gap’s next near appearance in a president’s budget was in 2003.
Treasury Secretary Paul O’Neill commissioned Gokhale and Kent Smetters to do
the study. It showed a massive $45 trillion fiscal gap -- not a great basis for
pushing tax cuts or introducing the prescription-drug benefit for seniors, known
as Medicare Part D. O’Neill was ousted on Dec. 6, 2002, and a couple of days later
the fiscal-gap study was discarded.
I’m not sure whether censoring the fiscal gap is more dishonorable than fudging
it. What I do know is that we can’t assume our problems away and that I expected
far better of this president when I voted for him.
--Editors: James Greiff, Steven Gittelson
Pro-government forces, rebels engage in battles for territory (Washington Post)

[ The big story here, lost on mainstream media, was the manipulated stock / oil
price fraud based upon false rumor of daffy gaddafi not ducking and having been
shot. Remember: there’s no place for reality in pervasively corrupt, defacto
bankrupt america and on fraudulent wall street particularly. STOCKS MAKE
HUGE TURNAROUND ON STUNNING COLLAPSE IN OIL: BASED SOLELY ON
NOW KNOWN TO BE FALSE TWITTER RUMOR! [ Don’t be surprised if the frauds
on wall street initiated the rumors; their fraudulent manipulations have included
far worse … put them in jail where they belong, with fines, disgorgement! ( ‘…an
apparently Twitter-borne rumor started making the rounds that Qaddafi had been
shot! There was no basis for it, but oil simply collapsed…’ ) ] Weisenthal, On
Thursday February 24, 2011 Thank Twitter-borne rumors of Qaddafi's death for
the fact that markets totally didn't get crushed today…’ ] Militiamen, mercenaries
hit cities near capital while protesters seized air force base; U.S., other Western
powers consider responses to situation. Gaddafi loyalists launch
counterattacks ] Crude prices broke through the $100-a-barrel threshold as
violence in Libya continued to shake markets.
STOCKS MAKE HUGE TURNAROUND ON STUNNING COLLAPSE IN OIL: BASED

SOLELY ON NOW KNOWN TO BE FALSE TWITTER RUMOR! [ Don’t be
surprised if the frauds on wall street initiated the rumors; their fraudulent
manipulations have included far worse … put them in jail where they belong, with
fines, disgorgement! ( ‘…an apparently Twitter-borne rumor started making the
rounds that Qaddafi had been shot! There was no basis for it, but oil simply
collapsed…’ ) ] Weisenthal, On Thursday February 24, 2011
Thank Twitter-borne rumors of Qaddafi's death for the fact that markets totally
didn't get crushed today.
But first, the scoreboard:
Dow: -39.13
NASDAQ: +16.16
S&P 500: -1.03
And now, the top stories:
• The "day" really started around 2:00 AM ET, when oil exploded higher in
London trading. It was a vicious move, which sent instantly sent US futures
sharply lower. The dollar got clubbed as well.
• (Rewinding for a moment, it was a generally bad day in Asia, with India,
once again, taking the most abuse).
• Other than the fact that generally markets were down, Europe was fairly
quiet.
• In the US the talk was oil, oil, oil. Everyone had something to say the
impact of rising oil on the US economy, and the effect it would have on the
consumer. Qaddafi spoke pre-market and sounded insane again.
• Futures were clearly lower in the very early going. Mediocre earnings from
Target and GM didn't help at all. But then a strong initial claims report did
help modestly.
• Still, stocks were down all day until just after 2:00 PM ET, when an
apparently Twitter-borne rumor started making the rounds that Qaddafi had
been shot! There was no basis for it, but oil simply collapsed. It helped that
around the same time there was talk of the US cracking open its Strategic
Petroleum Reserve. Markets turned around violently on the news. Gold and
silver slid as well.
• And that was basically it.
• Think inflation is going to be a major problem? Click here for 10 companies

that will do great if inflation skyrockets >‘
February 22, 2011: Mohamed A. El-Erian, CEO PIMCO predicts a period of, at
best, stagflation; which of course is bad for stocks (and worse).
That House You Bought 10 Years Ago Is Worth Exactly The Same Now As It Was
Then Depew ‘The chart below shows the median price for existing homes, which
is down 3.7 percent year-over-year to $158,000. Some interesting things to note
about this:
1) While existing home sales increased 2.7 percent, the percent of home sales
which were distressed rose to 37 percent, an incredible amount if you stop to
think about it.
2) Also, 32 percent of the existing home sales transactions were for cash.
3) Oh, and if you were thinking that the housing bubble collapse has exterminated
all speculative activity in the housing market, consider that 23 percent of all sales
went to buyers classified as "investors."
4) Finally, while the inventory of existing homes available declined to a little less
than 8 months' worth at the current pace of sales, if you factor in the high
percentage of distressed sales along with the fact that the National Realtors'
Survey doesn't account for inventory listed by banks and private agents... well,
you can see where this is headed. [chart]’
The U.S. Dollar Is No Longer a Safe Haven Daily Trader ‘The winds of change
appear to be blowing! Some 6 months ago when world financial markets took
fright, the average punter would rush headlong into the safety of the USD and US
Treasuries.However, something different is now playing out. The USD has been
broadly weaker against the "average" paper currency in the world. Yes that is
correct, the USD has done rather badly against other currencies since the
Egyptian crisis took hold. Over the last few days whilst the Libyan drama has
progressed into a full blown crisis and perhaps a prelude to civil war, the USD
has again depreciated against a broad basket of currencies. Note the behavior of
our Proprietary Currency Index below (16 currencies against the USD). It is only a
few "pips" away from breaking to a multi-month high. [chart]Now what if we do
see the index above break to a new high and the USD Index to a multi-month low?
What would be the implications for other markets like equities, commodities and
Treasuries?As far as commodities go it does not take a rocket scientist to work
that one out. I don't think a break in the USD would be very supportive for higher
US Treasury prices.........after all when have rapidly rising commodity prices been
positive for Treasuries?As for equities, well I think it is going to be highly
dependent on which sectors you are in. I find it difficult to believe that commodity
sensitive sectors like basic materials and energy would weaken. With correlations
across stocks breaking down I think the coming months will be very favorable to
diligent inflation-oriented stock pickers.’
Stocks Slide as Key Moving Averages Fail to Hold Suttmeier ‘…The ValuEngine
Valuation Warning was at an extreme last Friday, and technicals were overbought on
daily charts.
The 10-Year Yield -- (3.489) This yield tested its 50-day simple moving average at
3.446 on Wednesday after holding my weekly pivot at 3.529. The 200-day simple
moving average is 3.007.
Comex Gold -- ($1410.8) Tested $1417.5 this morning above my monthly risky level at
$1412.4. Gold is now overbought on its daily chart with the 50-day at $1373.5 and
quarterly and semiannual risky levels at $1441.7 and $1452.6.
Nymex Crude Oil -- ($98.48) Tested the $103.41 this morning above my annual pivots
at $99.91 and $101.92. My monthly pivot is $91.83 with semiannual and quarterly risky
levels $107.14 and $110.87.
The Euro -- (1.3747) The 50-day is 1.3416 with my weekly risky level at 1.3868.
ValuEngine Valuation Warning -- A ValuEngine Valuation Warning occurs when more
than 65% of all stocks in the ValuEngine universe are calculated to be overvalued. On
Friday 68.6% of all stocks were overvalued, which was the highest of the year. Today
61.2% of all stocks are overvalued.
The Technical Warning -- All major equity averages ended last week with extremely
overbought conditions noted on their weekly charts. This week’s weakness will keep all
weekly charts overbought with the exception of Dow Transports, which has declining
weekly MOJO.
• We are below all of this week’s pivots; 12,401 Dow Industrials, 1345.0 SPX,
2831 NASDAQ, 2405.1 NDX, 414.82 Utilities, 5241 Dow Transports, and
815.37 Russell 1000 and 483.39 SOX.
• The Dow Industrial Average (12,106) -- Closes below the 21-day simple moving
average at 12,134 targets the 50-day at 11,851. My monthly value level is 11,759
with daily and weekly risky levels at 12,257 and 12,401.
• The S&P 500 (1307.4) -- Closes below the 21-day simple moving average at
1314 targets the 50-day at 1286. My quarterly value level is 1262.5 with daily and
weekly risky levels at 1331.3 and 1345.0.
• The NASDAQ (2723) -- Given a close below the 50-day simple moving average
at 2721 the risk is to my monthly value level at 2611. Daily, weekly, and quarterly
risky levels are 2793, 2831 and 2853.
• The NASDAQ 100 (NDX) (2301) -- Given a close below the 50-day simple
moving average at 2293 the risk is to my monthly value level at 2234.7. Daily,
weekly, and quarterly risky levels at 2360.00, 2405.10 and 2438.3.
• Dow Transports (4986) -- Closes below the 50-day simple moving averages are
5130 indicated risk to my monthly pivot at 4962, which was tested on
Wednesday. My quarterly value level is 4671 with my annual pivot at 5179 and
weekly pivot at 5241. A close this week below the five-week modified moving
average at 5098 shifts the weekly chart profile to negative.
• The Russell 2000 (799.64) -- Tested its 50-day simple moving average at 795.71
with this week’s pivot at 815.37. My quarterly value level is 765.50 with my
weekly pivot at 815.37 and daily risky level at 836.03.
• The Philadelphia Semiconductor Index (SOX) (444.27) -- Is approaching its
50-day simple moving 436.31. My monthly value level is 398.44 with a quarterly
risky level at 465.93.
More Bad News on Housing -- Existing Home Sales rose in January, but the increase
was led by rising foreclosures and all-cash buyers. According to the National
Association of Realtors prices home prices slumped to a nine-year low. Foreclosure
sales accounted for 37% of the seasonally adjusted annual rate of 5.36 million homes.
Another 32% were sold in all-cash transactions. The decline in home prices was 3.7%
year over year.Housing problems include tighter lending standards including a larger
down payment, and higher mortgage rates. The potential inventory of existing homes
remains quite high and banks have been slow to foreclose. High unemployment is still
cited as an issue.
Some Key Points From the FDIC Quarterly Banking Profile for the Fourth Quarter
of 2010
• The FDIC List of Problem Banks rose by 24 to 884 from 860, which is 11.5% of
the 7,657 FDIC-insured financial institutions.
• Loan balances fell by $51.8 billion in the fourth quarter on loan write-downs,
payoffs, and the slow generation of new loans.
• The Deposit Insurance Fund (DIF) narrowed its deficit to $7.4 billion from $8.0
billion. The total cost of bank failures through 2013 is projected to about $100
billion.
could halt exports.
IMF Austerity Measures Lead to Violent Riots in Greece AFP | The confrontation
occurred near the finance ministry.
Jobless youths trigger concerns in UK Press TV | A drought of entry-level jobs

means door to work is closed to many young people.
Crude breaches $119 in frantic trading Brent crude had breached $119 a barrel
during a period of frantic trading around 0745 GMT as industrial needs were
hedged and traders exploited an explosion of upside momentum.
Stagflation 2011: Why It Is Here And Why It Is Going To Be Very Painful Are you
ready for an economy that has high inflation and high unemployment at the
same time? Well, welcome to “Stagflation 2011″. Stagflation exists when
inflation and unemployment are both at high levels at the same time.
Oil Is Making Another Gigantic Move, And Now US Futures Are Getting
Hammered Crude is having another huge. Brent is near $120. WTI is over
$101. The spike happened right when London trading open.
Socialism Gone Apes**t: Obama Wants To Use Proceeds From $20 Billion
Fraudclosure Settlement To Reduce Underwater Mortgages [ Yet he still
reneges on his promise to prosecute the wall street frauds. ] Ever wonder
why the banks have been stowing away cash as if in anticipation of a
torrential rainy day?
National / World
Media Demonizes Gaddafi as Pentagon Prepares Attack Kurt Nimmo | Pentagon

has announced it is looking at “all options.”
SPLC Report Lumps In We Are Change With Neo-Nazis, KKK Steve Watson |
Suggets that grassroots citizen journalist group has “driven people to
murder.”
Gas Prices Set to Rise Nearly 40 Cents in Coming Days Kurt Nimmo | Saudi
Arabia in talks to boost oil production as situation in Libya deteriorates.
Exclusive Interview: Charlie Sheen To Appear On The Alex Jones Show 2PM EST
Paul Joseph Watson | Actor to set the record straight on exaggerations,
misinformation and outright falsehoods concerning his private life and
career.
Big Brother: The Orwellian Nightmare Come True Mark Dice | Tremendous
advances in technology often come unforeseen consequences.
Media Demonizes Gaddafi as Pentagon Prepares Attack As we reported

yesterday, the United States has specific instructions to intervene militarily
in Libya under the cover of providing humanitarian assistance. Less than 24
hours after our report, the Pentagon has announced it is looking at “all
options” in dealing with the Libyan crisis. In short, it is drawing up plans to
intervene.
Charlie Sheen Unleashes On TSA Actor Charlie Sheen unleashed on the TSA
during a wild radio interview on The Alex Jones Show today, raging that he
would eat the hands of any TSA worker who tried to touch his children, in
response to the story that TSA agents harassed travelers and groped
children in Savannah train station earlier this month after the passengers
had left the train.
Gas Prices Set to Rise Nearly 40 Cents in Coming Days Earlier this week, market
analysts warned that the price of gas may reach $5 by the end of summer.
Now they are saying we could see that price by Memorial Day as the
situation in Libya deteriorates.
SPLC Report Lumps In We Are Change With Neo-Nazis, KKK The Southern
Poverty Law Center has a history of declaring any protest group it sees as
“anti-government” as an “extremist” hate group, without justification. Today
it continues that trend with the publication of a report that throws in We Are
Change members nationwide with racist Neo Nazi groups and Ku Klux Klan
factions.
Governor Walker: “We Thought About” Infiltrating Wisconsin Protesters With

Troublemakers During a prank phone call in which he believed he was
talking to billionaire philanthropist David Koch, Wisconsin Governor Scott
Walker admitted that state authorities had “thought about” using
troublemakers to infiltrate the crowds demonstrating against his effort to
eliminate collective bargaining rights, proving once again that the use of
agent provocateurs to discredit legitimate protesters is a common political
ploy.
FLASHBACK: Gaddafi – Obama Is Friend, Black Man From Our Continent Of Arab
Descent He said, “Now, ruling America is a black man from our continent, an
African from Arab descent, from Muslim descent, and this is something we
never imagined – that from Reagan we would get to Barakeh Obama.”
ancestral roots and thereby claim standing/right to posit the criticism in light of

Dear Sir:

thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
16 miles away, Saudi Arabia's watchful eye looms over Bahrain unrest
(Washington Post) [ I’m sure they are… with a microscope at that. Saudis
Worried Protests Will Hit Home - saudi arabia; talk about do nothing hypocrites.
How does one family claim ownership of all the oil reserves of a sovereign
nation; I suspect only when foreign corporations say so For the sake of the saudi
Arabian people, more than just protests should come to fruition! ] AFP | Saudi
royal warns Arab world uprisings could cause harm unless they reform. Bahrain
authorities launch surprise attack on protesters [There’s the america and saudi
Arabia effect; far less than democratic and far more deadly in the mideast among
other places; talk about hypocrites. How does one family claim ownership of all
the oil reserves of a sovereign nation as the saudis; time for the saudis to go the
way of dictator Mubarak and take the war criminal americans with them. ] Los
Angeles Times Tear gas canisters bombard sleeping protesters in Manama's
Pearl Square. At least two men are reported killed Video: Bahrain protesters
look to emulate Egypt revolt euronews Riot Police Attack Bahrain Protesters
Voice of America ‘Saudi Arabia sending troops to Bahrain’ Saudi Arabia is
sending troops to Bahrain in a move to crack down on pro-democracy protesters
who took to the streets in the capital Manama, a political analyst says. [SAUDIS
TOLD OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing
footsteps…Previous: Egyptian capital teeters on anarchy Mubarak asks cabinet
to resign as anti-regime protests intensify (Washington Post) [ Mubarak should
have been looking in the mirror as he asked his cabinet to resign … 30 years is a
long time, and coincidentally, time for him to go. In Egypt: Access denied
(Washington Post) [The day part of the Internet died: Egypt goes dark [I disagree!
Part of the internet didn’t die, but rather the order to so darken the nation
heralded the demise, at 30 years and counting, of the so-called leadership in the
persona of Mubarak. Time for him to go! After all, he’s been in a position, with
Egypt among the only Mideast nations to have signed a peace treaty with israel,
to have stepped up with substantial credibility in taking a strong position against
israeli transgressions, violations of international law / u.n. resolutions, war
crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he
sends his family to Orwellian england; he still loves those colonial masters …
how pathetic. I mean, 30 years … how free-flowing does anyone think the election
process is at this point … and one could ask the same regarding the entrenched
powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then
there’s saudi arabia; talk about do nothing hypocrites. How does one family claim
foreign corporations say so. The only Mideast nations showing backbone are
Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted
bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack
sufficient information regarding these other nations). ] (AP) Internet cutoff
fails to silence Egypt protests (AP) - ]
A steep challenge for Arab world (Washington Post) [ I’m sure the rest of the
defacto bankrupt world would love to have the lagging problem of the Arab
nations of rich real assets as opposed to the fake fraudulent worthless paper
assets the so-called ‘rest of the world’ is ‘sporting’. Economist: United
States Worse Off than Greece Dr. Laurence Kotlikoff is an economics
professor at Boston University. He says the Treasury and the government
are fudging the national debt numbers. Kotlikoff says the United States is
bankrupt and we don’t even know it. Howard Davidowitz on the
Economy: "Here Are the Numbers ... WE'RE BROKE!" 11-25-10 ‘The U.S.
economy "is a complete disaster," Howard Davidowitz declared here in July,
the most recent in a string of dire predictions from Tech Ticker's most
entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had
any regrets, or was ready to throw in the towel given recent signs of
economic revival. Are you kidding me? "Here are the numbers...we're
broke," Davidowitz declares, noting the U.S. government goes $5 billion
deeper into debt every day and is facing $1 trillion-plus annual deficits for
the next decade. "In other words, we're bankrupt."As with the economy,
Davidowitz is unwaveringly consistent in his views on President Obama,
calling him "deranged, dysfunctional and discredited."Results of the
midterm election show "the people of this country think we are in a
catastrophe," he says. "I'm with them."Check the accompanying video for
more of Howard's unfettered opinions and stay tuned for additional clips
from this interview. And...Happy Thanksgiving! Aaron Task is the host of
Tech Ticker. You can follow him on Twitter at @atask or email him at
altask@yahoo.com’ Timid Tuesday: Is it Safe? Davis ‘… This is how
we pay off our current debts and I think bondholders are simply happy to get
CAREFUL OUT THERE! ‘
] Despite the rich resources in the region, Arab nations lag behind rest of
world economically.
Economic forecast (Washington Post) [ And you can take that to your local
insolvent bank…or not even your local insolvent bank; but rather, your non-
local insolvent bank that’s still carrying the toxic assets/paper/securities
now marked to anything by way of FASB rule change, professional criminal
courtesy via congress, as the the wall street frauds cash out for hard fiat
currency. What do you expect them to say? This wasn’t even a recession to
be, as per forecast. They haven’t the slightest clue what they’re doing other
than the ‘narcotic effects’ of the non-stop printing press fiat currency ‘feels
good’ and buys time, politically. ] White House policymaker predicts that the
recovery should continue despite oil prices, European crisis.
Pressure mounts on Gaddafi (Washington Post) [ That he was always a caricature

of sorts, there is no question. That he’s totally burned out, there’s also no
doubt; though they might argue in his defense that so was dumbya bush …
a point well taken … but look at the consequential pathetic state of
pervasively corrupt, defacto bankrupt america … with the unlit torch passed
to wobama the b (for b*** s***) who pretends, or maybe in his alternate and
fake reality just believes it’s lit. That he’s done, also fait accomplis, after 41
years … who cares. That he’s insane … now that’s quite another thing with
greater worldwide implications, so, daffy… gadaffy… duck! Gaddafi vows to
maintain hold on power Libyan strongman says he'll fight 'until the last
drop of my blood' (Washington Post) [ His latter wish is the world’s
command. ‘Something there is that doesn’t love a dictator, that wants them
down’ … (Excuse me … I was thinking of walls and ‘Mending Wall’, Robert
Frost). Libya Internet Shut Down Amid Protests, Per Multiple Reports [ Once
again, as in Egypt, this, the internet, inherently global in nature is the
lynchpin, tampering with or stifling same marking the end of any regime. Let
this be a warning; viz., you cannot put the genie back in the bottle! 41 years?
Gadaffy duck should duck ‘cause he’s done. I mean, look at him, he’s the
singular equivalent of the multiple bushes. He’s totally burnt out (as much or
more so than dumbya bush or mubarack) and quite done! ] Reports have
emerged late Friday that Libya appears to have shut down its Internet due to
widespread protests, less than a month after Egypt did the same. ] With
rebels apparently controlling much of the eastern half of the country, the
violence engulfing Libya is already the worst in more than a month of unrest
that has toppled other regimes. ]
Bad News - Bullish Wall of Worry or Sell Signal? Maierhofer, On February 23,
2011, ‘When I published this article 10 days ago I received much criticism. After the
biggest two-day sell off since August 2010, the commentary might be helpful in
determining whether this is another flash in the pan mini correction or the onset of
something more serious.If it's too obvious, it's obviously wrong. More often than not, this
proverbial Wall Street adage has the last laugh. What's the prevailing consent on Wall
Street? What's suspiciously obvious today?
While Wall Street analysts are trying to one up each other's positive forecasts, the Fear
Index, VIX (NYSEArca: VXX - News) has fallen to a 3 year low. The last time the VIX
was at a similar level was in April 2010, just before a literally fear-inspiring 17%
correction and the May 'Flash Crash' (see chart below).The ETF Profit Strategy
Newsletter didn't subscribe to the prevailing optimism in April 2010 and warned that:
'The message conveyed by the composite bullishness is unmistakably bearish. The
pieces are in place for a major decline.'Does that mean that the bottom will fall out again
within a matter of days? Not necessarily, but now is certainly not the time to be married
to your holdings. Tight sell stops are warranted because any minor correction could turn
into a large one. Why?
The devil's in the long-term trend. If we are in a new bull market, any dip would present
a buying opportunity. If we are in the mother of all bear market rallies, every rally is a
trap and represents a selling opportunity.How can one determine whether we are in a
new bull market, or a bear market rally? [chart] It's said that bull markets climb a wall of
worry. No doubt there was extreme pessimism surrounding the March 2009 lows. That's
one of the reasons the ETF Profit Strategy Newsletter sent out a strong buy signal on
March 2, 2009.But pessimism at the bottom doesn't equal a wall of worry. In fact,
following the initial bout of disbelief, investors embraced the rally rather quickly. In late
2009, sentiment readings became frothy, in January 2010 they rivaled 2007 extremes
(stocks fell 9%), and in April 2010 they exceeded 2007 extremes (stocks fell
17%).About two thirds of the rally from the 2009 lows was accompanied by optimism.
This is no wall of worry.
(NYSEArca: IYR - News) prices - were sugar coated from the very beginning. The
unemployment problem was charmingly called 'jobless recovery' and falling real estate
prices were simply ignored.The Case-Shiller home price index is down four months in a
row, but nobody is bothered. A few days ago, MarketWatch ran an article: '10 reasons
to be bullish on housing.'Courtesy of the continuing real estate conundrum, the FDIC
closed 157 banks in 2010, and 14 thus far in 2011. According to a Wall Street Journal
article, the top 10 U.S. owned banks had $13.8 billion in unrealized losses.Those are
not reflected in earnings numbers as long as financial institutions (NYSEArca: XLF -
News) believe the investment will later rebound. Guess what? Banks are pretty darn
sure prices will reclaim their 2006 all-time highs.In addition to the $13.8 billion in
unrealized losses, the top 10 U.S. banks owned $360.7 billion in illiquid, hard to value
assets (called level 3 assets). While paper earnings appear solid, it appears as if banks
are hiding skeletons in their closets. But who cares, stocks (NYSEArca: VTI - News) are
up.
Anomaly Explained
Ben Bernanke has openly admitted that asset inflation, or the wealth effect from rising
stock prices, is the objective of QE2. Obviously, the money flow from the Federal
Reserve over banks into the stock market has been the driving force behind this
monster rally.Much of the Fed money has been funneled into commodities. Since QE2,
net speculative positions in wheat and copper have doubled, oil soared 115%,
soybeans 40% and corn 15%. Rising commodity prices are putting the squeeze on
lower income Americans and will eventually lower profit margins for the materials
sector.It's quite likely that this ripple effect will spill over into the retail (NYSEArca: XRT -
News), technology (NYSEArca: XLK - News), and consumer discretionary sector. From
there it's just a matter of time until it hits the broader Dow (DJI: ^DJI), S&P (SNP:
^GSPC) and Nasdaq (Nasdaq: ÎXIC).Contrary to its objective, QE2 has also sent
interest rates soaring. Higher interest rates tend to encourage the money to flow from
equities into bonds. Higher interest rates put pressure on bond and stock prices alike.
Early Detection
The trend is your friend, but the trend is a fair-weather friend and can turn at any given
time. The trend doesn't announce its intention to change direction. It switches back and
worth as it pleases without your permission.Courtesy of your friend the trend, everybody
is a genius in a bull market ... and a nave misguided trend follower when prices drop
without prior notice.There is no foolproof way to find out when the market is about to
change directions. There are, however, ways to put the odds in your favor.Watching
support levels has proven a very effective way. A few months ago 1,170 was a crucial
support level highlighted by the ETF Profit Strategy Newsletter. The S&P tested this
level no less than five times, but never broker below it and rallied over 10% since.Just
recently, 1,270 was such a support level. The S&P tested it twice before moving into the
1,320 range. The market is dynamic and can change swiftly; therefore, it's the market
that dictates support levels, not us. We just identify and use them…’
How Confident Are Consumers in the Future of the Economy? Harding ‘This is
the time of the month when the consumer surveys come out measuring
confidence in the economy’s future. There are three large surveys: Conference
Board, Gallup, and the University of Michigan. They all try to measure our belief
with regards to the future, and specifically whether or not we feel like spending
our money. Today Gallup and the Conference Board came out with mixed results.
On Friday the University of Michigan/Reuters survey comes out. (It has been
showing a rising trend for the last four months.)Gallup does their own survey of
3,434 respondents. The result was that consumer confidence hasn’t improved for
a year:[chart]Asked whether the economy was getting better or if it was poor,
respondents answers were unenthusiastic at best:[chart][chart]The Conference
Board had a different take on the future:[chart]That sure looks good but, looking
closely: Optimism is no better now than it was a year ago, also suggesting that
little progress has been made economically over the past 12 months. Up to this
point in 2011, there seems to have been a relatively great amount of optimism
about the US economy going forward. Whether last week’s deterioration in
consumer confidence is the beginning of a new trend or just a short-term
aberration remains to be seen. Also, from the Conference Board’s press release:
Those stating business conditions are “good” increased to 12.4 percent from 11.3
percent, while those claiming business conditions are “bad” was unchanged at
39.6 percent. Consumers’ assessment of the labor market was also more positive
than in January. Those saying jobs are “plentiful” rose to 4.9 percent from 4.6
percent, while those stating jobs are “hard to get” decreased to 45.7 percent from
47.0 percent. Consumers’ short-term outlook was more optimistic than in
January. Those expecting business conditions to improve over the next six
months increased to 24.4 percent from 24.0 percent, while those anticipating
business conditions will worsen declined to 10.4 percent from 12.2 percent. This
is their best reading in three years.I don’t know if this makes a difference, but the
Conference Board just fired its former pollster and hired Nielsen instead. They
surveyed 3,000 respondents. Their survey is billed as a leading indicator.Who do
you want to believe? With 43.6 million Americans, or 14.1% of the population on
food stamps, relatively flat wage growth, and a dour unemployment picture, I
don’t think that only 17.3% of Americans feeling better about their future income
potential versus the prior reading of 15.3% really means that much. Ditto with the
percentage of those seeing business conditions improving going from 11.3% to
12.4%. 39.6% of respondents said they are worse, and the rest, or 48% see no
change or have no opinion. Another way of saying this is that 87.6% of the
respondents didn’t have a positive view of business conditions.The Conference
Board’s statement that “Consumers’ appraisal of present-day conditions
improved moderately in February” is true but I would question its relevance. At
such low levels of enthusiasm among its respondents, a point or two doesn’t
mean much. If you step back and look at what these results reveal, it doesn’t look
to me as if consumers are more optimistic about the future. To say otherwise is
just spin. I think Gallup has the better view right now.’
Double Top in Cyclicals? Elfenbein ‘The stock market is getting knocked again
today, but the pain isn’t evenly spread out. Who’s up for another look at the
relative strength of cyclicals? Great, me too! As long-term readers know, one of
my favorite metrics to follow is the Morgan Stanley Cylical Index (^CYC) divided
by the S&P 500 (^SPX). This is far from a comprehensive analysis, but it is a
quick-and-dirty look at the “mind of the market.”Since late August, the market’s
rally has been disproportionally powered by cyclical stocks. In fact, the ratio of
the CYC to the S&P 500 reached an all-time high on February 11 (my data goes
back to 1978).The ratio hit a previous peak on January 10 and, soon after,
cyclicals dropped off sharply. I quickly jumped on this and thought it was the end
of the cycle. Wrong! The ratio soon rallied and peaked on February 11, just a hair
above the level for January 10 (0.8442 to 0.8441).The CYC is down again today
(although many energy names are up). If today’s numbers hold up, the ratio will
close below the low made on January 21.The reason these cycles are so
important is that once they get going, they often last for a few years. Put it this
way, if the Dow had kept pace with the CYC since the low from two years ago, the
Dow would be over 24,000 today.[Click to enlarge] [chart] ‘
Will Oil Spike Renew Interest in Clean Energy Commodities? Handwerger ‘Many
of the great declines in the stock market over the past 30 years have been related
to oil (United States Oil (USO)). This week we have seen the major indices
plummet on geopolitical chaos throughout North Africa, especially the large oil-
producing Libya, as investors returned to gold (SPDR Gold Shares (GLD)), silver
(iShares Silver Trust (SLV)), and oil. As the market reached record overbought
territory, any excuse could begin a significant pullback in equities (SPDR S&P
500 (SPY)).
Investors are monitoring key assets in Egypt (Market Vectors Egypt Index
(EGPT)). If either the Suez Canal or Sumed Pipeline come under attack, then we
will see a major oil spike, possibly worse than in the late 1970s. Already Iran has
taken advantage of the chaos and passed into the Mediterranean, further
escalating potential conflicts between Israel (iShares MSCI Israel Cap Invest Mkt
Index (EIS)) and the Iranian Allies of Hezbollah and Syria who want to take back
control of the Golan Heights. This Middle Eastern instability may have deeper
consequences and I don’t believe it will end anytime soon. In fact, it may even
eventually spread to Saudi Arabia where the royal family maintains weak control
and extremists are gaining popularity. In late January in an article entitled, Will
Gold, Oil Prices Soar on Revolts in Tunisia, Egypt? I wrote about the domino
effect hypothesis, stating that chaos would not be contained in Tunisia and
Egypt. This spread of chaos, causing volatile power vacuums, could have a
significant impact on gold and oil, especially now that the domino hypothesis is
being confirmed. [chart]
At the end of January investors returned to precious metals. Gold has been on
sale every six months. A January phenomenon occurs when mutual funds and
institutional investors reposition their holdings, sometimes allowing investors to
buy a sector on sale. At the end of January, gold and silver found support as
geopolitical conditions worsened. The recent Libyan crisis has caused oil to jump
which in turn has caused a decline in equities.
As much as the financial crisis and record government spending has helped gold
soar to record highs, terrorism and war have been major drivers of the price since
September 11, 2001. The Middle East possesses approximately 65% of the
world’s oil reserves, and Egypt in particular has two key assets which effect the
global oil trade: the Suez Canal and the Sumed Pipeline. Many analysts did not
expect Libya to fall into civil war. Reports are showing that oil exports are being
curtailed, sending oil into new 52-week highs.
The “Sputnik” moment which President Obama spoke about in his State of the
Union address may come faster than expected out of necessity. Washington is
actively pursuing supply of North American heavy rare earth assets to fast-track
into production as top-secret defense technologies depend on it. Sanctions on
China from the WTO will not be enough to meet the growing demand. Even China,
which produces over 97% of the rare earths, has expressed interest in heavy rare
earth assets globally. Hyundai, the latest company on the electric-car scene,
recently commented that it was pursuing a rare earth supply as well.
Economies are growing and demand has increased since the last major Iranian
Revolution in 1979 when oil spiked higher. An oil spike now could be much more
detrimental 32 years later. The world is more dependent on fossil fuels and many
nations are struggling with slow growth and huge debt burdens. An oil spike
could cause a major setback for the global economic recovery unless
governments initiate major alternative energy and clean energy programs. I
believe these current events will create a more significant push into clean energy,
non carbon energy. A few commodity sectors may benefit including uranium
(Global X Uranium ETF (URA)), lithium (Global X Lithium ETF (LIT)) and rare
earths (Market Vectors Rare Earth/Str Metals ETF (REMX)).
President Obama has released this year’s budget and it was shocking. Many
analysts were surprised by the huge amount of capital allocated to clean,
alternative energy in order to spur innovation and job growth. In the recent
budget, a $7500 tax credit will be given to car buyers who purchase an electric
car. Obama has a goal of putting 1 million electric vehicles on the road by 2015.
Many analysts are predicting about a 10% increase in cars sold due to this
legislation. However, tensions are escalating as Iran sticks out its tongue at Israel
by passing through the Suez Canal. Oil prices could spike as turmoil spreads
through North Africa and the Middle East. Legislators are sending a message that
they want to wean themselves off of Middle Eastern oil and look into clean and
independent energy.
Investors should expose themselves to the potential supply-demand constraints
and rise in oil prices by purchasing developers with major assets in these clean
energy mineral sectors or by diversifying into these newly created ETFS, such as
REMX or LIT, which track these sectors. As oil spikes, these clean energy
commodities should receive a renewed interest by legislators and investors who
believe in clean energy power generation.’
North African Turmoil Could Rocket Crude to $220 Fox Business | May cause
crude to spike from about $97 a barrel today to $220 a barrel.
Oil touches $100 a barrel as Libya standoff worsens Reuters | Oil surged to a 28-
month high of $100 a barrel on Wednesday.
Wall Street Shares Fall Sharply Amid Libyan Unrest New York Times | Political
turmoil in the Middle East and North Africa continued to haunt financial markets
Korean Bank Run Spreading: Eighth Bank Closes Following “Massive

Withdrawals” The quietest bank run that has so far completely evaded
mainstream attention, that of Korea, is spreading, and an eighth bank has
now shuttered after “Domin Bank, a savings bank with a capital adequacy
ratio below 5 percent, voluntarily decided yesterday to suspend its
operations temporarily because of massive withdrawals.”
Keiser Report: Fed’s Reign of Terror This time Max Keiser and co-host, Stacy
Herbert, talk about the Fed’s reign of terror and an economist’s warning of
revolution in America as Obama’s budget robs from the poor to give to the
rich. In the second half of the show, Max talks to William D. Hartung, author
of Prophets of War, about the cost of corporate welfare to the U.S. military
industrial complex and the role of this welfare in the current Middle East
unrest.
Highest Gas Prices in February Since 1990, Attributed to Libya Turmoil Weekly
gas prices skyrocketed, according to the Department of Energy, driven by
the popular revolts spreading across the Middle East.
National / World
Libya air raids death toll hits 1,000 Press TV | Hospitals have no electricity and no
medicines.
WORLD AT WAR ARCHIVE
WORLD NEWS ARCHIVE
North African Turmoil Could Rocket Crude to $220 If the turmoil paralyzing parts
of the Middle East and North Africa brings oil production in Libya and
Algeria to a standstill, it could cause crude oil to explode to $220 a barrel,
derailing the global economic recovery.
US & EU Prepare to Buy Off Post-Revolution Governments With Billions in “Aid”

(Taxpayer Money) While the United States and Europe orders its own scum
public to accept massive public spending cuts along with higher taxes on
top of soaring inflation and food prices, it concurrently prepares to buy off
post-”revolution” governments in the Middle East and North Africa with
billions in “aid” (taxpayers’ money) in order to install fresh puppets who will
graciously buy huge quantities of arms from the US-EU-Israeli military-
industrial complex.
Leaked Memo: Government Considering Deploying Special Forces Troops On

The Streets With Police The British government is considering plans to
deploy crack trained SAS commandos onto the streets to work alongside
police in “counter-terrorism surveillance teams”, according to a leaked
memo unveiled by the Times Of London today.
We Called It: Forecast Of Huge Public Worker Protests, Age Of Rage, Oil Price
Surge Unfolds Having often been accused of exaggerating, engaging in
alarmism or outright fabrication by the establishment media, our regular
readers will indulge us for tooting our own horn on the fact that we predicted
the public worker demonstrations now happening in Wisconsin, along with
the rage spreading across the Middle East, as well as soaring oil prices in
June last year, and indeed as far back as February 2008.
US & EU to Buy Off Revolution Governments with Taxpayer Money Paul Joseph
Watson | Public told to accept massive public spending cuts, higher taxes
and soaring food costs while money is sent to purchase new dictators.
Oil Prices Skyrocket After Williams’ Latest Revelations Kurt Nimmo | The
corporate media is getting Americans accustomed to the prospect of gas at
$5 or more a gallon.
Seattle Business Refuses To Serve TSA Agents Paul Joseph Watson | Nationwide
revolt against naked body scanners and invasive groping carried out by
predatory thugs goes viral.
Defiant Libya Tony Cartalucci | The globalists want Qaddafi out and his defiance
has conjured an almost tangible.
Milbank: Rush Limbaugh's unfair food fight (Washington Post) [ I’m no fan of
limbaugh’s which can easily be discerned from my web site and posts
thereon. But, truth be told, I’ve become even less a fan of the wobamas who
have revealed themselves as so typically jive-talking b*** s*** that to most
rational, civilized people, they’d be embarrassed. But not the wobamas the b
(for b*** s***, their middle name). As I’ve said before, like water off a duck’s
back is the effect of deserved criticism on wobamas and their ilk. They have
become part of the problem, not the solution. Almost any criticism, by
almost anybody is criticism deserved and welcomed (I previously excepted
the BP scenario which was in my view undeserved criticism of wobama. But
that’s it! I’m with Limbaugh on most any criticism of the wobamas.
Drudgereport: Michelle Obama, Daughters Hit the Slopes on Ski
Vacation ...
Vail...
Gov't shutdown threat looms over budget fight... DEBT NOW EQUALS
ENTIRE ECONOMY
OBAMA AGENDA IS OVER Obama refers to himself as 'The Gipper'…
[ Riiiight! …anything you say wobmama the b for b*** s***… or maybe the
bipper, the chipper, or the yankee clipper (the new joltin’ joe) …sounds like
he’s losing it! ] ... ]
Deaths of four Americans reflect increasing violence of Somali piracy

(Washington Post) [ Drudgereport: U.S. Warship Tracking Yacht Hijacked by
Somali Pirates... [ I realize there are ‘laws of the sea’ / codified bodies of law
within that broad yet very specific category called ‘maritime law’, none of
which I know nor care to know (I’ll content myself to knowing and seeing to
the enforcement of american law as pertains to me; viz., RICO
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyof
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm . I do
know that these somali pirates need killin’ and I further believe that open
season on them including using their boats in the water for target practice
makes sense and certainly is morally justified. I’m tired of hearing about
those little weasels … you know, ‘the skinnies’. ]
On Obama's jobs tour, unemployed have little voice (Washington Post) [ This of
course is so true. That wobama’s done there’s no question. Indeed, despite the
rhetoric, separate terms, hasn’t he proven to be, and isn’t wobama just a
continuation of the NWO / NAFTAite regimes that landed the nation here in this
foul, pervasively corrupt, defacto bankrupt position. How different are america’s
entrenched corrupt bureaucracies / ‘leaders’ from the dictators and their corrupt
bureaucracies being deposed today. If only wobama wasn’t the typical, jive-
talikin’ wobama the b (for b*** s***) he is and did what he ran and was elected on,
the outcome for fallen america would have been substantially better, though still
dire, than that which lies ahead.
Obama’s 2012 Budget: Tool Of Class War Paul Craig Roberts | Continues Wall
Street’s war against poor & middle classes. ] White House officials were
unable to give a single example of him interacting, even in private, with a
person who had recently lost a job.
State budget woes draw more protests (Washington Post) [ Obama joins
Wisconsin budget battle Democratic lawmakers flee state in attempt to block
anti-union bill (Washington Post) [ Looks like capital hill can pick up a few
pointers from ‘dem dems … fleeing the state, that is … except in their case it’ll be
fleeing the nation-state, or what’s left of same. Drudgereport: Michelle Obama,
Daughters Hit the Slopes on Ski Vacation ...
Vail...
Gov't shutdown threat looms over budget fight... DEBT NOW EQUALS ENTIRE
ECONOMY
OBAMA AGENDA IS OVER Obama refers to himself as 'The Gipper'… [ Riiiight!
…anything you say wobmama the b for b*** s***… or maybe the bipper, the
chipper, or the yankee clipper (the new joltin’ joe) …sounds like he’s losing
it! ] ...Debunking the 'Debunking Myths of U.S. Collapse' Post Ridder [ Stated
another way, the collapse of the (dis)united states is at hand. Now, let me state,
that doesn’t mean america will disappear from the face of the earth, but the reality
truly is ‘death from a thousand cuts’. It’s not just China’s rise, but america’s
decline and fall with the concomitant relative rise of other nations, regions. Quite
simply, and historically factual reality has proven, nation-states cannot and have
not survived the multitude of negative, destructive, and self-destructive things
america has done and prosper as a leading nation. From perpetual war, to
pervasive corruption, fraud, criminality across all stratum including institutions,
government of american society, to what I believe as well to be an evolved
genetic bias of inherent criminality/mental illness which is ill-adapted to the
strictures of a more enlightened 21st Century by way of near instantaneously
available information, with truth and factual reality being america’s greatest
enemy. In support of the foregoing I will reiterate reasons, infra.] Debt relief
for states proposed (Washington Post) [ I’ve heard of the ‘blind leading the
blind’, but the ‘bankrupt borrowing from the bankrupt’ seems to be a nouveau
american phenomenon destined for ‘clichedom’. Previous: Governors plan
painful cuts amid budget crises (Washington Post) [ This truly is a disaster in the
making, with consequences even more dire than the grim outlook set forth by
Meridith Whitney, if that could even be fathomed. It’s really going to be all that
bad…see infra, The Economic Collapse, ‘#10 The municipal bond crisis could go
“supernova” at any time. Already, investors are bailing out of bonds at a
frightening pace. State and local government debt is now sitting at an all-time
high of 22 percent of U.S. GDP. According to Meredith Whitney, the municipal
bond crisis that we are facing is a gigantic threat to our financial system….“It has
tentacles as wide as anything I’ve seen. I think next to housing this is the single
most important issue in the United States and certainly the largest threat to the
U.S. economy.” Economist: United States Worse Off than Greece Dr. Laurence
Kotlikoff is an economics professor at Boston University. He says the Treasury
and the government are fudging the national debt numbers. Kotlikoff says the
United States is bankrupt and we don’t even know it.
Obama: US needs better math, science education (AP) [Well, one thing we
absolutely know as true is that there’s at least one person in america in need of
better math skills and his name is’ wobama the b’ (for b*** s*** - despite campaign
promises to the contrary he actually ramped up war spending also despite
defacto bankruptcy of the nation – bush, if only it was just his math skills,
ramped of war spending while cutting taxes … to his base, a wobama’s on the
same page – how totally pathetic both of them are / were) … but let’s not kid
ourselves, from capital hill to wall street, etc., math skills are indeed lacking. ]
Alan Greenspan Takes Credit For The Financial Crisis Levin “The morning after
we learned of the news,” Greenspan said of the Dow Jones plunging 6.98
percent that day in September 2008, “I was able to look myself in the mirror
and say, ‘Hey, not bad.’” Sure, if he’d tried just a little harder he could’ve done
better– 10 percent would’ve been a dream– but really, all things considering,
not bad! Solid B+ work. [NYU via BI]
Internet tool shows French web surfers 'Jewish-curious' (AFP) - AFP - An Internet
tool that flags up popular search words has spontaneously revealed a deeper
trend: French web surfers' exceeding curiosity about whether their politicians are
Jewish. [ To their credit, at least in France it might matter … to america’s discredit
and self-destruction, it doesn’t even matter … as Buchanan aptly put it ‘capital
hill is occupied israeli territory and just proved it again with the foolhardy veto of
the un resolution condemning illegal israeli settlements. ]
] The standoff in Wisconsin over budget cuts spread to other states on Tuesday
as union leaders began to organize protests in other capitols and Democrats
in a second state, Indiana, effectively staged a walkout.
Gaddafi vows to maintain hold on power Libyan strongman says he'll fight 'until
the last drop of my blood' (Washington Post) [ His latter wish is the world’s
command. ‘Something there is that doesn’t love a dictator, that wants them down’
… (Excuse me … I was thinking of walls and ‘Mending Wall’, Robert Frost). Libya
Internet Shut Down Amid Protests, Per Multiple Reports [ Once again, as in
Egypt, this, the internet, inherently global in nature is the lynchpin, tampering
with or stifling same marking the end of any regime. Let this be a warning; viz.,
you cannot put the genie back in the bottle! 41 years? Gadaffy duck should duck
‘cause he’s done. I mean, look at him, he’s the singular equivalent of the multiple
bushes. He’s totally burnt out (as much or more so than dumbya bush or
mubarack) and quite done! ] Reports have emerged late Friday that Libya appears
to have shut down its Internet due to widespread protests, less than a month after
Egypt did the same. ] With rebels apparently controlling much of the eastern half
of the country, the violence engulfing Libya is already the worst in more than a
month of unrest that has toppled other regimes.
I knew there was something especially (but typically) not right in Friday’s (and
Thursday’s) trade; and, sure enough, it was a full moon Friday as per lunar
calendar (a must in today’s markets owing to the prevalence of lunatics /
criminally insane on wall street).
Have Stocks Really Moved Sideways Since 2000? McCurdy ‘Last week, we
reviewed the inverse secular relationship between stocks and the price of gold.
Stocks have been in a secular downtrend since the bull market from the 1980s
terminated early last decade, while gold has been in a secular uptrend. Many
analysts do not like to label the current secular environment in stocks as a bear,
instead referring to it as a "sideways" market. Indeed, a quick review of the S&P
500 index monthly chart shows that it has essentially bounced sideways for the
past 11 years.
[Click all to enlarge]
[chart}
Since the secular peak in 2000, the S&P 500 has produced a compound annual
return of 0.6%, so any long-term investors who bought at the top would appear to
have broken even. Have they really? It is important to note that we are talking
about nominal values and returns. When you compare stock market performance
to hard assets like commodities and gold, you see a very different picture.
[chart]
[chart]
Since 2000, the S&P 500 index has experienced a persistent decline in terms of
the Continuous Commodity Index (CCI) and the price of gold. The CCI ratio chart
has decreased by 72% and the gold ratio chart has decreased by 82%. Suddenly
that "sideways" market doesn't look so sideways. If you extend both charts back
to the beginning of the previous secular bull market in equities, you see what you
would expect: A persistent rise in stock market valuations until the secular peak
early last decade (note that we have replaced the CCI with the CRB index in the
following chart for display purposes, since the available CCI data do not cover
the entire secular bull).
[chart]
[chart]
Both ratio chart downtrends are currently healthy, with the CCI ratio recently
experiencing another long-term breakdown and the gold ratio forming a
consolidation pattern since early 2009. Until these secular declines form
confirmed bottoms, the secular bear market in stocks will remain in control.
[chart]
[chart]
Despite mainstream assertions to the contrary, the issues that led to the market
crash in 2008 have not been materially addressed. Our historically excessive
public and private debt remains, festering beneath the surface of this "strong"
economic recovery. As usual, we have chosen the quick fix route and kicked the
proverbial debt can down the road, hoping that the underlying problems will
somehow cure themselves without requiring us to make the hard choices that
have always been required in the past. The continuing strength in the gold market
indicates that no such magic resolution process is currently underway.
[chart]
When was the last time a strong, healthy secular uptrend in gold provided an all-
clear signal for the economy and suggested that the structural problems that
have been plaguing it during recent years have been resolved? The answer to
that question is never. Perhaps this time is different. We will see.’
Weighing the Week Ahead: The Beat Goes On Miller ‘…The explanation is much
simpler. The Beat Goes On.
The grocery store's the supermart, uh huh.

Little girls still break their hearts, uh huh.
And men still keep on marching off to war
Electrically they keep a baseball score
{Refrain}
Grandmas sit in chairs and reminisce
Boys keep chasing girls to get a kiss
The cars keep going faster all the time
Bums still cry, "Hey buddy, have you got a dime"
Sonny & Cher may not have been market gurus, but the song captures the
current market action. The "drums keep beating."
… The Bad There was some important bad news for the economy. The story is
rarely one-sided. There is a continuing problem on several fronts, a widely known
"wall of worry" that is already reflected in current market prices.
• HOUSING SALES OVERSTATED. The most important bad news of the week
came from the CoreLogic Year-end Summary of Trends. I read their reports,
and so should you. Calculated Risk has a nice summary, showing that the
existing home sales from the National Association of Realtors may be
overstated by 15%. Consistent and aggressive critic (another of our
featured sources) Barry Ritholtz has this take.
• RETAIL SALES. This was a big disappointment.
• INITIAL JOBLESS CLAIMS. The highly volatile series moved higher, but the
trend continues lower. It is not good enough to improve the employment
picture…’
Correlating U.S. Demographics, Trade Deficits and Employment Lounsbury’

Recent analysis found that the U.S. trade balance deficit for manufactured goods was
the equivalent of almost 29 million jobs over the past 19 years. The analysis referred to
these as exported jobs.
What if some of the manufacturing jobs had been retained? How would U.S.
employment have been affected? Would we have anything like the high unemployment
rates experienced over the past two years?
The following analysis shows that the U.S. simply didn't have the population needed to
produce what we have been consuming. The trade deficit is actually a demographic
problem as well as a global competition problem for the U.S.
Labor Participation Rate
First let’s look at the labor participation rate over the past 60 years.
[chart]
Over the last 25-30 years the institution of two wage-earner households became
entrenched and the labor participation rate rose above 65% as of 1985. In 2010 the
participation rate fell back below 65% as a result of severe employment dislocations
produced by The Great Recession.
The following graph focuses on the years starting with 1992. Two arbitrary areas are
identified by the author, a “peak” participation rate and a “healthy” rate. These arbitrary
definitions may be subject to debate.
[chart]
These two definitions are used to examine counterfactual participation rates in the
following discussion.
Manufacturing Jobs Have a High Multiplier
In the previous article a graph was presented which showed the number of
manufacturing jobs “exported” each year starting with 1992. What was not discussed in
the previous article is that jobs have multiplier factors. If one person receives a wage
much of that money is spent and that creates additional jobs. For each person working
in a particular job, other people are employed in support industries. The total of all these
additional jobs is what comprises the jobs multiplier. The mathematics can be reviewed
here.
The multiplier varies for different types of jobs and is determined by collecting
experimental data in the actual economy. Manufacturing jobs have high jobs multipliers.
A table of jobs multipliers is shown in the following table:
[chart]
A number of data sources have been reviewed for the value of the manufacturing job
multiplier in the U.S. These are shown in the following table.
[chart]
Active links from the table:
Connecticut.gov
Economic Policy
Institute
Content First
Washington State.gov
California.gov
A jobs multiplier of 3.0 means that each job represents a total of three jobs: the original
job plus two others that exist only because that original job is there. One estimate for all
employment is an average multiplier of 1.9. For manufacturing the multiplier is close to
3. For every manufacturing job gained or lost directly, two other jobs, on average, are
gained or lost.
For the rest of this article we will use the multiplier of 2.9. Using that value, the number
of jobs lost each year since 1992 because of the trade deficit for manufactured goods
has been calculated and is shown in the following graph. The lowest line represents the
number of direct manufacturing jobs exported. The second line is the number of
dependent jobs lost and the top line is the total number of jobs, direct and indirect, that
were exported.
[chart]
What If All “Jobs Exported” Had Been Retained?
If all the direct and indirect jobs that have been ‘exported” had been retained, what
would the unemployment picture have been forth past 18 years? This is displayed in the
following graph.
[chart]
There are two shaded areas in the graph. The blue area encompasses all the
commonly accepted values for NAIRU. The salmon area defines where labor shortages
would occur, the lower the percentage the greater the shortage.
The red line shows the counterfactual case calculated for the “exported jobs” being
retained and the labor participation rate staying at the peak (67%). The green line
shows the counterfactual unemployment rate provided the participation rate actually
experienced is used.
A reasonable conclusion from this graph is that, to retain the number of jobs estimated,
labor would have to be imported or the labor participation rate would have to rise above
the all-time peak. Without some combination of those two factors there would have
been labor shortages 14 of the last 16 years (1994-2007)
Note: NAIRU refers to a Milton Freeman defined term: Non-Accelerating Inflation Rate
of Unemployment
What If “Jobs Exported” Had Been Reduced by Half?
The next counterfactual situation examined is the case where half of the “exported jobs”
were retained each year. The following graph shows the official unemployment rate
average each year (blue), with two counterfactual unemployment rates.
[chart]The red line shows the counterfactual case calculated for ½ of the “exported
jobs” being retained and the labor participation rate staying at the peak (67%). The
green line shows the counterfactual unemployment rate provided the participation rate
actually experienced is used.
What If 25% of “Jobs Exported” Had Been Retained?
The following graph shows official and counterfactual unemployment rates if 25% of the
“exported jobs” had been retained.
[chart]
Even if 75% of the “exported jobs” had occurred, the U.S. would still have had labor
shortages almost in seven of the past 19 years. The unemployment rate would have
been below 4% for1997-2000 and 2005-2007. If the labor particpation rate had
remained at peak (67%) throughout this time period, there would have been labor
shortages only in the last four years of the 2oth century.
Caveats
There are many assumptions to be questioned in this analysis. A few are listed here:
• Would our trade surplus in services have been less (thereby reducing service
employment) if there had been no deficit for goods?
• Would FDI (foreign direct investment) in the U.S. have been less? See Elliott
Morss. FDI in the U.S. creates jobs.
• Would the FDI by the U.S. have been reduced to offset any loss of FDI in the
U.S.?
• Is the multiplier for manufacturing jobs accurate for the type of manufacturing that
was "exported"?
• Are the assumptions about peak and healthy participation ratios really
appropriate?
I expect there are many more open issues here and I expect that readers will eagerly
point them out to me.
Conclusion
The U.S. has been on a consumption binge. The examination discussed here indicates
that the country has been living beyond its means to produce what it consumes. That
doesn't even consider that we have to import more than half of the energy used. If the
production of even part of the production of goods that have been imported over the lat
14 years had been retained domestically, there would not have been enough labor
available to fill the jobs that would have been required.
So the U.S. has been living beyond its means in three ways:
1. Beyond its means to provide energy used;

2. Beyond its means to pay; and
3. Beyond its means to produce what it consumes.
Further work is in progress to examine:

• How much more labor force participation would have been needed to prevent
labor shortages from occuring; or
• How much labor would have had to have been imported; or
• What combinations of the two would have done the trick.
There is one additional area being studied: How does the undocumented worker influx
that has occurred over the past two decades interact with these labor requirement
scenarios.
More articles on this topic will be forthcoming in the next few weeks…’
Buy the Dips or Sell the Rally - The One Indicator that Knows Maierhofer,
February 22, 2011, 5:51 pm ‘Low-Risk. The term 'low-risk' has the same appeal in the
investment world as the enticing little word 'free' in the advertising world.Some
advertising executives claim that 'free' is the most powerful word in the ad world. 'Low-
risk' might be the most powerful concept in the investing universe.If you read the ETF
Profit Strategy Newsletter you are very familiar with the term low-risk entry. If you don't,
here's a quick summary and crash course of an indicator that's been 100% accurate
over the past 6 months.Low risk entries for various indexes are identified or triggered by
a relative strength indicator called percentR. PercentR is expressed on a scale from 1 -
100. Readings above 80 are considered overbought, readings below 20 oversold.If you
read the ETF Profit Strategy Newsletter you are very familiar with the term low-risk
entry. If you don't, here's a quick summary and crash course of an indicator that's been
100% accurate over the past 6 months.Low risk entries for various indexes are
identified or triggered by a relative strength indicator called percentR. PercentR is
expressed on a scale from 1 - 100. Readings above 80 are considered overbought,
readings below 20 oversold.
Uncannily Accurate
A picture says more than a thousand words and the chart sheds more light on the value
of percentR. As you can tell by the red line, following the W bottom in November (not
shown in the chart), percentR spiked above 80 (first yellow circle) around S&P 1,210.
This was the initial buy signal. [chart]With two exceptions, percentR remained above 80
ever since. The two dips below 80 (yellow circles) on January 19 and 28 triggered a
low-risk entry. Even though investors were worried about riots in Egypt, according to
percentR it was time to buy.This bullish low-risk entry is valid as long as the underlying
index (in this case the S&P 500) does not close below that day's low (white line). In
both instances, the S&P (SNP: ^GSPC) stayed above that low and went on to rally over
5%.
Other Low-Risk Entries
PercentR works with stocks and indexes alike. Similar low-risk entries were identified by
the ETF Profit Strategy Newsletter for the Dow Jones (DJI: ^DJI), Nasdaq-100 (Nasdaq:
QQQQ - News), Nasdaq Composite (Nasdaq: ÎXIC), and the Financial Select Sector
SPDR (NYSEArca: XLF - News) on January 28. The Russell 2000 (Chicago Options:
^RUT) was the weakest index and registered its low-risk entry sooner.
Corrections are Healthy, if ...
'Corrections are healthy' is one of many ambiguous Wall Street sayings. If you judge the
current 'bull market' purely on this statement, this market is one sick puppy - there
hasn't been more than a 2.5% correction in nearly a quarter - and needs a serious
correction to be jolted back into healthy territory.Put yourself in a time capsule and
zoom back to April 2010 when the major U.S. indexes declined nearly 20% before the
promise of QE2 resurrected stocks. There was little conviction then that corrections are
healthy. The correction had rattled the investing masses and shaken out many
stockholders before the market went on to rally again.PercentR is the canary in the
coalmine that identifies a deeper correction. No significant sell off happens without a
failed low-risk entry.A failed low-risk entry occurs when the indexes close below the low
of the day that triggers the low-risk entry (white lines on the chart). The last failed low-
risk entry happened in November 2010 when stocks chopped around for a few weeks
and ultimately lost about 5%. Another failed low-risk entry flashed a sell signal on
August 11 and ushered in a 21 day, 8% sell off.
The Right Tool for the Job
Any craftsman will tell you that there are limitations to any tool, but there's a tool for
each job. percentR is the right tool for the current job.After a parabolic rally, the job at
hand is to distinguish whether pull backs are a buying opportunity or a warning signal.
Should you buy the dips or step on the sidelines (or even short the market)?The ETF
Profit Strategy Newsletter consistently monitors percentR as part of measuring the
health of the market and sends out special alerts when a low-risk entry (or failed low-
risk entry) has been triggered. Considering today's sell off, it sure will be valuable to see
what percentR has to say. Buying opportunity or time to sell?’
"Are Your truly dead?" The IMF, Watson and Schrodinger's Cat. [ On forbes, of
new york / new jersey the hotbed of mob / wall street fraud and corruption and
leading sinkhole of the nation, and of failed capitalist tool fame, do they waste an
article and time on fraud / spam as a matter of course. I get a few or more of these
routed to my spam box each day. Moreover, invariably upon visiting the forbes
site / article my anti-virus picks up and blocks numerous malicious adware, url,
etc., queries (it’s become pathetic the number and amount of s**t, ads, scripts
that are crammed into some web pages these days); and, almost invariably,
coming from the forbes ny / nj faux capitalist tool sight, all for nought! What a
waste of time forbes et als are! ]
US Taxpayers Give $150 Million to Post-Revolutionary Egypt Zero Hedge |
Taxpayer funds go to buy the love and admiration of a society in transition.
Street’s war against poor & middle classes.
Geithner Helping the Chinese? Reuters | Diplomatic cables lay bare China’s
growing influence as largest U.S. creditor.
Insider Report: US Government Will Confiscate Gold When It Touches $2000 It’s
no secret that the US government is broke, the US dollar is crashing and
losing credibility globally, and the IMF, China, France and others have
publicly stated their desire to eliminate the dollar as the world’s primary
reserve currency.
Barclays bank forced to admit it paid just 1% in corporation tax in 2009 Barclays
Bank has been forced to admit it paid just £113m in UK corporation tax in
2009 – a year when it rang up a record £11.6bn of profits.
Obama’s FY 2012 Budget Is A Tool Of Class War Obama’s new budget is a

continuation of Wall Street’s class war against the poor and middle class.
The effect of the Federal Reserve’s “quantitative easing” on inflation,
interest rates, and the dollar’s foreign exchange value are yet to hit. When
they do, Americans will get a lesson in poverty.
Is China Hoarding Gold In Anticipation Of A Global Financial Implosion? 10 Facts

About Gold Fever In China That May Surprise You China officially has gold
fever. Chinese demand for gold in 2011 is being called “explosive” and
“voracious”. China imported five times as much gold in 2010 as it did in
2009, and this year gold sales in China are projected to easily set another
new all-time record.
Valuations for Five Major Banks with Bearish Warnings Bauer ‘…The general
market is currently over-valued, over-bought and is showing signs of
deterioration, especially in the area of breadth. Interest rates are on the rise and
inflation is already a serious problem. This means that you must consider holding
cash or perhaps taking bearish positions…’
World Oil Prices Soar After Libyan Unrest
VOA News | World oil prices rose sharply on Monday as violence in Libya
sparked worries that energy supplies could be disrupted.
Max Keiser on Revolts: Americans Joining Middle East Uprising Trend
Dozens of people have been reported killed in the Libyan capital Tripoli overnight
as violence continues to spread across the country. Key administrative buildings
have been set on fire, with thousands of anti-government activists still on the
streets calling for an end to the 41-year rule of Colonel Gaddafi. To find out more
about how the Middle East upheaval is impacting global economic patterns, we’re
joined live now by RT’s financial guru Max Keiser…
Oil Jumps to Two-Year High, Gold Reaches $1,400 on Mideast; Stocks Decline
Oil rose to a two-year high and gold rallied for a sixth day surpassing $1,400 an
ounce, as tension in the Middle East escalated. Stocks fell for the most in a
month as Eni SpA led companies with operations in Libya lower.
The Simple Reason A Bahraini Revolution Could Trigger A Brand New Financial
Crisis
As if geopolitical instability in the Mideast weren’t inherently reason enough for

investors to worry, here’s another angle to consider.
Ongoing Overnight Short Squeeze Takes Silver To Fresh 31 Year High
Silver takes out $33.10, hitting a fresh 31 year high, as the relentless short
squeeze leads to more body bags, and the only flight to safety currency is now
the non-dilutable one (with gold on the verge of $1,400).
Wall Street Shares Fall Sharply Amid Libyan Unrest New York Times | Political
turmoil in the Middle East and North Africa continued to haunt financial markets
Europe Stocks End Lower As Libya Worries Escalate Dow Jones | The Stoxx
Europe 600 index shed 0.6% to close at 285.38.
Gold, Silver, Crude Oil Sharply Higher As Violence in Libya Climbs Forbes |
Stand-off in Libya has triggered renewed speculation in precious metals and
crude oil prices.
Cables show China used debt holdings to press US Leaked diplomatic cables
vividly show China’s willingness to translate its massive holdings of US debt
into political influence on issues ranging from Taiwan’s sovereignty to
Washington’s financial policy.
Oil Goes Berserk In Electronic Trading As WTI Passes $98 As Zero Hedge
advised in early January when the severity of the Maghreb revolution was
made all too clear to anyone not willing to stick their head in the CNBC sand,
oil could well be the buy of a lifetime ahead of a downward spiral of
unprecedented geopolitical proportions.
Parabolic Flight To Silver, As April Crude Touches $98.48, Irrelevant Dollar Unch
There was a time, long ago, when the dollar was a flight to safety instrument.
Those days are gone. DXY barely budging as the overnight session begins,
while silver has already put $34 in the dust. Last: $34.26 and parabolic.
Central Economic Planning at its Worst Last week, the Financial Crisis Inquiry
Commission (FCIC) presented its results to the Financial Services
Committee. As with most other politically-appointed commissions, the
results of the FCIC’s investigation were easy to predict.
National / World
Gaddafi vows to maintain hold on power Libyan strongman says he'll fight 'until
the last drop of my blood' (Washington Post) [ His latter wish is the world’s
command. ‘Something there is that doesn’t love a dictator, that wants them down’
… (Excuse me … I was thinking of walls and ‘Mending Wall’, Robert Frost). Libya
Internet Shut Down Amid Protests, Per Multiple Reports [ Once again, as in
Egypt, this, the internet, inherently global in nature is the lynchpin, tampering
with or stifling same marking the end of any regime. Let this be a warning; viz.,
you cannot put the genie back in the bottle! 41 years? Gadaffy duck should duck
‘cause he’s done. I mean, look at him, he’s the singular equivalent of the multiple
bushes. He’s totally burnt out (as much or more so than dumbya bush or
mubarack) and quite done! ] Reports have emerged late Friday that Libya appears
to have shut down its Internet due to widespread protests, less than a month after
Egypt did the same. ] With rebels apparently controlling much of the eastern half
of the country, the violence engulfing Libya is already the worst in more than a
month of unrest that has toppled other regimes.
Gaddafi Defies Revolt With Tanks, Planes Libya’s Muammar Gaddafi used tanks,
helicopters and warplanes to fight a growing revolt, witnesses said on
Tuesday, as the veteran leader scoffed at reports he was fleeing after four
decades in power.
Libyans say Gaddafi “butcher”, flick V-for-victory The Libyan side of the Egyptian
border was controlled on Tuesday by anti-Gaddafi rebels armed with clubs
and Kalashnikov rifles who welcomed visitors from Egypt, a Reuters
correspondent who crossed into Libya reported.
Middle East Uprisings: Order Out of Chaos Kurt Nimmo | An Islamic consolidation
of power will feed the paranoia of the West and initiate the plan for a new
war.
Globalists Seek To Hijack Middle East Revolution To Topple Iran Paul Joseph
Watson | US military-industrial complex looks to exploit demonstrations to
weaken Ahmadinejad’s regime.
Wisconsin’s economic protests will spread as health care costs bankrupt states
Mike Adams | Today’s pharma-centric medical system would rather kill the
patient than lose its monopoly.
Commodities Explode as BP Prepares to Evacuate Staff From a Burning Libya

Zero Hedge | Is this one of those “who could have possibly seen it coming”
moments?
Libya Conquered in the Dark Tony Cartalucci | The Egyptian and Tunisian protests
are entirely the result of Western meddling.
Libya air force bombs protesters heading for army base Haaretz | Libyan military
aircraft fired live ammunition at crowds of anti-government protesters in Tripoli.
Gaddafi flees Tripoli as protesters set the Libyan parliament building alight Mail
Online | Anti-government demonstrators breached the state television building
and set government property alight.
Gaddafi’s Israel Threat Linked To Libya Riots? Is it merely a coincidence that less
than a week after Libyan leader Muammar Gaddafi threatened Israel by
calling on Palestinians to capitalize on the wave of popular uprisings in the
Middle East by massing peacefully on the borders of the Zionist state, his
own regime is teetering on the brink of extinction following massive anti-
government riots in Benghazi and Tripoli?
Reports Suggest Libyan Airforce Is Using Fighter Jets To Fire At Protesters

Reports have begun circulating that suggest the Libyan airforce is attacking
protesters with live ammunition from jets. Are these the desperate last
throws of tyrants or propaganda from the elite overlords hanging them out
to dry?
‘Bilderberg Hand’: Deadly chaos in Libya, Bahrain as Wave of Rage spreads

Regional expert Adrian Salbuchi says that global dominance groups are
behind the wave of revolts.
In Libya Revolution, nearly 400 killed The International Federation for Human
Rights says as many as 400 pro-democracy protesters have been killed so
far in the popular Libyan Revolution.
Globalists Seek To Hijack Middle East Revolution To Topple Iran While the
current global revolt sweeping across the Middle East and North Africa is
born out of a universal human cry for freedom, food security and a decent
standard of living, it is important to understand that the global elite are
waiting in the wings to exploit the chaos as an opportunity to re-order the
geopolitical landscape in their image, particularly by exploiting the
demonstrations as a vehicle through which to weaken and topple the Iranian
government.
The Popular Uprising in Egypt. The Military Machine Remains Intact. The Political
Status Quo Prevails The same group of Egyptian generals running Cairo
presently formed the backbone of the Mubarak regime. There has been no
real change in government. The military junta represents a continuation of
the Mubarak regime. The previous so-called civilian administration and the
Egyptian High Council of the Armed Forces are virtually the same body.
Protests spread to Libyan capital, troops defect ABC News | Demonstrations have
begun in Tripoli and witnesses say security forces are using live ammunition and
tear gas on protesters.
Mubarak and Ben Ali comas: What would Tacitus say? The Times | Will desposed
dictator syndrome become contagious?
Egyptians Return to Street to Push Army on Reforms WSJ | Hundreds of

thousands of Egyptians rallied Friday to celebrate former President Hosni
Mubarak’s ouster.
The Middle East and Then the World Activist Post | The globalist fueled color
revolutions are attempting to profoundly transform entire regions of the
planet in one sweeping move.
Bahrain uses UK-supplied weapons in protest crackdown Guardian | The British

government has launched a review of arms exports to Bahrain.
Alex Jones: NWO orchestrated protests RT America | Protests were orchestrated

by the NWO and use this as fury in the streets to roll in another layer to the
police state.
Why can’t the US legalize drugs? There’s ‘too much money in it,’ Clinton says
Raw Story | Asked by Denise Maerker of Televisa what she thought of drug
legalization, Clinton said it was unlikely to work.
Public Worker Protests Spread From Wisconsin to Ohio In what union leaders say
is becoming a national fight, protests against legislation to restrict public
employees’ collective-bargaining rights spread from Wisconsin to Ohio.
The Middle East and Then the World Beginning in North Africa, now unfolding in
the Middle East and Iran, and soon to spread to Eastern Europe and Asia,
the globalist fueled color revolutions are attempting to profoundly transform
entire regions of the planet in one sweeping move.
CIA Coup-College: Recycled revolutionary “props” Tony Cartalucci | Suspicious

similarities between Egyptian unrest and known US-backed uprising in
Serbia.
The Hidden Weakness of Natural Health Laws Brandon Turbeville | The U.S. has
seen increasing interest in natural healthcare, vitamin and mineral
supplements.
Libya defiant as hundreds of protesters feared dead Guardian | Witnesses

describe ‘massacres’ as Libyan troops shoot unarmed demonstrators in
Benghazi
Iran Naval Ships to Cross Suez Canal on Monday Reuters | Two Iranian naval
ships will sail through the Suez Canal to the Mediterranean on Monday.
Will The Great Firewall Of China Prevent Tomorrow’s Beijing “Jasmine

Revolution”? Zero Hedge | There are postings from Chinese activists calling
for protests in major cities.
Widow: Pentagon aide Wheeler ‘killed by hitman’ UK Daily Mail | Prominent

Washington aide John Wheeler was assassinated by a hitman in a targeted
killing, his widow has claimed.
Arrested US official is actually CIA contractor (AP) ‘…Davis, a former Special
Forces soldier who left the military in 2003, shot the men in what he
described as an attempted armed robbery in the eastern city of Lahore as
they approached him on a motorcycle. A third Pakistani, a bystander, died
when a car rushing to help Davis struck him. Davis was reportedly carrying a
Glock handgun, a pocket telescope and papers with different
identifications…’
Libya, Bahrain, Iran, Yemen and Other Arab Governments Killing Protesters
Mubarak was not the only brutal dictator in the Arab world.
Bahrain uses UK-supplied weapons in protest crackdown The British government

has launched a review of arms exports to Bahrain after it emerged that the
country’s security forces were supplied with weapons by the United
Kingdom.
Libya unrest death toll reaches 84: HRW At least 84 protesters have lost their
lives and hundreds wounded in Libya in three days of pro-democracy
protests in the African country, Human Rights Watch (HRW) says.
Gadhafi's hold on Libya weakens in protest wave (AP) Deep cracks open up in
Moammar Gadhafi's regime after more than 40 years in power, with diplomats
abroad and the justice minister at home resigning, air force pilots defecting and a
fire raging at the main government hall after clashes in the capital Tripoli.
Protesters called for another night of defiance in Tripoli's main square despite the
government's heavy crackdown.
Rumsfeld says $2.3 Trillion never lost, just untracked (yeah … riiiiight! Untracked
into their pockets … untracked WeAreChange | Activists confront Rumsfeld on
missing Pentagon funds.
Muslim Brotherhood Cleric Calls for Fatwa on Gadhafi UPI | “It is not heroism to
fight your people and to hit them with missiles,” Qaradawi said on al-Jazeera.
Muslim Brotherhood: Gaddafi’s son wounded, dictator has fled International

Business Times | The report says Gaddafi, his wife and daughter have fled the
country.
Medvedev Warns “Fanatics” Will Take Over Middle East Kurt Nimmo | Says color
revolution will not be tolerated in Russia.
Medvedev: Revolutions Could Lead To “Disintegration” Of Middle East Paul

Joseph Watson | Aftermath of revolts could “set the region on fire for
decades to come,” warns Russian President.
Defiant Gaddafi vows to die as martyr Reuters | Gaddafi vowed to die in Libya as a
martyr in an angry television address.
Police Would “Absolutely” Use Force On Wisconsin Protesters Paul Joseph

Watson | Despite publicly condemning Governor Scott Walker’s proposal,
troopers would obey orders to crush dissent.
Alex Jones: The “Justin Biebler” Rant Infowars.com | Alex talks about real heroes,
not manufactured plastic heroes pushing carbon taxes.
Rising food prices nearing danger point: World Bank World Bank president
Robert Zoellick warned leaders of the top global economies Saturday that
the world is reaching a danger point where soaring food prices threaten
further political instability.
UNREST IN THE MIDDLE EAST Bahrain military retreats after shootings
(Washington Post)
• In Cairo, crowds press military for more reforms

• Scores reported killed in Libya | Algerian unrest
• OPINION: In Mideast, it's not a Facebook revolution
• Full report | Interactive map: Mideast in turmoil
U.S. vetoes Security Council resolution denouncing Israeli settlements

(Washington Post) [ Drudgereport: Hillary Clinton: Israeli Settlements
'Illegitimate'… [We know that hill … We’ve known that for quite some time
along with their illegal nukes, war crimes, etc…The whole world knows that
hill… so don’t just talk about it … DO SOMETHING! ] ... Yes! … in pervasively
corrupt, defacto america’s self-defeating, self-destructive way they are doing
something … U.S. vetoes Security Council resolution denouncing Israeli
settlements … Sounds like a plan! … right! ]
SEC names Sean McKessy to head new whistleblower office (Washington Post)
The appointment sets off alarm bells among whistleblower advocates.
[ Indeed it should, regardless of ‘who’. In pervasively corrupt, defacto
bankrupt america there is always that pre-calculation: juice / no juice, payer
(bribes/contributions) / non-payer, potential after gov’t job opportunity / no
job opportunity, etc.. Video: Why Isn’t Wall St. in Jail? [ This truly will
prove to be the story of the century (albeit an abbreviated one and a
turning point toward america’s intractable decline) owing to what will
ultimately be the lynch-pin of global economic / financial collapse ushering
in an era of great scarcity in more ways than can be imagined. The
pervasively corrupt, defacto bankrupt american nation / government has
literally underwritten this massive fraud at the expense of the vast
majorities directly and indirectly, precluded prosecution while obfuscating
the substantial crimes, literally becoming accomplices thereby. There is
absolutely no excuse for what is essentially a defalcation and abrogation of
duty. I was watching a somewhat obscure film recently which (though
elsewhere on this page and site I’ve set forth alarming crime statistics
clearing showing america as number 1 in all categories by wide margins)
which set forth the statistic that america has 85% of the world’s serial
killers (and I’d go further in saying it is likely that america has a similar lead
in war crimes, etc.) ] MSNBC | Cenk Uygur talks to Matt Taibbi about his
latest Rolling Stone article. …… I mean, give me a frickin’ break! Let’s
get real here … probably the most egregiously dangerous years for
whistleblowers were the clinton years when even potential whistleblowers
were targeted; ie., Mary Mahoney, former clinton security team members,
etc., see http://albertpeia.com/bodycount.htm ie., Mary C. Mahoney: 25,
murdered at the Georgetown Starbuck's coffee bar over the 4th of July '97
weekend. She was a former White House intern who worked with John
Huang. Apparently she knew Monica Lewinsky and her sexual encounters
with Bill Clinton. Although not verified, it has been said that Lewinsky told
Linda Tripp that she did not want to end up like Mahoney…Steve Willis,
Robert Williams, Todd McKeahan & Conway LeBleu: Died Feburary 28,
1993 by gunfire at Waco. All four were examined by a pathologist and died
from identical wounds to the left temple. All four had been body guards for
Bill Clinton, three while campaigning for President and when he was
Governor of Arkansas.They also were the ONLY 4 BATF agents killed at
Waco…, etc. but the bushies / cia / wall street are comparable and as well
in some different, more subtle ways; ie., discrediting, false charges, etc.. ]
The appointment sets off alarm bells among whistleblower advocates.
A frayed alliance: Obama and unions Wis. budget impasse deepens

(Washington Post) [ Frayed? How ‘bout flayed, fillet, and souffled … Or, screwed,
nude, and double chewed … Drudgereport: OBAMA BACKS UNION UPROAR
PELOSI BACKS PROTESTERS: 'I STAND IN SOLIDARITY'...
DEBT NOW EQUALS ENTIRE ECONOMY
OBAMA AGENDA IS OVER
Obama refers to himself as 'The Gipper'… [ Riiiight! …anything you say
wobmama the b for b*** s***… or maybe the bipper, the chipper, or the yankee
clipper (the new joltin’ joe) …sounds like he’s losing it! ] ...
BUDGET WOES FORCE STATES TO CONSIDER ABOLISHING '12 PRESIDENTIAL
PRIMARIES...
STATE BUDGETS ON THE BRINK: CA, TX, IL, NY, NJ...
WISC GOV: 'NOT GOING TO BE BULLIED, INTIMIDATED'...
Orders state troopers to bring Dems to Capitol...
'There Is Fear For Scott Walker's Safety'...
Dem Sen: We'll stay away for weeks...
WALKOUT: Milwaukee Schools closed; teachers call in 'sick'...
REPORT: Average city teacher compensation tops $100,000...
PAPER: GET BACK TO WORK!
DNC playing role in protests...
Jesse to the Rescue: Jackson rallies protesters...
'A real Martin Luther King moment'...
Union Fight Heats Up...
Republicans vow to cut spending in state capitols...
Protests Spread to Ohio...
Michigan...
'Coming To Minnesota'...
Idaho offical target of threats over education reform plan...
Egypt in America?
'Day of Rage' Hits Wisconsin over state unions...
Madison schools closed; 1,100 teachers call in 'sick'...
Obama: 'Assault on Unions'...
Obama-founded OFA spearheading effort to defeat bill...
Boehner: 'Suspend these tactics'...
DEMS FLEE STATE HOUSE
SENATE DEMOCRATS FOUND -- AT A RESORT IN ILLINOIS!
Gov. Walker calls on Dems to return, vote...
Protesters, supporters clash in Ohio over union bill...
Activists swarm Boehner's Capitol Hill home; Chant 'don't tread on DC'..
Carney: Stimulus 'Goals Have Been Met'...
GALLUP: Unemployment hits 10%...
Feds Borrow Additional $29,660/Household Since Obama Signed Stimulus...
Ratings Downgrades Loom for Cash-Strapped States...
Hillary Clinton: Israeli Settlements 'Illegitimate'… [We know that hill … We’ve
known that for quite some time along with their illegal nukes, war crimes, etc…
The whole world knows that hill… so don’t just talk about it … DO
SOMETHING! ] ...
Offended Mubarak refuses calls from Obama...
Ahmadinejad: Obama can't spell his own name (True … it’s ‘w o b a m a’ with ‘the
b for b*** s***’ his surname … he’s so pathetic and a total caricature / joke!) ...
Egypt's protests flare despite military warning...
Libya set for 'day of anger'...
Thousands of police confront protesters in Yemen...
Riot police storm Bahrain camp; 2 reported dead...
ABCNEWS Correspondent Beaten...
100 Egyptians reach Italy amid Arab exodus...
CARTER: Muslim 'hood nothing 'to be afraid of'...
PAPER: Senate hearing turns into farce as American ignorance on Egypt
revealed...
USA TO REBUKE ISRAEL AT UN
Poll: Majority of Republicans Doubt Obama's Birthplace...
Agents Shot in Mexico...
WORRIES OBAMA OFFICIALS...
ICE IN VICE...
GAO: Feds have 'operational control' of 44% of border; just 15% 'air tight'...
DAY 3: 'Watson' the computer creams human 'JEOPARDY!' champs...
REPORT: Steve Jobs receiving treatment at cancer center... PAPER:
'Reportedly sicker than previously admitted'...
ISSA MAKES A MOVE: New subpoena seeks records on sweetheart loans...
U.S. Government Shuts Down 84,000 Websites, ‘By Mistake’
'Kill Switch' Internet bill alarms privacy experts...
GOP BLASTS FCC NET RULES...
TSA agents busted at JFK for stealing $160,000 from bags...
Hillary Clinton donors indicted...
Man mugs 96-year-old -- for $5...
France Wants New Global Finance System; End of Dollar Dominance...
Fannie, Freddie bailout: $153 billion and counting...
GALLUP: Unemployment at 10.3%...
Muslim Bros plan political party...
Present Two Faces...
Pakistan Islamists warn of protests if US prisoner freed...
SECSTATE JR: Sen Kerry arrives in Pakistan, expresses 'regret', 'sorrow'...
GADDAFI TELLS PALESTINIANS: REVOLT AGAINST ISRAEL
World Bank: Food prices at 'dangerous levels'...
Gov't Motors to pay out $189 million in bonuses; some workers to get 50%
payoffs..
Deficit Expected to Jump to $1.65 Trillion...
...'slow train wreck coming'
BUDGET BLOWOUT: How big is $3.73 trillion? $12,000 from each American...
ANALYSIS: $1.5 trillion tax hike over 10 years...
AIRLINES: New fees would be $2 billion tax increase on flyers...
Sessions: Obama failed on budget...
Long Spending Fight...
Produce prices to skyrocket with freeze in Mexico, Southwest...
Clothing Prices to Rise 10% Starting in Spring...
China Replaced Japan in 2010 as Number 2 Economy...
China plans Colombian rail link to challenge Panama canal...
The March On Berlusconi...
Berlusconi indicted in prostitution probe...
Malware 'Aimed at Iran Hit Five Sites'...
Mubarak 'falls into coma after final speech'...
Egyptian military orders last protesters out of 'Liberation Square'...
Consolidates power...
Delivers ultimatum...
Boy wrestler forfeits match to female opponent... [ What a homo! Wow! I feel sorry for
those guys she actually beat (20 of them – her record was 20 and 13) … they’ll probably never get
over it … nor should they … I have to rethink my regard for Iowa, Iowa state wrestling now
presuming such stalwart championship teams to be the products of out-of-state imports … as for
the guy who forfeited, he could have easily and gently taken her down (you can easily do that with
a lesser opponent), got her in a double grapevine and grind her in a certain way into the mat, and
when she was in the throws of convulsive orgasm, she’d unwittingly arch her back, thereby
pressing her own shoulder blades to the mat, thereby pinning herself, thus enabling the homo to
say in a manner of speaking that he was making heterosexual love not war with her ……… how
pathetic and preposterous this was … and, let me remind the homo that God doesn’t care that you
wrestle a girl who wants to wrestle! ]
]
House approves dramatic cuts in federal spending Vote sets up showdown with
Dems; threat of shutdown looms (Washington Post) [ As they say on SNL,
‘What’s up with that?’. Come on! Wake up! That doesn’t even cover the interest
on a $14 trillion debt. And, how disingenuous of the author to write, ‘largest cut of
its kind since WWII’… Not in percentage terms by a long shot! … Timid Tuesday:
Is it Safe? Davis ‘… This is how we pay off our current debts and I think
bondholders are simply happy to get anything out of a country that admits it
owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global
GDP) in the form of unfunded liabilities. The funniest thing about this (and you
have to laugh) is to see Conservative pundits get on TV and talk about how we
need to cut $100Bn worth of discretionary spending to "fix" this (while continuing
to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year).
There is no fixing this and even a Republican said you can’t fool all of the people
all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE
CAREFUL OUT THERE! ‘ ] After all-night debate, House votes 235-189 to approve
plan to cut $60 billion in federal funding in what'd be the largest cut of its kind
since WWII.
The Four Horsemen of the Dow: Dave's Daily ‘No, I wasn't alive to watch the Four
Horsemen of Notre Dame play football but I did watch the DJIA today. As you
know this is a "price weighted" index. Four companies that rose today were
among the priciest: BA, CAT, CVX and TRV. The rest were mixed to flat. Imagine if
TPTB added AAPL or GOOG to the index. But, for most Americans, the DJIA is
what they see most every day if they care. Cynically, as some say, it's just
"window dressing for the tourists" to wit the current headline at the WSJ: "Stocks
Close at 2 ½ Year High". Does it really matter that four stocks accounted for the
positive headline? If, you're looking deeper into what's really going on in markets,
sure it should. But many investors aren't that curious especially when interest
rates remain near zero and POMO is ubiquitous encouraging investors to take
more risks. No matter unemployment shows no sign of improving, housing is still
in the dumps and key strategic countries (Bahrain, Libya, Egypt, Yemen, Algeria
and Tunisia) are all aflame. There wasn't any economic data today other than
Bernanke defending his policies. And, there was little earnings news. The dollar
was weak and most commodities were strong while bonds sold-off. In case you're
interested I'll be doing a webinar for SFO Magazine "Around the World with
ETFs". You may register here to listen and comment for free. Volume for an
options expiration day was light but perhaps ahead of a three day weekend is
understandable. Breadth was pretty flat per the WSJ.’
Stock Melt-Up Continues to Ignore Warnings [ While I generally warn against

short-selling as an investment strategy for all but the most successful
speculators (there are very, very few), if there ever was a time to try your luck at
same, that time is now! We’re now beyond the absurd in these overbought,
overvalued, contrived, manipulated markets. See also, Dave infra, ‘…Further, the
Philly Fed (riiiiight … that global hub of manufacturing activity) came in much
higher than expected although inside the numbers the prices paid vs prices
received disparity was the greatest since 1979. That wasn't a great time for
corporate profits. Even though there's some "discussion" within the Fed over the
effectiveness of QE operations another heavy dose of POMO was released to
trading desks again Thursday. …’ Why Isn’t Wall Street in Jail? Matt Taibbi |
Financial crooks brought down the world’s economy — but the feds are doing
more to protect them than to prosecute them. This is a not too big to fail, but a
too willing to pay bribes to jail - reality. (This really is beyond the pale, particularly
when they trumpet prosecution of $225 million in medicare frauds while wall
street’s continuing fraud in the trillions remains unprosecuted – there is no
excuse whatsoever – pervasively corrupt, defacto bankrupt america is done!). ]
Minyanville ‘Suttmeier, chief market strategist at ValuEngine.com: The stock melt-up
has the major equity averages above this week’s pivots putting the focus on the
Nasdaq and its quarterly risky level at 2853. The Dow Transports broke above the
potential double-top. Stocks are ignoring the ValuEngine Valuation Warning and
extreme overbought technical market indicators. The 10-Year yield failed at my weekly
risky level at 3.568 after holding my annual value level at 3.791 last week. Comex gold
is above my annual pivot at $1356.5 and closed above its 50-day simple moving
average at $1372.2. Nymex crude oil remains below my semiannual pivot at $87.52, but
is now oversold. The euro is above its 50-day simple moving average at 1.3377 with this
week’s risky level at 1.3636.
New Highs for the Move for the Major Equity Averages
• The Dow Industrial Average (12,288) remains extremely overbought and

closed above its weekly pivot at 12,274 testing 12,303.16. The 21-day simple
moving average rises to 12,063 with today’s risky level at 12,399.
• The S&P 500 (1336.3) closed above its weekly pivot at 1335.6, setting a new
high for the move at 1337.61. The 21-day simple moving average rises to 1306.1
with today’s risky level at 1344.4.
• The Nasdaq (2826) closed back above this week’s pivot at 2811 with my
quarterly risky level at 2853. The 21-day simple moving average rises to 2756
with today’s risky level at 2840.
• Dow Transports (5286) tested and held its weekly pivot at 5206 on Tuesday,
then breaks above its January 18 high at 5256.80 to 5306.54 on Wednesday.
Today’s risky level is 5317.
• The Russell 2000 (828.37) is above its weekly pivot at 811.80 with its July 2007
high at 862.00. Today’s risky level is 837.39.
We continue to trade under a ValuEngine Valuation Warning -- Sixteen of 16 sectors

overvalued with only 32.4% of all stocks undervalued on Wednesday, below the 35%
threshold by this measure. This also means that 67.6% of all stocks are overvalued.
10-Year Note -- (3.619) Is between my annual value level at 3.791 and my weekly risky
level at 3.568.
Comex Gold -- ($1375.3) My annual pivot is $1356.5 with the 50-day simple moving
average at $1372.2 with my monthly risky level at $1412.4.
Nymex Crude Oil -- ($85.00) Continues to trade below my semiannual pivot at $87.52
and is now oversold on its daily chart with today’s value level at $82.85.
The Euro -- (1.3567) Still above its 50-day simple moving average at 1.3377 with my
weekly risky level at 1.3636.
Housing Starts and Permits Remain Soft -- Housing Starts increased 14.6% in
January, but the gain was entirely due to a 77.7% increase in the multifamily sector.
Single family starts declined 1.0% to a 413,000 annual rate with single family permits
down 4.8%. Overall building permits declined 10.4%.
More Information From the NAHB Housing Market Index -- If you look at the
National Association of Home Builders Housing Market Index going back to 1985 it
never went below 20 until October 2007. During the 1988 to 1992 mini-crisis the lowest
reading was 20 in January 1991. For the current popping of the housing bubble this
index peaked at 72 in June 2005, when the CEOs of the publicly traded home builders
described the housing market as the best they have ever seen.
Back in June 2005 ValuEngine had the home builders extremely overvalued and I noted
their weekly price charts were extremely overbought. I wrote a piece calling for a
summer 2005 peak for the home builder stocks, which proved to be a prudent market
call. The NAHB HMI has been 20 or below since September 2007 and has been
between 13 and 16 the past nine months. The exception was a 22 reading in the height
of the $8,000 first-time homebuyer tax credit in May 2010.
The Mortgage Bankers Association reported that their weekly Mortgage Applications
Survey decreased 9.5% with the Refinance Index down 11.4%, to the lowest reading
since July 3, 2009. The Purchase Index decreased 5.9%, and is 18.2% lower than a
year ago. A major drag is attributed to the above 5% mortgage rate, up nearly a full
percentage point from the October 2010 low, in the midst of when Fed Chief Bernanke
was touting that the pending QE2 program would push longer-term yields lower to help
consumers. The only thing that QE2 has done is inflate an equity market to an
overvalued and overbought inflating financial bubble!
The minutes from the latest Fed Meeting indicates that unemployment and tight
credit conditions continues to be a drag on the housing market. History repeats:
Housing peaked in mid-2005 and the recovery has been nil. Community banks peaked
at the end of 2006, and Bank Failure Friday continues. Regional Banks peaked in
March 2007, and toxic assets remain in the banking system. Fed policy with that
ridiculously low funds rate and QE2 is masking problems that will still plague the US
economy for the next several years.’
January Weather's Economic Impact: Catalyst for Overdue Market Correction?

[ As pointed out infra, the Index of Leading Indicators was up only a miniscule .
1% . All components are particularly vulnerable to manipulation, false reporting,
and outright fraud, particularly in light of the absolute desperation of those
involved in the reporting along with to whom and of course the fraudulently
manipulated to the upside stock prices which are a significant component and
the ultimate bootstrap, so to speak. The election also figured prominently in the
manipulation and even if believed (I don’t), still not so hot and a far more grim
scenario is but around the corner. That scenario is : Reality! Investopedia: What
Does Composite Index of Leading Indicators Mean? An index published monthly
by the Conference Board used to predict the direction of the economy's
movements in the months to come. The index is made up of 10 economic
components, whose changes tend to precede changes in the overall
economy. These 10 components include:
1. the average weekly hours worked by manufacturing workers
2. the average number of initial applications for unemployment insurance
3. the amount of manufacturers' new orders for consumer goods and materials
4. the speed of delivery of new merchandise to vendors from suppliers
5. the amount of new orders for capital goods unrelated to defense
6. the amount of new building permits for residential buildings
7. the S&P 500 stock index8. the inflation-adjusted monetary supply (M2)
9. the spread between long and short interest rates
10. consumer sentiment ] Kaminis‘As we suspected, January weather is proving to
have hampered economic activity. Blizzards and super storms rampaged across much
of the nation last month, and economic reports are now showing the effects born to the
economy. The latest such report, and broad reaching measure to make this case, is
Leading Economic Indicators, but we've also seen data from companies like FedEx
(FDX) offering good reason to adjust expectations and portfolios. As a publisher, I can
give you firsthand testimony to the economic effects of January's weather.
Almost all of my advertisers have reported dead business through the month,
which has weighed on our own cash flow as well. January offered a rude
awakening as to just how perilous are the operations of small businessmen, who
have weathered the worst part of the recession, but are still just scraping by, and
with little leeway for error.Economic reports should continue to prove out that the
harsh weather that battered all of the country in January, especially the
population concentrated Northeast, provided a speed bump to economic growth.
The few January reports that have reached the wire to-date offer enough support
to our case, but the stock market has not shown ill-effect as yet.The Leading
Indicators Index, just reported for January, showed only a 0.1% increase. The
meek result compared against December's revised 0.8% increase and November's
1.1% rise. The Conference Board, which puts the LEI together, reported that while
the economic trend is expansionary, current economic conditions remain weak.
The cumulative change in the LEI over the last six months is a solid 3.0%.
However, the Board reported that the Coincident Economic Index, which
measures current conditions, rose just 0.1%, following a 0.3% increase in
December and 0.2% rise in November. Furthermore, the Conference Board's
Lagging Economic Index dropped 0.1%.The factors behind the softness in
January were listed as weaker housing permits and poor labor market indicators.
We've posited here before that the weather likely played a role in weird results
from the Labor Department last month, if not keeping depressed job searchers
buried at home. We've likewise warned that the weather might throw off January's
housing data, some of which has already been released, with more to come next
week.Other reports have more clearly depicted the sad season we describe here.
Industrial Production, reported Wednesday for January, produced a 0.1%
decrease where economists were looking for a 0.5% increase. Capacity Utilization
also confounded economists, falling to 76.1% from a revised 76.2% rate in
December. Economists were looking for an improvement to 76.3%. Now,
Industrial Production actually softened partly due to lower utility production on
warmer average temperatures in January, which is a counter to our argument.
Though, Factory Production in isolation and excluding motor vehicle production,
rose modestly 0.1%, agreeing with our theory somewhat.
The softer data piles on. The month's Housing Starts data showed a slippage in
permitting activity, as the pace slowed to 562K, from 627K in December.
Furthermore, single-family home authorizations fell 4.8% to 421K. The pace of
single-family housing starts also fell 1% to 413K. January's Retail Sales (and
sales excluding autos) rose 0.3%, but both figures missed the economists'
consensus expectations for 0.5% increases.As economists seem to have
overlooked the weather in January, they have likely conveyed a certain optimism
to strategists, who have likewise guided portfolio managers and analysts. As
more data points are reported for January, and if they are reported significantly
off, then stocks could sell off briefly over the short-short-term on a shift in
understanding.Indeed, some companies have been directly impacted by the
weather already, and others will likely report earnings impact in their Q1 releases.
FedEx cut its projected fiscal third quarter EPS forecast to a range of $0.70 to
$0.90, from $0.95 to $1.15, due to in part to "winter storms." Analysts had been
looking for EPS of $1.02 on average, based on Bloomberg's data. Whether
directly or indirectly, and based on my anecdotal witness, I think we can expect
companies to report weather impacted results for this quarter. With economists,
strategists and analysts potentially all off the mark, there's risk to stocks.Given
the January weather is not an ongoing issue, you can look for analysts to blow
off any negative surprises, and to guide investors to stick with their
recommendations as they also save face. The weather is still considered a
temporary and insignificant factor in valuation (though that's increasingly
debatable given climate change), and so any damage to stocks should be only a
trading hit that might open opportunities for long-term buying interests in good
names. However, most technical charts, including those by our technical analyst,
show a market overdue for a correction. Thus, perhaps we have here a catalyst.’
February 18, 2011: Market Summary [Caveat: This market is worse than
overbought. This market is fraudulently manipulated, overvalued as preceded all
other crashes and this time will be no different and in some ways worse owing to
the structural shift away from pervasively corrupt, defacto bankrupt america. ]
Investopedia ‘The past several weeks have been very difficult for traders who
believe that the markets are headed for a pullback. It seems like any signs of
weakness have been quickly overcome by the bulls and the markets continue to
chug along as they race to new highs. While it is prudent to preach caution when
the markets are in such a strong uptrend, the simple fact is that there is no
evidence yet of a market top. It is wise for traders to respect this strength and
simply recognize that the environment is overbought. In his famous quote, John
Keynes stated that “the markets can remain irrational longer than you can stay
solvent.” …’
21 Signs That The Once Great U.S. Economy Is Being Gutted, Neutered,
Defanged, Declawed And Deindustrialized Once upon a time… The Economic
Collapse Feb 12, 2011 ‘Once upon a time, the United States was the greatest
industrial powerhouse that the world has ever seen. Our immense economic
machinery was the envy of the rest of the globe and it provided the foundation for
the largest and most vibrant middle class in the history of the world. But now the
once great U.S. economic machine is being dismantled piece by piece. The U.S.
economy is being gutted, neutered, defanged, declawed and deindustrialized and
very few of our leaders even seem to care. It was the United States that once
showed the rest of the world how to mass produce televisions and automobiles
and airplanes and computers, but now our industrial base is being ripped to
shreds. Tens of thousands of our factories and millions of our jobs have been
shipped overseas. Many of our proudest manufacturing cities have been
transformed into “post-industrial” hellholes that nobody wants to live in anymore.
Meanwhile, wave after wave of shiny new factories is going up in nations such as
China, India and Brazil. This is great for those countries, but for the millions of
American workers that desperately needed the jobs that have been sent overseas
it is not so great.
This is the legacy of globalism. Multinational corporations now have the choice
whether to hire U.S. workers or to hire workers in countries where it is legal to
pay slave labor wages. The “great sucking sound” that Ross Perot warned us
about so long ago is actually happening, and it has left tens of millions of
Americans without good jobs.
So what is to become of a nation that consumes more than it ever has and yet
continues to produce less and less?
Well, the greatest debt binge in the history of the world has enabled us to
maintain (and even increase) our standard of living for several decades, but all of
that debt is starting to really catch up with us.
The American people seem to be very confused about what is happening to us

because most of them thought that the party was going to last forever. In fact,
most of them still seem convinced that our brightest economic days are still
ahead.
After all, every time we have had a “recession” in the past things have always
turned around and we have gone on to even greater things, right?
Well, what most Americans simply fail to understand is that we are like a car that
is having its insides ripped right out. Our industrial base is being gutted right in
front of our eyes.
Most Americans don’t think much about our “trade deficit”, but it is absolutely
central to what is happening to our economy. Every year, we buy far, far more
from the rest of the world than they buy from us.
In 2010, the U.S. trade deficit was just a whisker under $500 billion. This is money
that we could have all spent inside the United States that would have supported
thousands of American factories and millions of American jobs.
Instead, we sent all of those hundreds of billions of dollars overseas in exchange

for a big pile of stuff that we greedily consumed. Most of that stuff we probably
didn’t need anyway.
Since we spent almost $500 billion more with the rest of the world than they spent
with us, at the end of the year the rest of the world was $500 billion wealthier and
the American people were collectively $500 billion poorer.
That means that the collective “economic pie” that we are all dividing up is now
$500 billion smaller.
Are you starting to understand why times suddenly seem so “hard” in the United
States?
Meanwhile, jobs and businesses continue to fly out of the United States at a
blinding pace.
This is a national crisis.
We simply cannot expect to continue to have a “great economy” if we allow our

economy to be deindustrialized.
A nation that consumes far more than it produces is not going to be wealthy for
long.
The following are 21 signs that the once great U.S. economy is being gutted,
neutered, defanged, declawed and deindustrialized….
#1 The U.S. trade deficit with the rest of the world rose to 497.8 billion dollars in
2010. That represented a 32.8% increase from 2009.
#2 The U.S. trade deficit with China rose to an all-time record of 273.1 billion
dollars in 2010. This is the largest trade deficit that one nation has had with
another nation in the history of the world.
#3 The U.S. trade deficit with China in 2010 was 27 times larger than it was back
in 1990.
#4 In the years since 1975, the United States had run a total trade deficit of 7.5
trillion dollars with the rest of the world.
#5 The United States spends more than 4 dollars on goods and services from
China for every one dollar that China spends on goods and services from the
United States.
#6 In 1959, manufacturing represented 28 percent of all U.S. economic output. In

2008, it represented only 11.5 percent and it continues to fall.
#7 The number of net jobs gained by the U.S. economy during this past decade
was smaller than during any other decade since World War 2.
#8 The Bureau of Labor Statistics originally predicted that the U.S. economy
would create approximately 22 million jobs during the decade of the 2000s, but it
turns out that the U.S. economy only produced about 7 million jobsduring that
time period.
#9 Japan now manufactures about 5 million more automobiles than the United
States does.
#10 China has now become the world’s largest exporter of high technology
products.
#11 Manufacturing employment in the U.S. computer industry is actually lower in

2010 than it was in 1975.
#12 The United States now has 10 percent fewer “middle class jobs” than it did
just ten years ago.
#13 According to Tax Notes, between 1999 and 2008 employment at the foreign
affiliates of U.S. parent companies increased an astounding 30 percent to 10.1
million. During that exact same time period, U.S. employment at American
multinational corporations declined 8 percent to 21.1 million.
jobs.
#17 Half of all American workers now earn $505 or less per week.
#19 Since 2001, over 42,000 U.S. factories have closed down for good.
#20 In 2008, 1.2 billion cellphones were sold worldwide. So how many of them
were manufactured inside the United States? Zero.
#21 Ten years ago, the “employment rate” in the United States was about 64%.
Since then it has been constantly declining and now the “employment rate” in the
United States is only about 58%. So where did all of those jobs go?
The world is changing.
We are bleeding national wealth at a pace that is almost unimaginable.
We are literally being drained dry.
Did you know that China now has the world’s fastest train and the world’s largest
high-speed rail network?
They were able to afford those things with all of the money that we have been
sending them.
How do you think all of those oil barons in the Middle East became so wealthy
and could build such opulent palaces?
They got rich off of all the money that we have been sending them.
Meanwhile, once great U.S. cities such as Detroit, Michigan now look like war
zones.
Back in 1985, the U.S. trade deficit with China was about 6 million dollars for the
entire year.
As mentioned above, the U.S. trade deficit with China for 2010 was over 273billion
dollars.
What a difference 25 years can make, eh?
What do you find when you go into a Wal-Mart, a Target or a dollar store today?
You find row after row after row of stuff made in China and in other far away
countries.
It can be more than a bit difficult to find things that are actually made inside the
United States anymore. In fact, there are quite a few industries that have
completely and totally left the United States. For certain product categories it is
now literally impossible to buy something made in America.
So what are we going to do with our tens of millions of blue collar workers?
Should we just tell them that their jobs are not ever coming back so they better
learn phrases such as “Welcome to Wal-Mart” and “Would you like fries with
that”?
For quite a few years, the gigantic debt bubble that we were living in kind of
insulated us from feeling the effects of the deindustrialization of America.
But now the pain is starting to kick in.
It has now become soul-crushingly difficult to find a job in America today.
According to Gallup, the U.S. unemployment rate is currently 10.1% and when
you throw in “underemployed” workers that figure rises to 19.6%.
Competition for jobs has become incredibly fierce and it is going to stay that way.
The great U.S. economic machine is being ripped apart and dismantled right in
full view of us all.
This is not a “conservative” issue or a “liberal” issue. This is an American issue.
The United States is rapidly being turned into a “post-industrial” wasteland.
It is time to wake up America.’

perceptions.

Attractive

Concern

Everywhere
expensive.
12 Economic Collapse Scenarios That We Could Potentially See In 2011 What

could cause an economic collapse in 2011? Well, unfortunately there are quite a
few “nightmare scenarios” that could plunge the entire globe into another
massive financial crisis.
The Economic Collapse Jan 20, 2011 ‘What could cause an economic collapse in
2011? Well, unfortunately there are quite a few “nightmare scenarios” that could
plunge the entire globe into another massive financial crisis. The United States,
Japan and most of the nations in Europe are absolutely drowning in debt. The
Federal Reserve continues to play reckless games with the U.S. dollar. The price
of oil is skyrocketing and the global price of food just hit a new record high.
Food riots are already breaking out all over the world. Meanwhile, the rampant
fraud and corruption going on in world financial markets is starting to be exposed
and the whole house of cards could come crashing down at any time. Most
Americans have no idea that a horrific economic collapse could happen at
literally any time. There is no way that all of this debt and all of this financial
corruption is sustainable. At some point we are going to reach a moment of
“total system failure”.
So will it be soon? Let’s hope not. Let’s certainly hope that it does not happen in
2011. Many of us need more time to prepare. Most of our families and friends
need more time to prepare. Once this thing implodes there isn’t going to be an
opportunity to have a “do over”. We simply will not be able to put the toothpaste
back into the tube again.
So we had all better be getting prepared for hard times. The following are 12
economic collapse scenarios that we could potentially see in 2011….
#1 U.S. debt could become a massive crisis at any moment. China is saying all of
the right things at the moment, but many analysts are openly worried about what
could happen if China suddenly decides to start dumping all of the U.S. debt that
they have accumulated. Right now about the only thing keeping U.S. government
finances going is the ability to borrow gigantic amounts of money at extremely
low interest rates. If anything upsets that paradigm, it could potentially have
enormous consequences for the entire world financial system.
#2 Speaking of threats to the global financial system, it turns out that

“quantitative easing 2″ has had the exact opposite effect that Ben Bernanke
planned for it to have. Bernanke insisted that the main goal of QE2 was to lower
interest rates, but instead all it has done is cause interest rates to go up
substantially. If Bernanke this incompetent or is he trying to mess everything up
on purpose?
#3 The debt bubble that the entire global economy is based on could burst at any
time and throw the whole planet into chaos. According to a new report from the
World Economic Forum, the total amount of credit in the world increased from
$57 trillion in 2000 to $109 trillion in 2009. The WEF says that now the world is
growth” over the next decade. So is this how the new “global economy” works?
We just keep doubling the total amount of debt every decade?
#4 As the U.S. government and the Federal Reserve continue to pump massive
amounts of new dollars into the system, the floor could fall out from underneath
the U.S. dollar at any time. The truth is that we are already starting to see
inflation really accelerate and everyone pretty much acknowledges that official
U.S. governments figures for inflation are an absolute joke. According to one
new study, the cost of college tuition has risen 286% over the last 20 years, and
the cost of “hospital, nursing-home and adult-day-care services” rose 269%
during those same two decades. All of this happened during a period of
supposedly “low” inflation. So what are price increases going to look like when
we actually have “high” inflation?
#5 One of the primary drivers of global inflation during 2011 could be the price of
oil. A large number of economists are now projecting that the price of oil could
surge well past $100 dollars a barrel in 2011. If that happens, it is going to put
significant pressure on the price of almost everything else in the entire global
economy. In fact, as I have explained previously, the higher the price of oil goes,
the faster the U.S. economy will decline.
#6 Food inflation is already so bad in some areas of the globe that it is setting off
massive food riots in nations such as Tunisia and Algeria. In fact, there have
been reports of people setting themselves on fire all over the Middle East as a
way to draw attention to how desperate they are. So what is going to happen if
global food prices go up another 10 or 20 percent and food riots spread literally
all over the globe during 2011?
#7 There are persistent rumors that simply will not go away of massive physical
gold and silver shortages. Demand for precious metals has never been higher.
So what is going to happen when many investors begin to absolutely insist on
physical delivery of their precious metals? What is going to happen when the
fact that far, far, far more “paper gold” and “paper silver” has been sold than has
ever actually physically existed in the history of the planet starts to come out?
What would that do to the price of gold and silver?
#8 The U.S. housing industry could plunge the U.S. economy into another
recession at any time. The real estate market is absolutely flooded with homes
and virtually nobody is buying. This massive oversupply of homes means that
the construction of new homes has fallen off a cliff. In 2010, only 703,000 single
family, multi-family and manufactured homes were completed. This was a new
record low, and it was down 17% from the previous all-time record which had just
been set in 2009.
#9 A combination of extreme weather and disease could make this an absolutely

brutal year for U.S. farmers. This winter we have already seen thousands of new
cold weather and snowfall records set across the United States. Now there is
some very disturbing news emerging out of Florida of an “incurable bacteria” that
is ravaging citrus crops all over Florida. Is there a reason why so many bad
things are happening all of a sudden?
#10 The municipal bond crisis could go “supernova” at any time. Already,
investors are bailing out of bonds at a frightening pace. State and local
government debt is now sitting at an all-time high of 22 percent of U.S. GDP.
According to Meredith Whitney, the municipal bond crisis that we are facing is a
gigantic threat to our financial system….

years….
#11 Of course on top of everything else, the quadrillion dollar derivatives bubble
could burst at any time. Right now we are watching the greatest financial casino
in the history of the globe spin around and around and around and everyone is
hoping that at some point it doesn’t stop. Today, most money on Wall Street is
not made by investing in good business ideas. Rather, most money on Wall
Street is now made by making the best bets. Unfortunately, at some point the
casino is going to come crashing down and the game will be over.
#12 The biggest wildcard of all is war. The Korean peninsula came closer to war
in 2010 than it had in decades. The Middle East could literally explode at any
time. We live in a world where a single weapon can take out an entire city in an
instant. All it would take is a mid-size war or a couple of weapons of mass
destruction to throw the entire global economy into absolute turmoil.
Once again, let us hope that none of these economic collapse scenarios happens
in 2011.
However, we have got to realize that we can’t keep dodging these bullets forever.
As bad as 2010 was, the truth is that it went about as good as any of us could
have hoped. Things are still pretty stable and times are still pretty good right
now.
But instead of using these times to “party”, we should be using them to prepare.
A really, really vicious economic storm is coming and it is going to be a complete

and total nightmare. Get ready, hold on tight, and say your prayers.’
Poor Recovery: The Problem Is Institutional [ Well it’s true that the problem is
institutional as in pervasively corrupt, incompetent, nonproductive in real
terms relative to their cost / damage (still no pros on the wall street fraud
which is ongoing in terms of the last crisis, the worthless paper marked to
anything, and the current bubble fraud that’s high-frequency computerized
churn-and-earn high-frequency commissioned / sold into, 360 tons of $100
bills disappear in Iraq, etc.. What do they get paid for?) ( Peter Schiff:
Washington a parasite to economy ‘US foreclosures hit record highs in 2010,
but that may not be the worst of it. 2011 may be even worse. Meanwhile, JP
Morgan Chase exceeded market expectations, announcing a 47% rise in
quarterly profits and released details on a $28.1 billion pay and bonus pool.
Peter Schiff, the President of Euro Pacific Capital said Washington and Wall
Street are becoming one force and are sucking the underlying American dry
like a parasite’.); but the problem is structural, as in transfer of jobs,
industries, etc. (among the sources of the huge over-compensation to wall
street, company executives), never to return in any meaningful sense; and
as in the defacto bankruptcy of the nation with insurmountable record debt /
deficits or stated another way, broke. Unlike in the past, once beyond the
propaganda, rhetoric, and smoke and mirrors / obfuscation, there is no
prospective way for america to grow its way out, nor are there funds in real
money with which to do it. Quite simply, america’s broke / bankrupt in every
which way. ] Loundsbury ‘Harold Meyerson, Op Ed Columnist at The
Washington Post, has hit the nail right on the head, in the opinion of GEI.
Meyerson says the debate about whether the recession and poor recovery is
a cyclical problem or a structural problem is misguided. He says the
problem is institutional - - - and is he ever right!
In a column last week, Myerson points out that the devastation of The Great
Recession has fallen disproportionately on the blue collar population, those
without a college degree. And he traces the rolling over of median family income
in this century, not just in the downturn, but since the turn of the century. Even at
the peak, in 2007, median family income was less than in 2000.
What Meyerson doesn't point out is that average incomes have faired better in the
21st century and in all of the past 50 years. In fact, average family income has
risen more than 2.5 times as much and median income over the last 30 years.
Why is this important? Because the more there is a fat tail of ever higher incomes
for a few, the greater the difference between average and median income
becomes.
Myerson says:
The great sociologist William Julius Wilson has long argued that the
key to the unraveling of the lives of the African American poor was
the decline in the number of "marriageable males" as work
disappeared from the inner city. Much the same could now be said of
working-class whites in neighborhoods that may not look like the
ghettos of Cleveland or Detroit but in which productive economic
activity is increasingly hard to find.
This grim new reality has yet to inform our debate over how to come
back from this mega-recession. Those who believe our downturn is
cyclical argue that job-creating public spending can restore us to
prosperity, while those who believe it's structural - that we have too
many carpenters, say, and not enough nurses - believe that we
should leave things be while American workers acquire new skills
and enter different lines of work. But there's a third way to look at
the recession: that it's institutional, that it's the consequence of the
decisions by leading banks and corporations to stop investing in the
job-creating enterprises that were the key to broadly shared
prosperity.
Since Meyerson has chosen income disparity as a cornerstone of his argument,

let's look at how incomes have grown over the last 50 years. These are shown in
the following graph, not adjusted for inflation.
Real median income and average income seem to grow similarly in the 1950s and
1960s, the growth of average income starts to pull away in the mid-1960s and
appears to continue to gain gound for the the next 40+ years. The more average
income deviates from median income the more money is found in the high
income tail on the distribution curve. This is often called a "fat tail", which is very
appropriate in this discussion because that is where the fat cats are. The fat tail
has not gotten so because ten times as many people equaled the incomes of the
former fat cats, but more because a few fat cats have received 10 times the
income. This is exemplified by the often quoted statistic that average CEO
salaries were 40x average worker pay 50 years ago and today are more like 400x.
The change income distribution that seems to be appearing in the above graph
becomes more apparent in the following graph where real income gains are
shown for the last six decades starting with the ten years from 1949 - 1959 (the
1950s) and ending with 1999 - 2009 (the 2000s). [chart]
The 1950s and 60s were real boom years. Starting with the 1970s a lower level of
income growth was established, but even that lower level could not be
maintained in the 2000s.
After the 1950s every decade has seen average real income grow more than the
median. The fat tail has gotten fatter over the past half century in every decade,
without exception. Yes the average did decline in the 2000s, but the median
declined 76% more!
The most dramatic pattern of change is evident when the data is divided into two
halves: 1949 to 1979 and 1979 - 2009. This is done in the following graph: [chart]
For thirty years after World War II the wealth of the country increased in a
balanced manner. The average income containing the greater contribution from
the top earners of the day, grew at a rate very similar to the income growth of the
broader population, represented by the median.
Yes there were "fat cats" and they had significantly larger incomes than the bulk
of the population. And these top incomes grew over those three decades, but at
almost the same rate as the majority of the populace.
Then something happened. From 1979-2009 it appears that the American pie
suddenly got smaller. In the later three decades the real median income growth
was less than 10% of the rate seen from 1949 to 1979. And as the pie got smaller,
the fat cats took a much larger share. The average income grew at a rate 254%
that of the median income. You might say that, as the cow gave less milk, the top
of the economic ladder skimmed more and more cream off the top.
Meyerson identifies the force majuere to be corporate America:
Our multinational companies still invest, of course - just not at home.
A study by the Business Roundtable and the U.S. Council
Foundation found that the share of the profits of U.S.-based
multinationals that came from their foreign affiliates had increased
from 17 percent in 1977 and 27 percent in 1994 to 48.6 percent in
2006. As the companies' revenue from abroad has increased, their
dependence on American consumers has diminished. The
equilibrium among production, wages and purchasing power - the
equilibrium that Henry Ford famously recognized when he upped his
workers' pay to an unheard-of $5 a day in 1913 so they could afford
to buy the cars they made, the equilibrium that became the model for
20th-century American capitalism - has been shattered. Making and
selling their goods abroad, U.S. multinationals can slash their
workforces and reduce their wages at home while retaining their
revenue and increasing their profits. And that's exactly what they've
done.
Meyerson doesn't get into some of the other areas that might be brought to bear
on the current condition of the American economy:
• He doesn't address the fact that the U.S. ranks below some third world
countries in education.
• He doesn't discuss the increasing burden of health care, both because
costs have been running out of control and because an ever increasing
portion of the population is kept from making the contribution they might
have otherwise because of poor health.
• He doesn't discuss the capture of much potential domestic capital by
financial engineers who find it much easier to get rich in a rigged casino
than to make money the old fashioned way.
Part of the problem is that Americans have fallen into the way of the easiest path,
where, either by credit card or by making quick trades, the desires of the moment
are satisfied with no seemingly current cost.
It seems that few want to think about the needs of tomorrow. This is true starting
with the masses who kiss off the idea of working hard in school to prepare for
what they will need 20 years down the road. This is also true of the "capitalist"
who finds that skimming a few percent off each of many deals a year to get quick,
large quarterly returns is much easier than investing and building something that
will will make much larger returns extending over decades and producing things
of real economic utility.
There are a number of things that Meyerson does not address, but if you want to
hit one nail at a time, I think he has picked the baddest nail in the plank. He
finishes his column thusly:
Our economic woes, then, are not simply cyclical or structural. They
are also - chiefly - institutional, the consequence of U.S. corporate
behavior that has plunged us into a downward cycle of
underinvestment, underemployment and under-consumption. Our
solutions must be similarly institutional, requiring, for starters, the
seating of public and worker representatives on corporate boards.
Short of that, there will be no real prospects for reversing America's
downward mobility.
If we were to address all the other issues I mentioned previously and did not
address the institutional problem Meterson has identified, we would not
ultimately solve our economic puzzle.’
20 Shocking New Economic Records That Were Set In 2010 2010 was quite a year,
economic decline…The Economic Collapse Jan 14, 2011 ‘2010 was quite a year,
economic decline. The number of foreclosure filings set a new record, the
number of home repossessions set a new record, the number of bankruptcies
went up again, the number of Americans that became so discouraged that they
simply quit looking for work reached a new all-time high and the number of
Americans on food stamps kept setting a brand new record every single month.
Meanwhile, U.S. government debt reached record highs, state government debt
reached record highs and local government debt reached record highs. What a
mess! In fact, even many of the “good” economic records that were set during
2010 were indications of underlying economic weakness. For example, the price
of gold set an all-time record during 2010, but one of the primary reasons for the
increase in the price of gold was that the U.S. dollar was rapidly losing value.
Most Americans had been hoping that 2010 would be the beginning of better
times, but unfortunately economic conditions just kept getting worse.
So will things improve in 2011? That would be nice, but at this point there are not
a whole lot of reasons to be optimistic about the economy. The truth is that we
are trapped in a period of long-term economic decline and we are now paying the
price for decades of horrible decisions.
Amazingly, many of our politicians and many in the mainstream media have
declared that “the recession is over” and that the U.S. economy is steadily
improving now.
Well, if anyone tries to tell you that the economy got better in 2010, just show
them the statistics below. That should shut them up for a while.
The following are 20 new economic records that were set during 2010….
#1 An all-time record of 2.87 million U.S. households received a foreclosure filing

in 2010.
#2 The number of homes that were actually repossessed reached the 1 million
mark for the first time ever during 2010.
#3 The price of gold moved above $1400 an ounce for the first time ever during
2010.
#4 According to the American Bankruptcy Institute, approximately 1.53 million

consumer bankruptcy petitions were filed in 2010, which was up 9 percent from
1.41 million in 2009. This was the highest number of personal bankruptcies we
have seen since the U.S. Congress substantially tightened U.S. bankruptcy law
several years ago.
#5 At one point during 2010, the average time needed to find a job in the United
States had risen to an all-time record of 35.2 weeks.
jobs, which is believed to be a new record low.
#7 The number of Americans working part-time jobs “for economic reasons” was
the highest it has been in at least five decades during 2010.
#8 The number of American workers that are so discouraged that they have given
up searching for work reached an all-time high near the end of 2010.
#9 Government spending continues to set new all-time records. In fact, at the

moment the U.S. government is spending approximately 6.85 million dollars every
single minute.
#10 The number of Americans on food stamps surpassed 43 million by the end of
2010. This was a new all-time record, and government officials fully expect the
number of Americans enrolled in the program to continue to increase throughout
2011.
#11 The number of Americans on Medicaid surpassed 50 million for the first time
ever in 2010.
#12 The U.S. Census Bureau originally announced that 43.6 million Americans are
now living in poverty and according to them that was the highest number of
Americans living in poverty that they had ever recorded in 51 years of record-
keeping. But now the Census Bureau says that they miscalculated and that the
real number of poor Americans is actually 47.8 million.
#13 According to the FDIC, 157 banks failed during 2010. That was the highest
number of bank failures that the United States has experienced in any single year
during the past decade.
#14 The Federal Reserve brought in a record $80.9 billion in profits during 2010.
They returned $78.4 billion of that to the U.S. Treasury, but the real story is that
thanks to the Federal Reserve’s continual debasement of our currency, the U.S.
dollar was worth less in 2010 than it ever had been before.
#15 It is projected that the major financial firms on Wall Street will pay out an all-
time record of $144 billion in compensation for 2010.
all-time record.
#17 In July, sales of new homes in the United States declined to the lowest level
ever recorded.
#18 According to Zillow, U.S. housing prices have now declined a whopping 26
percent since their peak in June 2006. Amazingly, this is even farther than house
prices fell during the Great Depression. From 1928 to 1933, U.S. housing prices
only fell 25.9 percent.
#19 State and local government debt reached at an all-time record of 22 percent
of U.S. GDP during 2010.
#20 The U.S. national debt has surpassed the 14 trillion dollar mark for the first
time ever and it is being projected that it will soar well past 15 trillion during 2011.
There are some people that have a hard time really grasping what statistics
actually mean. For people like that, often pictures and charts are much more
effective. Well, that is one reason I like to include pictures and graphs in many of
my articles, and below I have posted my favorite chart from this past year. It
shows the growth of the U.S. national debt from 1940 until today. I honestly don’t
know how anyone can look at this chart and still be convinced that our nation is
not headed for a complete financial meltdown….[chart]


mortgage debt.
United States.
131,000 to 170,000 between 2007 and 2009.

come down for good.


Dec 17, 2010


April 2009.

global economy.
months in a row.

I’m shocked.”

unemployed.
16 Nightmarish Economic Trends To Watch Carefully In 2011 The American

Dream Dec 15, 2010 ‘If you only watch the “economic pundits” on television,
it can be very confusing to figure out exactly what is happening with the U.S.
economy. One pundit will pull out a couple statistics that got a little bit
better over the past month and claim that we have entered a time of solid
recovery. Another pundit will pull out a couple statistics that got a little
worse over the past month and claim that we are headed for trouble. So
what is the truth? Well, if you really want to get a clear idea of what is really
going on you have to look at the long-term trends. There are some
economic trends which just keep getting worse year after year after year,
and it is those trends that tell the real story of the decline of our economic
system.
As you examine the long-term trends, you quickly come to realize that the U.S. is
trapped in an endless spiral of debt, the middle class is being wiped out, the U.S.
dollar is being destroyed and America is rapidly becoming a post-industrial
wasteland.
Posted below are 16 nightmarish economic trends to watch carefully in 2011. It is

becoming exceedingly apparent that unless something is done rapidly we are
heading for an economic collapse of unprecedented magnitude….
#1 Do you want to see something scary? Just check out the chart below. Since
the beginning of the economic downturn, the U.S. monetary base has more than
doubled. But don’t worry – Federal Reserve Chairman Ben Bernanke has
promised us that this could never cause inflation. In fact, Bernanke says that we
need to inject even more dollars into the economy. So if you are alarmed by the
chart below, you are just being irrational according to Bernanke….
[chart]
#2 Thousands of our factories, millions of our jobs and hundreds of billions of

dollars of our national wealth continue to be shipped overseas. In 1985, the U.S.
trade deficit with China was 6 million dollars for the entire year. In the month
of August alone, the U.S. trade deficit with China was over 28 billion dollars.
Nobel economist Robert W. Fogel of the University of Chicago is projecting that
the Chinese economy will be three times larger than the U.S. economy by the year
2040 if current trends continue.
#3 The United States is rapidly becoming a post-industrial wasteland. Back in

1959, manufacturing represented 28 percent of all U.S. economic output. In 2008,
it represented only 11.5 percent and it continues to fall. Sadly, the truth is that
America is being deindustrialized. As of the end of 2009, less than 12 million
Americans worked in manufacturing. The last time that less than 12 million
Americans were employed in manufacturing was in 1941.
#4 The number of Americans that have been out of work for an extended period of
time has absolutely exploded over the last few years. As 2007 began, there were
just over 1 million Americans that had been unemployed for half a year or longer.
Today, there are over 6 million Americans that have been unemployed for half a
year or longer.
#5 The middle class continues to be squeezed out of existence. According to a

poll taken in 2009, 61 percent of Americans ”always or usually” live paycheck to
paycheck. That was up substantially from 49 percent in 2008 and 43 percent in
2007.
#6 The number of Americans living in poverty is absolutely skyrocketing. 42.9

million Americans are now on food stamps, and one out of every six Americans is
now enrolled in at least one anti-poverty program run by the federal government.
Unfortunately, many of those that have been hardest hit by this economic
downturn have been children. According to one new study, approximately 21
percent of all children in the United States are living below the poverty line in
2010 - the highest rate in 20 years.
#7 Many American families have been pushed beyond the breaking point during
this economic downturn. Over 1.4 million Americans filed for personal
bankruptcy in 2009, which represented a 32 percent increase over 2008. The final
number for 2010 is expected to be even higher.
#8 The U.S. real estate market continues to stagnate. During the third quarter of
2010, 67 percent of mortgages in Nevada were “underwater”, 49 percent of
mortgages in Arizona were “underwater” and 46 percent of mortgages in Florida
were “underwater”. So what happens if home prices go down even more?
#9 More elderly Americans than ever are being forced to put off retirement and
continue working. In 2010, 55 percent of Americans between the ages of 60 and
64 were in the labor market. Ten years ago, that number was just 47 percent.
Unfortunately, it looks like this problem will only get worse in the years ahead. In
America today, approximately half of all workers have less than $2000 saved up
for retirement.
#10 In the United States today, there are simply far too many retirees and not
nearly enough workers to support them. Back in 1950 each retiree’s Social
Security benefit was paid for by 16 workers. Today, each retiree’s Social Security
benefit is paid for by approximately 3.3 workers. By 2025 it is projected that there
will be approximately two workers for each retiree.
#11 Financial assets continue to become concentrated in fewer and fewer hands.
For example, the “big four” U.S. banks (Citigroup, JPMorgan Chase, Bank of
America and Wells Fargo) had approximately 22 percent of all deposits in FDIC-
insured institutions back in 2000. As of the middle of 2009 that figure was up
to 39 percent.
#12 The Federal Reserve has been destroying the value of the U.S. dollar for
decades. Since the Federal Reserve was created in 1913, the U.S. dollar has lost
over 95 percent of its purchasing power. An item that cost $20.00 in 1970 would
cost you $112.35 today. An item that cost $20.00 in 1913 would cost you $440.33
today.
#13 Commodity prices continue to soar into the stratosphere. Ten years ago, the
price of a barrel of oil hovered around 20 to 30 dollars most of the time. Today,
the price of oil is rapidly closing in on 100 dollars a barrel and there are now fears
that it could soon go much higher than that.
#14 Federal government spending is completely and totally out of control. The
U.S. government budget deficit increased to a whopping $150.4 billion last month,
which represented the biggest November deficit on record. But our politicians
can’t seem to break their addiction to debt. In fact, Democrats are trying to ram
through a 1,924 page, 1.1 trillion dollar spending bill in the final days of the lame-
duck session of Congress before the Republicans take control of the House of
Representatives next year.
#15 The U.S. national debt is rapidly closing in on 14 trillion dollars. It is more
than 13 times larger than it was just 30 short years ago. According to an
official U.S. Treasury Department report to Congress, the U.S. national debt is
projected to climb to an estimated $19.6 trillion by 2015.
#16 Unfortunately, the official government numbers grossly understate the

horrific nature of the crisis we are facing. John Williams of Shadow Government
Statistics has calculated that if the federal government would have used GAAP
accounting standards to measure the federal budget deficit for 2009, it would
have been approximately 8.8 trillion dollars. Not only that, but John Williams now
says that U.S. government debt is so wildly out of control that it is mathematically
impossible for us to “grow” our way out of it….
The government’s finances not only are out of control, but the actual
deficit is not containable. Put into perspective, if the government
were to raise taxes so as to seize 100% of all wages, salaries and
corporate profits, it still would be showing an annual deficit using
GAAP accounting on a consistent basis. In like manner, given
current revenues, if it stopped spending every penny (including
defense and homeland security) other than for Social Security and
Medicare obligations, the government still would be showing an
annual deficit. Further, the U.S. has no potential way to grow out of
this shortfall.
The more one examines the U.S. economic situation, the more depressing it
becomes. The U.S. financial system is trapped inside a horrific debt spiral and
we are headed straight for economic oblivion.
If our leaders attempt to interrupt the debt spiral it will plunge our economy into a
depression. If our leaders attempt to keep the debt spiral going for several more
years it will just make the eventual crash even worse. Either way, we are headed
for a financial implosion that will be truly historic.
The debt-fueled good times that we have been enjoying for the last several
decades are rapidly coming to an end. Unfortunately for the tens of millions of
Americans that are already suffering, our economic problems are only going to
get worse in the years ahead.’

read….
this point.

United States.

Mexico.

degrees.

degrees.
17 Things Worrying Investors Lloyd's Wall of Worry
Worry Count: 17
CHINA: 1,330,044,605 people can’t be wrong.
The PIIGS: Fasten your seatbelts. It’s gonna be a long, bumpy, expensive, weird,
(insert your own adjective here) freak show of a ride.
CALIFORNIA AND THE OTHER 49 STATES: Not yet as dire as “The PIIGS”. Might I
suggest the classier moniker of “The Prosciuttos” for the American basket-case
states?
QE II: Gobble?
U.S. ECONOMY: The “Punky Brewster” of the global economic landscape.
UNEMPLOYMENT: Only thing worse than losing your job, losing your
unemployment check. At least there’s the holiday season to cheer everyone up
(read: heavy sarcasm).
TAXES: Praying to the Financial Market Gods that we don’t have another TARP-
like vote fiasco.
OBAMA ADMINISTRATION PART II: Still two years before the Pres. election and
the peanut gallery is already pleading for a Hail Mary Pass to get them back in the
game.
HFT: Instead of beating up these liquidity supplying traders, let’s honor them with
their very own stock exchange. But wait -- with no retail saps to pick-off they will
never get that Day 1 opening bell tick. Perfect.
XMAS 2010: As my professor friend Nick says, “Nowadays Americans are dining
off of two menus – The Million Dollar and the $0.99 Cent.” And both are pissed
about it.
CURRENCIES: Poor Mr. Greenback. Does someone need a hug?
HOUSING CRISIS: Price Stabilization – Are we there yet? Just a little bit more. Are
we there yet? Just a little bit more. Are we there yet? Just a little bit more….
INFLATION/DEFLATION: Fed Chief Ben B. comes out swinging from his heels in
defense of inflation promotion. Don’t punch yourself out as this one is likely to go
the distance.
COMMODITIES: Corrected but still sky high; fortunately these prices are only
affecting core, basic, life-sustaining necessities and sparing our electronic
gadgets and plus-sized SUVs. Whew!
INSIDER TRADING: Another black eye for Hedge Funds. I estimate that makes
black eye number 6,597.
INTEREST RATES: South Korea and China slowly turning up the dial to “11”. On
the other hand the U.S. has removed the dial altogether. This never ends well….
NORTH KOREA: Here we go again. (and now Egypt, etc.)

Consumer confidence down, LiveLeak.com - Loonie closes above U.S. dollar …
dollar for first time closes below parity on Canadian loonie … hey, hey, hey …
'Huge' stock decline — but not yet MarketWatch - Brimelow ‘Commentary:
Adens … ‘mega trend’ looks grim … The Adens expect a hyperinflationary
collapse … ‘ Oh come on! Manipulated dollar decline with inflated earnings, stock
prices thereby, etc., … we’ve seen this all before … the last few crashes …
Jobless rate jumps to 9.8% as hiring slows (Washington Post) [ The reality is not
a mystery! The nation’s been thrown under the bus for the greater good (wealth)
of the very few (frauds on wall street, etc.); wall street giving out record bonuses
from their accomplished fraud (with no-recession b.s. bernanke help) of $144
BILLION: Come on! This is gettin’ even more downright ridiculous (if that’s even
thrown in along with prospects of a ‘no-recession bernanke’ market-frothing bull
session on 60 minutes and, voila, suckers’ rally into the close to keep the
suckers suckered! What’s good for the frauds on wall street is bad for just about
everyone else which includes the vast majority of people and businesses,
domestically and globally, as current dollar manipulation / debasement ultimately
results in higher costs and loss of purchasing power (ie., oil, etc.). Clearly, this is
one of those fraudulent wealth transfers to the frauds on wall street et als which
will ultimately be paid for by those who least are in a position to afford it,
courtesy of the ever more worthless Weimar dollar, etc., inflating earnings, eps,
lowering p/e multiples, etc., see infra. This is an especially great time to sell / take
profits while you can since there's much worse to come! Previous: Rosy
numbers on consumer sentiment, unemployment (far better than private
forecasts) from the government prior to the holiday so-called ‘shop till you drop’?
How can anyone believe anything they say? Najerian interviewed by Motek
chimes in with the reason for good retail cheer; viz., people have stopped paying
their mortgages and are using the funds to purchase retail goods; while
Davidowitz adds that with record numbers of americans on food stamps, real
unemployment at 17+, and wall street giving out record bonuses from their
accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION …
the high end stores / jewelers will do well … daaaaah! And, with insiders and wall
street frauds selling into the bubble as preceded last crash, this is an especially
great opportunity to sell / take profits! Suckers’ rally on light volume, full moon,
and government complicity (false data / reports) to keep suckers suckered (easy
for the wall street frauds to do with just a mouse click / push of the button – and,
they know all those technical trade lines that are easy to program in this current
phase of the scam/fraud with the debased dollar). Keep in mind, the totally
mindless blather from the ‘cottage industries’ of and fraudulent wall street itself
in talking up lower P/E multiples when the same is a direct result of the
debasement of the dollar and the consequent manipulation / translation (not real,
see Davis, infra) which preceded the financial crisis / last crash. Unemployment,
trade, deficit, etc., numbers continue decidedly worse than expected along with
other negative data (and in the ‘wrong direction’, that spin accorded ‘down but
not as bad as before’ b*** s*** ) yet the market has rallied like no tomorrow with
used home foreclosure / distressed sales, though abated owing to
‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo
lemmings of Europe have jumped on the fraudulent defacto bankrupt american
crazy train propelled to the precipice also as if no tomorrow. This is about
keeping the suckers sucked in with the help of a market-frothing pre-election
debased dollar for favorable currency translation and paper (but not real when
measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a
bubble as in the last crisis to facilitate the churn-and-earn, particularly with
computerized (and high frequency) trades and which commissions they’ll get
again on the way down. There is nothing to support these overbought stock
prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even
wall street shill, the senile Buffett is saying we’re still in a recession (depression)
[ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that
10% is the E that gets divided from the P and gives us a much better
price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’
The bull market that never was / were beyond wall street b.s. when measured in
gold ] This is a great opportunity to sell / take profits (these lower dollar,
hyperinflationary currency manipulations / translations to froth paper stocks will
end quite badly as in last crash)! This is a global depression. This is a secular
bear market in a global depression. The past up moves were manipulated bull
(s***) cycles (at best) in a secular bear market. This has been a typically
manipulated bubble as has preceded the prior crashes with great regularity that
the wall street frauds and insiders commission and sell into. This is a typical wall
street ‘programmed computerized high-frequency churn and earn pass the hot
potato scam / fraud as in prior crashes ( widely reported, high-frequency trading
routinely accounts for more than 50% of daily U.S. equity trading volume and
regularly approaches 70%. )’. This national decline, economic and otherwise, will
not end until justice is served and the wall street frauds et als are criminally
prosecuted, jailed, fined, and disgorgement imposed.The Stock Market's Long
Decline Has Begun Smith ]
Analyst: Oil Will Hit $300 in a Decade, Regardless of Egypt Read more: Analyst:
Oil Will Hit $300 in a Decade, Regardless of Egypt Weeden & Co. oil analyst
Charles Maxwell says oil prices are bound to move steadily higher during
the next decade, eventually hitting $300 a barrel, regardless of whatever
happens in Egypt.
47 Statistics That Indicate That Economic Stress Points In 2011 Could Be Setting
The Stage For A Global Economic Meltdown In 2012 Is the world
approaching a devastating global economic meltdown? Right now there are
a large number of factors that are creating economic stress points all over
the globe.‘The American Dream Feb 16, 2011 Is the world approaching a
devastating global economic meltdown? Right now there are a large
number of factors that are creating economic stress points all over the
globe. All of the crazy money printing that the Federal Reserve and other
central banks have been doing is putting inflationary pressure on
agricultural commodities, oil and precious metals. Massive floods, horrific
droughts and extreme weather patterns all over the globe are ruining crops
and creating food shortages. Some nations are now actually hoarding food,
and in other nations rising prices have sparked food riots. The price of oil
has been moving back towards $100 a barrel, and if it stays at a high level
for an extended period of time that is going to have very serious
consequences for the global economy. In addition, the growing sovereign
debt crisis could erupt again at any time. Half a dozen nations in Europe are
on the verge of insolvency, Japan’s national debt is now well over 200
percent of GDP, and the global financial system is growing increasingly
concerned about the exploding national debt of the United States. The truth
is that the entire world financial system is a house of cards balanced on a
razor’s edge and it could come down at any time.
Sadly, very little has changed since the world financial system experienced
almost a complete meltdown back in 2008. Global financial markets are still a
whirlpool of debt and speculation. One really bad week could put us right back
where we were prior to the infamous Wall Street bailouts. Very little in our world
is truly stable anymore. As we have seen recently in Egypt, the globe can literally
change almost overnight. All it would take is for one really bad event to happen
and world financial markets would instantly start imploding.
So when will the coming economic collapse happen? Nobody knows for sure,
but the fact that the global economy is increasingly becoming less stable as we
approach the year 2012 is making a lot of people very nervous.
The following are 47 statistics that indicate that economic stress points in 2011
could be setting the stage for a global economic meltdown in 2012….
#1 According to the United Nations, global food prices set a new all-time record
during the month of January.
#2 In early February the worst freeze in 60 years wiped out entire crops all across
the southwestern U.S. and northern Mexico. Already, it has been reported that
some U.S. supermarkets have doubled or even tripled prices for certain produce
items.
#3 It is being reported that due to the recent horrible freeze in Mexico cases of
tomatoes that would usually cost shop owners between 12 and 15 dollars are now
going for up to $40.
#4 One of China’s key agricultural provinces is facing its worst drought in 200
years.
#5 The Food and Agriculture Organization says that up to two-thirds of China’s

wheat crop could be at risk of failing due to weather conditions.
#6 Officials in Mexico are estimating that four million tons of corn have been lost
because of the recent freeze. That represents a full 16 percent of Mexico’s annual
corn harvest.
#7 The price of corn has doubled over the last six months and it recently hit a
new all-time high.
#8 The U.S. Department of Agriculture has announced that corn supplies are the
tightest that they have been in 15 years.
#9 It appears that Chinese imports of corn will be about 9 times larger than the
U.S. Department of Agriculture originally projected them to be for 2011.
#10 The price of wheat has more than doubled over the past year and it hit a 30-
month high on Monday.
#11 In the event of a global catastrophe, current global stockpiles of wheat would
only be able to feed the world for 82 days.
#12 According to Forbes, the price of soybeans is up about 50% since last June.
#13 The price of cotton has more than doubled over the past year.
#14 The commodity price of orange juice has doubled since 2009.
#15 The price of sugar is the highest it has been in 30 years.
#17 In the U.K., the official rate of inflation is now twice as high as the target rate
of inflation.
#18 Inflation in China is starting to get out of control. For example, food prices in
China rose 10.3 percent during the month of January.
#19 Almost 14 percent of all credit card accounts in the United States are
currently 90 days or more delinquent.
#20 New home sales in the state of California were at the lowest level ever
recorded in the month of January.
#21 According to the U.S. Bureau of Labor Statistics, the number of job openings
in the United States declined for a second straight month during December.
#22 Average household debt in the United States has now reached a level of
136% of average household income.
#23 It is estimated that there are about 5 million homeowners in the United States
that are at least two months behind on their mortgages, and it is being projected
that over a million American families will be booted out of their homes this year
alone.
#24 Today, 46% of all Americans carry a credit card balance from month to
month.
#25 700,000 Americans have signed up for a credit card that has interest rates
that go as high as 59.9%.
#26 Americans now owe more than $889 billion on student loans, which is even
more than they owe on credit cards.
#27 The FDIC is “insuring” U.S. bank deposits that total 5.4 trillion dollars with a
deposit insurance fund that is currently sitting at approximately negative 8 billion
dollars.
#28 The Social Security trust fund will run a deficit of 56 billion dollars this year.
Just a couple of years ago government planners were promising that we would
not have any Social Security deficits until at least 2016 or 2017.
#29 When you adjust wages for inflation, middle class workers in the United
States make less money today than they did back in 1971.
#30 4.2 million Americans have been unemployed for one year or longer at this
point.
#32 According to a recent Gallup poll, 35 percent of Americans believe that

unemployment is currently the most important problem in the United States.
Another 29 percent believe that the economy is currently our biggest problem.
#33 Gallup also says that 19.6 percent of the workforce in America is currently
either unemployed or underemployed.
#34 The U.S. government says that 504,000 Americans “dropped out of the labor
force” in January.
#35 The Obama administration is projecting that the federal budget deficit will
be 1.65 trillion dollars for fiscal 2011.
#36 It is estimated that the total U.S. national debt will be greater than 100 percent
of GDP by the end of this fiscal year.
#37 The U.S. government relies on foreign nations such as China and Japan to
finance 40 percent of all new government debt.
#38 State and local government debt is now sitting at an all-time high of 22
percent of U.S. GDP.
#39 The Chinese are now hoarding gold like there is no tomorrow. In fact,
Chinese demand for gold has now risen to approximately 25% of total global
production.
#40 According to a recent report from the World Economic Forum, the world is
growth” over the next decade.
#41 According to the U.S. Conference of Mayors, visits to soup kitchens are up 24
percent over the past year.
#42 One out of every seven Americans is now on food stamps.
#43 One out of every six elderly Americans now lives below the federal poverty
line.
#44 During the last school year, almost half of all school children in the state of
Illinois came from families that were considered to be “low-income”.
#45 According to a survey released very close to the end of 2010, 55 percentof all
Americans are now living paycheck to paycheck. A major economic downturn
could quickly wipe out millions of families.
#46 Gasoline prices in the United States are now the highest that they have ever
been in the middle of February.
#47 Faith in our economic system continues to decline. According to one new
report, only 26 percent of Americans now trust the U.S. financial system.’
World Bank President Zoellick Says Surging Food Prices Have Pushed 44 Million
People Into Extreme Poverty Countries in Latin America and Africa,
including Bolivia and Mozambique, are most at risk of food riots as prices
advance, the United Nations reported.
Ongoing Dollar Devastation Sends Silver Above $31, Only $18.45 From Hunt
Brother High It is good to see that things are back to normal. The now
irrelevant, and very soon to be former reserve currency is getting pummeled
as stocks go up on 410,000 initial jobless claims nearly 2 years after the end
of the recession.
Replace the Federal Reserve Altogether A Good Idea Rather than have
designation to what the Fed is doing we believe to a great extent the term
quantitative easing will fade from the major media and Fed announcements,
probably to be replaced by a term such as accommodation.
Street’s war against poor & middle classes.
Geithner Helping the Chinese? Reuters | Diplomatic cables lay bare China’s
growing influence as largest U.S. creditor.
Video: Why Isn’t Wall St. in Jail? [ This truly will prove to be the story of the
century (albeit an abbreviated one and a turning point toward america’s
intractable decline) owing to what will ultimately be the lynch-pin of global
economic / financial collapse ushering in an era of great scarcity in more ways
than can be imagined. The pervasively corrupt, defacto bankrupt american
nation / government has literally underwritten this massive fraud at the expense
of the vast majorities directly and indirectly, precluded prosecution while
obfuscating the substantial crimes, literally becoming accomplices thereby.
There is absolutely no excuse for what is essentially a defalcation and abrogation
of duty. I was watching a somewhat obscure film recently which (though
elsewhere on this page and site I’ve set forth alarming crime statistics clearing
showing america as number 1 in all categories by wide margins) which set forth
the statistic that america has 85% of the world’s serial killers (and I’d go further in
saying it is likely that america has a similar lead in war crimes, etc.) ] MSNBC |
Cenk Uygur talks to Matt Taibbi about his latest Rolling Stone article.
Is China Hoarding Gold In Anticipation Of A Global Financial Implosion? 10 Facts

About Gold Fever In China That May Surprise You China officially has gold
fever. Chinese demand for gold in 2011 is being called “explosive” and
“voracious”. China imported five times as much gold in 2010 as it did in
2009, and this year gold sales in China are projected to easily set another
new all-time record.
Dollar on the edge of the abyss The dollar is now poised on the edge of the
abyss.
Silver rises to 30-year high as mints start to ration coins Silver jumped to a 30-
year high amid record levels of investor buying that has drained mints of
silver coins.
(2-18-11) Dow 12,391 +73 Nasdaq 2,833 +2 S&P 500 1,343 +2 [CLOSE- OIL
year 2009) PLATINUM $1,830 (+56% for year 2009) Metal News for the Day /
DOLLAR= .73 EURO, 83 YEN, .61 POUND STERLING, ETC. (How low can you go -
LOWER)/ http://www.federalreserve.gov/releases/h15/update 10 YR NOTE
YIELD 3.59% …..… AP Business Highlights ...Yahoo Market
Update... T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies -
Domestic / International This Is a Secular Bear Market and The End of
Buy and Hold … and Hope MARKET MANIPULATION AND HOW THE LATEST
BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10 6
Theories On Why the Stock Market Has Rallied 3-9-10 [archived website file]
Risks Lurk for ETF Investors The bull market that never was/were beyond
wall street b.s. when measured in gold Property Values Projected to Fall
12% in 2010 Jan 31, 2010 The Week Ahead: Risk Is Off the Cliff; Unwind Has
Begun Jan 31, 2010 01-13-10 Forecast for 2010 from Seeking Alpha
Contributor THE COMING MARKET CRASH / CORRECTION 1-28-10
Maierhofer (01-15-10) 11 Clear Signs Economy Sinking Economic Black
Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not
Going To Recover Current Economic / Fiscal Charts Trendsresearch.com
forecast for 2009 1-7-10 Crash is coming! ‘WORST ECONOMIC
COLLAPSE EVER’ Must Read Economic / Financial Data This
Depression is just beginning The coming depression…
thecomingdepression.net MUST READ: JEREMY GRANTHAM’S QUARTERLY
UPDATE 25 January 2010 (850 on the S&P) by TPC The Next Wave of Collapse
is Coming Sooner than you think Sliding Back Into the Great Depression
ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS WHILE YOU
CAN SINCE MUCH, MUCH WORSE TO COME!
National / World
Alex Jones: NWO orchestrated protests RT America | Protests were orchestrated

by the NWO and use this as fury in the streets to roll in another layer to the
police state.
Obama’s FY 2012 Budget Is A Tool Of Class War Obama’s new budget is a

continuation of Wall Street’s class war against the poor and middle class.
The effect of the Federal Reserve’s “quantitative easing” on inflation,
interest rates, and the dollar’s foreign exchange value are yet to hit. When
they do, Americans will get a lesson in poverty.
Joel Skousen On Election 2012 – Deception & War Author and political
commentator Joel Skousen gives an in-depth discussion on how the
election process is controlled by the establishment, with a particular focus
on the 2012 election and the co-opted Tea Party movement. Skousen gives a
detailed explanation of how he thinks the 2012 election will play out, with
either Newt Gingrich or Sarah Palin emerging as the victorious Republican
candidate.
Don’t Be Evil? 10 Ways In Which Google Runs The World Steve Watson & Paul
Watson | The company was seeded with CIA money and is literally an a
corporate arm of the intelligence community.
Deception at the Fed Ron Paul | For the past three decades, the Federal Reserve
has been given a dual mandate: keeping prices stable and maximizing
employment.
Horowitz and the Neocons Fear Patriot Ron Paul [ Unfortunately for the zionists,
reality is anti-semitic in that reality calls a spade a spade! ] Kurt Nimmo |
Neocon opportunist defames Ron Paul as anti-Semite.
Returning National Guard Troops Set To Smash Wisconsin Protest? Paul Joseph
Watson | 300 soldiers head back to state fresh from Iraq after Gov. Walker
put Guard on alert last week to prepare for strikes.
US troops set for longer Afghan stay [ Defacto bankrupt america can afford it …
riiiiight! ] FT.com | Surge is likely to stay in place long beyond Obama’s plan to
pull troops this year.
Saudis Worried Protests Will Hit Home [ For the sake of the saudi Arabian
people, more than just protests should come to fruition! ] AFP | Saudi royal
warns Arab world uprisings could cause harm unless they reform.
Bahrain authorities launch surprise attack on protesters [There’s the america

and saudi Arabia effect; far less than democratic and far more deadly in the
mideast among other places; talk about hypocrites. How does one family claim
ownership of all the oil reserves of a sovereign nation as the saudis; time for the
saudis to go the way of dictator Mubarak and take the war criminal americans
with them. ] Los Angeles Times Tear gas canisters bombard sleeping protesters
in Manama's Pearl Square. At least two men are reported killed Video: Bahrain
protesters look to emulate Egypt revolt euronews Riot Police Attack Bahrain
Protesters Voice of America
‘Saudi Arabia sending troops to Bahrain’ Saudi Arabia is sending troops to

Bahrain in a move to crack down on pro-democracy protesters who took to
the streets in the capital Manama, a political analyst says. [SAUDIS TOLD
OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing
footsteps…Previous: Egyptian capital teeters on anarchy Mubarak asks
cabinet to resign as anti-regime protests intensify (Washington Post)
[ Mubarak should have been looking in the mirror as he asked his cabinet to
resign … 30 years is a long time, and coincidentally, time for him to go. In
Egypt: Access denied (Washington Post) [The day part of the Internet died:
Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the
order to so darken the nation heralded the demise, at 30 years and counting,
of the so-called leadership in the persona of Mubarak. Time for him to go!
After all, he’s been in a position, with Egypt among the only Mideast nations
to have signed a peace treaty with israel, to have stepped up with
substantial credibility in taking a strong position against israeli
transgressions, violations of international law / u.n. resolutions, war crimes,
etc., which beyond soft-touch, he failed to do. And, of all places, he sends
his family to Orwellian england; he still loves those colonial masters … how
pathetic. I mean, 30 years … how free-flowing does anyone think the
election process is at this point … and one could ask the same regarding
the entrenched powers that be in pervasively corrupt, defacto bankrupt
america, to be fair. Then there’s saudi arabia; talk about do nothing
hypocrites. How does one family claim ownership of all the oil reserves of a
sovereign nation; I suspect only when foreign corporations say so. The only
Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of
course the perennially propaganda painted bad-boy Iran among possibly
some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information
regarding these other nations). ] (AP) Internet cutoff fails to silence
Egypt protests (AP) - ]
Dick Cheney and Donald Rumsfeld booed at GOP convention in D.C. New York
Daily News | Donald Rumsfeld and Dick Cheney were booed on Thursday at
the Conservative Political Action Conference. Ron Paul At CPAC:
‘Government is in the process of failing’ Is he running for US Senate? Is he
signaling his bid for US president? Or is he hinting at something deeper
within the US political climate? Milbank: Donald trumps CPAC | Gibbs
gone (Washington Post) [ Trump’s a loser, dressed up and propped up by
and to shill for a declining, fallen nation in the most corrupt regions of the
country (every fallen nation has such); of that there is no question …"Over
the years I've participated in many battles and have really almost come out
very, very victorious every single time," the Donald said. (Except for the
bankruptc[ies], that is. [ trump’s never won a battle that wasn’t fixed in
advance (including the ‘pre-packaged bankrupcies’ crammed down the
throats of objecting creditors – jersey general ] ) "I've beaten many people
and companies, and I've won many wars," he added. (Though he didn't serve
in the military.) "I have fairly [according to mobster rules; ie., bribery, money
laundering, etc.] but intelligently [ as any other mob boss … trump is total
b*** s***, a fraud, and lightweight … and, despite the façade, quite insecure
… trump’s a total mental case … He truly is the ‘poster-boy’ of american
decline and part of the problem, not the solution! …trump also said
america’s become the laughingstock of the world … true enough … and
trump the biggest joke … NEWS FLASH: Direct from Lost Angeles Learning
Annex – Presenting mobster t_rump of new yoke, new joyzey, and now
caleefornia mob fame with his continuing message for the past several
years: buy real estate (and watch the values go down…..riiiiight!).
Bank sues Trump over Chicago tower loan...
Trump casino to miss interest payment...
trump’s fired (from ‘his own company’)
Gunfire Erupts Inside trump Taj Mahal Casino, 1 Dead - Second Such Incident In
A Year At N.J. Mainstay Ends With Employee Killed – What else would you you
expect from a mobster’s casino in mob-infested jersey!
Trump luxury resort folds, leaving buyers defrauded…litigation has

commenced…send for sister maryanne, the corrupt federal judge to preside,
coverup, etc., she’s in n.y./n.j./pa 3rd circuit ct appeals, understands drug money
laundering/fraud and handles her own motions to recuse her and like mobster
trump should be in jail ... (see RICO Case)
] earned many billions of dollars [ at whose expense ], which in a sense was

both a scorecard and acknowledgment of my abilities [ to fool most of the people,
all of the time. ] ." TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE
CONFERENCE...
PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would
Impose 25% Tax on China Imports if President [ trump also said america’s
become the laughingstock of the world … true enough … and trump the biggest
joke … Indeed, that trump even posits the possibility of a run when he should be
in jail is a testament to just how big a laughingstock pervasively corrupt, defacto
bankrupt america’s become! [ If he was mobster in chief, mobster and scoundrel
trump wraps himself in populist american flag and offers up an (too little too late
– typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d
already be in jail in a rational, non-declining nation with meaningful laws. All
China has to do is dump (and not prospectively buy) their ever more and
declining in value day-by-day (from dollar debasement policies) u.s. paper /
bonds and overnight and the u.s. economy consequently thereby collapse.
[ When you come right down to it, this has been america’s most significant
export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and
clinton (clinton couldn’t have survived with them) by way of NAFTA as the
greatest thing since sliced bread was indeed in no uncertain terms condemned
and warned against by Perot, a man of honor who, unlike his opponents, could
not be bought, which is the reason, in pervasively corrupt america, he could
never have been elected. Interestingly, you may have noticed the good (but not
great, other than the spotlight on pervasive bribery including judges, police,
politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-
airing of late, purporting to be a significant part of american folklore / history /
culture. However, the reality is that in america, and certainly today, the real story
with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a
broken man; bankrupt, unable to even win election to the mayoralty of his then
current hometown. He was incorruptible; and hence, in the real america,
unelectable at the least if not also all but unemployable (he and his are among
those few genetic anomalies in america as I’ve previously alluded to. How far
america has fallen from even false perception! Pervasively corrupt, meaningfully
lawless america can’t even fake it anymore. See, for example,
http://albertpeia.com/CIAAgentAffidavit1.jpg
http://albertpeia.com/FBIAgentAffidavit11.jpg , and of course, corrupt legal /
judicial processes, etc., Defacto bankrupt, fraudulent america also spends more
on offensive (defensive a misnomer / propaganda) military spending than all the
nations of the world combined, and by a large margin at that. Do you see a
pattern emerging here [ I unfortunately only belatedly did, and the feds, fed
employees, cia, all 3 branches of the u.s. government, etc., are included in this
evolved american trait of inherent criminality in the most nefarious sense … The
pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) /
judges: Their lifetime plush appointments should be abolished, which corrupt
entities are unheard of in productive societies as China, Japan, etc.. Time to
abolish these drags on society and eliminate their lifetime stipends and costly
bureaucracies. Rules of law mean nothing to these typically corrupt americans.
Most, including sam alito of the u.s. supreme court, concerning drug money
laundering and obstruction of justice in the 3rd circuit ( also maryanne trump
barry who covered-up drug money laundering through her brother’s casinos in a
civil RICO case) should have gone to or belong in jail. Contrary to popular belief,
they do it for the money, personal money, big, cash, untraceable money. The fog
of war is great for such things (360 tons $100 bills flown into Iraq and missing,
etc.). [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenalty
ofperjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm
]. america’s just a fraudulent and failed defacto bankrupt nation. ] “I would
announce, without equivocation, a 25% tax increase on anything purchased from
China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?' ]
‘Cheney Stand Down Order’ #1 on Google Trends Infowars | Search term about
Dick Cheney’s 9/11 actions reaches top of Google.
The Suez Canal Workers Stage Sit-in as U.S. Warships Dispatched Kurt Nimmo |
Military in control of government has vowed to not allow labor strikes to
paralyze the world’s most populous Arab nation.
TSA Workers Admit To Stealing Huge Amounts Of Cash From Passengers Steve
Watson & Paul Watson | It has been revealed that TSA workers admit to
stealing cash and possessions from passengers.
WeAreChange Confronts Dick Cheney on 9/11 Standdown Order Aaron Dykes |

Activist group confronts former vice president Dick Cheney about
inconsistencies in 9/11 testimony and actions in PEOC bunker.
‘Infowars.comFebruary 15, 2010The testimony of Norman Mineta before the 9/11
Commission leaves compelling questions about former Vice President Dick
Cheney’s actions on the day of 9/11. Then Transportation Secretary Mineta
witnessed Cheney refuse to contradict an apparent standdown order as an aide
warned of something incoming at the Pentagon. Cheney has given conflicting
reports about what time he entered the PEOC bunker. Mineta later confirmed his
suppressed 9/11 Commission testimony and refuted Cheney’s account of arriving
later.During the CPAC conference, WeAreChange.org confronted Cheney about
these questions, which he refused to address.“Hey Mr. Cheney, what did you do
in the underground bunker on 9/11? Dick Cheney we know what you did on 9/11
with the standdown order. Norman Mineta testified against you on the 9/11
Commission report. What happened on 9/11?”When he was being forced out,
WeAreChange.org founder Luke Rudkowski calmly asked security not to push
him; security backed off after asking him, ‘Are you being polite?’
Luke Rudkowski and James Lane of We Are Change confront Dick Cheney in
Washington D.C. at CPAC 2/10/2011.
WeAreChangeOklahoma – Newt Gingrich and Dick Cheney (CPAC 2011)
Chairman of the Joint Chiefs of Staff Instruction 3610.01A issued June 1, 2001 on
“Aircraft Piracy (Hijacking) and Destruction of Derelict Airborne Objects (Click
each document for a larger image)
Cheney dodged the continuing questions by exiting with his entourage into an
elevator. As a woman started repeating “Thank you Mr. Cheney for all you’ve
done,” Rudkowski interjected that he was a ‘terrorist.’ Certainly, the use of
admittedly elevated terror alerts throughout the Bush administration to stoke the
fear card and score political dominion alone is reason to justify this label. The
implications of what really happened on 9/11, and in relation to Cheney’s
apparent standdown order, is even more compelling. Notably, a change in the
standard operating procedure for the chain of command during the event of a
hijacked aircraft was changed in June 2001, including subjecting NORAD’s
response to DoD approval (SEE BELOW).
The former Vice President’s re-entry into the public limelight, after years of
dealing with heart issues, is what appears to be an attempt to re-brand the Bush
Administration in time to retain neo-con power in the coming GOP presidential
primary field, where tea party politics and candidates like Ron Paul have
obviously taken root with conservative voters in the years of the Obama
administration. This confrontation occurred during the same CPAC convention
where Ron Paul won the presidential straw poll and Dick Cheney was heckled and
called a “war-monger” during a pep rally where Donald Rumsfeld was given the
“Defender of the Constitution Award.”
From Norman Mineta’s testimony:
“During the time that the airplane was coming into the Pentagon,
there was a young man who would come in and say to the Vice
President…the plane is 50 miles out…the plane is 30 miles out….and
when it got down to the plane is 10 miles out, the young man also
said to the vice president “do the orders still stand?” And the Vice
President turned and whipped his neck around and said “Of course
the orders still stand, have you heard anything to the contrary!?’

Bank regulators update Senate (Washington Post) [ Update, riiiiight! … sounds

like a plan! … for the spectator sport called the u.s. senate … what an over-
rated, over-compensated, over-stayed bunch of incompetent boobs. Time for
shorter terms and term limits for these failed, flawed, and venal politicians;
along with the paycuts they richly deserve. Their solution to most problems
… leave it to the perps as they bilk the nation but contribute mightily to their
campaign funds. ] Lawmakers hope to set nationwide requirements for
foreclosures.
Boehner draws line on spending bill (Washington Post) [ Lines … riiiiight! …

republicans are great ones for drawing lines … Poppy bush’s line in sand
( everyone who really knows the real story knows that bush’s cia station
chief, april glaspie gave sadam hussein the green light to invade Kuwait over
their dispute concerning Kuwait’s slant-drilling of Iraqi oil reserves … to
contrive the conflict. ), lines of war-criminal dumbya bush of with us or
aggin’ us, etc., but we can thank both parties in terms of their bi-partisan
contribution to ever-growing unemployment LINES. Yes, unemployment
numbers were quite bad this day, but the frauds on wall street with fed help
you’ll ultimately pay for rallied anyway. Jobless Recovery?: 25
Unemployment Statistics That Are Almost Too Depressing To Read ‘…
Unemployment is up again! That’s right – even though Wall Street is
swimming in cash and the Obama administration is declaring that “the
recession is over”, the U.S. unemployment rate has gone even higher. So
are you enjoying the jobless recovery? Economic Collapse Blog ‘Guess
what? Unemployment is up again! That’s right – even though Wall Street is
swimming in cash and the Obama administration is declaring that “the
recession is over”, the U.S. unemployment rate has gone even higher ...
Times are really, really tough and unfortunately the long-term outlook is very
bleak. We should have compassion on those who are out of work right now,
because soon many of us may join them.The following are 25 unemployment
statistics that are almost too depressing to read…. See infra for list
Stock Melt-Up Continues to Ignore Warnings [ While I generally warn
against short-selling as an investment strategy for all but the most
successful speculators (there are very, very few), if there ever was a time to
try your luck at same, that time is now! We’re now beyond the absurd in
these overbought, overvalued, contrived, manipulated markets. See also,
Dave infra, ‘…Further, the Philly Fed (riiiiight … that global hub of
manufacturing activity) came in much higher than expected although inside
the numbers the prices paid vs prices received disparity was the greatest
since 1979. That wasn't a great time for corporate profits. Even though
there's some "discussion" within the Fed over the effectiveness of QE
operations another heavy dose of POMO was released to trading desks
again Thursday. …’ Why Isn’t Wall Street in Jail? Matt Taibbi | Financial
crooks brought down the world’s economy — but the feds are doing more to
protect them than to prosecute them. ( This is not a too big to fail, but a too
willing to pay bribes to jail - reality. This really is beyond the pale,
particularly when they trumpet prosecution of $225 million in medicare
frauds while wall street’s continuing fraud in the trillions remains
unprosecuted – there is no excuse whatsoever – pervasively corrupt,
defacto bankrupt america is done!). ] Minyanville ‘Suttmeier, chief market
strategist at ValuEngine.com: The stock melt-up has the major equity
averages above this week’s pivots putting the focus on the Nasdaq and its
quarterly risky level at 2853. The Dow Transports broke above the potential
double-top. Stocks are ignoring the ValuEngine Valuation Warning and
extreme overbought technical market indicators. The 10-Year yield failed at
my weekly risky level at 3.568 after holding my annual value level at 3.791
last week. Comex gold is above my annual pivot at $1356.5 and closed
above its 50-day simple moving average at $1372.2. Nymex crude oil remains
below my semiannual pivot at $87.52, but is now oversold. The euro is above
its 50-day simple moving average at 1.3377 with this week’s risky level at
1.3636.
New Highs for the Move for the Major Equity Averages
• The Dow Industrial Average (12,288) remains extremely overbought and

closed above its weekly pivot at 12,274 testing 12,303.16. The 21-day simple
moving average rises to 12,063 with today’s risky level at 12,399.
• The S&P 500 (1336.3) closed above its weekly pivot at 1335.6, setting a new
high for the move at 1337.61. The 21-day simple moving average rises to 1306.1
with today’s risky level at 1344.4.
• The Nasdaq (2826) closed back above this week’s pivot at 2811 with my
quarterly risky level at 2853. The 21-day simple moving average rises to 2756
with today’s risky level at 2840.
• Dow Transports (5286) tested and held its weekly pivot at 5206 on Tuesday,
then breaks above its January 18 high at 5256.80 to 5306.54 on Wednesday.
Today’s risky level is 5317.
• The Russell 2000 (828.37) is above its weekly pivot at 811.80 with its July 2007
high at 862.00. Today’s risky level is 837.39.
We continue to trade under a ValuEngine Valuation Warning -- Sixteen of 16 sectors

overvalued with only 32.4% of all stocks undervalued on Wednesday, below the 35%
threshold by this measure. This also means that 67.6% of all stocks are overvalued.
10-Year Note -- (3.619) Is between my annual value level at 3.791 and my weekly risky
level at 3.568.
Comex Gold -- ($1375.3) My annual pivot is $1356.5 with the 50-day simple moving
average at $1372.2 with my monthly risky level at $1412.4.
Nymex Crude Oil -- ($85.00) Continues to trade below my semiannual pivot at $87.52
and is now oversold on its daily chart with today’s value level at $82.85.
The Euro -- (1.3567) Still above its 50-day simple moving average at 1.3377 with my
Housing Starts and Permits Remain Soft -- Housing Starts increased 14.6% in
January, but the gain was entirely due to a 77.7% increase in the multifamily sector.
Single family starts declined 1.0% to a 413,000 annual rate with single family permits
down 4.8%. Overall building permits declined 10.4%.
More Information From the NAHB Housing Market Index -- If you look at the
National Association of Home Builders Housing Market Index going back to 1985 it
never went below 20 until October 2007. During the 1988 to 1992 mini-crisis the lowest
reading was 20 in January 1991. For the current popping of the housing bubble this
index peaked at 72 in June 2005, when the CEOs of the publicly traded home builders
described the housing market as the best they have ever seen.
Back in June 2005 ValuEngine had the home builders extremely overvalued and I noted
their weekly price charts were extremely overbought. I wrote a piece calling for a
summer 2005 peak for the home builder stocks, which proved to be a prudent market
call. The NAHB HMI has been 20 or below since September 2007 and has been
between 13 and 16 the past nine months. The exception was a 22 reading in the height
of the $8,000 first-time homebuyer tax credit in May 2010.
The Mortgage Bankers Association reported that their weekly Mortgage Applications
Survey decreased 9.5% with the Refinance Index down 11.4%, to the lowest reading
since July 3, 2009. The Purchase Index decreased 5.9%, and is 18.2% lower than a
year ago. A major drag is attributed to the above 5% mortgage rate, up nearly a full
percentage point from the October 2010 low, in the midst of when Fed Chief Bernanke
was touting that the pending QE2 program would push longer-term yields lower to help
consumers. The only thing that QE2 has done is inflate an equity market to an
overvalued and overbought inflating financial bubble!
The minutes from the latest Fed Meeting indicates that unemployment and tight
credit conditions continues to be a drag on the housing market. History repeats:
Housing peaked in mid-2005 and the recovery has been nil. Community banks peaked
at the end of 2006, and Bank Failure Friday continues. Regional Banks peaked in
March 2007, and toxic assets remain in the banking system. Fed policy with that
ridiculously low funds rate and QE2 is masking problems that will still plague the US
economy for the next several years.’
Imams wage political battle against U.S. (Washington Post) [ Yeah! Are not these
native Afghans freedom fighters in the highest, truest, and most noble sense of
the term. I mean, pervasively corrupt / defacto bankrupt america’s destructive and
corrupting influence is unequivocal (including the resurgent heroin trade that had
all been eradicated by the Taliban). This unlawful incursion is a lose, lose
scenario for all parties; and, america’s / israel’s / nato’s zionist aspirations in the
region are among the most self-destructive, self-defeating policies in world
history. ] For the U.S. government, and for the 100,000 American troops fighting
in Afghanistan, the messages delivered last Friday could hardly have been worse.
Clock is ticking (Washington Post) [ Oh come on! Don’t be a spoil-sport realist;

after all, these are, unlike mubarak, young pro-saudi-american dictators and still
have a bright future of repression / oppression / suppression ahead of them for
the greater good of … status quo? … nobody really thinks so. Tick-Tock! ]
Editorial: In Bahrain, America should press the government to cease its repression
[ Don’t hold your breath. ]. Bahrain authorities launch surprise attack on
protesters [There’s the america and saudi Arabia effect; far less than democratic
and far more deadly in the mideast among other places; talk about hypocrites.
How does one family claim ownership of all the oil reserves of a sovereign nation
as the saudis; time for the saudis to go the way of dictator Mubarak and take the
war criminal americans with them. ] Los Angeles Times Tear gas canisters
bombard sleeping protesters in Manama's Pearl Square. At least two men are
reported killed Video: Bahrain protesters look to emulate Egypt revolt
euronews Riot Police Attack Bahrain Protesters Voice of America



CONFERENCE...
China.” ]

Obama joins Wisconsin budget battle Democratic lawmakers flee state in
attempt to block anti-union bill (Washington Post) [ Looks like capital hill can
pick up a few pointers from ‘dem dems … fleeing the state, that is … except in
their case it’ll be fleeing the nation-state, or what’s left of same. Drudgereport:
DEBT NOW EQUALS ENTIRE ECONOMY
'Day of Rage' Hits Wisconsin over state unions...
Madison schools closed; 1,100 teachers call in 'sick'...
Obama: 'Assault on Unions'...
Obama-founded OFA spearheading effort to defeat bill...
Boehner: 'Suspend these tactics'...
DEMS FLEE STATE HOUSE
SENATE DEMOCRATS FOUND -- AT A RESORT IN ILLINOIS!
Gov. Walker calls on Dems to return, vote...
Protesters, supporters clash in Ohio over union bill...
Activists swarm Boehner's Capitol Hill home; Chant 'don't tread on DC'..
Carney: Stimulus 'Goals Have Been Met'...
GALLUP: Unemployment hits 10%...
Feds Borrow Additional $29,660/Household Since Obama Signed Stimulus...
Ratings Downgrades Loom for Cash-Strapped States...
] President accuses Scott Walker, the state's GOP governor, of unleashing an

"assault" on unions in plan to roll back benefits for public workers.
Bubble Talk: Grantham Warns Of The Paradox Of Profit Margins Reese ‘In the
second half of his year-end letter, GMO’s Jeremy Grantham takes a look at
numerous asset bubbles throughout history, warning investors to ignore bubbles
at their own peril. Grantham’s GMO manages more than $100 billion in
assets.“Responding to the ebbs and flows of major cycles and saving your big
bets for the outlying extremes is, in my opinion, easily the best way for a large
pool of money to add value and reduce risk,” Grantham writes. “In comparison,
waiting on the railroad tracks as the ‘Bubble Express’ comes barreling toward
you is a very painful way to show your disdain for macro concepts and a blind
devotion to your central skill of stock picking. The really major bubbles will wash
away big slices of even the best Graham and Dodd portfolios.” Grantham says
that bubbles form because of a cycle in which investment managers, feeling the
career risk in making bold moves, fall prey to “herding”. It also involves what he
calls “double counting”. Profit margins, he says, are mean-reverting, meaning
that at times when margins are high, investors should be willing to pay less per
dollar of earnings. In reality, what often happens, he says, is that when margins
are high, inflating earnings, investors pay more for each dollar of earnings.“It is a
classic fallacy of composition,” he says. “For an individual company, having an
exceptional profit margin deserves a premium P/E against its competitors. But for
the market as a whole, for which profit margins are beautifully mean reverting, it
is exactly the reverse. This apparent paradox seems to fool the market
persistently.”Also necessary for a bubble to form: a generous money
supply, Grantham adds.Grantham also shows how bubbles — from the South Sea
Stock Bubble of the early 1700s to the recent U.S. housing bubble — always go
back to their original trend that was in place before the bubble formed.’
Great Inflation Debate: Core Producer Prices Run Hot Phillips ‘In the monthly
battle over whether inflation is in the offing, the inflationistas got
something to hold onto this morning. The monthly core producer prices for
January — stripping out food and energy prices — came in at 0.5%, higher
than 0.2% than economists had been expecting. Miller Tabak’s Peter
Boockvar notes that the main rise in the core price was a 1.4% increase in
prescription drug costs.
Alan Ruskin of Deutsche Bank writes:
Core intermediates and core crude were worryingly strong. In theory

this pipeline pressure is not good for risk appetite and equities one
way or the other. Either it dampens profit margins, or it is passed
along to consumers, hurting real disposable income and
encouraging policy tightening. Given a choice the market much
prefers the former to the latter, not least because profit margins are
less transparent, and determined even more by labor costs than raw
materials. As such, pipeline price pressures will probably only
seriously dampen enthusiasm for equities and risky assets when
they start to show up more obviously in CPI or less clearly in
industrial earnings.CPI will be on the economic docket on Thursday,
with expectations for an increase of 0.3% in the headline number and
0.1% in the core figure. That number will be a lot more important to
the markets. Yields on Treasurys are up a bit after the PPI report, but
nothing major.’
World Bank President Zoellick Says Surging Food Prices Have Pushed 44 Million
People Into Extreme Poverty Countries in Latin America and Africa,
including Bolivia and Mozambique, are most at risk of food riots as prices
advance, the United Nations reported.
Ongoing Dollar Devastation Sends Silver Above $31, Only $18.45 From Hunt
Brother High It is good to see that things are back to normal. The now
irrelevant, and very soon to be former reserve currency is getting pummeled
as stocks go up on 410,000 initial jobless claims nearly 2 years after the end
of the recession.
Replace the Federal Reserve Altogether A Good Idea Rather than have
designation to what the Fed is doing we believe to a great extent the term
quantitative easing will fade from the major media and Fed announcements,
probably to be replaced by a term such as accommodation.
Is Apple’s Afterhours Weakness Based On The Assessment Of A Less Than

Credible “Doctor?” As is by now well-known, Apple stock is
underperforming after hours following reports of an allegedly sickly-looking
Steve Jobs leaving the Stanford cancer center.
State of Denial On a day when crude oil passes $104 a barrel and gold crosses
$1,380 an ounce, we would like to reflect on inflation in the currency supply
and inflation in commodities. In the grand cosmic drama of international
relations, every country seems to be dealing with inflation in their own
idiosyncratic ways.
Jobless claims tick back above 400,000 CNNMoney | Number of Americans filing
first-time claims for unemployment benefits edged up last week.
Why Isn’t Wall Street in Jail? Matt Taibbi | Financial crooks brought down the
world’s economy — but the feds are doing more to protect them than to
prosecute them.
Consumer prices jump in January Los Angeles Times -US inflation index rises
0.4% from December, the second straight monthly climb. Core inflation rises
0.2%, the highest monthly gain since October 2009. Thursday Look Ahead:
Markets on Inflation Watch CNBC.com The Fed Is Wrong, Inflation Is Here
Forbes (blog)
National / World
Cancer causing chemicals found in cola coloring ingredient The “caramel

coloring” used to color all the top cola brands isn’t natural caramel coloring
at all. Instead, it’s made by reacting sugars with ammonia and sulfites at
high temperatures. This reaction results in the formation of 2-
methylimidazole and 4-methylimidazole, both of which are chemicals
documented by the U.S. government to cause cancer in mammals.
Two-year-old girl feared among four dead in Bahrain as riot police engage in pre-
dawn protest crackdown At least four people have been killed including a
two-year-old girl in Bahrain after police carried out a raid on anti-government
protesters.
Exclusive video: Cops shooting at protesters in deadly Yemen unrest Security

forces have clashed with anti-government protesters in Yemen on the
seventh consecutive day of demonstrations calling for the ouster of the
president. Police have shot and killed two protesters in the Yemeni city of
Aden as unrest in the capital Sanaa against President Ali Abdullah Saleh
flared for a fourth straight day. The fatalities were among three people taken
to Naqib hospital in Aden. Medics said both fatalities died of their wounds.
ABC Journalist Beaten, And At Least One Is Killed As Protests In Bahrain Turn
Violent The situation in Bahrain is rapidly deteriorating.
Hosni Mubarak Not Dying, Had Breakfast on the Beach Former Egyptian
president Hosni Mubarak was well enough to have breakfast on the beach
today and is doing well, a sharp contradiction to reports that the sidelined
strongman had slipped into a coma and was dying, a well placed source told
ABC News.
TSA Criminals Caught Stealing Cash, Arrested for Assault Steve Watson |
Deviants, dregs of society stealing people’s belongings and feeling them up
on behalf of the federal government.
Milestones of the Impending Police State Alex Jones | The engineered financial
crisis necessitates a high-tech police state and further erosion of liberty.
Day Of Rage: Americans Finally Reacting To Economic Rape? Paul Joseph Watson
| Cairo Moves To Madison: Protesters mass in hallways of Wisconsin state
Capitol as debt black hole threatens riots. Last month we speculated how
long it would take for the scenes on the streets of Cairo to be repeated in
America. After all, Americans are facing similar levels of economic rape to
those that prompted Egyptians to rise up and overthrow 30 year dictator
Hosni Mubarak.
Teachers and Police Battle in Oaxaca, Mexico Kurt Nimmo | Oaxaca clash
reminiscent of street battles over wages in 2006.
Baghdad wants U.S. to pay $1 billion for damage to city Iraq’s capital wants the
United States to apologize and pay $1 billion for the damage done to the city
not by bombs but by blast walls and Humvees since the U.S.-led invasion
that toppled Saddam Hussein.
Betrayed! Tea Party Politicians Vote To Renew The Patriot Act For a moment,
imagine that you are awakened one night by a heavily-armed team of federal
agents dressed in all black breaking into your home.
Colin Powell demands answers over false Iraq intel: reports Ex-secretary of state
Colin Powell called on the CIA and Pentagon to explain how he was given
unreliable information which proved key to the US case for
Correspondent sexually assaulted, beaten in Cairo CNN | CBS News

correspondent Lara Logan was reporting on the protests in Egypt.
Fed upgrades economic outlook (Washington Post) [ Wow! Like the ‘no-recession
/ great recession / depression’ , what do expect these incompetent, and
complicit wall street favored frauds to say. This is truly an existential
moment of desperation for them and as before, they are disposed to
anything that buys them time … I say: they’re out of time! 47 Statistics That
Indicate That Economic Stress Points In 2011 Could Be Setting The Stage
For A Global Economic Meltdown In 2012 Is the world approaching a
devastating global economic meltdown? Right now there are a large number
of factors that are creating economic stress points all over the globe.‘The
American Dream Feb 16, 2011 Is the world approaching a devastating global
economic meltdown? Right now there are a large number of factors that are
creating economic stress points all over the globe. All of the crazy money
printing that the Federal Reserve and other central banks have been doing is
putting inflationary pressure on agricultural commodities, oil and precious
metals. Massive floods, horrific droughts and extreme weather patterns all
over the globe are ruining crops and creating food shortages. Some nations
are now actually hoarding food, and in other nations rising prices have
sparked food riots. The price of oil has been moving back towards $100 a
barrel, and if it stays at a high level for an extended period of time that is
going to have very serious consequences for the global economy. In
addition, the growing sovereign debt crisis could erupt again at any time.
Half a dozen nations in Europe are on the verge of insolvency, Japan’s
national debt is now well over 200 percent of GDP, and the global financial
system is growing increasingly concerned about the exploding national debt
of the United States. The truth is that the entire world financial system is a
house of cards balanced on a razor’s edge and it could come down at any
time.
Sadly, very little has changed since the world financial system experienced
almost a complete meltdown back in 2008. Global financial markets are still a
whirlpool of debt and speculation. One really bad week could put us right back
where we were prior to the infamous Wall Street bailouts. Very little in our world
is truly stable anymore. As we have seen recently in Egypt, the globe can literally
change almost overnight. All it would take is for one really bad event to happen
and world financial markets would instantly start imploding.
So when will the coming economic collapse happen? Nobody knows for sure,
but the fact that the global economy is increasingly becoming less stable as we
approach the year 2012 is making a lot of people very nervous.
The following are 47 statistics that indicate that economic stress points in 2011
could be setting the stage for a global economic meltdown in 2012….
#1 According to the United Nations, global food prices set a new all-time record
during the month of January.
#2 In early February the worst freeze in 60 years wiped out entire crops all across
the southwestern U.S. and northern Mexico. Already, it has been reported that
some U.S. supermarkets have doubled or even tripled prices for certain produce
items.
#3 It is being reported that due to the recent horrible freeze in Mexico cases of
tomatoes that would usually cost shop owners between 12 and 15 dollars are now
going for up to $40.
#4 One of China’s key agricultural provinces is facing its worst drought in 200
years.
#5 The Food and Agriculture Organization says that up to two-thirds of China’s

wheat crop could be at risk of failing due to weather conditions.
#6 Officials in Mexico are estimating that four million tons of corn have been lost
because of the recent freeze. That represents a full 16 percent of Mexico’s annual
corn harvest.
#7 The price of corn has doubled over the last six months and it recently hit a
new all-time high.
#8 The U.S. Department of Agriculture has announced that corn supplies are the
tightest that they have been in 15 years.
#9 It appears that Chinese imports of corn will be about 9 times larger than the
U.S. Department of Agriculture originally projected them to be for 2011.
#10 The price of wheat has more than doubled over the past year and it hit a 30-
month high on Monday.
#11 In the event of a global catastrophe, current global stockpiles of wheat would
only be able to feed the world for 82 days.
#12 According to Forbes, the price of soybeans is up about 50% since last June.
#13 The price of cotton has more than doubled over the past year.
#14 The commodity price of orange juice has doubled since 2009.
#15 The price of sugar is the highest it has been in 30 years.
#17 In the U.K., the official rate of inflation is now twice as high as the target rate
of inflation.
#18 Inflation in China is starting to get out of control. For example, food prices in
China rose 10.3 percent during the month of January.
#19 Almost 14 percent of all credit card accounts in the United States are
currently 90 days or more delinquent.
#20 New home sales in the state of California were at the lowest level ever
recorded in the month of January.
#21 According to the U.S. Bureau of Labor Statistics, the number of job openings
in the United States declined for a second straight month during December.
#22 Average household debt in the United States has now reached a level of
136% of average household income.
#23 It is estimated that there are about 5 million homeowners in the United States
that are at least two months behind on their mortgages, and it is being projected
that over a million American families will be booted out of their homes this year
alone.
#24 Today, 46% of all Americans carry a credit card balance from month to
month.
#25 700,000 Americans have signed up for a credit card that has interest rates
that go as high as 59.9%.
#26 Americans now owe more than $889 billion on student loans, which is even
more than they owe on credit cards.
#27 The FDIC is “insuring” U.S. bank deposits that total 5.4 trillion dollars with a
deposit insurance fund that is currently sitting at approximately negative 8 billion
dollars.
#28 The Social Security trust fund will run a deficit of 56 billion dollars this year.
Just a couple of years ago government planners were promising that we would
not have any Social Security deficits until at least 2016 or 2017.
#29 When you adjust wages for inflation, middle class workers in the United
States make less money today than they did back in 1971.
#30 4.2 million Americans have been unemployed for one year or longer at this
point.
#32 According to a recent Gallup poll, 35 percent of Americans believe that

unemployment is currently the most important problem in the United States.
Another 29 percent believe that the economy is currently our biggest problem.
#33 Gallup also says that 19.6 percent of the workforce in America is currently
either unemployed or underemployed.
#34 The U.S. government says that 504,000 Americans “dropped out of the labor
force” in January.
#35 The Obama administration is projecting that the federal budget deficit will
be 1.65 trillion dollars for fiscal 2011.
#36 It is estimated that the total U.S. national debt will be greater than 100 percent
of GDP by the end of this fiscal year.
#37 The U.S. government relies on foreign nations such as China and Japan to
finance 40 percent of all new government debt.
#38 State and local government debt is now sitting at an all-time high of 22
percent of U.S. GDP.
#39 The Chinese are now hoarding gold like there is no tomorrow. In fact,
Chinese demand for gold has now risen to approximately 25% of total global
production.
#40 According to a recent report from the World Economic Forum, the world is
growth” over the next decade.
#41 According to the U.S. Conference of Mayors, visits to soup kitchens are up 24
percent over the past year.
#42 One out of every seven Americans is now on food stamps.
#43 One out of every six elderly Americans now lives below the federal poverty
line.
#44 During the last school year, almost half of all school children in the state of
Illinois came from families that were considered to be “low-income”.
#45 According to a survey released very close to the end of 2010, 55 percentof all
Americans are now living paycheck to paycheck. A major economic downturn
could quickly wipe out millions of families.
#46 Gasoline prices in the United States are now the highest that they have ever
been in the middle of February.
#47 Faith in our economic system continues to decline. According to one new
report, only 26 percent of Americans now trust the U.S. financial system.’
Deception at the Fed Dr. Ron Paul | The Federal Reserve has been given a dual
mandate: keeping prices stable and maximizing employment. This policy
relies in part on numerical chicanery. Obama proposes $3.7 trillion budget
(Washington Post) [ What the heck! It’s only ‘helicopter ben’ monopoly
money anyway; that paper stuff (Globalists Push SDRs as World Reserve
Currency As investor Marc Faber noted last year, this funny money
intervention by the Federal Reserve is going to create a final crisis that will
destroy the U.S. financial system. The Fed “will print and print and print until
the final crisis wipes out the whole system,” Faber warned. IMF calls for
dollar alternative The International Monetary Fund issued a report Thursday
on a possible replacement for the dollar as the world’s reserve currency. The
IMF said Special Drawing Rights, or SDRs, could help stabilize the global
financial system. ). Speaking of Monopoly / atlantic city, n.j., maryanne
trump barry and sam alito, et als have done all right for themselves as the
corrupt judiciary usually does, one way or another. Indeed, judicial
retirement funds for these plushly accoutered lifetime appointees is up
25.9% and the general operating fund up 6.6% (source,
http://www.washingtonpost.com/wp-srv/special/politics/federal-budget-
2012/index.html … the trumps are getting it up front and on the back end,
which is typical in a pervasivly corrupt system as defacto bankrupt america
… abolish the courts . Connecticut, California join probe of Ally
(Washington Post) [ I’d be much more impressed if they initiated a probe of
more readily discernible criminal offenses in violation of the RICO Act
(Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut,
and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt
federal judges as maryanne trump barry, sam alito, shiff, matz
(california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-
called system is pervasively corrupt and broken (AP) Abolish the
corrupt, costly, economically wasteful lifetime extravagantly appointed
federal courts - see RICO case
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenalt
yofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ) ]
http://albertpeia.com Frauds/Liars (sic-lawyers)Covering Up for Other
Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc.,
Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part
of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney
Grievance Against Fraud coan et als Or Here For A Clearer View Of Filed
Grievance Complaint, Response, Exhibits, and Related RICO Filings Note
the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State
Court Rep., State Atty. General Office Rep., and even a Vegetable Garden
yale law prof who probably never practiced law in his life. How Pathetic!
http://albertpeia.com/fbiofficela91310 ] Justice: FBI improperly opened
probes (Washington Post) [ I just hope they’re as zealous (in probing
readily discernible crime) with regard to my RICO matters and the corruption
in the (judicial / legal) process since, in the final analysis, it will have been
the corruption within that will have brought the nation down irrevocably and
totally.]
] Policymakers think the recovery is on "firmer footing." But they also expect
high unemployment to persist at least through the end of 2013.
Panetta outlines plan for bin Laden (Washington Post) [ Yeah, and if panetta’s
grandmother had wheels she’d be a trolley car. I mean, how much more irrelevant
can the cia become, beyond their drug deals, arms deals, among other self-
interested / perpetuating ops / commotions / promotions. In case they haven’t
looked recently, pervasively corrupt america is defacto bankrupt; and in large
part owing to their flawed, self-perpetuating strategies (oh, how they loved and
miss the cold war). Who cares (about Osama bin Laden or his deputy Ayman al-
Zawahiri). Indeed, one way or another, it makes no difference. Moreover, take a
look at the ‘stand-down’ order as discussed infra regarding ‘that pearl harbor
event / neo-con wet dream’. They are so pathetic! A parallel universe? They only
wish! ] CIA Director Leon Panetta told Congress on Wednesday that if Osama
bin Laden or his deputy Ayman al-Zawahiri is captured they will be held by the
military and probably will be sent to Guantanamo Bay. (Reuters)
On national debt, interest is the monster (Washington Post) [ No! That’s not
correct! This is a two-headed monster and the gargantuan principal amount
the other head. Bondholders will never be paid (paper turned over for paper
till the biggest ponzi scheme in world history comes tumblin’ down.
Moreover, assumptions are wildly optimistic and totally unrealistic).
Pervasively corrupt america is defacto bankrupt! That’s reality! Howard
Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"
11-25-10 ‘The U.S. economy "is a complete disaster," Howard Davidowitz …
Are you kidding me? "Here are the numbers...we're broke," Davidowitz
declares, noting the U.S. government goes $5 billion deeper into debt every
day and is facing $1 trillion-plus annual deficits for the next decade. "In
other words, we're bankrupt."As with the economy, Davidowitz is
unwaveringly consistent in his views on President Obama, calling him
"deranged, dysfunctional and discredited."Results of the midterm election
show "the people of this country think we are in a catastrophe," he says.
"I'm with them." Timid Tuesday: Is it Safe? Davis ‘… This is how we pay
off our current debts and I think bondholders are simply happy to get
CAREFUL OUT THERE! ‘
] Starting in 2014, net interest payments will surpass the amount spent on
education, transportation, energy and all other discretionary programs
outside defense. In 2018, they will outstrip Medicare spending
House brainstorms for budget trims (Washington Post) [ Brainstorms? The mere
mention of the word brain juxtaposed with the denizens of capital hill and
one can’t help but conjure up images of multiple scarecrows scurry about
that yellow brick road en route to see the wizard while singing in unison ‘if
they only had a brain’. ]
In Bahrain, authorities move against protesters Police use tear gas, clubs and
rubber bullets to disperse crowd (Washington Post) [ Bahrain authorities launch
surprise attack on protesters [There’s the america and saudi Arabia effect; far
less than democratic and far more deadly in the mideast among other places; talk
about hypocrites. How does one family claim ownership of all the oil reserves of a
sovereign nation as the saudis; time for the saudis to go the way of dictator
Mubarak and take the war criminal americans with them. ] Los Angeles
Times Tear gas canisters bombard sleeping protesters in Manama's Pearl Square.
At least two men are reported killed Video: Bahrain protesters look to emulate
Egypt revolt euronews Riot Police Attack Bahrain Protesters Voice of America


CONFERENCE...
China.” ]
] At least two are killed, while those involved in the protests say others are
critically injured. There is no official word on deaths or injuries.
Bulls Remain Undaunted: Dave's Daily ‘Bulls liked earnings from Dell and
Abercrombie & Fitch as earnings continue to make analysts' forecasts look
dumb. So far earnings are beating estimates by nearly 80%. M&A deals with
Family Dollar and Genzyme being acquired were also positively received. Ignored
was poor housing data as starts beat expectations owing to builders trying to get
ahead of new building code rules leading to a large beat. But, new permits were
down sharply. Even "core" PPI showed inflation taking hold while Industrial
Production declined well below estimates. And, Borders finally gave up the ghost
by filing for bankruptcy. It's interesting how these things cycle. Twenty years ago
you lined-up at Blockbuster for the latest video and now it's on death's door.
Borders was the next hip thing and now we have ereaders and "poof!" there it
goes. Fed minutes showed some "discussion" over the merits of continuing QE2
given better data probably not the result of these activities. Nevertheless they
upgraded economic growth slightly which was well-received. Perhaps POMO will
lighten up, it did today. Bulls are determined to keep this rally going even if all of
North Africa and the Middle East blow up. Emerging markets continue to suffer
relative to U.S equities which probably reflect repatriation from less stable areas
and a bet on better growth prospect at home. Commodities rallied and the dollar
fell which is no surprise. Bonds behaved poorly with higher inflation in view.
Volume improved Wednesday but overall still remains light…’
Great Inflation Debate: Core Producer Prices Run Hot Phillips ‘In the monthly
battle over whether inflation is in the offing, the inflationistas got
something to hold onto this morning. The monthly core producer prices for
January — stripping out food and energy prices — came in at 0.5%, higher
than 0.2% than economists had been expecting. Miller Tabak’s Peter
Boockvar notes that the main rise in the core price was a 1.4% increase in
prescription drug costs.
Alan Ruskin of Deutsche Bank writes:
Core intermediates and core crude were worryingly strong. In theory

this pipeline pressure is not good for risk appetite and equities one
way or the other. Either it dampens profit margins, or it is passed
along to consumers, hurting real disposable income and
encouraging policy tightening. Given a choice the market much
prefers the former to the latter, not least because profit margins are
less transparent, and determined even more by labor costs than raw
materials. As such, pipeline price pressures will probably only
seriously dampen enthusiasm for equities and risky assets when
they start to show up more obviously in CPI or less clearly in
industrial earnings.
CPI will be on the economic docket on Thursday, with expectations for an

increase of 0.3% in the headline number and 0.1% in the core figure. That number
will be a lot more important to the markets. Yields on Treasurys are up a bit after
the PPI report, but nothing major.’
Apple and Google's Weaknesses Summarized in 250 Words Shuster ‘Buzz was a
flop. Safari can't grow. And neither Google or Apple seem to understand why.How
can Google and Apple -- two companies who have set standards, cornered
markets, and mastered their trades -- be so adept in certain areas and completely
outmatched by a three-person startup in another? Google design manager Nadav
Savio answered that question by eloquently summarizing the biggest
weaknesses of the two companies in a mere 250 words.
It's been said that Google doesn't get 'social' and, though I think that
is vastly overstated, there is truth there. Similarly, I'd say that Apple
doesn't understand the internet. Well I have a simple theory about it.
There's a cliché that everyone's greatest strength is also their
greatest weakness, and I believe that applies as well to organizations
as to people.
Take Apple. They make amazing, holistic products and services and
one of their primary tools is control. Fanatical, centralized control.
Control over the design, over the hardware, over the experience. And
that's exactly the opposite of the internet, which is about
decentralization and messy, unfiltered chaos.
Google, on the other hand, gets the internet, but has trouble with
humans. And I'd say it's not so much because it's an engineering-
heavy organization or that Google doesn't know how to have fun
(both reasons I've seen stated publicly). I think it's that one of
Google's biggest strengths is in search, which is largely about things
like precision and recall, about stitching the chaos of the internet
into some semblance of order. But social interactions happen in the
variance, in the messy spaces that seem meaningless. Much social
meaning is carried by phatic communication and that is exactly
opposite to what Google does, which is to optimize signal vs. noise,
looking for the meaning and discarding the meaningless.
Presumably, we can find the undoing of other organizations in their

strengths. What, for example, is Microsoft really, really good at? Or
Facebook?’
National / World
‘Fox News Caught’ at #1 trend after Ron Paul hoax Infowars | Search exposing Fox
News-CPAC dirty trick tops Google trends.
Kill Switch Beta: Government Blocks 84,000 Websites Kurt Nimmo | Sites were
taken offline in calculated fashion in order to send a message.
Report Vindicates Questions In Anthrax Conspiracy Steve Watson | Independent

panel finds that science linking Ivins to government anthrax spores was
inconclusive.
V for Victory Continues to Draw Strong Submissions Infowars.com | Flood of

submissions show a wide variety of creativity and dedication to spreading
the word of liberty.
The Takedown of Hosni Mubarak The Alex Jones Channel | Why has the media left
untouched the mystery of Mubarak’s reported coma coinciding with his
sudden departure?
Hillary Announces Expanded US Cyber-Coup Campaign Tarpley.net | Wikileaks is

Cass Sunstein’s “cognitive infiltration” project.
Poll: Majority of Republicans Doubt Obama’s Birthplace Roll Call | A slim majority
of Republicans still disbelieve Obama was born in the U.S.
Congress begins debate on regulation of financial 'WMDs' (Washington Post)

[ Wow! Sounds like a … ‘no-plan’! I mean, what do regulations, or even laws
for that matter, even matter, which is what in large part matters, concerning
what’s the matter with pervasively corrupt, defacto bankrupt america. Fines
and disgorgement through enforcement of the ‘already on the books’ laws
for the blatant (and still extant, now marked to anything as per FASB
legislated rule change regarding the toxic assets / worthless paper that
continues to be cashed out by the perps with fed help) wall street frauds
would have by multiples surpassed the budget cuts the ‘government’ is
quibbling over as if same would barely put a dent in the unsustainable debt
levels, deficits. How pathetic! ] A House committee is examining how
regulators are writing rules that could determine the safety, efficiency and
cost of derivatives.
Obama careful in crackdown (Washington Post) [ Sounds like a page out of the
former american-installed shah of Iran’s play-book … The important difference
here is the life and death continued struggle of Iran against the Zionist israeli /
american regimes (look at what the latter regimes do, not what they say) …
Indeed, the great american/israeli hope for Iran, ‘son of shah’ … pshaw! I have a
special affinity for Egypt, a land of great wisdom with the richest of histories and
culture and wisdom of the ages in wisely, at one time, holding Cats in their
highest regard and esteem! ] President Obama cautiously criticized the Iranian
government Tuesday for carrying out a deadly crackdown on street
demonstrations, as hard-line legislators in Tehran called for the execution of
several prominent opposition leaders. (Afp/getty Images)
Americans climb out of debt, save more (Washington Post) [ There is what is
known in basic economics as the so-called “paradox of thrift’ and the negative
portends for the economy the natural concomitant. There is no getting away from
that age-old economic equation Gross Domestic Product is the sum of all
spending on goods and services in a nation's economy in a year. The formula for
GDP is: GDP = C + I + G + (Ex - Im), where “C” equals spending by consumers, “I”
equals investment by businesses, “G” equals government spending and “(Ex -
Im)” equals net exports, that is, the value of exports minus imports. Net exports
may be negative. Of late, the C component has risen to near 71%, fueled by
unsustainable credit. Private investment owing to a structural shift has lagged for
want of real (profitable domestic) investment opportunities (the wall street
computer-programmed high frequency churn-and-earn is NOT a component here
but rather a net negative owing to the lesser propensity to consume of the frauds
on wall street), and we all know the direction of government spending. Read
more: GDP and the Players Three: All Together Now: C + I + G — Infoplease.com
http://www.infoplease.com/cig/economics/consumption-investment-
government.html#ixzz1E79N4H4B . That said, this (saving) is still good for
americans generally since the government has long since all but stopped
concerning themselves with the dire predicament of the vast majority of the
nation and citizens. ] The recession that just rocked the U.S. economy happened
in part because Americans were borrowing and spending more than they could
afford. Now, three years after the downturn began, families are moving faster than
many analysts had expected to put their finances in order by paying down debt
and boosting their savings.
Jump in global food prices pushes millions into poverty (Washington Post)
[ There’s no mystery here … the inevitable consequence of the world’s
adoption of america’s funny-money new age alchemy of spinning paper into
fools’ gold … Indeed, the prognostications have been hot and heavy, from
hyperinflationary depression to … as investor Marc Faber noted last year,
this funny money intervention by the Federal Reserve is going to create a
final crisis that will destroy the U.S. financial system. The Fed “will print and
print and print until the final crisis wipes out the whole system,” Faber
warned. Now this fraudulent bubble that the frauds on wall street
commission and sell into is great for the frauds on wall street but bad for
everyone else since that value has to be made up somewhere, by some one
… guess (the obvious)… and if you can’t (guess), you haven’t been paying
attention! ] Data released by the IMF show the cost of grain and other
staples is near its historic high.
So be it? Milbank: Boehner and his party's proposal for budget cuts would
reverse the economic recovery. (Washington Post) [ Come on! Wake up!
Think of it this way, in simple terms. Already bankrupt, you further bankrupt
yourself by spending money you don’t really have which gives that ‘warm
and fuzzy feeling’ (albeit to the next election) and obfuscates the cold, hard
reality. That a structural shift has occurred in economic / financial terms
(that ‘sucking sound’) there is no question. At some point, if there are glass
half-full people in the bunch (I am not one of them and believe this structural
shift is ‘forever’ and defacto bankrupt america’s decline is irrevocable owing
to pervasive corruption, fraud, criminal complicity, etc.. Kind of like madoff’s
ponzi scheme (at some point they always unravel / can’t cover and in the
current news madoff the fraud said the banks knew and you can take that to
the bank since madoff said it) … But isn’t it also true that we all know and
that america’s jig is up! Should the hole continue to be dug so irretrievably
deep that digging the way out is absolutely impossible ( I and others already
believe that point’s been surpassed, and these cuts so small as to be almost
insignificant … Davis ‘… This is how we pay off our current debts and I
think bondholders are simply happy to get anything out of a country that
admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn
(entire global GDP) in the form of unfunded liabilities. The funniest thing
about this (and you have to laugh) is to see Conservative pundits get on TV
and talk about how we need to cut $100Bn worth of discretionary spending
to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax
cuts for the top 1% each year). There is no fixing this and even a Republican
said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS
IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ) Obama
proposes $3.7 trillion budget (Washington Post) [ What the heck! It’s only
‘helicopter ben’ monopoly money anyway; that paper stuff (Globalists Push
SDRs as World Reserve Currency As investor Marc Faber noted last year,
warned. IMF calls for dollar alternative The International Monetary Fund
issued a report Thursday on a possible replacement for the dollar as the
world’s reserve currency. Budget makes deep cuts, cautious trades
(Washington Post) [ I still have great difficulty wrapping my mind around the
cut in the (relatively minuscule) heating oil program for the poor (after all,
that’s potentially lethal to such disenfranchised groups) …
Drudgereport:White House to Slash Heating Program for Poor…but still no
pros of massive frauds on wall street which fines and disgorgement of
would yield huge amounts to cover spending... [ Howard Davidowitz on the
Economy: "Here Are the Numbers ... WE'RE BROKE!" 11-25-10 ‘The U.S.
economy "is a complete disaster," Howard Davidowitz declared here in July,
the most recent in a string of dire predictions from Tech Ticker's most
entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had
any regrets, or was ready to throw in the towel given recent signs of
economic revival. Are you kidding me? "Here are the numbers...we're
broke," Davidowitz declares, noting the U.S. government goes $5 billion
deeper into debt every day and is facing $1 trillion-plus annual deficits for
the next decade. "In other words, we're bankrupt."As with the economy,
Davidowitz is unwaveringly consistent in his views on President Obama,
calling him "deranged, dysfunctional and discredited."Results of the
midterm election show "the people of this country think we are in a
catastrophe," he says. "I'm with them."Check the accompanying video for
more of Howard's unfettered opinions and stay tuned for additional clips
from this interview. And...Happy Thanksgiving! Aaron Task is the host of
Tech Ticker. You can follow him on Twitter at @atask or email him at
altask@yahoo.com’ Timid Tuesday: Is it Safe? ]
] Fed chairman offers dire warnings about the damage Congress could
wreak if it refrains from raising the government's debt limit this spring. ] The
$3.7 trillion plan proposes to trim or terminate more than 200 federal
programs to make room for increases aimed at boosting the economy.
Speaking of Monopoly / atlantic city, n.j., maryanne trump barry and sam
alito, et als have done all right for themselves as the corrupt judiciary
usually does, one way or another. Indeed, judicial retirement funds for these
plushly accoutered lifetime appointees is up 25.9% and the general
operating fund up 6.6% (source, http://www.washingtonpost.com/wp-
srv/special/politics/federal-budget-2012/index.html … the trumps are getting
it up front and on the back end, which is typical in a pervasivly corrupt
system as defacto bankrupt america … abolish the courts . Connecticut,
California join probe of Ally (Washington Post) [ I’d be much more
impressed if they initiated a probe of more readily discernible criminal
offenses in violation of the RICO Act (Other newark / new jersey and new
york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz.,
ie., virginia experience … corrupt federal judges as maryanne trump
barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc..
Defacto bankrupt america’s so-called system is pervasively corrupt and
broken (AP) Abolish the corrupt, costly, economically wasteful lifetime
extravagantly appointed federal courts - see RICO case
yofperjury.pdf
totally.]
John Hussman: Rich Valuations and Poor Market Returns Hussman ‘Last
week, the S&P 500 Index ascended to a Shiller P/E in excess of 24 (this
"cyclically-adjusted P/E" or CAPE represents the ratio of the S&P 500 to 10-
year average earnings, adjusted for inflation). Prior to the mid-1990's
market bubble, a multiple in excess of 24 for the CAPE was briefly seen
only once, between August and early-October 1929. Of course, we
observed richer multiples at the heights of the late-1990's bubble, when
investors got ahead of themselves in response to the introduction of
transformative technologies such as the internet. After a market slide of
more than 50%, investors again pushed the Shiller multiple beyond 24
during the housing bubble and cash-out financing free-for-all that ended in
the recent mortgage collapse. And here we are again. This is not to say that
we can rule out yet higher valuations, but with no transformative
technologies driving the economy, little expansion in capital investment,
and ongoing retrenchment in consumer balance sheets, I can't help but
think that the "virtuous cycle" rhetoric of Ben Bernanke is an awfully thin
gruel by comparison. We should not deserve to be called "investors" if we
fail to recognize that valuations are richer today than at any point in
history, save for the few months before the 1929 crash, and a bubble period
that has been rewarded by zero total return for the S&P 500 since 2000.
Indeed, the stock market has lagged the return on low-yielding Treasury
bills since August 1998. I am not sure that even members of my own
profession have learned anything from this.
[chart]
Based on our standard methodology (elaborated in numerous prior weekly
comments), we presently estimate that the S&P 500 is priced to achieve an
average total return over the coming decade of just 3.15% annually. Again,
we've seen weaker projected returns over the past decade. But then again,
the S&P 500 lost about 5% annually in the decade following the 2000 peak,
and even including the recent advance, has achieved an annual total return
since 2000 of almost exactly zero. So despite periodic speculative runs,
rich valuations have an annoying way of ruining the fun. Equally important,
even during extended speculative periods as we observed in the late-
1990's, those advances have tended to suffer deep and abrupt
intermediate-term corrections once elevated valuations are joined by
overbought conditions, overbullish sentiment, and rising interest rates, as
we observe today.’
Negative Stock Session Follows Disappointing Data Midnight Trader ‘4:30 PM,
Feb 15, 2011 --
• NYSE down 21.48 (-0.26%) to 8,383.67

• DJIA down 41.55 (-0.3%) to 12,227
• S&P 500 down 4.31 (-0.32%) to 1,328
• Nasdaq down 12.83 (-0.46%) to 2,804
GLOBAL SENTIMENT
Hang Seng down 0.96%
Nikkei up 0.2%
FTSE down 0.38%
The Undeniable Signs of Inflation Kaminis ‘January's Import and Export Price Report
showed significant price increases in both imports and exports, and unfortunately,
across both overall measures and those excluding food and fuel. We posit that the
chatter that has overwhelmed the financial airwaves of late, making an argument we
made years ago mind you, is worth listening to once again. Inflation portends to
blindside the market and its caretakers, the group of merry men who shrug off all evil
until it is upon them.
Inflation chatter is all the rage again on the financial airwaves. You will recall our
important work on this subject from several years ago. If not for a near depression that
depressed prices as demand was desolated, the inflation topic would probably have
been the highest concern globally over the last few years. However, now that the global
economy is recovering, and with China firing up all engines, inflation signs and concerns
are resurfacing. Once again, the scent is first found in raw material resources, including
rare earth metals, but also in the high use commodities of energy and agriculture. Those
factors were at play again in driving January 2011 Import and Export Prices higher. For
now, talking-head speak-easies are blowing off the possibility of feed through to finished
goods, but it won't be the first train that runs them over either. Stick with The Greek, and
I'll do my best to keep you out of the way of the loco.
More signs of economic recovery, and also inflation, were found in the latest
import/export prices data, reported today by the Bureau of Labor Statistics for January.
Import prices gained 1.5% in January, marking the fourth consecutive month of plus one
percent increases. That is something that last occurred in July 2008, which to help you
recall the period, was a time in which the now extinct Washington Mutual beast still
roamed the earth, though in small numbers.
The drivers of import price growth are the same now as they were then, commodities,
including energy. Fuel import prices increased 3.9% in January, a snail's pace
compared to the 14.1% jump that characterized the previous three months. But
January's pace is not to be ignored, and neither is the 12.4% increase of the past year,
a period characterized by economic recovery.
Behind the gains in energy prices were a 3.4% increase in petroleum prices, which have
since been dwarfed on Middle East upheaval. And look deeper, as Natural Gas prices
advanced 13% through the month. It was a period in which much of the US got buried in
snow. In fact, cold and snowy weather so affected fuel usage, that natural gas recently
fell below its five-year average for this time of year. As reported by the EIA in its weekly
update, for the period ending February 4, Natural Gas Inventory stood 45 Bcf below the
five-year average. If things were to continue to trend, we might test the bottom of the
historical price range, though the weather is warming significantly across the country
this week. Still, the hijacking of several oil tankers in a short span of time, along with
raised Middle East worries, have oil supply uncertainty adding to push natural gas
prices higher with oil; it being a regionally sourced commodity that is increasingly a
replacement resource for oil.
Drunken train track wandering market guides should take note of the horn in the
distance, as non-fuel import prices increased by 0.8% in January. The noteworthy rise
was driven by industrial supplies and materials (unfinished metals and chemicals drove
this), finished goods, and foods, feeds, and beverages. Consumer goods prices moved
0.3% ahead, with the largest contributors to the increase coming from a 0.9% hike in
apparel, footwear, and household goods prices, and a 4.0% rise in jewelry prices.
Prices for automotive vehicles rose 0.5%, led by a 1.2% increase in parts prices. Here
we see examples of price increase that affect every consumer.
Price increase is still mostly found in raw materials or unfinished goods, but in the case
of rising cotton prices, it is finding its way through to textiles and clothing (apparel up
0.9%). Meanwhile, the government just approved increased ethanol usage in gasoline,
which in the past led to mayhem within the whole of agriculture. While December's
increase in non-fuel import prices was just 0.3%, November's also marked 0.8%,
another measure that draws comparisons to 2008.
Export Prices
Export prices also increased significantly in January, rising 1.2%. The advance for the
full year was 6.8%, the largest 12-month increase since that same late 2007 (Sept.)
through 2008 (Sept.) period; just before the walls came completely tumbling in on the
economy. As the economy improves, it also affects demand for agricultural goods. It is
not that people eat more, though that is certainly the case as well (especially for the
malnourished), but also that they eat more proteins and more processed foods. As
families rise in class, which is occurring in China and India, they also consume more,
and more proteins. This in turn pushes prices higher for proteins and for the feeds used
to raise livestock, which are likewise derived from agriculture.
Meanwhile, what seems to be climate change driven drought in Russia and this year in
China, restricting important supply sources, will only increase pressure on the whole of
agricultural goods, and inevitably processed foods. Agricultural export prices rose 3.2%
in January, adding to a dramatic 12-month advance of 22.6%. Price increase was driven
by advances in soybeans, corn and wheat. While cotton declined fractionally in January,
it has more than doubled over the past year. And a recent freeze in Mexico has
completely wiped out some vegetable crops and will certainly drive prices higher for
Americans.
That is not the end of the story though, as prices for non-agricultural exports also
advanced considerably, rising 0.9% in January. Higher prices for industrial supplies and
materials, capital goods, and automotive vehicles more than offset a 0.4 percent drop in
prices for consumer goods. Higher airfares also contributed to the overall increase, and
those of course are impacted and related to increased fuel costs. Consumer goods
prices might also benefit from dollar play (longer term), and also economies of scale
gained as sales grow. Nonagricultural goods prices are up 5.3% over the last 12
months; that's pretty inflationary for dollar pegged trading partners.
China
Prices of goods imported from China increased 0.3% for the fourth month in a row.
Chinese goods are up 1.4% over the past year. That's healthy price rise, and you will
see more of this if the US government gets its way with regard to the Yuan. You might
see more US jobs return too, but that is debatable, since they might simply find a new
foreign home, say maybe Indonesia. Prices of goods from Japan and all our major
trading partners were up, with significant increases from the EU, Mexico and Canada,
due to fuel.
Conclusion
The pace of price increases should intensify as competition for scarce resources
squeezes them. With factors at play like civil unrest, wild weather and even pirating and
regulation (like with off-shore oil drilling), it seems clear to me that the inflation train is
roaring our way. We think dollar dilution, and the Fed's inflated view of its ability to
reverse the curse, should also burden the economy in the future, especially if US
Treasuries lose their luster globally. Meanwhile, outside of recent stock market gains,
wealth is down due to home value declines. Income should be down also, given high
unemployment. Banks may be opening up a bit, but it should take some time, to maybe
never, before free capital flow comes to be again (and good riddance). Thus, there's a
tight rein around economic horsepower.
We must look towards the expansion of the developing world as the cure for what ails
us. In this regard, the birth of new democracies is a good thing, but global instability and
weak human nature are ugly flies in that ointment, and could ruin everything.’
Silver Markets and Real Money: Dave's Daily ‘I'm old enough to have had a silver
certificate and being a kid never gave it much thought. In 1960, with silver prices
at $1.29 meant holders could redeem their certificates for silver. This just
wouldn't do. So in 1964, the government halted redemption of Silver Certificates
for Silver Dollar coins. By June 1968 all redemption in silver ceased. Obviously
with holders demanding silver prices would continue to rise given less supply.
Then being old enough to be in the business in 1979 I watched my Quotron
terminal as the Hunt Bros. drove prices up to a high of $48.70 before their attempt
to corner the market came apart. The unwinding of these positions as margin
calls hit holders was quite a chaotic spectacle for someone just five years in the
business. Well, enough history. Today, with silver in backwardation (current front
month prices greater than back month contracts) there's a supply problem which
is bullish. Some are suggesting that Asians are buying silver and gold ETFs to
demand delivery. That would be something! Adding fuel to precious metals rallies
are signs of higher inflation in Asia and today with London reporting 4% annual
rate. Again rumors are swirling there is some major "watershed" event for the
"yen". What it is, I don't know and the purveyor of this news didn't provide details
either. Sometimes rumors are "early truths" or just shenanigans. Meanwhile, back
at Wall & Broad, stocks saw selling even as the Fed tossed in more POMO for Da
Boyz. The sour selling mood was triggered by a worse than expected Retail Sales
report that bulls were quick to blame on weather. Is Chucky the Consumer
running out of credit? Exxon is finding less oil at least in places where it's
permitted to look. This and Retail Sales drove prices lower. Volume was again
quite light while breadth per the WSJ was negative.’
"We Are Apple" and Five Other Horrifying Corporate Anthems That Will Stun You
Into Submission Minyanville ‘For all the talk these days about being a "team
player," it wouldn't be a wholly terrible idea to take a look at some corporate
anthems that would make even the most cynical employee's chest swell with
pride. Or is that embarrassment?
Up first, a corporate anthem commissioned by Apple in 1984 to get employees
amped up for the year's new offerings:
http://www.youtube.com/watch?v=nbJy0O4UFSM&feature=player_embedded
Next up, The Gazprom Song:
http://www.youtube.com/watch?v=xGbI87tyr_4&feature=player_embedded
But wait, it only gets better from here. Ladies and gents, I present to you...the
corporate song of Coal India Limited!
http://www.youtube.com/watch?v=-ZG1MKFyh9E&feature=player_embedded
When you're done wiping the tears from your emotional eyes, take a look at what
keeps Fujitsu employees motivated to get up every morning and...do whatever
the hell it is Fujitsu actually does:
http://www.youtube.com/watch?v=FRTf3UXCpiE&feature=player_embedded
Not to be outdone, IBM created this anthemic gem for its, uh...champions:
http://www.youtube.com/watch?v=gZ85Abu_TBs&feature=player_embedded
Not to be outdone, Ernst & Young entered the fray with this:
http://www.youtube.com/watch?v=MaIq9o1H1yo&feature=player_embedded
Below is where the AT&T, Unisys, and Hewlett-Packard corporate anthems were
supposed to go, but a sense of general unease and off-the-charts depression set
in and, for the sake of us all, let's just leave well enough alone.’
Grant ‘February 15, a.m. (from USAGOLD.com) --

Rising rates and reserve requirements in China may have tamped inflation
somewhat in January. CPI came in at 4.9% y/y, but the market is always a little
suspicious of Chinese data that misses expectations, especially when the news
may have been leaked in advance. CPI was pretty much spot-on yesterday's
whisper. PPI surged to a 6.6% y/y pace in January, up from 5.9% in Dec.Inflation
in the UK is now officially running twice as hot as the Bank of England's target of
2.0%. Jan CPI accelerated to 4.0% y/y and BoE Governor Mervyn King sees
potential for inflation to rise even further in the short-term. Here in America,
import prices rose a higher than expected 1.5% in Jan, while export prices were
up 1.2%. Inflation, which had largely been a problem in the emerging world,
seems to be coming home to roost in the industrial world. Now the question
becomes, will there be a policy response? Of course, this is exactly what Ben
Bernanke's Fed wants. He recently suggested inflation around 2% would be
appropriate, but perhaps Mr. King can now offer some insights on how hard it is
to maintain target once that inflation train starts rolling.[chart]John Williams of
Shadow Government Statistics tracks US CPI in the same way that the BLS did it
historically. The chart above compares CPI calculated using 1990 methodology,
versus the current methodology. It suggests that inflation is already more than
double Bernanke's soft 2% target. If you use 1980 methodology, as the chart
below does, the inflation picture is substantially worse. The implication is, when
the BLS doesn't like the picture that's being painted, they change the
methodology. As Mr. Williams says, if your real life experience suggests inflation
is not benign, there's probably a reason for that. Visit www.shadowstats.com for
a dose of perspective.[chart]News late yesterday that the EU finance ministers
had reached an agreement on a permanent bailout fund initially lifted the euro.
However, subsequent speculation that it wasn't really a done-deal after all,
combined with Q4 GDP misses in core-Europe, took the little breeze out of the
single currency's sail. German, French and Italian GDP expanded just 0.4%, 0.3%
and 0.1% respectively in Q4, all below market expectations. Greece slipped
deeper into recession in Q4, with GDP falling an additional 1.4%. The Greek
economy may have contracted as much as 4.5% last year, which would be the
biggest drop in 50-years. Greece was the first EU country to get a bailout. At this
rate, if there is indeed a new permanent bailout facility, Greece may be waiting
when the door opens.This morning's US January retail sales was a miss at just
+0.3%, on expectations ranging from +0.6 to +0.9. As is the case with every bad
data point these days, weather was to blame. The market also continues to digest
President Obama's $3.7 trillion FY2012 budget proposal. Perhaps not
surprisingly, the President's plan to cut $1.1 trillion in spending over the next
decade has drawn the ire from both sides of the political spectrum. Mr. Obama
said this morning that he prefers to use a "a scalpel...not a machete," presumably
to avoid too much pain (or political backlash). An op-ed in today's Washington
Post calls it like it is: President Obama's budget kicks the hard choices further
down the road.When we reach the end of the road and can kick the can no
further, a machete may prove to be a tool too small for the job. Faced with the
prospect of monumental pain that would be a direct result of decades of can
kicking, the government may still opt for an alternative to fiscal responsibility. A
devaluation of the dollar would be an increasingly attractive option, as the pain
would be more fully shared than cuts to government services that would largely
effect the poor and middle class, and tax hikes that would target the wealthy.
Currency devaluation can also be accomplished without an act of Congress, so
our politicians would have the political cover they need. Peter Grant is
USAGOLD's resident economist and a well-known analyst globally in the forex
and precious metals markets.’
Deception at the Fed Dr. Ron Paul | The Federal Reserve has been given a dual
mandate: keeping prices stable and maximizing employment. This policy relies in
part on numerical chicanery.
Barack Obama’s Budget For 2012: A Complete And Total Joke The Economic
Collapse | Don’t question the wacky economic growth assumptions.
Greece reassures IMF on privatization UPI | IMF and the EU recently criticized
Greece for its slow efforts to turn services over to private concerns.
Deutsche Boerse, NYSE Agree to Historic Merger Deutsche Boerse and NYSE
Euronext announced the creation of the world’s largest exchange operator
on Tuesday, dodging political issues that could threaten completion of a
deal.
UK Inflation Surges to 4%, Highest Since Nov. 2008 British consumer price
inflation surged to double the Bank of England’s target in January, official
data showed on Tuesday, raising pressure on the central bank to look
seriously at increasing interest rates.
Barack Obama’s Budget For 2012: A Complete And Total Joke Is Barack Obama
trying to play a joke on all of us? The budget that the Obama administration
has submitted for fiscal 2012 is so out of touch with reality that it may as
well be a budget for “Narnia”, “Fantasy Island”, “Atlantis” or some other
mythical land.
South Carolina Mulls New Currency To Protect Against Fed Collapse Continuing
a pattern of attempts to assert South Carolina’s independence from the
federal government, State Sen. Lee Bright, R-Roebuck, has introduced
legislation that backs the creation of a new state currency that could protect
the financial stability of the Palmetto State in the event of a breakdown of the
Federal Reserve System.
National / World

Mexican Troops Conduct Vehicle Search On U.S. Soil Paul Joseph Watson | Yet
another military incursion by a foreign power as Homeland Security is more
concerned about training Americans to spy on each other
Russia says foreign power may have caused spy satellite loss The Russian space
agency suggested Monday that a foreign power may have been behind the
space accident that disabled one of the country’s most modern military
satellites earlier this month.


CONFERENCE...
China.” ]
Drudgereport: DEBT NOW EQUALS ENTIRE ECONOMY

Muslim Bros plan political party...
Present Two Faces...
Pakistan Islamists warn of protests if US prisoner freed...
SECSTATE JR: Sen Kerry arrives in Pakistan, expresses 'regret', 'sorrow'...
World Bank: Food prices at 'dangerous levels'...
payoffs..
Berlusconi indicted in prostitution probe...
Obama proposes $3.7 trillion budget (Washington Post) [ What the heck! It’s only
‘helicopter ben’ monopoly money anyway; that paper stuff (Globalists Push
SDRs as World Reserve Currency As investor Marc Faber noted last year,
warned. IMF calls for dollar alternative The International Monetary Fund
issued a report Thursday on a possible replacement for the dollar as the
world’s reserve currency. The IMF said Special Drawing Rights, or SDRs,
could help stabilize the global financial system. ). Speaking of Monopoly /
atlantic city, n.j., maryanne trump barry and sam alito, et als have done all
right for themselves as the corrupt judiciary usually does, one way or
another. Indeed, judicial retirement funds for these plushly accoutered
lifetime appointees is up 25.9% and the general operating fund up 6.6%
(source, http://www.washingtonpost.com/wp-srv/special/politics/federal-
budget-2012/index.html … the trumps are getting it up front and on the back
end, which is typical in a pervasivly corrupt system as defacto bankrupt
america … abolish the courts . Connecticut, California join probe of Ally
(Washington Post) [ I’d be much more impressed if they initiated a probe of
more readily discernible criminal offenses in violation of the RICO Act
(Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut,
and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt
federal judges as maryanne trump barry, sam alito, shiff, matz
(california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-
called system is pervasively corrupt and broken (AP) Abolish the
corrupt, costly, economically wasteful lifetime extravagantly appointed
federal courts - see RICO case
yofperjury.pdf
totally.]
Concerns over European defense cuts (Washington Post) [ At some point,

rationality must overcome irrationality; if only necessity being the mother of this
new-found invention (rationality). Interestingly, there was a blip on television
news from a NATO rep talking up the technological / military superiority of NATO
relative to Russia (without whose technological prowess that space station and
crew would literally be lost in space). So take that, literally … and make the cuts
(rational). ] European policymakers say the cuts are necessary given their
financial straits, and that training, not sheer numbers, is what matters in a post-
Cold War world.
Budget makes deep cuts, cautious trades (Washington Post) [ I still have great
difficulty wrapping my mind around the cut in the (relatively minuscule)
heating oil program for the poor (after all, that’s potentially lethal to such
disenfranchised groups) … Drudgereport:White House to Slash Heating
Program for Poor…but still no pros of massive frauds on wall street which
fines and disgorgement of would yield huge amounts to cover spending... [
@atask or email him at altask@yahoo.com’ Timid Tuesday: Is it Safe?
FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
wreak if it refrains from raising the government's debt limit this spring. ] The
$3.7 trillion plan proposes to trim or terminate more than 200 federal
programs to make room for increases aimed at boosting the economy.
Robinson: Do conservatives love freedom? (Washington Post) [ Truth be told,

I’ve oft referred to myself as conservative. I also embrace freedom; which, of
course, is the antithesis of ‘such conservatives’ as ie., mobsters as trump et
als, Maryanne trump barry, sam alito, mafia, neo-cons cheney, dumbya
bush, rumsfeld, mental cases as john bolton, trump, dummy palin, limbaugh,
hannity, etc., who in their near facist way always want control; ie., your
thoughts, actions, inclinations, etc.. The left, totalitarian communism,
wobamanoids in the dhs, etc., are little different. I personally am constrained
to disassociate myself with the likes of the foregoing and as discussed infra:


CONFERENCE...
China.” ]
Symbolic reductions (Washington Post) Gerson: Why would the GOP cut funding
for bed nets in Africa? [ Well, given the perilous state of a nation-state in peril;
viz., defacto bankrupt america and the imperiled citizenry therein, one might ask
how such was funded in the first instance… Drudgereport: DEBT NOW EQUALS
ENTIRE ECONOMY
payoffs..
Could the Dow Hit 4,500? [ Short answer: YES! Prechter et als say even far lower
(which I would agree with in real terms, but not in debased dollar terms.) ]
Norfolk ‘October 20, 1999: I am at a breakfast briefing run by a British investment
house. Scarfing my bacon bap and croissant, washed down with the treacly and
malodorous coffee that only hotels can provide, I feel quite the patronised lower-
order businessman as I listen to the market overview.
Suddenly, I become uneasy. It's not the stomach registering the high fat food -
nothing like it for dealing with last night's alcohol, I find - it's the strange
disconnection between what the fund reps are telling me and what they want me
to do. They are feeding me dead pig so I will recommend equity investment to my
clients - but they're telling me (with relaxed smiles) "the American stock market
could be as much as 50% too high, and a correction is overdue", as I reported in a
letter to a client the next day.
We sure get bought cheaply, don't we?
It was around the same time that I attended a monthly broker network meeting in
Worcester, where another fund house recruiting sergeant told us IFA doughboys
how (in 1999) the tech boom was only in its first phase, and a sort of super-boom
was coming next.
That's when I decided (1) to start reminding my people that most of their pensions
and investments had an option to switch to cash within the wrapper - with the
caveat that I had no crystal ball, and (2) to change my own business and earnings
model to survival mode.
The next year, when one of our colleagues at the monthly get-together revealed
that the best asset class for the last 12 months had been cash and asked hands
up who'd seen that coming, I kept my hand down. I didn't want to disappear in a
hail of slightly stale bread rolls.
Today I read in "The Spectator" magazine an article by Merryn Somerset Webb,

editor-in-chief of "Moneyweek". She points out the inflationary boom in the East
and suggests a contrarian play - invest West (counting Japan as part of the West)
- but warns of overvaluation here, too:
"I refer you to two valuation measures that seek to tell

us where markets will go over ten to 20 years, the
cyclically adjusted price-earnings ratio and the Q ratio
of market value to underlying asset value. According to
their biggest fan, the strategist Andrew Smithers, they
now tell us that the US market is around 70 per cent
overvalued."
I fear that Smithers is an optimist; or rather, when he says a market is overvalued,

I assume he's using a theoretical fair value as his point of reference, and ignoring
the overshoot effect. 70% overvaluation implies a 40% (ish) drop; but for a long
time I've been watching for a 70% drop.
Back in October 2008, J. Kyle Bass of Hayman Advisors (.pdf here) was saying
"We think we will see 10-12% unemployment, a 4-5% decline in GDP, and the
equity markets could drop at least 70% from peak to trough." (I love that
reassuringly conservative "at least", don't you? As Wavy Gravy said at
Woodstock, "There is always a little bit of heaven in a disaster area." Maybe we
will all be feeding each other again, man.)
So I had a go at drawing a picture... in December 2008, I took the Dow at close at

the start of each calendar month from late October 1928 to 80 years later, and
divided it by inflation (CPI-U) as announced for the end of the preceding month (I
figured that even official figures for consumer prices aren't as manipulated as the
gold market). Here's what I got: [chart]
Re-done today to the end of January, here's the same story updated:
[chart]
Read this way, the real peak was at the end of 1999, then the market halved until
monetary inflation from 2003 blew up real estate, then it halved again until the
wonders of QE, and sometime soon the Fed's lungs are going to give out once
more.
Allowing for inflation, a drop of 70% from December 1999 would mean the Dow's
low should be just under 4,500 today. That red dot really doesn't look so
freakishly out of whack in context - not half so much as the Twin Peaks before it.
Of course, inflation is the joker in the pack. I'm talking about a deflation of the
Dow in real terms; one way that could happen is a phoney boom discounted by
high inflation - like 1973 - 1982, for instance:
[chart]
It took until April 1992 for the real Dow to get back to what it had been worth in
December 1972; but at least it got back. The dollar lost 70% of its consumer
purchasing power over the same period.
Like I said in my last SA article (This Liquidity Will Soak Us All ), it may be that
we're going to wet, no matter what tree we stand under.
Meantime, I'm buying my own sandwiches.’
Beware The Lagging Dow Trick Adler ‘When the Dow lags the broader market like
it did today, it’s usually a sign the market managers want to run it up without the
public on board, so beware of that if it continues for a few days. The bad news
out of Fedex (FDX) is causing some after hours unpleasantness, but you know
how that game goes. Shakeout at night, market makers' delight. Uncle Ben is
scheduled to deposit $5-7 billion into Primary Dealer trading accounts tomorrow,
but a big Treasury settlement will suck a massive amount of cash out of their
wallets. The Treasury settles a whopping $62 billion in notes and bonds on
Wedneday. That's a lot more than the Fed cash they got in the last week which
will be only $12.5 billion to $23.5 billion including what they got last week. You
might here a giant sucking sound for a day. I saw little change in the technicals
today. This narrowly based uptrend has the potential to go on and on with minor
shakes along the way. The 10-12 month cycle projection looks to be honing in on
1390 in my cycle work. That will probably shift some with the idealized top
window open from now through April. The Wells Fargo-NAHB homebuilders index
will be out at 10 AM Tuesday. Builder traffic has been non-existent and purchase
mortgage applications have been hovering just above 20 year lows, so I don't see
any improvement likely in sales activity. The numbers could easily get worse if
they weren't already so close to the zero bound. The market shouldn't be
surprised by that, but given the big Treasury settlement sucking cash out of
dealer and other accounts, that could be a catalyst for a selloff. All of this bad
news will be a setup for dealers to take down some inventory for another run as
the Fed stuffs their trading accounts with cash in the days ahead. Bears should
not be fooled by this. Don't get sucked in. Dippers, hold your fire until the selling
is washed out.’
Stock Market Resiliency Being Put to the Test Editor's Note: This article was
written by Richard Suttmeier, chief market strategist at ValuEngine.com ‘The test
of resiliency for stocks comes from the dynamics for the US capital markets, both
fundamentally and technically. The yield on the 10-year US Treasury note has
held my annual value level at 3.791, and these high yields are a drag on equity
valuations. Comex gold has been volatile but seems to find a home at my annual
pivot at $1356.5. Nymex crude oil trades on both sides of my semiannual pivot at
$87.52. In this environment US stocks have become overvalued fundamentally
and overbought technically. Stocks have been trading under a ValuEngine
Valuation Warning for the past three days as the major averages push the
envelope of new multi-year highs.I still see the warning flags flying from Egypt,
Europe, and the emerging markets which are laggards as we approach mid-
February. While the Dow Industrial Average is up 5.6% year to date the iShares
MSCI Emerging Markets Index Fund (EEM) is down 5.4%, and the iShares FTSE
China 25 Index Fund (FXI) is down 4.0% and is below both its 50-day simple
moving average at $43.28 and its 200-day simple moving average at $42.13. These
types of negative divergences suggest to me that US stocks are vulnerable once
their Fed-induced bubbles pop.Thursday’s equity closes were above all of this
week’s pivots at 12,142 Dow Industrial Average, 1316.2 S&P 500, 2770 Nasdaq,
5077 Dow Transports, and 800.13 Russell 2000. The S&P 500 tested and held its
weekly pivot at 1316.2. The Dow Transport Average outperformed on Thursday
and tested its annual pivot at 5179.
• The Dow Industrial Average (12,229) -- My monthly value level is 11,759
with daily and annual risky levels at 12,404 and 13,890.
• The S&P 500 (1321.9) -- My quarterly value level is 1262.5 with today’s risky
level at 1344.5.
• The NASDAQ (2790) -- My monthly value level is 2611 with daily and
quarterly risky levels at 2850 and 2853.
• Dow Transports (5168) -- My monthly value level is 4962 with daily and
annual pivots at 5162 and 5179. Transports lag its January 18 high at
5256.80.
• The Russell 2000 (812.70) -- My annual and quarterly value levels are 784.16
and 765.50 with a daily risky level at 829.97.
We are trading under a ValuEngine Valuation Warning -- 16 of 16 sectors

overvalued with only 33.15% of all stocks undervalued on Wednesday, below the
35% threshold by this measure. This also means that 66.86% of all stocks are
overvalued. Why does Wall Street think stocks are cheap?
The US Treasury 10-Year Yield -- (3.702) My annual value level is 3.791 with a
Comex Gold -- ($1361.7) My quarterly and annual pivots are $1331.3 and $1356.5
with daily, monthly, quarterly, and semiannual risky levels are $1375.2, $1412.4,
$1441.7, and $1452.6.
Nymex Crude Oil – ($87.14) My semiannual pivot at $87.52 has become a magnet
with a monthly pivot at $91.83.
The Euro -- (1.3593) My quarterly value level is 1.3227 with my monthly risky level
at 1.4225.
Foreclosure Lull as Repossessions Rise Again
Foreclosure paperwork issues have slowed the home foreclosure process over
the past two months, but as this dilemma works its way to a solution,
foreclosures will rise again, as will bank auctions of OREO (Other Real Estate
Owned). As a result, more homeowners who are missing mortgage payments are
staying in their homes longer, adding to the backlog of bad loans. Meanwhile,
banks are picking up the pace in repossessions taking back 78,133 properties in
January according to RealtyTrac. This is up 12% from December. Banks took
back more than a million homes in 2010, and about five million borrowers are at
least two months behind on mortgage payments.The housing problems remain
the same: high unemployment, a weak housing market, falling home prices, and
tighter lending standards.’
Bernanke Helps Fuel an Increasingly Expensive Market Roche ‘As the market
continues to grind higher each and every day, it’s useful to gain some
perspective on just how much Bernanke is impacting valuations and generating
disequilibrium in the market. In order to do so we’ll review a number of long-term
valuation indicators.
The first is Warren Buffett’s self proclaimed favorite valuation tool (see here for
more). He uses the total market cap of the US stock market compared to GNP. He
has generally maintained that levels below 80% are bullish. The latest reading of
106% is well below the levels seen at the last two market peaks, but well above
the historical average levels. You will notice that the permanently high valuations
coincide with the Greenspan Put which has now morphed into the Bernanke Put.
John Hussman’s latest piece succinctly describes the current market

environment in which Ben Bernanke continues to encourage speculation and
malinvestment. As we all know by now it is Bernanke’s goal to keep asset prices
“higher than they otherwise would be” in an attempt to generate a self sustaining
economic recovery through asset prices. This is the insane notion that nominal
wealth will lead to real wealth.
In fact, Ben Bernanke has this quite backwards. Fundamentals drive real wealth –
not nominal price increases. But two bubbles in one decade doesn’t teach this
man a lesson. Hussman elaborates:
Last week, the S&P 500 Index ascended to a Shiller P/E in excess of
24 (this “cyclically-adjusted P/E” or CAPE represents the ratio of the
S&P 500 to 10-year average earnings, adjusted for inflation). Prior to
the mid-1990′s market bubble, a multiple in excess of 24 for the
CAPE was briefly seen only once, between August and early-October
1929. Of course, we observe richer multiples at the heights of the
late-1990′s bubble, when investors got ahead of themselves in
response to the introduction of transformative technologies such as
the internet. After a market slide of more than 50%, investors again
pushed the Shiller multiple beyond 24 during the housing bubble and
cash-out financing free-for-all that ended in the recent mortgage
collapse.
And here we are again. This is not to say that we can rule out yet
higher valuations, but with no transformative technologies driving
the economy, little expansion in capital investment, and ongoing
retrenchment in consumer balance sheets, I can’t help but think that
the “virtuous cycle” rhetoric of Ben Bernanke is an awfully thin gruel
by comparison. We should not deserve to be called “investors” if we
fail to recognize that valuations are richer today than at any point in
history, save for the few months before the 1929 crash, and a bubble
period that has been rewarded by zero total return for the S&P 500
since 2000. Indeed, the stock market has lagged the return on low-
yielding Treasury bills since August 1998. I am not sure that even
members of my own profession have learned anything from this.
[chart]
Using his expected returns methodology Mr. Hussman is looking for annual
returns of just 3.15% in the coming decade:
[chart]
Dshort brings us the Q Ratio which has now hit “nosebleed” territory again. This
is consistent with the other metrics which all showed relatively stable ranges
until the Fed began its unusual policy of propping up markets following the 87
crash. The latest reading of 1.17 is well below the Nasdaq bubble peak, but is
higher than any other historical peak. “Nosebleed” could be an understatement.
[chart]
As I mentioned in December, we have to ask ourselves if any of this matters as
long as the Fed is directly involved in promoting speculation. It’s now clear that
the Bernanke Put is well ingrained in every investor’s head. Never has the Federal
Reserve been so explicit about propping up asset prices and it has created a
speculative frenzy that has every investor trying to front-run the Fed.
The problem for the Fed will be letting their foot off the gas. They have created a
beast that they likely no longer control. When and if the Fed ever ends QE it is
likely that markets will begin to revert to the mean. This will likely force the Fed’s
hand to stabilize markets. So what we’ve created with this explicit backstop is a
positive feedback loop. Can the Fed ever get out of the market now? And if they
don’t it’s likely that markets will spiral higher until they cannot control the
inevitable collapse.
The foolishness of current Fed policy cannot be downplayed. Let’s hope for the
sake of US citizens that they are as quick to take credit for the inevitable market
decline as they have been about taking credit for the rally. For once they admit to
having contributed to malinvestment and misallocation of resources we can likely
begin mounting a case that closes this horrible chapter in American history
where the Central Bank attempted to turn our economy into a financialized ponzi
scheme.’
Hosni Mubarak resigns: Switzerland to freeze assets of ousted ruler Switzerland
has announced it was freezing assets in the country owned by newly
resigned President Hosni Mubarak of Egypt.
The Faulty Economic Model Behind America’s Support for Dictators (Instead of
Democracies) It is obvious that America has long supported dictators,
instead of democracies, in developing countries.
Fannie, Freddie bailout: $153 billion … and counting When the dust settles, the
federal bailout of Fannie Mae and Freddie Mac will be the most expensive
government rescue of the financial crisis — it already stands at $153 billion
and counting.
The American Dream: It’s the Bank versus the Republic You Tube | THE
AMERICAN DREAM takesa look at why leaders throughout our history have
warned us and fought against the current type of financial system we have in
America today.
Debt now equals total U.S. economy Washington Times | Obama projects that the
gross federal debt will top $15 trillion this year, officially equalling the size of the
entire U.S. economy.
Obama Releases $3.73 Trillion Budget WSJ | President Barack Obama released a
$3.73 trillion budget for fiscal-year 2012 Monday.
France wants new global finance system France will help the transition to a
global financial system based on ‘several international currencies’, the
French Economy Minister said today.
Worst Freeze In 60 Years Wipes Out Entire Crops Across The Southwestern U.S.
And Northern Mexico Get ready to pay a lot more for produce at the
supermarket. In early February the worst freeze in 60 yearswiped out entire
crops all across the southwestern U.S. and northern Mexico.
Roubini’s Next Crisis Is Scary Food for Thought Forget Egypt for a moment. Skip
the water crisis in China. Look past angst on the streets of Bangladesh. If
you want to see how extreme the effects of surging food prices are
becoming, look to wealthy Japan.
UN: Escalating food prices leading to civil unrest In January, world food prices hit
a record high. The Associated Press reports that escalating food prices is
related to civil unrest.
Engineered Economic Collapse Approaching; the Inevitable Ron Paul constantly

reminds us that money is created out of thin air, which is to say it’s an
illusion. Therefore, the debt must be an illusion too, correct? Yet, fiscal
conservatives still use the debt as a tool of fear to make budget cuts that
they selectively deem expendable.
China overtakes Japan as world’s second-largest economy China has

leapfrogged Japan to become the world’s second-largest economy, a title
Japan has held since 1968.
Obama's budget would add $13 trillion to national debt President Barack Obama
visited Susan Yoder's science class Monday at Parkville Middle School and
Center of Technology in Parkville, Md. Video: Obama Advisor: President
Made Tough Budget Cuts The Associated Press Rejected Tax Increases Make
a Return in Obama Administration Budget Plan Bloomberg
National / World
Obama Pencils In $37 Billion Budget Increase For DHS, Naked Body Scanners
Steve Watson | No austerity measures to deal with for the bloated security
theatre overlords
House OKs short-term extension of Patriot Act Los Angeles Times The House
passes an extension of Patriot Act surveillance measures, temporarily
bypassing 'tea party' lawmakers and others who say the provisions threaten
privacy. Rep. Gibson votes against extending Patriot Act provisions The
Saratogian 44: Patriot Act extension passes House, one week after
unexpected defeat Washington Post
France joins China in effort for end of the dollar RTE | France will help the
transition to a global financial system based on ‘several international
currencies.’
Neocons Target Ron Paul After CPAC Poll Win Kurt Nimmo | Paul has stood tall
against the neocon version of U.S. foreign policy.
Congressman Ron Paul booted from conservative group for anti-war views The
conservative group Young Americans for Freedom (YAF) announced
Saturday that Rep. Ron Paul (R-TX) would be expelled from the group’s
National Advisory Board because of his “delusional and disturbing alliance
with the fringe Anti-War movement.”
Terrorist Who Trained London Bombers Was Working For US Government Paul
Joseph Watson | Listen up Glenn Beck: “Radical Islam” is a creature of the
US military-industrial complex
Was Judge John Roll the actual target of the Giffords shooting? Ethan A. Huff |
Judge Roll was considered by some to be one of the most constitutionally-
centered judges in history.
Ron Paul to U.S. Government: Stop Propping Up Dictators CNN | Ron Paul speaks
with Wolf Blitzer on Egypt and the GOP nomination during the Conservative
Political Action Conference (CPAC).
Conning Slaves Becky Akers | Boobus Americanus happily hugs his chains so
long as his masters feign that he’s in charge.
21 Signs That The Once Great U.S. Economy Is Being Gutted The Economic
Collapse | The United States is rapidly being turned into a “post-industrial”
wasteland.
Engineered Economic Collapse Approaching Eric Blair | Fiscal conservatives still

use the debt as a tool of fear to make budget cuts.
Alex Jones: Egypt a campaign to destabilize region The Alex Jones Channel |
Contrary to the ideas that the uprising in Egypt could signal true freedom,
there is every reason believe that it is part of a larger destabilization effort in
the region, sponsored by the U.S. military and multi-national intelligence
rings.
Report: Mubarak in coma, no decision on move to hospital Egyptian newspaper
al-Masry al-Youm reported that deposed Egyptian president Hosni Mubarak
has been in a coma since Saturday, quoting “well-informed sources.”
Egypt’s new military regime to effectively outlaw strikes CAIRO – Egypt’s new
military rulers will issue a warning on Monday against anyone who creates
“chaos and disorder,” an army source said.
Gaddafi tells Palestinians: revolt against Israel Palestinian refugees should

capitalise on the wave of popular revolts in the Middle East by massing
peacefully on the borders of Israel until it gives in to their demands, Libyan
leader Muammar Gaddafi said on Sunday.
Quiet military coup was behind Mubarak’s resignation Haaretz | After Mubarak’s
Thursday-night address Egyptian military leaders, anticipating the anger of the
protesters, told Mubarak that if he did not step down voluntarily the army would
force him out.
Egyptian military dissolves parliament, suspends Constitution BBC | Egypt’s new

military authorities say they are dissolving parliament and suspending the
constitution.
David Icke: There’s Been NO REVOLUTION So Far David Icke | I have been
watching the understandable euphoria in Egypt live on Al Jazeera television, but
please, there must be a sense of perspective here – and urgently.
Algeria shuts down internet and Facebook as protest mounts Internet providers
were shut down and Facebook accounts deleted across Algeria on Saturday
as thousands of pro-democracy demonstrators were arrested in violent
street demonstrations.
Algeria Internet Not Shut Down, According To Renesys Analysis Internet

intelligence authority Renesys, whichconfirmed the Egypt outage weeks
ago, says in a new blog post that it has no evidence that Algeria’s Internet
has been shut down.
Dear Glenn Beck, Egypt Destabilization-Op Hatched by Globalists, Not
Communists Alex Jones breaks down the real factors behind Egypt’s
uprising in a special video report where he rebuffs the theories of Glenn
Beck, who tries to link the Muslim Brotherhood to radical socialism in the
United States.
Wisconsin Gov. Walker Threatens To Deploy National Guard As ‘Intimidation

Force’ Against Workers’ Unions Think Progress | When asked by a reporter what
will happen if workers resist, Gov. Walker replied that he would call out the
National Guard.
Rep. Jones pushes for end to Afghanistan War ENC Today | They are faces, not
numbers, for Rep. Walter B. Jones, R-NC.
Anonymous hack reveals HBGary plan to destroy WikiLeaks V3 | Data released as

part of a hacking attack by the Anonymous group has shown what appears to be
a corporate plan to destroy WikiLeaks.
Tea Party declares war on military spending Guardian | Dispute between the
Republican party establishment and the Tea Party movement boiled over into the
public arena during this week’s CPAC conference.
Stocks gain as Mubarak resigns (Washington Post) [ Come on! Don’t be
ridiculous! Stocks gain regardless of the ‘event resignation’ as pointed out
by Dave, immediately infra. The ‘miracle’ of computer-programmed high-
frequency trading fraud with fed / congressional complicity, which will
inevitably end quite badly for the vast majority at whose expense the gains
for the relative few are made. One-Way Market Action: Dave's Daily ‘"To the
moon"(Alice) might be a better description of this nonstop bullish action. All
week markets were worrying about Egypt. When things were bad there,
markets rallied. When things seemed better, markets rallied. When Cisco
and Credit Suisse posted lousy reports, markets rallied. When China raised
interest rates, markets rallied. Every dip has been bought and every dip has
been buying. All this was taking place while many emerging markets were
breaking down creating some divergence from previously high inter-market
correlations. Things are going so well most reliable technical indicators are
getting steamrolled by what those few trading must believe is a rosy future.
Market rallies have been steady but not spectacularly higher with daily .50%
type moves. But, those add up. Does all this frustrate us? Partially, since
active portfolios exited a couple of weeks ago but Lazy Portfolios are doing
better. Making sense of Mr. Market has never been an easy proposition. I'm
back from attending the annual Inside ETFs conference in Florida where I
moderated a panel on technical analysis. Most panelists were bullish but
couldn't pin-point why other than "price" analysis. Friday Mubarak gave up
probably needing the extra time to round-up the loot before he left town for a
Club Med in Dubai or some such place. Markets opened lower on Mubarak's
initial determination but then rallied some on his change of heart Friday…’ ]
The relief over the embattled leader's departure extends well beyond Tahrir
Square.
Ahmadinejad speaks on Egypt (Washington Post) [ ‘Ahmadinejad says Egypt,

Tunisia were inspired by Iran's anti-Western protests’ … Yeah … this is really
the truth … buttressed by factual reality … I mean, though suffering the
economic pain of american / israeli / nato destructive mis-adventures in the
mid-east, the american public is relatively insulated from the realities of same,
from war crimes to destruction of innocent lives and property, by way of
propaganda and inured by their own zombification. The realities of the west’s
inflicted horrors have finally come home to roost. There are and will be
consequences! This world is not a vacuum. ]
GOP's plan for spending cuts sets Capitol Hill showdown (Washington Post)
[ Showdown? How ‘bout hoedown! I mean, give me a break … who’s kidding
whom … but the ‘show’ part fits! Timid Tuesday: Is it Safe? Davis ‘… This is
how we pay off our current debts and I think bondholders are simply happy to get
Conservative pundits get on TV and talk about how we need to cut $100Bn worth
of discretionary spending to "fix" this (while continuing to spend $1Tn on the
military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and
even a Republican said you can’t fool all of the people all of the time. THIS
HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘
Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"
11-25-10 ‘The U.S. economy "is a complete disaster," Howard Davidowitz
declared here in July, the most recent in a string of dire predictions … "Here are
the numbers...we're broke," Davidowitz declares, noting the U.S. government
goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual
deficits for the next decade. "In other words, we're bankrupt."As with the
economy, Davidowitz is unwaveringly consistent in his views on President
Obama, calling him "deranged, dysfunctional and discredited."Results of the
midterm election show "the people of this country think we are in a catastrophe,"
he says. "I'm with them."] Some Republicans express concerns about the steep
cuts, but some cheer the trims as an important political objective -- meeting a
campaign pledge they made last fall to grass-roots activists.
Milbank: Donald trumps CPAC | Gibbs gone (Washington Post) [ That trump is a
loser, dressed up and propped up by and to shill for a declining, fallen nation in
the most corrupt regions of the country (every fallen nation has such), there is no
question …"Over the years I've participated in many battles and have really
almost come out very, very victorious every single time," the Donald said. (Except
for the bankruptc[ies], that is. [ trump’s never won a battle that wasn’t fixed in
advance – jersey general ] ) "I've beaten many people and companies, and I've
won many wars," he added. (Though he didn't serve in the military.) "I have fairly
[according to mobster rules; ie., bribery, money laundering, etc.] but intelligently [
as any other mob boss … trump is total b*** s***, a fraud, and lightweight … and,
despite the façade, quite insecure … trump’s a total mental case … He truly is the
‘poster-boy’ of american decline and part of the problem, not the solution! NEWS
FLASH: Direct from Lost Angeles Learning Annex – Presenting mobster t_rump
of new yoke, new joyzey, and now caleefornia mob fame with his continuing
message for the past several years: buy real estate (and watch the values go
down…..riiiiight!).


both a scorecard and acknowledgment of my abilities [ to fool most of the
people, all of the time. ] ."
Egypt's popular uprising triumphs In 18 days, a revolution topples 30-year

regime Hosni Mubarak becomes the second Arab leader in a month to succumb
to his people's potent thirst for freedom. (Washington Post) [ That 82 year old, 30
year Egyptian potentate, Pharhosni Mubarak was done was never in question.
What comes next is another matter entirely:
Drudgereport: IMF CALLS FOR ALTERNATIVE TO $$ AS WORLD'S RESERVE

MILITARY TAKES COMMAND
'Egypt is Free,' crowds chant...
WIRE: Military coup was behind Mubarak's exit...
Military calls for normal business activity to resume...
DAY 18: Mubarak and family flee Cairo for Sharm el-Sheikh...
Swiss freeze assets...
Obama learns of resignation watching TV...
Crisis Puts White House in Disarray...
Director of National Intelligence: Muslim Brotherhood 'Largely Secular,' 'Has
Eschewed Violence'...
'Weakness' in USA...
Ahmadinejad: Egyptian protests herald new Mideast...
AL-JAZEERA LIVE FEED...
FRANCE 24 LIVE FEED...
Mubarak Hangs Tough...
VP Urges Protestors to Ignore Media, and Go Home...
CIA Panetta Confused: Said Strong likelihood Mubarak would 'step down
tonight'...
March to palace being organized...
REUTERS LIVE...
ElBaradei warns Egypt will 'explode'....
Egypt's govt on the brink..
FLASH CRASH: APPLE stock loses $10 billion in four minutes...
Jobs' Health Rumor?
Global Stock Exchanges Headed for Major Consolidation...
Kyl becomes fifth senator to step aside...
Fed Governor Resigns; Bernanke Adviser Questioned Stimulus...
NBC: Intelligence officials 'scrambling to try to determine exactly what this all
means'...
TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...
etc.).
[ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofpe
rjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ].
america’s just a fraudulent and failed defacto bankrupt nation. ] “I would
China.” ]
Mubarak Steps Down as President, Army Takes Over ABC News | Egypt’s
embattled President Hosni Mubarak abruptly stepped down as president, ending
his 30-year America’s Strategic Repression of the ‘Arab Awakening’ A popular
backlash against American-supported dictatorships and repressive regimes has
been anticipated for a number of years, with arch-hawk geopolitical strategist
Zbigniew Brzezinski articulating a broad conception of a ‘Global Political
Awakening’ taking place, in which the masses of the world (predominantly the
educated, exploited and impoverished youth of the ‘Third World’) have become
acutely aware of their subjugation, inequality, exploitation and oppression.
One-Way Market Action: Dave's Daily ‘"To the moon"(Alice) might be a better
description of this nonstop bullish action. All week markets were worrying about
Egypt. When things were bad there, markets rallied. When things seemed better,
markets rallied. When Cisco and Credit Suisse posted lousy reports, markets
rallied. When China raised interest rates, markets rallied. Every dip has been
bought and every dip has been buying. All this was taking place while many
emerging markets were breaking down creating some divergence from previously
high inter-market correlations. Things are going so well most reliable technical
indicators are getting steamrolled by what those few trading must believe is a
rosy future. Market rallies have been steady but not spectacularly higher with
daily .50% type moves. But, those add up. Does all this frustrate us? Partially,
since active portfolios exited a couple of weeks ago but Lazy Portfolios are doing
better. Making sense of Mr. Market has never been an easy proposition. I'm back
from attending the annual Inside ETFs conference in Florida where I moderated a
panel on technical analysis. Most panelists were bullish but couldn't pin-point
why other than "price" analysis. Friday Mubarak gave up probably needing the
extra time to round-up the loot before he left town for a Club Med in Dubai or
some such place. Markets opened lower on Mubarak's initial determination but
then rallied some on his change of heart Friday…’
Bad News and Higher Prices - Bullish Wall of Worry or Reason to Worry?
[Definitely reason to worry; this up, up and away, valuation be damned preceded the
last crash and the crash before that! ] Maierhofer, On Friday February 11, 2011 ‘If it's
too obvious, it's obviously wrong. More often than not, this proverbial Wall Street adage
has the last laugh. What's the prevailing consent on Wall Street? What's suspiciously
obvious today?
While Wall Street analysts are trying to one up each other's positive forecasts, the Fear
Index, VIX (Chicago Options: ^VIX) has fallen to a 3 year low. The last time the VIX was
at a similar level was in April 2010, just before a literally fear-inspiring 17% correction
and the May 'Flash Crash' (see chart below).The ETF Profit Strategy Newsletter didn't
subscribe to the prevailing optimism in April 2010 and warned that: 'The message
conveyed by the composite bullishness is unmistakably bearish. The pieces are in place
for a major decline.'Does that mean that the bottom will fall out again within a matter of
days? Not necessarily, but now is certainly not the time to be married to your holdings.
Tight sell stops are warranted because any minor correction could turn into a large one.
Why?

The devil's in the long-term trend. If we are in a new bull market, any dip would present
a buying opportunity. If we are in the mother of all bear market rallies, every rally is a
trap and represents a selling opportunity.How can one determine whether we are in a
new bull market, or a bear market rally? [chart] It's said that bull markets climb a
wall of worry. No doubt there was extreme pessimism surrounding the March 2009
lows. That's one of the reasons the ETF Profit Strategy Newsletter sent out a strong buy
signal on March 2, 2009.But pessimism at the bottom doesn't equal a wall of worry. In
fact, following the initial bout of disbelief, investors embraced the rally rather quickly. In
late 2009, sentiment readings became frothy, in January 2010 they rivaled 2007
extremes (stocks fell 9%), and in April 2010 they exceeded 2007 extremes (stocks fell
17%).About two thirds of the rally from the 2009 lows was accompanied by optimism.
This is no wall of worry.
(NYSEArca: IYR - News) prices - were sugar coated from the very beginning. The
unemployment problem was charmingly called 'jobless recovery' and falling real estate
prices were simply ignored.The Case-Shiller home price index is down four months in a
row, but nobody is bothered. A few days ago, MarketWatch ran an article: '10 reasons
to be bullish on housing.'Courtesy of the continuing real estate conundrum, the FDIC
closed 157 banks in 2010, and 14 thus far in 2011. According to a Wall Street Journal
article, the top 10 U.S. owned banks (NYSEArca: KBE - News) had $13.8 billion in
unrealized losses.Those are not reflected in earnings numbers as long as financial
institutions (NYSEArca: XLF - News) believe the investment will later rebound. Guess
what? Banks are pretty darn sure prices will reclaim their 2006 all-time highs.In addition
to the $13.8 billion in unrealized losses, the top 10 U.S. banks owned $360.7 billion in
illiquid, hard to value assets (called level 3 assets). While paper earnings appear solid, it
appears as if banks are hiding skeletons in their closets. But who cares, stocks
(NYSEArca: VTI - News) are up.
Anomaly Explained
Ben Bernanke has openly admitted that asset inflation, or the wealth effect from rising
stock prices, is the objective of QE2. Obviously, the money flow from the Federal
Reserve over banks into the stock market has been the driving force behind this
monster rally.Much of the Fed money has been funneled into commodities. Since QE2,
net speculative positions in wheat and copper have doubled, oil soared 115%,
soybeans 40% and corn 15%. Rising commodity prices (NYSEArca: DBC - News) are
putting the squeeze on lower income Americans and will eventually lower profit margins
for the materials sector (NYSEArca: XLB - News).It's quite likely that this ripple effect
will spill over into the retail (NYSEArca: XRT - News), technology (NYSEArca: XLK -
News), and consumer discretionary sector (NYSEArca: XLY - News). From there it's just
a matter of time until it hits the broader Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and
Nasdaq (Nasdaq: ÎXIC).Contrary to its objective, QE2 has also sent interest rates
soaring. Higher interest rates tend to encourage the money to flow from equities into
bonds. Higher interest rates put pressure on bond (NYSEArca: AGG - News) and stock
prices alike.
Early Detection
The trend is your friend, but the trend is a fair-weather friend and can turn at any given
time. The trend doesn't announce its intention to change direction. It switches back and
worth as it pleases without your permission.Courtesy of your friend the trend, everybody
is a genius in a bull market ... and a nave misguided trend follower when prices drop
without prior notice.There is no foolproof way to find out when the market is about to
change directions. There are, however, ways to put the odds in your favor.Watching
support levels has proven a very effective way. A few months ago 1,170 was a crucial
support level highlighted by the ETF Profit Strategy Newsletter. The S&P tested this
level no less than five times, but never broker below it and rallied over 10% since.Just
recently, 1,270 was such a support level. The S&P tested it twice before moving into the
1,320 range. The market is dynamic and can change swiftly; therefore, it's the market
that dictates support levels, not us. We just identify and use them.At the current
juncture, support levels are vital because they define the trend. As long as support
remains intact, so does the rally. Once support is broken, watch out…’
Stock Market Resiliency Being Put to the Test Minyanville Suttmeier, chief market
strategist at ValuEngine.com.’The test of resiliency for stocks comes from the dynamics
for the US capital markets, both fundamentally and technically. The yield on the 10-year
US Treasury note has held my annual value level at 3.791, and these high yields are a
drag on equity valuations. Comex gold has been volatile but seems to find a home at
my annual pivot at $1356.5. Nymex crude oil trades on both sides of my semiannual
pivot at $87.52. In this environment US stocks have become overvalued fundamentally
and overbought technically. Stocks have been trading under a ValuEngine Valuation
Warning for the past three days as the major averages push the envelope of new multi-
year highs.I still see the warning flags flying from Egypt, Europe, and the emerging
markets which are laggards as we approach mid-February. While the Dow Industrial
Average is up 5.6% year to date the iShares MSCI Emerging Markets Index Fund
(EEM) is down 5.4%, and the iShares FTSE China 25 Index Fund (FXI) is down 4.0%
and is below both its 50-day simple moving average at $43.28 and its 200-day simple
moving average at $42.13. These types of negative divergences suggest to me that US
stocks are vulnerable once their Fed-induced bubbles pop.Thursday’s equity closes
were above all of this week’s pivots at 12,142 Dow Industrial Average, 1316.2 S&P 500,
2770 Nasdaq, 5077 Dow Transports, and 800.13 Russell 2000. The S&P 500 tested
and held its weekly pivot at 1316.2. The Dow Transport Average outperformed on
Thursday and tested its annual pivot at 5179.
• The Dow Industrial Average (12,229) -- My monthly value level is 11,759 with
daily and annual risky levels at 12,404 and 13,890.
• The S&P 500 (1321.9) -- My quarterly value level is 1262.5 with today’s risky
level at 1344.5.
• The NASDAQ (2790) -- My monthly value level is 2611 with daily and quarterly
risky levels at 2850 and 2853.
• Dow Transports (5168) -- My monthly value level is 4962 with daily and annual
pivots at 5162 and 5179. Transports lag its January 18 high at 5256.80.
and 765.50 with a daily risky level at 829.97.
We are trading under a ValuEngine Valuation Warning -- 16 of 16 sectors overvalued

with only 33.15% of all stocks undervalued on Wednesday, below the 35% threshold by
this measure. This also means that 66.86% of all stocks are overvalued. Why does Wall
Street think stocks are cheap?
The US Treasury 10-Year Yield -- (3.702) My annual value level is 3.791 with a weekly
Comex Gold -- ($1361.7) My quarterly and annual pivots are $1331.3 and $1356.5 with
daily, monthly, quarterly, and semiannual risky levels are $1375.2, $1412.4, $1441.7,
and $1452.6.
Nymex Crude Oil – ($87.14) My semiannual pivot at $87.52 has become a magnet with
a monthly pivot at $91.83.
The Euro -- (1.3593) My quarterly value level is 1.3227 with my monthly risky level at
1.4225.
Foreclosure Lull as Repossessions Rise Again

Foreclosure paperwork issues have slowed the home foreclosure process over the past
two months, but as this dilemma works its way to a solution, foreclosures will rise again,
as will bank auctions of OREO (Other Real Estate Owned). As a result, more
homeowners who are missing mortgage payments are staying in their homes longer,
adding to the backlog of bad loans. Meanwhile, banks are picking up the pace in
repossessions taking back 78,133 properties in January according to RealtyTrac. This is
up 12% from December. Banks took back more than a million homes in 2010, and
about five million borrowers are at least two months behind on mortgage payments.
The housing problems remain the same: high unemployment, a weak housing market,
falling home prices, and tighter lending standards.’
Debunking the 'Debunking Myths of U.S. Collapse' Post Ridder [ Stated another
way, the collapse of the (dis)united states is at hand. Now, let me state, that
doesn’t mean america will disappear from the face of the earth, but the reality
truly is ‘death from a thousand cuts’. It’s not just China’s rise, but america’s
decline and fall with the concomitant relative rise of other nations, regions. Quite
simply, and historically factual reality has proven, nation-states cannot and have
not survived the multitude of negative, destructive, and self-destructive things
america has done and prosper as a leading nation. From perpetual war, to
pervasive corruption, fraud, criminality across all stratum including institutions,
government of american society, to what I believe as well to be an evolved
genetic bias of inherent criminality/mental illness which is ill-adapted to the
strictures of a more enlightened 21st Century by way of near instantaneously
available information, with truth and factual reality being america’s greatest
enemy. In support of the foregoing I will reiterate reasons, infra.] ‘This is a short
response to another post I recently read, "Debunking Myths of U.S. Collapse," which
was a follow up to the article "The End of America? Not Quite." This post had various
and numerous flaws, in my opinion, which I thought had to be addressed. I have
unfortunately recently undergone shoulder surgery, so I will not be able to provide as
comprehensive response as I might hope; but I will provide some basic arguments and
thoughts that rebut or refute the statements given in the "Debunking" post. First, under
the heading "Printing Money Does Not Create Wealth," in which the author attempts
to refute this statement, there is this line of reasoning:
"How will the 'wasted' money get into the hands of the wealth
creators? If the new ear pickers go into their communities
and spend it at local businesses, the printed money goes
from useless employees, into the accounts of productive
businesses (of course the producers get less after layers of
tax bites). So the act of spending printed dollars itself will get
those dollars into the hands of businesses who are able to
create wealth."
Quickly, I will point to Japan, which has tried this over 20 years and seems not to have
created much wealth as measured by the Japanese stock market. On the face of it this
is a Keynesian solution and one source to explain the Keynesian fallacies, and provide
logic for its arguments, is the book, "The Failure of the New Economics: An Analysis of
the Keynesian Fallacies."
Secondly, we come across this statement:
You will realize Dick Cheney got it right when he said

'Deficits don't matter,' and will rest well knowing the US will
not default through non-payment, nor hyper-inflation."
The author Murray Rothbard in the book, "Making Economic Sense," rebuts this thinking
where he writes:
"Myth 1: Deficits are the cause of inflation; deficits have

nothing to do with inflation."
"In recent decades we always have had federal deficits. The
invariable response of the party out of power, whichever it
may be, is to denounce those deficits as being the cause of
perpetual inflation. And the invariable response of whatever
party is in power has been to claim that deficits have nothing
to do with inflation. Both opposing statements are myths.
"Deficits mean that the federal government is spending more

than it is taking in in taxes. Those deficits can be financed in
two ways. If they are financed by selling Treasury bonds to
the public, then the deficits are not inflationary. No new
money is created; people and institutions simply draw down
their bank deposits to pay for the bonds, and the Treasury
spends that money. Money has simply been transferred from
the public to the Treasury, and then the money is spent on
other members of the public.
"On the other hand, the deficit may be financed by selling

bonds to the banking system. If that occurs, the banks create
new money by creating new bank deposits and using them
to buy the bonds. The new money, in the form of bank
deposits, is then spent by the Treasury, and thereby enters
permanently into the spending stream of the economy,
raising prices and causing inflation. By a complex process,
the Federal Reserve enables the banks to create the new
money by generating bank reserves of one-tenth that
amount. Thus, if banks are to buy $100 billion of new bonds
to finance the deficit, the Fed buys approximately $10 billion
of old Treasury bonds. This purchase increases bank
reserves by $10 billion, allowing the banks to pyramid the
creation of new bank deposits or money by ten times that
amount. In short, the government and the banking system it
controls in effect "print" new money to pay for the federal
deficit.
"Thus, deficits are inflationary to the extent that they are

financed by the banking system; they are not inflationary to
the extent they are underwritten by the public."
Third, the author is just plain wrong mathematical analysis under the heading, "Printing
Money Will Cause the U.S. Dollar to Lose Reserve-Currency Status," the author
writes:
"Granted, China is growing at roughly 10% a year, and we

are only growing at 3%. I get that. Let's do the math though
and see if we should worry. If China is a $6 trillion economy,
growing at 10%, they grow by $600 billion a year. If we are a
$14 trillion economy growing at 3%, we grow by $420 billion
a year. In this close to reality example, China is closing the
gap at $180 billion a year. At this rate - it will take China 44
years to even match the US in GDP. Can they continue to
grow at 10% a year, while their largest customer grows at
3% for 44 straight year? We are a far cry from no longer
being the largest economy. The biggest economy in the
world should be blessed with the reserve currency."
I took $14 trillion and grew it at a 3% rate in a spreadsheet and then took $6 trillion in a
spreadsheet and grew it at 10% a year. One will find that if the 3% and 10% growth
rates hold then in only 13 years (from a base year of zero) the Chinese economy would
surpass the U.S. economy. This is much lower than 44 years, actually less than 30% of
the time! It appears the author forgot to compound the growth rates but just used the
difference in the first year to compute a timeline. Finally, the OECD showed that the EU-
27 had a larger economy than the U.S. in 2009.
Fourth, there is this paragraph headline, "If Money Printing is Good, Then Just Print
Enough To Give Everyone $1 Million," and then tries to protect the money printing
position, which starts as follows:
"If printing is not a big deal, then why not just print away? The doom and
gloomers jump to the conclusion that if I think printing won't cause the
collapse of America, it must be a good thing. So why not seek more of that
good thing?"
The author then rambles on about how he is not calling for everyone to get a huge lump
sum and therefore his money printing position is okay. Left unanswered is what is the
"right" amount of money to print and how exactly does it get distributed. Rothbard
provides a more thoughtful analysis of this type of situation, again, in his book, "The
Mystery of Banking," where he introduces the Angel Gabriel analogy:
"To show why an increase in the money supply confers no

social benefits, let us picture to ourselves what I call the
"Angel Gabriel" model. The Angel Gabriel is a benevolent
spirit who wishes only the best for mankind, but
unfortunately knows nothing about economics. He hears
mankind constantly complaining about a lack of money, so
he decides to intervene and do something about it. And so
overnight, while all of us are sleeping, the Angel Gabriel
descends and magically doubles everyone's stock of money.
In the morning, when we all wake up, we find that the
amount of money we had in our wallets, purses, safes, and
bank accounts has doubled.
"What will be the reaction? Everyone knows it will be instant
hoopla and joyous bewilderment. Every person will consider
that he is now twice as well off, since his money stock has
doubled. In terms of our Figure 3.4, everyone's cash
balance, and therefore total M, has doubled to $200 billion.
Everyone rushes out to spend their new surplus cash
balances. But, as they rush to spend the money, all that
happens is that demand curves for all goods and services
rise. Society is no better off than before, since real
resources, labor, capital, goods, natural resources,
productivity, have not changed at all. And so prices will,
overall, approximately double, and people will find that they
are not really any better off than they were before. Their
cash balances have doubled, but so have prices, and so
their purchasing power remains the same. Because he knew
no economics, the Angel Gabriel's gift to mankind has turned
to ashes.
"But let us note something important for our later analysis of

the real world processes of inflation and monetary
expansion. It is not true that no one is better off from the
Angel Gabriel's doubling of the supply of money. Those
lucky folks who rushed out the next morning, just as the
stores were opening, managed to spend their increased
cash before prices had a chance to rise; they certainly
benefited. Those people, on the other hand, who decided to
wait a few days or weeks before they spent their money, lost
by the deal, for they found that their buying prices rose
before they had the chance to spend the increased amounts
of money. In short, society did not gain overall, but the early
spenders benefited at the expense of the late spenders. The
profligate gained at the expense of the cautious and thrifty:
another joke at the expense of the good Angel." (Pages 45-
46)
Fifth, it appears that the author has reintroduced the fallacy of the labor theory of value
when he states:
"The U.S. Dollar Has Lost 96% of its Purchasing Power -

Thus Printing Makes Us Poorer. This argument only
covers one side of the story. While each individual dollar
buys less goods, the argument is incomplete. To bust this
myth, we just need to look at how much time it requires to
pay for those goods. Instead of looking at how many dollars
it takes to buy a candy bar today compared to 30 years ago,
I would challenge you to instead value the candy bar in
hours of labor to obtain it."
I am almost at a loss as how to respond to the labor theory of value appearing to pop up
again. I think one can go to any of today’s basic economic textbooks and have that
fallacy addressed. I only hope the author was intending to discuss real wages and
unfortunately used poor wording that accidently came out as in favor for the labor theory
of value.
Finally, the author writes:
"I want the reader to know though, you can rest confident
knowing that tonight the U.S. will not collapse by the time
you wake up in the morning. Sleep well because the U.S.
Dollar will not be worthless when you wake up ... Fear for the
collapse of America is unwarranted and rooted in
misunderstanding of the monetary system in which we live
under today. We are not Greece. Or Weimar. Or Zimbabwe."
I would caution the reader that author’s writing has numerous fallacies and
mathematical inaccuracies. A need for clearer and more thoughtful thinking is needed to
analyze the monetary and fiscal policies of Greece, Weimar, and Zimbabwe and
compare them to the U.S. I do recall a while ago that the central bank head of
Zimbabwe said his bank was just doing the same thing the FED was. This is not the
type of neighborhood I would like to take even a short visit to.’
IMF calls for dollar alternative The International Monetary Fund issued a report
Thursday on a possible replacement for the dollar as the world’s reserve
currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize
the global financial system.
Shocking New IMF Report: The U.S. Dollar Needs To Be Replaced As The World
Reserve Currency And SDRs “Could Constitute An Embryo Of Global
Currency” The IMF is trying to move the world away from the U.S. dollar and
towards a global currency once again. In a new report entitled “Enhancing
International Monetary Stability—A Role for the SDR”, the IMF details the
“problems” with having the U.S. dollar as the reserve currency of the globe
and the IMF discusses the potential for a larger role for SDRs (Special
Drawing Rights).
CBO Director Says Obamacare Would Reduce Employment by 800,000 Workers
Testifying today before the House Budget Committee, Congressional Budget
Office (CBO) Director Doug Elmendorf confirmed that Obamacare is
expected to reduce the number of jobs in the labor market by an estimated
800,000.
Goldman Sachs Not So Bullish About Gold This recent note out of the Goldman
Sachs Investment Strategy Group is likely to wrinkle some feathers in the
world of gold investors. Goldman sees gold as an increasingly poor
investment going forward.
National / World
Reparations: Rahm Says Pay the Banksters First Kurt Nimmo | Emanuel knows
black Americans will never see a cent under the transfer of wealth scheme
known as slave reparations.
House Clears Path For Extension Of Government Spying On American Citizens

Steve Watson | PATRIOT Act renewal clears House vote, will be passed next
week.
Globalists Push SDRs as World Reserve Currency Kurt Nimmo | The banksters
have purposely attacked the dollar in order to move us into a globalist world
currency.
T_rump: Ron Paul Has “Zero Chance” Of Beating Obama Paul Joseph Watson | {
Drudgereport: TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE
CONFERENCE... PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! …
Donald T_rump Would Impose 25% Tax on China Imports if President [ trump
also said america’s become the laughingstock of the world … true enough … and
trump the biggest joke … Indeed, that trump even posits the possibility of a run
when he should be in jail is a testament to just how big a laughingstock
pervasively corrupt, defacto bankrupt america’s become! [ If he was mobster in
chief, mobster and scoundrel trump wraps himself in populist american flag and
offers up an (too little too late – typical lightweight) implausible solution to keep
‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation
with meaningful laws. All China has to do is dump (and not prospectively buy)
their ever more and declining in value day-by-day (from dollar debasement
policies) u.s. paper / bonds and overnight the u.s. economy consequently
thereby collapses. [ When you come right down to it, this has been america’s
most significant export. Indeed, this irrevocable structural shift, hailed by cia men
hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA
as the greatest thing since sliced bread was indeed in no uncertain terms
condemned and warned against by Perot, a man of honor who, unlike his
opponents, could not be bought, which is the reason, in pervasively corrupt
america, he could never have been elected. Interestingly, you may have noticed
the good (but not great, other than the spotlight on pervasive bribery including
judges, police, politicians, etc., being far too light) the film ‘The Untouchables’
getting a wide re-airing of late, purporting to be a significant part of american
folklore / history / culture. However, the reality is that in america, and certainly
today, the real story with impact is that of ‘The Touchables’. The reality is that
Elliot Ness died a broken man; bankrupt, unable to even win election to the
mayoralty of his then current hometown. He was incorruptible; and hence, in the
real america, unelectable at the least if not also all but unemployable (he and his
are among those few genetic anomalies in america as I’ve previously alluded to.
How far america has fallen from even false perception! Pervasively corrupt,
meaningfully lawless america can’t even fake it anymore. See, for example,
etc.).
China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?' }
In reality, the Texas Congressman has a better chance than Republican darling
Sarah Palin.
Wael Ghonim of Google plays an integral part in ElBaradei’s bid to seize power
Tony Cartalucci | Perhaps Ghonim doesn’t know who ElBaradei really works
for and that he consorts with the very men making the US policy he feigns to
deplore.
Daily News | Donald Rumsfeld and Dick Cheney were booed on Thursday at the
Conservative Political Action Conference.
Cheney Heckled at CPAC: Paul Supporters Hijack Cheney-Rumsfeld Reunion

TPM | Dick Cheney just popped up here at CPAC to introduce his old pal and
Bush administration colleague Donald Rumsfeld when fans of Ron Paul loudly
accused the former VP of being a ‘war criminal.’
Mubarak Steps Down as President, Army Takes Over ABC News | Egypt’s
embattled President Hosni Mubarak abruptly stepped down as president, ending
his 30-year
America’s Strategic Repression of the ‘Arab Awakening’ A popular backlash

against American-supported dictatorships and repressive regimes has been
anticipated for a number of years, with arch-hawk geopolitical strategist
Zbigniew Brzezinski articulating a broad conception of a ‘Global Political
Awakening’ taking place, in which the masses of the world (predominantly
the educated, exploited and impoverished youth of the ‘Third World’) have
become acutely aware of their subjugation, inequality, exploitation and
oppression.
Drudgereport: IMF CALLS FOR ALTERNATIVE TO $$ AS WORLD'S RESERVE
MILITARY TAKES COMMAND
'Egypt is Free,' crowds chant...
WIRE: Military coup was behind Mubarak's exit...
Military calls for normal business activity to resume...
DAY 18: Mubarak and family flee Cairo for Sharm el-Sheikh...
Swiss freeze assets...
Obama learns of resignation watching TV...
Crisis Puts White House in Disarray...
Director of National Intelligence: Muslim Brotherhood 'Largely Secular,' 'Has
Eschewed Violence'...
'Weakness' in USA...
Ahmadinejad: Egyptian protests herald new Mideast...
FRANCE 24 LIVE FEED...
Mubarak Hangs Tough...
VP Urges Protestors to Ignore Media, and Go Home...
CIA Panetta Confused: Said Strong likelihood Mubarak would 'step down
tonight'...
March to palace being organized...
REUTERS LIVE...
ElBaradei warns Egypt will 'explode'....
Egypt's govt on the brink..
FLASH CRASH: APPLE stock loses $10 billion in four minutes...
Jobs' Health Rumor?
Kyl becomes fifth senator to step aside...
Fed Governor Resigns; Bernanke Adviser Questioned Stimulus...
NBC: Intelligence officials 'scrambling to try to determine exactly what this all
means'...
TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...
etc.).
China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'
Kevin Warsh to leave Federal Reserve Board (Washington Post) [ How ‘bout
gettin’ them all to leave … now that would sound like a … sound plan! Is
Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally
Incompetent? Infowars.com Did you see Ben Bernanke’s testimony before
the House Budget Committee on Wednesday? It was quite a show. Bernanke
seems to believe that if he just keeps on repeating the same mantras over
and over that somehow they will become true. ] The departure leaves the
governing board almost entirely in the hands of Obama appointees.
Mubarak's defiance puts U.S. on the defensive (Washington Post) [ Kissinger on

Egypt unrest (2-01-11) – “This is only the first scene of the first act of a
drama that is to be played out” - And what scene of what act are we in now
sweet hank, pray tell. Indeed, after kissinger’s ingratiating comments of the
wobama administration’s ‘proper’ handling of the crisis thus far (drummin’
up potential new ‘business’ for doin’ who knows what if anything at all) …
his ‘consulting business’ must be … off … considerably! ]
House Republicans divided on spending cuts (Washington Post) [ Holy smokes!

… $100 billion … Davis ‘… This is how we pay off our current debts and I
think bondholders are simply happy to get anything out of a country that
(entire global GDP) in the form of unfunded liabilities. The funniest thing
about this (and you have to laugh) is to see Conservative pundits get on TV
and talk about how we need to cut $100Bn worth of discretionary spending
to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax
cuts for the top 1% each year). There is no fixing this and even a Republican
said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS
IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
] ] An already wobbly week for House Republicans turns chaotic as their
unruly new majority flatly rejects a spending plan crafted by House leaders,
saying its cuts fell far short of fulfilling a campaign pledge to slice $100
billion from federal programs.
Mubarak's iron rule Robinson: Crumbling but not gently (Washington Post) [ True
enough … that crumbling but not gently thing … sounds very ‘americana’ …
Spreading unrest raises pressure on Mubarak (Washington Post) An array of
new developments turned against President Hosni Mubarak on Wednesday
as Egypt moved closer to a full rupture between its autocratic government
and a growing popular rebellion. [ Do not talk about ruptures in the
presence of Pharhosni Mubarak he chides the Washington Post! After all, at
82 years old and 30 years in power, hernias are known to quite easily
happen… Previous: Free elections still distant prospect for Egypt
Activists express doubts about feasibility of September ballot (Washington
Post) ["I'm shocked by what the Americans say - that Mubarak must stay as
president so we can prepare for new elections,'' said Negad El Borai, a
human rights advocate and lawyer in Cairo. "Mubarak must leave, and then
we can talk." … Truth be told, I’m not shocked. Indeed, though this is only
marginally what america / israel wanted, this will stick to america / israel like
glue; that proverbial albatross; that lose, lose scenario for america in the
region. Previous: Egypt protests continue as Mubarak's government offers
concessions (Washington Post) [ Come on! Let not all of us join america’s /
israel’s, et als, and mubarak’s delusions. After all, here’s an 82 year old
tyrant, in power for 30 years, yet in some parallel universe appears to think
he’s calling the shots. Other than literal and quite foolish shots against
protesters, even journalists, see infra, there are few indeed that would trust
his mindset, such as it is, much less his judgment, so flawed as he has now
shown it to be. What is obvious is that this long overdue ‘people’s election’
cannot be thwarted by platitudes and small talk, but resisting the inevitable
will turn an american quasi-ally into an anti-american breeding ground
because there’s just no reconciling a pro-mubarak, however slight, position
with american / israeli, et als war crimes in the region. Restless Cairo
protesters hoping for U.S. support (Washington Post) [ The sad reality here
is, much like wobama’s Afghanistan fiasco, that america has ‘bought it’. This
is truly yet another ‘loss, loss’ scenario as is true of america’s mideast
policy generally. Defacto bankrupt america’s initiatives in the region
particularly, though generally true of all american policy, is the ‘square pegs
in round holes’ approach to almost everything they do, which certainly is not
lost on the rest of the world. Coddling and caving in to israeli / neocon /
zionist paranoia despite the war mongering intransigence of the former is
devastating to a nation as pervasively corrupt america which is facing
insurmountable domestic problems of its own, economically, financially,
politically, and geo-politically. This should bring to mind the missteps of a
former fading empire in this same region desperately trying to remain
relevant. Indeed, from Balfour’s Despoliation to arbitrary boundaries, etc.,
Orwellian britain’s demise (decline) as a real player globally was, as
america’s currently, significantly and irrevocably hastened. Quite simply,
pervasively corrupt, defacto bankrupt america will increasingly be viewed as
a bunch of ‘muck-ups’ who can’t handle their own substantial problems
much less those of other nations; and in fact, invariably exacerbate existing
conditions / problems, particularly when pandering to israel’s self-interested
concerns. ] While the ouster of President Hosni Mubarak remains the most
pressing concern for protesters, the role of U.S. is far from absent in the
dialogue. { Previous: Amid Arab protests, U.S. influence has waned
(Washington Post) [ And that’s just the way israel likes it … and to america’s
detriment, of course … which is not lost on even George Soros …
Drudgereport: Soros: 'The main stumbling block is Israel'... ….. Egyptian
protesters plan new push Government detains foreigners, says it's willing
to open talks (Washington Post) [ Open talks? ‘bout what? Building a
pyramid in mubarak’s honor before stepping down? He’s done … finito …
burnt as an over-micro-waved burrito! The following from the Post is indeed
the straw that broke the riders with whips he sent on camels’ and horses’
backs! ‘Wants to die in Egypt? How touching, or the reality, he’s just plain
touched as in totally ‘out of it’. ‘…In what the U.S. State Department called a
"concerted campaign to intimidate," several dozen journalists were rounded
up by security forces and detained for hours, along with foreigners working
as teachers, engineers and human rights researchers. Across the city, angry
bands of supporters of President Hosni Mubarak also beat journalists;
several reporters said that they were threatened with death…’ ] Cairo
seeks to shift blame for clashes by rounding up journalists; U.S. worries
renewed protests could spark more violence from Mubarak supporters.
Demonstrations in Egypt take bloody turn In Cairo square, Mubarak
backers confront anti-government crowds (Washington Post) [ Not too
difficult for desperate and done mubarak to contrive: Mubarak Says
Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His
Thugs to Stir Up Chaos (Infowars.com) In order to justify staying in power
until elections are held in September, President Mubarak said on tv that the
people had to choose between him and “chaos”. ] The coordinated nature
of day's events suggested that Mubarak's supporters were determined to
show, as he had warned, that the country faced a "choice between chaos
and stability." [ Previous: Mubarak's pledge seen as not enough
Egyptian president plans to stay in office to transfer power (Washington
Post) [ Let me put it another way: Mubarak is as done as an over-cooked
tamale … He seems to be stalling for time and even in his age impaired mind
certainly knows his position is untenable, unsustainable, and even more
irrational as each second passes. There is a possibility that he’s using same
to move money / treasure for himself and others, literally as well, buying
time. See infra … Previous: Mubarak seeks dialogue, shows no sign of
relenting Demonstrators call for massive protest but lack leadership
(Washington Post) [ He relented when he resorted to media / internet
blackout. Indeed, this lack of sign thing is a testament to how far from reality
30 years has taken him, not to mention the other 52 years that have taken
their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or
outright senility, that he is so disengaged from the events unfolding around
him, one may only wonder how he lasted this long. Nor did his choice of cia
standin / shill, new VP Suleiman enhance his now untenable position which
leaves him as ‘done as a burnt enchilada’. Kissinger on Egypt unrest –
“This is only the first scene of the first act of a drama that is to be played
out” [ The import of this so-called interview, and it is here that I part
company with alex jones, et als (who by the way, censored me for this very
thesis, which puts him and his at the top of my hypocrite list), is that the so-
called elite have orchestrated these events and ‘are in control’. First, there
are no elites in this world; you can’t derive elites from apes, notochordates,
and initially single celled organisms. Second, almost by definition and
certainly by history, there are no elites in america even if you were to accept
the first proposition (though true) as untrue. What you do have, in this world
and america particularly (with few exceptions as I’ve discussed elsewhere /
comments / my website), are inherent criminals and mentally ill people of
varying degrees of unscrupulousness and insanity who do commit crimes,
both small and large, to further their interests or fortunes (sociopaths /
psychopaths). The ’so-called alpha-dogs’ of the human species at most, but
still incompetent vegetables who, if you look at anything they touch (to use a
term term of such incompetent vegetables as historically pertains to their
role in the mideast – and generally the state of the world) it invariably goes
‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as
appointee or ‘consultant’ – what does he get paid for? No! The fact is, they
have absolutely no idea how this unfolds and as with most of their lives,
they will predictably choose the most sordid, despicable, and diabolical
course at every turn because … that is their inherently criminal, mentally ill /
unstable nature to do so. ]
] Fragile steps to end crisis seen as plans take shape for a transition process
that would allow Mubarak to remain as a figure head until new elections. ] After
decades of repression, democracy advocates say it could take many months -- if
not years -- to lay groundwork for open and credible elections. ]
Mubarak cedes some authority but refuses to quit In latest bid to quell
protests, president transfers powers to VP (Washington Post) [Wow! ‘Earlier
Thursday, CIA Director Leon Panetta told Congress that "there is a strong
likelihood that Mubarak may step down this evening."…’ Talk about being out of
the loop and stuck with ‘foot-in-mouth’ … not that you’d expect more from the
CIA … CIA's dilemma in Egypt (Washington Post) [ Come on! How does anyone
take these ‘muck-ups’ seriously … As a purported journalist, Mr. Ignatius should
know better. What distracts the agency is self-interest and greed … yes, greed for
themselves, theirs, and a raison d’etre that assures their continued funding (oh
how they miss the cold war, hot ones will have to do) on top of their private so-
called ‘black ops’. They’re wrong or absent without leave (awol) on major events
purportedly within their bailiwick; ie., mideast, israel, ‘wmd’s in Iraq’, 9-11, Egypt,
etc.; and, as well, are fallacious in their policy direction, directives, etc.. I mean,
beyond their nefarious undertakings, they look more and more like Maxwell
Smarts (‘Get Smart’) minus ‘99’ every day. Expanded Free Trade: Exporting Jobs [
When you come right down to it, this has been america’s most significant export.
Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton
(clinton couldn’t have survived without them) by way of NAFTA as the greatest
thing since sliced bread was indeed in no uncertain terms condemned and
warned against by Perot, a man of honor who, unlike his opponents, could not be
bought, which is the reason, in pervasively corrupt america, he could never have
been elected. Interestingly, you may have noticed the good (but not great, other
than the spotlight on pervasive bribery including judges, police, politicians, etc.,
being far too light) the film ‘The Untouchables’ getting a wide re-airing of late,
purporting to be a significant part of american folklore / history / culture.
However, the reality is that in america, and certainly today, the real story with
impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken
man; bankrupt, unable to even win election to the mayoralty of his then current
hometown. He was incorruptible; and hence, in the real america, unelectable at
the least if not also all but unemployable (he and his are among those few genetic
anomalies in america as I’ve previously alluded to. How far america has fallen
from even false perception! Pervasively corrupt, meaningfully lawless america
can’t even fake it anymore. At CIA, mistakes by officers are often overlooked
(Washington Post) [ Duuuh! I want to know of even one thing that’s not
overlooked concerning those incompetent mental cases at the cia; from
assassinations, to illegal drug dealing, to illegal arms sales, to corruption, to
disinformation, etc., to america’s and the world’s (ie., those WMD’s in Iraq, etc.)
substantial detriment. See, for example,
evolved american trait of inherent criminality in the most nefarious sense (
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm
) ]:
CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY SHOWING

LATEST AVAILABLE DATA (america’s No. 1).
Rank Countries Amount

# 1 United States: 11,877,218
# 2 United Kingdom: 6,523,706
# 3 Germany: 6,507,394
… The following youtube video is well worth the look and explains how and why
the frauds on wall street have gotten away with their devastating fraud thus
far. The frauds on wall street et als should be criminally prosecuted, jailed,
fined, and disgorgement imposed. ( UPDATE: MORE CLAIMS OF RACE
BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN
BLACK PANTHER CASE... ex-Justice official quit over the handling of a
cases that involve black defendants and white victims US v. AZ... Cases
against Wall Street lag despite Holder’s vows to target financial fraud
Obama broke promises ):

=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google
Trends ]
‘The Obama Deception’ Censored ‘The Obama Deception’ has been censored
In light of this development, I provide an archived site version which appears to
be complete (but will be compared with earlier version and replaced with same if
incomplete) http://albertpeia.com/obamadeceptionhighqualityversion.flv

http://video.google.com/videoplay?docid=-7052400717834950257#
For the Same Reason I’ve Included Here a Web Site Archived FLV Version of
] ] Ignatius: Its fight against al-Qaeda has distracted the agency.
] Egyptian leader's defiance stuns and angers hundreds of thousands in Cairo

who respond with chants of "revolution, revolution."
Cisco Slump, Mubarak Saga Keep Lid On Stocks [ But guess what? The
fraudulent wall street rally point … ‘news that Egyptian President Hosni Mubarak
would step down’ … never happened! ] ‘Disappointing earnings projections from
Cisco and PepsiCo pressured Wall Street Friday morning, but news that Egyptian
President Hosni Mubarak would step down buoyed markets by midday and the
major indexes essentially flat by the closing bell.The Nasdaq actually ticked
positive to gain 1 point to 2,790, despite Wednesday’s troubling report from Cisco
that included a decline in gross margins along with its better than expected
earnings and revenue. (See “Cisco: Prelude To Profits, Or Layoffs.”)Cisco’s
shares slumped 14.2%, but the rest of the tech sector as fairly resilient. Apple
was also in the news, after a sudden plunge in the 1 p.m. hour on little news
before recovering to finish with a 1% decline. (See “Did Someone Have A Fat
Finger On Apple Today?”)Egypt jumped back into the headlines shortly after the
open, with speculation that President Hosni Mubarak would resign. In a speech
that began just before the U.S. markets closed, Mubarak stopped short of
confirming his departure, but did say he would transfer some of his presidential
powers to Vice President Omar Suleiman until a September election.It was a
tough day for companies who rang the closing bells at NYSE and Nasdaq, since
all eyes were on Mubarak’s speech that ran past the end of trading. The S&P 500
added 1 point to 1,322, while the Dow Jones industrial average broke its eight-day
winning streak with an 11-point decline to 12,229.Aside from Cisco, a weaker-
than-anticipated forecast from PepsiCo also pressured stocks, overshadowing
any enthusiasm for the latest snapshot of the job market. New jobless claims fell
to their lowest level since July 2008 last week, according to the Labor
Department, dropping to 383,000. The four-week moving average was down to
415,500.’
Initial Jobless Claims Drop to 383,000 [ Come on! Who believes anything they say
/ report! ]
Minimum 5% Correction Begins Cooper ‘Minyanville Editor's Note: The following

is a free edition of Jeff Cooper's Daily Market Report…..Is it getting better?
Or do you feel the same?One (U2)
“Synchronicity is no more baffling or mysterious than the discontinuities of

physics. It is only the ingrained belief in the sovereign power of causality
that creates intellectual difficulties and makes it appear unthinkable that
causeless events exist or could ever exist. But if they do, then we must
regard them as creative acts, as the continuous creation of a pattern that
exists from all eternity, repeats itself sporadically, and is not derivable from
any known antecedents. Continuous creation is to be thought of not only as
a series of successive acts of creation, but also as the eternal presence of
the ONE creative act.” -- Carl Jung
[ Wow! … Note to myself: Never bother reading the verbose, circumlocution-
prone jung. And, truth be told, while I believe it to be true there’s a
substantial correction in the offing, and it’s also true that the business
cycles shouldn’t be ignored (though computerization has lessened the
impact of ‘inventory recessions’), and that the market is significantly
overvalued; the following is a bit much and included as a matter of curiosity
(those modern day alchemists thing … ie., helicopter ben spinning more
fake money from paper, fraudulent wall street’s worthless assets from paper
and spin, etc..) and correct for the wrong or questionable reasons but is
somewhat of a ‘hoot’; and so, you may borrow and don Mickey’s sorcerer’s
(apprentice) hat and hang on for the ride. Whew! … that Jungian verbosity
thing must be catching! Happy halloweeny! ]
Cisco Slump, Mubarak Saga Keep Lid On Stocks [ But guess what? The
fraudulent wall street rally point … ‘news that Egyptian President Hosni Mubarak
would step down’ … never happened! ] ‘Disappointing earnings projections from
Cisco and PepsiCo pressured Wall Street Friday morning, but news that Egyptian
President Hosni Mubarak would step down buoyed markets by midday and the
major indexes essentially flat by the closing bell.The Nasdaq actually ticked
positive to gain 1 point to 2,790, despite Wednesday’s troubling report from Cisco
that included a decline in gross margins along with its better than expected
earnings and revenue. (See “Cisco: Prelude To Profits, Or Layoffs.”)Cisco’s
shares slumped 14.2%, but the rest of the tech sector as fairly resilient. Apple
was also in the news, after a sudden plunge in the 1 p.m. hour on little news
before recovering to finish with a 1% decline. (See “Did Someone Have A Fat
Finger On Apple Today?”)Egypt jumped back into the headlines shortly after the
open, with speculation that President Hosni Mubarak would resign. In a speech
that began just before the U.S. markets closed, Mubarak stopped short of
confirming his departure, but did say he would transfer some of his presidential
powers to Vice President Omar Suleiman until a September election.It was a
tough day for companies who rang the closing bells at NYSE and Nasdaq, since
all eyes were on Mubarak’s speech that ran past the end of trading. The S&P 500
added 1 point to 1,322, while the Dow Jones industrial average broke its eight-day
winning streak with an 11-point decline to 12,229.Aside from Cisco, a weaker-
than-anticipated forecast from PepsiCo also pressured stocks, overshadowing
any enthusiasm for the latest snapshot of the job market. New jobless claims fell
to their lowest level since July 2008 last week, according to the Labor
Department, dropping to 383,000. The four-week moving average was down to
415,500.’
Initial Jobless Claims Drop to 383,000 [ Come on! Who believes anything they say
/ report! ]
Minimum 5% Correction Begins Cooper ‘Minyanville Editor's Note: The following

is a free edition of Jeff Cooper's Daily Market Report…..Is it getting better?Or do
you feel the same?One (U2)
“Synchronicity is no more baffling or mysterious than the discontinuities of

physics. It is only the ingrained belief in the sovereign power of causality that
creates intellectual difficulties and makes it appear unthinkable that causeless
events exist or could ever exist. But if they do, then we must regard them as
creative acts, as the continuous creation of a pattern that exists from all eternity,
repeats itself sporadically, and is not derivable from any known antecedents.
Continuous creation is to be thought of not only as a series of successive acts of
creation, but also as the eternal presence of the ONE creative act.” -- Carl Jung
[ Wow! … Note to myself: Never bother reading the verbose, circumlocution-

prone jung. And, truth be told, while I believe it to be true there’s a substantial
correction in the offing, and it’s also true that the business cycles shouldn’t be
ignored (though computerization has lessened the impact of ‘inventory
recessions’), and that the market is significantly overvalued; the following is a bit
much and included as a matter of curiosity (those modern day alchemists thing
… ie., helicopter ben spinning more fake money from paper, fraudulent wall
street’s worthless assets from paper and spin, etc..) and correct for the wrong or
questionable reasons but is somewhat of a ‘hoot’; and so, you may borrow and
don Mickey’s sorcerer’s (apprentice) hat and hang on for the ride. Whew! … that
Jungian verbosity thing must be catching! Happy halloweeny! ]
The relevance of trading with time and cycle may alone be less accurate than
forecast with price; however its relevance increases as forecasted times
approach, price patterns and momentum wanes showing signs of reversal.
When taken together, time/price harmonics have accurately predicted significant
market turning points.
Numbers don’t mean anything until they turn the market, but numbers, not
fundamentals, turn the market. It was not the fundamentals that turned the market
in March 2009.
One of W.D. Gann’s major methods for market timing was to use fractions of a
circle, specifically into quarters, eighths, and thirds, to count the number of days,
weeks, and months between highs and lows.
For example, the circle has 360 degrees, 90 is one-quarter, 45 is one-eighth.
Rounding, one-eighth of 90 is 11, two-eighths is 22, three-eighths is 33, and four-
eights is 45.
W.D. Gann was the greatest student and researcher of the market ever but he was
very secretive about what he revealed and how he revealed it. He never chose his
words without a distinct reason.
For example, one of Gann’s books was called 45 Years in Wall Street. Note that
the title was not 45 Years on Wall Street, but in Wall Street.
The book was not about his career on Wall Street but about a cycle on Wall
Street.
As well as regular cycles, there are random fluctuations in things too. The
random occurrences can camouflage the periodicity of cycles and also generate
what appear to be new, smaller cycles… which they may not be. This is one of the
problems with market-timing signals.
In addition, many things act as if they are influenced simultaneously by several
different rhythmic influences, the composite effect of which is not regular at all.
Cycles may have been present in the figures you have been studying merely by
chance. The ups and downs you have noticed, which come at more or less
regular intervals, may have just happened to come that way. The regularity, the
cycle, is there but in such circumstances it may carry no significance
Cycles can invert, appear and disappear, and elipticalize.
When forecasting stock market cycles, they can be influenced by random events.
The predictive value of cycles provide only specific probabilities when the
suggested time period is approached.
Fixed time cycles are apparent in stock market tops and bottoms. But, eventually
a cycle may cease to continue. For example, the four-year cycle in the US stock
market held true from 1954 to 1982, producing accurate forecasts of eight market
bottoms. Had an investor recognized the cycle in 1962 he could have amassed a
fortune over the next 20 years. But in 1986, the cycle’s prediction of a low failed
to provide a bear market and in 1987 its rising phase failed to prevent the largest
crash since 1929.
When the market doesn’t do what is expected it is talking, but ultimately the
regression to the mean is vicious.
Long-term cycles, such as the Kondratieff Cycle as well as Elliott Waves,
suggested that the big-picture bull market was coming to an end in 2000.
The Kondratieff Cycle is a common, often-quoted cycle of financial and economic
behavior that lasts about 54 years. This 54-year cycle is close to the Fibonacci 55
number.
One year is a little less than 55 weeks.
Fifty-five was an important count for W.D. Gann. He called a period of 49 to 55
days the Death Zone. February 8 was the 49th trading day from November 30, the
day prior to the December 1 kickoff of this last leg up.
A Synodic Period is the length of time two planets meet in Conjunction, which
means revolving 360 degrees to each other. The 360-degree period is divided into
fractions known as the Sextile (60 degrees), Square (90 degrees), Trine (120
degrees), Opposition (180 degrees), and back to Conjunction again.
Many of the Synodic planetary cycles conform to the Fibonacci Summation
series. Their relationship to natural harmonic vibration is not by chance.
For example Venus revolves around the sun in 61% of one year, or 225 days.
Two-hundred-twenty-five was an important number for Gann because 180 + 45 =
225. These two planets possess the unique Fibonacci relationship of the 0.618
Golden Mean.
Every other conjunction of Mars/Jupiter is four-and-one-third years, or 233 weeks,
another Fibonacci number. This ties to the four-year cycle mentioned above.
While the four-year cycle went out of whack in 1986, there was a significant low in
the fall of 1990 and late 1994, which began the parabolic move into 2000. There
was a shakeout into 1998 and of course there was the 2002 low. There was a two-
month shakeout into June/July of 2006 from 1326 S&P to 1219, which marked the
low prior to the advance into the all-time high. Then there was the summer low in
2010. It's interesting that these same numbers from the last cycle 1326 and 1219
are so prominent four years later.
The recent S&P high this week was 1325 and the big April top in 2010 was 1219.
The Synodic period for the Saturn/Uranus combination is 45 years. One-eighth of
the 360 degree circle and one-half of 90 is 45.
I bring this up because 45 years ago marked the top of the secular bull market in
1966. That bull market began in June 1949.
The powerful two-year advance from March 2009 may have been a result of the
60-year cycle exerting its influence.
One cycle of 45 years back from 1966 gives 1921, which was the big low prior to
the run up into 1929.
If the four-year cycle holds up the next trough should be in 2012. Somewhere
prior to then we should see an important peak. Will a two-year advance be
followed by a two-year decline?
It is interesting that it was eight years from the 1921 low to the vertical peak in
1929 and that it was eight years from 2000 to the vertical drop into 2008. I can’t
help but think that a mirror image foldback of sorts may be playing out with the
market, making an important peak three years following the 2009 low, just as it
made an important low in 1932, three years following the 1929 peak.
Conclusion: 1320 ties to March 6 and squares the 666 price low for a potential
square out. The market has respected this level for two days and is gapping
below 1320 this morning.
The pattern looks reminiscent of the November top, which was a grind up
followed by a climatic spike. [chart]
Monday we saw a spike on the heels of a grinding move up.
The November high was at 1225. We tagged 1325 this week.
The November correction was between 4% and 5% and 152 points. I think another
4% to 5% correction is going to play out quickly into the anniversary of the March
6/9th 2009 low.
Fifty percent of the range from the November 1173 low to this week's 1325 high is
76 points. A decline to 50% of the last swing projects to 1249. There is some good
DNA and symmetry there as this was the projection for the big inverse head-and-
shoulders pattern from 2010. Moreover, 1248/1249 represents a 180-degree
decline on the Square of 9 Chart.
Click here for square of nine chart.
A study of market history shows that corrections against the main trend are much
more uniform while impulse legs in favor of the main trend can have a large
degree of variability. Said in another way, it is easier to define and anticipate
corrections not in favor of and against the primary trend that it is to judge the
extent of the primary trend itself. In my experience, this is one of the most
important lessons revealed in the study of stock market history.
Looking at the form of the advance from the September 1 kickoff, there are two
legs separated by the November correction. Because of the persistence of the
advance, which has seen no more than one 2% move in the last five months
(compared to 14 moves of 2% or more in the preceding five-month period), the
normal expectation would be to see a similar, uniform near-5% correction be
bought with both hands by market participants. At the maximum I would expect
the correction to extend to a backtest of the April/November 2010 highs of
1219/1227 respectively.
If the correction overbalances the November decline in time and price then the
high was more significant.
If a uniform correction plays out it would give rise to a possible third drive up.
Whether such a third drive into the anniversary of the April high if it plays out is a
marginal new high or a significantly higher high remains to be seen. [chart]
Strategy: It looked like Elvis had left the building following the decline of January
28. However, after a genuine sell signal that players pounce on, there is often
times a final squeeze. That may have been the run to 1320.
Fifty percent of the range from the 1275 low on January 28 to this week's 1325
high gives a midpoint of 1300. Any break of 1300, especially on the weekly
closing basis (Friday) confirms a correction is underway from where I sit. This
1300 level ties to 1296, which is 6 X 6 X 6 X 6, resonating of the 666 price low.
1296 is in the upper right-hand corner of the Square of 9 Chart and aligns with
May 6, the flash crash, so I would not underestimate how quickly a reversion to
the mean in the persistency of the advance and a revulsion to sentiment could
take place if everyone tried to get out of the door at the same time. [chart]
A Dow Theory non-confirmation has been ongoing for three and a half weeks
now, which is long in the tooth while the market has been overbought for months
-- a situation where the chickens could come home to roost violently and quickly,
despite the fact that the market has proven to be a Shrine of Boys Crying Wolf.
It may be time to yell wolf.
Trading Lessons: [chart] The following chart is mislabeled as FDX when it's
actually FCX [chart]’
Counties Turning Asphalt Back to Gravel as Rising Materials Costs Hamper Road
Maintenance [Well, this sounds like a b*** s***ish story for the frauds on wall
sreet; viz., load up on grovel companies, etc.. ] ‘We are going back to the Stone
Age. Literally. From NACO (National Association of Counties): Several counties
across the country are going back to the Stone Age — turning asphalt roads back
to gravel, or considering doing so — as rising costs outstrip their ability to
maintain their pavements.Counties in Iowa, Michigan, California and South
Dakota are among those that have decided either to stop maintaining a
percentage of their asphalt roads or to pulverize some paved roads and
downgrade them to gravel.Naturally, California is home to some of the hardest-hit
counties. Sonoma County, for example, based on annual projected revenues can
only afford to budget $5 million to maintain all the county's roads. But estimates
project the cost of maintenance at 11 times that, or $55 million.‘
Housing and Banking Issues Remain Problematic Editor's Note: This article was
written by Richard Suttmeier, chief market strategist at ValuEngine.com‘With the
average 30-year fixed rate mortgage up to 5.13% from 4.81% last week, mortgage
applications continue to slide. The overall Mortgage Application Index declined
5.5% this week led by a 7.7% decline in the Refinance Index with the Purchase
Index down 1.4%. A major negative factor has been significantly higher US
Treasury yields. The yield on the 10-year US Treasury was at 2.334 in October in
anticipation of QE2 9 (quantitative easing), and on Wednesday this yield touched
3.770 up 143.6 basis points. The main purpose of QE2 is to push longer term US
Treasury yields lower so this policy has been a failure.
As a result of this failed monetary policy the percentage of homes that are
underwater versus that have their mortgages outstanding has risen to 27%, which
feeds on projecting even lower home prices as the supply of existing homes for
sale continues to rise. This in turn puts more pressure on banks to make costly
mortgage modifications, and write down more commercial real estate loans.
These are the problems that originally emerged in mid-2005 for the homebuilders,
at the end of 2006 for community banks and in March 2007 for regional banks
including those considered “too big to fail.” Remember, toxic assets are still
around and the larger banks are being asked by the FDIC to increase
contributions to the FDIC Deposit Insurance Fund beginning April 1.
According to Zillow, home values posted their largest quarterly decline of 2.6% in
the fourth quarter, down 5.9% year over year.
On the labor front, the Labor Department reported that employers posted fewer
jobs openings in December, a drop of 140,000 to 3.1 million jobs, the lowest since
September. Nearly 14.5 million Americans were out of work in December with 4.7
people competing for each job available. A healthy reading is 2 to 1. Key to the
housing market and Main Street, USA, are construction jobs, and job openings
fell sharply to 28,000 in December from 91,000 in November.
Wednesday’s closes were above all of this week’s pivots at 12,142 Dow Industrial
Average, 1316.2 S&P 500, 2770 Nasdaq, 5077 Dow Transports, and 800.13 Russell
2000. The S&P 500 tested and held its weekly pivot at 1316.2. The Dow Transport
Average remains below its 50-day simple moving average at 5098 and my annual
pivot at 5179.

with this week’s pivot at 12,142, Wednesday’s high at 12,254.23 with daily
and annual risky levels at 12,399 and 13,890.
• The S&P 500 (1320.9) -- My quarterly value level is 1262.5 with this week’s
pivot at 1316.2, and Tuesday’s high at 1324.87 and today’s risky level at
1346.1.
• The Nasdaq (2789) -- My monthly value level is 2611 with a weekly pivot at
2770 and daily and quarterly risky levels at 2843 and 2853.
• Dow Transports (5096) -- My monthly value level is 4962 with a weekly pivot
at 5077, the 50-day simple moving average at 5098, and daily and annual
pivots at 5145 and 5179. Transports lag its January 18 high at 5256.80.
and 765.50 with a weekly pivot at 800.13 and Tuesday’s high at 813.69 and
daily risky level at 828.06.
We are still trading under a ValuEngine Valuation Warning -- 16 of 16 sectors

overvalued with only 34.28% of all stocks undervalued on Wednesday, below the
35% threshold by this measure. This also means that 65.72% of all stocks are
overvalued. Why does Wall Street think stocks are cheap?
The US Treasury 10-Year Yield -- (3.646) Tested 3.770 on Wednesday versus my

annual value level at 3.791. My annual value level is 3.791 with a weekly risky level
at 3.525. The 10-Year auction helped stabilize the US Treasury market with an
auction level at 3.665, a strong 3.23 bid to cover, and an aggressive 71% indirect
bid.
Comex Gold -- ($1363.7) My quarterly, weekly, and annual pivots are $1331.3,
$1342.8, and $1356.5 with monthly, quarterly, and semiannual risky levels are
$1412.4, $1441.7, and $1452.6. Gold remains below its 50-day simple moving
average at $1375.0.
Nymex Crude Oil -- ($86.85) My semiannual pivot at $87.52 remains a magnet

between a trading range between the January 28 low at $85.11 and its January 31
high at $92.84. My semiannual pivot is $87.52 has become a magnet with weekly
and monthly pivots at $91.62 and $91.83. The 200-day simple moving average is
$80.75.
The Euro -- (1.3728) My quarterly value level is 1.3227 with a weekly pivot at
1.3511 and monthly risky level at 1.4225.
Fed’s Warsh Resigns; Bernanke Adviser Questioned Stimulus Bloomberg | The

only governor to question the expansion of record monetary stimulus in
November.
Ron Paul’s First Subcommittee Hearing: Complete Video Infowars.com | This is

the first hearing held by Dr. Ron Paul as Chairman of the Domestic Monetary
Policy and Technology subcommittee which oversees the Federal Reserve.
The Super Bowl flyover may have cost $450,000 A Dallas TV reporter estimated
that the flyover cost the Navy a total of $450,000.
Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally

Incompetent? Did you see Ben Bernanke’s testimony before the House
Budget Committee on Wednesday? It was quite a show. Bernanke seems to
believe that if he just keeps on repeating the same mantras over and over
that somehow they will become true.
The Social Security Disaster The average retirement age is measured in spans of
five years for accuracy.
Global Stock Exchanges Are Headed for Major Consolidation Germany’s

Deutsche Boerse is in advanced talks to buy NYSE Euronext, and the
London Stock Exchange has agreed to buy Canadian stock market operator
TMX, as exchanges globally look for ways to boost their markets and cut
costs.
Donald T_rump Would Impose 25% Tax on China Imports if President [ If he was
mobster in chief, mobster and scoundrel trump wraps himself in populist
american flag and offers up an (too little too late – typical lightweight) implausible
solution to keep ‘the juice’ flowing though he’d already be in jail in a rational,
non-declining nation with meaningful laws. All China has to do is dump (and not
prospectively buy) their ever more and declining in value day-by-day (from dollar
debasement policies) u.s. paper / bonds and overnight and the u.s. economy
consequently thereby collapse. [ When you come right down to it, this has been
america’s most significant export. Indeed, this irrevocable structural shift, hailed
by cia men hw bush and clinton (clinton couldn’t have survived with them) by
way of NAFTA as the greatest thing since sliced bread was indeed in no
uncertain terms condemned and warned against by Perot, a man of honor who,
unlike his opponents, could not be bought, which is the reason, in pervasively
corrupt america, he could never have been elected. Interestingly, you may have
noticed the good (but not great, other than the spotlight on pervasive bribery
including judges, police, politicians, etc., being far too light) the film ‘The
Untouchables’ getting a wide re-airing of late, purporting to be a significant part
of american folklore / history / culture. However, the reality is that in america, and
certainly today, the real story with impact is that of ‘The Touchables’. The reality
is that Elliot Ness died a broken man; bankrupt, unable to even win election to the
etc.).
america’s just a fraudulent and failed defacto bankrupt nation. ]:

# 3 Germany: 6,507,394

Trends ]

]] “I would announce, without equivocation, a 25% tax increase on anything

purchased from China.”
National / World
A Day in the Park Infowars | A strong entry for “The Answer to 1984 is 1776″ Video
Contest.
Hitler finds out about the DHS Emergency Alert System and the See Something
Say Something program Der Führer spazzes out over Obama stealing his
centralized broadcasting system.
Obama Energy Secretary Promises “Massive” Coal Plant Closures Paul Joseph
Watson | White House agenda to bankrupt coal industry via EPA regulations
accelerates despite rolling blackouts
Big Sis Breaks Out “Heightened” Terror Alert as PATRIOT Act Heads to House
Steve Watson & Paul Joseph Watson | Republicans and Democrats attempt to
out do each other in quest to finish off freedom.
Victory: The Truth Will Out Infowars.com | Over the last few weeks, we have
received a large number of excellent video contest entries.
Hosni Mubarak and American Foreign Policy Sartre | Our own citizens should
hear the lesson and support any meaningful self-determination impulses.
Obama Energy Secretary Promises “Massive” Coal Plant Closures Obama Energy
Secretary Steven Chu has launched the next phase of the White House’s
publicly stated agenda to bankrupt the coal industry via EPA regulations
after announcing the prospect of “massive” coal plant closures even as
Texas and other states suffer rolling blackouts as a result of maxed-out
power plants that cannot cope with demand.
Big Sis Breaks Out “Heightened” Terror Alert As PATRIOT ACT Extension Heads
Back To House Floor Defeat for the proposed extension of the so called
PATRIOT Act in the House Tuesday night made national headlines, yet the
extension is set to pass by the end of the week anyway as it is brought back
to the floor for another vote. But just in case anyone in Congress reaches
the sudden epiphany that they are effectively voting on the Enabling Act, Big
Sis Janet Napolitano has officially notified a congressional panel that the US
faces the greatest possibility of a major terror attack since 9/11.
White House Lies On Blackouts Exposed We have become used to seeing

politicians distort the truth, but when such lies are brazenly plastered all
over the front page of the White House website, it really highlights how
much contempt the government has for the intelligence of the American
people.
Mubarak Refuses To Resign: ‘Will Not Be Dictated To By Orders From Outside’

Mubarak said he was not leaving Egypt, and said he “cannot and will not
accept to be dictated orders from outside” and would remain until elections
in September.
Liberals Surprised and Outraged by Sale of Huffington Post to AOL Once again,
liberals and Democrats demonstrate they are clueless about how
establishment politics work in America. Once again, they display their
ignorance of the false right-left paradigm that controls the corporate media
political realm, including the supposedly sterling liberal reputation of the
Huffington Post.
Video: Alex Jones Exposes DHS Terror Fraud After making repeated attempts
over several days, Alex Jones demonstrates to his listeners that the DHS
reported terrorism threats and citizen spy programs are nothing more than
Pavlovian boxes of control.
Faith and Fear: Christians fleeing Iraq victims of US invasion? Violence and
intimidation has forced hundreds of thousands of Iraqi Christians to flee
their homeland. Experts view them as one of the biggest victims of the 2003
U.S.-led invasion, with the minority group a continued target of extremists.
Sallai Meridor: Israel's fear (Washington Post) [ Come on! Wake up! Illegal nuke
totin’, war crimes nation israel’s fears … p l e a s e, spare me the pro-israeli
b*** s*** ! What israel fears is a projection of their own ill-founded motives
and actions for which all norms, rules, laws governing civilized behavior are
suspended for expedience at the least, and blood-thirst that some posit as a
remnant of their historic role as Christ-killers (with roman ‘juice’). Isn’t it
time, in these desperate times for america, to put america’s, not israel’s
interests, first. Who cares what israel fears … In 1948, U.S. Secretary of
Defense James Forrestal, an opponent of the creation of a Jewish state in
Palestine, warned that, even though failure to go along with the Zionists
might cost President Truman the states of New York, Pennsylvania, and
California, it was about time that somebody should pay some consideration
to whether we might not lose the United States….. Mr. Forrestal was
absolutely correct! Isn’t that exactly what’s happened to defacto bankrupt
america in intractable decline. TIME TO REVOKE AND NULLIFY THE
BALFOUR DECLARATION AND ABROGATE THE CREATION OF THE
NATION STATE OF ISRAEL IN THE INTERESTS OF FAIRNESS, JUSTICE,
PEACE AND PROSPECTIVE PROSPERITY FOR THIS WORLD! Israel wary
of transition in Egypt, concerned about regional stability (Washington Post) [
Who cares what the paranoid, war criminal, illegal nuke totin’, war criminal
israelis are wary of. This country has gone down the tubes cow-towing to
the paranoid, self-interested concerns of the psycho / sociopathic zionist
israelis who are forever projecting their own pathological motives to every
turn of history while ignoring their own culpability in producing the very
outcomes they purportedly seek to avoid. War, conflict, greed, bloodshed is
the historically based israeli way. ] A resurgent Syria alarms u.s., israel
(Washington Post) [ Tell me! What doesn’t alarm these two paranoid, zionist
neo-nazi regimes of oppression, suppression, aggression, and regression. If
they were individuals, they’d undoubtedly be diagnosed as psychopaths,
sociopaths totally ignorant of the rights of others, laws, civilized behavior as
israel pads her illegal nuke arsenals with american supplied weaponry /
support while expecting all other nations to ‘role over and die’. Bipolar /
manic / depressive, the ups and downs are increasingly difficult for even
americans to follow. Obssessive / compulsive thy names are zionist israel /
america. Projection / displacement regarding their own illegal acts, war
crimes, etc.; what they distinguished from what they do … dissociative
identity disorder, dissociative fugue? Yes … the u.s. and israel are the
world’s lunatics, sorely in need of therapy! ] Syria's fresh interference in
Lebanon and its increasingly sophisticated weapons shipments to Hezbollah
have alarm officials and prompt Israel's military to consider striking a Syrian
weapons depot.
Spreading unrest raises pressure on Mubarak (Washington Post) An array of new

developments turned against President Hosni Mubarak on Wednesday as
Egypt moved closer to a full rupture between its autocratic government and
a growing popular rebellion. [ Do not talk about ruptures in the presence of
Pharhosni Mubarak he chides the Washington Post! After all, at 82 years old
and 30 years in power, hernias are known to quite easily happen… Previous:
Free elections still distant prospect for Egypt Activists express doubts
about feasibility of September ballot (Washington Post) ["I'm shocked by
what the Americans say - that Mubarak must stay as president so we can
prepare for new elections,'' said Negad El Borai, a human rights advocate
and lawyer in Cairo. "Mubarak must leave, and then we can talk." … Truth be
told, I’m not shocked. Indeed, though this is only marginally what america /
israel wanted, this will stick to america / israel like glue; that proverbial
albatross; that lose, lose scenario for america in the region. Previous: Egypt
protests continue as Mubarak's government offers concessions
(Washington Post) [ Come on! Let not all of us join america’s / israel’s, et
als, and mubarak’s delusions. After all, here’s an 82 year old tyrant, in
power for 30 years, yet in some parallel universe appears to think he’s
calling the shots. Other than literal and quite foolish shots against
Drudgereport: Soros: 'The main stumbling block is Israel'...
Egyptian protesters plan new push Government detains foreigners, says it's
willing to open talks (Washington Post) [ Open talks? ‘bout what? Building a
pyramid in mubarak’s honor before stepping down? He’s done … finito … burnt
as an over-micro-waved burrito! The following from the Post is indeed the straw
that broke the riders with whips he sent on camels’ and horses’ backs! ‘Wants to
die in Egypt? How touching, or the reality, he’s just plain touched as in totally
‘out of it’. ‘…In what the U.S. State Department called a "concerted campaign to
intimidate," several dozen journalists were rounded up by security forces and
detained for hours, along with foreigners working as teachers, engineers and
human rights researchers. Across the city, angry bands of supporters of
President Hosni Mubarak also beat journalists; several reporters said that they
were threatened with death…’ ] Cairo seeks to shift blame for clashes by
rounding up journalists; U.S. worries renewed protests could spark more
violence from Mubarak supporters. Demonstrations in Egypt take bloody turn In
Cairo square, Mubarak backers confront anti-government crowds (Washington
Post) [ Not too difficult for desperate and done mubarak to contrive: Mubarak
Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His
Thugs to Stir Up Chaos (Infowars.com) In order to justify staying in power until
elections are held in September, President Mubarak said on tv that the people had
to choose between him and “chaos”. ] The coordinated nature of day's events
suggested that Mubarak's supporters were determined to show, as he had
warned, that the country faced a "choice between chaos and stability."
[ Previous: Mubarak's pledge seen as not enough Egyptian president plans to
stay in office to transfer power (Washington Post) [ Let me put it another way:
Mubarak is as done as an over-cooked tamale … He seems to be stalling for time
and even in his age impaired mind certainly knows his position is untenable,
unsustainable, and even more irrational as each second passes. There is a
possibility that he’s using same to move money / treasure for himself and others,
literally as well, buying time. See infra … Previous: Mubarak seeks dialogue,
shows no sign of relenting Demonstrators call for massive protest but lack
leadership (Washington Post) [ He relented when he resorted to media / internet
blackout. Indeed, this lack of sign thing is a testament to how far from reality 30
years has taken him, not to mention the other 52 years that have taken their toll
on his cognitive processes. Whether it is plaques ‘on the brain’ or outright
senility, that he is so disengaged from the events unfolding around him, one may
only wonder how he lasted this long. Nor did his choice of cia standin / shill, new
VP Suleiman enhance his now untenable position which leaves him as ‘done as a
burnt enchilada’. Kissinger on Egypt unrest – “This is only the first scene of the
first act of a drama that is to be played out” [ The import of this so-called
interview, and it is here that I part company with alex jones, et als (who by the
way, censored me for this very thesis, which puts him and his at the top of my
hypocrite list), is that the so-called elite have orchestrated these events and ‘are
in control’. First, there are no elites in this world; you can’t derive elites from
apes, notochordates, and initially single celled organisms. Second, almost by
definition and certainly by history, there are no elites in america even if you were
to accept the first proposition (though true) as untrue. What you do have, in this
world and america particularly (with few exceptions as I’ve discussed elsewhere /
comments / my website), are inherent criminals and mentally ill people of varying
degrees of unscrupulousness and insanity who do commit crimes, both small
and large, to further their interests or fortunes (sociopaths / psychopaths). The
’so-called alpha-dogs’ of the human species at most, but still incompetent
vegetables who, if you look at anything they touch (to use a term term of such
incompetent vegetables as historically pertains to their role in the mideast – and
generally the state of the world) it invariably goes ‘pear shaped’ (english term).
What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what
does he get paid for? No! The fact is, they have absolutely no idea how this
unfolds and as with most of their lives, they will predictably choose the most
sordid, despicable, and diabolical course at every turn because … that is their
inherently criminal, mentally ill / unstable nature to do so. ]
that would allow Mubarak to remain as a figure head until new elections.
} ]
] After decades of repression, democracy advocates say it could take many
months -- if not years -- to lay groundwork for open and credible elections.
]
Congress must raise debt ceiling, Bernanke warns (Washington Post) [ Riiiiight,
bunglo ben … this from the same ben who forecasted ‘no-recession’. The
fact is, ‘helicopter ben shalom bernanke’ hasn’t the slightest idea what he’s
doing and is the ‘poster boy’, epitome of that incompetent ivy league
vegetable who’s long on rhetoric and cv but quite short on real results. The
only thing that has been true as per his stated intentions, is an inflated new
wall street bubble to and for the benefit of the wall street frauds. ‘Have
printing press, will travel’ … that soldier of his and their fortune is a man
called ‘Palawallstreet’ aka ben shalom bernanke … which temporary
obfuscation with money that’s not really there in real terms means that
beyond the temporary look good/feel good, disaster straight ahead.
Bernanke's Worst Nightmare Is This Man's Boxes: Caroline Baum
BusinessWeek Feb. 10 (Bloomberg) -- Ben Bernanke arrived at his office a
week ago and came face to face with his worst nightmare. Staring out at the
Federal Reserve chairman from page C1 of the Feb. 3 edition of the Wall
Street Journal was a photo ... The Associated Press Video: Republicans
Grill Bernanke Over Inflation, Debt Paul calls Fed's Bernanke "cocky" in
House hearing Reuters [ Yeah … Come on! … The incompetent ‘no-
recession helicopter ben’ has nothing whatsoever to be cocky about; he’s
clueless as to what to do; satisfied to be helping the frauds on wall street;
but in the end, this will end … quite badly! ] Drudgereport:White House to
Slash Heating Program for Poor…but still no pros of massive frauds on wall
street which fines and disgorgement of would yield huge amounts to cover
spending... [ Howard Davidowitz on the Economy: "Here Are the Numbers ...
WE'RE BROKE!" 11-25-10 ‘The U.S. economy "is a complete disaster,"
Howard Davidowitz declared here in July, the most recent in a string of dire
@atask or email him at altask@yahoo.com’ Timid Tuesday: Is it Safe?
FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
wreak if it refrains from raising the government's debt limit this spring.
Rep. Lee (R-N.Y.) resigns after Craigslist incident (Washington Post) [ I am truly
astounded; and, I say that without even a tinge of sarcasm. Where is the corpus
dilicti here. That he is a fool and somewhat a dummy, if such is the standard for
resignation, then all of capital hill should be tendering their resignations en
masse. After all, aside from the inherent conflict, and particularly in light of a
financial / fiscal / economic disaster in large part of their own making and
compounding by failing to prosecute the perps and instead accommodate their
crimes, ie., FASB rule change, etc., does not the consistent though undeserved
raises they give themselves constitute of sorts a defalcation of duty,
responsibility, and trust. Unlike congress, indeed all the pervasively corrupt and
incompetent branches of u.s. government in their day-to-day activities / course of
business, though tasteless, sleazy, etc., this so-called incident is without a
corpus dilicti. It kind of reminds me of that scene in ‘Road to Perdition’ when mob
kingpin Newman responds (in a somewhat incredulous, come on, who you
kidding way) to former footsoldier Hanks by reminding him that they’re all
murderers (in the room-including Hanks).] Move came after a Web site reported
that the married congressman had e-mailed a shirtless image of himself to a
woman he met online.
CIA's dilemma in Egypt (Washington Post) [ Come on! How does anyone take
these ‘muck-ups’ seriously … As a purported journalist, Mr. Ignatius should know
better. What distracts the agency is self-interest and greed … yes, greed for
themselves, theirs, and a raison d’etre that assures their continued funding (oh
how they miss the cold war, hot ones will have to do) on top of their private so-
called ‘black ops’. They’re wrong or absent without leave (awol) on major events
purportedly within their bailiwick; ie., mideast, israel, ‘wmd’s in Iraq’, 9-11, Egypt,
etc.; and, as well, are fallacious in their policy direction, directives, etc.. I mean,
beyond their nefarious undertakings, they look more and more like Maxwell
Smarts (‘Get Smart’) minus ‘99’ every day. Expanded Free Trade: Exporting Jobs [
When you come right down to it, this has been america’s most significant export.
Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton
(clinton couldn’t have survived without them) by way of NAFTA as the greatest
thing since sliced bread was indeed in no uncertain terms condemned and
warned against by Perot, a man of honor who, unlike his opponents, could not be
bought, which is the reason, in pervasively corrupt america, he could never have
been elected. Interestingly, you may have noticed the good (but not great, other
than the spotlight on pervasive bribery including judges, police, politicians, etc.,
being far too light) the film ‘The Untouchables’ getting a wide re-airing of late,
purporting to be a significant part of american folklore / history / culture.
However, the reality is that in america, and certainly today, the real story with
impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken
man; bankrupt, unable to even win election to the mayoralty of his then current
hometown. He was incorruptible; and hence, in the real america, unelectable at
the least if not also all but unemployable (he and his are among those few genetic
anomalies in america as I’ve previously alluded to. How far america has fallen
from even false perception! Pervasively corrupt, meaningfully lawless america
can’t even fake it anymore. At CIA, mistakes by officers are often overlooked
(Washington Post) [ Duuuh! I want to know of even one thing that’s not
overlooked concerning those incompetent mental cases at the cia; from
assassinations, to illegal drug dealing, to illegal arms sales, to corruption, to
disinformation, etc., to america’s and the world’s (ie., those WMD’s in Iraq, etc.)
substantial detriment. See, for example,
) ]:


# 3 Germany: 6,507,394

Trends ]

] ] Ignatius: Its fight against al-Qaeda has distracted the agency.
Rumors Cause Some Selling: Dave's Daily [But more than a rumor, it is a market
top] ‘A rumor making the rounds, later denied, was hedge fund kingpin Paul
Tudor Jones was calling a market top. That caused a bout of selling which
naturally increased volume from those weak handed investors. Nevertheless,
PTJ's PR people stated: "Phooey" and that was that. There may also be some
nervousness over current and impending arrests for insider trading. The bigger
news is the divergence of emerging markets from previous "got to own" status to
just the opposite as some $10 billion has come out of linked ETFs and markets
are selling-off. With rumor denials confirmed meant a sharp late day recovery
rally seemed logical as dip buyers are still ever present. The obligatory "buy
program express" hit the tape late to keep losses to a minimum while the clear
market leader DJIA (window dressing for the tourists) eked-out a slight gain. The
Fed had tossed in another round of POMO and late in the day trading desks have
to do "something" with it. Earnings continued to roll-in with impressive results.
Coke came in with solid earnings that met expectations for example. Economic
data was slim with more impressive stuff for Thursday. Then there was the much
discussed ("what does it mean" news) that the German Bourse and NYSE will
merge. The world gets smaller and perhaps more efficient while New York and
perhaps Chicago lose some prestige and business…’
Cisco And Akamai Are Getting Crushed After Hours, So NASDAQ Futures Are
Diving Weisenthal, On Wednesday February 9, 2011, 4:59 pm EST ‘It's going to
be a pretty ugly day tomorrow for big tech. At least if the action right now is
indicative.Two big names are diving.The first is Cisco, which is down 7% after
hours on pretty meh earnings. The number was fine, but on the call the company
has revealed margin pressure, and this is basically looking like a repeat of last
quarter when the stock tanked after earnings.The other is Akamai, which is also
down hard, on a revenue outlook that's less than impressive. The revenue
outlook was well below expectations.With these two players diving, it's no
surprise that NASDAQ-100 futures are getting whacked after hours, indicating a
slide of more than 0.5%.Tech, of course, has been particularly hot of late.’
Is the Market Headed for a Sell-Off? Zaky [ Yes … I agree, except that
fundamentally the longer term prospects are even worse than his bearish outlook
suggests (don’t forget the debasement of the dollar, manipulation, and spending /
printing money the nation doesn’t have in real terms behind this manipulated
uptick) and summarized as follows: ‘I suspect that this rally is on its very last
legs. We should see a very healthy 10% or so correction within the next 1-2 week
period ... This market is headed for a sell-off. ]
2011 Update: Another Lost Decade for Stocks - Are You Prepared? [ I agree that
this is but a (manipulated) bull cycle in a secular bear market with substantially
worse to come! ]Kopas ‘In February 2010, we published an article on Seeking
Alpha entitled “Another Lost Decade for Stocks - Are You Prepared?,” wherein
we argued that the year 2000 marked a secular (long-term) peak for U.S. stocks. A
secular bear market is formed when a series of business cycles are linked
together, establishing an extended period of stock market under-performance.
Our objective here is to bring you up-to-date on the progress of this secular bear
market and help you prepare for the next ten years…’
How to Squeeze the Most Out of a Late-Stage Rally Maierhofer ‘Something curious
happened the last two months. In December, the investment community turned
extremely bullish on stocks. By some measures optimism shot through the roof and
eclipsed some of the readings seen at the 2007 all-time highs.Such extremes usually
lead to some sort of a correction. In October 2007 they were followed by a 50%+
decline, in April 2010 by a near 20% decline. But not in December, prices kept climbing
and curiously, sentiment starting fading away from the December extremes.In general,
that is good news for anyone owning stocks, but sentiment is still elevated to a degree
where being long stocks is quite risky. Testament is the fear barometer - the VIX
(Chicago Options: ^VIX) fell to a 3 year low yesterday.
Technical Cracks
In addition to a constant flow of bad news domestically and abroad, some technical
indicators are flashing red flags.Since the last mini sell-off on January 28 (when Egypt
made front-page news), volume has dropped precipitously. Over 1.3 billion shares were
traded on the NYSE when the S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), and Nasdaq
(Nasdaq: ÎXIC) dropped about 2% on January 28.The last five trading days saw
volume of less than 1 billion shares (see chart below). According to technical analysis
101, low volume up days and high volume down days isn't exactly bullish. [chart] A look
at the percentage of stocks trading above their 50-day moving average also conveys
weakness. Five weeks ago 80% of stocks trading on the NYSE were above their
respective 50-day MA. Since then the S&P (NYSEArca: IVV - News) has tagged on 5%,
but the percentage of stocks above their 50-day MA has fallen to 75%.
2011 Performance - 52%?
Year-to-date the S&P 500 is up 5% - that's 5% in five weeks or 1% a week. At this pace
the S&P is on course to gain 52% in 2011. Is that realistic?At some point in the not too
distant future, traders are likely to look at the year-to-date performance and say, that's
too good to be true!We've seen such 'too good to be true moments' in January and April
2010. Below is a small sampling of headlines that appeared within a day or two of the
April 2010 peak, and days before the May 'Flash Crash.'
Bloomberg: 'U.S. stocks cheapest since 1990'
Wall Street Journal: Consumer mojo lifts profits'
Reuters: 'Greece contagion fears unfounded'
Yahoo Tech Ticker: 'S&P could hit 3000 by 2020'
Newsweek: 'America is back - The remarkable tale of an economic turnaround'
In contrast to that warm and fuzzy feeling, the ETF Profit Strategy Newsletter warned on
April 16: 'The message conveyed by the composite bullishness is unmistakably bearish.
The pieces are in place for a major decline.'The Fed-funded money flow has kept a
constant bid beneath prices, but the common expectation that this pre-Presidential
election year is going to be gang busters, particularly after a strong January, is reason
for suspicion.
Safety Nets
The easiest way to guard against an unwanted decline is simply to sell. This locks in
profits but often comes with the annoying side effect of having to watch stocks go up,
while you are sitting on the sideline.Before buying or selling anything, investors should
ask themselves whether they prefer to be on the sideline while stocks go up, or be fully
invested when stocks go down. One of the two scenarios is bound to happen, at least
temporarily.If you are not ready to cut loose from your stocks, you may consider buying
put protection. $420 buys you the right to sell SPY at 132 anytime before May 20, 2011.
If you want to spend less money for an earlier expiration date, the April put sells for
$320, and the March put for $230. Like an insurance policy, this gives you piece of mind
for a small premium.
Eagle Eye
As per the VIX, complacency is ever present right now, but that's exactly the time you
want to be on guard. Like a thief, the market strikes when least expected.An effective
way to limit risk and maximize profits is to set sell stops at major support levels. The
market often tests support before resuming its uptrend. If support fails, watch out.Back
in November, the ETF Profit Strategy Newsletter highlighted the pivotal role of the 1,170
level. The S&P tested - but never broke below - that level five times before continuing its
diabolical up trend.Where is today's key support level? As per the ETF Profit Strategy
Newsletter a failed low-risk entry would be the sign for a trend reversal. What is a failed
low-risk entry? This signal is based on the percentR indicator, a measure of relative
strength.In a strong market, particularly after a long up trend, percentR will hover above
80. A powerful enough decline can result in a drop below 80. Once percentR closes
below 80 it will trigger a bullish low risk entry.It triggered such low-risk entries on
January 19 and 28. It would have taken another down day and a close below that day's
low, to get a failed low-risk entry. In January, it would have taken a close below 1,279
and 1,275 to confirm a low-risk entry. It never happened.Since stocks have gained
about 4% since the last low-risk entry, it's likely that the next low-risk entry will occur at
higher prices. To pinpoint this major support now would be speculation. It's for sure,
though, that no bear market will start without a failed low-risk entry…’
Stocks End Mostly Lower Midnight Trader ‘4:32 PM, Feb 9, 2011 --
• NYSE down 35.86 (-0.4%) to 8,343.99

• DJIA up 6.74 (+0.06%) to 12,240
• S&P 500 down 3.69 (-0.3%) to 1,321
• Nasdaq down 7.98 (-0.3%) to 2,789
GLOBAL SENTIMENT

• FTSE down 0.64%
UPSIDE MOVERS
(+) TTWO easily beats with results.

(+) DIS beats with results.
(+) TSTC CEO buying shares.
(+) RL beats with results.
(+) CHBT beats with results.
(+) CHKP hikes buyback program.
(+) BIDU upgraded.
(+) PLAB guides higher.
DOWNSIDE MOVERS
(-) JOE exploring alternatives, including possible sale.

(-) FSLR inks new deal.
(-) WFC continues drop seen after announcing CFO retirement.
(-) BCDS misses with results, outlook.
(-) SNY warns for declining profit.
MARKET DIRECTION
Stock averages end narrowly mixed after spending a soggy session mostly in
negative territory. Still, the blue-chip Dow's late-day spurt lands it barely in
positive territory, just enough to extend its win streak to eight sessions. Strong
consumer names such as Coca-Cola (KO) and Disney (DIS) gained, limiting the
Dow's drop, after upbeat earnings reports. Wall Street is cooling off a bit as
averages hit fresh multi-year highs earlier in the week. Major benchmarks are up
more than 5% so far this year. Stocks also slipped as investors digested Federal
Reserve Board Chairman Ben Bernanke's continuing testimony on the economic
outlook and monetary and fiscal policy to the House Budget Committee.
Speaking before the committee, Bernanke said that last month's jobless rate
decline to 9% from 9.8% offers some reason for optimism, but said it would likely
be several years before the unemployment rate returns to more normal levels,
according to MarketWatch. Bernake said, despite economic improvements, the
central bank will continue with its $600 billion stimulus plan. There were no major
economic reports out today.
In company news:
Visa (V) was down on plans to buy PlaySpan, a privately held company whose
payments platform handles transactions for digital goods in online games, digital
media and social networks globally. According to the company, the acquisition
will complement its 2010 CyberSource acquisition and extend its capabilities into
one of the fastest-growing segments of eCommerce - digital and mobile
commerce.
eBay (EBAY) was down following a Bloomberg report that the online auction
company is planning to lay out a three-year plan tomorrow to expand its PayPal
unit business and repel threats from Google (GOOG) and Apple (AAPL). PayPal is
eBay's fastest-growing business. The service is set to generate more sales than
eBay's e-commerce market place, the report said.
Teva Pharmaceuticals (TEVA) shares were lower despite positive drug trial news.
Teva said results from a Phase III study of QNAZE HFA, its nasal aerosol
corticosteroid in development to treat perennial allergic rhinitis (PAR) and
seasonal allergic rhinitis, achieved all primary and secondary efficacy endpoints,
demonstrating significantly greater relief of nasal symptoms, including runny
nose, nasal congestion, nasal itching and sneezing, compared with placebo.
Goldman Sachs (GS) shares were down after Goldman Chief Financial Officer
David Viniar said the company bought too many hard-to-sell assets before the
financial crisis in 2008, Bloomberg reported. The comments came from a
conference in Miami hosted by Credit Suisse. Viniar said that Goldman was
"buying more illiquid assets than we probably should have."
French drug maker Sanofi-Aventis (SNY) was down following news that ongoing
efforts to win over its takeover target U.S biotech Genzyme (GENZ) has prompted
the firm to expect an earnings decline this year of between 5% and 10%. The
company said it expects generic competition to accelerate next year and predicts
a 5% to 10% decline in 2011 business earnings per share. The forecast does not
assume a return of generic competition to cancer treatment Eloxatin in the U.S.,
or any benefit from the possible acquisition of Genzyme, the company said in its
only reference to Genzyme in the quarterly earnings statement.
Investors are awaiting results from networking giant Cisco Systems (CSCO) due
after the close today. Analysts are looking for Cisco to report EPS of $0.35 per
share. In particular, analysts will be looking to see if CEO John Chambers joins
other executives who are becoming more upbeat about the global economy.
Royal Dutch Shell (RDS.A) and BP (BP) are planning to close and sell refineries in
the United States and Germany due to declining demand for fuels like gasoline,
Bloomberg reports.
In earnings news:
--Alpha Natural Resources (ANR) reports Q4 EPS of $0.27, vs. Street estimates of
$0.24 per share. Revenue was $993 million, better than expectations of $970
million.
--Coca-Cola (KO) reports Q4 adjusted EPS of $0.72, up 9% from the year-ago
quarter and in line with the Thomson Reuters mean analyst estimate. Revenue of
$10.5 billion tops the $7.5 billion seen a year ago. The Street expected $9.96
billion.
--Polo Ralph Lauren (RL) posted net income of $168 million, or $1.72 per diluted
share, for the third quarter of fiscal 2011, versus net income of $111 million, or
$1.10 per diluted share, for the same period in fiscal 2010. The Street view was
$1.29 per share in earnings.’
Expanded Free Trade: Exporting Jobs [ When you come right down to it, this has
been america’s most significant export. Indeed, this irrevocable structural shift,
hailed by cia men hw bush and clinton (clinton couldn’t have survived without
them) by way of NAFTA as the greatest thing since sliced bread was indeed in no
uncertain terms condemned and warned against by Perot, a man of honor who,
unlike his opponents, could not be bought, which is the reason, in pervasively
corrupt america, he could never have been elected. Interestingly, you may have
noticed the good (but not great, other than the spotlight on pervasive bribery
including judges, police, politicians, etc., being far too light) the film ‘The
Untouchables’ getting a wide re-airing of late, purporting to be a significant part
of american folklore / history / culture. However, the reality is that in america, and
certainly today, the real story with impact is that of ‘The Touchables’. The reality
is that Elliot Ness died a broken man; bankrupt, unable to even win election to the
) ]:


# 3 Germany: 6,507,394

Trends ]

] Lounsbury ‘In January Steven Hansen observed that, through November, the
trade deficit for manufactured goods was the equivalent of 1.3 million workers
earning the median manufacturing wage in the U.S. Well, the trade deficit has
been with us in a major way for nearly two decades. I am reminded of the 1992
presidential campaign where one of the three candidates, Ross Perot, argued
against the adoption of NAFTA, The North American Free Trade Agreement. The
other two candidates supported NAFTA. Perot is famous for his statement that a
free trade agreement that was not a two way street would create a “giant sucking
sound” of jobs going south to the cheap labor markets of Mexico. Both of Perot’s
opponents (George H.W. Bush and Bill Clinton) argued that NAFTA would create
jobs in the U.S. because of business expansion.However, the goods balance of
trade for the U.S. with Mexico has been negative and steadily growing over the
years. In 2010 it amounted to $61.6 billion, which was 9.5% of the total goods
trade deficit last year.
So Perot has been vindicated in his opinion; expanded free trade has not been
accompanied by an increase in jobs in the U.S. relative to the vast numbers of
jobs created in the rest of the world as NAFTA became just a stepping stone on
the pathway to global commerce.
Veronique de Rugy has produced a graph which shows how manufacturing

output and manufacturing employment have varied over the years 1975 – 2010.
[chart]
The giant sucking sound actually started in 1980 as manufacturing employment

peaked in 1979. The decline in employment in 1980-83 can be associated with the
double recessions of that time period, which was also evidenced in the drop in
manufacturing output. But when the recovery took hold, manufacturing resumed
strong growth but employment gradually declined from 1984 to 2000, after which
the decline accelerated.
Now, to be fair, not all the employment decline was due to increased employment
overseas. Trade deficits remained fairly benign by 21st century standards.
Employment declined significantly because of productivity improvements as
more and more automation replaced manual labor. However, some of the decline
was undoubtedly due to increased importation of goods to the U.S.
The rapid growth in the trade deficit for goods began in the early 1990s and we
will start our detailed examination of the data with 1992, in deference to Mr. Perot.
Growth of the Trade Deficit for Goods
The first two tables show pertinent annual data. The table on the left shows the
trade balance for goods. The table on the right shows the value of U.S.
manufactured goods and manufacturing payroll employment.
[chart]
The sources for the data used in these tables are:
• Trade Balance: Goods, Balance of Payments Basis (BOPGTB)

• MANEMP Non-Farms Payrolls Manufacturing
• Total Value of Manufactured Products Federal Reserve Statistical Release
G.17, Industrial Production and Capacity Utilization: Table 9
Productivity Improvement
In 19 years the value of U.S. manufacturing output has risen by 58% while
manufacturing employment has declined by 31%. It only took 2.5 manufacturing
employees in 2010 to produce what 5.8 employees produced in 1992. The
dramatic improvement in labor productivity (and loss of jobs) is emphasized by
the following graph.
[chart]
Jobs Equivalent to Manufactured Goods Trade Deficit
One cannot say that there is a U.S. jobs loss exactly equal to the trade deficit for
manufactured goods. Here are some reasons:
• The goods trade deficit may have led to a more favorable balance of
exchange in other areas, for example in export of services. This would have
produced more U.S. service jobs.
• The trade balance deficit may have produced foreign investment in the U.S.
that would not have otherwise occurred, creating domestic jobs.
• The trade deficit may have actually increase demand for exports of goods
still manufactured in the U.S.
• Foreign employment may have been created for U.S. citizens that would
not otherwise have occurred.
• If the manufacturing had remained in the U.S. productivity gains might
have been even greater than have been experienced.
However, it is not unreasonable to make the assumption that a significant portion

of the manufacturing jobs equivalent to the trade deficit would have been created
in the U.S.
The U.S. manufacturing jobs equivalence of the goods trade deficit is shown for
each of the years starting with 1992 in the following table, along with the
cumulative total. Hereafter we refer to the jobs equivalence as “jobs exported”.
[chart]
The jobs exported each year are shown in the following graph.
[chart]
The following graph shows that there have been a cumulative total of almost 29
million jobs exported over the past 19 years.
[chart]
Unemployment Today and the Counterfactual Labor Shortage
The total number of people employed today according to the latest BLS (Bureau
of Labor Statistics) data is 139.3 million. If just half of the exported jobs were
retained in the U.S., there would be about 153 million employed. The current
civilian labor force is only 153 million so there would be no slack in the labor
force at all. However, the labor participation rate has fallen from 67% in 2000-01 to
64.2% today. If the participation rate returned to 67% the civilian labor force
would be 160 million. With 153 million employed the unemployment rate would be
4.4% and we would be complaining of labor shortages.
The Sweet Spot
If only some, even less than half, of the manufacturing that has been outsourced
had been retained in the U.S., it is likely that there would still be an emerging
market boom, but there would not be the severe structural unemployment
problem that exists today in the U.S. It seems, looking at these numbers, that
where we are is not the result of doing a fundamentally bad thing. It could be
argued that it is actually the result of taking a good thing too far. It seems we
missed the sweet spot and simply botched a beautiful shot.
Free Trade is a very good thing, but free trade taken too far is destructive. Hard
data shows why.
Related Article
USA Trade Deficit Exports 1.3 million Jobs by Steven Hansen’
Ron Paul holds first hearing to scrutinize Fed Raw Story | Texas Republican Rep.
Ron Paul on Wednesday held his first official hearing to examine the policies of
the Federal Reserve on unemployment and economic growth.
Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks
Seeking Alpha | Bernanke is printing money and funneling it into the Wall Street
banks for one reason and one reason only.
Why Small Business Isn’t Hiring And Won’t Be Hiring Charles Hugh Smith | Small
business can’t afford to believe in myths and fantasies. They are dealing with the
harsh reality of adapt or die.
Gold at EUR1,000/oz – Strong Physical Demand Leading To Illiquid Conditions

With the physical gold market remaining very small when compared to the
futures and paper gold market (futures, CFDs etc) there are increasing
concerns of illiquidity due to the scale of demand and lack of supply.
Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street
Banks We’ve been over the numerous BS excuses that US Dollar destroyer
extraordinaire Ben Bernanke has made for QE enough times that today I’d
rather simply focus on the REAL reason he continues to funnel TRILLIONS
of Dollars into the Wall Street Banks.
ABC Consumer Comfort Index Plunges To Year Lows On Surging Gas Prices
Once again the ABC Consumer Comfort index indicates that it is leaps and
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Shocking Video Of Howard Dean Declaring That It Is The Job Of The Government
To Redistribute Our Wealth In the shocking video you are about to watch,
Howard Dean declares that it is the job of the government to redistribute our
wealth.
Bernanke's Worst Nightmare Is This Man's Boxes: Caroline Baum BusinessWeek

Feb. 10 (Bloomberg) -- Ben Bernanke arrived at his office a week ago and came
face to face with his worst nightmare. Staring out at the Federal Reserve
chairman from page C1 of the Feb. 3 edition of the Wall Street Journal was a
photo ... The Associated Press Video: Republicans Grill Bernanke Over Inflation,
Debt Paul calls Fed's Bernanke "cocky" in House hearing Reuters [ Yeah …
Come on! … The incompetent ‘no-recession helicopter ben’ has nothing
whatsoever to be cocky about; he’s clueless as to what to do; satisfied to be
helping the frauds on wall street; but in the end, this will end … quite badly! ]
(2-9-11) Dow 12,239 +6 Nasdaq 2,789 -8 S&P 500 1,320 -4 [CLOSE- OIL
year 2009) PLATINUM $1,845 (+56% for year 2009) / DOLLAR= .72 EURO, 82
YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/
http://www.federalreserve.gov/releases/h15/update 10 YR NOTE YIELD 3.65%
…..… AP Business Highlights ...Yahoo Market Update...
T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies - Domestic /
International This Is a Secular Bear Market and The End of Buy and
Hold … and Hope MARKET MANIPULATION AND HOW THE LATEST BUBBLE-
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On Why the Stock Market Has Rallied 3-9-10 [archived website file] Risks Lurk
for ETF Investors The bull market that never was/were beyond wall street b.s.
when measured in gold Property Values Projected to Fall 12% in 2010 Jan
31, 2010 The Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31,
2010 01-13-10 Forecast for 2010 from Seeking Alpha Contributor THE
COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer (01-15-10) 11
Clear Signs Economy Sinking Economic Black Hole 1-22-10: 20 Reasons Why
The U.S. Economy Is Dying And Is Simply Not Going To Recover Current
Economic / Fiscal Charts Trendsresearch.com forecast for 2009 1-7-10
Crash is coming! ‘WORST ECONOMIC COLLAPSE EVER’ Must Read
Economic / Financial Data This Depression is just beginning The
coming depression… thecomingdepression.net MUST READ: JEREMY
GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on the S&P) by TPC
The Next Wave of Collapse is Coming Sooner than you think Sliding Back
Into the Great Depression ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL /
TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!
National / World
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Jones proves it’s impossible to report terror threats because the
government has no interest in preventing terror.
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questioning a new Homeland Security campaign called “If you see
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As Government Prepares to Ban Lightbulbs, Americans Stock Up Paul Joseph

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filled, illness-causing CFLs by 2014 unless Ron Paul can lead successful
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TSA Blocks Airports From Hiring Private Security Back in January there was a
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scanners. Airport managers said they are opposed to the federal
government telling them how to run security.
Leftists Attack Arianna Huffington For Selling Out To “Megacorp” AOL “She
exploited our idealism and let us labor under the illusion that the Huffington
Post was different, independent and leftist. Now she’s cashed in and three
thousand indie bloggers find themselves working for a megacorp.”
Obamacare Advocate: Make Refusniks Wear Gold Stickers A leading advocate of

Obamacare told NPR yesterday that Americans who refuse to pay for health
care should be forced to wear gold stickers on their foreheads and refused
emergency hospital treatment, in a chilling throwback to how Jews were
persecuted by being made to wear yellow stars by the Nazis during the
occupation of Europe.
Blago lawyers claim tape of phone call with Rahm Emanuel has disappeared from
evidence NBC Chicago | Attorneys for former governor Rod Blagojevich have
asked a federal judge to order prosecutors to produce two phone calls his
lawyers say are mysteriously missing from evidence.
Man says ex-CIA agent Posada gave him explosives for hotel bombing Raw Story
| Otto Rene Rodriguez said that he was given C-4 explosives and $2,000 by Luis
Posada Carriles to enable the bombing at Havana’s Melia Cohiba hotel on Aug. 3,
1997.
‘Welfare Bum’ JP Morgan: We Need Gold! By making the announcement, J.P.

Morgan is effectively saying gold is as rock solid an investment as triple-A
rated Treasurys, adding to a movement that places gold at the top tier of
asset classes.
Alex Jones: Feds Admit Emergency Takeover System Commissioners voted last
week to require television and radio stations, cable systems and satellite TV
providers to participate in a test that would have them receive and transmit a
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China police stop spread of Egypt news: activist Police in southwest China have
barred activists from distributing leaflets about anti-government protests in
Egypt and Tunisia, deeming the news too sensitive, one dissident said
Wednesday.
Drudgereport: Oil hits $101 again...

Paul Ryan confronts over Fed's purchases of debt...
Soaring debt pushes Portugal towards bailout...
House GOP Targets Dozens of Gov't Programs...
CUT, CUT, CUT...
White House to Slash Heating Program for Poor…but still no pros of massive
frauds on wall street which fines and disgorgement of would yield huge amounts
to cover spending... [ Howard Davidowitz on the Economy: "Here Are the
Numbers ... WE'RE BROKE!" 11-25-10 ‘The U.S. economy "is a complete
disaster," Howard Davidowitz declared here in July, the most recent in a string of
dire predictions from Tech Ticker's most entertaining guest.On the eve of
Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in
the towel given recent signs of economic revival. Are you kidding me? "Here are
the numbers...we're broke," Davidowitz declares, noting the U.S. government
goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual
deficits for the next decade. "In other words, we're bankrupt."As with the
economy, Davidowitz is unwaveringly consistent in his views on President
Obama, calling him "deranged, dysfunctional and discredited."Results of the
midterm election show "the people of this country think we are in a catastrophe,"
he says. "I'm with them."Check the accompanying video for more of Howard's
unfettered opinions and stay tuned for additional clips from this interview.
And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow
him on Twitter at @atask or email him at altask@yahoo.com’ Timid Tuesday: Is it
Safe? Davis ‘… This is how we pay off our current debts and I think
CAREFUL OUT THERE! ‘ ]
UNDERDOG: CNN POLL: 51% SEE NO SECOND TERM FOR OBAMA...
71% OF ALL VEGAS HOMEOWNERS UNDER WATER...
'New normal' in housing bust...
STRESS...
Job openings fall for second straight month...
HOUSE VOTES NEXT WEEK TO BLOCK OBAMACARE FUNDS
WE'RE ON 'ROAD TO RUIN'
UPDATE: Egypt sees largest demos since start of revolt...
NEW WORLD TRADES...
D Börse, NYSE in advanced talks...
London takes Canada...
Exchange chiefs seek new global powerhouses...
SAUDIS TOLD OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing
footsteps…Previous: Egyptian capital teeters on anarchy Mubarak asks cabinet to
resign as anti-regime protests intensify (Washington Post) [ Mubarak should
fails to silence Egypt protests (AP) - AP - In its effort to silence protesters, Egypt
took a step that's rare even among authoritarian governments: It cut off the
Internet across the entire country. Mubarak fires Cabinet, defends army’s
efforts Sat, 29 Jan 2011 00:20:58 GMT Egyptian President Hosni Mubarak
dismisses his Cabinet, calls on the army to help put down rising potests...
Egypt's Mubarak sends in army, resists demands to quit (Reuters)
- 1 hour agoReuters - Egyptian President Hosni Mubarak refused on Saturday to
bow to demands that he resign after ordering troops and tanks into cities in an
attempt to quell an explosion of street protests again... ] Embattled
leader's move falls far short of demands that he give up his 30-year authoritarian
rule, leave the country and permit fresh elections. ]


Debt relief for states proposed (Washington Post) [ I’ve heard of the ‘blind
leading the blind’, but the ‘bankrupt borrowing from the bankrupt’ seems to be a
nouveau american phenomenon destined for ‘clichedom’. Previous: Governors
plan painful cuts amid budget crises (Washington Post) [ This truly is a disaster
in the making, with consequences even more dire than the grim outlook set forth
by Meridith Whitney, if that could even be fathomed. It’s really going to be all that
bad…see infra, The Economic Collapse, ‘#10 The municipal bond crisis could go
“supernova” at any time. Already, investors are bailing out of bonds at a
frightening pace. State and local government debt is now sitting at an all-time
high of 22 percent of U.S. GDP. According to Meredith Whitney, the municipal
bond crisis that we are facing is a gigantic threat to our financial system….

years…. ‘ ] Governors across the ideological spectrum are embracing the
politics of austerity in a desperate effort to balance the books. ] Proposal
would ease financial burden on many state governments in the wake of the
recession.
At CIA, mistakes by officers are often overlooked (Washington Post) [ Duuuh! I
want to know of even one thing that’s not overlooked concerning those
incompetent mental cases at the cia; from assassinations, to illegal drug dealing,
to illegal arms sales, to corruption, to disinformation, etc., to america’s and the
world’s (ie., those WMD’s in Iraq, etc.) substantial detriment. See also, ie.,
) ]:


# 3 Germany: 6,507,394

Trends ]

Four charged in 'brazen coverup' of insider trading (Washington Post) [ 'The

alleged conspirators "lacked a mobster's better-honed instinct for
conversational discretion," said Janice K. Fedarcyk, head of the FBI's New
York field office.'... Isn't that the truth; not like the big mobsters at goldman
sachs, et als, who were well connected with plenty of juice and whose hard
drives, conversations, etc., seemed never to make it to the crosshairs of real
scrutiny, though any such prosecution of even the small fries like these wall
street frauds should be welcomed, but with a sense of bewilderment as to
how the aforesaid biggest frauds have yet to be prosecuted for the largest
fraud in the history of this world with the consequences of their fraud 'now
marked to anything' as they cashed out(that legislated FASB rule change /
accommodation /complicity). ] Hedge fund manager allegedly tells
colleague: Go to the office and shred "as much as you can."
Humility on the Nile Will: Maybe America's finally realizing the limits of its
influence abroad. (Washington Post) [ I believe the power of Mr. Will’s
article is twofold: First, that humility thing for america and the concomitant
limits of american influence abroad. Like no other time in america’s short-
lived history, america has a lot to be humble about. Afterall, america is
defacto bankrupt, pervasively corrupt across all institutions whether they
be governmental / judicial / private, and literally crime-ridden with crime
rates exceeding by large margins those of other so-called civilized / tier
one nations. Moreover, much like america’s commander(s) in chief,
wobama the b (for b*** s*** - and war criminal bush), words are belied by
actions / misdeeds. Indeed, the propping up of corrupt / criminal /
oppressive regimes and the war crimes accompanying destruction and
taking of innocent lives are facts lost on no one in this age like never
before of ubiquitously available information which renders america’s once
formidable propaganda machine now impotent in relative terms.Truth /
reality works against america in every way. Second, and as important is
that former global dichotomy that Mr. Will references; viz., the cold war and
communism versus non-communism. No such simple lines now exist, nor
can they be drawn owing to america’s failure, corruption, and meaningful
lawlessness on so many levels and with such negative consequences. ]

perceptions.

Attractive


Concern

Everywhere
expensive.
Stock Momentum Trumps Valuation Warning Minyanville / Suttmeier ‘ Stocks
began the week continuing the melt-up that began December 1. Within the first
hour of trading, all weekly risky levels were violated, becoming pivots for the
remainder of the week; 12,142 Dow Industrial Average, 1316.2 S&P 500, 2770
Nasdaq, 5077 Dow Transports, and 800.13 Russell 2000. These levels have an
85% chance of being tested again before the end of the week. The only major
risky level is my quarterly risky level at 2853 for the Nasdaq. Keep in mind that
the October 2007 high for the Nasdaq is 2861.51. Stocks are ignoring higher 10-
year note and 30-year bond yields and the stronger dollar as the euro has
declined from 1.3860 on February 2 to 1.3511 into Monday.

with week’s pivot at 12,142.
• The S&P 500 (1319.1) -- My quarterly value level is 1262.5 with this week’s
pivot at 1316.2.
• The Nasdaq (2784) -- My monthly value level is 2611 with a weekly pivot at
2770 and quarterly risky level at 2853.
• Dow Transports (5071) -- My monthly value level is 4962 with a weekly pivot
at 5077 and my annual pivot at 5179. Transports lag its January 18 high at
5256.80.
and 765.50 with a weekly pivot at 800.13.
We are trading under a ValuEngine Valuation Warning -- 16 of 16 sectors

overvalued and only 33.8% of all stocks undervalued, below the 35% threshold by
this measure.
The US Treasury 10-Year Yield -- (3.648) My annual value level is 3.791 with a
Comex Gold -- ($1350.0) My quarterly, weekly and annual pivots are $1331.3,
$1342.8 and $1356.5 with monthly, quarterly and semiannual risky levels are
$1412.4, $1441.7, and $1452.6. The $1356.5 level is being tested this morning.
Nymex Crude Oil -- ($87.25) Closed below my semiannual pivot is $87.52 with
weekly and monthly pivots at $91.62 and $91.83. The $87.52 level should be a
magnet today.
The Euro -- (1.3583) My quarterly value level is 1.3227 with a weekly pivot at
1.3511 and monthly risky level at 1.4225.’
Hold Off on the Dow - Consider Malaysia and Taiwan ETFs Gordon ‘Turmoil in
Egypt set the markets back for a single day on 1/28/11. In fact, since the Egypt
crisis mummified equities, the Dow Jones Industrials Diamonds Trust (DIA) has
embarked on a seven-day winning streak.So ... what’s the frequency of seven
consecutive days of gains? It’s only happened eight other times in the past
decade.In spite of the odds that something ... anything ... might shake the faith,
the bearish voices have been utterly silenced. Heck, the only bearish discussion
in the media has been Meredith Whitney’s claim that U.S. municipalities will
default on billions of dollars in debt obligations. No discussion of stock calamity
or black swans ... only muni bond woes.Where have all the perma-bears gone?
Weiss, Roubini, Hussman ... if the bull has any chance of survival, we’re gonna
need you to convince your followers to “go short” on this seemingly unstoppable
uptrend. As of now, the short sellers haven’t completely thrown in the towel as
evidenced by a put-call ratio that’s yet to fall below 0.35.Think about the
headlines that could have caused a meaningful sell-off. Last week’s jobs report
was utterly pathetic ... no matter how you define “unemployment.” The ongoing
rise in bond yields is a legitimate threat to real estate. And the additional rate hike
from China is, if nothing else, a constant reminder of inflationary pressures
worldwide.Correction or no correction, however, the real story is the exodus from
emerging markets. The largest outflow in three years occurred last week, and the
money has been heading for the seemingly sunnier shores of the U.S. of A.In my
estimation, that’s a mistake. It’s not necessarily a mistake to sell your emerger for
a big gain when it has hit a stop-limit loss order off a November 2010 high. It’s a
mistake to chase U.S. equities that, while not overvalued by fundamental Forward
P/E standards, are overbought in ”standard-deviation-above-the-50-day-and-200-
day” standards.Essentially, as difficult as it is to be patient with your cash, you
may have to practice delayed gratification. If you have confidence in U.S.
companies, wait for a meaningful dip in the Dow Jones Industrials Diamonds
Trust (DIA). And if you don’t have confidence in the ability of emerging markets to
bounce back ... you’re too fearful. So consider buying funds that fuel China’s
middle class consumption.Two of my favorites? Malaysia has manageable
inflation, solid GDP growth and a trade surplus with China. The iShares MSCI
Malaysia Fund (EWM) avoids interest-rate sensitive sectors like energy and
materials, while capitalizing on China’s needs for simpler things like vegetable oil
and rubber.In addition, China is likely to see its own version of an Internet boom
in 2011-2012. Where do they get the products, services and expertise from?
Taiwan. iShares MSCI Taiwan (EWT) has a 60% weighting in Information Tech.’
QE2 Failure: Investors Flock to Overvalued Stocks Suttmeier ‘The yield on the
30-Year bond rose to 4.74 on Friday increasing the drag on equity valuations.
Both the 10-Year and 30-Year yields are above their December trading ranges,
raising consumer interest rates such as mortgage rates. Because of this, I say
QE2 is a failure. This is forcing investors to increase allocations to stocks just
when they become less attractive, more overvalued fundamentally and move
overbought technically. Last week, the Dow Industrial Average reached a new
high for the move at 12,092.42. Dow Transports and the Russell 2000 remain
below the highs of mid-January.
• The Dow Industrial Average (12,092) begins the week between my monthly
value level at 11,759 and this week’s risky level at 12,142. The weekly chart
remains extremely overbought.
• The S&P 500 (1310.9) begins the week my quarterly value level at 1262.5
with this week’s risky level at 1316.2. The weekly chart remains extremely
overbought.
• The NASDAQ (2769) begins the week between my monthly value level at
2611 with a weekly pivot at 2770 and quarterly risky level at 2853. The
weekly chart remains extremely overbought.
• Dow Transports (5056) begins the week between monthly and weekly
pivots at 4962 and 5077 and below my annual pivot at 5179, and below the
January 18th high at 5256.80. Dow Transports is below its 50-day simple
moving average at 5086 and will fall out of overbought territory on its
weekly chart this week.
• The Russell 2000 (800.11) begins the week above my annual and quarterly
value levels at 784.16 and 765.50 with a weekly pivot at 800.13 with the
January 14th high at 807.89. The weekly chart remains extremely
overbought.
• I cannot be overly bullish or bearish in the current market environment.
We are trading under another ValuEngine Valuation Warning - 16 of 16 sectors

overvalued and only 34.73% of all stocks undervalued, below the 35% threshold
by this measure.
The US Treasury 10-Year Yield – (3.650) The trading range set in December has
been broken to the upside with my annual value level at 3.791 and weekly risky
level at 3.525.
Comex gold – ($1349.5) Tested my annual pivot at $1356.5 last week, but could
not get a weekly close above that level. My semiannual value level is $1300.6 with
quarterly, weekly and annual pivots at $1300.6, $1331.3, 1342.8 and monthly,
quarterly and semiannual risky levels are $1412.4, $1441.7 and $1452.6.
Nymex crude oil – ($88.90) Has not been able to sustain gains above $92 per
barrel. I show weekly and monthly pivots at $91.62 and $91.83 as barriers for this
week with my semiannual pivot at $87.52.
The euro – (1.3578) Could not sustain gains above 1.38 last week. My quarterly
value level is 1.3227 with a weekly pivot at 1.3511 and monthly risky level at
1.4225. The weak euro versus the dollar on Thursday was offset by perceived
positive comments from Fed Chief Ben Bernanke.
Bernanke Blunders - Fed Chief Bernanke expects the economy to improve this
year with low inflation, despite the jump in commodity prices. The rise in
commodities prices has been a factor for ten years, and consumers are feeling it
at the gas pump, grocery stores and utilities bills.
The Federal Reserve is more worried about unemployment, but monetary policy
has not helped create jobs on Main Street USA. Main Street depends upon
construction jobs and these jobs are declining month after month.
Another blunder is the $600 billion QE2, which is aimed at jump-starting lending
and making stock ownership more attractive. You can not increase lending when
consumer rates such as mortgages are rising, and making stocks a less
attractive alternative to US Treasuries. The main purpose of QE2 is to lower long
term US Treasury yields, but the 10-Year yield is now 133 basis points higher
since in October. Sure, stocks are higher, but buying now puts consumer capital
at risk as stocks are overvalued and overbought. Consumers are buying stocks
just as they bought new homes in 2005 and 2006.
Bank Failure Friday – The FDIC closed thee more banks last Friday and none
were publicly traded.
· 25 banks failed in 2008
· 140 banks failed in 2009 with a peak of 50 in the third quarter
· 157 banks failed in 2010
· 14 banks have failed year to date in 2011
· 336 banks have failed since the end of 2007
· I still predict 500 to 800 bank failures in total by the end of 2012 into 2013.’
Monthly Market Valuation: Investors Are Too Bullish, Valuations Are Too High
[ The conclusion of the following detailed, documented analysis: ‘Wolinsky :In
conclusion, the market is over-valued based on the above data. Tobin's Q, Shiller
P/E and AAII data are all indicating that investors are too bullish and valuations
are too high.’ ]
Why Small Business Isn’t Hiring And Won’t Be Hiring Charles Hugh Smith | Small
business can’t afford to believe in myths and fantasies. They are dealing with the
harsh reality of adapt or die.
59.9%? Americans Are Racking Up Huge Credit Card Balances at Outrageous

Interest Rates Economic Collapse | It appears that the American people have
fallen off the wagon and have gotten a taste for credit card debt once again.
Obama Budget Proposes Broader Unemployment Taxes Wall Street Journal |

Proposal would aim to restock state unemployment-insurance trust funds by
raising the amount of wages on which companies must pay unemployment taxes.
Stocks Remain Poised for Steep Decline McCurdy ‘When the second round of
quantitative easing was announced late last year, Federal Reserve Chairman
Bernanke indicated that one of the primary objectives of the program was to
inflate risk assets such as stocks. In that respect, the program has been an
unqualified success, as the S&P 500 index has now gained more than 26% during
the course of 5 months.
However, as a result, the index P/E ratio has increased to more than 18, and the
most reliable forecasting models based upon current earnings and dividends
indicate that expected 10-year annual returns are now slightly more than 3%,
regardless of whether or not the economy is in fact experiencing a sustained
recovery.
Thus, from a purely investment perspective, stocks are priced to deliver very
poor results during the coming decade. Additionally, the short-term outlook now
favors the development of a potentially violent correction.
On Friday, the S&P 500 index moved up to another marginal new high for the rally
from September, pushing an overextended advance to yet another extreme.
[chart]
The current short-term cycle from the end of November is now 46 trading days
old, and it has yet to enter the final decline of the beta phase, suggesting that it
will likely terminate in the 55 to 60 day range. The previous cycle had a duration
of 63 trading days. These are moves of extremely long duration, well above their
historical average of about 39 trading days.
[chart]
Of course, to truly put the overextended nature of the move in perspective, it

must be viewed in the proper context afforded by the big picture. Below is a
monthly chart of the S&P 500 since the current secular bear market began in
2000.
[chart]
Notice how the character of market behavior changed materially with the crash in
late 2008. Since then, stocks have been moving effectively straight up or straight
down. This type of volatile price action is typical for this stage of the bear market
and indicates that we are still several years away from the terminal phase of the
secular decline.
Returning to the short-term view, our Cyclical Trend Score (CTS) has been
negatively diverging from price action since October, and the CTS is currently
holding slightly above its December low.
[chart]
Although the CTS is not a near-term timing indicator, this negative divergence
reflects a gradual deterioration in underlying strength. The developing weakness
is also manifested by broad market internals such as breadth and volume, as
both continue to negatively diverge from price behavior.
[chart]
[chart]
Finally, our Sentiment Score continues to hold near the lowest level since late
2007, reflecting irrationally excessive bullishness that leaves the market
vulnerable to an abrupt decline.
[chart]
Of course, overextended rallies of this type have a tendency to continue making

marginal new highs until, at some point, an unexpected catalyst sets in motion
the inevitable correction, which will likely be fast and furious, wiping out several
weeks of gains in a matter of sessions.
From a big picture perspective, the character of the next correction should
provide a great deal of clarity with respect to long-term direction. A relatively
weak retracement followed by a return to recent long-term highs would predict a
subsequent breakout and continuation of the cyclical bull market, while a
powerful, sustained downtrend would suggest the development of a long-term
top.’
Rich Get Richer When Governments Tout Austerity Remember all that stuff about
how the credit crunch was going to usher in a new age of austerity? The
financial industry would shrink; the gulf between the haves and the have-
nots would close; and taxes would rise for the top earners, forcing them to
contribute more to society.
Ratigan And Fleckenstein Explain The Fed’s Role In Recent Food Price Ignited
Revolutions For over a year now, Zero Hedge has been predicting that in its
foolhardy attempt of “inflation or bust”, the Fed’s actions would sooner or
later lead to mass rioting and possible revolutions.
The Golden Dragon Asian investors are demanding more and more precious
metals, and fund managers are gladly obliging by providing them with new
exchange-traded securities—like ETFs—in order to quench Asia’s thirst for
precious metals.
market and help you prepare for the next ten years.
The first benchmark we monitor is U.S. stock prices adjusted for inflation. In this
chart below, we compare the U.S. stock market to the Shiller 10-year
Price/Earnings ratio. This P/E ratio is an indication of investor confidence; a lack
of that signals extreme valuation levels. Our conclusion is that investor
psychology is still too optimistic and has a long way to go before reaching an
undervalued stock market level.
[chart] click to enlarge
Updating our duration and valuation benchmarks, again we find progress, but not
yet achieving the truly undervalued levels we expect to see toward the end of a
secular bear market. Based upon previous cycles, it appears we are only slightly
past the half way mark in terms of years, number of recessions, and valuations. A
look at our chart and table comparing this to earlier secular bear markets
illustrates our conclusion. We expect that a major bottom for inflation adjusted
stock prices is still years away before stocks finally gravitate toward the target
area outlined below.
[chart]
New Benchmark: Tobin Q Ratio
In this update we introduce another relative valuation benchmark created by Yale

economics professor and Nobel laureate James Tobin, hence the name Tobin’s Q
Ratio. The Q ratio is calculated as the total value of the stock market divided by
the replacement cost of all its companies. Values greater than 1 indicate stock
prices sell above their replacement cost and are therefore “expensive.” A reading
below 1 indicates stocks can be bought below replacement cost and therefore
indicates that it is cheaper to buy a company than to build one.
A long-term view of the Q ratio gives investors a good understanding of value,

information about current risk levels and a method to assess probable returns for
the long term. Secular bear markets historically bottom when the Q ratio declines
to a bargain level less than .4, meaning stock prices sell for just 40% of
replacement value. Today’s reading of 1.03 is above the average reading of .75
and considerably higher than the average secular low reading of .33. Investors
beware; stocks have considerable more downside potential before the Q ratio
truly reflects a great valuation. Buy and Hold tactics will continue to frustrate
investors, just as they have in the past decade.
[chart]
In conclusion, none of the benchmarks we evaluate indicate we are anywhere

close to a secular stock market bottom yet. In the meantime, a prudent and
profitable investment strategy should be flexible enough to actively adjust
portfolio asset allocation, depending on where we are in the business cycle and
the direction of the secular trend.’
Shiller Ratio Points to U.S. Equities Being Significantly Overvalued [ Yes they
are indeed; so take this especially great opportunity to sell, take profits since
there’s much, much worse to come! That computer-programmed spike into the
close to keep suckers suckered does not change the aforesaid. This is
particularly evident in their attempt to cash in on that superstitious scam known
as the ‘January effect’ by way of these manipulated bubble-making buy
programs; you know, loosen / soften the suckers up for the coming year’s new
fraud / scam. ] The 'January Effect' Is More Market Myth Than Sound Analysis ...
Kumar ‘…January of 1929, for example, was off to a brisk start as the Dow Jones
Industrial Average climbed to 317 from 307. But investors would be slammed later
in the year by a historic stock market crash that heralded the start of the Great
Depression. January of 1987, too, began nicely. The Dow climbed to 2160 at the
end of the month after starting out at 1927. But Black Monday would hit investors
in October of that year, leading to the sharpest historical stock market decline in
percentage terms. More recently, January 2001 had a strong showing when the
Dow Jones finished the month at 10,887 after starting at 10,646. Those reading it
as an auspicious beginning would be hit first by the further fallout from collapse
of the dot-com bubble and then the massive decline following the September 11
terrorist attacks. See full article from DailyFinance: http://srph.it/cyaPDT ‘… Then,
more recently there’s ‘The stock market scored a strong gain and locked in its
first positive finish for January since 2007 (we all know what happened after that!
Crash!) with help from the energy sector, which climbed sharply in response to a
spike in oil prices.(Yahoo/Briefing.com) … Higher oil prices … riiiiight! … that
sounds bull(s***)ish … on fraudulent wall street. ]
National / World
Obama Launches Total Takeover of Media System Kurt Nimmo | The government
has once again imposed an unreasonable and absurd mandate on business
and the American people.
Poll: Ron Paul Has Greater Chance Of Beating Obama Than Palin Does In 2012
Steve Watson | Will the Libertarian Congressman take up the mantle?
Kleptocrats at Work Paul Craig Roberts | Kleptocracy is as old as government.
Evidence Shows Pole Shift Hysteria Hyped Test Pilot | There is good physical
evidence that the magnetic poles of the Earth have inverted from time to
time.
Confirmed: FBI Got Warning Day Before OKC Bombing Paul Joseph Watson |
Documents released under Freedom of Information Act show feds tried to
coerce Terry Nichols into accepting responsibility for phone call warning of
imminent attack in return for protecting him from death penalty.
House Seen Blocking Obamacare Funds The U.S. House of Representatives is

likely to vote to block funding for President Barack Obama’s signature
healthcare overhaul when it takes up a budget plan next week, House
Republican Leader Eric Cantor said on Tuesday.
Poll: Ron Paul Has Greater Chance Of Beating Obama Than Palin Does In 2012 A
Rasmussen poll released Monday indicates that Congressman Ron Paul has
a better shot of beating Obama in the 2012 presidential election than Sarah
Palin would, should both decide to run on the GOP ticket.
Obama Launches Total Media Takeover System Even the Washington Post
describes it like something out of Orwell’s 1984. The FCC has approved a
presidential alert system. Obama may soon appear on your television or call
your cell phone to warn you about the next specious al-Qaeda underwear
bombing event.
Karzai in talks with US on permanent Afghan bases Afghan President Hamid

Karzai said Tuesday that he was in talks with the United States about the
possible establishment of permanent US military bases in his war-ravaged
country.
Ron Paul On Verge Of Announcing 2012 Presidential Bid Political pundits are
speculating that Ron Paul could be on the verge of announcing his much
awaited 2012 presidential run, after the Texas Congressman agreed to give a
speech in Iowa at an event entitled “presidential lecture series” that will
feature other likely Oval Office candidates.
WORLD NEWS ARCHIVE
WORLD AT WAR ARCHIVE
Freed young leader energizes Egyptian protests (AP) In this still image taken from
video, Google Inc executive Wael Ghonim cries during an interview in Cairo
February 7, 2011. One man's tears provided a new impetus on Tuesday to
protesters in Egypt seeking to keep up momentum in their campaign, now in its
third week, to topple President Hosni Mubarak. Ghonim, who was detained and
blindfolded by state security for 12 days, broke down in a television interview on
Monday after his release saying a system that arrested people for speaking out
must be torn down. Image taken from footage dated February 7, 2011.
REUTERS/Dream TV via Reuters TV (EGYPT)
Egypt VP favored by Israel to succeed Mubarak, cables show [ Which of course is

the best reason in the world, in addition to suleiman being both mubarak’s
and the cia’s choice, to not allowing that succession to go forward being
contrary to all notions of democracy (the dictator’s choice?). ] Israel has
long seen Omar Suleiman, Egypt’s recently appointed vice president, as the
successor to Egyptian President Hosni Mubarak, US State Department
cables released by secrets outlet WikiLeaks show.
Drudgereport: UNDERDOG: CNN POLL: 51% SEE NO SECOND TERM FOR

OBAMA...
71% OF ALL VEGAS HOMEOWNERS UNDER WATER...
'New normal' in housing bust...
STRESS...
Job openings fall for second straight month...
HOUSE VOTES NEXT WEEK TO BLOCK OBAMACARE FUNDS
WE'RE ON 'ROAD TO RUIN'
UPDATE: Egypt sees largest demos since start of revolt...
New video shows brutal mob justice...
Israel Army Chief: Prepare for all-out war...
Released GOOGLE exec reveals he was behind FACEBOOK page...
Freed young leader energizes protests...
Saboteurs attack gas pipeline; cuts off flow to Israel, Jordan...
CAIRO DAY 12: Locked in standoff...
Mubarak clings to power as son quits ruling party...
Gov't seeks to ease Mubarak out...
Hopes to ride out protest wave...
Anderson Cooper in 'Undisclosed Location' After Another Attack; Couric,
Williams Flee Egypt...
GOOGLE Exec Who Went Missing In Egypt Now Spokesman For Opposition
Group...
MOTOROLA AD MOCKS 'APPLE ZOMBIE SOCIETY'...
Mafia 'holds Silvio Berlusconi photos'...
SUPER BOWL MOST-VIEWED TV IN HISTORY...
THE PACK PULLS IT OUT [ Congratulations to the Green Bay Packers! ]
Governors plan painful cuts amid budget crises (Washington Post) [ This truly is
a disaster in the making, with consequences even more dire than the grim
outlook set forth by Meridith Whitney, if that could even be fathomed. It’s really
going to be all that bad…see infra, The Economic Collapse, ‘#10 The municipal
bond crisis could go “supernova” at any time. Already, investors are bailing out
of bonds at a frightening pace. State and local government debt is now sitting at
an all-time high of 22 percent of U.S. GDP. According to Meredith Whitney, the
municipal bond crisis that we are facing is a gigantic threat to our financial
system….

years…. ‘ ] Governors across the ideological spectrum are embracing the
politics of austerity in a desperate effort to balance the books.
Egypt protests continue as Mubarak's government offers concessions
(Washington Post) [ Come on! Let not all of us join america’s / israel’s, et als, and
mubarak’s delusions. After all, here’s an 82 year old tyrant, in power for 30 years,
yet in some parallel universe appears to think he’s calling the shots. Other than
literal and quite foolish shots against protesters, even journalists, see infra, there
are few indeed that would trust his mindset, such as it is, much less his
judgment, so flawed as he has now shown it to be. What is obvious is that this
long overdue ‘people’s election’ cannot be thwarted by platitudes and small talk,
but resisting the inevitable will turn an american quasi-ally into an anti-american
breeding ground because there’s just no reconciling a pro-mubarak, however
slight, position with american / israeli, et als war crimes in the region. Restless
Cairo protesters hoping for U.S. support (Washington Post) [ The sad reality here
is, much like wobama’s Afghanistan fiasco, that america has ‘bought it’. This is
truly yet another ‘loss, loss’ scenario as is true of america’s mideast policy
generally. Defacto bankrupt america’s initiatives in the region particularly, though
generally true of all american policy, is the ‘square pegs in round holes’ approach
to almost everything they do, which certainly is not lost on the rest of the world.
Coddling and caving in to israeli / neocon / zionist paranoia despite the war
mongering intransigence of the former is devastating to a nation as pervasively
corrupt america which is facing insurmountable domestic problems of its own,
economically, financially, politically, and geo-politically. This should bring to
mind the missteps of a former fading empire in this same region desperately
trying to remain relevant. Indeed, from Balfour’s Despoliation to arbitrary
boundaries, etc., Orwellian britain’s demise (decline) as a real player globally
was, as america’s currently, significantly and irrevocably hastened. Quite simply,
pervasively corrupt, defacto bankrupt america will increasingly be viewed as a
bunch of ‘muck-ups’ who can’t handle their own substantial problems much less
those of other nations; and in fact, invariably exacerbate existing conditions /
problems, particularly when pandering to israel’s self-interested concerns. ]
While the ouster of President Hosni Mubarak remains the most pressing concern
for protesters, the role of U.S. is far from absent in the dialogue. { Previous: Amid
Arab protests, U.S. influence has waned (Washington Post) [ And that’s just the
way israel likes it … and to america’s detriment, of course … which is not lost on
even George Soros … Drudgereport: Soros: 'The main stumbling block is Israel'...
} ]
Obama prods U.S. firms to help economy (Washington Post) [ Sounds like a
plan! Riiiiight! Unfortunately wobama, unlike capital hill, and with bean-
counters / number-crunchers / financial analysts paid to look beyond
your next election cycle, there are few if any rational investment projects
that comport with your politicking goals, particularly in light of your
perpetual wars and the defacto bankruptcy of the nation … The Gipper's
true heirs (Washington Post) [ ‘Wobama the b’ (for b*** s***), quite
remarkably, seems to imply he is one. Yet, his ‘ask what you can do for
your country’ entreaty to the ‘corporate execs’ (wake up wobama, they’ve
already done it, shifting production / jobs irrevocably overseas, etc., while
engaging in the largest fraud by way of wall street in the history of the
world, with apparent impunity I might add as per professional criminal
courtesy via you and your department of injustice) sounds awfully John F.
Kennedyish; yet never the twain should meet (in fact, Reagan and his
friend, William Holden reportedly lifted a glass and cheered Kennedy’s
assassination – not totally ill-intended since they bought into that ‘Kennedy
treason’ propaganda being pushed by the cia et als. Actually, Reagan’s
greatest (and most unlikely going in) achievement was the peaceful
transition from communism he helped initiate and facilitate with Russia’s
rational and astute Mikhail Gorbachev which made way for substantial
peace dividend for both nations.) Yes, wobama seems to be suffering from
a form of multiple personality disorder which has invariably been
interposed in defense of missteps and ‘bad behavior’, but as is true now,
without success. ] Robinson: Republicans claim the Reagan mantle, but
Democrats act almost like Reaganites.
Stocks Remain Poised for Steep Decline McCurdy ‘When the second round of
quantitative easing was announced late last year, Federal Reserve Chairman
Bernanke indicated that one of the primary objectives of the program was to
inflate risk assets such as stocks. In that respect, the program has been an
unqualified success, as the S&P 500 index has now gained more than 26% during
the course of 5 months.
However, as a result, the index P/E ratio has increased to more than 18, and the
most reliable forecasting models based upon current earnings and dividends
indicate that expected 10-year annual returns are now slightly more than 3%,
regardless of whether or not the economy is in fact experiencing a sustained
recovery.
Thus, from a purely investment perspective, stocks are priced to deliver very
poor results during the coming decade. Additionally, the short-term outlook now
favors the development of a potentially violent correction.
On Friday, the S&P 500 index moved up to another marginal new high for the rally
from September, pushing an overextended advance to yet another extreme.
[chart]
The current short-term cycle from the end of November is now 46 trading days
old, and it has yet to enter the final decline of the beta phase, suggesting that it
will likely terminate in the 55 to 60 day range. The previous cycle had a duration
of 63 trading days. These are moves of extremely long duration, well above their
historical average of about 39 trading days.
[chart]
Of course, to truly put the overextended nature of the move in perspective, it

must be viewed in the proper context afforded by the big picture. Below is a
monthly chart of the S&P 500 since the current secular bear market began in
2000.
[chart]
Notice how the character of market behavior changed materially with the crash in
late 2008. Since then, stocks have been moving effectively straight up or straight
down. This type of volatile price action is typical for this stage of the bear market
and indicates that we are still several years away from the terminal phase of the
secular decline.
Returning to the short-term view, our Cyclical Trend Score (CTS) has been
negatively diverging from price action since October, and the CTS is currently
holding slightly above its December low.
[chart]
Although the CTS is not a near-term timing indicator, this negative divergence
reflects a gradual deterioration in underlying strength. The developing weakness
is also manifested by broad market internals such as breadth and volume, as
both continue to negatively diverge from price behavior.
[chart]
[chart]
Finally, our Sentiment Score continues to hold near the lowest level since late
2007, reflecting irrationally excessive bullishness that leaves the market
vulnerable to an abrupt decline.
[chart]
Of course, overextended rallies of this type have a tendency to continue making

marginal new highs until, at some point, an unexpected catalyst sets in motion
the inevitable correction, which will likely be fast and furious, wiping out several
weeks of gains in a matter of sessions.
From a big picture perspective, the character of the next correction should
provide a great deal of clarity with respect to long-term direction. A relatively
weak retracement followed by a return to recent long-term highs would predict a
subsequent breakout and continuation of the cyclical bull market, while a
powerful, sustained downtrend would suggest the development of a long-term
top.’
Valuation Warning Continues for Stocks Minyanville ‘Editor's Note: This article was
written by Richard Suttmeier, chief market strategist at ValuEngine.com, which is a
fundamentally based quant research firm.
The yield on the 30-year bond rose to 4.74 on Friday, increasing the drag on equity
valuations. Both the 10-year and 30-year yields are above their December trading
ranges, raising consumer interest rates such as mortgage rates. Because of this I say
QE2 is a failure. This is forcing investors to increase allocations to stocks just when they
become less attractive, more overvalued fundamentally and more overbought
technically. Last week the Dow Industrial Average reached a new high for the move at
12,092.42. Dow Transports and the Russell 2000 remain below the highs of mid-
January.
• The Dow Industrial Average (12,092) begins the week between my monthly value
level at 11,759 and this week’s risky level at 12,142. The weekly chart remains
extremely overbought.
• The S&P 500 (1310.9) begins the week near my quarterly value level at 1262.5
with this week’s risky level at 1316.2. The weekly chart remains extremely
overbought.
• The Nasdaq (2769) begins the week between my monthly value level at 2611
with a weekly pivot at 2770 and quarterly risky level at 2853. The weekly chart
remains extremely overbought.
• Dow Transports (5056) begins the week between monthly and weekly pivots at
4962 and 5077 and below my annual pivot at 5179, and below the January 18
high at 5256.80. Dow Transports is below its 50-day simple moving average at
5086 and will fall out of overbought territory on its weekly chart this week.
• The Russell 2000 (800.11) begins the week above my annual and quarterly value
levels at 784.16 and 765.50 with a weekly pivot at 800.13 with the January 14
high at 807.89. The weekly chart remains extremely overbought.
• I cannot be overly bullish or bearish in the current market environment.
We're trading under another ValuEngine Valuation Warning -- 16 of 16 sectors are

overvalued and only 34.73% of all stocks are undervalued, below the 35% threshold by
this measure.
The US Treasury 10-Year Yield -- (3.650) The trading range set in December has
been broken to the upside with my annual value level at 3.791 and weekly risky level at
3.525.
Comex gold -- ($1349.5) Tested my annual pivot at $1356.5 last week, but could not
get a weekly close above that level. My semiannual value level is $1300.6 with
quarterly, weekly and annual pivots at $1300.6, $1331.3, 1342.8 and monthly, quarterly
and semiannual risky levels are $1412.4, $1441.7 and $1452.6.
Nymex crude oil -- ($88.90) Has not been able to sustain gains above $92 per barrel. I
show weekly and monthly pivots at $91.62 and $91.83 as barriers for this week with my
semiannual pivot at $87.52.
The euro -- (1.3578) Could not sustain gains above 1.38 last week. My quarterly value
level is 1.3227 with a weekly pivot at 1.3511 and monthly risky level at 1.4225. The
weak euro versus the dollar on Thursday was offset by perceived positive comments
from Fed Chief Ben Bernanke.
Bernanke Blunders -- Fed Chief Bernanke expects the economy to improve this year
with low inflation, despite the jump in commodity prices. The rise in commodities prices
has been a factor for 10 years, and consumers are feeling it at the gas pump, grocery
stores and utilities bills.
The Federal Reserve is more worried about unemployment, but monetary policy has not
helped create jobs on Main Street USA. Main Street depends upon construction jobs
and these jobs are declining month after month.
Another blunder is the $600 billion QE2, which is aimed at jump-starting lending and
making stock ownership more attractive. You can not increase lending when consumer
rates such as mortgages are rising, and making stocks a less attractive alternative to
US Treasuries. The main purpose of QE2 is to lower long-term US Treasury yields, but
the 10-Year yield is now 133 basis points higher since October. Sure stocks are higher,
but buying now puts consumer capital at risk as stocks are overvalued and overbought.
Consumers are buying stocks just as they bought new homes in 2005 and 2006!
Bank Failure Friday -- The FDIC closed three more banks last Friday and none were
publicly traded.
• I still predict 500 to 800 bank failures in total by the end of 2012 into 2013. ‘
Beware: True Unemployment Is Closer to 10%
The Burden of Lower Growth and More Frequent Recessions Mauldin ‘The
following is a preview of my new book, Endgame, out and in the bookstores next month.
This is the beginning of chapter four, and it stands alone quite nicely. It will print out a
little longer than normal, as there are a lot of graphs. My co-author Jonathan Tepper
and I deal with why there will be slower growth, more volatility, and more frequent
recessions in our future.
We’re optimists by nature. The natural order of the world is growth. Trees tend to grow,
and economies do, too. Real economic growth solves most problems and is the best
antidote to high deficits, but the problems that we have now won’t be solved by growth.
They’re simply too big. Unless we have another Industrial Revolution or another
profound technological revolution like electrification in the 1920s or the IT revolution in
the 1990s, we will not be able to grow enough to pull ourselves out of the debt hole
we’re in.
After the dot-com bust in 2000, the phrase “the muddle through economy” (a term
coined by John) best described the U.S. economic situation. The economy would
indeed be growing, but the growth would be below the long-term trend (which in the
United States is about 3.3 percent) for the rest of the decade. (Indeed, growth for the
decade was an anemic 1.9 percent annualized, the weakest decade since the Great
Depression. Muddle through, indeed.)
The muddle through economy would be more susceptible to recession. It would be an

economy that would move forward burdened with the heavy baggage of old problems
while facing the strong headwinds of new challenges. The description of the world was
accurate then, and it is even more accurate now. In March 2009, when almost everyone
was predicting the apocalypse, it was hard to see how things could improve. The GDP
turned around, industrial production has shot up, retail sales have bounced back, and
the stock market rebounded strongly. Everything has turned up. However, GDP growth
is slowing in the United States as we write in November 2010. Compared with previous
recoveries, growth does not look that great, and people don’t feel the recovery. This is
unlikely to change.
The muddle through economy is the product of a few major structural breaks in the
world’s economies that have important implications for growth, jobs, and when we might
see a recession again. The U.S. and most developed economies are currently facing
many major headwinds that will mean that going forward, we’ll have slower economic
growth, more recessions, and higher unemployment. All of these are hugely important
for endgame since they vastly complicate policy making.
Lower growth will make our fiscal choices that much scarier. Importantly, these big
changes also mean that governments, pension funds, and even private savers are
probably making unreasonably rosy assumptions about how quickly the economy and
asset prices will be able to increase in the future. As endgame unfolds, the reality of
these big changes will set in.
Three Structural Changes
Investors are good at absorbing short-term information, but they are much less
successful at absorbing bigger structural trends and understanding when secular breaks
have occurred. Perhaps investors are like the proverbial frogs in the frying pan and do
not notice long, slow changes around them. There are three large structural changes
that have happened slowly over time that we expect to continue going forward. The U.S.
economy will have:
1. Higher volatility
2. Lower trend growth
3. Higher structural levels of unemployment (The United States here is a proxy for many
developed countries with similar problems, so much of this chapter applies elsewhere.)
1. Higher Volatility
Before the crash of October 2008, the world was living in “the great moderation,” a
phrase coined by Harvard economist James Stock to describe the change in economic
variables in the mid-1980s, such as GDP, industrial production, monthly payroll
employment, and the unemployment rate, which all began to show a decline in volatility.
As Figures 4.1 and 4.2 from the Federal Reserve Bank of Dallas show, the early 1980s
in fact constituted a structural break in macroeconomic volatility. The GDP became a lot
less volatile. As did employment.
The great moderation was seductive, and government officials, hedge fund managers,
bankers, and even journalists believed “this time is different.” Journalists like Gerard
Baker of the Times of London wrote in January 2007: Welcome to “the Great
Moderation”: Historians will marvel at the stability of our era. Economists are debating
the causes of the Great Moderation enthusiastically and, unusually, they are in broad
agreement.
[chart]
[chart]
Good policy has played a part: central banks have got much better at timing interest
rate moves to smooth out the curves of economic progress. But the really important
reason tells us much more about the best way to manage economies. It is the liberation
of markets and the opening-up of choice that lie at the root of the transformation. The
deregulation of financial markets over the Anglo-Saxon world in the 1980s had a
damping effect on the fluctuations of the business cycle ... The economies that took the
most aggressive measures to free their markets reaped the biggest rewards.
In retrospect, this line of thinking looks hopelessly optimistic, even deluded. We do not
write this to pick on Gerard Baker, but rather to point out that low volatility breeds
complacency and increased risk taking. The greater predictability in economic and
financial performance led hedge funds to hold less capital and to be less concerned with
the liquidity of their positions.
Those heady days are now over, and we have now entered “the great immoderation.”
One can confidently say that 2008 represents a structural break, moving back toward a
period of greater volatility. Robert F. Engle, a finance professor at New York University
who was the Nobel laureate in economics in 2003, has shown that periods of greatest
volatility are predictable. Market sessions with particularly good or bad returns don’t
occur randomly but tend to be clustered together. The market’s behavior illustrates this
clustering. Volatility follows the credit cycle like night follows day, and periods following
credit booms are marked by high volatility, for example, 2000–2003 and 2007–2008.
The period of low volatility of GDP, industrial production, and initial unemployment
claims is now over. For a period of more than 20 years, excluding the brief 2001–2002
recession, volatility of real economic data was extremely low, as Figure 4.3 shows.
Going forward, higher economic volatility, combined with a secular downtrend in
economic growth, will create more frequent recessions. This is likely to lead to more
market volatility as well.
[chart]
You can measure economic volatility in a variety of ways. Our preferred way is on a
forward-looking basis. We have seen the highest volatility in the last 40 years across
leading indicators, as Figure 4.4 shows. These typically lead the economic cycle. This
only means one thing, higher volatility going forward.
For far too long, volatility was low and bred investor complacency. Going forward, we
can expect a lot more economic and market volatility. We have had a strong cyclical
upturn, but we will continue to face major structural headwinds. This means more
frequent recessions and resultant higher volatility.
If we look at Japan following the Nikkei bust in 1989, we can see that volatility
increased. Note that before the peak in the Nikkei, volatility had been largely subdued,
with periodic movements corresponding to increases in the level of the market. As
Figure 4.5 shows, following the crash, stock market volatility increased markedly, and
volatility to the downside became far more prevalent.
[chart]
Equity volatility follows the credit cycle. If you push commercial and industrial (C&I)
loans forward two years, it predicts increases in the Market Volatility Index (VIX) almost
down to the month. We should expect heightened episodes of volatility for the next two
years at a minimum. (See Figure 4.6.)
Fixed-income volatility also follows the credit cycle with a two-year lag. Figure 4.7
shows how the Fed Funds rate lags Merrill Lynch’s MOVE Index, which is a measure of
fixed-income volatility, by three years.
[chart]
Another very good reason to believe we’ll continue to have high volatility even after we
recover from the hangover of the credit binge is that the world is now much more
integrated. This is a paradox and may seem hard to believe, but increased globalization
actually makes the world more volatile through extended supply chains! (See Figure
4.8.)
Production in Japan, Germany, Korea, and Taiwan fell far more during the 2007–2009
recession than U.S. production fell even during the Great Depression. Not only was the
downturn steeper than during the Great Depression but also the bounce back was even
bigger.
This is truly staggering. If you believed in globalization, supply chain management, and
deregulation, you would have thought they would lead to greater moderation, but the
opposite happened. This was due to the credit freeze that particularly hit export-oriented
economies because trade credit temporarily dried up. It was not about globalization per
se.
Why has the world economy been so volatile? One of the main reasons is exports. If
you look at exports as a percentage of GDP since the end of the Cold War, you’ll see
that in almost all countries around the world, exports have rapidly risen in the last 20
years. In Asia, they have doubled, in India they have tripled, and in the United States
they have increased by 50 percent. This makes us all more interconnected, and it
means that supply chains become longer and longer.
Longer supply chains have enormous macroeconomic implications. As the Economic
Cycle Research Institute points out, we’re now experiencing the bullwhip effect, “where
relatively mild fluctuations in end demand are dramatically amplified up the supply
chain, just as a flick of the wrist sends the tip of a bullwhip flying in a great arc.” The
bullwhip effect makes greater export dependence very dangerous to supplier countries,
which only contributes to cyclical volatility. This is easily seen in Figure 4.9. That is why
Asian countries had some of the largest downturns and steepest upturns in the Great
Recession and the following recovery.
[chart]
2. Lower Trend Growth
We are also seeing a secular decline over the last four cycles in trend growth across
GDP, personal income, industrial production, and employment. You can see that in
Figure 4.10.
Another view of declining trend growth is the decline in nominal GDP. Figure 4.11
shows that the 12-quarter rolling average has been on a steady decline for the last two
decades.
[chart]
A combination of lower trend growth and higher volatility means more frequent
recessions. Put another way, the closer trend growth is to zero and the higher volatility
is, the more likely U.S. growth is to frequently dip below zero. Figure 4.12 shows a
stylized view of recessions, but as trend growth dips, the economy will fall below zero
percent growth more often.
Higher volatility has very important implications for equity and bond investors across
asset classes. Indeed, the last three economic expansions were almost 10 years, but in
previous decades, they averaged four or five years. From now on, we are apt to see
recessions every three to five years.’
Find A Job? Good Luck In This Economy – 10 Reasons Why The Latest
Unemployment Numbers Are No Reason To Cheer ‘The U.S. government is telling
us that the unemployment rate fell all the way down to 9.0% in January. Should
we all cheer? The Economic Collapse Feb 6, 2011 The U.S. government is telling
us that the unemployment rate fell all the way down to 9.0% in January. Should
we all cheer? Is it now going to be a lot easier to find a job? Has the economy
finally turned around? Are happy days here again? Well, it is a good thing to
have a positive attitude, but the truth is that there is just not much to cheer about
when you take a closer look at the recent unemployment numbers. First of all,
the U.S. economy only added 36,000 jobs in January. Economists had been
expecting an increase of about 145,000 jobs, and an increase of 150,000 jobs per
month is necessary just to keep up with population growth. So why did the
unemployment rate go down? Well, the government says that over half a million
Americans suddenly dropped out of the labor force in January. That doesn’t
make a lot of sense, but this is how the government calculates their numbers. So
what happened to those 500,000 Americans? Did they all win the lottery? Have
they all become independently wealthy? Did they all die? No, the vast majority of
them are still around and the vast majority of them still desperately need jobs. It
is just that the government does not count them as “looking for work” anymore.It
would be great if the employment situation in America actually was getting
better. All the time people send me absolutely heartbreaking stories about what
they have had to endure in this economy. Soon I hope to share some of those
stories with you all. It is hard to try to describe the absolute horror that many
Americans are going through right now.People would like to believe that things
are going to get better, but unfortunately that is just not going to be the case.
The government can try to massage the numbers to make them look better, but
the truth is that the tens of millions of American families that are deeply suffering
right now are not fooled.
The following are 10 statistics that reveal that the latest unemployment numbers
from the government are no reason to cheer….
#1 According to CNBC, economists were expecting the U.S. economy to add

145,000 jobs during January. Obviously the 36,000 figure was a huge
disappointment.
#2 Approximately 150,000 jobs need to be added to the economy each month just
to keep up with population growth.
#3 The government jobs report also indicated that 504,000 Americans “dropped
out of the labor force” in January. That may make the unemployment numbers
look better, but the truth is that the vast majority of those 500,000 Americans still
need incomes and still need jobs.
#4 According to the latest numbers from Gallup, the unemployment rate

actually increased to 9.8% at the end of January.
#5 Gallup’s measure of “underemployment” (those that are unemployed plus

those that are working part-time but want full-time employment) was sittingat
18.9% at the end of January.
#6 As I reported yesterday, there are approximately 28 million Americansthat

would like full-time jobs but that don’t have full-time jobs.
#7 According to Zero Hedge, the number of Americans that are “not in the labor
force” but that would like a job right now has hit an all-time record high. If you
add all of those people into the official unemployment figure it would jump to
12.8%.
#8 According to Calculated Risk, this is the deepest and most brutal employment
downturn that the United States has experienced since World War II. The current
employment downturn started 37 months ago and there doesn’t seem to be any
indication that we will return to pre-recession levels any time soon.
#9 The U.S. Labor Department has also announced that job growth during 2010
was much weaker than they had previously reported. The numbers for 8 months
were revised down, and the numbers for 4 months were revised up. After all of
the revisions are accounted for, it turns out that a total of 215,000 fewer jobs were
created during 2010 than originally calculated.
#10 According to one brand new survey, 4 out of every 10 Americans are
struggling “a lot” to pay the bills right now.
The situation is not pretty out there. The U.S. needs tens of millions more jobs
than we have right now.
So where are all of our jobs going? The video posted below contains some very
strong hints. The truth is that globalism is ripping our economic infrastructure
apart, and all of the crazy rules and regulations we keep heaping on business are
not helping either….U.S. workers have been merged into a “global labor pool”
where we are expected to directly compete for jobs with people making slave
labor wages on the other side of the globe.The more time you spend thinking
about that, the more you start realizing that the standard of living of average
American families is going to continue to decline.Unfortunately, as I wrote about
in a recent article entitled “Nothing Is Stable Anymore“, the world is changing
faster today than at any other time during our lifetimes. Everything that we used
to assume about employment, money, our economy and our finances is being
turned upside down. We now live in a world where very little can be taken for
granted.2011 has already been a very tumultuous year. The world is being
transformed. Nobody knows for sure what is going to happen next.One thing to
really keep an eye on is the price of oil. Right now, large numbers of investors
are betting that the price of oil will rise to $125 a barrel by May. Shockingly, some
investors are even betting that the price of oil will rise to $250 a barrel by next
December.If oil starts to spike dramatically, it will have tremendous implications
for the U.S. economy. Our entire economic system runs on oil. The price of oil
affects the price of everything else.If the price of oil keeps going up it is inevitably
going to cause a slowdown in the U.S. economy and it will cause the
unemployment situation to get even worse.So be glad that the employment
situation is at least somewhat stable for now, because if things take a bad turn for
the worse in 2011 who knows what kind of unemployment numbers we’ll be
talking about a year from now.’
Hedge Fund Manager Bill Fleckenstein: Fed Money Printing to Cover Bank Theft
Is Leading to Food Inflation Worldwide [ People really don’t comprehend the
enormity of this reality / fraud /theft which is far more injurious than even set
forth here with dire consequences to come. ] Dylan Ratigan says that the
Fed is printing money to cover enormous theft by the big banks, and that
money printing is leading to food inflation worldwide. (Bad weather and
speculation on commodities are obviously also contributing to rising food
prices).
Another Economic ‘Martial Law in the Streets’ Moment Approaches In the fall of
2008, during the lead up to the TARP bailout of the financial industry,
Treasury Secretary Henry Paulson warned members of Congress that there
will be Martial Law in America should they fail to pass the multi-trillion dollar
looting of the taxpayer.
Jim Rogers: “I Expect More Currency Turmoil, More Social Unrest, More
Governments Collapsing” More social and political turmoil is likely in the
future so commodities prices will continue rising, renowned investor Jim
Rogers, CEO of Rogers Holdings, told CNBC.
US cities face financial collapse Overdrawn American cities could face financial
collapse in 2011, defaulting on billions of dollars borrowed and derailing the
US economic recovery. Municipal bonds were once a very secure form of
investment and are now defaulting, a trend that is on the rise. UMass
economics professor Richard Wolff says this is going to translate into a
diminished quality of life, we need more governmental services not fewer
and it is going to affect everyone.
The Scariest Jobs Chart Ever Looks Totally Awful There are some weird things
going on in this morning’s jobs report, but the headline number was a joke,
and as such, the scariest jobs chart ever looks horrid.
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.
Underground world hints at China’s coming crisis Telegraph | windowless rooms

that rent for £30 to £50 a month, which is as much as many of the city’s army of
migrant labourers can afford.
World food prices hit record high AFP | World food prices reached their highest
level ever recorded in January and are set to keep rising for months.
National / World
Al Jazeera’s Cairo office burned down by pro-Mubarak ‘thugs’ Raw Story | Al

Jazeera’s office in Cairo was stormed by a “gang of thugs” and set on fire along
with all the equipment inside it, the Arab news network said Friday.
Renewed pressure on Mubarak to quit as talks fail Alarab Online | Mubarak came
under fresh pressure on Monday to step down as opponents said concessions
made in landmark talks were not enough to halt a revolt against his 30-year rule.
White House Attacks Prison Planet.com Report On Blackouts Alex Jones & Paul
Joseph Watson | White House Communications Director rebuttal a tissue of
lies, deception, and spin.
Potemkin America Paul Craig Roberts | As wages stagnate and unemployment

booms, U.S. prosperity appears as illusory as that of the old Soviet Union.
Obama Is Treating the Dictator in Egypt Exactly Like He’s Treating the Tyrants on
Wall Street By failing to demand the tyrant that the U.S. has propped up for
decades resigns, the U.S. is ensuring continued violence.
It Ain’t Just Mubarak — 7 of the Worst Dictators the U.S. Is Backing to the Hilt
From Saudi Arabia to Uzbekistan to Chad, the U.S. keeps some very bad
autocrats in power.
Activists and Local Communities Gaining Ground on Exposing Wal-Mart For

Deceptive Practices John Galt | The myth of Wal-Mart as an indispensable
part of Americana that presents the poor with a wide selection of affordable
products is coming unraveled.
Anti-Energy Agenda Could Cause More Rolling Blackouts While the recent energy
turmoil is a result of extreme weather conditions, it is symbolic and a grim
foreshadowing of what our energy policy in the United States has become:
an anti-energy agenda.
American Warships Heading to Egypt There is no clear indication that the U.S.
government has affirmatively decided to directly involve our military in
Egypt. However, it is obvious that the government is at least planning for the
possibility.
Senior US Marine Says “Multiple Platoons” Are Headed To Egypt A senior

member of the US Marine corps is telling people “multiple platoons” are
deploying to Egypt, a source tells us.
Cheney calls Mubarak a good friend, U.S. ally Former Vice President Dick Cheney
said Egyptian President Hosni Mubarak is a good friend and U.S. ally, but
declined to predict whether the embattled leader would heed protesters’
calls to step down.
Egypt protesters call for final countdown Egyptian protesters call for fresh multi-
million-strong rallies against out-of-favor President Hosni Mubarak and his
government in the coming days.
Protester Shot And Killed In Alexandria, Egypt (GRAPHIC VIDEO) Graphic footage
has surfaced of what appears to be a protester shot in the streets of
Alexandria, Egypt by secret police.
Video of anti-Mubarak crowds venting anger in Iran, Turkey, West Bank As

protesters demanding Egyptian President Hosni Mubarak’s ouster packed
Cairo’s central square by the tens of thousands on Friday, similar
demonstrations took place across the world, including Iran, Turkey and the
West Bank.
Mass Anti-Government Protests In Serbia The Serbian capital Belgrade has seen
its biggest anti-government protest in years as thousands of disenchanted
Serbs demanded early elections.
Al Jazeera’s Cairo office burned down by pro-Mubarak ‘thugs’ Al Jazeera’s office

in Cairo was stormed by a “gang of thugs” and set on fire along with all the
equipment inside it, the Arab news network said Friday.
Alex Jones Calls Out Obama for Treason Infowars.com | Fury is building over
rolling nationwide blackouts triggered by Obama’s deliberate agenda to
block the construction of new coal-fired plants.
Big Sis and NFL Turn Super Bowl Into Police State Kurt Nimmo | High profile event
exploited to acclimate Americans to Big Brother high-tech panopticon state.
Pole Shift Threatens To Cause Weather Chaos Paul Joseph Watson | According
to some experts, the world’s weather is about to get even more chaotic as a
result of natural climate change that we can do absolutely nothing to
prevent.
DHS Seizes Websites for Merely LINKING to Copyrighted Material Eric Blair | We
better wake up and share these stories with everyone we know, because
tyranny is fast approaching.
Forget Super Bowl Pat Downs, Big Sis Wants Interrogations And Behavioral
Tests Paul Joseph Watson | Anyone attending a public event will be forced
to prove to Homeland Security that they are well-behaved slaves
Alex Jones Calls DHS to Report Real Terrorists LIVE on Air Infowars.com | The
White House has publicly responded to the controversy surrounding the
Obama administration’s agenda to bankrupt the coal industry.
Hypnosis by LCD Becoming Increasingly Rampant Matt Ryan | Many people have
become so infatuated with the content displayed on tiny LCD screens that
they unconsciously throw their sense of well-being out the window.
Drudgereport: WE'RE ON 'ROAD TO RUIN'

BIG SIS TELLS SUPER BOWL ATTENDEES: 'SEE SOMETHING, SAY
SOMETHING'...
Everyone entering stadium to get a patdown...
Saboteurs attack gas pipeline; cuts off flow to Israel, Jordan...
CAIRO DAY 12: Locked in standoff...
Mubarak clings to power as son quits ruling party...
Gov't seeks to ease Mubarak out...
Hopes to ride out protest wave...
Anderson Cooper in 'Undisclosed Location' After Another Attack; Couric,
Williams Flee Egypt...
GOOGLE Exec Who Went Missing In Egypt Now Spokesman For Opposition
Group...
MOTOROLA AD MOCKS 'APPLE ZOMBIE SOCIETY'...
Mafia 'holds Silvio Berlusconi photos'...
SUPER BOWL MOST-VIEWED TV IN HISTORY...
THE PACK PULLS IT OUT [ Congratulations to the Green Bay Packers! ]
Budget freeze hampers oversight, SEC chair says (Washington Post) [ Well, now
we know the real reason behind the spending freeze. It always was a bit of a
stretch to say that was because of their seriousness regarding deficit-reduction
which is a catch-phrase but myth at best. That said, in light of wobama’s et als’
failure to live up to campaign promises regarding prosecution of the blatant
frauds on wall street, it seems that the absence of the $200 million will be
interposed as an excuse for planned failure. After all, at every turn, the frauds on
wall street were given every opportunity to cover their tracks and keep their
booty. The attorney general’s office, u.s. attorneys and wobama the b are the
worst offenders concerning the foregoing. ] Mary L. Schapiro says the freeze is
compromising the agency's ability to police the financial markets. Defacto
bankrupt, fraudulent america also spends more on offensive (defensive a
misnomer / propaganda) military spending than all the nations of the world
combined, and by a large margin at that. Do you see a pattern emerging here [ I
unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches
of the u.s. government, etc., are included in this evolved american trait of inherent
criminality in the most nefarious sense (
) ]:


# 3 Germany: 6,507,394

Trends ]

Iran's Khamenei says uprisings represent 'defeat' for U.S. (Washington Post) [ No
matter how you slice it, dice it, or euphemise about it, these are indeed
substantial, irrevocable losses for the u.s.; but importantly, of america’s own
making; self-defeat if you will, compounded by a slew of bad choices. Sadly,
Ayatollah Ali Khamenei is quite correct when he states: "The Israelis and
the U.S. are more concerned about what would happen to their interests in a
post-Mubarak regime." … and further, ‘He also accused the United States of
propping up corrupt leaders in the region to protect its interests and those
of its ally israel.’ Unfortunately, as has become crystal clear from america’s
perpetual war in the region, the people have invariably figured last in
america/israel’s unbalanced equations. ]
Mixed signals about health of labor market (Washington Post) [ Signals? In

universal speak, flatline still means ‘dead, deceased, etc.’. I think we should
go with a gallup: Gallup Finds U.S. Unemployment Up Slightly in January to
9.9% Unemployment, as measured by Gallup without seasonal adjustment,
increased to 9.9% at the end of January — up from 9.6% at the end of
December, but down from 10.9% a year ago. Drudgereport: GALLUP:
Unemployment actually at 9.9%...
'Under-employment' at 19.2%...
Labor Force Participation Plunges To Fresh 26 Year Low...
] Drop in jobless rate from 9.4 percent to 9 percent offers little comfort because
a separate survey of employers shows that job growth was anemic in
January, with employers adding only 36,000 jobs.
Milbank: Rumsfeld offers no apology on Iraq (Washington Post) [ Well,

journalistically speaking, you know Mr. Milbank’s hit the bottom of the barrel
when he leads his article with a quote seemingly as a purported standard from
war criminal dumbya bush who probably didn’t even understand the words he
was regurgitating (see , ie., bushisms from bush the brain-damaged moron
http://albertpeia.com/bushisms.htm - sadly, wobama probably understands the
words but forgets his prior words contradicting same, campaign promises
particularly, and hence, failed presidents both). Who cares about what would be
meaningless apologies from these incompetent psychopaths. (2-3-11)
Rumsfeld Finally Confesses He Was Wrong About WMD In New Autobiography
[ Nice to know … a nation’s bankruptcy (america) and another nation’s
destruction (Iraq) later. ] Former Defence Secretary Donald Rumsfeld has finally
confessed he was wrong to claim America knew where Saddam Hussein had
stockpiled weapons of mass destruction in the first days after the Iraq invasion.
Previous: Words are cheap, in america particularly … I don’t believe anything
they say and then, as I said, words are cheap. ANALYSIS | Palin's 'blood libel'
comment backfires Washington Post) [ God knows I’m no fan of sarah palin’s
although I am constrained to admit that as a fan of Saturday Night Live, I do
appreciate her contribution to comedic content in the show. That said, this new
‘tempest in a teapot’ of her own making is a bit overdone. After all, it should be
common knowledge by now, to put it mildly, that she is quite dumb; and, like that
burnt out, dumb, war criminal and moron, dumbya bush (see , ie., bushisms from
bush the brain-damaged moron http://albertpeia.com/bushisms.htm), she also
has trouble with words; more specifically, the meanings of words. But it is also
true that wobama and his ilk have trouble with words and their meaning,
particularly when those spoken words are measured against what he does, his ilk
never seeming to discern the glaring difference … wobama the ‘b’ for b*** s***.
Lamentably (by her) and unexpectedly for palin was her failure to fully
understand ‘that jewish thing’ attached to the phrase and the tender sensibilities
of those who previously have been among the ranks of what seems more and
more to be a somewhat offbeat fanclub of sorts. Yeah, that ‘never here the end of
it’ jewish stereotype of paranoid sensibilities to religious / ethnic prejudice / slur
behind some word, phrase, or even a sneeze (spielberg’s childhood memories)
can wind up turning around and biting you’re a** ! Previously: Krauthammer:
Beyond Ariz., a reckless charge (Washington Post) [ If it were only that simple;
viz., a palin ( I’ve previously said I’m more concerned with her level of stupidity,
dumb enough in an infantile way to prove she had gonads by pressing the button
– never goin’ to happen, her being in that position), a beck, a bush, a wobama
(Drudgereport: OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring
a Gun'... ), etc., there’d be hope for pervasively corrupt defacto bankrupt america.
The fact is, the problem is inherent to america / americans themselves as I
previously wrote here and reiterate: Will: Half-baked explanations for tragedy
(Washington Post) [ Half-baked? Charlatans? The foregoing are in no short
supply in defacto bankrupt, meaningfully lawless, pervasively corrupt, fraud
prevalent america. See, for example, RICO case
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofp
erjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm
. Moreover, Mr. Will as an oftimes apologist for war criminal, pervasively fraud-
prone, defacto bankrupt, etc., america, with crime rates exceeding by far those of
any other so-called civilized nations, might indeed find himself among those he’s
so categorized. Among the last separate page sections to my website will be a
somewhat detailed psychoanalytic evolutionary profile of the u.s. (one might ask
who am I to do so which is fair comment to which I would reply, read it, or not,
your choice). However, for the nonce, let me say that the it is no small
coincidence that the 20th century has been dubbed ‘the american century’. That
the 20th century has been considered the bloodiest is at once the natural
concomitant of the foregoing reality. Keeping in mind the so-called ‘selective’
processes in both insurance (adverse) and evolutionary (Darwinian) terms, and
as well, the psychology of it all from a behavioral perspective, america has indeed
evolved. From the genocide of indigenous populations, to outlandish propaganda
in support of same (ie., that ‘manifest destiny’ balderdash with overtones of
religiosity spoonfed since elementary school, etc.), to contrived conflict / war,
such, euphemistically bad behavior has been reinforced, some of which
conditioning not always purposeful, ie., the ever greater frauds perpetrated on
wall street for which there have been in large part no real punitive consequences
to the perpetrators; but, to the contrary, great financial rewards though
substantially detrimental to the majority. Despite the surface appeal, that oft
asserted ‘blue-blood’ distinction doesn’t pass muster. Aside from the few seeking
seeking religious freedom (ie., Puritans among some others), most then new
americans were such disaffected rejects of their former homelands that
desperation at best was motivation for travel to the wilds of the ‘so-called new
world’ as opposed to intelligent, rational choice; criminals, mentally ill, the not-
so-bright but ruthless populating the new nation in disparate numbers toward the
ends consistent with greed and common criminality, corruption, and venality. As
of the age of the dinosaurs, the american century has passed into the annals of a
history replete with self-generating terrorism within and without (that blowback
thing). DRUDGEREPORT: NATION SHOCKED: CONGRESSWOMAN SHOT IN
TUCSON ]
White House mulls Egypt options as protests persist Pro-democracy

demonstrators stage 'Day of Departure' rallies (Washington Post) [ It truly is
difficult to even imagine such a scenario as ‘a transition process that would allow
Mubarak to remain as a figure head until new elections’, though the same
probably comports with america’s own pervasively corrupt style of politics as
usual (wobama a glaring current example of actions belying words, war criminal
dumbya bush, et als) which has spelled intractable decline for america
domestically and internationally (probably also comports with israel’s aims at the
expense and to the detriment of Egypt and Egypt’s citizens – also gives the cia
time to do their deals which could be whatever nefarious money-making / power
brokering scheme comes to mind). In corrupt, defacto bankrupt america, facades
count more than reality. Egyptian protesters plan new push Government
detains foreigners, says it's willing to open talks (Washington Post) [ Open talks?
‘bout what? Building a pyramid in mubarak’s honor before stepping down? He’s
done … finito … burnt as an over-micro-waved burrito! The following from the
Post is indeed the straw that broke the riders with whips he sent on camels’ and
horses’ backs! ‘Wants to die in Egypt? How touching, or the reality, he’s just
plain touched as in totally ‘out of it’. ‘…In what the U.S. State Department called
a "concerted campaign to intimidate," several dozen journalists were rounded up
by security forces and detained for hours, along with foreigners working as
teachers, engineers and human rights researchers. Across the city, angry bands
of supporters of President Hosni Mubarak also beat journalists; several reporters
said that they were threatened with death…’ ] Cairo seeks to shift blame for
clashes by rounding up journalists; U.S. worries renewed protests could spark
more violence from Mubarak supporters.
Ignored but Important - What Omitted Jobs Data means for Stocks [ What it
means is that when there are no jobs, and everyone has stopped looking, there
will be full employment which of course, is rally time for stocks … riiiiight! ]
Maierhofer, see entire article infra: ‘…The headline unemployment rate (U-3)
reported by the BLS fell to 9%, the lowest level since April 2009. How can the
unemployment rate drop 0.4% if only 36,000 jobs were added? (Much worse than
the 140,000 expected – stocks still rallied) 36,000 aren't even enough to provide
jobs for a quarter of graduates…’ Riiiiight! … that fudge factor/fraud; viz.,
discouraged / stopped looking … What total b*** s***! How desperate they are!
Previous: Initial Claims Drop More Than Expected [ Come on! Who believes
anything they say and at what cost with money not really there in pervasively
corrupt, defacto bankrupt america, with manipulated programmed suckers’ rally
into the close. …‘In the U.S. market, Slothower concludes: “This is a hard one to
gauge, given the QE2 manipulations verses skyrocketing food and energy prices,
which have now reached prices levels that have choked off growth in the past
and caused recessions, as we saw in 2008 when oil prices hit $100 a barrel (in
March of that year).” “It is like walking in a mine field. You move very carefully
now with your eyes wide open and on every move, knowing that any day
something out of the blue could blow thing up, given these extreme risks.” But
he’s now only 70% in cash. The balance is split equally between: iPath Dow
Jones-AIG Grains Total Return Sub-Index …’ Minyanville's T3 Weekly Recap:
Growing Disconnect Between Market and Economy/World ‘Bernanke said in his
comments yesterday that he is responsible for higher stock prices, but not
necessarily for sky-rocketing global food prices. Well, you can't have it both
ways, Ben. By propping up asset prices when economic data doesn't match the
ferocity of the stock market rally, the Fed is potentially creating another bubble of
sorts.Just look at today's non-farm payrolls number: There was a gain of only
36,000 jobs when 140,000 were expected. Also, unemployment fell to 9.0% -- a
positive sign for the layman, but an ominous sign for the more keen eye. Nine-
hundred thousand discouraged job-hunters left the labor force this month, after
500,000 left in the previous month. It's hard to see optimism in the stock market
continue unabated while so many Americans remain jobless…’ ‘Kung Hei Fat
Choy!: Dave's Daily …Speaking of the man with printers ink stains up to his
neck, Bernanke spoke Thursday to the Press Club stating, among other things,
"inflation remains quite low". He continued saying, "Since August, when we
announced our policy of reinvesting maturing securities and signaled we were
considering more purchases, equity prices have risen significantly...") I believe
that sums things up from an investing view. Silly people like me are standing by
watching those that can like GS and JPM take this easy money and route it
directly to the S&P futures pits, among other similar places, taking on risk the
Fed expects. Oh, and speaking of JPM, the Madoff Trustees have sued the bank
for complicity in helping steer client funds to Madoff despite complaints from
within that his results were "too good to be true"…’ Monthly Market Valuation:
Investors Are Too Bullish, Valuations Are Too High The conclusion of the
following detailed, documented analysis: ‘Wolinsky :In conclusion, the market is
over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all
indicating that investors are too bullish and valuations are too high.’ ]
Simon Maierhofer, On Friday February 4, 2011, ‘The monthly employment report
has become one of the most anticipated and talked about, but least analyzed
ritual on Wall Street.As far as the media is concerned, the Bureau of Labor
Statistics (BLS) might as well just publish the headline number, because that's
about the only thing anyone talks about.Not only does the core message of the
40+ page report go largely un-deciphered, the correlation between the
employment reports is also somewhat deceptive.This article will extract some
uncommonly reported information and point towards what is likely to move the
marketThe only other Wall Street ritual that tops monthly unemployment reports
is earnings season. Like any other ritual, it comes with many myths and fables
attached. The most common one is that unemployment directly affects stock
prices.
THE HEADLINE NUMBER ... WAIT, THERE IS MORE
The headline unemployment rate (U-3) reported by the BLS fell to 9%, the lowest
level since April 2009. How can the unemployment rate drop 0.4% if only 36,000
jobs were added? 36,000 aren't even enough to provide jobs for a quarter of
graduates.According to BLS data, the number of unemployed workers (not
seasonally adjusted) rose from 14.83 million to 14.94 million. The work force
shrunk from 153.89 million to 152.54 million. The workforce didn't actually
decline, but statistically more workers are considered discouraged and are no
longer considered unemployed.One of the most remarkable BLS data points on
the BLS site is the average number of weeks workers are now unemployed. The
jobless are unemployed for an average of 36.9 weeks, an all-time high (see chart
below).[chart]
A SHRINKING POND WITH BIGGER FISH
It is estimated that about 150,000 'youngsters' enter the work force every year.
That's why the work force has steadily increased since 1948. Courtesy of the 2008
bear market, the workforce has actually been shrinking, as discouraged workers
drop out of the statistics.Discouraged workers are those who have stopped
searching in the last four weeks. Excluding them from the workforce and the
unemployment equation artificially lowers the U-3 unemployment rate. The real
unemployment rate (U-6), which includes workers who stopped looking for jobs
or had to settle for part-time jobs - is at 16.1%.
PLAYING DETECTIVE
Based on U-6 numbers, since December 2006 as many as 13 million Americans

have either lost their jobs, or have been downgraded.The lucky few who've found
a job have to accept pay cuts. According to Annette Bernhardt, policy co-
direction for the National Employment Law Project, high wage sectors - such as
financial services (NYSEArca: KBE - News) and construction (NYSEArca: XHB -
News) - accounted for nearly half the jobs lost during the recession.Those
workers made between $17.43 - $31 an hour. Only 5% of those jobs have been
resurrected. 76% of new jobs are in low-to mid-wage industries with earnings
between $8.92 - $15 an hour.Nevertheless, stocks have shrugged off an
avalanche of bad news and continue plowing ahead towards new highs. Does
that make sense?
BIG BROTHER IS HERE
It does when you include the Federal Reserve and its quantitative easing program
in this lopsided equation. The Fed has a history of creating and ignoring
bubbles.The real estate (NYSEArca: IYR - News) bubble was allowed to get bigger
to mop up the damage of the tech (NYSEArca: XLK - News) bubble. The financial
sector (NYSEArca VHF) financing bubble was encouraged to mask the damage of
the real estate bubble. The new QE bubble is absolutely needed to prevent an
economic collapse (based on Bernanke's assessment).How long with the Fed's
quantitative easing - labeled QE2 - keep stocks afloat? We don't know for sure,
but we can tell when the stock market might enter trouble spots that could lead to
(severe) corrections.
A FORK IN THE FINANCIAL ROAD
Imagine a car cruising on the highway. The driver doesn't know it yet, but he's
heading in the wrong direction. When will he turn around? We don't know, but the
most likely place for a change of direction is the next exit.Based on various
measures of historic valuation models, the stock market (NYSEArca: VTI - News)
is overpriced (heading in the wrong direction). When will stocks stop rising and
start falling? We don't know, but the most likely place for a reversal is the next
big resistance level.The Dow Jones (DJI: ^DJI), S&P 500 (SNP: ^GSPC), Nasdaq
(Nasdaq: ÎXIC) and Financial Select Sector SPDR (NYSEArca: XLF - News) are
simultaneously pushing against major resistance. It is rare to see four major
indexes at cross roads at the same time.
A HIGH PROBABILITY TRADING OPPORTUNITY
The beauty of well-documented resistance levels is that they provide a high

probability, and a low risk trading opportunity for bulls and bears. A solid break
above resistance means hurdle cleared. Resistance becomes support and
investors can go or stay long using the prior support level as resistance.If the
index (es) stays below resistance, resistance is confirmed and a trend change is
likely. Investors/traders can go short using the resistance as a stop-loss level.All
four indexes are within 1 - 2 % of their resistance levels, which means that either
trade has a potential loss of 1 - 2%, compared to a much higher gain. Investing is
about putting the odds in your favor. There is no fail-proof system, but this setup
is about as good as it gets…’
House Republicans propose $32B in budget cuts (Washington Post) [ Well, there
you go … all over but the shoutin’ … $14+ trillion debt problem solved … riiiiight!
… Timid Tuesday: Is it Safe? Davis ‘… This is how we pay off our current
debts and I think bondholders are simply happy to get anything out of a country
that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn
(entire global GDP) in the form of unfunded liabilities. The funniest thing about
this (and you have to laugh) is to see Conservative pundits get on TV and talk
about how we need to cut $100Bn worth of discretionary spending to "fix" this
(while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top
1% each year). There is no fixing this and even a Republican said you can’t fool
all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS –
PLEASE BE CAREFUL OUT THERE! ‘] The figure represents an unprecedented
rollback that would force some agencies to cut spending by as much as 20
percent, analysts say.
Home buyers may get less government support (Washington Post) [ Uut, oh! Less
help from the pervasively corrupt, defacto bankrupt government? Well, on
the bright side, a percentage of near zero is still near zero … I guess that
non-wall street addresses just don’t rate! ] Administration officials are
looking at scaling back the aid provided during the mortgage crisis to help
the ailing real estate market. The move could make home loans in high-
priced areas such as the Washington region more expensive.
Fed dismisses inflation concerns (Washington Post) [ If you’re not used to Dave
of Dave’s Daily, see infra, ‘he talks with tongue in cheek’; meaning, inflation’s
here, including the inflated stock bubble that the frauds on wall street
commission and sell into, just as bernanke planned and admitted, with
hyperinflation around the corner, and the typical ‘bust’. Initial Claims Drop More
Than Expected [ Come on! Who believes anything they say and at what cost with
money not really there in pervasively corrupt, defacto bankrupt america, with
manipulated programmed suckers’ rally into the close. …‘In the U.S. market,
Slothower concludes: “This is a hard one to gauge, given the QE2 manipulations
verses skyrocketing food and energy prices, which have now reached prices
levels that have choked off growth in the past and caused recessions, as we saw
in 2008 when oil prices hit $100 a barrel (in March of that year).” “It is like walking
in a mine field. You move very carefully now with your eyes wide open and on
every move, knowing that any day something out of the blue could blow thing up,
given these extreme risks.” But he’s now only 70% in cash. The balance is split
equally between: iPath Dow Jones-AIG Grains Total Return Sub-Index …’
‘Kung Hei Fat Choy!: Dave's Daily …Speaking of the man with printers ink stains
up to his neck, Bernanke spoke Thursday to the Press Club stating, among other
things, "inflation remains quite low". He continued saying, "Since August, when
we announced our policy of reinvesting maturing securities and signaled we were
considering more purchases, equity prices have risen significantly...") I believe
that sums things up from an investing view. Silly people like me are standing by
directly to the S&P futures pits, among other similar places, taking on risk the
Fed expects. Oh, and speaking of JPM, the Madoff Trustees have sued the bank
for complicity in helping steer client funds to Madoff despite complaints from
within that his results were "too good to be true"…’ Monthly Market Valuation:
Investors Are Too Bullish, Valuations Are Too High The conclusion of the
following detailed, documented analysis: ‘Wolinsky :In conclusion, the market is
over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all
indicating that investors are too bullish and valuations are too high.’ ]
] Bernanke gives a mixed assessment of the nation's economic prospects.
Kung Hei Fat Choy!: Dave's Daily ‘ The above tribute to the "metal rabbit" was not
the cheer from Tahrir Square Thursday. But, U.S. investors are ignoring that
in favor of making money with some dip buying abetted by focusing on good
news (retail results) and ignoring any negative news from Egypt or even
MRK's results. The Fed tossed in another round of POMO to the tune of
nearly $9 billion which encouraged buying from trading desks. Speaking of
the man with printers ink stains up to his neck, Bernanke spoke Thursday to
the Press Club stating, among other things, "inflation remains quite low". He
continued saying, "Since August, when we announced our policy of
reinvesting maturing securities and signaled we were considering more
purchases, equity prices have risen significantly...") I believe that sums
things up from an investing view. Silly people like me are standing by
directly to the S&P futures pits, among other similar places, taking on risk
the Fed expects. Oh, and speaking of JPM, the Madoff Trustees have sued
the bank for complicity in helping steer client funds to Madoff despite
complaints from within that his results were "too good to be true". Again
dip buying was dominant with an "Egypt be damned" attitude although it
looked like some bought gold perhaps as insurance. Rumors of bank runs
throughout North Africa are present. Volume was just average with most
coming early and late. Breadth per the WSJ was mixed to positive. (You'll
note the Nasdaq share volume data means investors buying the bigger
names.) … ‘ See also re: bernanke’s folly-If You're Going to Do Economics,
Don't Do Macro [ Truth be told, I find Mr. Falkenstein’s article a bit too
subtle and somewhat shy about getting to the point, but have included same
here solely for the reprint of William Buckley’s famous quote which
comports with my own view of the ivy league vegetable gardens which turn
out as you would expect, vegetables; viz., ‘he would prefer the first 100
names in the Boston phonebook to the Harvard faculty‘. The reality is that
‘harvard professor’, ‘no-recession bernanke’ has given an obfuscating,
ephemeral feel good but lucrative to the few gift to the frauds on wall street
with ultimately devastatingly great cost / pain to come. ]
Market Crash on 2/28/11? Technical indicators suggest market collapse may

begin by February 28th
Regulators shut 3 small banks; 14 failures in 2011
Concerns Over Possible Suez Canal Disruptions New York Times | Concern has
turned to the risk of the blocking of the Suez Canal or nearby pipelines, which
could pose a threat to world energy supplies.
The Scariest Jobs Chart Ever Looks Totally Awful There are some weird things
going on in this morning’s jobs report, but the headline number was a joke,
and as such, the scariest jobs chart ever looks horrid.
Argentina Threatens To Fine Analysts Who Predict 30 Percent Inflation All

Argentine consulting firms that calculated an inflation rate higher than the
official 10.9 percent has received a letter from the government today.
They’ve been given 48 hours to explain their calculation or face a $125,000
fine, according to the FT.
Newmont CEO: Gold Is Going To $1500 This Year Newmont CEO Richard O’Brien
comments on where he thinks the price of gold is head.
Must Read: Standard Chartered Issues The Definitive Report On Global Inflation
And Its Miscontents Every now and then, Standard Chartered has a knack
for coming up with that one report that is miles ahead of the competition and
promptly becomes the definitive guidebook for the industry.
William Black Slams Financial Commission For Failing to Use the “F” Word
(Fraud) … “Elites Can Now Commit White Collar Crime with Near Impunity”
I’ve previously noted that the Financial Crisis Inquiry Commission was a
whitewash. Tuesday, senior S&L regulator William K. Black slammed the
FCIC for failing to call out fraud.
National / World
Fury Builds Over Blackouts Caused By De-Industrialization Of America Paul

Joseph Watson & Alex Jones | Obama administration’s agenda to block
construction of new coal-fired plants triggers nationwide outages.
Codex Alimentarius Loves Toxic Fluoride, Part 1 Brandon Turbeville | The goal is to
not only treat nutrients as toxins, but treat toxins as nutrients.
Millions stage anti-Mubarak protests Press TV | Protesters chant slogans against

the Mubarak regime as reports flow in about fierce clashes between
plainclothes police and protesters. Americans are Oppressed, Too
Republicans Move to Make PATRIOT Act Permanent Kurt Nimmo | The police state
act is set to expire in three weeks and Republicans are eager to make
sections of the unconstitutional legislation permanent.
Rand Paul worries GOP isn’t ‘brave enough’ to balance budget Sahil Kapur | Paul
said the GOP’s proposed budget cuts were inadequate and fretted that his party
may not have the courage to make a dent in the deficit.
Fury Builds Over Blackouts Caused By De-Industrialization Of America Fury is

building over rolling nationwide blackouts triggered by the Obama
administration’s deliberate agenda to block the construction of new coal-
fired plants, as local energy companies struggle to meet Americans’ power
demands amidst some of the coldest weather seen in decades.
Major Announcement Imminent From Egypt State TV; There’s A Rumor That
Mubarak Will Step Down Al-Arabiya says a rumor spread through Egypt this
morning that the president has agreed to step down with certain guarantees.
This produced celebrations and a tremendous feeling of relief in the crowd
at Tahrir Square, says a commentator on Al-Jazeera.
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.
Cops Brutally Beat Teen Burglar Lying On Ground
Republicans Move to Make PATRIOT Act Permanent Freshly emboldened by their

mid-term congressional wins, establishment Republicans are set to extend
the unconstitutional police state Patriot Act. It is set to expire in three weeks
and Republicans are eager to make sections of the legislation permanent.
US plan: Replace Mubarak with torture-linked ‘CIA point man’ A US plan to see
Egyptian President Hosni Mubarak leave office immediately is reportedly in
the works and would see a transitional government formed by Mubarak’s
vice-president, a former head of Egypt’s spy agency and a “CIA point man”
who facilitated the “extraordinary rendition” of terrorism suspects.
Blocking Internet cost Egypt at least $90M, says OECD The Egyptian
government’s five-day block of Internet services cost the national economy
at least US$90 million, the Organization for Economic Cooperation and
Development (OECD) said Thursday.

destruction (Iraq) later. ]Former Defence Secretary Donald Rumsfeld has finally
confessed he was wrong to claim America knew where Saddam Hussein had
stockpiled weapons of mass destruction in the first days after the Iraq invasion.
Drudgereport: UNEMPLOYMENT AT 9.0% +36,000 JOBS...

CANADA +69,200...
GALLUP: Unemployment actually at 9.9%...
'Under-employment' at 19.2%...
Labor Force Participation Plunges To Fresh 26 Year Low...
Santelli Slams CNBC Panelists for Spinning Jobs Report...
VIDEO...
BIG SIS TELLS SUPER BOWL ATTENDEES: 'SEE SOMETHING, SAY
SOMETHING'…(If only she really meant that concerning the rest of the nation, and
washington particularly – they obsessively cover up almost everything – and
saying something is dealt with quite harshly, punitively)...
SECRET DEAL: US AGREES TO TELL RUSSIA UK'S NUKE SECRETS
Gov't Debt Jumped $105.8 Billion in January...
Dems warn of shutdown...
Republicans Propose Spending Cuts...
begin by February 28th
Investment Themes for the Next Decade Simon Maierhofer, February 3, 2011, ‘Calm
seas don't make sailors. Bull markets don't make investors. Will the coming years be
calm seas or the calm before the storm?Judging by various developments brewing in
the pipeline, investors will get a chance to prove their worth in the decade following the
'lost decade.'Investing is not a sprint it's a marathon. So it behooves us to look beyond
just the next earnings season, unemployment report, or FOMC meeting and address
what could be the biggest opportunities or stumbling blocks of this decade.
Generational Shift
Starting this year, more than 10,000 baby boomers a day will turn 65, a pattern that will
continue for the next 19 years. As baby boomers age, the traditional population pyramid
is becoming top-heavy with retirees, while the workforce is shrinking.Social Security will
be strained by the growing number of baby boomers retiring and applying for benefits.
New congressional projections show Social Security running deficits every year until its
trust funds are eventually drained around 2037.A debt commission appointed by
President Obama recommended a series of changes such as increasing the retirement
age and lowering benefits. With the disappearance of pension guarantees, flat 10-year
investment returns and upside down mortgages, retirees depend on Social Security
more than ever.As a sum total, this generational shift will result in higher taxes for
younger generations (generations X and Y) and less income for baby boomers. This in
turn will shrink spendable income.A consumer that doesn't consume and/or a shrinking
consumer base is bad for business and should provide a steady headwind for the
economy and broad indexes a la the Dow Jones (DJI: ^DJI), S&P 500 (SNP: ^GSPC)
and Nasdaq (Nasdaq: ÎXIC).Sectors that might be adversely affected include consumer
discretionary (NYSEArca: XLY - News) and retail (NYSEArca: XRT - News).
The Full Faith and Credit of the United States - Worth how Much?
If the debt ceiling was a real ceiling and deficit was water, we'd have drowned by now.
But since the deficit ceiling is imaginary it's easier to kick the can down the road and
raise the ceiling.Investors of U.S. debt have taken note and are demanding more
interest to loan their money to the United States government. Interest rates for Treasury
bonds have gone up, even though the Federal Reserve's QE2 bond buying program
was supposed to do the opposite.The ETF Profit Strategy Newsletter saw the onset of
rising interest rates (in the bond world, rising interest means falling prices) and warned
subscribers on August 26, 2010:'Our technical analysis, along with fundamentals
suggests that T-Bonds are getting ready to roll over. A look at the overall picture
suggests that this is more than just a minor correction. The rally in municipal, corporate,
and high yield bonds is showing signs of weakness too. Investors should start exiting
from those markets.'30-year T-Bonds, along with municipal bonds (NYSEArca: MUB -
News), recorded their top tick on that very day and have since erased more than three
years worth of gains.A weak economy in need of more government stimulus is likely to
keep the pressure on interest rates. It would be prudent to avoid interest sensitive, long-
term maturities such as the iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT
- News) and stick with short-term debt such as iShares Barclays 1-3 Year Treasury
Bond (NYSEArca: SHY - News).
Valuations
To many, using valuations to determine the stock market's (NYSEArca: VTI - News) real
worth is about as antiquated as using smoke signals. Those ancient smoke signals may
cloud the perception of most, but they are nevertheless signals for those willing to listen
and learn.Valuations have been ignored before. Ideas and promises eclipsed profits at
the height of the technology (NYSEArca: XLK - News) boom, but just temporarily. A few
years later, real estate tried to defy the notion of fair value.It seems that periods where
valuations are out of favor are particularly susceptible to price corrections. So, where
are valuations at today?There are three main ways to measure valuations. The first one
- P/E ratios - is somewhat flawed because it is subject to financial engineering.
Accounting rule changes have made it possible for banks to inflate their earnings by
hiding real estate related losses (see June 2010 ETF Profit Strategy Newsletter for
details).But even with artificially engineered profits, the current P/E ratio is historically
rich.The second valuation measure - the Dow Jones measured in gold - takes the
Federal Reserve's money spigot out of the equation and values stocks in real money -
gold (NYSEArca: GLD - News). Ever since its 1999 high, the Gold Dow has been
declining. Based on historical patterns, the Dollar Dow always catches up with the Gold
Dow - eventually.The third valuation measure - dividend yields - is near an all-time low.
Unlike P/E ratios, you can't fudge dividend yields. Either a company has cash to spread
among investors or it doesn't. Despite dividend increases by some companies,
cumulative dividends paid by the 500 S&P constituents are about the same today as in
March 2009. In general, low dividend yields coincide with major market tops.
What Valuations Do for You TODAY
Valuations are a long-term indicator, so what can they do for you TODAY?Valuations
set the trend. In an overvalued market the larger trend is down. That doesn't mean you
have to be out of the market all the time. On March 2, 2009 the ETF Profit Strategy
Newsletter foresaw the biggest counter trend rally since the 2007 all-time high.This
counter trend rally is still going on. In fact, it has gone much further than initially
expected, but the higher prices rally the more dangerous it becomes to hold
positions.Knowing that stocks are at least 30% overvalued, it would be prudent to
monitor any decline carefully and pull the trigger before a minor correction turns into
something financially painful…’
Concerns Over Possible Suez Canal Disruptions New York Times | Concern has
turned to the risk of the blocking of the Suez Canal or nearby pipelines, which
could pose a threat to world energy supplies.
IMF Board To Discuss Expanded SDR Dow Jones | The board of the International
Monetary Fund will discuss a possible expansion of the basket of currencies that
compose the Special Drawing Right, IMF deputy managing director John Lipsky
said Friday.
Even mobster / lightweight / scoundrel wrapped in the flag donald trump Is

Warning That An Economic Collapse Is Coming In a shocking new interview,
Donald Trump has gone farther than he ever has before in discussing an
economic collapse in America.
Bernanke, BLS Lie About Inflation: Dr. Doom Faber Global inflation is far higher
than official statistics reveal, Marc Faber, editor and publisher of the
“Gloom, Boom and Doom” report told CNBC on Wednesday, with increases
in the cost of living amounting to between five and eight percent in the
United States and just below that in Europe.
Ron Paul To Ask Fed Why After Trillions In Free Money, Unemployment Is Still
Sky High Congressman Ron Paul has announced that the first Monetary
Policy subcommittee meeting will focus on one of those two now forgotten
Fed mandates, that of creating jobs.
Gold:Silver Ratio Falls as Silver Rises On September 26th, 2010, we released a

Chart Blog showing a Gold/Silver ratio that was 60.34, and specified that
silver has outperformed gold in the market by far. Now, a few months later,
we return to the same graph, only to show a different Gold/Silver ratio of
46.96!
Gallup Finds U.S. Unemployment Up Slightly in January to 9.8% Unemployment,

as measured by Gallup without seasonal adjustment, increased to 9.8% at
the end of January — up from 9.6% at the end of December, but down from
10.9% a year ago.

destruction (Iraq) later. ]Former Defence Secretary Donald Rumsfeld has
finally confessed he was wrong to claim America knew where Saddam
Hussein had stockpiled weapons of mass destruction in the first days after
the Iraq invasion.
National / World
George Noory & Alex Jones: Egypt Could be “Shot Heard Around The World” to
Start WW3 Infowars.com | Weekday host of the late-night radio talk show
Coast to Coast AM, George Noory talks with Alex about the conflict in Egypt.
“Obama Triggers Blackouts” Hits Number One On Google Trends Paul Joseph
Watson | Thanks for all our great listeners for their great effort in helping us
get the word out on this vital issue.
You Are the Resistance: Great Videos and Posters Continue to Roll In
Infowars.com | Act today so there is a tomorrow.
Days of Rage, Oil Prices, and the Suez Canal Kurt Nimmo | Concern that oil prices
will skyrocket to $250 per barrel on Suez Canal closure mirror predictions by
Lindsey Williams.
Obama Agenda To Bankrupt Power Plants Triggers Blackouts Paul Joseph Watson
| Fury as hospitals hit with outages while post-industrial collapse of America
accelerates.
Rolling Blackouts Fraud: ERCOT Admits Overcapacity Joe Wäges | The Electric
Reliability Council of Texas reported an overcapacity of about a 22%,
Shots fired inside Alabama courthouse New York Post | Shots were fired inside a
municipal courthouse in Goodwater, Ala., on Thursday with reports at least one
person being taken away on a stretcher.
Mexico supplies electricity to wintry Texas AFP | Mexico’s Federal Electricity

Commission “was determined to support Texas with electrical energy faced with
the problems the state is suffering due to climatological conditions,” a statement
said.
Egypt army takes on journalists Washington Bangla Radio USA | Authorities on

Thursday cracked down on international reporters in Egypt.
NYC Council Bans Smoking In Parks, Beaches [ Sinkhole new york has become a
national joke! ] Jessica Naziri | The council voted 36 to 12 in favor of the ban,
much to the chagrin of those who think the government is overstepping its role
into its residents’ lives.
Rebranding Big Brother Kurt Nimmo | Say hello to a boot stamping on a human
face — forever.
“Obama Triggers Blackouts” Tops Google Trends The Obama administration’s

drive to de-industrialize the US by shutting down and restricting power
plants and how this has caused rolling blackouts across the country this
week has topped both the “Hot Topics” and “Hot Searches” categories on
Google Trends today.
Days of Rage, Oil Prices, and the Suez Canal Bloomberg warns today that an act
of sabotage or a decision by a new regime – possibly headed up by the
Muslim Brotherhood – to close the canal and its oil pipeline to punish
supporters of Egyptian dictator Hosni Mubarak could send oil prices
through the stratosphere.
Obama’s Blocking Of New Power Plants Triggers Nationwide Blackouts The
rolling blackouts now being implemented in Texas and across the country
as record cold weather grips the United States are a direct consequence of
the Obama administration’s agenda to lay siege to the coal industry, launch
a takeover of infrastructure under the contrived global warming scam, and
help usher in the post-industrial collapse of America.
Obama Creates New Global Warming Rules; Exempts GE The proposed Avenal
Energy project will be a combined-cycle generating plant consisting of two
natural gas-fired General Electric 7FA Gas Turbines with Heat Recovery
Steam Generators (HRSG) and one General Electric Steam Turbine.
Revealed: “Less Naked” Body Scanners Still Store Unfiltered Naked Images As
the Transport Security Agency begins rolling out new “less revealing” body
scanners in airports, gaining much media coverage, The Electronic Privacy
Information Center (EPIC), a watchdog group that has brought several
lawsuits against the TSA over the body imaging program, has warned that
the new machines do little to allay privacy violations, indeed, they are still
capable of capturing and storing naked images.
Big Sis Cites Staged Portland Terror Plot To Expand Domestic Spy Program
Homeland Security is gearing up to accelerate the roll out of its domestic
spying program by teaming up with the Department of Justice to expand the
Nationwide Suspicious Activity Reporting (SAR) Initiative, and in doing so
cites the justification of the alleged plot to bomb a Christmas tree lighting
ceremony in Portland, a case of entrapment where the would-be bomber was
groomed, set-up and even provided with a fake bomb by the FBI.
Why Did Mubarak’s Thugs Ride In On Camels? The photos of Mubarak’s thugs
riding in on camels to attack the peaceful protesters with whips is getting
worldwide attention.
Overcoming Shame And Guilt About 9/11 Truth In The Media Nearly a decade
after the 9/11 attacks, the media’s continual silence on the worldwide
grassroots campaign to launch a new investigation into those attacks
demands an explanation.
Busted: Pro-Mubarak Thugs Are Police Officers Busted: Pro-Mubarak Thugs Are
Police Officers It should surprise no one that some if not all of the violent pro-
Mubarak forces are plain clothes police officers.
Drudgereport:'DAY OF DEPARTURE'
White House, Egypt Discuss Plan for Mubarak's Exit...
'If I Resign Today There Will Be Chaos'...
Blames Muslim Brotherhood for violence...
Crackdown Widens to Foreign Observers...
Obama response draws criticism in Israel...
UN to evacuate staff...
LIVE... WIRE... BBC...
Muslim Brotherhood wants end to Egypt-Israeli peace deal...
Kenneth Cole tweets: Egypt is rioting over our spring collection...
Jon Stewart Jokes: 'Hands off Anderson Cooper!'
Speeding Police Truck Runs Over Protesters...
ABCNEWS REPORTER THREATENED WITH BEHEADING...
CBSNEWS Lara Logan, Crew Detained...
FOXNEWS reporter, cameraman beaten, hospitalized...
The Arab revolution and Western decline...
Soros: 'The main stumbling block is Israel'...
GALLUP: Unemployment Up in January to 9.8%...
GOOGLE Gets Record 75,000 Job Applications in One Week...
Bernanke warns on 'wide' deficit; Gold goes up...
...policy 'not to blame for record food prices' [ Can anyone believe the gall of this
incompetent, lying vegetable ‘no-recession bernanke’ … this very scenario was predicted as a
natural concomitant to his inflation strategy along with his fraudulent wall bubble / wealth effect
strategy (remember those same words from senile greenspan. ]
Oil price shoots above $103...
Dems warn of shutdown over debt...
Republicans Propose Spending Cuts...
Health-care fight shifts to courts (Washington Post) [ Wow! Heck of a way to run a
nation … now in the hands of corrupt, corruptible plushly accoutered lifetime-
appointees for whom legal principles, meaningful rules of law are never a
problem or impediment nor even a predictable guide … Wall Street firm targets
District-based energy practice (Washington Post) [ From one corrupt sinkhole
(d.c. / no. virginia) to another, perhaps the largest ( wall street/new york/jersey/ct.
metro); ho, hum. The pervasively corrupt american illegal system … corrupt u.s.
courts / (lawyers) / judges: Their lifetime plush appointments should be
abolished, which corrupt entities are unheard of in productive societies as China,
Japan, etc.. Time to abolish these drags on society and eliminate their lifetime
stipends and costly bureaucracies. Rules of law mean nothing to these typically
corrupt americans. Most, including sam alito of the u.s. supreme court,
concerning drug money laundering and obstruction of justice in the 3rd circuit
( also maryanne trump barry who covered-up drug money laundering through her
brother’s casinos in a civil RICO case) should have gone to or belong in jail.
Contrary to popular belief, they do it for the money, personal money, big, cash,
untraceable money. The fog of war is great for such things (360 tons $100 bills
flown into Iraq and missing, etc.).
america’s just a fraudulent and failed defacto bankrupt nation. ] It's part of a push
by law firms to expand their D.C. footprint in an era of increased regulatory
scrutiny. ]
The unlikely face of Egypt's protesters (Washington Post) [ Unlikely? … I don’t

think so in light of the strength and prevalence of the ‘anyone but mubarak (and
his)’ sentiment. ] Mohamed ElBaradei, the Nobel Prize-winning former United
Nations bureaucrat, has emerged this week as an improbable revolutionary,
clamoring for the overthrow of Egypt's President Hosni Mubarak.
Milbank: Rand Paul's at odds with his state (Washington Post) [ Mr. Milbank …
that perpetual off-key that invariably sounds passable on an old, hopelessly
out-of-tune piano. Not even credit to Mr. Rand’s prospective ‘elections be
damned’ attitude and putting reality and conscience first (an attitude which
got him elected and which he stands by). In case Mr. Milbank hasn’t noticed,
pervasively corrupt, defacto bankrupt america has declined substantially,
particularly of late, and has strayed quite afar from the laudible principles
upon which it was founded. Mr. Milbank, organized crime families, even less
organized gangs, and certainly corrupt politicians compromise all of the
time … and that’s the nation’s problem … because some things are not
compromisable. ]
Facebook treads carefully after role in protests (Washington Post) [ Facebook

should show nor have any fear inasmuch as any such nations as would self-
destructively limit the free flow of information so limit the tenure of such
leadership of said nations. Moreover, historically, such authoritarian,
totalitarian regimes never withstand the test of time. Finally, if not facebook,
then another (choose) will step up. ] The recent unrest in Egypt and Tunisia
is forcing Facebook officials to grapple with the prospect that other
governments will grow more cautious of permitting the company to operate
in their countries without restrictions or close monitoring.
Demonstrations in Egypt take bloody turn In Cairo square, Mubarak backers

confront anti-government crowds (Washington Post) [ Not too difficult for
desperate and done mubarak to contrive: Mubarak Says Egyptians Have to
Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos
(Infowars.com) In order to justify staying in power until elections are held in
September, President Mubarak said on tv that the people had to choose between
him and “chaos”. ] The coordinated nature of day's events suggested that
Mubarak's supporters were determined to show, as he had warned, that the
country faced a "choice between chaos and stability." [ Previous: Mubarak's
pledge seen as not enough Egyptian president plans to stay in office to transfer
power (Washington Post) [ Let me put it another way: Mubarak is as done as an
over-cooked tamale … He seems to be stalling for time and even in his age
impaired mind certainly knows his position is untenable, unsustainable, and even
more irrational as each second passes. There is a possibility that he’s using
same to move money / treasure for himself and others, literally as well, buying
time. See infra … Previous: Mubarak seeks dialogue, shows no sign of relenting
Demonstrators call for massive protest but lack leadership (Washington Post)
[ He relented when he resorted to media / internet blackout. Indeed, this lack of
sign thing is a testament to how far from reality 30 years has taken him, not to
mention the other 52 years that have taken their toll on his cognitive processes.
Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged
from the events unfolding around him, one may only wonder how he lasted this
long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now
untenable position which leaves him as ‘done as a burnt enchilada’. Kissinger on
Egypt unrest – “This is only the first scene of the first act of a drama that is to be
played out” [ The import of this so-called interview, and it is here that I part
company with alex jones, et als (who by the way, censored me for this very
thesis, which puts him and his at the top of my hypocrite list), is that the so-called
elite have orchestrated these events and ‘are in control’. First, there are no elites
in this world; you can’t derive elites from apes, notochordates, and initially single
celled organisms. Second, almost by definition and certainly by history, there are
no elites in america even if you were to accept the first proposition (though true)
as untrue. What you do have, in this world and america particularly (with few
exceptions as I’ve discussed elsewhere / comments / my website), are inherent
criminals and mentally ill people of varying degrees of unscrupulousness and
insanity who do commit crimes, both small and large, to further their interests or
fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human
species at most, but still incompetent vegetables who, if you look at anything
they touch (to use a term term of such incompetent vegetables as historically
pertains to their role in the mideast – and generally the state of the world) it
invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not
messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact
is, they have absolutely no idea how this unfolds and as with most of their lives,
they will predictably choose the most sordid, despicable, and diabolical course at
every turn because … that is their inherently criminal, mentally ill / unstable
nature to do so. ]
Monthly Market Valuation: Investors Are Too Bullish, Valuations Are Too High
[ The conclusion of the following detailed, documented analysis: ‘In conclusion,
the market is over-valued based on the above data. Tobin's Q, Shiller P/E and AAII
data are all indicating that investors are too bullish and valuations are too high.’ ]
Wolinsky ‘I update market valuations on a monthly basis. The point of this article
is to measure the stock market based on seven different metrics. This article
does not look at the macro picture and try to predict where the economy is
headed. It only uses these several metrics which have been very good past
indicators of whether the market is fairly valued.This month I added in GMO’s
chart at the bottom. The GMO chart shows what the firm expects different asset
classes to return over the next seven years.I collaborate with two colleagues of
mine for some of the data in this article, Doug Short of dshort.com and my friend
who runs seekingdelta. Both are great sites, and I encourage readers to check
them out.As always, I must mention that just because the market is over or
undervalued does not mean that future returns will be high or low. From the mid
to late 1990s the market was extremely overvalued and equities kept increasing
year after year. However, as I note at the end of the article, I expect low returns
over the next ten years based on current valuations. In addition, individual stocks
can be found that will outperform or underperform the market regardless of
current valuations.To see my previous market valuation article from last month,
click here.Below are six different market valuation metrics as of February 2nd,
2011:The current P/E TTM is 16.8, which is slightly higher than the TTM P/E of
16.6 from last month (This specific data is from the market close February
1st).click to enlarge[chart]This data comes from my colleague Doug Short of
dshort.com.Based on this data the market is fairly valued. However, I do not think
this is a fair way of valuing the market since it does not account for cyclical peaks
or downturns. To get an accurate picture of whether the market is fair valued
based on P/E ratio, it is more accurate to take several years of earnings.
Numbers from Previous Market lows:
Mar 2009 110.37
Mar 2003 27.92
Oct 1990 14.21
Nov 1987 14.45
Aug 1982 7.97
Oct 1974 7.68
Oct 1966 13.96
Oct 1957 12.67
Jun 1949 5.82
Apr 1942 7.69
Mar 1938 10.63
Feb 1933 14.92
July 1932 10.16
Aug 1921 14.02
Dec 1917 5.31
Oct 1914 14.27
Nov 1907 9.35
Nov 1903 11.67
Historic data courtesy of [multpl.com]
Current P/E 10 (Shiller) Year Average 23.94
[chart] http://seekingalpha.com/article/250273-monthly-market-valuation-
investors-are-too-bullish-valuations-are-too-high?source=yahoo
The current ten year P/E is 23.94; this is much higher than the P/E of 22.94 from
the previous month. This number is based on Robert Shiller’s data evaluating the
average inflation-adjusted earnings from the previous 10 years. Robert Shiller
stated in an interview last week that he believes the S&P500 will be at 1430 in
2020. Shiller believes that based on his metric the market is overvalued, and will
offer subpar returns over the next 10 years.
Based on my colleague, Rob Bennett’s market return calculator, the returns of the
market should be as follows:
[chart]
My colleague Doug Short thinks this numbers are a bit inaccurate, because the
number I used does not include the past several months of earnings, nor
revisions. Doug calculates P/E 10 at 23.3.
[chart]
Mean: 16.39
Median: 15.77
Min: 4.78 (Dec 1920)
Max: 44.20 (Dec 1999)
Mar 2009 13.32
Mar 2003 21.32
Oct 1990 14.82
Nov1987 13.59
Aug 1982 6.64
Oct 1974 8.29
Oct 1966 18.83
Oct 1957 14.15
June 1949 9.07
April 1942 8.54
Mar 1938 12.38
Feb 1933 7.83
July 1932 5.84
Aug 1921 5.16
Dec 1917 6.41
Oct 1914 10.61
Nov 1907 10.59
Nov 1903 16.04
Data and chart courtesy of [multpl.com]
This is moderately over valued from the average P/E as shown above.
Current P/BV 2.30
[chart]
The number is obtained using data from the SPY ETF, and updated using the
latest change in the price of SPY. This number will therefore not be 100%
accurate since the book value has likely changed (slightly) since the numbers
were last updated on November 30th, 2010. The current P/BV is 2.30; this is lower
than the P/B of 2.20 I measured in my previous article. The average price over
book value of the S&P over the past 30 years has been 2.41. This indicates the
market is slighlty undervalued. Book value is considered a better measure of
valuation than earnings by many investors, including legendary investor Martin
Whitman. He states that book value is harder to fudge than earnings. In addition,
book value is less affected by economic cycles than one year earnings are. P/BV
therefore provides a longer term accurate picture of a company’s value than a
TTM P/E.
Current Dividend Yield 1.74 [chart]
The current dividend yield of the S&P is 1.74. This number is lower than the 1.78%
yield from last month.It is hard to determine on this basis whether the market is
overpriced. The dividend yield for stocks was much higher in the beginning of
this century than the later half. The dividend yield on the S&P fell below the yield
on Ten-Year treasuries for the first time in 1958. Many analysts at the time argued
that the market was overpriced and the dividend yield should be higher than bond
yields to compensate for stock market risk.For the next 50 years, the dividend
yield remained below the treasury yield and the market rallied significantly. In
addition, the dividend yield has been below 3% since the early 1990s. While I
personally favor individual stocks with high dividend yields, I must admit that the
current tax code makes it far favorable for companies to retain earnings than to
pay out dividends. Finally, as I noted above, the current economic environment
has zero percent interest rates and low bond yields. During periods where yields
are low, it is logical for income oriented investors hungry for yield to bid on the
market, and dividend yields to decrease. I think it is hard to claim the market is
overbought based on the low dividend yield.
Mean: 4.35%
Median: 4.29%
Min: 1.11% (Aug 2000)
Max: 13.84% (Jun 1932)
Mar 2009 3.60
Mar 2003 1.92
Oct 1990 3.88
Nov1987 3.58
Aug 1982 6.24
Oct 1974 5.17
Oct 1966 3.73
Oct 1957 4.29
Jun 1949 7.30
Apr 1942 8.67
Mar 1938 7.57
Feb 1933 7.84
July 1932 12.57
Aug 1921 7.44
Dec 1917 10.15
Oct 1914 5.60
Nov 1907 7.04
Nov 1903 5.57
Data and chart courtesy of [multpl.com]
Market Cap to GDP is currently 92.8%, which is higher than the 91.1% from last
month.
Ratio = Total Market Cap / GDP Valuation

Ratio < 50% Significantly Undervalued
50% < Ratio < 75% Modestly Undervalued
75% < Ratio < 90% Fair Valued
90% < Ratio < 115% Modestly Overvalued
Ratio > 115% Significantly Overvalued
Where are we today (02/01/2011)? Ratio = 92.8%, Modestly Overvalued
Stock Market Capitalization as a percentage of GDP is another metric, albeit less

commonly used than other metrics, to value the market. Between 90-115% market
capitalization as percentage of GDP is considered modestly overvalued (we are at
the low end of the range). Based on Guru Focus data, the market should return
about 4.6% per year based on the current value.
GuruFocus calculates the 4.6% returns as follows:
The returns of investing in an individual stock or in the entire stock market are
determined by these three factors:
1. Business growth
If we look at a particular business, the value of the business is determined by
how much money this business can make. The growth in the value of the
business comes from the growth of the earnings of the business growth. This
growth in the business value is reflected as the price appreciation of the
company stock if the market recognizes the value, which it does, eventually.If we
look at the overall economy, the growth in the value of the entire stock market
comes from the growth of corporate earnings. As we discussed above, over the
long term, corporate earnings grow as fast as the economy itself.
2. Dividends
Dividends are an important portion of the investment return. Dividends come

from the cash earning of a business. Everything equal, a higher dividend payout
ratio, in principle, should result in a lower growth rate. Therefore, if a company
pays out dividends while still growing earnings, the dividend is an additional
return for the shareholders besides the appreciation of the business value.
3. Change in the market valuation
Although the value of a business does not change overnight, its stock price often
does. The market valuation is usually measured by the well-known ratios such as
P/E, P/S, P/B etc. These ratios can be applied to individual businesses, as well as
the overall market. The ratio Warren Buffett uses for market valuation, TMC/GNP,
is equivalent to the P/S ratio of the economy. What Returns Is the Market Likely to
Deliver From This Level? Putting all the three factors together, the return of an
investment can be estimated by the following formula:
Investment Return (%) = Dividend Yield (%)+ Business Growth (%)+ Change of
Valuation (%)
The first two items of the equation are straightforward. The third item can be
calculated if we know the beginning and the ending market ratios of the time
period (T) considered. If we assumed the beginning ratio is Rb, and the ending
ratio is Re, then the contribution in the change of the valuation can be calculated
from this:
(Re/Rb)(1/T)-1
The investment return is thus equal to:
Investment Return (%) = Dividend Yield (%) + Business Growth(%) + (Re/Rb)(1/T)-

1
This equation is actually very close to what Dr. John Hussman uses to calculate
market valuations. From this equation we can calculate the likely returns an
investment in the stock market will generate over a given time period. In the
calculation, the time period we used was 8 years, which is about the length of a
full economic cycle. The calculated results are shown in the final chart. The green
line indicates the expected return if the market trends towards being undervalued
(TMC/GNP=40%) over the next 8 years from current levels, the red line indicates
the return if the market trends towards being overvalued (TMC/GNP=120%) over
the next 8 years. The brown line indicates the return if the market trends towards
being fair-valued (TMC/GNP=80%) over the next 8 years.The thick light blue line in
the bottom chart is the actual annualized return of the stock market over 8 years.
We can see the calculations largely predicted the trend in the returns of the stock
market. The swing of the market’s returns is related to the change in interest
rates.It has been unfortunate for investors who entered the market after the late
1990s. Since that time, the market has nearly always been overvalued, only
dropping to fairly valued since the declines that began in 2008. Since Oct. 2008,
for the first time in 15 years, the market has been positioned for meaningful
positive returns.As of 02/01/2011, the stock market is likely to return 4.6% a year
in the next 8 years.Warren Buffett has stated that market capitalization as a
percentage of GNP is “probably the best single measure of where valuations
stand at any given moment.”According to Barron’s, the ratio got as low as 40% in
the late 1940s, when investors feared another depression, and in the inflationary
1970s.
Historic Data:
Min 35% in 1982
Max 148% in 2000.
Data and charts courtesy of Gurufocus.com
Current Tobin’s Q 1.17
[chart]
Tobin's Q is 1.17 compared to 1.15 from last month.
[chart]
[chart]
As can be seen from the above charts, the market is significantly over-valued
based on Tobin's Q.The data comes from Doug Short. This is the most accurate
data that is available. It is impossible for the data to be 100% precise because the
Federal Reserve releases data related to Tobin’s Q on a quarterly basis. The best
that can be done is to extrapolate the data and try to provide the most accurate
data possible based on the change in the Willshire 5000. This is what Doug and I
did to get the current number. This method has proven extremely accurate for
calculating Tobin's Q on any given day.The current level of 1.17 compares with
the Tobin's Q average over several decades of data of approximately .72. This
would indicate that the market is extremely overvalued.In the past, Tobin’s Q has
been a good indicator of future market movements. In 1920, the number was at a
low of .30, the next nine years included phenomenal gains for the market. In 2000,
Tobin’s Q almost reached a record high of nearly 2, and the market declined
subsequently about 50% by 2003.
Historic Tobin's Q:
Market Low 1932 0.30
Market High 1929 1.06(this is not the highest number ever reached, just the
number reached before the 1929 crash).
Average historic Tobin's Q .72 (source: Stocks for the Long Run by Jeremy Siegel
In my next monthly article, I will have more Tobin’s Q historical data.
AAII Survey-42.00% Bullish, 23.70% Neutral, and 34.30% Bearish: (Data from
January 26th 2011)
With the collaboration of my colleague at seekingdelta, I have now added a

seventh metric for valuing the market. This data comes from the survey
conducted by the American Association of Individual Investors (AAII) conducted
on a weekly basis. According to the AAII:
The AAII Investor Sentiment Survey measures the percentage of

individual investors who are bullish, bearish, and neutral on the
stock market for the next six months; individuals are polled from the
ranks of the AAII membership on a weekly basis. Only one vote per
member is accepted in each weekly voting period.
[chart]
[chart]
As mentioned above, the survey results indicate investors are quite bullish. The
fact that so many investors are bullish is a contrarian warning signal. Investors
tend to get the most bullish at market tops, and bearish at market lows.Below is
AAII data from previous market bottoms (the AAII began the survey in 1987).The
charts essentially show that on average, returns have been more favorable when
bullish sentiment is below 28% vs above 50%. The 1yr avg return when sentiment
is above 50% is 1.9% vs 13.6% when sentiment is below 28%.
[chart]
[chart]
Chart and data courtesy of seekingdelta
See GMO chart here (.pdf).
To Recap:
1. P/E (TTM) - Fairly Valued
2. P/E 10 year - Very Overvalued
3. P/BV - Undervalued
4. Dividend Yield - Indeterminate/ overvalued
5. Market value relative to GDP - Moderately Overvalued
6. Tobins Q - Extremely overvalued
7. AAII Sentiment - Too bullish (overvalued)
8. GMO - Overvalued
In conclusion, the market is over-valued based on the above data. Tobin's Q,

Shiller P/E and AAII data are all indicating that investors are too bullish and
valuations are too high.However, the historical data fails to take into account
current record low interest rates. I know not many investors take issue with my
inclusion of interest rates in the equation. However, I think that investors should
look at the stock/bond alternative. Right now, you can get some blue chip stocks
with dividend yields close to the ten year treasury yield.However, eventually the
market will likely returns to normal valuation ratios as interest rates reach more
normal levels. I believe returns over the next 10 years will be sub-par (far below
the 9.5% average market return). I think we will likely see returns equal to inflation
over the coming decade.Note: I have received numerous suggestions on how to
improve my monthly series. I tried to incorporate these ideas in my current
article. Please email me or leave a comment if you would like to provide further
suggestions. Stay tuned till the beginning of next month for the next monthly
valuation article.’
The Dow at 12,000 is 'Buyer Beware' Territory Meyer ‘Well, we finally hit the 12,000
mark and beyond on the Dow Jones Industrials Average and the end-of-the-year rally is
still upon us, as many of us on Seeking Alpha forecast. However, this is now officially a
buyer's beware market. Long term investors probably don't need to start selling unless
they need the money for short-term purchases and debt reduction. But new investors
considering buying into the market now are fulfilling the odd-lot theory, at best, and will
have a long wait before those newly purchased shares are increasing in value enough
to pay back your broker's fees.Does anyone think we are going to eek out another 5% in
the averages this quarter? That would bring the DJIA up by more than 600 points to
12,636.The Dow is now at pre-crash levels of 2008. Yet, we still have high
unemployment, near zero job growth, an ongoing foreclosure crisis with home
ownership at its lowest level since 1998. This wouldn't be so much of a problem if the
vast majority of Americans garnered their wealth from their real estate. They surely do
not owe their wealth to their 401k or savings accounts. Remember when home prices
were rising and rates were low? What were Americans doing? They were going on a
ludicrous shopping spree. We are still the world's largest consumer driven economy, so
as long as Main Street isn't spending, company profits will eventually suffer. Even
though that doesn't seem to be the case now. One can imagine that companies cannot
continue posting solid top line growth if their basic customers are struggling to make
ends meet. That problem still exists in this economy, as Robert Reich pointed out his
blog Wednesday.We also have a municipal debt bomb the Feds and banks are trying to
defuse. The fundamentals are not that sound, and that tells me that this is not the time
to buy the market. Stock picking strategies of U.S. equities might work, and certain
commodity and some emerging market plays are still favorable. But index and ETF
investors looking to buy entire markets like the SPDR S&P 500 ETF (SPY) should
definitely wait for a correction before buying at these levels. I don't see any indication
now that this market can go much higher, given those aforementioned fundamental
restraints.Here are a couple more:
The BDI: Ever Hear of It?
Take a look at the Baltic Dry Index chart. It measures the worldwide price of shipping
various bulk items across the ocean. It's trading way below its 50 and 200 day moving
averages. The BDI is not a leading indicator, or a lagging indicator, of the U.S.
economy. But it warrants some attention when the BDI chart looks like a really bad roller
coaster like it has since last summer. BDI topped out in June, bounced in July, and
began a serious decline in November. The only thing that tends to track the BDI is the
Shanghai Composite Equity Index. China is one of the world's biggest exporters, but
with costs of capital rising there, importers of Chinese goods are being asked to pay
more for their orders, causing many buyers to slow imports. If this slower growth out of
China pans out, then economists will be revising their global GDP numbers downward.
This indicator could pose to be quite bad for equities simply because it is telling you the
growth story of the economy, which has driven the fundamentals behind the current
rally, is not sustainable at these levels. The rally continues to be a liquidity driven
momentum rally thanks to QE2. The lynchpin of the whole advance was the theme the
global economy was in recovery, but I am concerned that this important trade index is
showing us something different for the time being.
DJIA vs. Gold Bull Market Peaks
Is the Dow overbought? I think so, and technically speaking we are now seeing less
stocks advancing than we have when we were approaching Dow 12k. Corporations are
also busy selling their own stock over the last month and a half. There is an important
correlation between the Dow and the price of gold in previous bull market peaks. The
Dow, as priced in gold, is losing value as the precious metal bull continues to drive to
higher prices. For example, in 1980, one ounce of gold bought the Dow. So the ratio of
one ounce of gold to the Dow was simple: 1. Said in another way, we had an 850 Dow
Jones Industrials Average and $850.00 per ounce gold. The Dow as priced in gold is
not making new recovery highs as most people would want to believe.The first peak in
the Dow occurred on January 14, 2000 at 11,723. In late 1999 it took 45 ounces of gold
to buy the Dow. Gold bottomed at $255.00 per ounce. Everyone wanted equities and
the gold-Dow ratio proved it.The second peak in the Dow occurred on October 9, 2007
at 14,164 points. It took just 19 ounces of gold at $750.00 per ounce to buy the
market.The Dow is now trading at the 12,000 level again on Wednesday and gold is
currently $1325.00 per ounce. It now takes just 9 ounces of Gold to buy the Dow. I don't
think we go to a one to one ratio, but I would say we cut the 9 ounces ratio in half and
that would likely single a top in at least one of these markets.If we go on the premise
that gold is the ultimate money and both a storage of wealth and a hedge against
inflation, then the Dow priced in gold has been eroding in value since late 1999 when
you needed at least 45 ounces of gold to have the equivalent of the gains in the Dow.
The buying power of the dollar propelling the Dow 12k continues to lose value as
reflected in the current price of gold at $1,340.00 per ounce, and expectations are for
the euro to rebound a bit. The Dow 12k is also occuring in an economy where job
growth remains impressively sluggish. This is a buyer beware market when buying
broad based indexes like the Dow and S&P 500. Overall, when this market does
correct 5% or more, I believe it will drag a lot of the more liquid assets down with it. I'd
recommend a hold for long term investors and a sell at these levels for investors
with short-term cash needs. We're not seeing an expansion of volume on the
advance. This market is resisting any kind of sell-off. I think the pros are fully invested
and this market is up two years in a row from the lows so this market looks to me that
it's now setting up for a reversal. Don't add at these prices. Get your shopping list
together for your sector favorites and wait for a pull back.’
If You're Going to Do Economics, Don't Do Macro [ Truth be told, I find Mr.

Falkenstein’s article a bit too subtle and somewhat shy about getting to the point,
but have included same here solely for the reprint of William Buckley’s famous
quote which comports with my own view of the ivy league vegetable gardens
which turn out as you would expect, vegetables; viz., ‘he would prefer the first
100 names in the Boston phonebook to the Harvard faculty‘. The reality is that
‘harvard professor’, ‘no-recession bernanke’ has given an obfuscating,
ephemeral feel good but lucrative to the few gift to the frauds on wall street with
ultimately devastatingly great cost / pain to come. ] Falkenstein ‘MIT had a
celebration of their 150th birthday, a Symposia on Economics and Finance: From
Theory to Practice to Policy. Here's Bob Hall's solution to our problems (see
around 50:00):
What we really like is for people to perceive that now is a great time
to buy stuff instead of later, well there's nothing like inflation to get
that mentality going. Normally we don't like to see that, we want to
keep inflation under control because it's a sign of an overheated
economy, well, we'd like a bit of that overheated economy now ...
When the government buys more stuff, every model agrees that
stimulates the economy...any economist who suggests that it doesn't
stimulate the economy hasn't looked at a wide range of models, all of
which agree ...
Hey, the models all agree! In other words, if you look at the aggregate data, all we
have here is a lack of demand. Just replace the missing private sector investment
with government purchases, or by confusing investors and hoping they mistake
nominal price increases for real demand, and all will be well. Most of the
macroeconomists suggested that all we need to do is double down on the
stimulus -- only the political will is lacking for this obvious solution.What we had
was a misallocation -- too much housing -- and so now must move labor and
capital to other areas, which creates temporary unemployment. To try to cover
this up via having the government spend more on backfilling teacher's pensions,
or have everyone buy an unsustainable amount of everything, would not solve
this problem faster. Notice they don't spend any time discussing what
government would spend this stimulus on because it doesn't matter to them. It's
fun to think a solution to a hangover is more of a different type of alcohol, but I've
tried it, and it doesn't work.Unfortunately Keynesians don't have any intuition for
this, because everything's all just "aggregate demand," not housing, technology,
energy, etc. Aggregation leads to simplifcation, but clearly it has a cost, and I
think any macro theory that ignores the fact that an economy is a network of
firms and individuals is pointless.Hayek's early work on business cycles focused
on misalignments in the structure of production. Alas, this was basically
impossible to formalize. Keynes' model, meanwhile, was adopted into the
Hansen-Hicks synthesis that looked a lot like the simple Supply/Demand
equations economists were used to, so everything seemed copacetic. A bad idea,
in a tractable model, has a long life, because everyone forgets about all the hand
waiving assumptions that underlie such models.Joshua Bell is a famous violinist,
but when he did an experiment, and played his $3.5MM violin at a train station, he
made only $32. Reputation matters. In Bell's case, passersby did not realize he
was truly a gifted violinist. In this case, while this was supposedly our best and
brightest giving insight on the big issue of the day, the audience was treated to
standard diagnoses and recommendations you hear everywhere on the left: we
had a collapse in demand, so the government needs to spend more, or trick
people into spending more via money illusion. If one wanted a better anecdote for
William F. Buckley's famous remark that he would prefer the first 100 names in
the Boston phonebook to the Harvard faculty, I can't think of one. As Cicero said,
the purpose of wisdom is to know the good, in which case these people would
have done better with the proverbial dollar fifty in late charges at the public
library, rather than attend the esteemed establishment they were celebrating.On
the other hand, Google's (GOOG) chief economist, Hal Varian noted that Yahoo!
(YHO), Microsoft (MSFT) and the rest are all hiring economists to design services
based on game theory and other microeconomic specialties. This is in contrast to
banks, that basically all went from having a large economic staffs in the 1970s,
but a flak PR guy today for CNBC interviews. Bottom line: if you are going to do
economics, don't do macro.’
Stock Averages Straddle Flat Line, Dow Up for Third Day [ Note: ‘…The economy
added 187,000 private-sector jobs in January, the 12th consecutive month of private-
sector employment growth, according to Automatic Data Processing. BUT ADP
LOWERED ITS DECEMBER FIGURE TO 247,000 NEW JOBS FROM A PREVIOUS
ESTIMATE OF 297,000…’ (That’s near 20%, do you how many upside points were
based on that fudged inflated figure?). ]
40 Percent Of Egyptians Live On 2 Dollars A Day Or Less And The Global Elite
Like It That Way After thousands of years of “progress” and “societal
evolution”, how is it possible that most of the world is still living in soul
crushing poverty?
Here’s The Real Cost Of Food Inflation In America Take a look at the chart we’ve
constructed from the Bureau of Labor and Statistics 2009 Consumer
Expenditure Survey. It conveys a sense of how Egypt’s poverty combined
with the sharp rise in food prices sparked the political revolt against the
Mubarek government.
US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More
Than Previous Highest Month As the topic of US Mint silver sales is not new
to our readers, after we first brought attention to the record January sales by
the Mint, we will not dwell much on it, suffice to say that the final January
tally is in.
National / World
Resistance is Victory: Check Out the Last Contest Entries Infowars.com | With
your creative participation, we will get the message out.
Rebranding Big Brother Kurt Nimmo | Say hello to a boot stamping on a human
face — forever.
Minority Report: Companies Push For Ubiquitous Iris Scanning Steve Watson |
Expiring technology patent insures that you will soon have your eyes
scanned everywhere you go.
Latest Round of Wikileaks Docs Hype Manufactured Terror Kurt Nimmo | It is now
obvious Wikileaks is an intelligence operation and its frontman Julian
Assange is a useful idiot.
Wikileaks Bombshell Points To 9/11 Stand Down Paul Joseph Watson | Able
Danger program confirmed hijackers were identified before attack, CIA
allowed them to enter America
300 reported dead in Egypt protests Haareetz | U.N. human rights chief said on
Tuesday she had unconfirmed reports that up to 300 people may have been killed
and over 3,000 injured.
Move Over Egypt: Homeland Security Shuts Down Sports Websites The federal
government has seized the Web addresses of ten websites that allegedly live
stream sporting and pay-per-view events online, shutting them down just
days before one of the biggest televised sporting events of the year: the
Super Bowl.
Minority Report: Companies Push For Ubiquitous Iris Scanning The impending
expiration of a key technology patent is paving the way for a scramble
amongst scores of biometrics research and development companies, all
desperate to make their own brand of iris scanning technology
commonplace, effectively creating a real life Minority Report society, where
everyone is linked into an identification database.
U.S., U.K. Companies Help Egyptian Regime Shut Down Telecommunications and
Identify Dissidents Doing the regime’s bidding, British-based Vodafone shut
down Egypt’s phone and internet service. The American company called
Narus — owned by Boeing — sold Egypt the surveillance technology that
helped identify dissident voices.
V For Superbowl Victory Activists take the V For Victory campaign to Arlington
Texas and the Super Bowl, getting right back in Big Sis’ face after Homeland
Security announced that they would be bringing airport-style security
harassment and See Something, Say Something snitch programs to sporting
arenas.
The Father Of Weaponized Weather In this exclusive interview for Prison Planet.tv
subscribers, Livingston explains how for decades the US government has
had the power to both lessen and increase the severity of adverse weather
for their own purposes.
Wikileaks Bombshell Points To 9/11 Stand Down Newly released Wikileaks

documents concerning the activities of three Qatari men who conducted
surveillance of the World Trade Center and boarded flights on the eve of the
9/11 attacks adds to the plethora of evidence that at the very least US
authorities were aware of the plot and deliberately stood down.
Nothing Is Stable Anymore The world is becoming a very unstable place, and the
pace at which things are changing all around us has become absolutely
mind-numbing. In fact, change has become one of the only constants in
today’s world.
Revolutionary Fervor to Spread Beyond Arab States; Europe Next When the
Tunisian government toppled, the mass media and their stable of experts
who were blindsided by these events quickly stepped in to proclaim the
obvious: that citizens of other Arab nations would be emboldened to
challenge autocratic and corrupt governments.
Obama administration issues hundreds of health care exemption waivers to

friends If Obamacare is everything the administration claims it to be, then
why are government officials secretly handing out exemption waivers to
friends and insiders?
Internet restored in Cairo after revolt blackout Internet services were at least
partially restored in Cairo on Wednesday after a five-day cut aimed at
stymieing protests against President Hosni Mubarak’s regime, Internet users
said.
Violence Flares As Protesters, Mubarak Supporters Fight in Cairo Opponents and

supporters of President Hosni Mubarak fought with fists, stones and clubs
in Cairo Wednesday in what appeared to be a move by forces loyal to the
Egyptian leader to end protests calling for him to quit.
Wikileaks Documents Recycle Dirty Bomb Propaganda The corporate media

today is chock full of stories about the latest round of supposed diplomatic
documents purloined by a low level Army intelligence analyst. According to
the documents, the CIA asset al-Qaeda has managed to acquire “workable
and efficient” biological and chemical weapons and the West stands on the
brink of a “nuclear 9/11.”
The Protest Movement in Egypt: “Dictators” do not Dictate, They Obey Orders
The Mubarak regime could collapse in the a face of a nationwide protest
movement… What prospects for Egypt and the Arab World?
Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then
Sends In His Thugs to Stir Up Chaos In order to justify staying in power until
elections are held in September, President Mubarak said on tv that the
people had to choose between him and “chaos”.
“People All Over The World Who Want Freedom, Somehow Or The Other Feel
Connected To Other People Who Are Struggling For Freedom.” Nobel Peace
Laureate and leader of Burmese democracy movement, Aung San Suu Kyi,
told the Egyptian protesters: “People all over the world who want freedom,
somehow or the other feel connected to other people who are struggling for
freedom.”
Drudgereport: Amanpour: Angry mob surrounded us, shouting they hate America...
WH shuts out media; reporters file complaint...
CNN Anderson Cooper 'punched 10 times in head' by mob in Egypt....
'Camp David made us a slave,' Egyptian protester says...
WIKILEAKS: US threats to China in military standoff over 'Star Wars'...
Student, 14, suspended for 'weapon' -- a plastic pen casing...
WIKILEAKS: FBI hunts the 9/11 gang that got away...
43 Million Use Food Stamps...
Dems object to GOP gov't transparency probe...
JUDGE RULES HEALTH CARE LAW UNCONSTITUTIONAL
Judge cites Obama's own position from 2008 campaign...
Brent crude oil above $100 for 1st time since 2008...
FLASHPOINT
Fighter jets swoop over Cairo in show of force...
Mubarak meets with military commanders...
Generals tell him to quit...
Troops move into Tahrir square as curfew passes...
ElBaradei joins protesters in square...
Says US 'losing credibility by the day'...
Clinton calls for 'orderly transition'...
'We're not advocating any specific outcome'...
Convicts pour out of prisons...
UPDATE: 100+ dead; 2,000 injured...
Flights out halted, tourists trapped...
But 19 private jets get out...
Egypt shuts down Al Jazeera bureau...
LIVE STREAM...
OBAMA CONFUSES IRAQ WITH AFGHANISTAN...
Will be out 'by the end of this year'...
Scientists Discover: Chimpanzees mourn their dead just like humans!
11% of All US Homes Are Now Empty...
Report: U.S. unlikely to reach electric car goal by 2015 (Washington Post) [ I think
all benefits of doubt be given to the auto companies in terms of the market
and, ultimately, for the following reason: {Previous: S. American
mountains hold key to electric car's future: lithium for batteries (Washington
Post) [ Well, I don’t know about electric car batteries, but it’s reassuring to
know that such american leaders in no short supply, ie., Ted Turner, et als,
will have no short supply of lithium to keep them on an even keel (from the
ups and downs from, ie., bipolar among other mental conditions). Truth be
told, I’ve not followed the ‘adventures of the electric cars’ too closely, but
concede that pollution as from gas engine cars is lessened. I know enough
about electricity and energy to know that there’s really no net gain in terms
of conservation, weening off oil, hydro, nuclear since the same are required
to produce the electricity; hence, increases in hydro / nuclear, ie., are
necessary to change the reliance on oil (imports). } ] Obama's goal to have
a 1M plug-in cars on the road may be stymied by automaker, consumer
uncertainty
Israel wary of transition in Egypt, concerned about regional stability (Washington

Post) [ Who cares what the paranoid, war criminal, illegal nuke totin’, war
criminal israelis are wary of. This country has gone down the tubes cow-
towing to the paranoid, self-interested concerns of the psycho / sociopathic
zionist israelis who are forever projecting their own pathological motives to
every turn of history while ignoring their own culpability in producing the
very outcomes they purportedly seek to avoid. War, conflict, greed,
bloodshed is the historically based israeli way. ]
Fresno tackles an unusual problem (Washington Post) [ Oh come on! Let’s call
things as they are! Sputnik moment … p l e a s e , spare me the b*** s***
wobama the b. This is not ‘up, up, and away’ to bigger and better things, but
rather an industry catering to the long predicted aging baby boom
population. The structural deficits, including jobs, will continue owing to
prior misguided self-interested policy for the ‘few’.] This California city is
grappling with one of the most troubling contradictions of the new economy:
Even as it has one of the nation's highest unemployment rates, it has
thousands of job openings.
Jobless Recovery?: 25 Unemployment Statistics That Are Almost Too Depressing To

Read ‘… Unemployment is up again! That’s right – even though Wall Street is
swimming in cash and the Obama administration is declaring that “the recession is
over”, the U.S. unemployment rate has gone even higher ... Times are really, really
tough and unfortunately the long-term outlook is very bleak.
#1 U.S. unemployment rate for November was 9.8 percent. This was up from 9.6
percent in October, and it continues a trend of depressingly high unemployment
rates. The official unemployment number has been at 9.5 percent or higher for
well over a year at this point.
#3 economists had been expecting to add about 150,000 jobs in November.

Instead, it only added 39,000.
#4 In the US there are over 15 million people who are “officially” considered to be
unemployed for statistical purposes. But everyone knows that the “real” number
is even much larger than that…
.. biggest debt bubble in the history of the world…our entire economy is based on
debt. Even our money is debt. … There is a sea of red ink on every level of
American society. It is only a matter of time before it destroys our economy. IF
YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT. THINGS ARE GOING TO
GET A WHOLE LOT WORSE. A HORRIFIC ECONOMIC COLLAPSE IS COMING,
AND IT IS GOING TO BE VERY, VERY PAINFUL.’

United States.

Mexico.

degrees.

degrees.
based on debt. Even our money is debt. … There is a sea of red ink on every
level of American society. It is only a matter of time before it destroys our
economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT. THINGS
Dow closes above 12,000 (Washington Post) [ Which is a manipulated bubble

and which amount is worth far less than even 3 years ago owing to dollar
debasement… Avoid China, short the U.S. market instead Kee ‘…The subject of
international investing begs the buy and hold theme as a result, but because that
is dead, and because risk controls are more cumbersome in foreign markets, my
focus is on proactive strategies in U.S. markets, on risk controls, and my longer
term Periodic Oscillator tells me that the economy, thanks to stimulus, is in
bubble-like territory not seen since 2000 and 2007…’ Suttmeier … Stocks
remain overvalued fundamentally according to ValuEngine with 15 of 16 sectors
overvalued
New Monthly Value Levels, Pivots, and Risky Levels Editor's Note: This article
was written by Richard Suttmeier, chief market strategist at ValuEngine.com …
The US Capital Markets are under the influence of new monthly value levels,
pivots and risky levels from my proprietary analytics. Today I add them to my risk
/ reward statements for the markets that I follow; The US Treasury 10-Year yield,
Comex gold, Nymex crude oil, the euro, and the major equity averages focusing
on the Dow Jones Industrial Average.
The US Treasury 10-Year Yield -- (3.380) The monthly chart favors higher yields
with the 120-month simple moving average at 4.121. The daily chart still shows
the trading range set in December between 3.568 and 3.247. Today’s value level is
3.444.
Comex Gold -- ($1331.0) The monthly chart continues to dhow an overbought

parabolic bubble. The daily chart shows gold trying to rise out of an oversold
condition. This week’s value level is $1319.7 with quarterly and annual pivots at
$1331.3 and $1356.5 and new monthly risky level at $1412.4.
Nymex Crude Oil – ($91.91) The monthly chart favors higher oil prices ahead. Oil
traded above $92 per barrel again but closed below that chart resistance. My
semiannual value level is $87.52 with weekly and monthly pivots at $89.91 and
$91.83 and annual risky levels at $99.91 and $101.92.
The Euro -- (1.3685) The monthly chart favors a higher European currency. The
daily chart continues to show an overbought condition. Weekly and quarterly
value levels are 1.3265 and 1.3227 with a daily risky level at 1.3859 and monthly
Stocks remain overvalued fundamentally according to ValuEngine with 15 of 16

sectors overvalued and only 38.8% of all stocks undervalued. On December 19th
we had a ValuEngine Valuation Warning with 33.3% of all stocks undervalued,
below the important 35% threshold, and all 16 sectors were overvalued.
All major averages remain overbought on their weekly charts and my Proprietary
Analytics show new monthly value levels and weekly risky levels, which should
keep stocks balanced in February.
• The Dow Industrial Average shows monthly and annual value levels at
11,759 and 11,491 with weekly and daily risky levels at 11,959 and 12,005.
• The S&P 500 has quarterly and monthly value levels at 1262.5 and 1247.6
with daily and weekly risky levels at 1293.7 and 1308.5.
• The Nasdaq has a monthly value level at 2611 with a daily pivot at 2700 and
weekly and quarterly risky levels at 2769 and 2853.
• The Dow Transports has a quarterly value level at 4671 with monthly and
daily pivots at 4962 and 4991 and weekly and annual risky levels at 5104
and 5179.
• The Russell 2000 shows quarterly and monthly value levels at 765.50 and
741.74 with daily and annual pivots at 777.01 and 784.16 with a weekly risky
level at 809.88.
• Following the Dow look for continued strength as long as closes are above
my monthly value level at 11,759. A close below 11,759 targets the annual
value level at 11,491.
Bank Failure Friday -- The FDIC closed four more banks last Friday and one was
publicly traded and on the ValuEngine List of Problem Banks.
• The FDIC closed a total of 157 banks in 2010; 41 in the first quarter, 45 in
the second quarter, 41 in the third quarter and 30 in the fourth quarter.
• I still predict 500 to 800 bank failures in total by the end of 2012 into 2013.
The publicly traded bank was First Community Bank, Taos, New Mexico (FSNM).
This bank is on the ValuEngine List of Problem Banks with overexposures to both
C&D and CRE loans: The C&D ratio to risk-based capital at 651.8% versus the
100% maximum guideline, and 1946.4% for CRE loans versus the 300% maximum
guideline. The bank’s real estate loan pipeline is stuffed at 96.9% where 60% is a
healthy pipeline. It’s amazing to me how slow the FDIC has been in closing banks
that no longer deserve to service Main Street, USA.’
Persistent Pattern: Stocks Like Early Days Of The Month [ Everything and
anything but fundamentals and value! ]Harding ‘I call it the “monthly strength
period,” the strong tendency for the market to be up for the first few days of each
month. It’s a pattern that’s been around for a very long-time. Norman Fosback
first pointed it out in his 1976 book, Stock Market Logic. Few investors are aware
of its importance. The history is for the market to average almost half of its
monthly gains in just the first three or four days of the month. The last day of the
month also often participates because savvy traders pile into the market in
anticipation of a similar rally in the first few days of the next month.The latest
example? The S&P 500 was up 29.4 points or 2.3% for the month of January. But
guess what? The gains on just the first four days, and the last day of the month
totaled 29.8 points.In 2009, the S&P 500 was up 23.3% for the year, but the gains
on the first three days of each month amounted to 9.2% for the year, 40% of the
year’s total gains. In 2010 the tendency for strength over the first three days of
the month was even more obvious.The S&P 500 gained 142.5 points, or 12.8% for
the year. Its gains on just the first three days of each month totaled 228.9 points,
or 20.5%. An investor didn’t actually gain anything in 2010 by being invested on
other than those first three days each month.So despite all the time and effort
analysts spent last year debating and forecasting the effect on the market that
would come from the economic and political changes, the weak economic reports
in the summer, the Fed’s QE2 decision, the mid-year elections, corporate
earnings, etc., what actually had the most influence; those hotly debated issues,
or the Fed, or a simple market pattern?I have no interest in market patterns that
have no clear and reasonable explanation. Don’t talk to me of the ‘super bowl’
indicator, or the history of years ending in 5 tending to be positive years, or ‘As
goes January so goes the year.’ Not interested.The ‘monthly strength period’, like
annual seasonality and the Four-Year Presidential Cycle, has a very clear
explanation.Sizable extra chunks of money automatically flow into the market at
the end of each month. They come from investors who follow the strategy of
dollar-cost averaging into the market on a monthly basis; from the monthly
contributions of employees and employers to IRA and 401K plans; monthly
dividends on stocks and bonds, most of which are marked for automatic re-
investment, etc. (A study some years ago showed that 65% of all preferred-stock
dividends and 90% of the interest payments on municipal bonds are paid on
either the first or last day of the month, a huge amount of money).Obviously the
pattern is useful in short-term trading. But how is it useful in almost any
strategy?If you’re going to put money in the market for whatever reason and it’s
near the end of a month it will usually pay to do so by the last day of the month in
order to pick up the extra gains likely in the first few days of the next month. If
you’re planning to sell a holding or take money out of a 401K or IRA plan, and it’s
near the end of a month, it usually pays to wait for the fourth day of the next
month to do so.Knowledge of the pattern can also be helpful in preventing an
emotional reaction to events. I told my subscribers not to react too quickly to the
turmoil in Egypt and Friday’s market plunge because “we are now in the period
around the end of the month when the market tends to be positive for at least a
few days.”This time around, awareness of the pattern might also prevent
investors from being overly optimistic that the market reaction to the turmoil in
Egypt only lasted one day. It might be wiser to wait and see what happens after
the first three or four days of February.’
[chart]


[chart]

close to keep suckers suckered does not change the aforesaid. This is
particularly evident in their attempt to cash in on that superstitious scam known
as the ‘January effect’ by way of these manipulated bubble-making buy
programs; you know, loosen / soften the suckers up for the coming year’s new
fraud / scam. ] The 'January Effect' Is More Market Myth Than Sound Analysis ...
Kumar ‘…January of 1929, for example, was off to a brisk start as the Dow Jones
Industrial Average climbed to 317 from 307. But investors would be slammed later
in the year by a historic stock market crash that heralded the start of the Great
Depression. January of 1987, too, began nicely. The Dow climbed to 2160 at the
end of the month after starting out at 1927. But Black Monday would hit investors
in October of that year, leading to the sharpest historical stock market decline in
percentage terms. More recently, January 2001 had a strong showing when the
Dow Jones finished the month at 10,887 after starting at 10,646. Those reading it
as an auspicious beginning would be hit first by the further fallout from collapse
of the dot-com bubble and then the massive decline following the September 11
terrorist attacks. See full article from DailyFinance: http://srph.it/cyaPDT ‘… Then,
more recently there’s ‘The stock market scored a strong gain and locked in its
first positive finish for January since 2007 (we all know what happened after that!
Crash!) with help from the energy sector, which climbed sharply in response to a
spike in oil prices.(Yahoo/Briefing.com) … Higher oil prices … riiiiight! … that
sounds bull(s***)ish … on fraudulent wall street. ]
IMF Board To Discuss Expanded SDR Dow Jones | The board of the International
Monetary Fund will discuss a possible expansion of the basket of currencies that
compose the Special Drawing Right, IMF deputy managing director John Lipsky
said Friday.
The Road to Madness Is Paved With $100 Bills Zero Hedge | Indeed, all of
Bernanke’s monetary policies and actions can be traced to his one core belief:
that the US Federal Reserve didn’t do enough to stave off the Great Depression.
IMF, warning of war, says ready to help Egypt AFP | Dominique Strauss-Kahn
said rising food prices could have “potentially devastating consequences” for
poorer nations.
IMF Vultures Want Into Egypt The International Monetary Fund stands ready to
help riot-torn Egypt rebuild its economy, the IMF chief said Tuesday as he
warned governments to tackle unemployment and income inequality or risk
war.
Officials Warn Wall St. About Possible Terror Attacks Security officials are
warning the leaders of major Wall Street banks that al Qaeda terrorists in
Yemen may be trying to plan attacks against those financial institutions or
their leading executives, NBCNewYork has learned.
Unemployment Plagues Economy Despite Claims Of Recovery Unemployment

continues to plague our economy. In spite of constant claims that we have
just turned the corner into recovery, the jobs reports remain grim with no
real signs of improvement.
The Road to Madness Is Paved With $100 Bills Ben Bernanke is insane. I mean
neither insane in a flippant sense, nor in the ordinary sense (as in plain
nuts), but an even more insidious form of insanity, namely the insanity of
one who cannot see the world as a place outside his own thoughts and
beliefs.
The Coming Collapse of Commercial Real Estate is Already Here, Says

Davidowitz ‘…From Wal-Mart to Sears to Target to Best Buy, if you look at what is
happening in the retail space, "it looks pretty scary," says retail expert Howard
Davidowitz. Wal-Mart -- the world’s largest retailer – has seen six consecutive
quarters of negative same-store sales and is now looking to put the majority of its
investment capital towards emerging markets.In the case of Target and Best Buy,
they both recently missed major key earnings expectations. Making matters
worse, Best Buy “tanked” even without the competition from the now defunct
Circuit City, Davidowitz points out.Tale of Two StoresThere is a sea change
happening in retail, Davidowitz tells Aaron in the accompanying clip. Consumers
are spending more now than during anytime in the last three years, but they are
choosing to spend more and more online than in brick-and-mortar
stores.Companies like Apple, Amazon, Netflix are doing gangbuster business
while the aforementioned struggle to keep pace. Why go to the store – be it
record store, book store or movie rental store – when you can buy all you need
right from the comfort of your own home and have it delivered to your front door
or digital media device?The Walls Are CollapsingA coming collapse in
commercial real estate has been looming for the last couple years, but Davidowitz
thinks it has already begun. “… there has [already] been a partial collapse in the
commercial real estate business,”
National / World
Neocons Exploit Fear of Muslim Brotherhood to Push War Kurt Nimmo | The
Muslim Brotherhood is a vital component of the globalist intelligence
conglomerate and its long running and ongoing campaign to create and
exploit Islamic terror.
TSA Invades Roads & Highways With VIPR Checkpoints Paul Joseph Watson |
Roadside inspections to be expanded from rest stops, say TSA officials.
Judge Cites Obama Flip-flop in Health Care Ruling Kurt Nimmo | A federal judge in
Florida ruled that Obama’s so-called health care reform legislation is
unconstitutional.
Mubarak gives army shoot-to-kill order Press TV | Embattled Egyptian President

Hosni Mubarak has reportedly given his armed forces the authority to shoot-to-
kill as anti-government protests gain momentum.
TSA Invades Roads & Highways With VIPR Checkpoints The TSA has announced
its intention to expand the VIPR program to include roadside inspections of
commercial vehicles, setting up a network of internal checkpoints and
rolling out security procedures already active in airports, bus terminals and
subway stations to roads and highways across the United States.
Ron Paul: Middle Eastern Revolt Stems From US Upholding Authoritarian

Regimes Congressman Ron Paul outlined his feelings on the uprising in
Egypt, noting that violent revolts will continue throughout the middle east so
long as there is an unfettered globalist agenda to dominate the region
through propping up tinpot dictators and tyrants.
Bolton: If Mubarak falls in Egypt, Israel should bomb Iran Former US Ambassador
to the United Nations John Bolton said the ouster of embattled Egyptian
President Hosni Mubarak would speed the timetable for an attack on Iran’s
nuclear facilities.
Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama
that is to be played out” [ The import of this so-called interview, and it is
here that I part company with alex jones, et als (who by the way, censored
me for this very thesis, which puts him and his at the top of my hypocrite
list), is that the so-called elite have orchestrated these events and ‘are in
control’. First, there are no elites in this world; you can’t derive elites from
apes, nordochords, and initially single celled organisms. Second, almost by
definition and certainly by history, there are no elites in america even if you
were to accept the first proposition (though true) as untrue. What you do
have, in this world and america particularly (with few exceptions as I’ve
discussed elsewhere / comments / my website), are inherent criminals and
mentally ill people of varying degrees of unscrupulousness and insanity
who do commit crimes, both small and large, to further their interests or
fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the
human species at most, but still incompetent vegetables who, if you look at
anything they touch (to use a term term of such incompetent vegetables as
historically pertains to their role in the mideast – and generally the state of
the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist
kissinger not messed up as appointee or ‘consultant’ – what does he get
paid for? No! The fact is, they have absolutely no idea how this unfolds and
as with most of their lives, they will predictably choose the most sordid,
despicable, and diabolical course at every turn because … that is their
inherently criminal, mentally ill / unstable nature to do so. ] Bilderberg
puppet master Kissinger warns that the uprising is a temporary state of
affairs, “only the first Scene of the first act of a drama that is to be played
out.”
Is the end nigh for Mubarak? President’s grip on power shaken as army refuses
to fire on million-strong march As many as two million people are expected
to take to the streets in Egypt later today in a mass demonstration that could
finally topple president Hosni Mubarak after he was dealt a crushing blow by
the nation’s military.
The 11 Countries At Risk of Becoming The Next Egypt Egypt has been embroiled
in political turmoil since protests, inspired by those that overthrew the
regime in Tunisia, started last week.
Mubarak’s new deputy linked to CIA rendition program The man named by
President Hosni Mubarak as his first ever deputy, Egyptian spy chief Omar
Suleiman, reportedly orchestrated the brutal interrogation of terror suspects
abducted by the CIA in a secret program condemned by rights groups.
Former Director of the CIA’s Counter-Terrorism Center: American Policy in the

Middle East is Failing Because the U.S. Doesn’t Believe in Democracy The
fact that the former head of counter-terrorism laments America’s failure to
support democracy in the Middle East proves once again that U.S. policy is
not justified by terror concerns.
Corporate US Media’s Woeful, Sanitized Egypt Coverage Amounts To Censorship

While the ailing dictatorship government in Egypt is busy rounding up and
arresting Al Jazeera journalists in an attempt to control the release of
footage and accounts of the mass uprising going on throughout the entirety
of the country, the disgraceful corporate American media has once again
shown itself to be just as strictly regulated in terms of the content it
provides to viewers.
Drudgereport: WIKILEAKS: FBI hunts the 9/11 gang that got away...
Student, 14, suspended for 'weapon' -- a plastic pen casing...
JUDGE RULES HEALTH CARE LAW UNCONSTITUTIONAL
FLASHPOINT
LIVE STREAM...
On economy, Obama takes a new role: cheerleader (Washington Post) [ No!

That’s not what he was elected for; besides, he just ain’t pretty enough
(though you get the impression that he thinks he is, in a very quiffy kind of
way. Thanks, but no thanks; that may sound good, but at this point, too little,
too late for america. Action, not words, wobama the b (for b*** s***). While
figuratively, ‘nut and bolts’ are okay, it’s really ‘pencils, paper, and
magnifying glasses’ for scrutinizing and correcting the structural defects
(are you willing to pay twice as much for the same products produced
elsewhere, pay for the frauds on wall street, pay for the rich over-
compensation packages of corp. execs, pay for the endless wars, pay for the
richly accoutered capital hill / lifetime appointee / federal employees (law
enforcement excepted), etc.) and a magnifying glass to discern the
foregoing. ] The President has become the host of what feels like a looping
infomercial on American innovation.
Russia's Ryabkov on U.S.-Russia relations: 'We can offer tangible results, and we
will do more in the future' (Washington Post) [ Well, I don’t know about
diplomatic relations (one can only hope), but if it’s sexual relations, what’s
not to like … about Russian girls … They’re total babes! Back to the
diplomatic front, I’ve grown a bit partial to the rationality of the Russian
leadership based not solely on what they say (defacto bankrupt america
talks about peace, but directly and through proxies, ie., israel, etc., is war
mongering, war facilitating, war profiteering on multiple fronts and killing
many innocent children, women, and men; and of course my own experience
with american meaningfully lawlessness, infra, etc., ), but what they do
(Russia’s engaged in no wars, made the transition from communism to
present without violence, finds time to preserve ‘The Siberian Tiger’, etc.,
and is not a hypocrite regarding professing to be a nation of meaningful
laws as america disingenuously purports to be, etc.) previous:
Wall Street firm targets District-based energy practice (Washington Post) [ From
one corrupt sinkhole (d.c. / no. virginia) to another, perhaps the largest ( wall
street/new york/jersey/ct. metro); ho, hum. The pervasively corrupt american
illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush
appointments should be abolished, which corrupt entities are unheard of in
productive societies as China, Japan, etc.. Time to abolish these drags on
society and eliminate their lifetime stipends and costly bureaucracies. Rules
of law mean nothing to these typically corrupt americans. Most, including
sam alito of the u.s. supreme court, concerning drug money laundering and
obstruction of justice in the 3rd circuit ( also maryanne trump barry who
covered-up drug money laundering through her brother’s casinos in a civil
RICO case) should have gone to or belong in jail. Contrary to popular belief,
they do it for the money, personal money, big, cash, untraceable money. The
fog of war is great for such things (360 tons $100 bills flown into Iraq and
missing, etc.).
rjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm
]. america’s just a fraudulent and failed defacto bankrupt nation. ] It's part of
a push by law firms to expand their D.C. footprint in an era of increased
regulatory scrutiny.)
CBS declines to run ad submitted by NFL players union (Washington Post) [ As

I’ve previously mentioned, I seldom comment on sports matters and don’t
for a minute profess to even know the issues involved in this dispute. That
said, I feel compelled to emphasize for what it’s worth in terms of this
conflict, that like no other time before in the history of football and without
any prospect of being less so on the horizon, pro football today is absolutely
no joke. Those guys are big, and strong, and powerful and one can only
wonder of the aches, pains, long-term injuries ‘the day after’. ] Union
officials suggest the ad was pulled in deference to the networks' financial
ties to the NFL.
Exxon Mobil's profit soars, along with crude oil prices (Washington Post) [ And,
you forgot to mention, along with stock prices; right, in fraudulent wall street
speak, the higher oil prices on debased dollar and insurmountable national
debt rally. Incredibly, Japan’s debt has been down-graded (before u.s. debt)
and compared to defacto bankrupt america, they’re as flush (with liquid
reserves) as a over-flushed toilet. Shiller Ratio Points to U.S. Equities Being
Significantly Overvalued [ Yes they are indeed; so take this especially great
opportunity to sell, take profits since there’s much, much worse to come!
That computer-programmed spike into the close to keep suckers suckered
does not change the aforesaid. This is particularly evident in their attempt to
cash in on that superstitious scam known as the ‘January effect’ by way of
these manipulated bubble-making buy programs; you know, loosen / soften
the suckers up for the coming year’s new fraud / scam. ] The 'January Effect'
Is More Market Myth Than Sound Analysis ... Kumar ‘…January of 1929, for
example, was off to a brisk start as the Dow Jones Industrial Average
climbed to 317 from 307. But investors would be slammed later in the year
by a historic stock market crash that heralded the start of the Great
Depression. January of 1987, too, began nicely. The Dow climbed to 2160 at
the end of the month after starting out at 1927. But Black Monday would hit
investors in October of that year, leading to the sharpest historical stock
market decline in percentage terms. More recently, January 2001 had a
strong showing when the Dow Jones finished the month at 10,887 after
starting at 10,646. Those reading it as an auspicious beginning would be hit
first by the further fallout from collapse of the dot-com bubble and then the
massive decline following the September 11 terrorist attacks. See full article
from DailyFinance: http://srph.it/cyaPDT ‘… Then, more recently there’s ‘The
stock market scored a strong gain and locked in its first positive finish for
January since 2007 (we all know what happened after that! Crash!) with help
from the energy sector, which climbed sharply in response to a spike in oil
prices.(Yahoo/Briefing.com) … Higher oil prices … riiiiight! … that sounds
bull(s***)ish … on fraudulent wall street. ] ] Exxon Mobil's fourth-quarter
profit soared 53 percent thanks in large part to higher crude oil prices, which
jumped Monday to their loftiest levels since 2008.
Mubarak seeks dialogue, shows no sign of relenting Demonstrators call for

massive protest but lack leadership (Washington Post) [ He relented when he
resorted to media / internet blackout. Indeed, this lack of sign thing is a testament
to how far from reality 30 years has taken him, not to mention the other 52 years
that have taken their toll on his cognitive processes. Whether it is plaques ‘on the
brain’ or outright senility, that he is so disengaged from the events unfolding
around him, one may only wonder how he lasted this long. Nor did his choice of
cia standin / shill, new VP Suleiman enhance his now untenable position which
leaves him as ‘done as a burnt enchilada’. ] Unlike other successful democratic
uprisings, this one lacks charismatic personalities and any clear agenda beyond
ousting Mubarak, elections.
Morgan Stanley: ETFs Post $2.8 Billion Net Outflows Last Week Coleman ‘With
unrest in Egypt and fading technical signals in many key emerging markets, it’s
not surprising that Morgan Stanley’s (MS) Smith Barney analysts has found
that ETFs attracted net outflows of $2.8 billion last week, the first pullback of a
young 2011.
In a new report this afternoon, MSSB listed net outflows in the week were led by
emerging markets stocks and commodities ETFs. Investors pulled more than a
combined $5 billion from those two categories.
ETFs showing net inflows were: U.S. broad markets stocks ($89 million); U.S.
mid-cap stocks ($278 million); U.S. dividend income ($574 million);
leveraged/inverse ($125 million); international developed markets ($354 million).
Perhaps just as noteworthy, though, were stock categories that had big outflows:
• Emerging markets, just over $3 billion.

• Commodities, more than $2.2 billion.
• U.S. Large-Cap, nearly $370 million in net outflows.
Bond funds also had a good week, attracting $705 million, according to MSSB.
The biggest net outflows by a single ETF came from the iShares MSCI Emerging
Markets Fund (EEM). It had nearly $2.7 billion outflows last week. The ETF now
has posted the largest net outflows in one- , four - and 13- week periods.
The biggest gainer in terms of net inflows was the SPDR Dow Jones Industrial
Average ETF (DIA). It had $776 million net inflows, says MSSB. The second most
popular was the Vanguard Dividend Appreciation ETF (VIG).’
Don't Blame Egypt for Friday's Sell-Off Janjigian ‘…many problems remain. The
federal budget deficit is too large and the government is carrying too much debt.
States and municipalities are drowning in public pension obligations. The
unemployment rate is improving, but much too slowly. Mortgage delinquencies
and foreclosures remain too high, there are too many homes available for sale,
and housing prices remain depressed. Worldwide inflation is on the rise. There
are even problems at the corporate level. Yes, corporate profits are strong, but
the same cannot be said for sales. Many companies are reporting anemic growth
on the top line at best. Others continue to see revenues decline. Corporations are
squeezing more profits from fewer sales only by aggressively cutting costs. This
kind of cost cutting cannot go on forever. All businesses eventually reach a point
where more profits can be produced only from more sales. Most are probably at
that point already... A 10 percent correction should not surprise anyone...’
Is the Market Headed for a Sell-Off? [ Yes … I agree, except that fundamentally
the longer term prospects are even worse than his bearish outlook suggests
(don’t forget the debasement of the dollar, manipulation, and spending / printing
money the nation doesn’t have in real terms behind this manipulated uptick) and
summarized as follows: ‘I suspect that this rally is on its very last legs. We should
see a very healthy 10% or so correction within the next 1-2 week period ... This
market is headed for a sell-off. ] Zaky ‘As the market scrutinizes President
Obama's State of the Union Address, and looks to Bernanke & Co. for any signs
as to when the Federal Reserve's inflationary stance toward monetary policy
might be coming to an end, the Dow Jones Industrial Average (DJIA) will be
attempting its 9th consecutive weekly gain for the first time since 1995.For the
past 20 years, the Dow has managed countless 8-week rallies which have tended
to almost always end very poorly on the 9th week. The only other time we've seen
the Dow rally for 9 straight weeks was in the period between January and March
1995. Before that, we would have to go to the 1980's to find a 9 week period of
consecutive gains.So the big question this week will be whether the Dow can
buck the 8-week trend or whether we'll see a sell-off to end the week and the Dow
streak at 8. What one should notice is how incredibly weak the overall market
tends to become after 8 weeks of straight gains.
Below is a list of all the times the Dow gained 8 straight weeks since the mid-
1990's, starting with the most recent:
1. March 2001 to April 2001
The Dow gained 8 straight weeks before experiencing a 100% retracement of the
gains in a 20% correction which lasted all summer.
2. November 2003 to January 2004

The Dow gained exactly 8 weeks before topping out, trading sideways for 6 weeks
and then traded down for nearly 10 months before rallying into year end. That 8-
weeks period topped a nearly 9 month which was met with very heavy selling
throughout the year.
3. October 2002 to December 2002
The Dow gained 8 straight weeks before putting in a decisive top and losing the
entire move over the next 14 week period. The Dow experienced a near 30% slide
after putting in a top at 8 consecutive up weeks.
4. January - March 1998
The Dow gained for 8 weeks straight, paused and then rallied a few more weeks
before putting in a decisive top which led to a correction that retraced the entire
move over the following 15 weeks. The Dow experienced a 25% correction after
rallying relentlessly for 5 months.
5. January - March 1995
The Dow rallied 9 straight weeks, had a slight pull-back and then rallied all the
way until year end. The market didn't see even a minor correction in all of 1995.
The Dow rallied nearly 60% in 1995 alone.This history should outline just how
over-extended this rally is becoming. There are only a few occasions in modern
history where the Dow closed up for 8 consecutive weeks, and only 1 occasion in
the last 16 years where the Dow closed in the green for 9 consecutive
weeks.There is almost no profit taking in this market, which suggests that a lot of
people and institutions have significant built-in gains. One piece of bad news and
we're likely to see everyone heading to the exits at once. Rallies that have pull-
backs tend to last significantly longer than those where we have months of
consecutive weekly gains such as this one.Without consolidation and profit
taking, these rallies tend to end very poorly. It is much healthier to see rallies
where the DJIA pulls back every 2-3 weeks than these rallies where the Dow just
shoots to the sky for 8 straight weeks. The above cases demonstrate this clearly.I
suspect that this rally is on its very last legs. We should see a very healthy 10%
or so correction within the next 1-2 week period. In fact, I believe it's quite
possible that the highs of this rally can be put in during the next 1-2 trading
sessions. Whatever the case may be, good buying opportunities present
themselves in February and March. This market is headed for a sell-off.’
[chart]


[chart]

Home Prices Declining as Expected Minyanville/ Suttmeier ‘Reviewing My No.1

Theme for 2011: Home prices will resume a decline that began in mid-2006. We
had the homebuyer tax credits expire in mid-2010, and government-sponsored
mortgage modifications provided limited help. In 2011 we face continued
foreclosure issues including questionable documentation, and banks have a
record high Other Real Estate Owned (OREO). OREO is up to $53.2 billion at the
end of the third quarter, up 338.2% since the end of 2007. Depressed home sales
are being sold at a 30% to 35% discount, which reduces property appraisals at
the county level. Homebuilders will have to compete with these lower prices and
we need a mortgage modification program for all Americans, not just those at risk
of losing their homes. QE2 (quantitative easing) is not working and US Treasury
yields are higher, causing mortgage rates to rise. “The Great Credit Crunch”
began with housing, and that foundation needs repair before Main Street can
recover with sustainable job creation.
The S&P / Case-Shiller Home Price Index -- Points to lower home prices through
November. [chart]
• The 20-City Composite is down 1.6% year over year in November and down
1.0% sequentially.
• The 20-City Composite is up only 3.3% from its April 2009 low, but remains
about 50% above where it began in January 2000.
• Atlanta, Charlotte, Detroit, Las Vegas, Miami, Portland (OR), Seattle, and
Tampa hit new lows, below the levels set in April 2009.
The Federal Housing Finance Agency (FHFA) also shows a year-over-year house
price decline of 4.3% in November. [chart] [chart]
House prices will continue to decline as long as the Conference Board’s reading
on Consumer Confidence remains weak. The Conference Board's reading on
Consumer Confidence jumped to 60.6 in January from 53.3 in December, but keep
in mind that the neutral zone for this measure is 90 to 120, so consumer
confidence remains extremely weak. Show me readings between 90 and 120 and
home prices will stabilize.
Stocks will peak this week, or will confirm recent highs as a peak over the next
few weeks
Stocks remain overvalued fundamentally according to ValuEngine with 15 of 16

sectors overvalued and only 38.9% of all stocks undervalued. This follows last
week’s ValuEngine Valuation Warning where just 33.3% of all stocks were
undervalued. Below 35% is the warning. All major averages are extremely
overbought on there weekly charts and my Proprietary Analytics show weekly
risky levels at 12,162 Dow, 1333.9 S&P 500, 2805 Nasdaq, 5321 Dow Transports,
and 828.86 Russell 2000. There is an 85% chance that the Dow will decline to my
annual pivot at 11,491 and the Dow Transports and Russell 2000 ended last week
below their annual pivots at 5179 and 784.16 respectively.
10-Year Note -- (3.317) The yield continues to trade in a range set in December --
between 3.568 on December 16 and 3.247 set on December 20.
Comex Gold -- ($1333.3) Gold is now oversold on its daily chart with daily and
semiannual value levels at $1316.1 and $1300.6 with quarterly and annual pivots
at $1331.3 and $1356.5. Gold is trending below its 50-day simple moving average
now at $1378.5.
Nymex Crude Oil -- ($87.82) Crude oil is now trending below its 50-day simple
moving average at $87.96 with the 200-day at $80.48. My semiannual pivot
remains at $87.52.
The Euro -- (1.3643) This week’s value level is 1.3398 with chart resistance at
1.3786 as the euro becomes overbought on its daily chart.
Daily Dow -- (11,977) The daily chart is overbought after setting a new high for the
move at 11,985.97 Tuesday morning. This week’s risky level is 12,162. My annual
value level remains at 11,491. There are negative divergences for the S&P 500,
Nasdaq, Transports, and Russell 2000. Dow Transports are flirting with a close
below its 50-day simple moving average at 5047.’
Economist: United States Worse Off than Greece Dr. Laurence Kotlikoff is an
economics professor at Boston University. He says the Treasury and the
government are fudging the national debt numbers. Kotlikoff says the United
States is bankrupt and we don’t even know it.
Mortgage Finance Overhaul to Raise Costs, Reduce Home-Ownership Bloomberg
| In spite of differences between Democrats and Republicans on reforming
housing finance, both sides back proposals that would make mortgages more
expensive and difficult to obtain.
Goldman Sachs Director: Egyptians, Greeks, Tunisians and British Protesting

Against Pillaging of Economies Washington’s Blog | When a country relinquishes
its financial system and its population’s well-being to the pursuit of ‘good deals’,
there is going to be substantial fallout.
Afghan Officials Shielded Bank From Scrutiny WSJ | Investigators probing

massive fraud that nearly brought down Afghanistan’s largest bank have found
the lender avoided scrutiny for years by giving clandestine loans—and
sometimes outright bribes—to senior Afghan officials, said Afghan and U.S.
officials and former bank insiders.
AAA Rating Tough to Defend as U.S. Debt Soars Last week, Standard & Poor’s
lowered Japan’s bond rating to AA-, the fourth-highest level. By that
standard, the U.S. got away with a slap on the wrist from Moody’s Investors
Service, which warned merely that “the probability of assigning a negative
outlook in the coming two years is rising.”
ATMs Running Out Of Cash In Egypt, While Traders Pull Up To $500 Million Per
Day From Country Not surprisingly, ATMs have apparently run out of cash
— no doubt fueled by aggressive withdrawals and the inability to refill them.
China Central Bank Advisor Urges Increase In Official Gold And Silver Reserves
And so the long anticipated incursion by the PBOC, whose holdings of gold
are behind even those of GLD, begins.
Former Managing Director of Goldman Sachs: Egyptians, Greeks, Tunisians and

British Are All Protesting Against Pillaging of Their Economies Nomi Prins –
former managing director of Goldman Sachs and head of the international
analytics group at Bear Stearns in London – notes that the Egyptian people
are rebelling against being pillaged by giant, international banks and their
own government as much as anything else.
National / World
Senator Schumer doesn’t know the three branches of government Infowars.com |

Schumer says the three branches of government are the Senate, the House,
and the president.
Mubarak May Flee to Israel, Not Saudi Arabia Kurt Nimmo | The Israelis support
Mubarak’s war against his own people.
Cairo: Anger starting to focus on Israel, US Saturday’s optimism on the streets of

Cairo for imminent political change gave way to anger on Sunday, as
thousands of demonstrators became increasingly frustrated with the lack of
response from major world leaders, especially the US.
Obama will go down in history as the president who lost Egypt The street revolts
in Tunisia and Egypt show that the United States can do very little to save its
friends from the wrath of their citizens.
W O R L D W I D E : r E V O L U T I O N Moving video summarizing recent events

in Egypt, the wider Middle East and the global fallout. Human beings around
the world are speaking out, and the message is clear – WE WILL NOT LIVE
ON OUR KNEES.
Cashless Society: ‘Facebook Nation’ unveils its new currency Patrick Henningsen |
With the introduction of a cashless society, citizens are also likely to lose
their identities associated with national currencies like American Dollars, or
British Sterling.
Kill Switch: Obama Administration Fears Egypt-Style Revolt In U.S. Paul Joseph
Watson | Obama decries Internet shut-down in Egypt while his own
administration prepares to enact same draconian powers to crush dissent
during times of political upheaval in America.
Globalist Stooge ElBaradei Prepares To Hijack Egyptian Revolution Paul Joseph

Watson | Won’t get fooled again? Zbigniew Brzezinski tells Mubarak to step
down.
Florida Judge Rules Obamacare Unconstitutional A judge in Florida on Monday

became the second judge to declare President Barack Obama’s healthcare
reform law unconstitutional, in the biggest legal challenge yet to federal
authority to enact the law.
Kill Switch: Obama Administration Fears Egypt-Style Revolt In U.S. The Obama
administration is busy attempting to pass legislation that would give the
President a kill switch for the Internet in the United States while at the same
time decrying Egyptian authorities for shutting down the Internet in a bid to
deflate the unfolding revolution against Hosni Mubarak. The reason is
simple – the government fears an Egypt-style revolt occurring in the U.S.
and wants to block access to the world wide web if and when it happens.
Mubarak May Flee to Israel, Not Saudi Arabia Aljazeera is reporting that its
sources indicate Egyptian dictator Hosni Mubarak will flee to Israel. It was
earlier speculated that he would take refuge in Saudi Arabia.
Corporate US Media’s Woeful, Sanitized Egypt Coverage Amounts To Censorship

While the ailing dictatorship government in Egypt is busy rounding up and
arresting Al Jazeera journalists in an attempt to control the release of
footage and accounts of the mass uprising going on throughout the entirety
of the country, the disgraceful corporate American media has once again
shown itself to be just as strictly regulated in terms of the content it
provides to viewers.
Globalist Stooge ElBaradei Prepares To Hijack Egyptian Revolution Zbigniew
Brzezinski has called for Egyptian President Hosni Mubarak to step down as
globalist stooge Mohammed ElBaradei prepares to act as the pied piper for a
revolution that has been hijacked by the global elite.
Egypt protesters call strike, ‘million man march’ Egyptian protesters on Monday
called for an indefinite general strike and a “million man march” on Tuesday
in Cairo, upping the stakes in their bid to topple President Hosni Mubarak’s
creaking regime.
Israel urges world to curb criticism of Egypt’s Mubarak [ War crimes, illegal nukes
nation israel’s kiss of death for mubarak. ] Haaretz | Israel called on the United
States and a number of European countries over the weekend to curb their
criticism of President Hosni Mubarak to preserve stability in the region.
Is the Egyptian Government Using Agents Provocateur to Justify a Crack Down

On the Protesters? Washington’s Blog | If intelligence agencies or federal,
state or local police commit acts of violence against people or property, and
then blame it on peaceful protesters, that is false flag terror.
The Evolving Populist Political Rebellion in the Arab World Dave Lefcourt | Our
hubris and exceptionalism assumes we control the world.
Tarpley: Egypt Uprising is US-UK Destabilization Campaign Russia Today | British

speak through Al-Jazeera, Tarpley contends.
Omar Suleiman: CIA’s Point Man in Egypt Jane Mayer | Mubarak appointed his
intelligence chief and confidant Omar Suleiman to vice-president post on
Saturday.
150 Dead as Egypt Tilts Toward Lawlessness Sify News | Gangs of armed men
helped free thousands of prisoners and looters rampaged malls, banks and
jewelery stores.
Top Egyptian Military Officials Cut Short Meetings in U.S. Marine Gen. James
Cartwright, vice chairman of the Joint Chiefs of Staff, said that the talks
involving Egyptian military officials have been aborted because of the
developments. The discussions had been scheduled to run through next
Wednesday, February 2.
Alex Jones: Corporations, US Government Run News Media Several huge

corporations own networks and newspapers in the US. How much of the
content do they control? Radio Host Alex Jones says the old media is too
close to not only corporations, but the government too. Many Americans are
turning to alternative online sources for the truth, but Google, which Jones
alleges was created by the NSA, will soon start to censor alternative news
outlets.
Inequality In America Is Worse Than In Egypt, Tunisia Or Yemen Egyptian,

Tunisian and Yemeni protesters all say that inequality is one of the main
reasons they’re protesting.
CNBC Host Erin Burnett Implies America Should Support Foreign Dictators To
Keep Flow Of Cheap Oil “One more thing,” Burnett remarked. “If this
spreads, the United States could take a huge hit because democracy in a
place like Saudi Arabia, you’ve talked about who might come in power, what
that means for oil prices. They’re going to go stratospheric.”
What Is Globalization? What is globalization? Well, if you ask 100 different

Americans you will probably get 100 different answers. Many people view
globalization as harmless or even as a good thing. Other Americans believe
that the United States will never be integrated into a global economic and
political system.
Brad Meltzer’s Decoded: Bohemian Grove Best-selling author Brad Meltzer and
his team try to penetrate Bohemian Grove, one of America’s most tightly
guarded gatherings of the rich and powerful. The Decoded team converges
on the group’s hideaway in a northern California redwood forest to pursue
rumors of ritual sacrifice and secret agreements that control the lives of
everyday Americans.
The Egypt Protests in Photos Some breathtaking photos of the anti-government

revolution in Egypt. WARNING – some of these images are graphic and
disturbing.
Middle Britain’s tax rates ‘could rise to 83%’ Nearly a million people will see their
tax rates soar as the government’s austerity package kicks in this spring,
potentially to as high as 83%.
Is the Egyptian Government Using Agents Provocateur to Justify a Crack Down

On the Protesters? Ayman Mohyeldin reports that eyewitnesses have said
“party thugs” associated with the Egyptian regime’s Central Security
Services – in plainclothes but bearing government-issued weapons – have
been looting in Cairo. Ayman says the reports started off as isolated
accounts but are now growing in number.
Death toll in Egypt’s protests tops 100: sources More than 100 people have been
killed during anti-government protests that have swept Egypt, according to a
Reuters tally of reports from medical sources, hospitals and witnesses.
Egypt vigilantes defend homes as police disappear Egyptians armed with sticks
and razors have formed vigilante groups to defend their homes from looters
after police disappeared from the streets following days of violent protests.
‘US’ weapons witnessed in Egypt A lot of anger has shifted to international

influences in Egypt as protesters witness “made in USA” labels on the
weapons used against them, says Press TV’s correspondent.
Drudgereport: JUDGE RULES HEALTH CARE LAW UNCONSTITUTIONAL
FLASHPOINT
LIVE STREAM...
Egyptian capital teeters on anarchy Mubarak asks cabinet to resign as anti-

regime protests intensify (Washington Post) [ Mubarak should have been looking
in the mirror as he asked his cabinet to resign … 30 years is a long time, and
coincidentally, time for him to go. In Egypt: Access denied (Washington Post)
[The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet
didn’t die, but rather the order to so darken the nation heralded the demise, at 30
years and counting, of the so-called leadership in the persona of Mubarak. Time
for him to go! After all, he’s been in a position, with Egypt among the only
Mideast nations to have signed a peace treaty with israel, to have stepped up
with substantial credibility in taking a strong position against israeli
transgressions, violations of international law / u.n. resolutions, war crimes, etc.,
which beyond soft-touch, he failed to do. And, of all places, he sends his family
to Orwellian england; he still loves those colonial masters … how pathetic. I
mean, 30 years … how free-flowing does anyone think the election process is at
this point … and one could ask the same regarding the entrenched powers that
be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi
arabia; talk about do nothing hypocrites. How does one family claim ownership of
all the oil reserves of a sovereign nation; I suspect only when foreign
corporations say so. The only Mideast nations showing backbone are Turkey,
Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy
Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack
attempt to quell an explosion of street protests again... ] Embattled
leader's move falls far short of demands that he give up his 30-year authoritarian
rule, leave the country and permit fresh elections.
Israel watches Arab turmoil closely, but comments cautiously Washington Post) [
Illegal nuke-totin’ war crimes nation israel, watch this closely since the same was
a long time coming … GOP senator favors cutting US aid to Israel (AP) ( Now
this is a great and long overdue idea that might also lead to enhanced peace
efforts for the region; b e c a u s e , israel will have less money to waste on
provocative and costly (particularly to america financially and geopolitically) war
games. ) AP - Tea party-backed Republican Sen. Rand Paul favors cutting U.S. aid
to Israel as part of a deficit-driven effort to slash government spending by $500
billion this year, drawing criticism from Dems (and capital hill generally as
Buchanan once described as israeli occupied territory, to america’s detriment) ...
Rand Paul: End Aid to Israel Pressed on CNN’s Situation Room about details on
his budget cut plans, Sen. Rand Paul (R-Ky.) says end all foreign aid–and when
pressed further says that includes to Israel. ]
Economic growth strengthened (Washington Post) [ Wow! Mr. Irwin’s back to his
glass very much half full ways. The question is, is Mr. Irwin trying to convince
himself, or disingenuously trying to convince his readers. After all, in reality,
they’re really hasn’t been sufficient ‘bang for the buck’ (Fed Continues Failed
Monetary Policy Suttmeier, chief market strategist at ValuEngine.com
‘Fed Is Continuing a Failed Monetary Policy (And, amazingly, their rationale is the
same failed rationale that preceded the last bubble, as now, crash, as will, that
was spun by senile greenspan that wall street frauds / insiders sold into; you
know, that so called wealth effect which in reality is theirs not yours; viz., their
gain, your pain.)
• Information received since the Federal Open Market Committee met in

December confirms that the economic recovery is continuing, though at a
rate that has been insufficient to bring about a significant improvement in
labor market conditions.
• Growth in household spending picked up late last year, but remains

constrained by high unemployment, modest income growth, lower housing
wealth, and tight credit.
• Business spending on equipment and software is rising, while investment

in nonresidential structures is still weak.
Employers remain reluctant to add to payrolls. The housing sector continues to

be depressed. Although commodity prices have risen, longer-term inflation
expectations have remained stable, and measures of underlying inflation
have been trending downward. ) Moreover, and most importantly, those are
more than just in short supply; they’re not really there! ( Economist: United
States Worse Off than Greece Dr. Laurence Kotlikoff is an economics
professor at Boston University. He says the Treasury and the government
are fudging the national debt numbers. Kotlikoff says the United States is
bankrupt and we don’t even know it. BRACE YOURSELF: Moody’s
Basically Just Threatened To Downgrade The US A day after S&P
downgraded Japan’s debt, the attention turns to the US. )] Data show that
the recovery is becoming deeper and broader.
U.S. stocks drop sharply as protests intensify in Egypt (Washington Post) [Egypt
riots knock Wall St to biggest drop in 6 months (Reuters) – [ No! That’s not
correct! They probably would like you to think that … some unforeseeable
problem from out of nowhere deflating their contrived fraudulent bubble that
they always manage to sell into. But the fact is the market’s overvalued to a
point again beyond the pale … another inflated point that the wall street
frauds always seem to find some reason other than the reality of a
fraudulently manipulated overvalued bubble to sell into. ] Reuters - Stocks
suffered their biggest one-day loss in nearly six months on Friday as anti-
government rioting in Egypt prompted investors to flee to less risky assets
to ride out the turmoil. ] U.S. stocks decline as violent clashes in Egypt
inject a jolt of anxiety into global financial markets
In Egypt: Access denied (Washington Post) [The day part of the Internet died:
Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to
so darken the nation heralded the demise, at 30 years and counting, of the so-
called leadership in the persona of Mubarak. Time for him to go! After all, he’s
been in a position, with Egypt among the only Mideast nations to have signed a
peace treaty with israel, to have stepped up with substantial credibility in taking a
strong position against israeli transgressions, violations of international law / u.n.
resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all
places, he sends his family to Orwellian england; he still loves those colonial
masters … how pathetic. I mean, 30 years … how free-flowing does anyone think
the election process is at this point … and one could ask the same regarding the
entrenched powers that be in pervasively corrupt, defacto bankrupt america, to
be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does
one family claim ownership of all the oil reserves of a sovereign nation; I suspect
only when foreign corporations say so. The only Mideast nations showing
backbone are Turkey, Lebanon, and Syria, and, of course the perennially
propaganda painted bad-boy Iran among possibly some of the smaller emirates,
ie., Qatar, etc., (I lack sufficient information regarding these other nations). ]
(AP) Internet cutoff fails to silence Egypt protests (AP) - AP - In its effort to
silence protesters, Egypt took a step that's rare even among authoritarian
governments: It cut off the Internet across the entire country. Mubarak fires
Cabinet, defends army’s efforts Sat, 29 Jan 2011 00:20:58 GMT Egyptian
President Hosni Mubarak dismisses his Cabinet, calls on the army to help put
down rising potests... Egypt's Mubarak sends in army, resists demands to quit
(Reuters) - 1 hour agoReuters - Egyptian President Hosni Mubarak refused on
Saturday to bow to demands that he resign after ordering troops and tanks into
cities in an attempt to quell an explosion of street protests again... ]
Unrest in Egypt has been ongoing all week, but the Internet only seemed to take
notice when it affected the Internet. The chilling aspect of an Internet clampdown
is the assumption that lies behind it: If you will not let your people tweet, what
else will you not let them do?
Dow Will Find Top With a 12,000 Handle Minyanville ‘Editor's Note: This article
was written by Richard Suttmeier, chief market strategist at ValuEngine.com,
which is a fundamentally based quant research firm in Princeton, New Jersey,
that covers more than 5,000 stocks every day.
The yield on the US Treasury 10-Year note has formed a trading range between
3.568 and 3.247 balanced by supply, fears of inflation, and QE2 buying by the
Federal Reserve. Comex gold declined as expected and now faces my
semiannual value level at $1300.6. Nymex crude oil failed below its semiannual
pivot at $87.52 as the $92.00 a barrel barrier proved to be resistance. The euro
has become stronger than expected after holding 1.3225, but faces a daily risky
level at 1.3828 today. Stocks are overvalued fundamentally and overbought
technically. The Dow Industrial should find a top above 12,000 just as 14,000 was
a barrier in October 2007.
10-Year Note -- (3.385) Daily, weekly, annual, and semiannual value levels are
3.438, 3.758, 3.791, and 4.268 with annual, semiannual, and monthly risky levels
at 2.690, 2.441, 2.322, and 2.150.
10 Year Note
Comex Gold -- ($1311.3) Semiannual and annual value levels are $1300.6 and
$1187.2 with a daily pivot at $1319.2, quarterly and annual pivots at $1331.3 and
$1356.5, and weekly, monthly, quarterly, and semiannual risky levels at $1390.9,
$1439.0, $1441.7, and $1452.6.
Comex Gold
Nymex Crude Oil -- ($85.42) My monthly value level is $75.74 with daily and
semiannual pivots at $84.80 and $87.52, and weekly, annual, semiannual, and
quarterly risky levels at $95.34, $99.91, $101.92, $107.14, and $110.87.
Nymex Crude Oil
The Euro -- (1.3725) Weekly, quarterly, and monthly value levels are 1.3398,
1.3227, and 1.2805 with a daily risky level at 1.3828. Semiannual and annual risky
levels are 1.4624, 1.4989, 1.6367 and 1.7312.
Euro Chart
Daily Dow: (11,990) Annual, quarterly, semiannual, monthly, and semiannual
value levels are 11,491, 11,395, 10,959, 10,427, and 9,449 with daily, weekly, and
annual risky levels at 12,053, 12,162, and 13,890.
Dow Chart
Stocks remain overvalued fundamentally according to ValuEngine with all 16

sectors overvalued and only 35.6% of all stocks undervalued. This follows last
week’s ValuEngine Valuation Warning, which will renew if less than 35% of
stocks are undervalued.
All major averages are extremely overbought on their weekly charts...'
U.S. Markets Hit With Sharp Declines on Earnings, Middle East Turmoil Midnight
Trader ‘4:10 PM, Jan 28, 2011 --
• DJIA down 166.13 (-1.39%) to 11,823.70
• S&P 500 down 23.20 (-1.79%) to 1,276.34
• Nasdaq down 68.36 (-2.48%) to 2,686.92
GLOBAL SENTIMENT

• FTSE down 1.4%
Regulators shut banks (11 so far in 2011) in Colo, NM, Okla, Wis
The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet
didn’t die, but rather the order to so darken the nation heralded the demise, at 30
years and counting, of the so-called leadership in the persona of Mubarak. Time
for him to go! After all, he’s been in a position, with Egypt among the only
Mideast nations to have signed a peace treaty with israel, to have stepped up
with substantial credibility in taking a strong position against israeli
transgressions, violations of international law / u.n. resolutions, war crimes, etc.,
which beyond soft-touch, he failed to do. And, of all places, he sends his family
to Orwellian england; he still loves those colonial masters … how pathetic. I
mean, 30 years … how free-flowing does anyone think the election process is at
this point … and one could ask the same regarding the entrenched powers that
be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi
arabia; talk about do nothing hypocrites. How does one family claim ownership of
all the oil reserves of a sovereign nation; I suspect only when foreign
corporations say so. The only Mideast nations showing backbone are Turkey,
Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy
Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack
attempt to quell an explosion of street protests again...
Egypt riots knock Wall St to biggest drop in 6 months (Reuters) – [ No! That’s not
correct! They probably would like you to think that … some unforeseeable
problem from out of nowhere deflating their contrived fraudulent bubble that they
always manage to sell into. But the fact is the market’s overvalued to a point
again beyond the pale … another inflated point that the wall street frauds always
seem to find some reason other than the reality of a fraudulently manipulated
overvalued bubble to sell into. ] Reuters - Stocks suffered their biggest one-day
loss in nearly six months on Friday as anti-government rioting in Egypt prompted
investors to flee to less risky assets to ride out the turmoil.
GOP senator favors cutting US aid to Israel (AP) [ Now this is a great and long
overdue idea that might also lead to enhanced peace efforts for the region; b e c a
u s e , israel will have less money to waste on provocative and costly (particularly
to america financially and geopolitically) war games. ] AP - Tea party-backed
Republican Sen. Rand Paul favors cutting U.S. aid to Israel as part of a deficit-
driven effort to slash government spending by $500 billion this year, drawing
criticism from Dems (and capital hill generally as Buchanan once described as
israeli occupied territory, to america’s detriment) ... Rand Paul: End Aid to Israel
Pressed on CNN’s Situation Room about details on his budget cut plans, Sen.
Rand Paul (R-Ky.) says end all foreign aid–and when pressed further says that
includes to Israel.
FCIC Done; Lets Banksters Skate: Dave's Daily ‘The Financial Crisis Inquiry
Commission (FCIC), after months of investigation, concluded this entire
mortgage crisis was avoidable. Whew! Who knew?!? Bank stocks were up today
despite some suggestion from the commission report of some criminal referrals.
It must not have been any of Da Boyz at Goldman unless they're going after
maintenance staff. Some of the elite are getting steamed as Jamie Dimon lost his
cool while sipping Perrier at a panel in Davos. He didn't say he was doing "God's
work," just not Satan's. Meanwhile back at Wall & Broad markets did little overall
with most excitement centered on NFLX which beat the pants off earnings
estimates and rose a modest 15%. Also higher were semi's and GE. More POMO
on Thursday which is something we'll just have to get used to until June unless
there's QE3. Economic data was disappointing as Jobless Claims soared and
Durable Goods orders fell. Pending Home Sales were high but on must wonder
how much of these were foreclosure resales as this activity reached new highs
last month. Gold was knocked down sharply through what we've estimated as
technical support as investors are scrambling out of its safe-haven appeal and
into stocks...so it's said. Most commodities were dragged lower by this action.
Just at the close MSFT reported disappointing results and after the close AMZN
did the same with the stock now down over 10% as this is written. We did an
interview with Tony Davidow, Managing Director, Portfolio Strategist, Rydex SGI
Investments where we discuss equal weight sectors including their new emerging
market equal weights which should prove interesting. Volume was once again
quite light but breadth was positive per the WSJ.’
Paulson's $5 billion payout shocks, raises questions (Reuters) [ Shock? Come on

… everyone knows that crime in america pays … and pays well! ]
Fed Continues Failed Monetary Policy Suttmeier, chief market strategist at

ValuEngine.com
‘Fed Is Continuing a Failed Monetary Policy (And, amazingly, their rationale is the
same failed rationale that preceded the last bubble, as now, crash, as will, that
was spun by senile greenspan that wall street frauds / insiders sold into; you
know, that so called wealth effect which in reality is theirs not yours; viz., their
gain, your pain.)
• Information received since the Federal Open Market Committee met in

December confirms that the economic recovery is continuing, though at a
rate that has been insufficient to bring about a significant improvement in
labor market conditions.
• Growth in household spending picked up late last year, but remains

constrained by high unemployment, modest income growth, lower housing
wealth, and tight credit.
• Business spending on equipment and software is rising, while investment
in nonresidential structures is still weak.
• Employers remain reluctant to add to payrolls. The housing sector

continues to be depressed. Although commodity prices have risen, longer-
term inflation expectations have remained stable, and measures of
underlying inflation have been trending downward.
Fed policy includes the continuation of QE2, which is the purchase of $600 billion
of longer-dated US Treasuries to be completed by the end of the second quarter.
We are in the midst of this program that is failing to bring down US Treasury
yields as intended. The yield on the 10-Year US Treasury was at 2.334 on October
8 in anticipation of QE2 then traded as high as 3.568 on December 16. This keeps
the housing market depressed, which is a Fed concern.
Fed Policy has kept the funds rate at 0% to 0.25% since December 16, 2008, and
expects to maintain that rate for a continued extended period. I have argued for
years that the FOMC should never have pushed the funds rate below 3%. Lower
rates hurt citizens living on a fixed income, and invites Wall Street speculation.
Monetary policy focuses on creating and popping asset bubbles, which has
destroyed consumer confidence and leaves businesses reluctant to create jobs.
New Home Sales rose 17.5% in December to an annual rate of 329,000, but this is
skewed by an unexplained 71.9% gain out West. For 2010 as a whole, single-
family home sales fell 14.4% to a record low 321,000 units. The Commerce
Department began tracking this statistic in 1963. The inventory of new homes is
now at the lowest level in more than 40 years as home builders cannot obtain the
credit needed to meet potential higher demand in 2011. The National Association
of Home Builders indicated that the 71.9% rise in sales in the West may have
been caused by contracts signed ahead of costly new building codes going into
affect in some states this month.
The Mortgage Bankers Association reported that mortgage loan applications

decreased 12.9% on a seasonal basis last week. The Refinance Index decreased
15.3% and reached the lowest level since last January. The Purchase Index fell
8.7%, to its lowest level since October, and 20.8% lower year over year…’
Jobless Claims Rise to Highest Level Since October [ Jobless claims much worse
than expected … stocks rally. ] NEW YORK (TheStreet) -- The number of
Americans filing unemployment claims rose to its highest level since October last
week, the Labor Department said early Thursday. The advance figure for
seasonally adjusted initial claims increased by 51,000 to 454,000 in the week
ended Jan.22 after dropping to 403,000 in the previous week. Economists were
expecting initial claims to rise to 410,000, according to consensus estimates from
Briefing.com. The number of Americans filing continuing claims -- those who
have been receiving unemployment insurance for at least a week -- came in
higher than expected as well at 3.99 million for the week ended Jan.15, an
increase of 94,000 from the previous week's revised figure of 3.89 million.
Consensus estimates projected continuing claims to drop slightly to 3.83 million
from 3.86 million reported the previous week…’
Earnings Drag Dow Down to Another 12000 Closing Miss…Orders for goods
expected to last at least three years fell and a reading of manufacturing activity in
the Federal Reserve Bank of Kansas City's district slowed sharply in January…
Japan's long-term credit rating to double-A-minus from double-A, citing concerns
over the country's high debt levels…better-than-expected reading of pending
sales of existing homes (foreclosures / distressed sales – Drudgereport:
Foreclosure activity up across metro areas... ), coupled with a surprisingly large
jump in jobless claims didn't add clarity to the economic outlook (dismal) …
Microsoft's Windows disappoints as PC sales wane (Reuters)
Economist: United States Worse Off than Greece Dr. Laurence Kotlikoff is an
economics professor at Boston University. He says the Treasury and the
government are fudging the national debt numbers. Kotlikoff says the United
States is bankrupt and we don’t even know it.
Peter Schiff: FCIC is a sham! The Financial Crisis Inquiry Commission report on
the 2008 financial crisis will spread the blame all around to everyone from
federal regulators to corporate overseers to all kinds of government
officials. But is it all for show? Peter Schiff, the president of Euro Pacific
Capital argued the entire commission was a $10 million sham designed to
conclude the government’s own pre-conceived notions. The report said the
crisis was the result too few government regulations, when in fact
government regulations caused the problem, he contended.
US Crisis Blame & Shame: Banksters still on Easy Street A report on causes of
the recent global financial crisis has sparked anger over the authors of the
meltdown. The document released by a US investigative commission, points
finger at the country’s economic elite. But, as RT’s Lauren Lyster reports,
previous experience showed those responsible are likely to go unpunished.
BRACE YOURSELF: Moody’s Basically Just Threatened To Downgrade The US A

day after S&P downgraded Japan’s debt, the attention turns to the US.
National / World
Egypt: U.S. Puppet Regime On Verge of Collapse Kurt Nimmo | Mubarak and his
knuckle-dragging dictatorship are crucial to the foreign policy of the United
States.
Egypt’s Internet Kill Switch: Coming To America Steve Watson | Internet

intelligence authority Renesys has confirmed that “virtually all of Egypt’s
Internet addresses are now unreachable, worldwide.”
Brzezinski’s Feared “Global Awakening” Has Arrived Paul Joseph Watson |

Monumental worldwide rallying cry for freedom threatens to derail new
world order agenda.
Protesters Storm Government Buildings in Cairo FoxNews.com | Thousands of

protesters try to storm the foreign ministry, state TV building in Cairo,
defying curfew.
Resist the New World Order: V for Victory Campaign Entries Infowars.com | Our
campaign to fight against the police state control grid gains momentum
Protesters in Egypt Flash ‘V For Victory’ Sign As Dictatorial Regime Nears End
The V for Victory sign has become symbolic of the anti-government protests
in Egypt, where Egyptians are demonstrating for the end of the 30-year
dictatorial Mubarak regime and the institution of political representation,
freedom of speech and the right to dissent without being tortured by secret
police. Egyptians have also seen their quality of life eviscerated by soaring
food inflation as a result of acts of financial terrorism launched by the global
banking elite.
Are We Witnessing the Start of a Global Revolution? It seems as if the world is

entering the beginnings of a new revolutionary era: the era of the ‘Global
Political Awakening.’ While this ‘awakening’ is materializing in different
regions, different nations and under different circumstances, it is being
largely influenced by global conditions.
The Smartest President Ever? : Obama Confuses Iraq and Afghanistan The
president twice referred to Afghanistan when clearly talking about the
situation in Iraq.
Brzezinski’s Feared “Global Awakening” Has Arrived Zbigniew Brzezinski’s much

feared “global political awakening” is in full swing. Revolts in Egypt, Yemen,
Tunisia and other countries represent a truly monumental worldwide rallying
cry for freedom that threatens to immeasurably damage the agenda for one
world government, but only if the successful revolutionaries can prevent
themselves from being co-opted by a paranoid and desperate global elite.
Egypt’s Internet Kill Switch: Coming To America In response to widespread

protests and mass unrest, the authoritarian Egyptian government has
completely shut down the country’s access to the internet, eliminating the
use of social networking websites, other effective tools of communication
and organisation, and effectively sealing Egypt off from the rest of the world.
The Obama Administration is looking to embrace the exact same internet
control mechanism in America.
Police members remove uniforms — join protests! A number of police members
removed their suits and joined protests against the regime, according to Al
Arabiya.
Mubarak orders army to back police against unrest Egyptian armed forces
backed by armored cars deployed in Cairo and other major cities on Friday
to tackle huge popular protests demanding the resignation of President
Hosni Mubarak.
Obama Administration Expresses Support For Mubarak As Protester Shot Dead

In Egypt The Obama administration expressed its support for under fire
Egyptian dictator Hosni Mubarak even as footage emerged of a protester
being shot dead by Mubarak’s security forces in Cairo, as the government
shut down the Internet, land lines and the mobile phone network in a
desperate bid to cling on to power amidst widespread rioting.
Rand Paul: End Aid to Israel Pressed on CNN’s Situation Room about details on
his budget cut plans, Sen. Rand Paul (R-Ky.) says end all foreign aid–and
when pressed further says that includes to Israel.
Drudgereport: USA 'SECRETLY BACKS UPRISING'

Egyptian President Mubarak asks Cabinet to resign...
Tanks Sent Into Cairo...
Explosions, Gunfire Heard as Protesters Defy Curfew...
Cities become battlegrounds...
Police members remove uniforms -- join protests...
Dramatic video as thousands clash...
LIVE STREAM...
Axelrod: Obama Has 'Directly Confronted' Mubarak for Past 2 Years 'To Get
Ahead of This'...
Iran Sees Rise of Islamic Hard-Liners in Arab Lands...
Spain jobless rate surges to 20.33%...
GDP 4TH QTR: 3.2%...
Less than expected; stocks slide...
NASDAQ outage leaves traders scrambling...
Egyptian Strife Sends Oil Close To $100 On Suez Canal Closure Fears...
WH: Obama has not tried to talk to Egyptian ruler...
Lobotomy joe biden weighs in with his somewhat stretched political philosophy:
Mubarak's no dictator, shouldn't step down...
Egyptian Police Using U.S.-Made Tear Gas AgainstDemonstrators...
Egypt Shows How Easily Internet Can Be Silenced...
PAPER: Events 'moving too fast for Obama administration'...
Iranian Media Hail Egypt 'Revolution'...
Thousands protest in Jordan, demand PM step down...
Huge anti-government protest in Albania...
NY mob task force spends 6 MONTHS probing 50-cent sausage heist... As with
cuomo, you won’t see new york / mob infested new jersey trying too hard if at all
to hurt themselves by prosecuting mob which is so integrally a part of both
states… ‘On the mobbed-up docks of Bayonne, the six-month probe was known
as Operation Missing Link.Its target: A suspect who swiped a $2 bottle of iced tea
and used it to wash down a stolen 50-cent piece of sausage - the lost link that left
a bad taste in everybody's mouth, sources told the Daily News.An investigation of
the penny-ante heist was ordered by the Waterfront Commission, the agency
charged with policing the docks for mob corruption, drug smuggling and other
major crimes, the sources said.The investigation included scores of interviews
over countless hours dating to last August, sources said - even though the victim
was reluctant to press charges."It's like Capt. Queeg and the strawberries," said
New Jersey state Sen. Raymond Lesniak, a harsh critic of the bistate
commission."It's a $2.50 ongoing investigation."One of the sources was more
blunt: "The whole investigation is bull----. It's a waste of manpower, money and
resources."Waterfront Commission General Counsel Phoebe Soriel, while
declining to address specifics, said the case was more complex than it
appeared."While the commission does not comment on pending investigations, it
takes any theft in the port seriously - especially theft involving extortion," she
said without going into detail.The reported value of the stolen goods - a handful
of change - is a microfraction of the $200 billion that moves annually through the
ports of New York and New Jersey.The overkill began when the commission
received an anonymous tip that someone filched the drink and the sausage from
a food truck catering to dock workers.According to two sources, the case was
quickly wrapped up: The thief confessed to the crime, and the victim said an
arrest was unnecessary.The victim "didn't want to see him behind bars...just
wanted him to stop," one source said.But top commission officials, convinced its
investigators mishandled the case, ordered a second probe with every possible
witness reinterviewed, the sources said.Investigators from the 58-year-old agency
returned to the docks and conducted about 80 second interviews, all the while
cranking out piles of paperwork, the sources said.The commission was blasted in
August 2009 - one year before the sausage investigation was launched - as home
to corrupt execs barely better than the waterfront's notorious mobsters.Officials
were accused in a damning 60-page report of misusing Homeland Security
money, keeping a convicted crook in business and surfing the Internet for
porn.The iced-tea-and-sausage probe - which has yet to wrap up - is considered
an embarrassment among investigators and dock workers."They snicker about
it," one of the sources said.’
The FBI’s the only serious anti-mob game in town: FBI 'largest' Mafia takedown...
Flowchart...
'Vinny Carwash', 'The Fang', 'Tony Bagels', 'Johnny Pizza', 'Baby Shacks', 'Jack
the Wack', 'Junior Lollipops', 'Bobby Glasses'...
The Mafia family tree: FBI flowchart reveals

127 'mobsters' arrested in biggest ever blitz on New York's crime empires [ This
is a very big deal! http://albertpeia.com/mafiafamilytreeflowchartFBIarrests.htm
]
Car bomb kills dozens (Washington Post) [ Ah, yes! Signs of american style
democratization in the middle east popping out all over. The other turmoil is
testament to the fact that other mideast nations have complacently sat back as
zionist israel / american ‘adventurism / war / war crimes / war profiteering have
taken their toll on the region, their people, and their aspirations which like all
such action outside a vacuum, have reactions. ] At least 48 were killed and 121
wounded when a booby-trapped car exploded outside a funeral tent in a Shiite
neighborhood of northern Baghdad, escalating an upsurge of violence across the
country.
New research points to earlier human migration out of Africa (Washington Post) [
This is hardly breakthrough news inasmuch as the same has been reported with
authority in as far back as 2005 4th edition Michael Alan Park text; viz., ‘…fossils
(of) the first fully modern Homo Sapiens are found in Africa and Southwest Asia
beginning around 160,000 years ago.’ Truth be told, I find such fine lines in this
truly sad tale of the history of man to be relatively unimportant. Interestingly,
coincidentally, the Drudgereport this day includes this headline: DNA: Humans
97% same as orangutans … 98% same as chimps ... ] For decades, the consensus
scientific opinion has held that anatomically modern humans first migrated out of
Africa some 60,000 years ago, heading north into the eastern Mediterranean
region and then on to Europe and Asia.
Anthropologists adopt a more favorable view of Neanderthals (Washington Post)
[ Well, I’m a bit surprised and somewhat disappointed that with a little more
effort, rather than rely upon inference, they could have taken a trip to the
new york / new jersey / connecticut metropolitan area (etc.) and observed
directly these lower italian modern-day archaic humans! Then there are the
other modern day archaics / ape-like creatures that warrant greater
scrutiny. ]
"What this means is that Neanderthals are not totally extinct. In some of us, they
live on," Paabo … With regard to that extinction thing, I’d say they’re still
working on it (ultimately, decades, extinction, the distinction, without a
difference). Actually, prior to studying the compelling subject of Biological
Anthropology (Michael Park text), I too had some misconceptions about the
group known as Neandertals (recent spelling drops the ‘h’) and actually mis-
referenced same by the stereotypical image of members of said clade even
as the debate continues as to whether they are within the species homo
sapiens or a separate species. I believe these to be distinctions without
important differences, so humble the origins and evolution of man truly are.
Parenthetically, I wonder what that anthropological scientist Heidi Klum
thinks on the subject.
Neanderthals, Humans Interbred, DNA Proves
Signs of Neanderthals Mating With Humans - Neanderthals mated with some

modern humans after all and left their imprint in the human genome.
Genome hints humans, Neanderthals rolled in prehistoric hay You're a
Neanderthal: Genes say yes — a little bit (AP) Neanderthals and people
interbred, fossil analysis finds For more info on man’s humble beginnings,
see here http://www.albertpeia.com/anthroindex1.htm [ I’m adding this
here, having seen while flipping channels an anthropologist talking up
somewhat speciously the brain size of Neanderthals. The important but
missed point here was potential ‘brain-power’ unrealized. Think of it this
way: In the life-threateningly cold climes they inhabited, pre-occupation with
warmth, fire, wood for fire, food, mere survival usurped all their waking
moments. Have you ever tried to study, learn, think clearly (and new
thoughts / neurogenesis thereby) under such harsh and perilous conditions;
successfully? Neither could they. ]
Previously I wrote:
FOUND: MISSING LINK BETWEEN APES AND MAN.... These stories, and the
many like it, are old news and I subscribe to the more studied view that there
is no “missing link” per se and in my view they are distinctions without
significant differences. I previously wrote:
To Learn More About From Whence Man Came, This Link's For You
[To the Professor at the beginning of the course]
10-5-09 Postscript: Professor *****,

I felt compelled to thank you again for the add; not to curry your favor but indeed
to express profound thanks inasmuch as this is probably the last formal course
at a formal educational institution I'll ever take; and among the most important.
While I had bought at discount a library-discarded 1993 Anthropology by Embers
text, though meaning to read same never quite got to it. I am astounded by the
substantial amount of time involved in the evolutionary process, not that I ever
stopped to think about it, and one must come away with the sense of 'and all
that...for this?'. This course should be required curriculum along with
psychology, sociology, etc., but probably won't be owing to what is, as it should
be, a very humbling educational experience for any member of the human race.
Regards,
Al Peia
[Interestingly, my intuitive (but unstudied) thoughts prior to closer examination of

the compelling subject of Biological Anthropology remain what I believe to
be the correct scenario. Specifically, very simply stated, for the most part,
the more “enlightened” (but not by much; by mutation, accident, luck,
intervention, etc.) left the unvarying confines of their Sub-Saharan origins,
experienced diverse new environs, challenges, etc., experienced what has
been described (by neuroscientists, psychologists, etc.) as neurogenesis in
varying degrees and forms thereby over time, which trait was selected for
and is consistent with the purported multi-regional evolutionary model
which does not overtly contradict ultimately, initial African origins. Races,
sub-species, missing links, etc., are subsumed in this very humbling and
sorrowful tale of the “dawn of man”.]
U.S. must cut deficit, IMF warns (Washington Post) [ Duuuuuh! Ya’ think? CBO:
This year's budget deficit to hit $1.5T Washington Post (Why the CBO may not
believe all its own deficit projections Christian Science Monitor CBO: Social
Security to run permanent deficits (AP) No stemming red ink: Federal deficit to
hit $1.5T (AP) Deficit Outlook Darkens Wall Street Journal - WASHINGTON—
The federal budget deficit will reach a record of nearly $1.5 trillion in 2011 due to
the weak economy, higher spending and fresh tax cuts, congressional budget
analysts said, ... Social Security now seen to run permanent deficits The
Associated Press ) The nonpartisan budget agency predicts the deficit will drop
to $1.1 trillion next year. ] The IMF warning comes as federal officials grapple
with a congressional projection this week that the annual deficit will reach a
historic $1.5 trillion this year. This is the latest report to raise concerns about how
massive government debts in developed countries could undermine the global
economic recovery.
Report points to U.S. regulators and big banks for economic crisis (Washington
Post) [ Come on! Wake up! … ‘failed to restrict their risky activities’ , ‘pivotal
failure to stem the flow of toxic mortgages’, etc.,… Of course not! Why?
Because this was intentional and an integral part (the bubble) of the largest
fraud in the history of this world (still ongoing with those toxic assets /
paper / securities now marked to anything as per legislated FASB rule
change, cashed out by the perps, and as yet, despite promises by wobama
et als, still unprosecuted). Though among the greediest but hardly the
brightest bulbs on the planet, the wall street frauds certainly were savy
enough to understand all aspects and mechanics of this fraud in real time.
Quite simply, they did it for the money, big money. This was a huge
orchestrated securities fraud that made huge profits / gains for the
perpetrators at great expense / damage to this among other nations. ]
Krauthammer: The old Obama in new clothing (Washington Post) [ The truly sad
thing is that journalists / commentators as Mr. Krauthammer even waste
their time pointing out the obvious; viz., that wobama is an egregiously
flawed man, failed president, and a global embarrassment. Previous: Obama,
unbending Gerson: The president's tone has changed, but he has not.
(Washington Post) [ Come on! How can anyone discuss ‘wobama the b’ (for
b*** s***) as a serious ideologue when the reality is that he’s just utter and
total b*** s*** … by what he does, not what he says … he stands for nothing!
Previous: Grading the SOTU / Robinson (Washington Post) [ I say this
sincerely and without even a tinge of sarcasm that anyone who even
watched / listened to wobama’s ‘speech’ should be embarrassed / ashamed
of themselves (not that I listened to dumbya bush’s either). The grade is ‘f’
as in failure as is his failed presidency, as in ‘f’ himself. Wobama is but a
pathetic b*** s*** artist and a total embarrassment! Previous: Gerson:
Obama, more deficit hawk than GOP? (Washington Post) [ Come on! Where
do they get this stuff? Wobama not only continued war criminal dumbya
bush’s perpetual war, fraudulent wall street protectorate, etc., free-spending
ways, but added to the deficit in his own profligate ways; and, as I’ve said
before, democrats / republicans are but distinctions without significant
differences. Moreover, there’s the literal rearrangement of the congressional
deck-chair seating in the u.s.s. titanic halls for the non-event state of the
union (wobama the ‘b’ for b*** s***, more empty words belied by actions /
non-action) … Previous: Topic A: What should be in State of the Union?
(Washington Post) [ Well, at the very least, it should be noted that the states
of the union are crumbling (see bankruptcy headlines infra), ergo, the state
of the union is crumbling and precarious indeed. The problem with and for
wobama is that he’s been there, done that, and his words don’t match his
actions, as is so regarding his not easily forgotten campaign promises (from
perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’
as in last precursor to crash supplanting sound economics. Blame it on the
teleprompter … sounds like a plan! All we really know for certain is what
definitely will not be in the state of the union; viz., a solution to pervasively
corrupt, defacto bankrupt america’s intractable decline. ] ]
Fed's Broken Record: Recovery Too Weak For Job Growth Schaefer ‘The Federal
Reserve left its benchmark federal funds rate unchanged Wednesday and made
no change to its plan to purchase $600 billion in longer-term Treasury securities
by the end of June.According to the afternoon statement issued by the Federal
Open Market Committee, “the economic recovery is continuing, though at a rate
insufficient to bring about a significant improvement in labor market
conditions.”A confluence of factors continue to constrain household spending,
including high unemployment (9.4% at last check), modest income growth, lower
housing wealth and tight credit. The central bank addressed the rising prices in
commodity markets, chiefly oil and food, noting that “although commodity prices
have risen, longer-term inflation expectations have remained stable and
measures of underlying inflation have been trending downward.”January’s vote
passed without dissent, but that was due more to a change in the makeup of the
committee than any shift in the support for the path of Chairman Ben Bernanke.
Inflation hawk Thomas Hoenig, who has dissented against the Fed’s easy
monetary policy and asset purchase programs, is no longer a voting member
after his FOMC term ended at year’s end.Given the lack of anything new in the
Fed statement, it came as little surprise that major U.S. equity indexes held their
ground after the release. The Dow was up 26 points at 12,003, the S&P 500 7
points to 1,298 and the Nasdaq set the pace rallying 22 points to 2,742. The euro
was on hold in the high $1.36 range, while oil prices maintained their earlier
advance above $87 a barrel and gold was narrowly positive on the day at $1338
an ounce.’
Goldman Sachs Can’t Say It Didn’t Get Bailed Out Anymore — It Kept Billions
From AIG Even though Goldman Sachs execs testified on the Hill that AIG
bailout funds it received did not stay with the bank, but were dispersed as
compensation to clients and institutions on the other side of a prop trade
gone wrong, it actually kept $2.9 billion for itself, according to a report by
the FCIC.
Audit the Fed Reintroduced Congressman Ron Paul (TX-14) today introduced HR
459, The Audit the Fed Bill to the 112th Congress.
While the Financial Crisis Commission Report Looks Impressive At First Glance,
It Doesn’t Hit Hard Enough … and Won’t Lead to Any Real Change The
Financial Crisis Inquiry Commission largely blames Greenspan, Bernanke,
Geithner, Summers, the rating agencies, SEC and big banks for the
economic crisis.
Gold Usurps Dollar As Safe Haven for Worried Investors During the past few
years of global economic turmoil, the securities markets have been driven
by fear. When fear drives the market, the result is unusual market behavior
and decisions by investors that would normally not occur were fear not in
the driver’s seat.
Financial Crisis Inquiry Commission Slams Greenspan, Bernanke, Geithner,

Paulson, Summers, SEC, Rating Agencies and Big Banks for Causing Crisis
The Financial Crisis Inquiry Commission is releasing its report Thursday.
Marc Faber’s Most Provocative Interview Ever: Compares Obama To A Prostitute,
Goes Long Treasurys Earlier, Marc Faber appeared on Bloomberg TV, in
what may go down in history as his most scandalous interview ever.
Paper Money Madness: Inflation-Fueled Economic Growth Does Not Indicate That
An Economy Is Getting Stronger If the U.S. economy “grows” by 4 percent in
2011, but by the end of the year we are paying $3.00 for a loaf of bread, $4.00
for a gallon of milk and $5.00 for a gallon of gasoline are the American
people going to be better off economically or worse off?
Dollar Jumps Vs Yen After Japan’s Debt Rating Cut ABC | The dollar jumped
against the Japanese yen Thursday after ratings agency Standard & Poor’s
cut Japan’s credit rating because of the Asian country’s deepening debts,
but hit another 2-month low against the euro and lost ground against the
British pound.
How to Abolish the Fed and Convert to Gold as Money Activist Post | Now that Ron
Paul has become Chairman of the House Financial Services Subcommittee,
the managers at the Fed are facing the dreaded time when they may have to
reveal the secret dealings that they use to help their political and banking
friends worldwide.
Obama’s Spending Freeze Just ‘Spare Change’: Roubini CNBC.com | Obama

proposed a five-year freeze on non-discretionary defense spending for five
year to lower the deficit by about $400 billion.
National / World
CBO: Social Security to run permanent deficits (AP)

No stemming red ink: Federal deficit to hit $1.5T (AP)
Deficit Outlook Darkens Wall Street Journal - WASHINGTON—The federal

budget deficit will reach a record of nearly $1.5 trillion in 2011 due to the
weak economy, higher spending and fresh tax cuts, congressional budget
Associated Press
Why the CBO may not believe all its own deficit projections Christian Science
Monitor
“Obama Gun Grabbing” Tops Google Trends Infowars | Thanks to our fantastic
listeners, more awareness has been raised of the Obama administration’s
upcoming assault on the Second Amendment, with “Obama gun grabbing”
hitting top spot on Google Trends today.
Obama to Deliver Gun-grabbing Speech Soon Kurt Nimmo | White House will
unveil a brand spanking new gun control effort designed to strengthen
previous anti-Second Amendment laws on the books.
Shocker: Citizen Spy Networks to be Given Immunity Paul Joseph Watson | House
Homeland Security Chairman Peter King wants to shield “good citizens who
report suspicious activity” from the consequences of their actions
Police trained that FEMA camps are perfectly normal Milo Nickels | Placing
citizens in camps is not normal, it’s not necessary, and it never will be.
Journalist Backs Off Obama Birth Certificate Claim Kurt Nimmo | ‘Neil (a close
friend of Evans) never told me there was no birth certificate,” he told Fox
News. “I never talked to him.”Journalist Mike Evans is backing off a claim
that Hawaii governor Neil Abercrombie told him he was unable to find
Obama’s original birth certificate after a search of state and hospital
archives … A former Hawaii elections clerk, Tim Adams, signed an affidavit
swearing he was told by his supervisors in Hawaii that no long-form,
hospital-generated birth certificate existed for Obama in Hawaii, according
to Jerome R. Corsi and WorldNetDaily. According to Adams, neither Queens
Medical Center nor Kapi’olani Medical Center in Honolulu had any record of
Obama having been born in their medical facilities. “Senior officers in the
City and County of Honolulu Elections Division told me on multiple
occasions that no Hawaii long-form, hospital-generated birth certificate
existed for Senator Obama in the Hawaii Department of Health,” Adams’
affidavit reads, “and there was no record that any such document had ever
been on file in the Hawaii Department of Health or any other branch or
department of the Hawaii government.”…’
Drudgereport: EGYPT ON FIRE

Egypt rounds up Muslim Brotherhood leaders...
Internet shut down; no TWITTER, FACEBOOK...
RAW VIDEO: Unarmed protester shot dead in streets...
Jobless Claims... Rise
Foreclosure activity up across metro areas...
DNA: Humans 97% same as orangutans … 98% same as chimps ...
HE'S BACK: Rahm ruled eligible for mayoral run... [ No surprise here … lots of juice /
cash to go around … Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No
surprise here, mobster trump (how was trump missed in the recent big mafia bust
since he too is a corrupt bribe paying/receiving, drug money laundering among
other crimes, mobster), hollywood flakes like magic mushroom eater sorkin, LSD
aficionado jobs (I now realize what that premium priced disfunctional though
fanciful pizzazz of apple products that I would refuse to pay extra for stems from-
jobs says he owes it all to his LSD use-don’t forget, apple’s protected source
code, kernel, and consequent stability existed pre-jobs and I believe, particularly
after actually using an iphone, that the same is a way to extract money from an
ever increasingly dumbed down / dumb (and I think at the least, eccentric if not
obsessively pathological if you witnessed the near compulsive use of these
extraneous-rich, in a trivially frivolous way, devices) american public by
pandering to their desire for superfluous functionality which requires additional
purchases through apple-I do give them credit for the more elaborate interface /
touchscreen and the ipad, all of which is currently being duplicated ex-apple and
presenting greater values/utility/functionality for the money-so also credit for
pioneering), zionists including spielberg, etc.; no small wonder that chicago and
the nation are down the tubes. ] ... ]
CBO: This year's budget deficit to hit $1.5T (Washington Post) [Why the CBO
may not believe all its own deficit projections Christian Science Monitor CBO:
Social Security to run permanent deficits (AP)

Associated Press
] The nonpartisan budget agency predicts the deficit will drop to $1.1 trillion next
year.
U.S. seeks balanced approach to Mideast turmoil (Washington Post) [ Wow!

Talkin’ about balance. The response might be, ‘better late than never’, yet it won’t
take long for all to figure out that balance means heavily weighted to zionist israel
/ american interests which of course, ultimately at this rate they will have none of.
Indeed, america’s pro-israel stance in the region is now as good as it gets; which
ain’t too good and fading fast based on … reality. It’s what they do, not what they
say. Then there’s turmoil, and unforgotten turmoil brought to the region courtesy
of israel / american / nato ‘adventurism’ / manipulation / conflict / war which
animus will linger long after this more parochial turmoil has subsided. For
america to believe the old ways will pull through is a dream that will become a
nightmare for american aspirations in the region. ]
Federal Reserve stays course with bond-buying plan (Washington Post) [ Plan?
Did someone say Plan? Plan for whom? If you answered fraudulent wall
you’d be correct. Anyone else, not so much!
Fed Can’t Prop Up Stock Market Forever USA Watchdog | From the very beginning
of QE2, it was no secret the Federal Reserve wanted the stock market to rise.
“The Fed No Longer Even Denies that the Purpose of Its Latest Blast of Bond
Purchases … Is To Drive Up Wall Street infowars.com Of course, rather
than admit that the Fed is failing at driving down rates, rising rates are now
being heralded as a sign of success.
TrimTabs: “No Amount Of QE Will Be Able To Keep The Current Stock Market
Bubble From Bursting” Zero Hedge | If the money to boost stock prices by almost
$9 trillion from the March 2009 lows did not come from the traditional players, it
had to have come from somewhere else. We believe that place is the Fed. ]
Economic expansion is continuing, a Fed committee said in a statement, but not
quickly enough.
Obama, unbending Gerson: The president's tone has changed, but he has not.
(Washington Post) [ Come on! How can anyone discuss ‘wobama the b’ (for
b*** s***) as a serious ideologue when the reality is that he’s just utter and
total b*** s*** … by what he does, not what he says … he stands for
nothing! Previous: Grading the SOTU / Robinson (Washington Post) [ I say
this sincerely and without even a tinge of sarcasm that anyone who even
watched / listened to wobama’s ‘speech’ should be embarrassed / ashamed
of themselves (not that I listened to dumbya bush’s either). The grade is ‘f’
as in failure as is his failed presidency, as in ‘f’ himself. Wobama is but a
pathetic b*** s*** artist and a total embarrassment! Previous: Gerson:
Obama, more deficit hawk than GOP? (Washington Post) [ Come on! Where
do they get this stuff? Wobama not only continued war criminal dumbya
bush’s perpetual war, fraudulent wall street protectorate, etc., free-
spending ways, but added to the deficit in his own profligate ways; and, as
I’ve said before, democrats / republicans are but distinctions without
significant differences. Moreover, there’s the literal rearrangement of the
congressional deck-chair seating in the u.s.s. titanic halls for the non-event
state of the union (wobama the ‘b’ for b*** s***, more empty words belied by
actions / non-action) … Previous: Topic A: What should be in State of the
Union? (Washington Post) [ Well, at the very least, it should be noted that
the states of the union are crumbling (see bankruptcy headlines infra),
ergo, the state of the union is crumbling and precarious indeed. The
problem with and for wobama is that he’s been there, done that, and his
words don’t match his actions, as is so regarding his not easily forgotten
campaign promises (from perpetual wars, to no pros the frauds on wall
street, to new ‘bubble building’ as in last precursor to crash supplanting
sound economics. Blame it on the teleprompter … sounds like a plan! All
we really know for certain is what definitely will not be in the state of the
union; viz., a solution to pervasively corrupt, defacto bankrupt america’s
intractable decline. ]
Samuelson: Deficit dodgeball (Washington Post) [ In past posts I’ve disagreed

with the tenor if not substance of Mr. Samuelson’s articles, even so far, if my
memory on this unimportant point serves me, alluding to his need to bone up on
basic economics by way of that once ubiquitous Samuelson economics text (is
there a familial relation?), gently implying him to be a soft-touch / lightweight with
regard to all things economic / business; but, this really takes the cake and I find
his article, euphemistically speaking, sorely lacking. Even his dodgeball
reference, though I might be accused of nit-picking, is misplaced. This is no
game. The literal life or death of the nation is at stake. The insurmountable debt is
unsustainable. Yet, nowhere in his article is there even a mention of the
perpetual, needless wars abroad which I would argue have worsened the nation’s
security position (blowback, ill will, geopolitical antipathy, etc.). Indeed, this huge
expenditure on these needless wars is literally frittered away and even stolen (360
tons of $100 bills flown into Iraq disappear, etc.), abroad denying the economic
benefits of such if spent domestically. His lip service in two words, ‘(b)
downsizing other programs, including defense’ ( and no mention of the fraudulent
wall street computerized high-frequency programmed churn-and-earn / a negative
in real economic terms) , falls short and his article is sophomoric at best.
Financial Crisis Inquiry Commission Slams Greenspan, Bernanke, Geithner,

Paulson, Summers, SEC, Rating Agencies and Big Banks for Causing Crisis
The Financial Crisis Inquiry Commission is releasing its report Thursday.
Marc Faber’s Most Provocative Interview Ever: Compares Obama To A Prostitute,

Goes Long Treasurys Earlier, Marc Faber appeared on Bloomberg TV, in
what may go down in history as his most scandalous interview ever.
Paper Money Madness: Inflation-Fueled Economic Growth Does Not Indicate That
An Economy Is Getting Stronger If the U.S. economy “grows” by 4 percent in
2011, but by the end of the year we are paying $3.00 for a loaf of bread, $4.00
for a gallon of milk and $5.00 for a gallon of gasoline are the American
people going to be better off economically or worse off?
Fed to Pursue QE Even as Business Lending Gains The Federal Reserve will
probably push forward with $600 billion in securities purchases even as the
biggest jump in business loans in more than two years adds to signs the
U.S. economy is gaining strength.
Obama’s Spending Freeze Just ‘Spare Change’: Roubini CNBC.com | Obama

proposed a five-year freeze on non-discretionary defense spending for five
year to lower the deficit by about $400 billion.
Bank of England chief Mervyn King: standard of living to plunge at fastest rate
since 1920s The Telegraph | Households face the most dramatic squeeze in
living standards since the 1920s.
CBO: Social Security to run permanent deficits (AP)

Associated Press
Why the CBO may not believe all its own deficit projections Christian Science
Monitor
Stop Saying 'Mancession'! Unemployment Now Harder On Women

National / World
Altered States of the Union Harrison ‘By now, coverage of last night's State of
the Union is saturating every orifice of the next-generation media landscape.
From Twitter feeds to real-time blogs to traditional outlets and back, everyone
has an opinion and it's high time they share it!
We, at Minyanville, sympathize with the information deflation -- trying to consume

what's out there is akin to sipping water from a fire hose -- and it's our job to
provide a slightly different take on events that in one way or another shape
financial markets and those involved in them (not necessarily in that order).
Through that lens, I'll share some top-line vibes as we hike up our weekly Hump:
• What's the over/under on the man hours put into the seating chart last
night?
• How much of the speech was rhetoric and how much was realistic?
• One of the President's campaign promises was the specter of diplomacy

and working with the global community. Last night, he stressed the need to
“out-innovate, out-educate, and out-build the rest of the world."
• I get the need for competitiveness within a global community but that
statement seemed to encapsulate the "globalization vs. protectionism"
dynamic that we've long mused was an unintended consequence of policy
that injects drugs that mask the symptoms rather than medicine that cures
the disease.
• Sidebar: Ben Bernanke received a 66% approval rating from global

investors. Ya think? I mean, seriously -- why wouldn't he? My question is
two-fold. First, when did a grand experiment become a popularity contest?
Second, I'm a size seller of 66% when our children take the same poll
(much like Alan Greenspan's legacy failed to withstand the test of time).
• Is it me or was there a think bubble with a lamb chop in it sitting above

John Boehner's head as he watched the President from behind?
• I actually thought the President was speaking to me when he said, "There

are some corners that suggest we're changing the rules in the middle of the
game." He owned it -- he said, "the rules have changed' -- and veered the
conversation in the direction of the global competitiveness via the Internet.
• What he missed on that front, in my humble opinion, is that the Internet

was the most deflationary invention of all time! You see that pen in front of
you? You can buy that pen in 17,000 places in a few clicks of your mouse,
which is awesome -- if you want to buy a pen. If you manufacture and sell
pens however, it, in a word, sucks.
• Deficit reduction and tax cuts are not peas and carrots, Forrest.
• Full disclosure -- I voted for Obama because I believed the enormity of the
economic condition rendered it a "push" between the candidates (I'm not
defending that rationalization, I'm simply being honest in sharing it).
• The swing factor, for me, was the specter of diplomacy vs. the potential for
a "harder line," which in my view would have fast-tracked our tricky trifecta
of societal acrimony, social unrest, and geopolitical strife.
• I'm all for "being part of the solution rather than being part of the problem"
-- that's how we roll in the 'Ville -- but the first step in solving a problem is
admitting that you have one. As I watched the crowd last night, I couldn’t
help feel that it was a performance, and until we can get away from
popularity contests for public policy and move the needle towards tough
love, my fear is that the boom and bust cycle will continue with
increasingly rapid succession, with excess breeding excess, until
something truly unfortunate occurs. That’s not a proclamation on timing,
it’s an inevitable consequence that looms large, albeit currently invisible.
• But of course, that's just one man's humble opinion.’
State Of The Union Won't Help State Of The Market Lenzner ‘I was ready to
predict that the promise of a budget freeze, lower corporate taxes and upbeat
talk would pay off in higher stock prices, stronger dollar, lower interest rates,
rally in the bond market and lower gold, commodity prices. But, when I woke this
morning I realized the freeze was only on 10% of the budget, a $40 billion
reduction of a $1.5 trillion deficit. I understood that the possibility of a lower
corporate tax rate was going to be paid for by getting rid of tax loopholes used by
big business. Not very many details either. And then I tried to imagine the cost of
high speed rails, clean energy technology and faster internet access– and just
exactly who was going to pay for all this infrastructure over the next 2 or 3
decades.And I realized once again I had gotten hopeful about rhetoric and
Democratic Senators sitting next to Republican Senators. Reality’s always less
lustrous than rhetoric. Being a musical comedy fanatic all I could think of was
“Promises, Promises.” David Stockman’s stark reality check;; an admonition by
Reagan’s former budget chief to Obama for not telling it like it really is last night,
startled me out of a momentary reverie. I don’t think the American public could
take it. Then, I looked to see what Fed Chairman Ben Bernanke had been saying.
Seems he was waxing eloquent about the S&P 500 index being up 20% plus and
the broader Russell 2000 running up 30% plus–QE2– monetary policy– not fiscal
policy– had come through for the investor class. “It’s like a campfire reliant on
gasoline to maintain; when you stop pouring it on, it’s over; an absurd way to run
an economy,” emailed one of my market gurus.’
V for Victory Promo: You Are The Resistance TheAlexJonesChannel | All over the
world, defenders of freedom are making their mark. Be victorious and take
action.
Republicans Revive Proposed Legislation to Force ISPs to Retain User Data Kurt
Nimmo | Rep. Sensenbrenner wants to force ISPs to hold data on customers
without probable cause.
UN Human Rights Official Under Fire For Describing 9/11 As A Cover Up Steve
Watson | The majority of the members of the 9/11 Commission have
questioned the official account.
V for Victory: Latest Entries Infowars.com | Submissions to Alex Jones’ V For

Victory campaign continue to flood in.
Abercrombie Admits Failure To Discover Obama Birth Certificate Paul Joseph

Watson | Revelations of close friend of Hawaii Governor contradict official
claim that privacy laws prompted Abercrombie to abandon search.
Hersh: High-ranking members US military part of ‘Knights of Malta,’ ‘Opus Dei,’
Webster ‘ Speaking at a campus operated by Georgetown University’s
School of Foreign Service, [Seymour] Hersh said he was working on a new
book that details “how eight or nine neoconservative, radicals if you will,
overthrew the American government.” “It’s not only that the neocons took it
over but how easily they did it — how Congress disappeared, how the press
became part of it, how the public acquiesced,” he continued, according to
the published quotes. [...] He further claimed that Gen. Stanley McChrystal,
Vice Admiral William McRaven and others in the JSOC were members of the
“Knights of Malta” and “Opus Dei,” two little known Catholic orders. “They
do see what they’re doing — and this is not an atypical attitude among some
military — it’s a crusade, literally,” Hersh reportedly continued. “They see
themselves as the protectors of the Christians. They’re protecting them from
the Muslims [as in] the 13th century. And this is their function.” ‘
Ron Paul Attacks State Of The Union Theater Congressman Ron Paul dismissed
last night’s State of the Union political theater of making Republicans and
Democrats sit together as part of a tenuous symbolic gesture in connection
with the Tucson shootings as nothing more than “a bunch of fluff”.
Global Elite Cite China As Model For Economic New World Order Power in the
global economy is shifting from the advanced world to Asia as recovery
takes hold, Davos analysts said Wednesday, as political and business elites
began their annual meeting.
Drudgereport: ANALYSIS: Obama's Plan Would Cost Another $20 Billion, Raise
Taxes...
Rand Paul proposes $500 billion in federal budget cuts...
OBAMA WARNS AMERICANS: World economic rules have changed...
Address viewership falls from last year...
PAPER: Spaced out speech...
ROUBINI: Spending Freeze Just 'Spare Change'...
SHOCK CLAIM: Hawaii Gov. Admits There Are No Obama Birth Records In
Hawaii...
RETRACTION: 'I misspoke and I apologize,' reporter says...
STATE OF THE UNION: 81-Year-Old Man, 75-Year-Old Wife Severely Beaten In $18
Robbery (new york, s.i.)...
On public investment, Republicans again show they aren't serious (Washington

Post) [ I realize that Mr. Pearlstein means well and as a journalist / columnist
/ reporter he must write something; but, I take umbrage at any purported
distinctions between the two parties when measured against what they do in
broader strokes ( perpetual war, over-spending, protection for wall street
frauds, etc.) and their dissembling which I find nauseating and beyond the
pale. ] When talking about the federal government and its budget deficit,
Republican politicians love to score points by noting that "you'd never run
your household or your business that way." Then again, you'd never run
your household or your business by ignoring investment.
IED casualties in Afghanistan spike (Washington Post) [ Yeah! That progress

thing’s a b**ch! What do you expect them ( Petraeus optimistic on war ) to say?
That the money spent / diverted to these lucrative for the few war profiteers (360
tons of $100 bills flown into Iraq disappear, etc.) has been worth the defacto
bankruptcy of the nation. The new military brass as with gates’ cia are without
honor, from illegal drugs, to illegal arms, to war crimes, etc.. ]
Home prices fall, heightening fears of double dip (Washington Post) [ How ‘bout
just one big, continuing dip except for the protected frauds on wall street
who precipitated the decline! The debt levels are now insurmountable, the
nation’s defacto bankrupt, and the ‘no recession fed’s’ exacerbating all with
there new bubble for wall street’s sake that insiders and the frauds on wall
street will sell into. ] Only four areas posted year-over-year gains in
November, including Los Angeles, San Diego, San Francisco and the
Washington region.
Meyerson: On doing business (Washington Post) [ Come on! Wake up! There isn’t
one industry except entertainment (film particularly, and of course, hands on
health care) that can’t be done substantially cheaper (if not better, and some
would even argue better) in China. That’s the fact, jack! That’s reality! That’s
the structural shift that’s been the source of all that wall street cash
including huge, disproportionately ridiculous executive pay packages (along
with with wall streets protected frauds) … you know, that great sucking
sound that Ross Perot alluded to!
Grading the SOTU / Roboinson (Washington Post) [ I say this sincerely and
without even a tinge of sarcasm that anyone who even watched / listened to
wobama’s ‘speech’ should be embarrassed / ashamed of themselves (not that I
listened to dumbya bush’s either). The grade is ‘f’ as in failure as is his failed
presidency, as in ‘f’ himself. Wobama is but a pathetic b*** s*** artist and a total
embarrassment! Previous: Gerson: Obama, more deficit hawk than GOP?
(Washington Post) [ Come on! Where do they get this stuff? Wobama not only
continued war criminal dumbya bush’s perpetual war, fraudulent wall street
protectorate, etc., free-spending ways, but added to the deficit in his own
profligate ways; and, as I’ve said before, democrats / republicans are but
distinctions without significant differences. Moreover, there’s the literal
rearrangement of the congressional deck-chair seating in the u.s.s. titanic halls
for the non-event state of the union (wobama the ‘b’ for b*** s***, more empty
words belied by actions / non-action) … Previous: Topic A: What should be in
State of the Union? (Washington Post) [ Well, at the very least, it should be noted
that the states of the union are crumbling (see bankruptcy headlines infra), ergo,
the state of the union is crumbling and precarious indeed. The problem with and
for wobama is that he’s been there, done that, and his words don’t match his
actions, as is so regarding his not easily forgotten campaign promises (from
perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’ as in
last precursor to crash supplanting sound economics. Blame it on the
teleprompter … sounds like a plan! All we really know for certain is what
definitely will not be in the state of the union; viz., a solution to pervasively
corrupt, defacto bankrupt america’s intractable decline. ]
Drudgereport: BANKRUPTCY FOR STATES STUDIED

CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...
What Happened to 15 Million Jobs?
Wall Street's 'Bernanke' rally runs into headwinds...
Home sales hit 13-year low...
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce
it...
Obama daughter practices Chinese with Hu...
Chinese Tiger ate US Dove for lunch...
FBI 'largest' Mafia takedown...
Flowchart...
MTV PORN: Parents Television Council Calls for Fed Investigation Into 'SKINS'...
VIACOM PRESENTS: SEX AT 15!
Young Star Defends Show's Racy Content: 'It's What Teens Are Doing'...
TACO BELL Pulls Ads...
Teacher Suspended After 2nd Graders 'Sex Acts In Class'...
Joan Rivers calls Michelle Obama 'Blackie O'... [ ‘Blackie O’ … Very funny! … I
like that … but don’t look for joan on ‘The View’ anytime soon, or invites from the
whitehouse either … but of course, and ‘Blackie O’ might retort that joan will be
too busy anyway, reprising the role of ‘The Joker’ in the next Batman film by the
gifted director, Christopher Nolan, with AH new Catwoman … meow! ]
]
Robinson: It's hard to argue with that speech.
close to keep suckers suckered does not change the aforesaid. ]
The Great Debt Shift: No Wonder Currencies Are Under Pressure Browne ‘If one
were asked to describe the major global economic changes that have unfolded
since the financial crisis began, a good starting place would be the massive shift
of debt from the private to the public sector. Attempting to arrest a deepening
crisis, governments all around the world have bailed out businesses and
companies by transferring bad debts to the public books. Although these moves
have provided some current stability (after all, governments are much less likely
to default), the long-term consequences may be dire.
Two of the world's largest economies, the EU ($16 trillion) and the US ($14
trillion), have become the leading practitioners of private-to-public debt shifting.
The US has assumed the debts of banks, insurers, mortgage holders, and even
entire industrial sectors. The European Union has done the same for entire
states. The resulting public debt levels are, predictably, placing strains on both
the dollar and the euro.
Worse still, the bailouts have created a spirit of apathy toward debt accumulation.
Western governments have embarked on a debt binge for the ages. Already, the
credit ratings of the United States and some of the EU's core countries, such as
France and the UK, are being questioned.
While this socialization of private debt has created deep citizen resentment, it
remains to be seen whether political pressure is enough to hold back the tide. In
the US, the forces of fiscal restraint appear to have the upper hand at present;
but, this late in the game, it is far from certain that the newly elected fiscal hawks
will be able to avert civil unrest and debt default.
It is worth noting that the debt shift has offered some near-term benefits. Relieved
of repayment anxiety, many companies have posted very promising earnings
reports in recent months (one needs to only glance at Detroit). Despite continued
demand weakness, these companies have worked hard to improve their balance
sheets and raise operating margins. The resulting rally in share prices has given
rise to a belief that recovery is at hand.
However, despite buoyant share prices, unemployment continues at dangerously

high levels, depressing tax revenues and leading to much greater entitlement
spending. This has made public debt levels rise even faster.
Total world direct sovereign debt, excluding guarantees and unfunded medical
and pension obligations, is some $41.6 trillion dollars. When the $2.9 trillion owed
by global municipalities is included, total direct public sector debt is over $50
trillion. Against this total, even the wealth of cash-rich nations such as China
($2.85 trillion in foreign-exchange reserves) and Japan ($1.1 trillion in reserves)
pale into insignificance.
With so little credit to soak up the future financing needs of the US and the EU, it
is no wonder that both their currencies are coming under pressure. It should be
no surprise that Chinese President Hu began his state visit to the US by warning
that the debased dollar was causing much of the world's monetary problems -
and was thus no longer credible as the world's reserve. Once unshielded by that
great privilege, I forecast that the US dollar will plummet.
In many ways, the euro may fare little better. The EU has organized a $1 trillion
rescue package for its smaller members, but, in practice, there is not enough
money for all the troubled peripherals, let alone a core state like France or Spain.
Last week, the EU suggested that Greece should be allowed to default and
restructure much of its debt. The Irish Times reported that the EU has allowed
Ireland to print its own euros to settle the debts of its banks. Will it allow
Portugal, Spain, Belgium, Italy and France to do the same? If so, what credibility
will remain for the euro?
Possible because a major currency collapse is unprecedented in living memory,

investors have been slow to react. While the markets are calm at present, we
mustn't forget that the nature of panic is that it is sudden. It can erupt quickly and
overwhelm the unprepared. When it does, even supposedly rock-solid assets like
Treasury bonds may be discounted severely.
In such a climate, gold and silver are as faithful as Old Yeller.’
Bad Omens: Stocks Get Bad Breadth, Small Caps Lose Steam Dobosz ‘ “Jump on
the bus or get left behind,” shouted Mr. Market last September as stocks began a
persistent ascent without much of a pause that has continued into 2011. In recent
weeks, however, we’re starting to see slippage under the surface that suggests
the overall market has trouble ahead…’
Stick Save Bulls: Dave's Daily - ‘The headline writers couldn't keep up with the
late day "stick save" as most had stocks down on the day. But, editors got things
changed quickly. Bulls want Dow 12,000 and with another round of POMO the
easy money is there. It's not just us stating the obvious, Jeremy Grantham's
Pavlov's Dog on QE2 [ ‘But be aware that you are living on borrowed time as a
bull; on our data, the market is worth about 910 on the S&P 500, substantially less
than current levels, and most risky components are even more overpriced. ‘ ]
essay and even MarketWatch discussed this with "Market Addicted to QE." As far
as most are concerned, even Bernanke, B still follows A and one goal of QE is to
raise stock prices. Commodity prices were lower Tuesday as oil continues to
slide while precious metals fell. Remember, it's options expiration at the COMEX
Wednesday so caution is advised. Economic data was mixed with home prices
falling sharply while Consumer Confidence beat expectations. Earnings rolled in,
and with few exceptions, continued to beat analysts' estimates by wide margins
(What do they pay these guys?) Volume improved dramatically from Monday
while per the WSJ, breadth mixed to negative.’
Can You Hear the Waterfall? Nyaradi ‘One of the most intriguing aspects of
financial writing is the various colorful aphorisms that abound in this business.
We enjoy comments like “the trend is your friend,” and we hope to “let our
winners run” while we watch “bulls and bears” struggle for control of the hearts
and minds of the markets.One of my favorites and I think the one most applicable
for today is the concept of the “waterfall” or the “waterfall decline.” It’s certainly a
visual image and one that can clearly be seen on charts like the recent Shanghai
Composite that we’ll take a look at in a moment. With each passing day, the
probability of a waterfall decline in U.S. markets becomes more likely…’
Greece Default to Trigger Break of European Union by 2016, Bloomberg Poll

Shows A Bloomberg survey shows 48 percent believe one or more nations will
drop out of the European Union within the next 2-5 years. Only 23 percent believe
a nation will never drop out of the EU. Meanwhile, 74 percent believe it is likely
Greece will default on their sovereign debt and 53 percent believe Ireland will
default.
U.S. Trade Deficit Exports 1.3M Jobs Hansen ‘In Dr. Michael Pettis Econintersect
article - Currency Wars and Trade Woes but China Marches On - he concluded:
So that leaves the U.S. Either it can accept rising trade deficits as it
absorbs the employment problems of the rest of the world, or it can
move to intervene in trade. I don’t know what it will do, but I am
pretty confident that the domestic debate will intensify. One way or
the other the crisis in international trade is far from over. In fact the
day after I finished this entry the Financial Times, again, had a new
headline: “Trade war looming, warns Brazil.”
The burr under my saddle is jobs. I may leave that theme for a time but always
return. Trade deficits export jobs. Some think it is only money on balance sheet -
but it is jobs that are exported when when a country imports manufactured
goods.
Some quick facts using unadjusted data:
• Through November 2010 according to U.S. Census, the USA has

manufactured $4.55 trillion of goods in 2010.
• Total employment in the manufacturing industry is 11,660,000 according to
the BLS. This means that for every $1,000,000 of production in 2010, 2.56
people were employed.
• Through November 2010 according to US Census data, the USA has
exported $0.8 trillion of manufactured goods - or 17.5% of manufacturing.
• The total import of manufactured goods through November 2010 is a little
more than $1.3 trillion making the manufactured goods trade gap more
than $0.5 trillion.
• The manufacturing trade gap of $500,000,000,000 ($0.5 trillion) times 2.56
people per $1 million of manufacturing equals approximately 1.3 million
jobs…’
Fed to Pursue QE Even as Business Lending Gains The Federal Reserve will
probably push forward with $600 billion in securities purchases even as the
biggest jump in business loans in more than two years adds to signs the
U.S. economy is gaining strength.
WELCOME TO STAGFLATION: UK Economy Shrinks While Inflation Set To Rise

4% The UK economy seems to be quietly slipping back into recession. UK
economy contracted 0.5% in the fourth quarter compared to the consensus
of 0.5% growth.
Scotia-Mocatta Sells Out Of 1 Kilo Silver Bars It seems that not a day passes by
without some major dealer running out of a precious metal in inventory.
Russia Imposes Inflation-Driven Price Controls: Will Use Price Caps On “Socially
Important” Commodities Russia has just announced it would proceed with
price caps on a variety of foodstuffs, from buckwheat, to potatoes, assorted
fruits and vegetables and all other commodities it deems “socially
important” accoding to Russian newspaper gazeta.ru.
National / World
Naked Body Scanner Blamed For Woman’s Death Steve Watson | Those who pass
through the scanners will be at risk of long term health effects, such as
cancers, according to some scientists.
Ventura Lawsuit To Re-Ignite TSA Revolt? Paul Joseph Watson | Deadline for TSA
to respond to Bob Barr FOIA is today.
Moscow Attack May Result in Checkpoints Outside of Airports Kurt Nimmo | Less
than a day after the fatal suicide bomb attack on Moscow’s Domodedovo
airport, pilots and aviation security experts are calling for a reevaluation of
airport security.
Wall Street Partying in Davos as Bankers Escape Culpability for Crisis As Wall
Street chief executive officers flock to the World Economic Forum, they’ll be
breathing a sigh of relief along with the Swiss mountain air: There are no
panels on compensation or redesigning financial regulation.
E-mails Suggest Bear Stearns Cheated Clients Out of Billions Lawsuit alleges the
bank took extreme measures to defraud investors, and now JPMorgan may
be on the hook.
Carnegie Touts Green Credentials Of Genghis Khan For Slaughtering 40 Million

People Environmentalists are promoting a new historical hero in the fight
against global warming, none other than Mongol warlord Genghis Khan, with
the Carnegie Institution touting the emperor’s green credentials because his
empire slaughtered no less than 40 million people – an act that helped lower
carbon emissions and keep the planet cool.
22 Facts About California That Make You Wonder Why Anyone Would Still Want
To Live In That Hellhole Of A State Why in the world would anyone still want
to live in the state of California at this point? The American Dream Saturday,
January 22, 2011
Why in the world would anyone still want to live in the state of California at this
point? Residents of California have been forced to endure a brutally oppressive
level of taxation for many years, and yet the state of California has still managed
to find itself on the verge of bankruptcy. California Governor Jerry Brown
declared a “fiscal emergency” in his state on Thursday, but nobody is even
pretending that such a declaration is actually going to help matters. Brown wants
to cut even deeper into the state budget (even after tens of billions have already
been slashed out of it in recent years) and he wants to explore ways to raise even
more revenue.
Meanwhile, the standard of living in California is going right into the toilet.
Housing values are plummeting. Unemployment has risen above 20 percent in
many areas of the state. Crime and gang activity is on the rise even as police
budgets are being hacked to the bone. The health care system is an absolute
disaster. At this point California has the fewest emergency rooms per million
people out of all 50 states.
While all of this has been going on, the state legislature in Sacramento has been
very busy passing hundreds of new laws that are mostly about promoting one
radical agenda or another. The state government has become so radically anti-
business that it is a wonder that any businesses have remained in the state. It
seems like the moving vans never stop as an endless parade of businesses and
families leave California as quickly as they can.
One of the only things keeping the population of California relatively stable at this
point are the massive hordes of illegal immigrants that are constantly pouring
into California cities. There are certain areas of major California cities that you
simply do not ever want to go into anymore. In fact, there are rumors that the
police will not even venture into certain areas anymore.
Traffic in California is a bigger nightmare than it ever has been before and the
state cannot even keep up with repairing the roads and infrastructure that it
already has. There are a few areas of California where you can still see the
promise of greatness and the amazing natural beauty that once attracted tens of
millions of Americans to the state, but they are few and far between now. At this
point, most of the state is turning into one gigantic hellhole.
Perhaps the state could have some hope of turning things around if they had
some solid leadership, but at this point the vast majority of the politicians in the
state are pushing agendas that are so “radical” (not in a good way) and so “anti-
American” that it is absolutely frightening.
Of course on top of everything else there is the constant threat of wildfires,

mudslides and earthquakes. One day a really “big earthquake” is going to hit,
and once that happens many people believe that the geography of the state of
California could be permanently altered forever.
But what most people are focused on right now is the horrific financial condition
that the state of California currently is in. Governor Brown recently summarized
his analysis of California’s financial condition with the following statement:
“We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”
Yes, things really are that bad in California.
The following are 22 facts about California that make you wonder why anyone
would still want to live in that hellhole of a state….
#1 The California state government is facing a potential state budget deficit of 19

billion dollars this year, and California debt is rapidly approaching junk status.
One way or another the taxpayers of California are going to have to pay for this
mess somehow.
#2 California Governor Jerry Brown recently unveiled a “draconian” budget plan

for 2011 that includes 12 billion dollars more in spending cuts and that maintains
12 billion dollars in recent tax increases.
#3 The state of California currently has the third highest state income tax in the
nation: a 9.55% tax bracket at $47,055 and a 10.55% bracket at $1,000,000.
#4 California has the highest state sales tax rate in the nation by far at 8.25%.
Indiana has the next highest at 7%.
#5 Residents of California pay the highest gasoline taxes (over 67 cents per
gallon) in the United States.
#6 California had more foreclosure filings that any other U.S. state in 2010. The
546,669 total foreclosure filings during the year means that over 4 percent of all
the housing units in the state of California received a foreclosure filing at some
point during 2010.
#7 Home prices in some areas of California have completely fallen off a cliff. For
example, the average home in Merced, California has declined in value by 63
percent over the past four years.
#8 725 new laws (most of them either completely pointless or completely stupid)
went into effect in the state of California on January 1st.
#9 20 percent of the residents of Los Angeles County are now receiving public aid
of one kind or another.
#10 The number of people unemployed in the state of California is approximately

equal to the populations of Nevada, New Hampshire and Vermont combined.
#11 In some areas of California, the level of unemployment is absolutely
nightmarish. For example, 24.3 percent of the residents of El Centro, California
are now unemployed.
#12 Residents of California pay some of the highest electricity prices in the entire
nation.
#13 The state of California ranks dead last out of all 50 states in the number of
emergency rooms per million people.
#14 According to one survey, approximately 1 out of every 4 Californians under

the age of 65 has absolutely no health insurance.
#15 At one point last year it was reported that in the area around Sacramento,
California there was one closed business for every six that were still open.
#16 In the late 70s, California was number one in per-pupil spending on
education, but now the state has fallen to 48th place.
#17 In one school district in California, children as young as five years old are
being forced to watch propaganda films that tout the benefits of “alternative
lifestyles”, and parents are being told that no “opting out” will be permitted.
#18 The crime rate in the San Diego school system is escalating out of control.
The following is what San Diego School Police Chief Don Braun recently told the
press about the current situation….
“Violent crime in schools has risen 31 percent. Property crime has

risen 12 percent. Weapons violations (have gone up) almost 8
percent.”
#19 Oakland, California Police Chief Anthony Batts announced last year that due
to severe budget cuts there are a number of crimes that his department will
simply not be able to respond to any longer. The crimes that the Oakland police
will no longer be responding to include grand theft, burglary, car wrecks, identity
theft and vandalism.
#20 Things have gotten so bad in Stockton, California that the police union put up
a billboard with the following message: “Welcome to the 2nd most dangerous city
in California. Stop laying off cops.”
#21 During one recent 23 year period, the state of California built 23 prisons but
just one university.
#22 The farther you look into the future, the worse California’s financial problems
become. According to an article in the Wall Street Journal, California’s unfunded
pension liability is estimated to be somewhere between $120 billion and $500
billion at this point.
So could the state of California actually go bankrupt?
In Washington D.C., some lawmakers are now working very hard behind the
scenes to come up with a way to allow individual U.S. states to declare
bankruptcy.
If something like that is worked out in Washington, then certainly the state of
California would potentially be one of the first states to take advantage of it.
Unfortunately, the truth is that the state of California is a complete and total mess
at this point, and not even bankruptcy is going to fix much.
The state has become a rotting, festering hellhole that is getting worse by the
day. Yes, some really good people still live there, but there are some really, really
good reasons why so many people are leaving the state in droves.
But perhaps you disagree. Does anyone want to state the case in favor of the
state of California? Please feel free to express your opinion below….’
Economy News Nightmare: 20 Things That You Should Not Read If You Do Not
Want To Become Very Angry The Economic Collapse | Today America is very,
very frustrated.
#1 Today, millions of American families are digging deep into their savings and
investments in a desperate attempt to stay afloat. Over the past two years, U.S.
consumers have withdrawn $311 billion more from savings and investment
accounts than they have put into them.
#2 15 billion dollars: the total amount of compensation that Goldman Sachs paid
out to its employees for 2010.
#3 The number of American families that were booted out of their homes and into
the streets set a new all-time record in 2010.
#4 Dozens of packages that we buy in the supermarket have been reduced in size
by up to 20%. For example, there are now 2 less slices of cheese in a typical
package of Kraft American cheese, and there is now 9 percent less toilet paper in
a typical package of Scott toilet paper. So now, you may think that you are
paying the same amount for these items that you always have, but the truth is
that you have been hit with a large price increase.
#5 One Canadian company is making a ton of money shipping “millions and
millions of dollars” worth of manufacturing equipment from factories that are
being shut down in the United States over to new factories that are being set up
in China.
#6 In America today, the wealthiest 20% own a whopping 93% of all the “financial
assets” in the United States.
#7 Only 35 percent of Americans now have enough “emergency savings” to be
able to cover three months of living expenses.
#8 47 percent of all Americans now believe that China is the number one
economic power in the world.
#9 If the U.S. banking system is healthy, then why does the number of “problem
banks” continue to keep increasing? This past week the number of U.S. banks
on the unofficial list of problem banks reached 937.
#10 According to former U.S. Labor Secretary Robert Reich, the wealthiest 0.1%
of all Americans make as much money as the poorest 120 million.
#11 U.S. housing prices have now fallen further during this economic downturn
than they did during the Great Depression of the 1930s.
#12 According to some very disturbing new research, 45 percent of U.S. college
students exhibit “no significant gains in learning” after two years in college.
all-time record.
#14 The United Nations says that the global price of food hit an all-time record
high in December, and the price of oil is surging towards $100 a barrel, but the
U.S. government continues to insist that we barely have any inflation at all.
#15 The more Americans that are on food stamps the more profits that JP Morgan
makes. Today, an all-time record of 43.2 million Americans are on food stamps,
and JP Morgan is making a lot of money processing millions of those benefit
payments.
jobs.
#17 Dozens of U.S. states are either implementing tax increases in 2011 or are
considering proposals to raise taxes.
#18 The United States has had a negative trade deficit every single year since
1976.
#19 The U.S. national debt has crossed the $14 trillion mark for the first time, and
at some point during 2011 it will cross the $15 trillion mark.
#20 What the U.S. economy really needs is for the government to get off all of our
backs, but instead they continue to tighten their grip on us. In fact, the Obama
administration is proposing a “universal Internet ID” that would watch, track,
monitor and potentially control everything that you do on the Internet’
Eisenhower’s Worst Fears Have Been Realized Washington’s Blog | All in all it
appears that Eisenhower’s worst fears have been realized and his
remarkable and unique warnings given for naught.
Wikileaks Is The “Cognitive Infiltration” Operation Demanded by Cass Sunstein

[ The following is a very important read. That said, I’m still against the
censorship since one always, in the final analysis, must discern truth from
falsehood, information from disinformation, reality from propaganda. In
truth, I found it somewhat shocking and more than surprising that of all
places ‘to escape to’, Assange chose Orwellian england, puppet to the u.s.
and guarantor of servility to u.s./zionist interests, such is there own
desperate circumstances. ] Webster G. Tarpley | Awareness is growing
around the world that the Wikileaks’ theater of the absurd is radically
inauthentic — a psyop…’ Tarpley.net
January 22, 2011 Awareness is growing around the world that the Wikileaks-
Julian Assange theater of the absurd is radically inauthentic – a psyop.
Wikileaks and its impaired boss represent a classic form of limited hangout
or self-exposure, a kind of lurid striptease in which the front organization
releases doctored and pre-selected materials provided by the intelligence
agency with the intent of harming, not the CIA, nor the UK, nor the Israelis,
but rather such classic CIA enemies’ list figures as Putin, Berlusconi, Karzai,
Qaddafi, Rodriguez de Kirchner, etc. In Tunisia, derogatory material about
ex-President Ben Ali leaked by Wikileaks has already brought a windfall for
Langley in the form of the rare ouster of an entrenched Arab government.
Obama White House NSC Russia Director Michael McFaul Deploying IMF
Shock Therapist Boris Nemtsov as Wheelhorse of Feeble “Stop Putin in
2012″ Bid.
At Foggy Bottom and Langley, a manic fit has been building since the flight of
Ben Ali. US imperialist planners now believe they can re-launch their
shopworn model of the color revolution, CIA people-power coup, or
postmodern putsch against a whole series of countries in the Arab world
and far beyond, including Italy. The color revolutions had been looking
tarnished lately, as a result of the failure of the Twitter Revolution in Iran
back in June 2009. Previously, the Cedars Revolution of 2005 had failed in
Lebanon. The Orange Revolution in Ukraine had been rolled back with the
ouster of NATO-IMF kleptocrats Yushchenko and Timoshenko. In Georgia,
the Roses Revolution was increasingly discredited by the repressive and
warmongering regime of fascist madman Saakashvili.
US Seeks to Mobilize a New Generation of Young Nihilists Across the Globe
But now, NSC, State, and CIA believe that the color revolution has a new lease on
life, thanks to their estimate that the United States, because of Wikileaks and
Assange, has captured the imagination of a new generation of young
nihilists across the globe who are described as the post-9/11 generation,
estranged from governments and opposition parties, and thus ready to
follow Langley’s peroxide Pied Piper.
Assange started his intensive deployment phase this year with video of a Class A
US war crime in Iraq, which was very graphic but which dealt with an
incident which was already widely known. The second document dump
focused on Iraq, but now the targeting had shifted to Prime Minister Maliki,
and the Iranian asset whom the US by some strange coincidence was trying
to oust as leader of Iraq in favor of the US puppet Allawi. With the third
document dump, this time involving State Department cables, we found out
much derogatory gossip about such classic CIA targets as Russian prime
minister Putin, Italian Prime Minister Berlusconi, the Russian-Italian
strategic alliance, President Fernandez de Kirchner of Argentina, and
President Karzai of Afghanistan, along with jabs at supposed US allies who
need to be kept off-balance and dependent, including the Saudi Arabian
royal family, French President Sarkozy, and others. Wikileaks thus directs
the vast majority of its fire against figures who are part of the CIA’s enemies
list.
No Equal Time for CIA Covert Operations
Assange also provides a splendid pretext for draconian censorship and

limitations on the freedom of the internet. The totalitarian liberal Senator
Feinstein wants to bring back Woodrow Wilson’s infamous Espionage Act of
1917 in honor of Assange. Assange must be seen not as an activist, not as a
journalist, and not as an entertainer, but rather as a spook. John Young of
Cryptome, according to some reports, has denounced Wikileaks, to which
he formerly belonged, as a CIA front. In a December 29 RT interview, Young
described the internet as “a very large-scale spying machine.”1 The internet
is indeed a vast battlefield, where the intelligence agencies of the US-UK,
China, Israel, Russia, and many others clash every hour of the day, with
commercial spies, hackers, anarchists, cultists, mercenary trolls, and
psychotics all getting into the act as well. Intelligence agencies deliberately
feed real and doctored material to various websites, sometimes using their
own disgruntled employees as cutouts, conduits, and go-betweens. This
means among other things that Bradley Manning cannot be taken at face
value, although it is also clear that he like anyone else should not be
tortured.
Assange is now famous, it might be argued. But the Wall Street controlled media
can make anyone famous, from Lady Gaga to Justin Bieber to Snooki, and
this is what they have done with Assange. It is wrong to capitulate to the
demagogic power of these media by making it appear that there might be
some legitimate value to Assange. Up to now, the CIA has been organizing
color revolutions using Twitter, Facebook, Youtube, and so forth as
vehicles. Now they think they have a cult figure whom they can sell to the
youth bulge in the Arab world and other developing countries, where most
of the population is under 30. This is an operation which must be exposed.
Most recently, Wikileaks has played a role in the CIA’s new “Jasmine Revolution”
in Tunisia by publishing some State Department cables about the sybaritic
luxury and lavish lifestyle of the Ben Ali clan, leading to the downfall of that
regime. The CIA is now gloating that with the help of Wikileaks it can now
topple all the Arab regimes at will, from Mubarak to Qaddafi to Bouteflika,
and replace them with new and more pliable puppets eager to clash with
Iran, Russia, and China
If Assange ever launches his much-touted doomsday machine against the Bank
of America or some other financial institutions, we will be justified in asking
that the Securities and Exchange Commission make public the extent of
short interest in those stocks by certain hedge funds, especially those
controlled by George Soros. And as far as Assange’s attacks on the Vatican
are concerned, they fit neatly into four centuries of British intelligence
warfare against the Holy See, going back to Guy Fawkes and Lord Robert
Cecil’s Gunpowder Plot of 1605 and beyond. Not much new or radical here.
Wikileaks: No Serious Derogatory Information about US, UK, Israel
It is illuminating that none of Assange’s document dumps have revealed any

notable scandals involving Great Britain or Israel. No US public figures have
had to resign because of anything Wikileaks has done. No major ongoing
covert operation or highly placed agent of influence has been blown. After
all these months, there are still no US indictments against Assange, even
though we know that a US grand jury will readily indict a ham sandwich if
the US Attorney demands it. If the CIA had wanted to silence Assange, they
could have subjected him to the classic kidnapping aka rendition, meaning
that he would have been beaten, drugged, and carted off to wake up in a
black site prison in Egypt, Poland, or Guantanamo Bay. Otherwise, the CIA
could have had recourse to the usual extralegal wetwork. We must also
assume that the new US Cybercommand with its vast resources would have
little trouble shutting down the Wikileaks mirror sites, no matter how
numerous they might be. The same goes for Anonymous and other flanking
organizations of Wikileaks. But these considerations are purely fantastic.
Assange emerges today as the pampered darling and golden boy of The
New York Times, Der Spiegel. The Guardian, El Pais — in short, of the entire
Anglo-American official media Wurlitzer. He reclines today in baronial
splendor in the country house of a well-connected retired British officer who
should be quizzed by the media about his ties to British intelligence. The
radical-chic world, from Bianca Jagger to Michael Moore, is at Assange’s
feet.
Cass Sunstein Present at the Creation of Wikileaks
Wikileaks was apparently founded in 2006. Originally, the group was programmed
to attack China, and its board was heavily larded with fishy Chinese
dissidents and “democracy” activists from the orbit of the Soros
foundations. Interestingly, the first big publicity breakthrough for Wikileaks
in the mainstream US media was provided by an infamous totalitarian liberal
today ensconced in the Obama White House – none other than Cass
Sunstein. In Sunstein’s op-ed published in the Washington Post of February
24, 2007 under the title “Brave new Wikiworld,” we read: “Wikileaks.org,
founded by dissidents in China and other nations, plans to post secret
government documents and to protect them from censorship with coded
software.” How interesting that Sunstein was present at the creation of the
new Wikileaks psywar operation!
This is the same Sunstein who today heads Obama’s White House Office of
Information and Regulatory Affairs. In his January 2008 Harvard Law School
Working Paper entitled “Conspiracy Theories,” Sunstein infamously
demanded that the United States government deploy groups of covert
operatives and pseudo-independent agents of influence for the “cognitively
infiltration of extremist groups” – meaning organizations, activists and
Internet websites who espouse beliefs which Sunstein chooses to classify
as “false conspiracy theories.”
Wikileaks = Cass Sunstein’s Program for Cognitive Infiltration In Action
It should be clear that Assange and Wikileaks are precisely the practical
realization of Sunstein’s program for “cognitive infiltration” shock troops to
counteract and overwhelm any real mass understanding of oligarchical
domination in the modern world, and any discussion of what kind of
economic policies are needed to secure a recovery from the present world
depression.
In line with Sunstein’s recipe, Assange is a self-declared enemy of 9/11 truth. As

Assange told Belfast Telegraph reporter Matthew Bell last July, “I’m
constantly annoyed that people are distracted by false conspiracies such as
9/11, when all around we provide evidence of real conspiracies, for war or
mass financial fraud.” In other words, Assange argues that the truth about
9/11 truth is not nearly as radical as the various scandals which Wikileaks
claims to expose. But the scandals Assange is offering target mostly the
adversaries of the CIA.
Assange must also be seen as a deeply troubled individual and a possible

psychopath. He has the ravaged emotional complexion that we might expect
from an alumnus of one of the many MK-Ultra operations. He reportedly
spent several years in the menticidal Anne Hamilton-Byrne cult (also known
as The Family and Santiniketan) near Melbourne, Australia. Here little
children were separated from their parents and made to ingest LSD,
Anatensol, Diazepam, Haloperidol, Largactil, Mogadon, Serepax, Stelazine,
Tegretol, Tofranil, and other potent psychopharmaca. Dozens of children
were told that Hamilton-Byrne was their real mother, and had their hair dyed
blond. Anne Hamilton-Byrne reportedly regarded blond hair as a sign of
racial superiority. Careful observers will have noted that Assange’s hair is
sometimes blond, sometimes more brownish, raising the question of
whether his grooming practices are a residue of his time with Hamilton-
Byrne, whom he says he does not remember. When other kids were getting
cookies and milk, was Assange being lobotomized by LSD and other potent
psychopharmaca dished up by Hamilton-Byrne? There is evidence pointing
in that direction.
With Assange, we thus have the tragic spectacle of the emotionally mutilated
product of a CIA (or MI-6) covert operation of 40 years ago, who has now
been given a prominent role in a key counter-insurgency ploy of the present
time. Will the youth of the world, already burned by their recent fatuous
obsession with Obama, be duped again by such an impaired individual?
The Precedent: Pentagon Papers Whitewashed CIA, Blamed Army, Demonized

Kennedy
Assange’s revelations mainly involve communications labeled Confidential or

Secret, and which in reality would be over-classified if marked Official Use
Only. In other words, Assange is in reality a purveyor of low level cable
traffic, not of earth-shattering secrets. This reminds us of an earlier CIA
limited hangout operation, the one known as the Pentagon Papers. This was
a carefully screened selection of historical documents, supplemented by
outright forgeries, relating to the Vietnam War and compiled by Morton
Halperin and Leslie Gelb, both of whom have gone on to glittering careers in
the imperialist foreign policy establishment – Gelb became president of the
Council on Foreign Relations, while Halperin serves today as chief political
officer of the Soros wolfpack of foundations. The papers were leaked by
former RAND Corporation official Daniel Ellsberg, who had been a very
bellicose hawk in Vietnam before a suspicious Damascus Road conversion
to pacifism, and then published in the US establishment press – similarly to
Assange today. There was nothing in the Pentagon papers which a casual
reader of LeMonde or Corriere della Sera did not already know. But, as Mort
Sahl later said, left liberals have generally had very few heroes, so they
battened on to Ellsberg and lionized him – led by Noam Chomsky, Howard
Zinn, and some others. (This is a syndrome which we see again today: at the
moment when Obama’s treacherous sellout on the Bush tax cuts was
providing a final disillusionment for many gullible left libs, Assange arrived
on the scene as their new Savior. Not by chance, Ellsberg has now
designated Assange as his own reincarnation, and thus surely the new
Messiah.)
The Pentagon papers had been carefully selected by the CIA itself to cover up
CIA war crimes in Vietnam, blaming these on the US Army wherever
possible, while also obscuring the CIA’s massive program of drug
production and narcotics smuggling. The Pentagon Papers systematically
hid the salient political fact of the entire Vietnam era, which is that President
John F. Kennedy before he was assassinated was preparing to end the de
facto US combat role in that country. Instead, Kennedy was systematically
demonized and smeared, emerging as the villain of the piece. Needless to
say, the Pentagon papers throw no light whatsoever on the CIA role in the
Kennedy assassination – in the same way that Assange’s various document
dumps tell us nothing of importance about 9/11, the Rabin assassination,
Iran-contra, the 1999 bombing of Serbia, the Kursk incident, the various CIA
color revolutions, or many of the other truly big covert operations of the past
decades.
The limited hangout is not new; it was described in a secret memorandum by

Venetian intelligence chief Paolo Sarpi to the Venetian Senate in 1620 as the
art of “saying something good about somebody while pretending to be
saying something bad.” That is the common denominator of the CIA’s
limited hangout operations from Ellsberg to Philip Agee to Assange, with so
many other “former” CIA operatives turned “whistleblowers” along the way.
‘
Drudgereport: CUT! WHAT?!

GOOGLE Comes Under Fire for 'Secret' Relationship with NSA...
IMF: Instability Threatens Recovery...
OH NO: Price Drop Points to Likely Double Dip in Housing Market...
Jobless Rise in 20 States as Workers Still Laid Off...
UK Economy May Be Heading for Double Dip...
Obama will 'have to produce birth certificate' to run again...
NYT: Former Spy With Agenda Operates Own Private CIA... [ Quite serious a problem
… Remember … these people really are quite stupid but self-interested if not greedy; and, if the
money’s right, they wrap themselves in the flag and find a reason … remember ollie north who’s
an absolute dope … and there are many, many more worse than him. Then there’s their war
mongering which of course is the precursor to their war profiteering, etc.. ]
it...
BACKTRACK: Now Hawaii won't release birth info...
Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No surprise here, mobster
trump (how was trump missed in the recent big mafia bust since he too is a
corrupt bribe paying/receiving, drug money laundering among other crimes,
mobster), hollywood flakes like magic mushroom eater sorkin, LSD aficionado
jobs (I now realize what that premium priced disfunctional though fanciful
pizzazz of apple products that I would refuse to pay extra for stems from-jobs
says he owes it all to his LSD use-don’t forget, apple’s protected source code,
kernel, and consequent stability existed pre-jobs and I believe, particularly after
actually using an iphone, that the same is a way to extract money from an ever
increasingly dumbed down / dumb (and I think at the least, eccentric if not
the nation are down the tubes. ] ...
COURT: Candidate 'must have actually resided' in city for 1 year before election...
Plans appeal to Illinois Supreme Court...
CHICAGOLAND SHOCK: RAHM BOOTED OFF BALLOT
China 'on Collision Course' with USA...
Bank Moves to Buy U.S. Branches...
Stealth fighter 'based on crashed American plane'...
Chinese Pianist Played Anti-American Propaganda Tune at White House?
Emanuel vows to fight ballot ruling (Washington Post) [ Ill. court rules on
Emanuel … OPINION: Rahm got robbed (of his and of those of his prospective
booty) Drudgereport: Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No
surprise here, mobster trump (how was trump missed in the recent big mafia bust
since he too is a corrupt bribe paying/receiving, drug money laundering among
other crimes, mobster), hollywood flakes like magic mushroom eater sorkin, LSD
aficionado jobs (I now realize what that premium priced disfunctional though
fanciful pizzazz of apple products that I would refuse to pay extra for stems from-
jobs says he owes it all to his LSD use-don’t forget, apple’s protected source
code, kernel, and consequent stability existed pre-jobs and I believe, particularly
after actually using an iphone, that the same is a way to extract money from an
ever increasingly dumbed down / dumb (and I think at the least, eccentric if not
presenting greater value/utility/functionality for the money-so also credit for
NYT: Former Spy With Agenda Operates Own Private CIA... [ Quite serious a problem
… Remember … these people really are quite stupid but self-interested if not greedy; and, if the
money’s right, they wrap themselves in the flag and find a reason … remember ollie north who’s
an absolute dope … and there are many, many more worse than him. Then there’s their war
mongering which of course is the precursor to their war profiteering, etc.. ]
it...

127 'mobsters' arrested in biggest ever blitz on New York's crime empires
( This is a very big deal!
http://albertpeia.com/mafiafamilytreeflowchartFBIarrests.htm ) ]
Hezbollah-backed candidate has votes to become prime minister (Washington

Post) [ Now who could possibly deny the rationality of the Lebanese wisdom of a
leader that puts not war crimes nations israel / u.s. and nato allies interests, but
rather the interests of Lebanon and the Lebanese people first beyond words and
propaganda based on what they do; ie., most recent of many in the region: US-
led airstrikes kill Afghan civilians 1-24-11Two separate airstrikes by US-led
foreign forces have killed at least five civilians and wounded several others in
various parts of Afghanistan. ] BEIRUT - The Shiite armed movement Hezbollah
on Monday had the support needed for its candidate to become Lebanon's prime
minister, effectively ending the Western-backed rule of U.S. allies who came to
power more than five years ago.
Obama won't endorse Social Security cuts (Washington Post) [ Is that written in
stone? Does that mean veto? Is this failed presidency pre-election year
desperation? Where will the cuts come from for ‘deficit reduction’? What does the
teleprompter say? For some, social security is all they have, many corporate
pensions underfunded, defunct from bankruptcies, non-existent, etc.. Now there
is a very rich pension fund that the citizens have paid for and does have a lot of
fat for cutting; viz., Wikipedia: ‘Congressional pension is a pension made
available to members of the United States Congress. Members who participated
in the congressional pension system are vested after five (5) years of service. A
full pension is available to Members 62 years of age with 5 years of service; 50
years or older with 20 years of service; or 25 years of service at any age. A
reduced pension is available depending upon which of several different
age/service options is chosen. If Members leave Congress before reaching
retirement age, they may leave their contributions behind and receive a deferred
pension later.[1]’ … official site: ‘Members of Congress are eligible for a pension
at age 62 if they have completed at least five years of service. They are eligible for
a pension at age 50 if they have completed 20 years of service, or at any age after
completing 25 years of service. The amount of the pension depends on years of
service and the average of the highest three years of salary. By law, the starting
amount of a member’s retirement annuity may not exceed 80 percent of his or her
final salary. As of October 1, 2000, the average annual pension for members of
Congress who have retired under CSRS is $52,464, and $46,932 for retirees under
FERS-only or both FERS/CSRS. ‘ ]
Economic policy stuck in reverse (Washington Post) Jeff Sessions | Opinion We

have seen no real plan, no strong leadership, no apparent willingness to
confront the growing danger on the horizon. [ Mr. Sessions is right on target
and for me to comment further would only take away time from the ‘must
read’ substantive article by Mr. Sessions! ]
Gerson: Obama, more deficit hawk than GOP? (Washington Post) [ Come on!
Where do they get this stuff? Wobama not only continued war criminal dumbya
bush’s perpetual war, fraudulent wall street protectorate, etc., free-spending
ways, but added to the deficit in his own profligate ways; and, as I’ve said before,
democrats / republicans are but distinctions without significant differences.
Moreover, there’s the literal rearrangement of the congressional deck-chair
seating in the u.s.s. titanic halls for the non-event state of the union (wobama the
‘b’ for b*** s***, more empty words belied by actions / non-action) … Previous:
Topic A: What should be in State of the Union? (Washington Post) [ Well, at the
very least, it should be noted that the states of the union are crumbling (see
bankruptcy headlines infra), ergo, the state of the union is crumbling and
precarious indeed. The problem with and for wobama is that he’s been there,
done that, and his words don’t match his actions, as is so regarding his not easily
forgotten campaign promises (from perpetual wars, to no pros the frauds on wall
street, to new ‘bubble building’ as in last precursor to crash supplanting sound
economics. Blame it on the teleprompter … sounds like a plan! All we really know
for certain is what definitely will not be in the state of the union; viz., a solution to
pervasively corrupt, defacto bankrupt america’s intractable decline. ]
it...
Flowchart...
]
there’s much, much worse to come! ]
there’s much, much worse to come! ]
Bad Omens: Stocks Get Bad Breadth, Small Caps Lose Steam Dobosz “Jump on
the bus or get left behind,” shouted Mr. Market last September as stocks began a
persistent ascent without much of a pause that has continued into 2011. In recent
weeks, however, we’re starting to see slippage under the surface that suggests
the overall market has trouble ahead.
Specifically, the breadth of the market is starting to stink, and the there is an
ominous divergence in the performance of small and large capitalization stocks
that has preceded weakness each time it’s occurred in the past 31 years.
In 2010, shares of smaller companies in the Russell 2000 Index produced a total
return of 26.9%. That was nearly double the 14.1% total return for the biggest of
the big in the Dow Jones Industrial Average and the 15.1% return for the S&P 500
Index. When smaller, more speculative stocks outperform the blue chips it’s
usually a good sign because it indicates that people are willing to take risks and
supports higher stock prices.
Now that trend might be turning as smaller stocks lose ground while a
comparatively few large caps roll higher.
“Both the DJIA and Russell 2000 closed at a 52-week high two weeks ago, and
then the DJIA closed at another high last week while the Russell 2000 lost more
than 1%,” says Jason Goepfert in his Monday SentimenTrader Morning Report.
“Going back to 1979, this has occurred only three other times.”
Goepfert’s scan of market history shows that on the three prior occasions when
the Dow and Russell diverged like this, the road ahead was a rocky one for
stocks: “April 1, 1998, after which the DJIA lost more than 15% during the next six
months, while never gaining more than 2.5%; January 7, 2000, after which the
DJIA lost more than 14% during the next two months, while never gaining more
than 1.8%, and January 19, 2007, after which the DJIA lost more than 4% during
the next two months, while never gaining more than 1.8%.”
A rising VIX and CS Fear Barometer (reflecting price of SPX puts), along with a
sharp rise in buying climaxes last week (stocks hitting 52-week highs but then
closing lower for the week) add to Goepfert’s bearish outlook for the next several
weeks.
[chart]
Furious uptrend
“The equity-only put-call ratios and the breadth oscillators are all on sell signals
at this time, ” says options guru Larry McMillan in his Monday morning Daily
Volume Alert, noting the deteriorating advance-decline ratio within the S&P 500.
On the rising VIX, McMillan says a “clear breakout close above 18-1/2 would be a
big negative for the stock market.” Watch to see how support holds on the S&P
500 at 1262, he advises.
Some stocks are already showing signs of fresh technical damage or bullish
trends under serious pressure. After gapping higher on Friday morning, Google
(GOOG) slipped all day with a nearly 30-point intraday reversal to close near the
low at $611.83. Also, Buffalo Wild Wings (BWLD) hit a five-month low on Friday
with put option volume more than 3.5 times call volume.’
Can You Hear the Waterfall? Nyaradi ‘One of the most intriguing aspects of financial
writing is the various colorful aphorisms that abound in this business. We enjoy
comments like “the trend is your friend,” and we hope to “let our winners run” while we
watch “bulls and bears” struggle for control of the hearts and minds of the markets.One
of my favorites and I think the one most applicable for today is the concept of the
“waterfall” or the “waterfall decline.” It’s certainly a visual image and one that can clearly
be seen on charts like the recent Shanghai Composite that we’ll take a look at in a
moment.
With each passing day, the probability of a waterfall decline in U.S. markets
becomes more likely.
On My Radar
On a technical basis, the markets remain overstretched and ripe for a correction,
while fundamentally, we saw selling on good news and earnings that are “good” now
suddenly don’t appear to be “good enough.” By many analysts’ measurement, the
market is overvalued by as much as 50-60% with one of my favorites, Tobin’s Q,
developed by Nobel Prize Winner, James Tobin, currently indicating an overvaluation of
63% (Doug Short) [chart] In this chart of the S&P 500, we can see that we’re still in a
definite uptrend with prices above the 20, 50 and 200 day moving averages, however,
RSI is in the oversold, “red zone,” and MACD has recently switched to a “sell” signal
[chart] Looking at the chart of the Shanghai Composite, we see it in the red and black
candlesticks with the overlay of the S&P 500 in black bars. It’s easy to see how the two
have been closely correlated until just early December and the “waterfall declines" last
April and more recently since November in the Shanghai are clearly visible. This recent
negative divergence between the two indexes is an alarming development and one
which most likely will need to be resolved with either a rally in China or a correction in
the U.S. market. Finally taking a look at the “health” of the overall market, we see a
definite case of “Bad Breadth” which could definitely be worse than bad breath and not
easily cured with a breath mint. [chart] Here we see a chart of the NYSE Summation
index, and here, too, we see a negative divergence between the S&P in black and the
Summation in red. The Summation is a measurement of market breadth, comparing the
number of advancing stocks to declining stocks, and here we see that while the S&P
has continued its recent climb, the Summation Index has been in decline, indicating that
a smaller and smaller number of stocks in the universe of the New York Stock
Exchange is participating in the current rally.
The View From 35,000 Feet
Last week’s news was mostly good with existing home sales up 12%, job claims down
and building permits advancing 17%, but still from historically moribund levels.Overall,
earnings have been positive, particularly in the tech sector, and this week will be the
test of earnings seasons with over 100 reports coming from S&P 500 companies.On the
bad news side of things, the 10 Year Treasury yield hit a six week high while the 30
year hit an eight month high as the rout in the bond market continued. The spread
between the 5 and 10 year notes is extremely steep at current levels and indicates the
bond market’s concern about the prospects of future inflation. Of course, rising yields
are bad news for stocks in general, for credit, lending and economic growth and for the
Fed’s current drive to lower interest rates through their ongoing quantitative easing
programs.Further bad news came in the bond market with last week’s TIPS (Treasury
Inflation Protected Securities) sale bringing a record dollar amount to market that was
met by the lowest demand in almost two years.Four banks failed on Friday, bringing the
year’s total to 7 and we could see an ongoing stream of failures as 860 banks currently
reside on the FDIC problem bank list.Overseas, Ireland’s government was thrown into
turmoil this weekend as the Greens left the government, destroying Brian Cowen’s
majority and likely triggering an early election and more uncertainty over the Irish bailout
package and attempts to return to fiscal solvency.Whispers abound over the possibility
of Greece restructuring its debt while the European Union presses ahead with various
ideas to beef up their economic rescue efforts on the Continent.At home, the debate
over raising the debt ceiling is sure to heat up as the March target date for reaching the
ceiling rapidly approaches and President Obama delivers his State of the Union
message on Tuesday. This will come against the backdrop of the debt ceiling, renewed
calls for “austerity” in Congress and the not so quiet whispering of Newt Gingrich that
Congress will soon be considering a bill to allow states to declare bankruptcy as a way
to alleviate their gargantuan credit woes. With California and Illinois in junk status and
many other states facing gaping budget deficits, such talk, not to mention action, could
be a major earthquake in the supposedly rock solid municipal bond market which has
largely been considered to be the ultimate safe haven.
What It All Means
Interesting times indeed as the roar of the waterfall grows louder.
The Week Ahead
This week will see a rash of earnings reports as we previously mentioned, including
reports from closely watched corporations like ATT (T), American Express (AXP),
Yahoo (YHOO), Boeing (BA), Caterpillar (CAT), D.R. Horton (DHI), Procter & Gamble
(PG), Amazon (AMZN) and Microsoft (MSFT). With reports coming from nearly every
sector of the economy, we should have a much clearer picture by week’s end about
how these companies are faring in the current environment.And on Wednesday we hear
from Chairman Bernanke and his colleagues at the Federal Reserve whose every word
will be sliced and diced for hints of their outlook on the economy and planned future
actions by their august body.
Economic Reports
Tuesday: Case/Shiller Home Price Index, January Consumer Confidence
Wednesday: December New Home Sales, FOMC meeting
Thursday: Initial Unemployment Claims, Continuing Unemployment Claims, December
Durable Goods, November Pending Home Sales
Sector Spotlight
Winners: (NYSEArca: EWI) Italy, (NYSEArca: EWP) Spain, (NYSEArca: VXX) CBOE
Volatility Index
Losers: (NYSEArca: USO) Oil, (NYSEArca: MOO) Agriculture, (NYSEArca: XLB)
Materials’
U.S. Trade Deficit Exports 1.3M Jobs Hansen ‘In Dr. Michael Pettis Econintersect
article - Currency Wars and Trade Woes but China Marches On - he concluded:
So that leaves the U.S. Either it can accept rising trade deficits as it
absorbs the employment problems of the rest of the world, or it can
move to intervene in trade. I don’t know what it will do, but I am
pretty confident that the domestic debate will intensify. One way or
the other the crisis in international trade is far from over. In fact the
day after I finished this entry the Financial Times, again, had a new
headline: “Trade war looming, warns Brazil.”
The burr under my saddle is jobs. I may leave that theme for a time but always
return. Trade deficits export jobs. Some think it is only money on balance sheet -
but it is jobs that are exported when when a country imports manufactured
goods.
Some quick facts using unadjusted data:
• Through November 2010 according to U.S. Census, the USA has

manufactured $4.55 trillion of goods in 2010.
• Total employment in the manufacturing industry is 11,660,000 according to
the BLS. This means that for every $1,000,000 of production in 2010, 2.56
people were employed.
• Through November 2010 according to US Census data, the USA has
exported $0.8 trillion of manufactured goods - or 17.5% of manufacturing.
• The total import of manufactured goods through November 2010 is a little
more than $1.3 trillion making the manufactured goods trade gap more
than $0.5 trillion.
• The manufacturing trade gap of $500,000,000,000 ($0.5 trillion) times 2.56
people per $1 million of manufacturing equals approximately 1.3 million
jobs.
I will skip raising the 1.3 million job estimate by using the somewhat controversial
jobs multipliers (that in theory means a manufacturing job lost likely causes two
addition jobs being lost in the service industry). I will even ignore that it is likely
the type of jobs being exported are of higher labor content then the current mix of
existing manufacturing jobs. The 1.3 million estimate is likely significantly
understated - and the real number is probably in excess of 5 million. That is close
to half of the full-time jobs lost in The Great Recession.
Trade is not about money - it is about jobs.
Market Recommendations Made This Week
An Alternate View on Housing: 2011 May Be Homebuilders' Time to Shine -
Recommended a second look at the homebuilder's sector as the backlog should
turn positive in 2011. Regardless of viewpoint on growth potential for this sector,
the money bleed caused by downsizing will end this year allowing higher profits.
Economic News this Week
Econintersect economic forecast for January 2010 pointing to a slightly
improving economy. This week the Weekly Leading Index (WLI) from ECRI
continued to improve from 3.6 to 4.1 implying the business conditions six months
from now might be improving. Six months ago, the WLI was negative that
December should have been slightly worse then July 2010. This December data
has been coming in fairly strong.
[chart]
The Conference Board Leading Economic Index® (LEI) for the U.S. increased 1.0
percent in December to 112.4 (2004 = 100). This indicator is also trying to look
ahead six months - and has been forecasting six months ahead being better since
the end of the Great Recession. Their economists' opinions:
While the LEI points to an economic expansion that is gaining further

traction, its components still suggest the expansion path may be
uneven. December’s gain was led by housing permits, the interest
rate spread, initial claims for unemployment insurance and
consumer expectations. The large increases in December and
November show that, after a brief pause in the second quarter of
2010, the LEI is resuming the upward trend that began in March
2009.” .......“The four-month rise suggests the economy now has
some wind in its sails; however, it still faces some strong headwinds
in the medium-term. Overall economic activity is likely to continue to
gain momentum in 2011.
Initial unemployment claims in this week’s release decreased slightly. Last
week's very large not seasonally adjusted number appears to be just a blip as
unadjusted claims fell over 200,000 in the current week's data. The DOL seasonal
adjustment methodology appears to have made a good call last week.
[chart]
Most of the data released this week was inconsistent with Econintersect’s
December forecast of slow to flat growth - and it more resembles Econintersect's
January forecast. Overall most of the December data released this week was
strong. However, the transport indicators began their improvement in December
which historically foretells economic improvement.
Caveat: one month does not make a trend.
The table below itemizes the major events and analysis this week.
Weekly Economic Release Scorecard
ITEM HEADLINE ANALYSIS
Philly Fed Business Survey Down Slightly Big jump in new orders and backlog
Existing Home Sales Up MoM Down YoY, Inventories up YoY, home pric
New Residential Construction Up 16.7% MoM The data is an improvement on terrible
Oil Shocks and Economic
Correlates oil prices to USA recessions
Recessions
Empire State Manufacturing Survey Up slightly Still showing manufacturing expanding
Sea Container Counts Up 16% YoY Record exports but import's improvement
Inflation Rates Comparing Shadowstat's data to the CPI
China and the Trade Gap Is trade war looming?
J P Morgan Dragons, Haircuts and the Doomsday Mac
Consumer and small business sentiment r
Consumer Sentiment
associated with the bottoms of other recen
Opinion: Global Economic Chaos
Societies on the edge of socio-economic b
2011
Opinion: China Trying to guess China's direction and poli
Opinion: Belgium Will the seat of the EU leave the Union?
Opinion: 2011 Cautiously optimistic on the U.S. and glob
Opinion: Federal Reserve What would it have been like if the Federa
Bankruptcy This Week: None
Bank Failures This Week
[chart] ‘
As If The Fed Planned To Do It All Wrong Bob Chapman | Both food and energy
prices have risen at double-digit rates.
Bank of America posts heavy losses Agence France Presse | Bank of America, the
biggest US bank, reported Friday a net loss of $1.2 billion for the fourth
quarter.
The Corporate Elite Have a New Platform for Intervening in the Economy
Economic Policy Journal | President Obama will name Jeffrey Immelt, General
Electric CEO, to head a new advisory panel.
Government Bankruptcy Is a Great Idea LewRockwell.com | Just like the rest of us

during financial problems, the government has to get its house in order.
22 Facts About California That Make You Wonder Why Anyone Would Still Want
To Live In That Hellhole Of A State Why in the world would anyone still want
to live in the state of California at this point?
The American Dream

Saturday, January 22, 2011
Why in the world would anyone still want to live in the state of California at this
point? Residents of California have been forced to endure a brutally oppressive
level of taxation for many years, and yet the state of California has still managed
to find itself on the verge of bankruptcy. California Governor Jerry Brown
declared a “fiscal emergency” in his state on Thursday, but nobody is even
pretending that such a declaration is actually going to help matters. Brown wants
to cut even deeper into the state budget (even after tens of billions have already
been slashed out of it in recent years) and he wants to explore ways to raise even
more revenue.
Meanwhile, the standard of living in California is going right into the toilet.
Housing values are plummeting. Unemployment has risen above 20 percent in
many areas of the state. Crime and gang activity is on the rise even as police
budgets are being hacked to the bone. The health care system is an absolute
disaster. At this point California has the fewest emergency rooms per million
people out of all 50 states.
While all of this has been going on, the state legislature in Sacramento has been
very busy passing hundreds of new laws that are mostly about promoting one
radical agenda or another. The state government has become so radically anti-
business that it is a wonder that any businesses have remained in the state. It
seems like the moving vans never stop as an endless parade of businesses and
families leave California as quickly as they can.
One of the only things keeping the population of California relatively stable at this
point are the massive hordes of illegal immigrants that are constantly pouring
into California cities. There are certain areas of major California cities that you
simply do not ever want to go into anymore. In fact, there are rumors that the
police will not even venture into certain areas anymore.
Traffic in California is a bigger nightmare than it ever has been before and the
state cannot even keep up with repairing the roads and infrastructure that it
already has. There are a few areas of California where you can still see the
promise of greatness and the amazing natural beauty that once attracted tens of
millions of Americans to the state, but they are few and far between now. At this
point, most of the state is turning into one gigantic hellhole.
Perhaps the state could have some hope of turning things around if they had
some solid leadership, but at this point the vast majority of the politicians in the
state are pushing agendas that are so “radical” (not in a good way) and so “anti-
American” that it is absolutely frightening.
Of course on top of everything else there is the constant threat of wildfires,

mudslides and earthquakes. One day a really “big earthquake” is going to hit,
and once that happens many people believe that the geography of the state of
California could be permanently altered forever.
But what most people are focused on right now is the horrific financial condition
that the state of California currently is in. Governor Brown recently summarized
his analysis of California’s financial condition with the following statement:
“We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”
Yes, things really are that bad in California.
The following are 22 facts about California that make you wonder why anyone
would still want to live in that hellhole of a state….
#1 The California state government is facing a potential state budget deficit of 19

billion dollars this year, and California debt is rapidly approaching junk status.
One way or another the taxpayers of California are going to have to pay for this
mess somehow.
#2 California Governor Jerry Brown recently unveiled a “draconian” budget plan

for 2011 that includes 12 billion dollars more in spending cuts and that maintains
12 billion dollars in recent tax increases.
#3 The state of California currently has the third highest state income tax in the
nation: a 9.55% tax bracket at $47,055 and a 10.55% bracket at $1,000,000.
#4 California has the highest state sales tax rate in the nation by far at 8.25%.
Indiana has the next highest at 7%.
#5 Residents of California pay the highest gasoline taxes (over 67 cents per
gallon) in the United States.
#6 California had more foreclosure filings that any other U.S. state in 2010. The
546,669 total foreclosure filings during the year means that over 4 percent of all
the housing units in the state of California received a foreclosure filing at some
point during 2010.
#7 Home prices in some areas of California have completely fallen off a cliff. For
example, the average home in Merced, California has declined in value by 63
percent over the past four years.
#8 725 new laws (most of them either completely pointless or completely stupid)
went into effect in the state of California on January 1st.
#9 20 percent of the residents of Los Angeles County are now receiving public aid
of one kind or another.
#10 The number of people unemployed in the state of California is approximately

equal to the populations of Nevada, New Hampshire and Vermont combined.
#11 In some areas of California, the level of unemployment is absolutely

nightmarish. For example, 24.3 percent of the residents of El Centro, California
are now unemployed.
#12 Residents of California pay some of the highest electricity prices in the entire
nation.
#13 The state of California ranks dead last out of all 50 states in the number of
emergency rooms per million people.
#14 According to one survey, approximately 1 out of every 4 Californians under

the age of 65 has absolutely no health insurance.
#15 At one point last year it was reported that in the area around Sacramento,
California there was one closed business for every six that were still open.
#16 In the late 70s, California was number one in per-pupil spending on
education, but now the state has fallen to 48th place.
#17 In one school district in California, children as young as five years old are
being forced to watch propaganda films that tout the benefits of “alternative
lifestyles”, and parents are being told that no “opting out” will be permitted.
#18 The crime rate in the San Diego school system is escalating out of control.
The following is what San Diego School Police Chief Don Braun recently told the
press about the current situation….
“Violent crime in schools has risen 31 percent. Property crime has

risen 12 percent. Weapons violations (have gone up) almost 8
percent.”
#19 Oakland, California Police Chief Anthony Batts announced last year that due
to severe budget cuts there are a number of crimes that his department will
simply not be able to respond to any longer. The crimes that the Oakland police
will no longer be responding to include grand theft, burglary, car wrecks, identity
theft and vandalism.
#20 Things have gotten so bad in Stockton, California that the police union put up
a billboard with the following message: “Welcome to the 2nd most dangerous city
in California. Stop laying off cops.”
#21 During one recent 23 year period, the state of California built 23 prisons but
just one university.
#22 The farther you look into the future, the worse California’s financial problems
become. According to an article in the Wall Street Journal, California’s unfunded
pension liability is estimated to be somewhere between $120 billion and $500
billion at this point.
So could the state of California actually go bankrupt?
In Washington D.C., some lawmakers are now working very hard behind the
scenes to come up with a way to allow individual U.S. states to declare
bankruptcy.
If something like that is worked out in Washington, then certainly the state of
California would potentially be one of the first states to take advantage of it.
Unfortunately, the truth is that the state of California is a complete and total mess
at this point, and not even bankruptcy is going to fix much.
The state has become a rotting, festering hellhole that is getting worse by the
day. Yes, some really good people still live there, but there are some really, really
good reasons why so many people are leaving the state in droves.
But perhaps you disagree. Does anyone want to state the case in favor of the
state of California? Please feel free to express your opinion below….’
Quantitative Easing Is Causing Food Prices to Skyrocket As I’ve previously

noted, interest rates have risen both times after the Fed implemented
quantitative easing.
The 25 Countries Whose Governments Could Get Crushed By Food Price Inflation
Food inflation is now a reality for much of the world. It contributed to the
overthrow of the Tunisian government, has led to riots across the Middle
East and North Africa, driven up costs in China and India, and may only be
getting started.
Accounting Tweak Could Save Fed From Losses Concerns that the Federal
Reserve could suffer losses on its massive bond holdings may have driven
the central bank to adopt a little-noticed accounting change with huge
implications: it makes insolvency much less likely.
The end of The World: Dubai island development sinks back into sea after being
scuppered by financial crisis After the global financial crisis led to the
collapse of the emirate’s home-building market, a unique development
known as ‘The World’ is reportedly facing Armageddon.
Path Is Sought for States to Escape Debt Burdens Policy makers are working
behind the scenes to come up with a way to let states declare bankruptcy
and get out from under crushing debts, including the pensions they have
promised to retired public workers.
“The Vast Majority Of This Contraction Of Credit Availability To American

Industry Has Been By The Larger Banks” This once again confirms what I have
been saying for years: the giant banks are causing most of the credit contraction.
Economy News Nightmare: 20 Things That You Should Not Read If You Do Not
Want To Become Very Angry The Economic Collapse | Today America is very, very
frustrated.
#1 Today, millions of American families are digging deep into their savings and
investments in a desperate attempt to stay afloat. Over the past two years, U.S.
consumers have withdrawn $311 billion more from savings and investment accounts
than they have put into them.
#2 15 billion dollars: the total amount of compensation that Goldman Sachs paid out to
its employees for 2010.
#3 The number of American families that were booted out of their homes and into the
streets set a new all-time record in 2010.
#4 Dozens of packages that we buy in the supermarket have been reduced in size by
up to 20%. For example, there are now 2 less slices of cheese in a typical package of
Kraft American cheese, and there is now 9 percent less toilet paper in a typical package
of Scott toilet paper. So now, you may think that you are paying the same amount for
these items that you always have, but the truth is that you have been hit with a large
price increase.
#5 One Canadian company is making a ton of money shipping “millions and millions of
dollars” worth of manufacturing equipment from factories that are being shut down in the
United States over to new factories that are being set up in China.
#6 In America today, the wealthiest 20% own a whopping 93% of all the “financial
assets” in the United States.
#7 Only 35 percent of Americans now have enough “emergency savings” to be able to
cover three months of living expenses.
#8 47 percent of all Americans now believe that China is the number one economic
power in the world.
#9 If the U.S. banking system is healthy, then why does the number of “problem banks”
continue to keep increasing? This past week the number of U.S. banks on the unofficial
list of problem banks reached 937.
#10 According to former U.S. Labor Secretary Robert Reich, the wealthiest 0.1% of all
Americans make as much money as the poorest 120 million.
#11 U.S. housing prices have now fallen further during this economic downturn than
they did during the Great Depression of the 1930s.
#12 According to some very disturbing new research, 45 percent of U.S. college
students exhibit “no significant gains in learning” after two years in college.
#13 Americans now owe more than $884 billion on student loans, which is a new all-
time record.
#14 The United Nations says that the global price of food hit an all-time record high in
December, and the price of oil is surging towards $100 a barrel, but the U.S.
government continues to insist that we barely have any inflation at all.
#15 The more Americans that are on food stamps the more profits that JP Morgan
makes. Today, an all-time record of 43.2 million Americans are on food stamps, and JP
Morgan is making a lot of money processing millions of those benefit payments.
#16 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs.
Today, only 9 percent of the jobs in the United States are manufacturing jobs.
#17 Dozens of U.S. states are either implementing tax increases in 2011 or are
considering proposals to raise taxes.
#18 The United States has had a negative trade deficit every single year since 1976.
#19 The U.S. national debt has crossed the $14 trillion mark for the first time, and at
some point during 2011 it will cross the $15 trillion mark.
#20 What the U.S. economy really needs is for the government to get off all of our
backs, but instead they continue to tighten their grip on us. In fact, the Obama
administration is proposing a “universal Internet ID” that would watch, track, monitor and
potentially control everything that you do on the Internet’
Here Comes $4 Gas, $5 Cups of Coffee Newsweek | The final dam to stopping
$150-a-barrel oil and $4-a-gallon gas is being breached, as financial
regulation continues its daily erosion into worthlessness.
Euro Rises Against Dollar, Extending Two-Week Rally WSJ | The euro rose
against the dollar Monday as traders seized on hawkish comments from
European Central Bank president Jean-Claude Trichet.
Only 47% Of Working Age Americans Have Full Time Jobs VK, roving reporter for
The Automatic Earth, has been playing with the numbers from the January 7
employment report issued by the U.S. Bureau of Labor Statistics. It seems
valuable to look at unemployment from this, a different, angle. Some of it
may even surprise you.
China taking over US banks The Industrial and Commercial Bank of China (ICBC)
has agreed on a deal to take over a US retail bank, at a time when American
financial institutions are falling one after another.
Greenspan Questions the Need of the Fed Back in August, we wrote a piece
called The Maestro and Gold—about Alan Greenspan, the architect of the
modern fiat economy, the tech bubble, the housing bubble, and the most
recent Financial Crisis.
As If The Fed Planned To Do It All Wrong As of Wednesday we have seen the

euro rise 7 straight days, which caused the USDX to fall to 78.14, this in spite
of having 10-year rates in Spain, Portugal and Ireland rising 3 bps.
National / World
US-led airstrikes kill Afghan civilians Two separate airstrikes by US-led foreign
forces have killed at least five civilians and wounded several others in
various parts of Afghanistan.
Steep Oil Prices, Food Shortages Will Likely Spark Deadly Riots This Year From
now on, rising prices, powerful storms, severe droughts and floods, and
other unexpected events are likely to play havoc with the fabric of global
society.
Hitler Hates Infowars.com; Tuscon media hoax backfires You Tube | The powers-
that-be who control the mainstream media tried to pin blame for the
Loughner shooting on the “rightwing” and on 9/11 truthers, but the hoax
backfired.
Americans Are Just As Likely to Get Struck By Lightning Than Killed By

Terrorists Paul Joseph Watson | Which is why Homeland Security’s anti-
American tattle-tale program is about political persecution, not genuine
safety.
Moscow Airport Blasts: FSB False Flag, Anti-Putin Campaign or Real Separatist
Attack? Steve Watson & Paul J. Watson | Previous terrorist attacks in Russia
were the dirty work of the security services.
The Meaning Of V Paul Joseph Watson | Infowars campaign firmly rooted in spirit
of resistance movements that have stood up to tyranny throughout history.
Alex Jones: Google’s New Censorship Tool & Chinese Pianist Plays Anti-USA
Tune Infowars.com | The Alex Jones Show, Sunday Edition, January 23,
2011.
New V for Victory Posters Infowars.com | An example of the awesome posters now
rolling in.
Operation Mockingbird Asset Olbermann Calls It Quits Kurt Nimmo | The CIA
micro-managed media propaganda machine is headed for the rocks as
citizen journalists take control of news and information dissemination.
Paul Beats Palin James Ostrowski | Ron Paul is busy fighting the Fed, not
campaigning.
Seattle Activist Wins Case Against TSA Kurt Nimmo | Case represents the first
time anyone has successfully challenged the TSA’s assumed authority to
question and detain travelers.
Google Seeks to Weaken Search Engine Ranking of “Content Farming” Websites

Eric Blair | Alternative news sites beware, Google is changing their algorithm
to reduce your status to a spammer in an attempt to control the flow of
information on the Internet.
First Entries For V For Victory Campaign Rolling In Infowars.com | It’s all about
fighting back against the psychological warfare we are now being subjected
to by our new would-be slavemasters.
Ron Paul: The Coming 2nd American Revolution & Exposing The Fed
Infowars.com | Alex talks with physician and Texas Congressman Ron Paul,
author of End The Fed and The Revolution: A Manifesto.
Eisenhower’s Worst Fears Have Been Realized Washington’s Blog | All in all it
appears that Eisenhower’s worst fears have been realized and his
remarkable and unique warnings given for naught.
Wikileaks Is The “Cognitive Infiltration” Operation Demanded by Cass Sunstein

[ The following is a very important read. That said, I’m still against the
censorship since one always, in the final analysis, must discern truth from
falsehood, information from disinformation, reality from propaganda. In
truth, I found it somewhat shocking and more than surprising that of all
places ‘to escape to’, Assange chose Orwellian england, puppet to the u.s.
and guarantor of servility to u.s./zionist interests, such is there own
desperate circumstances. ] Webster G. Tarpley | Awareness is growing
around the world that the Wikileaks’ theater of the absurd is radically
inauthentic — a psyop…’ Tarpley.net
January 22, 2011 Awareness is growing around the world that the Wikileaks-
Julian Assange theater of the absurd is radically inauthentic – a psyop.
Wikileaks and its impaired boss represent a classic form of limited hangout
or self-exposure, a kind of lurid striptease in which the front organization
releases doctored and pre-selected materials provided by the intelligence
agency with the intent of harming, not the CIA, nor the UK, nor the Israelis,
but rather such classic CIA enemies’ list figures as Putin, Berlusconi, Karzai,
Qaddafi, Rodriguez de Kirchner, etc. In Tunisia, derogatory material about
ex-President Ben Ali leaked by Wikileaks has already brought a windfall for
Langley in the form of the rare ouster of an entrenched Arab government.
Obama White House NSC Russia Director Michael McFaul Deploying IMF
Shock Therapist Boris Nemtsov as Wheelhorse of Feeble “Stop Putin in
2012″ Bid.
At Foggy Bottom and Langley, a manic fit has been building since the flight of
Ben Ali. US imperialist planners now believe they can re-launch their
shopworn model of the color revolution, CIA people-power coup, or
postmodern putsch against a whole series of countries in the Arab world
and far beyond, including Italy. The color revolutions had been looking
tarnished lately, as a result of the failure of the Twitter Revolution in Iran
back in June 2009. Previously, the Cedars Revolution of 2005 had failed in
Lebanon. The Orange Revolution in Ukraine had been rolled back with the
ouster of NATO-IMF kleptocrats Yushchenko and Timoshenko. In Georgia,
the Roses Revolution was increasingly discredited by the repressive and
warmongering regime of fascist madman Saakashvili.
US Seeks to Mobilize a New Generation of Young Nihilists Across the Globe
But now, NSC, State, and CIA believe that the color revolution has a new lease on
life, thanks to their estimate that the United States, because of Wikileaks and
Assange, has captured the imagination of a new generation of young
nihilists across the globe who are described as the post-9/11 generation,
estranged from governments and opposition parties, and thus ready to
follow Langley’s peroxide Pied Piper.
Assange started his intensive deployment phase this year with video of a Class A
US war crime in Iraq, which was very graphic but which dealt with an
incident which was already widely known. The second document dump
focused on Iraq, but now the targeting had shifted to Prime Minister Maliki,
and the Iranian asset whom the US by some strange coincidence was trying
to oust as leader of Iraq in favor of the US puppet Allawi. With the third
document dump, this time involving State Department cables, we found out
much derogatory gossip about such classic CIA targets as Russian prime
minister Putin, Italian Prime Minister Berlusconi, the Russian-Italian
strategic alliance, President Fernandez de Kirchner of Argentina, and
President Karzai of Afghanistan, along with jabs at supposed US allies who
need to be kept off-balance and dependent, including the Saudi Arabian
royal family, French President Sarkozy, and others. Wikileaks thus directs
the vast majority of its fire against figures who are part of the CIA’s enemies
list.
No Equal Time for CIA Covert Operations
Assange also provides a splendid pretext for draconian censorship and

limitations on the freedom of the internet. The totalitarian liberal Senator
Feinstein wants to bring back Woodrow Wilson’s infamous Espionage Act of
1917 in honor of Assange. Assange must be seen not as an activist, not as a
journalist, and not as an entertainer, but rather as a spook. John Young of
Cryptome, according to some reports, has denounced Wikileaks, to which
he formerly belonged, as a CIA front. In a December 29 RT interview, Young
described the internet as “a very large-scale spying machine.”1 The internet
is indeed a vast battlefield, where the intelligence agencies of the US-UK,
China, Israel, Russia, and many others clash every hour of the day, with
commercial spies, hackers, anarchists, cultists, mercenary trolls, and
psychotics all getting into the act as well. Intelligence agencies deliberately
feed real and doctored material to various websites, sometimes using their
own disgruntled employees as cutouts, conduits, and go-betweens. This
means among other things that Bradley Manning cannot be taken at face
value, although it is also clear that he like anyone else should not be
tortured.
Assange is now famous, it might be argued. But the Wall Street controlled media
can make anyone famous, from Lady Gaga to Justin Bieber to Snooki, and
this is what they have done with Assange. It is wrong to capitulate to the
demagogic power of these media by making it appear that there might be
some legitimate value to Assange. Up to now, the CIA has been organizing
color revolutions using Twitter, Facebook, Youtube, and so forth as
vehicles. Now they think they have a cult figure whom they can sell to the
youth bulge in the Arab world and other developing countries, where most
of the population is under 30. This is an operation which must be exposed.
Most recently, Wikileaks has played a role in the CIA’s new “Jasmine Revolution”
in Tunisia by publishing some State Department cables about the sybaritic
luxury and lavish lifestyle of the Ben Ali clan, leading to the downfall of that
regime. The CIA is now gloating that with the help of Wikileaks it can now
topple all the Arab regimes at will, from Mubarak to Qaddafi to Bouteflika,
and replace them with new and more pliable puppets eager to clash with
Iran, Russia, and China
If Assange ever launches his much-touted doomsday machine against the Bank
of America or some other financial institutions, we will be justified in asking
that the Securities and Exchange Commission make public the extent of
short interest in those stocks by certain hedge funds, especially those
controlled by George Soros. And as far as Assange’s attacks on the Vatican
are concerned, they fit neatly into four centuries of British intelligence
warfare against the Holy See, going back to Guy Fawkes and Lord Robert
Cecil’s Gunpowder Plot of 1605 and beyond. Not much new or radical here.
Wikileaks: No Serious Derogatory Information about US, UK, Israel
It is illuminating that none of Assange’s document dumps have revealed any

notable scandals involving Great Britain or Israel. No US public figures have
had to resign because of anything Wikileaks has done. No major ongoing
covert operation or highly placed agent of influence has been blown. After
all these months, there are still no US indictments against Assange, even
though we know that a US grand jury will readily indict a ham sandwich if
the US Attorney demands it. If the CIA had wanted to silence Assange, they
could have subjected him to the classic kidnapping aka rendition, meaning
that he would have been beaten, drugged, and carted off to wake up in a
black site prison in Egypt, Poland, or Guantanamo Bay. Otherwise, the CIA
could have had recourse to the usual extralegal wetwork. We must also
assume that the new US Cybercommand with its vast resources would have
little trouble shutting down the Wikileaks mirror sites, no matter how
numerous they might be. The same goes for Anonymous and other flanking
organizations of Wikileaks. But these considerations are purely fantastic.
Assange emerges today as the pampered darling and golden boy of The
New York Times, Der Spiegel. The Guardian, El Pais — in short, of the entire
Anglo-American official media Wurlitzer. He reclines today in baronial
splendor in the country house of a well-connected retired British officer who
should be quizzed by the media about his ties to British intelligence. The
radical-chic world, from Bianca Jagger to Michael Moore, is at Assange’s
feet.
Cass Sunstein Present at the Creation of Wikileaks
Wikileaks was apparently founded in 2006. Originally, the group was programmed
to attack China, and its board was heavily larded with fishy Chinese
dissidents and “democracy” activists from the orbit of the Soros
foundations. Interestingly, the first big publicity breakthrough for Wikileaks
in the mainstream US media was provided by an infamous totalitarian liberal
today ensconced in the Obama White House – none other than Cass
Sunstein. In Sunstein’s op-ed published in the Washington Post of February
24, 2007 under the title “Brave new Wikiworld,” we read: “Wikileaks.org,
founded by dissidents in China and other nations, plans to post secret
government documents and to protect them from censorship with coded
software.” How interesting that Sunstein was present at the creation of the
new Wikileaks psywar operation!
This is the same Sunstein who today heads Obama’s White House Office of
Information and Regulatory Affairs. In his January 2008 Harvard Law School
Working Paper entitled “Conspiracy Theories,” Sunstein infamously
demanded that the United States government deploy groups of covert
operatives and pseudo-independent agents of influence for the “cognitively
infiltration of extremist groups” – meaning organizations, activists and
Internet websites who espouse beliefs which Sunstein chooses to classify
as “false conspiracy theories.”
Wikileaks = Cass Sunstein’s Program for Cognitive Infiltration In Action
It should be clear that Assange and Wikileaks are precisely the practical
realization of Sunstein’s program for “cognitive infiltration” shock troops to
counteract and overwhelm any real mass understanding of oligarchical
domination in the modern world, and any discussion of what kind of
economic policies are needed to secure a recovery from the present world
depression.
In line with Sunstein’s recipe, Assange is a self-declared enemy of 9/11 truth. As

Assange told Belfast Telegraph reporter Matthew Bell last July, “I’m
constantly annoyed that people are distracted by false conspiracies such as
9/11, when all around we provide evidence of real conspiracies, for war or
mass financial fraud.” In other words, Assange argues that the truth about
9/11 truth is not nearly as radical as the various scandals which Wikileaks
claims to expose. But the scandals Assange is offering target mostly the
adversaries of the CIA.
Assange must also be seen as a deeply troubled individual and a possible

psychopath. He has the ravaged emotional complexion that we might expect
from an alumnus of one of the many MK-Ultra operations. He reportedly
spent several years in the menticidal Anne Hamilton-Byrne cult (also known
as The Family and Santiniketan) near Melbourne, Australia. Here little
children were separated from their parents and made to ingest LSD,
Anatensol, Diazepam, Haloperidol, Largactil, Mogadon, Serepax, Stelazine,
Tegretol, Tofranil, and other potent psychopharmaca. Dozens of children
were told that Hamilton-Byrne was their real mother, and had their hair dyed
blond. Anne Hamilton-Byrne reportedly regarded blond hair as a sign of
racial superiority. Careful observers will have noted that Assange’s hair is
sometimes blond, sometimes more brownish, raising the question of
whether his grooming practices are a residue of his time with Hamilton-
Byrne, whom he says he does not remember. When other kids were getting
cookies and milk, was Assange being lobotomized by LSD and other potent
psychopharmaca dished up by Hamilton-Byrne? There is evidence pointing
in that direction.
With Assange, we thus have the tragic spectacle of the emotionally mutilated
product of a CIA (or MI-6) covert operation of 40 years ago, who has now
been given a prominent role in a key counter-insurgency ploy of the present
time. Will the youth of the world, already burned by their recent fatuous
obsession with Obama, be duped again by such an impaired individual?
The Precedent: Pentagon Papers Whitewashed CIA, Blamed Army, Demonized

Kennedy
Assange’s revelations mainly involve communications labeled Confidential or

Secret, and which in reality would be over-classified if marked Official Use
Only. In other words, Assange is in reality a purveyor of low level cable
traffic, not of earth-shattering secrets. This reminds us of an earlier CIA
limited hangout operation, the one known as the Pentagon Papers. This was
a carefully screened selection of historical documents, supplemented by
outright forgeries, relating to the Vietnam War and compiled by Morton
Halperin and Leslie Gelb, both of whom have gone on to glittering careers in
the imperialist foreign policy establishment – Gelb became president of the
Council on Foreign Relations, while Halperin serves today as chief political
officer of the Soros wolfpack of foundations. The papers were leaked by
former RAND Corporation official Daniel Ellsberg, who had been a very
bellicose hawk in Vietnam before a suspicious Damascus Road conversion
to pacifism, and then published in the US establishment press – similarly to
Assange today. There was nothing in the Pentagon papers which a casual
reader of LeMonde or Corriere della Sera did not already know. But, as Mort
Sahl later said, left liberals have generally had very few heroes, so they
battened on to Ellsberg and lionized him – led by Noam Chomsky, Howard
Zinn, and some others. (This is a syndrome which we see again today: at the
moment when Obama’s treacherous sellout on the Bush tax cuts was
providing a final disillusionment for many gullible left libs, Assange arrived
on the scene as their new Savior. Not by chance, Ellsberg has now
designated Assange as his own reincarnation, and thus surely the new
Messiah.)
The Pentagon papers had been carefully selected by the CIA itself to cover up
CIA war crimes in Vietnam, blaming these on the US Army wherever
possible, while also obscuring the CIA’s massive program of drug
production and narcotics smuggling. The Pentagon Papers systematically
hid the salient political fact of the entire Vietnam era, which is that President
John F. Kennedy before he was assassinated was preparing to end the de
facto US combat role in that country. Instead, Kennedy was systematically
demonized and smeared, emerging as the villain of the piece. Needless to
say, the Pentagon papers throw no light whatsoever on the CIA role in the
Kennedy assassination – in the same way that Assange’s various document
dumps tell us nothing of importance about 9/11, the Rabin assassination,
Iran-contra, the 1999 bombing of Serbia, the Kursk incident, the various CIA
color revolutions, or many of the other truly big covert operations of the past
decades.
The limited hangout is not new; it was described in a secret memorandum by

Venetian intelligence chief Paolo Sarpi to the Venetian Senate in 1620 as the
art of “saying something good about somebody while pretending to be
saying something bad.” That is the common denominator of the CIA’s
limited hangout operations from Ellsberg to Philip Agee to Assange, with so
many other “former” CIA operatives turned “whistleblowers” along the way.
‘
Former FBI Agent Coleen Rowley Calls For Congress To Begin “Church
Committee”-type Hearings Saman Mohammadi | The time to begin thinking
about justice is never too late.
Perpetual War is Expensive! We’ve been militarily involved in the Persian Gulf
region now for 20 years. Experts have predicted that the cost of this
continuous and expanding war will reach 6 trillion dollars.
China's new stealth fighter may use US technology (AP)

The Pathology of Facebook and Twitter The way in which people frantically
communicate online via Twitter, Facebook and instant messaging can be
seen as a form of modern madness, according to a leading American
sociologist.
Drudgereport: NYT: Former Spy With Agenda Operates Own Private CIA... [ Quite
serious a problem … Remember … these people really are quite stupid but self-interested if not
greedy; and, if the money’s right, they wrap themselves in the flag and find a reason … remember
ollie north who’s an absolute dope … and there are many, many more worse than him. Then
there’s their war mongering which of course is the precursor to their war profiteering, etc.. ]
it...
Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No surprise here, mobster
trump (how was trump missed in the recent big mafia bust since he too is a
corrupt bribe paying/receiving, drug money laundering among other crimes,
mobster), hollywood flakes like magic mushroom eater sorkin, LSD aficionado
jobs (I now realize what that premium priced disfunctional though fanciful
pizzazz of apple products that I would refuse to pay extra for stems from-jobs
says he owes it all to his LSD use-don’t forget, apple’s protected source code,
kernel, and consequent stability existed pre-jobs and I believe, particularly after
actually using an iphone, that the same is a way to extract money from an ever
increasingly dumbed down / dumb (and I think at the least, eccentric if not
Topic A: What should be in State of the Union? (Washington Post) [ Well, at the
very least, it should be noted that the states of the union are crumbling (see
bankruptcy headlines infra), ergo, the state of the union is crumbling and
precarious indeed. The problem with and for wobama is that he’s been there,
done that, and his words don’t match his actions, as is so regarding his not easily
forgotten campaign promises (from perpetual wars, to no pros the frauds on wall
street, to new ‘bubble building’ as in last precursor to crash supplanting sound
economics. Blame it on the teleprompter … sounds like a plan! All we really know
for certain is what definitely will not be in the state of the union; viz., a solution to
pervasively corrupt, defacto bankrupt america’s intractable decline. ]

it...
Flowchart...
Joan Rivers calls Michelle Obama 'Blackie O'... [ ‘Blackie O’ … Very funny! … I like that
… but don’t look for joan on ‘The View’ anytime soon, or invites from the whitehouse either … but
of course, and ‘Blackie O’ might retort that joan will be too busy anyway, reprising the role of ‘The
Joker’ in the next Batman film by the gifted director, Christopher Nolan, with AH new Catwoman
… meow! ]

[ This is a very big deal!
http://albertpeia.com/mafiafamilytreeflowchartFBIarrests.htm ]
“All In All It Appears That Eisenhower’s Worst Fears Have Been Realized And His
Remarkable And Unique Warnings Given For Naught” [ I personally believe,
and the factual, historical realities support that President General Eisenhower
is without question the most under-rated president in america’s short-lived
history. Is there anyone who foolishly would believe this man of honor, the
quintessential General / Commander in Chief would be sacrificing lives
(american among many others) and treasury for the sake of war profiteers,
greed, fraud, etc., as now? ] President Eisenhower’s warned us about the
growing threat from the powerful military-industrial complex – and it’s threat
to our prosperity – 50 years ago.
A new culture war Milbank: Are GOP spending cuts about the deficit or settling
old scores? (Washington Post) [ What does it matter at this point. Who cares
about motives at this too little, too late juncture. Come on! Wake up! Culture
wars? Who cares. That should be the least of the wars and worries.The nation
is defacto bankrupt. The states are also defacto bankrupt. They’re talking
about bankruptcy enabling legislation for the states. There are many cities
and municipalities in the states are defacto bankrupt (they can declare
bankruptcy as the law currently stands). NYT Reports States Looking For
Ways To File Bankruptcy, Muni Bondholders To Be GMed A few days ago we
reported that Newt Gingrich was pushing for legislation to allow states to file
for bankruptcy, “allowing Them To Renege On Pension And Benefit
Obligations.” Path Is Sought for States to Escape Debt Burdens Policy
makers are working behind the scenes to come up with a way to let states
declare bankruptcy and get out from under crushing debts. Drudgereport:
BANKRUPTCY FOR STATES STUDIED
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses... …
From tonight’s NYT: Beyond their short-term budget gaps, some states have
deep structural problems, like insolvent pension funds, that are diverting
money from essential public services like education and health care. Some
members of Congress fear that it is just a matter of time before a state seeks
a bailout, say bankruptcy lawyers who have been consulted by Congressional
aides…’ ]
Hezbollah gets support of Druze leader (Washington Post) [ Is this a direct
outcome and consequence of israeli belligerence, war crimes, and america’s
alliance with and hence, apparent endorsement of such by america which also
has bloodstained hands from numerous civilian deaths in the region. Yes! After
all, no one would reasonably deny Hezbollah’s a**-kicking of israel in their fairly
recent ‘encounter’. ] The armed Shiite movement received a major boost in its
efforts to form a new government in Lebanon when a potential kingmaker swung
his support behind the group and its allies.
A dim view of America's ability to compete in global economy (Washington Post)

[ Yeah … and I’d say, realistically speaking, that ‘slightly more than a third’
are wrong. It’s a bit late in the game to be lamenting irrevocable choices,
decisions made, mostly for money to the interested few and the frauds on
wall street who cheered. This and worse coming is what it is and more
importantly, the way it is. Fait accomplis, not for better or for worse, but
realistically unlike never before in america’s short history, for much worse. ]
Barely more than a third of all Americans rate the country's ability to
compete economically in positive terms, according to a new Washington
Post poll.
Bank of America posts $1.2B loss for fourth quarter of 2010 (Washington Post)
[ Today (after the wall street close) : Four U.S. bank failures bring year's total
to 7 Could it be … BofA ‘hearing footsteps’? … Naaah … they’re too big to
fail. ] The toll from the housing crisis could continue to drain billions of
dollars from nation's largest bank.
Four U.S. bank failures bring year's total to 7
Do You Believe in the Bernanke Put? [ Yes! I agree with the dire assessment
infra except that it will be more than tears as in that, ‘There Will Be Blood (film
name)’ … and not just in the streets. ] Hui ‘Earlier this week Gluskin Sheff Chief
Economist David Rosenberg wrote an article in the Globe and Mail entitled Why
this rally will end in tears.
Last week, Rosenberg called the current state of the financial market a Wile E.
Coyote market, or a market that seemingly ignores the major macro-economic
risks that could blow up the global economy.
We have an incredible bear market rally on our hands. History shows
that these spasms can go further than anyone thinks. But after the
U.S. market staged a monstrous 80-per-cent-plus rally from its
March, 2009, lows (the most pronounced bounce in such a short time
since 1955), it has become seriously overextended. Meanwhile,
practically every pundit is extrapolating the recent trend into the
future because that is the easy thing to do.
Most investors see only the recent returns; they do not see the
nearly invisible risks. But the risks are there. I recall all too well the
2003-07 bear market rally – yes, that is what it was. It was no long-
term bull run such as 1949-1966 or 1982-2000. It was a classic bear
market rally, and it ended in tears because what drove the market
upward was phony wealth generated by a non-productive asset
called housing alongside widespread financial engineering, which
triggered a wave of artificial paper profits. [picture]
He went on to detail his concerns about the future (which I paraphrase):
• Rising oil prices may derail the fragile US economic recovery

• US housing fundamentals are poor and deteriorating
• US unemployment is skyrocketing and remains a social and economic
problem
• US State and local government cutbacks will be a drag on the American
economy
• US debt ceiling and possible default
• Excessive debt in the global economy, with the European periphery a
special concern
• Food inflation in the emerging market economies, especially in China,
which could lead to the Chinese authorities taking steps to cool down its
overheated economy – leading to a global recession.
When will it be time for QE3?

While I would tend to agree with many of Rosenberg’s concerns about the macro-
economic risks to this upturn, most of the risks in his outline are economic in
nature and could be addressed by central bank action. In such a case, the
question for investors has to be: Were any of these negative outcomes were to
occur, would the Bernanke Fed respond with another round of quantitative
easing? In other words, is there a Bernanke Put in the market?
I believe that the future trajectory of the global economy and asset prices are
highly policy dependent. While I have my opinion, I am not confident enough in
them to be a basis for investment decisions. That’s why I depend on the
discipline of the Inflation-Deflation Timer Model, as the underlying philosophy is
to allow market prices to tell us the likely direction of policy and price trends,
which in turn, allows us to be more tactical and able to capitalize on the
intermediate swings in the markets’
Market Outlook: 10 Reasons to Expect a Correction Seeking Delta ‘The S&P 500
is down a little more than 1% in the last two days despite largely positive economic
data. As Cullen Roche so eloquently stated earlier this month:
But the market isn’t the economy. Main Street isn’t Wall Street. And the
market is a heartless beast that desires one thing and one thing only-
PROFITS!
What follows are the ten reasons (in no particular order) why I am cautious here, as I
see the 1% dip over the last two days to be the beginning of a larger correction.
1. Another Earnings Season Sell-Off?
During some point in the past four earnings seasons the S&P 500 has sold off
significantly. The trend has been to rally into earning, then to sell the news. Chart, via
WSJ.
click to enlarge
[chart]
2. Investor Sentiment
Both individual and professional sentiment remains high, as measured by AAII and
NAAIM, respectively. Both readings are currently higher than one standard deviation
above historical average bullish readings. Contrary indicator: historically returns are less
favorable when sentiment readings are high.
3. Too Far Too Fast?
The current 22 month rally from the March 2009 lows has been 90.1% (click on chart to
enlarge). The average 24 month rally to start bull markets is 56.1% with the next closest
rally being 65.7% starting in October 1974. Have we come too far too fast? Chart and
data via The Big Picture. [chart]
4. Low and Declining Put/Call Ratio
Since late 2003, when the 20 day rolling average put/call ratio has fallen below .55
(roughly 1 standard deviation from average) the average 30 day returns are -2.2% (-
0.7% median) versus a series average of 0.2% (0.8% median). The current 20 day
average put/call ratio is .52. The last time the ratio dropped below .55 (April ’10) the
market sold-off roughly 14% over the next month-and-a-half. Chart here.
5. Equities Running Out of Breadth?
The ratio of the number of stocks gaining versus the number declining is struggling to
regain 2010 levels. Data Diary suggests:
that the market has been gaining ground on the backs of fewer and fewer
stocks. We could interpret this as more and more stocks are bumping up
against valuation constraints – or put another way, valuation multiples can
only move so far ahead of earnings growth.
6. Short Selling of Securities in the S&P 500 at 1 Year Low

Per Data Explorers. Potentially a contrary indicator – have the shorts thrown in the
towel?
7. Tom DeMark Says U.S. Stocks Near Significant Decline.
Mr. DeMark, the creator of a set of Market-timing indicator, is calling for a decline of “at
least 11%.” The last time his indicators gave a sell signal was mid-2007. Needless to
say, the last quarter of '07 and '08 were not a good time to be in equities.
8. Consensus of 11 Strategists Surveyed by Bloomberg Says S&P 500 to Rise by
11% in 2011.
Contrary indicator?
9. QE Ending in June, Maybe earlier?
There is some pressure, as the economy recovers, that QE is no longer needed. I would
be surprised if QE2 ends in June, as scheduled, let alone early. But if it does, watch out.
10. Low Volume Rally
Volume has consistently trended down since the beginning of the March 2009 rally
(click to enlarge).
[chart] ‘
Freaky Friday - Alpha 2 Says 'Cliff Ahead' Davis ‘This is fun, right? We had a
nice opportunity to buy the effing dip yesterday as well as an interesting
opportunity to test the prudishness of the hundreds of web sites that syndicate
my articles as I saw every possible variation of "F’ing" popping up in titles that
were pinged back to me. Social mores aside, the move was so well telegraphed
that we were able to take a non-greedy exit on our QID position – leaving us,
thankfully, with just the DIA shorts in our $10,000 Portfolio. That means we are
going to be able to start our brand new $25,000-$100,000 Virtual Portfolio right on
schedule next week.We began "Turning $10,000 into $50,000 by January 21st" on
June 11th and we’re not done yet but we’re well over $30,000 – even looking at
our wrong-way (so far) short bet on the Dow. We could have killed that one
yesterday as well but, as today’s title says – we just have to give the old Alpha 2 a
chance to fully play out as we would just hate ourselves if we get that 500-point
drop in the Dow right after we bail on the shorts as that would be our $50K right
there!So up only 200% or so in 7 months is a failure but, to be fair, we did take a
couple of months off as I didn’t like the market enough in October and November
and we already had $26,000 so it didn’t seem worth risking 260% to make another
100%. In the final month, we decided to "go for it" but it was a messy way to make
another 20% as our overall premise – that a drop was "right around the corner" –
simply did not pan out. Frankly, looking back at the original 5 picks makes me
want to cry as we could have just left those on the table and gone on vacation!
They were:
• 10,000 YRCW at .21 (we doubled down at .11), now $3.76, up $35,500 (a
Bazillion percent, I think but there was a reverse split…)
• 20 C Dec $3/4 bull call spreads at .62, closed at $1, up $760 (up 61%)
• 20 short C Dec $4 puts at $1.08, close at $0, up $2,160 (up 100%)
• 20 TASR Jan $5/7.50 bull call spreads for .35, now $0, down $700 (down
100%)
• 10 short TASR Jan $5 puts at $1.30, now .35, up $950 (up 73%)
• 10 BP Jan $30/34 bull call spreads at $2.20, now $4, up $1,800 (up 81%)
• 20 FAS Jan $21/29 bull call spreads at $1, now $8, up $14,000 (up 700%)
• 10 short XLF Jan $15 puts at $2, now $0, up $2,000 (up 100%)
So there’s $56,470 in profits for a $66,470 total IF WE HAD JUST LEFT THE
DAMNED THING ALONE! [Actually (8:30 update) I realize that the reverse split on
YRCW means that it didn't go up that far on an adjusted basis - so maybe we
didn't do all that badly compared to leaving it alone.] Oh well, we didn’t leave it
alone because when we make a lot of money early (as we did with YRCW) we take
it off the table and then we hedge to protect our profits and some of our later
plays were not as clever as our first set but $30,000 is nothing to be ashamed of,
is it? Still, it’s a very good lesson that we can take with us into the new portfolio
and I urge Members to go through the Portfolio tab and review all the moves we
made over the past 6 months, as the $25K Portfolio won’t be much different at
first since it’s also a small portfolio where we have to manage our small bets very
carefully.Aside from today being our target date to close these trades out, I
mention the portfolio this morning to remind our Members that we are NOT
missing anything by waiting to be sure of the breakout. We waited for a nice dip
and what we felt was a solid move up before initiating that $10KP and we had a
rocky start as the market did take another 10% dip in late June but that was
GOOD news as we hadn’t over-committed and we doubled up on YRCW and
pressed some other bets and by October we had $26,000 and decided we’d rather
lock in those gains (the purpose of the portfolio was to have a nicer Christmas
than planned) than risk our gains right into holiday shopping season. Was our
$10KP responsible for America’s strong holiday shopping numbers???We intend
to do better in 2011 than we did in 2010, and step one in hitting our $100,000 goal
is BEING CAREFUL WITH OUR ENTRIES! As noted in last week’s Stock World
Weekly, we have been rolling along this month right in line with the TradeBot’s
Alpha 2 pattern that they ran last year, and Elliot sent me an advanced copy of
this week’s newsletter where he cleaned up the chart to match out the expiration
dates. I believe you will see why I still have a slight concern:[chart] Spooky, isn’t
it? Don’t forget, we identified this pattern on the 3rd and we targeted 11,850 on
the Dow and 1,285 on the S&P as the adjusted tops of our ranges and, so far,
Lloyd and da Boyz have been firing on all cylinders to paint a picture that is just
as pretty as the one they painted last January, right into expiration day, when the
VIX ran all the way down to 17.50 (from 30 in November) as complacency reached
extreme levels. The tip-off at the time, that we were about to drop, was a sudden
pop in the VIX on that Friday, back to 17.99, and by the next Tuesday we were
back to 18.68 and, by Tuesday the 21st, panic was back in fashion and the VIX
finished the day at 22.27 – on the way to 27 the next day. Now THAT’s a sell-off!Is
it "different" this time? How much are you willing to bet on that? We’re not
betting much, we’re cashing out the $10KP and we’ll see what happens next
week, confident that we KNOW that if the market goes down we can make money
and if the market goes up we can make money, but we can make so much more if
we wait for the right opportunity before placing our bets.As David Fry notes on
his DIA chart, POMO does make this time different and it does seem like we are
being hard-wired to buy those effing dips. That’s OK, we can accept that if that’s
how we have to play it, but please, Lloyd, show us that you are willing to break
the pattern first – then we’ll be willing to step a little closer to the edge of the cliff.
Forgive us, of course, if the idea of standing next to you at a cliff when we know
that you might make a Dollar for pushing us over gives us the creeps – it’s just
that, well, we know you!Speaking of people who are willing to sell their country
out for a Dollar – GE had excellent earnings and I got my daily "WHUCK?!?"
moment this morning when Obama named Jeff Immelt the head of his Economic
Advisor Panel, replacing Paul Volcker who quit when he realized this country is
totally being controlled by Souless Corporate Interests who are embodied by
none other than – Jeff Immelt. Yes, it’s the same Jeff Immelt who just signed a
deal to transfer America’s Avionics Technology to China’s State-owned
Commercial Aircraft Corp. of China who (and I mean who, not Hu, althogh it’s
easy to see how this is confusing) intends to go into direct competition with
Boeing (BA), who is not only a top US military supplier but our nation’s largest
manufacturing exporter BY A MILE – so much so that Durable Goods have to be
measured ex-Aircraft to smooth out their shipping cycle. Boeing sells $68Bn
worth of airplanes per year and has over $300Bn worth of orders for the 787
backlogged. The company directly employs 157,000 employees, mainly in the
USA and, as they build their planes here and tend to use American parts, they in
turn employ roughly 1M more people, accounting for close to 10% of our nation’s
total manufacturing employees. As I mentioned when the deal first broke – the
technology GE is turning over to China represents 100 years worth of advances
in American avionics and, just because GE legally got their hands on the patent
rights over the years, that does not give them the right to put a bow around them
and hand them to Hu (not "who," this time I literally mean Hu). There’s a word for
what GE is doing. It’s right at the tip of my tongue... Oh yes, TREASON!!! Oran’s
Dictionary of the Law (1983) defines treason as "…[a]…citizen’s actions to help a
foreign government overthrow, make war against, or seriously injure the [parent
nation]." Well, the Supreme Court just decided that our Corporations are citizens
and have the right to give politicians unlimited bribes contributions as they
exercise their right to free speech. Why then do we not hold them to a citizen’s
standards when they clearly take actions that are against the best interests of the
United States of America? I wonder if a Paulson-like immunity from prosecution
comes with Immelt’s job as head of the President’s Economic Council and I also
wonder if Hu benefits from having their main man firmly inserted at a desk in the
White House? Surely the timing of the appointment to coincide with China’s visit
is not a coincidence. As an M&A consultant, I have seen this happen a million
times – a company (or country, in this case) is having trouble paying its bills and
its balance sheet winds up in breach of loan covenants which prompts a visit
from the president of the bank (in this case the PBOC) who wrangles some
additional concessions and guarantees and, in extreme cases, the Bank asks that
one of their boys be given a seat on the board so they can "keep tabs" on your
progress.[picture]That scenario is bad enough when your bank is just a bank but
when you borrow money from a competitor and put yourself in that position, you
may as well pack it in because you essentially just spilled blood in the shark tank.
It’s only a matter of time before all your thrashing around, trying to stay afloat,
turns into a selachimorpha version of a piñata game.Is this the beginning of a
long and glorious partnership with our Chinese Masters or simply step 2 in the
dismantling of America as Immelt presides over the transfer of the rest of
America’s Intellectual Property to China so we can cut out the middle (class) man
as our Global Corporations expedite their operational shifts more and more
overseas? With only two years until the next election – there is the danger that
the American people will wake up and demand action so, as happened during the
final days of the Soviet empire – we can expect big moves like GE’s partnership
with China to come fast and furious over the next 24 months.What are we doing
about it? Well, as I told you yesterday, we’re BUYING GE, as well as JPM and, if
you can find any more loathsome Corporate bastards who have top-level access
to the White House and a pocketful of Congressmen and Judges – we’ll invest in
them too because the first step towards working your way up the ladder in a
Corporate Kleptocracy is to realize you are living in a Corporate Kleptocracy.
Once you accept that – the rest is obvious…So have a great weekend – the news
doesn’t matter – we’ll just keep an eye on the Bots and continue to go with the
flow, even if we have to hold our noses while we’re riding it out. Be careful out
there,- Phil’
Signs the Market Hypnosis Is Wearing Off
Punching Out: One Year in a Closing Auto Plant
Here Comes the Dumb Money!
Acrid Smell of Inflation Starting to Spread Through Global Equity Markets Nyaradi
‘The unmistakable smell of inflationary smoke wafted across world markets yesterday
as inflationary numbers sprang up in economic reports and global bond markets,
spooking investors across the globe.
Starting in China, the red hot economy grew 9.8% in the 4th Quarter, faster than
expected, and registered a 4.6% inflation rate, prompting fears of further tightening
measures to slow growth and rising prices in that country.
The Shanghai Composite (SSEC) (FXI) continued to respond, dropping -2.9%

yesterday and bringing its total decline since early November to approximately
-15%.
Food prices (DBA) have been skyrocketing around the world as inflationary pressures
grow, particularly in the emerging world where a higher percentage of discretionary
spending goes to food and energy than for us in the developed world.
Food riots and inflationary protests have broken out across North Africa.
Yesterday’s Philly Fed report was lackluster on the growth front, coming in at 19.3
versus expected of 20 and prior of 20.8 but it, too, signaled higher prices ahead.
Price increases for inputs as well as firms’ own manufactured goods

are more widespread this month. Fifty-four percent of the firms
reported higher prices for inputs, compared with 52 percent in the
previous month. The prices paid index, which increased 6 points in
January, has increased 42 points over the past four months.
(Philadelphia Federal Reserve)
The bond market declined sharply yesterday, particularly on the long end, (TLT) with the
30 year rate rising to 4.6%.
Yesterday’s TIPS (Treasury Inflation Protected Securities) auction was lackluster,
at best, with the lowest bid to cover ration (demand) in nearly two years.
However, not all was doom and gloom as the tech sector continued showing strength as
Google (GOOG) and Advanced Micro Devices (AMD) beat earnings expectations.
New unemployment claims declined, leading economic indicators advanced 1% and
existing home sales improved, although they’re still living in a deep, dark basement of
deflationary pricing.
Just take a look around your neighborhood for confirmation.
So as of yesterday we find ourselves entering a treacherous zone where the Federal
Reserve continues its bond buying program in an effort to lower interest rates but
instead we see interest rates rising both at home and around the world.
The acrid smell of inflation is starting to spread around the world and likely is behind
these rate increases as the “bond vigilantes” flex their muscles.
Combined with a still extremely fragile recovery, at least in the developed world,
one can smell the whiff of smoke in the overcrowded theatre of global equities
markets. We all know that inflation is bad news for equities and for economic
growth, and one can only hope that nobody yells “fire” in this overcrowded and
nervous room.’
Bank of America posts Q4 loss on mortgage problems (Reuters)
Stock Market Becomes Short Attention Span Theater Of Trading
Bank of America posts heavy losses Agence France Presse | Bank of America, the
biggest US bank, reported Friday a net loss of $1.2 billion for the fourth
quarter.
The Corporate Elite Have a New Platform for Intervening in the Economy
Economic Policy Journal | President Obama will name Jeffrey Immelt, General
Electric CEO, to head a new advisory panel.
Government Bankruptcy Is a Great Idea LewRockwell.com | Just like the rest of us

during financial problems, the government has to get its house in order.
Path Is Sought for States to Escape Debt Burdens Policy makers are working
behind the scenes to come up with a way to let states declare bankruptcy
and get out from under crushing debts,
“The Vast Majority Of This Contraction Of Credit Availability To American

Industry Has Been By The Larger Banks” This once again confirms what I
have been saying for years: the giant banks are causing most of the credit
contraction.
Tunisia Central Bank Admits It Is Missing 1.5 Tons Of Gold When we first
reported on the rumored “confiscation” of 1.5 tons (or is that tonnes?) of
gold by deposed Tunisian surging food inflation beneficiary Ben Ali we
joked that the next WGC update of Tunisian gold assets would be strangely
lower by 23%.
…From tonight’s NYT: Beyond their short-term budget gaps, some states
have deep structural problems, like insolvent pension funds, that are
diverting money from essential public services like education and health
care. Some members of Congress fear that it is just a matter of time before a
state seeks a bailout, say bankruptcy lawyers who have been consulted by
Congressional aides…’
NYT Reports States Looking For Ways To File Bankruptcy, Muni Bondholders To
Be GMed A few days ago we reported that Newt Gingrich was pushing for
legislation to allow states to file for bankruptcy, “allowing Them To Renege
On Pension And Benefit Obligations.”
National / World
3 Terms Top Google Trends as Resistance Campaign Launches Aaron Dykes | The
first small victory in the campaign to counteract the takeover of America by
DHS has been a success with three related Google trends search terms.
Oklahoma First Grader Suspended For ‘Offensive’ Hand Gesture Jason Douglass |
Oklahoma first grader suspended for ‘offensive’ hand gesture.
The Answer to 1984 is 1776 Contest Infowars.com | We have realized victories

against the TSA and on other fronts. We can do it again.
You Are The Resistance Against The DHS Occupation Of America Paul Joseph
Watson & Alex Jones | V for Victory campaign a mark of defiance against
Homeland Security’s takeover of society.
EXPOSED: Rahm Emanuel and the Chicago Political Syndicate Who is Rahm
Emanuel? How did he get into politics? The Emanuel family; just how
powerful are they? What influence do they have on lobbying, and power
politics? His workings with the Chicago Democratic Machine, how did he get
started, is there a shady past he is trying to hide?
Blogger Has Second Amendment Nullified for Insensitive Giffords Comment Kurt
Nimmo | Massachusetts authorities contact feds after Libertarian makes
comment about Congress.
Jerome Corsi: "Hawaii Governor Can't Find Obama's Long Form Birth
Certificate.". See the rest on the Alex Jones YouTube channel.
Blair Uses Iraq War Inquiry To Push Anti-Iran Propaganda Keelan Balderson | War
criminal Tony Blair has used the second session of the Iraq War Inquiry to
once again promulgate an anti-Iran message.
Secret Tony Blair and George Bush Iraq letters were kept out of official records
The Telegraph | Private letters between Tony Blair and President George W
Bush ahead of the war in Iraq were kept so secret that they did not officially
exist.
Bilderberg Owned Publication The Economist: Yes, Powerful “Globocrat” Elites

Are Running Things, It’s Not A Conspiracy We have referred many times to
the push for a centralized world government control system as the “open
conspiracy”. Groups such as Bilderberg, The Trilateral Commission and The
Council on Foreign Relations are kingpins of this agenda, shaping the
policies of the politicians and power brokers that they have effectively
bought.
Ron Paul on Morning Joe Roundtable Ron Paul joins a roundtable discussion on
MSNBC’s Morning Joe to discuss spending cuts and elimination of the
national debt.
Which Of The Currencies Of The World Is Going To Crash First? Last year was an
absolutely fascinating time for world currency markets. The yen, the dollar
and the euro all took their turns in the spotlight.
The downfall of science and the rise of intellectual tyranny The very reputation of
so-called “science” has been irreparably damaged by the invocation of the
term “science” by GMO lackeys, pesticide pushers, mercury advocates and
fluoride poisoners who all claim to have science on their side. It seems that
every toxin, contamination and chemical disaster that now infects our planet
has been evangelized in the name of “science.”
“All In All It Appears That Eisenhower’s Worst Fears Have Been Realized And His
Remarkable And Unique Warnings Given For Naught” [ I personally believe,
and the factual, historical realities support that President General
Eisenhower is without question the most under-rated president in america’s
short-lived history. Is there anyone who foolishly would believe this man of
honor, the quintessential General / Commander in Chief would be sacrificing
lives (american among many others) and treasury for the sake of war
profiteers, greed, fraud, etc., as now? ] President Eisenhower’s warned us
about the growing threat from the powerful military-industrial complex – and
it’s threat to our prosperity – 50 years ago.

it...
Flowchart...

[ This is a very big deal! ]
Largest-ever Mafia sweep makes nearly 120 arrests (Washington Post) [ Geeh!
Who woulda’ thunk it … still mafia in new york ( jersey )? Why, with all the
prosecutions by gov. elect cuomo as n.y. attorney general (aught, naught, nil,
nought, none, nada, null, zilch) one might have thought there was almost no
such thing of mafia in new york (/ new jersey – same no pros scenario)
anymore. Then again, former n.y. gov. mario cuomo’s primary sole law
practice client(s), cement and concrete … well, if only the name was vito
corleone and as with 1 client tom hagen of ‘godfather’ fame … well, you get
the picture. Drudgereport: FBI Rounds Up 127 Mobsters in Biggest Mafia
Bust in New York History…( This is great news and music to my ears! I really
hate the mob … I really do! Hats off to the FBI! ) ...
MOB Bust So BIG they're being held at ARMY Fort...] Federal and state
agents arrested nearly 130 reputed mafia members from seven East Coast
organized crime families on Thursday, the largest coordinated arrest in the
FBI's quarter-century crackdown on the mafia, the Justice Department said.
(Washington
Karzai delays parliament's inauguration as court investigates electoral fraud
Post) [ Pervasively corrupt, defacto bankrupt american-style democracies and
heroin production breakin’ out all over the american mideast war zone. ]
Fed sees mixed picture (Washington Post) [ ‘Mixed picture’ … there you go …
kind of covers all bases … not like their absolute ‘no recession’
prognostication (which great recession / depression continues in real terms
when you take out, look through the worthless paper (currency, assets,
securities, etc.), obfuscation and b*** s***. Unnerving? Well, the grim reality
does bite; but, I’m not so sure they even see it, or more likely, they choose
not to look. Nerve? Yes, I’d say they’ve got nerve … as in gall, audacity,
chutzpah, etc., for foisting off on america (and the world) this ultimately
disasterous wall street welfare program. ] As the Fed gears up for its first
meeting of 2011, policymakers are trying to make sense of an economic
picture that is encouraging yet unnerving.
First lady, Wal-Mart partner on healthy foods program (Washington Post) [ Of wal-
mart’s (and wall street’s) rise, and main street’s (and america’s) demise; the
story goes something like this. As China’s american based seminal sales
agent / distributor of Chinese goods (cheered by fraudulent wall street), wal-
mart is well positioned to assist in american dietary matters; as, for example,
the less to no food diet, as in increasingly impoverished, defacto bankrupt
america eating less because they no longer can afford more (on bushes,
clintons, wobamas, etc.). ] As the world's largest retailer, Wal-Mart is in a
unique position to influence the practices of suppliers.
Hu offers assurances to U.S. business leaders (Washington Post) [‘Chinese

leader presses Congress to do more to lift U.S. controls on exports to
China’. Yeah! Sounds like a plan! After all, they’ve gotten everything else,
including some of that top-level-security stuff (remember that missile
guidance tech, etc.), and not surreptitiously. All out in the spankin’ wide
open as america (n execs, political and corporate) ‘took the dive for that
short-end money (but lots) and a one-way ticket to palooka-ville’! ] In a
speech, Chinese leader presses Congress to do more to lift U.S. controls on
exports to China.
Equities Have Come Very Far Very Fast - Some Conservatism Is Warranted ‘With
nothing but bullish news and earnings releases prompting the biggest fall rally
since 2006, it is timely and conservative to be cautious in equities going forward,
according to many market participants with good long term track records.
Valuations are showing signs of divergence, where high P/E ratio stocks are
rising without a follow through from statistically cheap stocks in many
industries.This “reach for yield” has engendered a new ethos in the stock market
where taking greater risk is more important in equity selection than corporate net
worth, earnings, discounted cash flow analysis, and net asset values. Many times
in the past this tendency has led to large market declines, as valuations on the
major averages become extended. Shares of technology firms, and especially
small cap technology stocks, have risen on metrics we have not seen since the
heady days of 1999 and 2000 – things like eyeballs, mouse clicks, and 70 P/E
ratios are back in fashion.In the latest public interview with Ben Bernanke, the
Fed Chief played down the notion that rising food and energy prices outweighed
the economic gains that QE has created, saying with a smile that “the Russell
2000 is up 30% plus" since the announcement of additional stimulus at Jackson
Hole last summer. What bothers many fundamental investors about this
statement is the fact that the valuation and earnings for the Russell were not
mentioned by Mr. Bernanke (does he actually believe in efficient market theory?),
but simply that the nominal price of the index fund is up. We all remember when
price got ahead of fundamentals in the housing market. While the Fed Chief is
excited about the stock market, no mention of the benefits to private business or
the unemployed was given.
[chart]/
Whether or not this possibly short lived rise in nominal stock prices actually
helps small business owners over the long haul, I am obviously pulling for a full
economic recovery and believe in US capital markets over the longer term. If the
markets are now 30% more overvalued then they were last summer, many putting
capital to work here after the 90% rally could be badly hurt when Ron Paul begins
his scrutiny over the Fed’s actions. If QE is eventually wound down (or the
expectation of the wind down begins hitting stock prices), stocks could be badly
hurt going forward. Many feel the rise in the Russell 2000 was from an already
expensive base for many issues, and that risks of another flash crash are now
greatly heightened even if the overall benefit to the market means such action
was warranted.The last time oil prices rose from $40 to $91 we had major stock
market problems, and a continued rise in commodity prices could threaten the
global recovery and our stock market returns, at least when measured in Swiss
Francs or Norwegian Kroner. Greater leverage and money issuance could
exacerbate these issues and the short term gains may not be worth the longer
term damage overvalued markets could create when everyone runs for the exits
at the same time.
click to enlarge [chart]
In addition to the high valuations of many stock indicies, the latest news about
Steve Jobs is disconcerting when you factor in Apple’s 20% position in the
QQQQ (Nasdaq 100). Experienced Investors know that the QQQQ generally leads
technology shares, and technology shares generally lead the broader markets. A
fall in AAPL to $300 could easily start a 3-7% correction in the overall equity
markets based on the weighting of Apple in the QQQQ, and the past behavior of
Apple stock when Jobs has been in the headlines for medical reasons.The man is
truly a genius, crediting a large part of his success to experiences with LSD in the
1970s and his belief in making each customer more creatively effective. Of
course, I am pulling for Jobs (wishing him well, as he has a fantastic passion to
make the world a better place) and for the markets overall here, but I am cautious
on these developments from an investment perspective. Whether more stimulus
and forward earnings growth mean “any correction is a buying opportunity” is for
the reader to decide, but taking your cues from Mr. Market and being fearful when
others are greedy seems to make a lot of sense here.Just last year, the US equity
markets declined over 10% in less than three hours on May 6, 2010 and many
believe this decline was more than just a glitch. The same type of decline hit
equities on September 29, 2008 and more of these market jolting events could be
looming in our future. So, in light of the fact that we have come very far, very fast
in equities, I believe some degree of conservatism is likely well worth the
opportunity cost. Corrections never come when people expect them to, and
stocks don’t go straight up forever.’
[chart]’
Parallel Universe DIA vs. QQQQ: Dave's Daily ‘The big names just don't want to
break down. Remembering the DJIA is a price weighted index -- companies like
IBM keep things well-propped. In the meantime, tech struggles over the past few
days especially with the breakdown in "cloud" sectors. Commodity markets were
hit hard on worries China's inflation situation will warrant more tightening. This,
should it happen, is never friendly for commodity markets and precious metals as
we posted earlier with GLD (SPDR Gold ETF). Economic data was mixed with
better Jobless Claims and Housing data while the Philly Fed report was
disappointing with current report and the previous report adjusted lower.
Earnings continue to flow and most beat expectations handily once again
reminding us of the ineptitude of most analysts. It's a hard job, but somebody has
to do it at least making sure companies "beat" for the M&A goodwill. Through the
first half of the day stocks stayed lower but crept higher abetted by more POMO
and a recovery in some financial stocks. It may be very difficult for any
meaningful sell-off or correction as long as Ben is printing. Volume improved
significantly today which is typical on down days. Breadth, per the WSJ, was
decidedly negative. ‘
Retreat Unfolding? Inflation Trader ‘Markets recently have been reversing Mackay’s
classic observation that “Men…think in herds; it will be seen that they go mad in herds,
while they only recover their senses slowly, and one by one.” Instead, the slow march of
stocks higher has meant that people have been going mad one by one, and joining the
crowd. Does the maxim hold true in reverse? Will they recover their senses in herds?
This would be a bad thing, and I am relieved to observe that while the 1% decline in
equities yesterday was the largest single-day selloff since November 23rd, the volume
was not appreciably different from Tuesday’s volume. A bear might growl that this
shows how much lower even a little selling might push prices, but classic technical
analysis would expect to see a swelling of volume to confirm a trend change.My
suspicion, techies or no, is that this is more than a one-day respite in a relentless
march. The negative earnings surprises and/or downbeat announcements from
Goldman (GS), Wells Fargo (WFC), Northern Trust (NTRS), Citigroup (C), and
American Express (AXP) (cutting 550 jobs) helped drive the NASDAQ Bank Index down
2.6%. Barclays (BCS) just laid off a number of people, many of them very senior, with
essentially no warning. Anecdotally, I can report friends at other dealers who are
starting to size up their options/escape hatch as well. This is all very strange if you read
the economic headlines, or even the earnings reports which, while downbeat, weren’t
exactly the big losses of 2008-09. Is there some signal here about the economy, or is
the financial reform bill just damaging prospects for financial institutions? Or am I
reading too much into narrow anecdotal evidence? I will just say the state of the banking
sector just feels less bumptious than it did just a couple of months ago.Homebuilders
were also down, some 3.5% as measured by the S&P 500 Homebuilding Index. Surely
this cannot be simply a reaction to the weak New Home Sales number (529k vs 550k
expected). After all, the inventory of new homes (which isn’t in the Housing Starts
report, but is relevant here) is at the lowest level since 1968 (see Chart, click to
enlarge), and adjusted for population it is probably at the lowest level ever.[chart]
Inventory of New Homes. Yes, they compete with the high inventories of EXISTING
homes, but this picture is reasonably upbeat for the home building industry in the long-
term.Both banking and homebuilding, of course, were sectors that cratered and were
bailed out in the housing crisis. Could they be canaries in the coal mine now? I doubt it
on the homebuilder side, but I have long held that the mega-bank is going to be an
expensive use of capital now that the social costs of being big have resulted in
legislation that will have the effect of lower volumes, lower margins, and lower leverage.
All three legs of the ROE formula, in other words, will be under pressure; the future
should belong to the boutiques and partnerships…just as the past once belonged to
Merrill, Lynch, Pierce, Fenner, and Smith instead of Merrill/BOA.The tiny tremor in
stocks yesterday – which, granted, feels like a massive earthquake since it has been so
long since the last tiny tremor – is only a warning. But it is a warning echoed in the
breakdown of the dollar below its trading range for the last two months (see Chart, click
to enlarge).[chart] Dollar is looking soggy again.None of these little hints and wiggles
would matter much in the normal course of events. They’re not big news. The problem
is that there are a lot of people waiting for a Sign to Get Out. Several of these things
could be construed to be enough of a warning for a nervous investor to flee. The
question is whether these investors regain their senses one by one, or in herds.It is far
too early to make this suggestion, but I think a reasonably gentle 2.5% further selloff to
1250 on the S&P would be welcomed by many. A more-rapid decline, say if yesterday’s
1% turns into today’s 1.5% and Friday’s 2%, would cause more concern and widen the
range of possible outcomes thereafter. In this circumstance I think it isn’t whether you
wake up the giant, or when you wake up the giant, but how you wake him up, and
jumping on his chest is unlikely to produce the results you would like.I am not sure that
economic data will have anything to do with the unfolding retreat, but if Initial Claims
(Consensus: 420k from 445k) fails to drop back onto the improving trend or if Existing
Home Sales (Consensus: 4.87mm versus 4.68mm last) goes down instead of up, those
will be additional irritants for the investing public. Today also brings the Philly Fed Index
(Consensus: 20.8, unchanged), which is expected to stay near the 2010 highs. There is
plenty of scope for disappointment, in my view.By the way, I am not terribly sanguine
about bonds, either. Yields are very low, and although weak economic data is typically
good for bonds I think that is less clear when the government plainly needs growth in
order to be able to redeem those bonds some day (at least, in the absence of debt
monetization). Given that we are still struggling with the deficit from the 2008-09 crisis,
is it good for bonds if we enter another recession or even a period of choppy near-zero
growth? I think the answer there is unclear. Commodity indices for me still look like the
best medium-term bet although they have certainly come far themselves in the last few
months.However, the Treasury is going to issue $13bln of a new 10y TIPS bond today,
with a real yield that will be near 1%. That is pretty uninteresting unless your alternative
is the 10y nominal note at 3.33%. I am not fond of the duration, even in real bonds, but I
suspect the auction will go fine. The TIPS market continues to be in a zero-net-supply
situation with the Fed essentially providing all the new cash that the Treasury raises
through the TIPS auctions. It is hard to be bearish on auction results in that situation.’
Is the Up Trend Broken? Maierhofer, On Thursday January 20, 2011, ‘We published
this article a few days ago and decided to re-run it because it answers today's most-
asked question: Is the up trend broken? Since the article first ran, we offered this
conclusion in the January 14th ETF Profit Strategy Newsletter: 'Based on the
confluence of overhead resistance, optimistic sentiment extremes, short-term bearish
seasonality and waning breadth, the end of this rally seems near. According to
resistance levels, the odds for a reversal at S&P 1,300 +/- 10 points are high.' Whether
the final top is in place remains to be seen, but here is what might be expected over the
coming weeks. Original article starts here:What the market's rally lacks in charisma, it
has made up in persistence. The stair-step, creeping type of an up grind is lulling
investors to sleep as we speak. Steady and seemingly risk-free gains have rekindled
optimism and created a state of euphoria not seen in years ... since late 2007 to be
exact.The irony of this article is that few investors will feel compelled to read anything
that resembles a warning or contains a bearish message. The few that read this piece
will probably scoff at it. That's how bear market rallies work and that's why they are
effective.The soothing rhythm of the VIX has lulled investors into a state of
complacency. If you had to describe investor's alertness in sleep lingo, a state of REM
sleep would probably be the closest comparison.History tells us that the (bear) market
only strikes when least expected.Based on analyst polls by Bloomberg, Barron's, USA
Today and a variety of sentiment measures, a stock market (NYSEArca: VTI - News)
decline is as remote today as it was in 2000 or 2007.
Hedging Activity Drops
Investors and traders are content to hold on to massive long positions without hedge.
One of the easiest ways to hedge your stock portfolio is via put options. Last week the
CBOE Equity Put/Call Ratio dropped to 0.4, the lowest reading since April 15, 2010.The
lack of hedging is dangerous for prices because the market is without a safety net. The
only option for spooked investors without hedge is to sell. Selling causes prices to
drop.On April 16, 2010, the ETF Profit Strategy Newsletter warned of the consequences
of a low put/call ratio: 'Selling results in more selling. This negative feedback loop
usually results in rapidly falling prices. The pieces are in place for a major decline. We
are simply waiting for the proverbial first domino to fall over and set off a chain
reaction.'The first domino dropped just a few days later, setting off the May 6 'Flash
Crash' and ultimately resulted in a swift 15% correction for the Dow (DJI: ^DJI), 17%
correction for the S&P (SNP: ^GSPC), 19% for the Nasdaq (Nasdaq: ÎXIC), and 21%
for the Russell 2000 (NYSEArca: IWM - News).A different measure of complacency is
the premium traders willingness to pay for call options (bullish bets). Based on a three-
month average, the price for put options (bearish bets) is near a 10-year low. The only
other time that rivals current readings was in 2007.
This Time is Different
The spirit of 'this time is different' is one of the most fascinating phenomenons known to
Wall Street. Investors' sentiment follows the ebb and flow of stock prices. When prices
are up, the future is expected to be bright. When prices are down, the future is
supposedly bleak (just think of the 2007 peak and 2009 bottom).This approach of linear
extrapolations feeds the herding mentality, which contrarians use as effective indicators.
This approach is not foolproof but, nevertheless, is one of the most accurate, if not the
most accurate timing tool known to underground Wall Street aficionados.The chart
below (taken from the January 2011 ETF Profit Strategy Newsletter) illustrates the four
most prominent occurrences of extreme optimism, or the 'this time is different' effect.
The green line connects the price of the S&P with the timeline and various sentiment
gauges.[chart]Investors thought 'this time is different' at the 2007 peak, in May 2008, in
January 2010, and again in April 2010. The only thing different at all four times was the
velocity of the descent, but each period of euphoria was greeted by despair.
History Rhymes
History doesn't repeat itself but it often rhymes. In 2007, Merrill Lynch's Global
Economics Report foresaw a bright future: 'The Merrill Lynch global economics team
believes that the economy will continue to grow in 2007 - with no sign of a significant
cyclical slowdown.'According to J.P. Morgan, Barclays Capital and Goldman Sachs
(Merrill Lynch failed to foresee its own demise in 2007 and is no more), the S&P will
gain between 15 - 20% in 2011 and the 'economy will continue to grow in 2011.'Perhaps
this time will be different, but based on history, now is the time to at least be cautious
and protect your investments. An ounce of protection is worth more than a pound of
cure. Based on long-term valuation metrics the stock market is priced to deliver pain,
not gain (see November 2011 ETF Profit Strategy Newsletter for a detailed
analysis).Based on sentiment, the market is overheated and due for a correction at the
very least, and how often have we seen a correction turn into something more? Timing
a top is tricky, but based on support and resistance levels and seasonal patterns it is
possible to narrow down when the market is ready to roll over. End of original article.We
don't make up structurally important support/resistance levels, the market does, so it
behooves us to listen. The ETF Profit Strategy Newsletter monitors the market's vital
signs and highlights important support/resistance levels. If the next important support
fails, we might be looking at an April-like decline.’
Relevance of EU’s new ESRB watchdog questioned Reuters | Europe’s proposed

solution to avoid a repeat of the financial crisis holds its first meeting on
Thursday with some analysts questioning its relevance.
Europe faces a new crisis The Voice of Russia | UN depressing forecast was made
in report on the World Economic Situation and Prospects-2011.
Bank giant Goldman rewards staff with €11.4bn Independent.ie | Wall Street
banking giant Goldman Sachs revealed today that staff earned a total of
$15.4bn (€11.4bn) in pay and bonuses last year.
Debt Continues To Accumulate As The Economic Climate Worsens When you
stop and think about it, the Fed’s main instrument of monetary policy, the
manipulation of interest rates has been lost to it. That is two years with the
same rate. What has become very obvious is that an official rise in rates
would create all kinds of havoc.
The Great Depression II One basis for deciding whether we are in a “recession”
or a “depression” is distinguishing how recessions become depressions.
With the hindsight of history, we already know.
China’s Inflation Problem Looms Large The global economy has become so
unbalanced that even government ministers who would normally have
trouble explaining supply or demand clearly recognize that something has to
give.
National / World
Obama May Call For Gun Control During State Of The Union Steve Watson |
Democratic Party donors, Congressmen and gun control groups are
lobbying the president to speak on gun control laws during the upcoming
state of the union address.
DHS Launches Takeover of Sports Stadiums, Malls and Hotels Infowars.com | DHS
continues to hype program bent on turning citizens against each other.
Health Authorities Want Depression-Causing Drugs Added To Water Supply Paul

Joseph Watson | Mass medication of population part of drive to make people
obediently accept “dictatorship without tears,” Aldous Huxley warned in
1962 Berkeley speech
Rep. Cohen: Ventura’s Show Promotes Terrorism Kurt Nimmo | According to
Cohen and Cooper, investigative journalism and unrestricted exercise of the
First Amendment leads inexorably to terrorism and murder.
Russell Means: Welcome To The Reservation Infowars.com | American Indian

Russell Means gives an eye-opening 90 minute interview in which he
explains how Native Americans and Americans in general are all imprisoned
within one huge reservation.
U.S. Supreme Court Issues Landmark Decision: Constitution is Void

PRNewswire-USNewswire | Landmark decision that serves to allow judges to void
the Constitution in their courtrooms. ’ The U.S. Supreme Court issued a landmark
decision that serves to allow judges to void the Constitution in their courtrooms.
The decision was issued on January 18, 2011, and the Court did not even explain
the decision (Docket No. 10-632, 10-633, and 10-690). One word decisions:
DENIED.Presented with this information and massive proof that was not
contested in any manner by the accused judges, at least six of the justices voted
to deny the petitions:“There is no legal or factual basis whatsoever for the
decisions of the lower courts in this matter. These rulings were issued for corrupt
reasons. Many of the judges in the Northern District of Georgia and the Eleventh
Circuit are corrupt and violate laws and rules, as they have done in this case. The
Supreme Court must recognize this Petition as one of the most serious matters
ever presented to this Court.” ‘The key questions answered negatively by the U.S.
Supreme Court was: “Whether federal courts must be stopped from operating
corruptly and ignoring all laws, rules, and facts.” Windsor says: "I have
discovered that the federal judges in Atlanta, Georgia, Washington, DC, and the
justices of the United States Supreme Court function like common criminals
intentionally making bogus rulings against honest people while covering up the
crimes of their fellow judges. I have been contacted by people from all over the
country and around the world with their stories of judicial corruption with judges
all over the U.S."My charges have been totally ignored by the United States
Attorney's Office, the FBI, and Congress. I do not believe there is a shred of
decency, honesty, or Constitutional rights in our federal courts. In my opinion,
we now live in a police state. Judges are free to do absolutely anything they
want. Our laws are meaningless. Your life savings can be stolen by a federal
judge, and they have no risk in violating every law in the books."In my opinion,
this is the most serious issue that our country has ever faced. Our rights have
been stolen. And the mainstream media refuses to cover this story because they
are afraid of the judges. Heaven help us."I believe our only hope in America is if
the masses become aware of what is taking place. I am writing an expose, and
my book will be available at Borders, Barnes & Noble, and on amazon.com soon.
The publisher will decide if the title is Lawless America or Screwed, Glued, and
Tattooed." For more information, see www.LawlessAmerica.com.’
China Boasts: ‘We Are The World Number 1′ The Chinese communists are taking
the occasion of their first visit to the Obama White House – not to show
humility, as Mr. Obama did to them – but to openly show their clear intention
to dominate the world from the Middle Kingdom.
Chinese leader disingenuous about Tibetan issues, improving human rights As

President Obama grovels before Chinese President Hu Jintao this week
during the (to quote Sen. Harry Reid) dictator’s U.S. visit, the Communist
Chinese government continues to crackdown on dissidents, Tibetan
activists and anyone who gets in the way of Chinese dominance in the
world.
WIKILEAKS: China Could Ask U.S. To Get Out Of South Korea How could
Chinese-American military tensions ratchet higher? What if China told
America to get out of Korea.
S. Korea, US mull boosting missile range: reports Seoul and Washington have
started talks on extending the range of South Korea’s missiles to help deter
North Korea, news reports said Wednesday.
Swiss re-arrest ex-banker for giving data to WikiLeaks Swiss police on

Wednesday arrested former banker Rudolf Elmer on fresh charges of
breaching Swiss bank secrecy law for giving data to WikiLeaks, hours after
he was found guilty of another secrecy offense.
Major Agro-Chemical Company Says Removal Of Toxic Fluoride From Foods

Actually Threatens Americans’ Health A major agricultural chemical
company says it is not in the best interests of Americans for the EPA to ban
the use of a toxic fluoride compound in the processing of food supplies
The Fourth American Revolution The mass murder in Tucson is another brick in
the wall of this Fourth Turning Crisis. The importance of this tragic event is
not what happened in that Safeway parking lot, but the reaction in the
aftermath of the shooting. Turnings are not about specific events, but how
generations react to the events based on their stages of life.
Are You Ready For The Universal Internet ID That Barack Obama Wants To
Impose On All Of Us? The Obama administration is developing a “universal
Internet ID” program that would watch, track, monitor and potentially control
your activity on the Internet. These”trusted identities” are being touted as a
way to increase safety and security on the Internet and as a way to eliminate
the need for dozens of different usernames and passwords.
Does Joe Lieberman’s Resignation Signal Imminent Collapse? Joe Lieberman is

announcing his retirement today which would seem like a victory for the
liberty movement. Throughout his career the Senator from Connecticut has
been the consummate insider. [ No matter how you slice it, dice it, splice it,
this news (of zionist zelig lieberman’s retirement) is all good! ]
Ireland responsible for its problems – Barroso RTE.com | A visibly angry

European Commission President has rejected suggestions that terms of
Ireland’s EU bailout would make vassals of Irish taxpayers.
Drudgereport: FBIRounds Up 127 Mobsters in Biggest Mafia Bust in New York

History…( This is great news and music to my ears! I really hate the mob … I
really do! Hats off to the FBI! ) ...
MOB Bust So BIG they're being held at ARMY Fort...
Tucson restaurant to offer African lion tacos…..( Which pretty much helps explain
the mass shooting there! )...
House GOP Lists $2.5 Trillion in Spending Cuts...
China: USA #1 no more...
GE CEO: China one day will be world's biggest economy...
A day after cutting $19B deal with China, Boeing slashes 1,100 US jobs...
US Stocks slide on fears of Chinese rate hike...
Obama: 'We Welcome China's Rise'...
Zimbabwe mulls treason charges over WIKILEAKS … (Now what nation would
want to be on the same side of an issue as mugabe’s zimbabwe?)...
Currency system 'product of the past'...
HU QUESTIONS FUTURE OF DOLLAR
RISING DRAGON: China on equal footing with USA as Hu visits Washington...
GE CEO: China one day will be world's biggest economy… daaaaah! ...
Careful to avoid criticism...
HOUSE VOTES TO REPEAL HEALTHCARE LAW...
Dem Compares Republicans to Nazis during debate...
26 states join suit against law...
SHOCK CLAIM: World needs $100 TRILLION more credit, says World Economic
Forum...
Japan hits 'critical point' on state debt...
APPLE faces pollution storm in China... ‘A group of 36 Chinese environmental
groups has accused Apple of failing to address concerns over pollution and
worker health issues in factories supplying components for its gadgets…’
Home building stuck near 50 year lows...
CASHOUT: Daley Files to Sell $8.3 Million JPMORGAN Shares After Joining
Obama Team...
Taiwanese mock meeting w/ video cartoon...
Missiles off target in major Taiwan drill...
China 'got stealth tech from Russia'...
GE to sign slew of China deals...
'Experience China' takes over NYC's Times Square...
PEW: 65% see China as an 'adversary' or 'serious problem'...
STUXNET WORM USED AGAINST IRAN WAS TESTED IN ISRAEL...
Three U.S. Soldiers Killed in Iraq...
GALLUP: U.S. Satisfaction Remains Near 12-Month Low...
CBS POLL: 77% say cut spending; only 9% say raise taxes...
States Warned of $2.5 Trillion Pensions Shortfall...
Schwarzenegger: I Was 'Addicted' To Being Governor...
Comprehensive List of Tax Hikes in Obamacare...
Republican senator sees bipartisan agreement on debt ceiling … (no surprise
here; after all, they have to get paid…for what?…more and more people are
asking the question - all three branches including the toy soldiers for perpetual
war and illegal drugs / arms ops) ...
Obama Gives Communist Leader Lavish State Dinner...
China lending hits new heights; Funding to poor states (that includes defacto
bankrupt america) tops World Bank...
RISE OF RED DRAGON: CHINA SHAPES WORLD
Jobs Takes Medical Leave...
House panel wants Homeland Security documents...
GALLUP: U.S. Satisfaction Remains Near 12-Month Low...
Ahmadinejad, Medvedev agree to boost ties...
Moscow reaffirms Soviet recognition of Palestine...
Camden, NJ braces for deep police, fire cuts...
Israeli human rights groups sound alarm (Washington Post) [ As indeed they
should! As a war crimes nation along with pervasively corrupt, defacto bankrupt
america, israel has much to lose by exposure of their pervasive crimes though
the entire world is aware of same including illegal nukes! … Ie., Accountability is
unclear in israeli probe of flotilla raid (Washington Post) Oh, come on! An israeli
probe of an israeli massacre of civilians. Time for israel to pay; for illegal nukes,
for violations of international law, for continued violations of u.n. resolutions, for
provocations as pretexts to sabotage peace talks, and on and on ad nauseum.
Why does america among other nations feel compelled to sacrifice themselves
for the sake of a global criminal nation with an insatiable greed and blood-thirst
as israel? ] An initiative in the Israeli parliament this month to investigate the
funding of local human rights organizations has intensified debate here about the
role of the groups, which critics have accused of harming Israel.
Business leaders meet with Hu, Obama to address trade issue (Washington Post)
[ Oooooh! … Sounds like a plan! … For Chinese regression … I don’t think
so … Trade With China?: 25 Facts That Prove That China Is Kicking Our
Rear Ends Do you believe that trade with China is a good thing? Well, you
might not be so sure after you read the 25 facts listed below. The truth is
that China is kicking our rear ends all over the planet … Drudgereport: GE
CEO: China one day will be world's biggest economy… daaaaah! ...
Careful to avoid criticism... ] The show of corporate might reflects the
intense focus on the economic relationship between both nations.
Goldman Sachs's profit drops by 52% in Q4 (Washington Post) [ Before everyone
starts shedding tears, let’s realize that those bonuses and compensation
packages come off the top… Bank giant Goldman rewards staff with €11.4bn
Independent.ie | Wall Street banking giant Goldman Sachs revealed today
that staff earned a total of $15.4bn (€11.4bn) in pay and bonuses last year.
] The decline in Goldman's bottom line is all the more striking because it
contrasts with huge gains at other financial firms. As the financial sector
continues to climb out of a historic hole, the numbers reflect a divide
between Wall Street and Main Street. [Previous: … Jobless rate jumps as
hiring slows (Washington Post) [ The reality is not a mystery! The nation’s
been thrown under the bus for the greater good (wealth) of the very few
(frauds on wall street, etc.); wall street giving out record bonuses from their
accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION:
Come on! This is gettin’ even more downright ridiculous (if that’s even
thrown in along with prospects of a ‘no-recession bernanke’ market-frothing
bull session on 60 minutes and, voila, suckers’ rally into the close to keep
the suckers suckered! What’s good for the frauds on wall street is bad for
just about everyone else which includes the vast majority of people and
businesses, domestically and globally, as current dollar manipulation /
debasement ultimately results in higher costs and loss of purchasing power
(ie., oil, etc.). Clearly, this is one of those fraudulent wealth transfers to the
frauds on wall street et als which will ultimately be paid for by those who
least are in a position to afford it, courtesy of the ever more worthless
Weimar dollar, etc., inflating earnings, eps, lowering p/e multiples, etc., see
infra. This is an especially great time to sell / take profits while you can
since there's much worse to come! Previous: Rosy numbers on consumer
sentiment, unemployment (far better than private forecasts) from the
government prior to the holiday so-called ‘shop till you drop’? How can
anyone believe anything they say? Najerian interviewed by Motek chimes in
with the reason for good retail cheer; viz., people have stopped paying their
mortgages and are using the funds to purchase retail goods; while
Davidowitz adds that with record numbers of americans on food stamps,
real unemployment at 17+, and wall street giving out record bonuses from
their accomplished fraud (with no-recession b.s. bernanke help) of $144
BILLION … the high end stores / jewelers will do well … daaaaah! And, with
insiders and wall street frauds selling into the bubble as preceded last
crash, this is an especially great opportunity to sell / take profits! ]
Obama presses (as in pressing Mr. Hu’s pants) Chinese leader on rights At
summit, Hu admits his nation needs to make more progress (Washington Post)
[ Riiiiight! … Mr. Hu says with utmost sarcasm to continued perpetual war
president, in the mold of dumbya bush though national u.s. defacto bankruptcy,
viz., ‘wobama the b (for b*** s***)’. White House more hard-nosed about Chinese
government / Hu to face a tougher Obama administration (Washington Post)
[ Please … don’t make me laugh … and, are you sure you didn’t mean more
‘brown-nosed’ about the Chinese government. This is starting to sound like seed
material for the Weekend Update SNL skit segment, ‘REALLY’. I mean, really.
Does anybody believe this? Come on … I don’t think so! ] Analysts say President
Hu Jintao is eager to burnish his legacy, but he will find a White House that views
his government with misgivings.] [Drudgereport: Currency system 'product of
the past'...
HU QUESTIONS FUTURE OF DOLLAR
RISING DRAGON: China on equal footing with USA as Hu visits Washington...
GE CEO: China one day will be world's biggest economy… daaaaah! ...
Careful to avoid criticism... ] President urges counterpart to allow more freedom
and open a real dialogue with the Dalai Lama, and raises the case of imprisoned
Nobel winner.
Possible Earnings Season Potholes Simon Maierhofer, On Wednesday January 19,

2011, 6:58 pm EST ‘Earnings season is upon us and according to 10 strategists and
investment managers polled by Barron's, there's no cloud in the sky. The future's
looking bright.If you've followed Wall Street forecasts for a few years, you must have
discerned a pattern: Forecasts are always rosy. If Wall Street analysts were
meteorologists, their outlook would always be 'sunny' unless it is actually
raining.Therein lies the problem; Wall Street never sees hard rain coming and only
offers an umbrella after investors have gotten trenched. The purpose of this article is to
provide an out of the box forecast with analysis you won't hear on the Street.
Insiders vs. Analysts
Analysts have their optimistic disposition implanted by the companies they cover.
Corporate managers have every incentive to stay positive for as long as they
can.Ironically, as CEOs project record high earnings, insider selling has picked up. In
December, Investors Intelligence reports that: 'there was a sharp acceleration in the
pace of insider selling over the last week, as if they suddenly all received word that the
index highs would end.'Who would you rather believe - analysts (and their sources) with
an agenda or the action of insiders with skin in the game? Something doesn't seem right
if insiders want you to do as they say but not as they do.
Unbridled Enthusiasm
Mark Twain said that: 'When I find myself on the side of the majority, I know it's time to
find a new place to side.' The majority of investors (and analysts) now believe in rising
stock prices.Sentiment gauges have recorded readings not registered since the 2007
all-time highs, or before the May 'Flash Crash.' This is usually a sign of a market that's
getting ready to roll over.
Trap #1
This brings us to the first investment trap for Q1 2011 - equities. After rallying more
some 90%, the major indexes a la Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq
(Nasdaq: ÎXIC) are simply overbought, over loved and overvalued. This doesn't mean
that they have to crumble tomorrow, but NOW is the time to think about protection.In
each of the past three years, January trading has delivered a surprise shot of reality.
Don't be surprised if it happens again in 2011.Sectors with the biggest gains include
retail (NYSEArca: XRT - News), consumer discretionary (NYSEArca: XLY - News),
materials (NYSEArca: XLB - News), and technology and these are also the most
vulnerable to correction.Even though it defies Wall Street's approach of linear
extrapolation, sectors that do well one year, rarely top the list the following year. It would
make sense to either buy put protection - which is historically cheap due to a low VIX -
or set mental stop-loss safety levels to avoid suffering through a painful correction.In an
effort to keep this article brief, we won't delve into the Europe crisis. One of the ETF
Profit Strategy Newsletter's predictions for 2010 was an increase in sovereign debt
defaults. The Europe crisis will be with us for a while and will turn into a big drag for
developed markets (NYSEArca: EFA - News) eventually.
Trap #2
A rush for tax-free yield drove investors into municipal bonds. Chasing yields can be a
pricey mistake. If you plot dividend yields against stock prices over the past 100 years,
you'll quickly notice that periods of low yields are generally a good time to sell, not buy
stocks.The muni bond market has been an obvious, but ignored, house of cards.
California is nearly bankrupt and every other state or municipality has seen their tax
revenue dwindle. Loaning money to municipalities is like giving a car loan to someone
who just lost their job. The default risk is high.On August 26, the very day Treasuries
and muni bonds topped - the ETF Profit Strategy Newsletter told its subscribers to get
out of muni bonds, corporate bonds and Treasuries. Prices for bonds have tumbled
since and the danger isn't over. The three trillion muni bond market is in serious danger.
Now is the time to worry about return of your money, not return on your money.
Trap #3
Not all is as it seems and if you put your trust in the Fed, you may soon be
disappointed. Quantitative easing in general, and QE2 in particular, was supposed to
stimulate the economy, increase inflation and the money supply.[chart]As the chart
above shows, it didn't do any of the above. QE2 also was intended to lower interest
rates to increase lending and make mortgages more affordable. The chart below shows
what the interest of the 10-Yr Treasury has done since QE2 was launched.[chart]The
Fed is treating the previous indulgence in debt by taking on even more debt. This is like
taking more heroin to kick a drug addiction. It will keep you functioning for a while, but
eventually your system will shut down. The only chance of success is to detox.
The Minefield Looks Pretty
To sum up, we are looking at a minefield covered by a beautiful blanket of flowers. The
Fed - although it's failed to jolt the economy - has succeeded in inflating stocks
(NYSEArca: VTI - News) and commodities (NYSEArca: DBA - News). It has served as
fertilizer for fake growth.But sentiment is indicative of a market ready to roll over. Similar
sentiment readings and warnings by the ETF Profit Strategy Newsletter in December
2008, January 2010, and April 2010 led to declines from 9 - 29%. Aside from Fed
induced liquidity, there's not been much reason to believe this time will be different. The
market's internal strength has been waning as various breadth indicators failed to
confirmed the recent price highs.
Enjoy the Sight, Mind the Feel
Creeping up trends like the current one can go on for weeks. But take a look at the price
action leading to the April highs and it becomes clear that such stair stepping up trends
tend to end very abruptly and without warning.That doesn't mean that a correction has
to turn into a meltdown, but if you maneuver through trap-infested territory, it pays to be
careful and protect yourself.’
Financials Lay an Egg: Dave's Daily ‘If I don't post every day it's easy to forget
how the routine goes, but that's not your problem. Anyway, most disappointment
Wednesday surrounded financials and perhaps materials. Investors were pretty
energized regarding bank prospects but were disappointed with GS and AXP
reports. The DJIA was propped higher by IBM's earnings keeping in mind it's a
"price weighted" index with the company being the big dog there. Oddly, the rest
of the tech sector saw sharp declines led by semis and networking. Commodity
markets were mixed to down on the day while the dollar sold-off. Bonds rallied
some as stocks were lower and home building data was weak. Volume continues
to be incredibly light and it's hard to put your finger on why. Connected obliquely
was news that hedge fund assets reached and exceeded their prior highs now at
$1.9 trillion. With an unknown percentage of these assets involved in HFT (High
Frequency Trading) it only enhances the impact of this activity. As some may
know we utilize DeMark indicators to assess timing exits from long or short
positions. DeMark is usually quiet but today he posted a note suggesting an
"imminent" decline in markets was at hand. With POMO ongoing (more today) it's
the wind behind bulls' sails that could defeat many technical indicators. In any
event, volume picked up on selling while breadth was decidedly negative per the
WSJ.’
Europe faces a new crisis The Voice of Russia | UN depressing forecast was
made in report on the World Economic Situation and Prospects-2011.
Bank giant Goldman rewards staff with €11.4bn Independent.ie | Wall Street
banking giant Goldman Sachs revealed today that staff earned a total of
$15.4bn (€11.4bn) in pay and bonuses last year.
Home Construction Declines WSJ | Home construction in the U.S. fell to its lowest
level in more than a year in December as builders cut back on new single-
family homes, the latest sign of a moribund market.
China ‘logs double-digit growth in 2010′ China’s economy grew 10.3 percent last
year but inflation exceeded the government’s full-year target, Hong Kong-
based Phoenix Television said on its website Wednesday.
Housing Starts in U.S. Decreased in December to One-Year Low Builders began

work on fewer homes than projected in December, a sign the industry that
triggered the recession continued to struggle more than a year into the U.S.
economic recovery.
Trade With China?: 25 Facts That Prove That China Is Kicking Our Rear Ends Do
you believe that trade with China is a good thing? Well, you might not be so
sure after you read the 25 facts listed below. The truth is that China is
kicking our rear ends all over the planet.
US Mint Reports January Silver Sales Hit 26 Year High When we had last checked
on the total silver sales by the US Mint earlier today, the amount given was
3,407,000 ounces, a number which we had earlier speculated would be a
monthly record if sales were maintained at the current pace.
National / World
Statement by Secretary Napolitano on Senator Lieberman’s Retirement [ Good

riddens … Connecticut should be jumping for joy! ]Jason Douglass | After
Sen. Lieberman’s retirement announcement, Napolitano makes statement.
Man Dies After House Fumigated With Same Fluoride Compound Sprayed On
Food Steve Watson | Known insecticide toxin was approved for use on fruits,
nuts sold to Americans.
10 Ways In Which China Humiliates The United States Paul Joseph Watson |
Globalists are using China as the vehicle through which to complete the
total deindustrialization of a decaying America.
Terrormania Grips US: PSYOPs Justify Bloated Budgets Jason Douglass | Around
the country ‘regular people’ are coming face to face with terror!
Will Corporate Media Blame Spokane MLK Bomb on Tea Party? Kurt Nimmo |
Incident follows Arizona shooting by less than two weeks.
Doping Up the Troops EconomicPolicyJournal.com | U.S. Central Command policy

allows troops a 90- or 180-day supply of highly addictive psychotropic drugs
before they deploy to combat, reports Nextgov.
China Moves Troops Into North Korea Salem-News.com | South Korea’s daily
newspaper is reporting that what Western analysts have feared has
happened: Chinese troops have been deployed into North Korea.
Poll: US support for Afghan war drops Press TV | A recent poll shows the
American people’s support for the Afghan war has dropped to the lowest
level since President Barack Obama took office.
10 Ways In Which China Humiliates The United States Rolling out the red carpet,
lining Constitution Avenue with Communist flags, and treating unelected
Chinese dictator Hu Jintao to lavish White House dinners while he
badmouths the U.S. dollar is hard enough to stomach, but there are a
plethora of ways in which China is humiliating the United States as the
globalists get ready to use China as the vehicle through which to complete
the deindustrialization of the decaying American banana republic.
China Plants Flag on Constitution Avenue On Tuesday night, Obama followed the
script closely. He sat down to what the corporate media describes as “an
unusual and intimate dinner” with Hu Jintao, the CEO of the sprawling slave
labor gulag and globalist dream come true in China.
Man Dies After House Fumigated With Same Fluoride Compound Sprayed On
Food A man found dead in a house in San Jose, California, Monday was
believed to have been killed by a toxic fluoride compound used to fumigate
the residence, the same fluoride compound that has found its way into many
foods with government approval.
Will Corporate Media Blame Spokane MLK Bomb on Tea Party? Rachel Maddow
has yet to pin blame for a bomb left along a Martin Luther King parade route
in Spokane, Washington, on the Tea Party, but NPR suggests white
supremacists may be responsible.
Meet The New Boss: China Owns The United States The flags along Constitution
Avenue tell you everything you need to know – America has been sold out
and our new Chinese slavemasters are now leading the sheep to slaughter.
Even as Barack Obama bows and fawns to President Hu Jintao, the
globalists for whom he fronts are sharpening the knives and preparing to
unleash the bloodletting as the dying carcass of America is dragged into line
to facilitate the global management of the planet.
“Experience China” debuts at NYC’s Times Square A video show about Chinese
people made its debut on screens at Times Square on Monday, presenting
Americans a multi-dimensional and vivid image of Chinese people.
Arlington Man Loses Gun License Due To Blog About Tucson Shooting A blog
threatening members of Congress in the wake of the Tucson, Arizona
shooting has prompted Arlington police to temporarily suspend the firearms
license of an Arlington man.
MSFT, Goldman Sachs CEOs to Meet Obama, Hu at White House Chief executive
officers from Microsoft Corp. and Goldman Sachs Group Inc. will be among
the corporate leaders the Obama administration is bringing together today
for a meeting with Chinese President Hu Jintao aimed at expanding U.S.
business interests in China.
White House more hard-nosed about Chinese government / Hu to face a tougher

Obama administration (Washington Post) [ Please … don’t make me laugh … and,
are you sure you didn’t mean more ‘brown-nosed’ about the Chinese government.
This is starting to sound like seed material for the Weekend Update SNL skit
segment, ‘REALLY’. I mean, really. Does anybody believe this? Come on … I don’t
think so! ] Analysts say President Hu Jintao is eager to burnish his legacy, but he
will find a White House that views his government with misgivings.
Concerns rise over Afghan forces (Washington Post) [ Well, to their credit, at
least the Afghans purport to know how to count which of course is
something lost on defacto bankrupt america and so-called ‘coalition’
members. After all, there will come a time when this military apparatus will
say, pay / feed me, at which point the reply will be, with what, at which point,
obfuscated or not, all hell breaks loose. ]
Proposed sale of land stokes anti-Chinese views Job creation seen as key to
China's investment in U.S. (Washington Post) [ Boy, you can’t make this
stuff up! Talk about coming full circle. I think Japan and the u.s. are
constrained to start getting used to it. From scourge for taking jobs to now
prospective savior for potentially creating them, I’d say communist China’s
in the catbird’s seat as defacto bankrupt america pounds salt and fritters
away money she doesn’t have in perpetual needless wars in the mideast,
etc.. ]
Obama to feds: Cut the red tape (Washington Post) [ Riiiiight! That red tape thing
… you know, as in laws, regulations that rein in corrupt, illegal, fraudulent
behavior … Heck, we all know they’re not enforced anyway; ie., still no pros
of the frauds on wall street, plus legislative help to cover-up their
gargantuan past (and ongoing) crimes by way of mark to anything FASB rule
change for those worthless toxic paper assets from the last fraud, etc.. Yes
… change, as in change change by the man of change, changer wobama the
‘b’ for b*** s***!. After all, the next election cycle will be gearing up and those
campaign funds need replenishin’. Sounds like a plan. ]
Steve Jobs Your Take: Apple without Steve Jobs (Washington Post) [ Yeah! It’s
quite difficult to imagine in any positive sense. Indeed, there was a feeding
frenzy among the dinosaurs (ie., microsoft, et als) purportedly owing to the
absence of the 800 pound gorilla (Apple – far advanced in evolutionary
terms) which according to the frauds on wall street should benefit the
dinosaurs, spiking their share prices (unlike when gates, who just loved that
archaic BASIC programming language to death, etc., left; and then the
notorious problems with that ‘ms kernel’ that only people who know,
KNOW). Jobs indeed will be sorely missed! ]
[ It should be noted that the paranoid american criminals have once again, this
time by way of hack via microsoft (willing accomplice as was att of jersey /
dumbya bushland – deleted / I caught the problem and have also installed
opensource.org which I strongly recommend (at least a look – won’t
disappoint – I used same for the archived PDF post files) is free and a
breeze to use and though compatible with word and a multitude of other
formats, for now on these specific web site documents (I have image folders
already linked which would require at least a look) it’s easier and faster for
the time-being for me to add to the existing documents with word; but as is
so of america, microsoft’s a dinosaur) gave me a few problems, serious
enough to require a redo, which I have corrected / overcome; but believe
me, I won’t forget it! They will be sorry! ]
[ It should be noted that the paranoid american criminals have once again, this
time by way of hack via microsoft (willing accomplice as was att of jersey /
dumbya bushland – deleted / I caught the problem and have also installed
opensource.org which I strongly recommend (at least a look – won’t
disappoint – I used same for the archived PDF post files) is free and a
breeze to use and though compatible with word and a multitude of other
formats, for now on these specific web site documents (I have image folders
already linked which would require at least a look) it’s easier and faster for
the time-being for me to add to the existing documents with word; but as is
so of america, microsoft’s a dinosaur) gave me a few problems, serious
enough to require a redo, which I have corrected / overcome; but believe
me, I won’t forget it! They will be sorry! ]
Self Correcting Market Poses Unique Situation Pierce ‘There is quite a danger
premium built into this market as the market continues to grind higher. Here are a
few thoughts as to what the look of a correction could look like from user
AlbertaRocks on Seeking Alpha referencing the Hindenburg Omen, Goldman
Sacks, and market makers.
Sources are saying that the vast majority of investors are now in the
market “with no hedge”, meaning with no puts. But you can bet that
the institutional managers have some protection of some sort. If they
don’t have puts in place, you can be pretty sure that they have
trailing stops in place. And we can rest assured that they’re
tightening those trailing stops with each passing day. The more
wacky and contrived this melt-up becomes, the tighter they’ll move
them. Wouldn’t you just love to know how tight those stops are, and
how many shares are for sale at each price level just below the
market? You can bet the farm that Goldman knows.
That’s most likely why there’s been no sell-off allowed. And that’s
why there’s little likelihood of there being any sell-off that they can
control. I’ve been speculating on this for damned near a year now. I
thought they’d lost control at the August correction, but I was wrong.
But the further this Fed induced insanity has gone, the more likely it
is that the xxxxxxx (the Fed, GS and their minions) are probably
finally trapped. This is why we “need” to see if 1130 holds. If it does,
I’d bet that it would be “barely”. If it doesn’t, then 900 might not hold
either. Anyway, that’s why I’m expecting violence in the markets. I
don’t even know whether to expect a nice, tidy slow melt-down that
accelerates (if that’s even possible), or a 40 handle gap lower one of
these days. But whatever it is, when those stops begin triggering,
there won’t be a damned thing GS can do about it other than buy
them all up… or just let ‘em go and throw all their own shares into
the pot as well. If the bankers ever want out, the question we’ve all
be asking is “who they gonna sell to?”. Now we can add the fact that
not only do they have nobody to sell to, but they have billions of
shares of competition who’ll want out at the same time as the banks
do. Man…. I can’t see how it could be anything other than a violent
crash.’
Gauging Economic Activity: It Takes Money to Make Money Hansen ‘It appears
that most people focus on money flows as the gauge of economic activity. Non-
monetary measures are generally ignored. GDP measures money flows.
Consider that the majority of people (aka "consumers") in the USA (and the world
for that matter) account for a small portion of the money movements. Looking at
incomes (and not expenditures), the reality comes into focus.
[chart]
The above graph shows the breakdown of the economy by income - not selected
expenditure like GDP. The sum of this income pie is several times GDP as money
moves around the economy. The relationship between the incomes of people,
business and government (as shown on the above pie chart) has remained fairly
constant since 1948.
What has changed is the income distribution of people (totaling 43% of total USA
income) in the yellow and green pie slices. The yellow pie slice of Joe Sixpack
has been getting smaller while the green pie slice for the richer Americans has
been getting larger.
[chart]
Average income becomes larger than median income as the number of high
earners increases.
When we use money flows as a metric to understand how well an economy is

doing, the majority of the population (the yellow pie slice) becomes insignificant.
Joe Sixpack does not have enough money to be a factor in this economy where
money flows are the squeaky wheel which gets the grease. As the economic
controllers are graded by how much money flows grow, natural gravity (not
conspiracy or lobbyists) would cause laws and regulations to favor groups
(business and high worth people) which will make the "money flow" economy
expand.
In the case of the USA, 80% of the people amount to 40% of personal income,
while 20% of the people make 60% of personal income. This fixation on money
movements as a metric to understand economic growth favors the elements of
the economy which most easily can generate faster monetary expansion.
You remember the saying "It takes money to make money".
For the richest people of the economy, this has translated into long term wealth
building (chart complements of Wikipedia).
[chart]
If economic progress was based on counting jobs, or living conditions, or life
expectancy - attention would be directed towards that metric instead of GDP
which has little in common with Joe Sixpack, or the majority of Americans. The
GDP metric is now discriminating against Joe Sixpack.
GDP in chained dollars keeps rising. Joe is getting further behind.
Economic News This Week:
Econintersect economic forecast for January 2010 pointing to a slightly

improving economy. This week the Weekly Leading Index (WLI) from ECRI
continued to improve from 3.4 to 3.7 implying the business conditions six months
from now might be improving. Six monts ago, the WLI was declining indicating
that December should have been slightly worse then July 2010. This December
data is coming in fairly strong.
[chart]
Initial unemployment claims in this week’s release increased slightly. If you look
at the not seasonally adjusted claims - they rose to an eye popping 770,413.
[chart]
Here is a comparison to prior years non-seasonally adjusted initial claims with

the approximate gain over the previous week:
• 2005 693,776 (+153K)

• 2006 555,114 (+80K)
• 2007 506,709 (+0K)
• 2008 547,943 (+25K)
• 2009 956,791 (+225K)
• 2010 815,593 (+170K)
• 2011 770,413 (+192K)
It is likely that the seasonal adjustment factors are a little off this week, and is one
more reason to follow the four week moving average with smooths out the
inconsistencies in the data. The unadjusted increase for the first week of the year
in 2011 is similar to the two preceeding years (2009 and 2010). All three are
obviously much larger than the preceeding three years (2006,2007 and 2008). One
is tempted to ascribe this difference to the institution of a New Normal. However,
2005 (153,000) is close to the range observed for 2009-2011 so maybe the
distribution of data 2006-2011 is a circumstantial arrangement of random data.
Moral: Exercize caution when casually attributing observations to a "New"
Normal.
Most of the data released this week was inconsistent with Econintersect’s
December forecast of slow growth - and it more resembles Econintersect's
January forecast. Overall the December data released this week was strong.
However, the transport indicators began their improvement in December which
historically foretells economic improvement. Warning: one month does not make
a trend. The table below itemizes the major events and analysis this week.
Weekly Economic Release Scorecard:
ITEM HEADLINE ANALYSIS
Energy price surge a concern to E
CPI Up 0.5%
expansion
Retail Sales Up 0.8% This is a gross understatement. T
Industrial Production Up 0.8% Agree that Industrial Production in
This is November Data - but the in
Manufacturing & Trade Sales Up 1.2%
unadjusted data
Energy surged 7.7%. Likely to sho
PPI Up 1.1% MoM
months
Shrunk $100
Trade Balance Historically high exports but surp
million
Consumer Metrics Index Consumer Contraction is now 270
Diesel Consumption Up 2.4% Diesel use at December historical
Rail Traffic Up 7.3% Positive trend lines going into 201
Both consumer sentiment and sm
Small Business Sentiment Down 0.6%
relative negative positions
Wholesale Sales Up 1.9% November sales are at historical h
Blueprint for Disinflation Avoid owning fixed assets
Bond Vigilantes Historically major bond holders d
Inflation Chupacabra Chupacabra is not coming to eat o
Opinion: Headwinds for 2011 There is far more risk then realize
Opinion: Currency, Newton and the
The underlying economic driver is
Gardener
Opinion: Yellen Says QE Saved the This entire economic policy mora
Economy experimental control.
Bankruptcy this week: Constar International Inc.
Bank Failures This Week: [chart] ‘
On Unemployment, Inflation and Flawed Fed Logic [ Hasner has omitted a very crucial
fact: america’s defacto bankrupt and saddled with insurmountable record level debt! ] Hasner ‘The sum
total of Fed actions over the past 3 years can probably be summed up as the central
bank attempting to create its own reality. They have committed to the following :
• Keeping deflation at bay and raising the inflation rate

• Keeping the Fed Funds rate low for an indefinite period (forever?)
• QE1 and Q2 (and Q3)? (Quantitative Easing - the purchase of US government
securities in the open market)
• Supposedly working toward full employment while stating that it will take 4 to 5
years for employment to recover?
All of these actions are the result of a single fact: They are compensating for failing to
do the job they were tasked with from 2000 to 2008. They failed and we pay and pay.
I think we have to first explore why inflation is so important to the Fed to make sense of
this mess.
The banks are still in a big hole (of their own digging) and need housing prices to stay
elevated to keep their losses in check. These same banks need to recapitalize at low
interest rates (via bond issuance) and to profit from the rate spread to keep their salary
game intact. The wealthiest individuals in America stand to lose the most from deflation,
even though housing price devaluation would enable an entire new generation of hard
working Americans to participate in the housing market.
The influence of the wealthy on Fed policy is not hard to understand. Keep the status
quo and you are safe from congressional inquiry as a Fed governor; do what's in the
best long term best interest of the American citizenry at large and you are not. Congress
by and large will continue to go along with this charade for as long as we let them. It
should be "one man, one vote", but these days it’s how many dollars you can pony up
that determines how many "votes" you can muster.
Why does inflation serve the largest banks and corporations disproportionately while
hurting the average working citizen?
Greater Inflation is desired because the largest banks still hold massive amounts of
"bad" loans on their books that simply cannot be justified under any scenario except
elevated housing prices. Greater inflation is desired by large multinational businesses
so that they may increase current pricing levels and continue to grow profitability for
shareholders. Greater inflation is sought so that the Fed can regain credibility and
maintain the illusion of being in control of the markets. Inflation in basic necessities such
as food, energy, health care and educational expenses have the potential to drain the
resources of anyone below the upper strata of society. Making life harder for those on
the margin to protect those at the top is not only bad economic policy, it's immoral.
What might the potential long term effects of a near zero Fed funds rate be?
The longer the Fed keeps rates at zero, the longer the banks have to develop strategies
for operating in a "risk" free capital environment. Given past history, it's only a matter of
time (when, not if) until the banks blow the economy up yet again. Low rates directly
benefit the banks and large corporate sectors of the economy. They can borrow at
historic low rates whereas the average citizen has no capability of obtaining such
funding. While mortgage rates have moved to levels we have not seen in a decades,
the corresponding tightening in loan qualification standards means that many cannot
take advantage of them. Profits to the largest businesses and no tangible benefit to the
American citizen - can you see a pattern developing?
The Fed will eventually be faced with a quandary of enormous proportions. Either raise
rates and suffer the wrath of a capital allocation system that has spent the better part of
5 years devising the most profitable ways to game that system, or keep rates at or near
zero and continue favoring the largest and wealthiest businesses in America over the
working class. I fear the Fed may be secretly planning to permanently lower rates
because I cannot frankly see any other way out of their dilemma.
Let's talk about employment in America, or more correctly, the problem with
employment in America.
The latest government report shows a 9.4% rate of unemployment. While that statistic is
down from 9.8% from the previous month, it probably reflects people actually dropping
out of the labor force and not gains in employment. They drop out when their
discouragement level becomes so high it is unbearable for them to keep trying.
Unbearable for them to keep trying to seek gainful employment. Is this the America we
really want?
The latest report shows that 103,000 jobs were created. This is not even near enough to
take up the new workers entering the work force, let alone put back to work the tens of
millions (yes that's right....tens of millions) of people who have lost their jobs and are
seeking work. I can't believe this is happening in America. It's sickening. Record profits
and cash balances for America's biggest businesses and no employment opportunities
for the working class.
Unemployment compensation was extended to 99 weeks for those seeking work. But
what was missing was any sort of connection between these benefits and actually re-
training these folks for careers that may be in demand. If a worker is laid off due to
economic circumstances, chances are his line of work or skillset is not in demand
anymore. Why in the world are we not getting these folks into new careers? I know for
some it is a stretch to think that an educated IT worker may now have to re-train as a
health care worker or a nursing home assistant, but at some point in this vicious cycle
you have to let the free market work.
We currently 'import' people from all over the world to staff our hospitals and nursing
homes and I sometimes wonder why we are not putting able bodied Americans to work
instead of just sending them 99 weeks of unemployment checks while they go through
the futile exercise of trying to re-live their past glories. The reason, of course, is that
these jobs pay much less than their former occupations and then they wouldn't be able
to afford that damn McMansion anymore. You do see it all goes back to the banks and
their bad loans. When does it all end? The Fed believes that more inflation is the
answer to unemployment in America. How about you?
To be constructive in my final analysis, I recommend we do the following things NOW to
get this country back on the path to economic opportunity for all, and not just those who
already have it:
1. Stop trying to keep housing prices inflated. Houses are overpriced now and
the market laws of supply and demand should be allowed to set the price level.
2. Force the banks to clean up the bad loans. I frankly don't care how much it
would hurt profitability. Enough is enough. If we force them to take losses on their
bad loans and clear their balance sheets, we can finally get back to the business
of growing America for all citizens. The one benefit is the huge Wall Street salary
and bonus scam will have to come to an end. Someone in government has got to
have enough backbone to take them on - I just don't know who that is.
3. Instead of spending taxpayer resources on efforts to keep housing price
levels inflated, we should use that money to create a “What's needed now”
job clearance engine that will be a government/private industry
partnership. When someone loses their job, they would be required to utilize the
services of this job clearing facility and be prepared to be re-trained, if necessary.
If they don't want to, fine, but the unemployment checks would soon stop.
Incentive enough, I would hope. We have become a society of pampered “I want
it now” consumers and it's time we realized that our economic competitors in the
global scheme are working harder at jobs we would not consider "worthy". We
need to wise up before they overtake us and become the ones who determine
our economic destiny instead of the other way around. Any work is good work,
period.
4. We need to get interest rates to a level 3.5 to 5%, where seniors and other
people who cannot afford risk taking in any form can still provide for themselves
after a lifetime of hard work and savings. What we are doing to these people is
surely a crime, and for what? To keep the banks in the salary and bonus
business?
5. Finally, we absolutely need to question the way we have allowed the largest
banks to get bigger during the crisis without regard to solving the "too big
to fail" problem. I know that nobody in Congress wants to take them on, but the
banks need to be broken up. It's the only way America can get back on sound
footing and prevent future disasters.’
Chinese Yuan; A new world reserve currency? Economic Assassin | Twelve days
into the New Year (2011) and China has already set the wheels in motion to
use their most powerful weapon, the Yuan, in order to combat inflation.
China Says the End of the Dollar is Near WSJ & AFP | Chinese President Hu
Jintao emphasized the need for cooperation with the U.S. in areas from new
energy to space ahead of his visit to Washington this week, but he called the
present U.S. dollar-dominated currency system a “product of the past” and
highlighted moves to turn the yuan into a global currency.
BullionVault.com Runs Out Of Silver In Germany With the US Mint selling silver at
an unprecedented pace, it was only a matter of time before the silver
shortage would be spotted across the Atlantic, where distributors ran out of
both gold and silver on a daily basis during the first time Europe became
insolvent some time in early May 2010.
“The Fed No Longer Even Denies that the Purpose of Its Latest Blast of Bond
Purchases … Is To Drive Up Wall Street Of course, rather than admit that the
Fed is failing at driving down rates, rising rates are now being heralded as a
sign of success.
Home Building, Sales Probably Languished as Market Lagged Behind Recovery

Bloomberg | Homebuilding probably dropped in December and sales of
existing houses struggled to rebound from a post-tax credit slump,
reflecting a market trying to regain its footing more than a year into the
economic recovery, economists said before reports this week.
BP’s Rosneft Deal Replaces Reserves Lost in Post-Spill Sales at Half Price
Bloomberg | BP Plc’s $7.8 billion share swap with OAO Rosneft will replace
almost all the reserves it sold to pay for the Gulf of Mexico spill at less than
half price.
UK: Oil Prices May Kill The Economy NICK Clegg earlier this week made a pitch
for the hearts of “alarm clock Britain”: those who “come rain or shine are
busy making Britain tick”. He was right to identify working people as being
in need of support, having been taken for granted during the Labour years.
Rising gasoline prices sour U.S. consumer mood Rising gasoline prices beat
down U.S. consumer sentiment in early January, overshadowing an
improved job outlook and passage of temporary federal tax breaks, a survey
released on Friday showed.
Silver: From $30/oz to over $500 by 2020 And from $500 to $5000 by 2030!
The Outlook for Inflation Inflation Trader ‘Retail Sales was softer-than-expected
(+0.6%, +0.5% ex-auto, plus downward revisions, versus 0.8%/0.7% expected),
Industrial Production stronger-than-expected (+0.8% versus +0.5%), and CPI a
smidge above expectations (maintaining 0.8% y/y on core, and rising to 1.5% y/y
on headline). More on CPI later.
“Close enough!” cried the equity traders, who subsequently put up prices 0.7%
on the day, to 28-month highs in the S&P. Bond traders also felt the balance
favored a stronger economy and faster price increases, but moved yields only a
few basis points higher with the 10y note to 3.33%. Inflation swaps curiously
softened 2-5bps despite the reasonably sunny outlook for carry; some traders
and investors feel the inflation market is a bit frothy right now – which it is, but
supply is tight and I am not sure I’d be very aggressive about shorting inflation-
linked bonds even at these valuations.
With Friday’s trading, the Jan-2011 TIPS have matured. The yield of the bond over
its lifetime is a picture of the economy of the 2000s (see Chart, click to enlarge,
source MorganMarkets). The recession of the early part of the decade shows up
clearly, as does the expansion from 2004-07; the dip in late 2007 as the
developing recession became apparent was followed by the spike as Lehman
collapsed and balance sheets became allergic to anything except TBills. It was
clearly the buying opportunity of the last few decades in fixed-income, as the
ongoing crisis was more consistent with sub-zero real yields, and the issue
subsequently rallied nearly 700 basis points in 15 months from December 2008 to
March 2010.
[chart]
Jan 11s, we'll miss ye.
So now, let’s talk about CPI.
Core CPI was +0.092% month-on-month; the annual rate of change rose slightly
to +0.804%. I’d mentioned Friday the potential for a surprise higher in the monthly
change because of the reversal of last month’s seasonal adjustment quirk (which,
in November, held the monthly change down). This didn’t happen, and my
suspicion is that the main part of the effect will actually be seen in this month:
January 2010’s seasonally-adjusted change in core CPI was a rather surprising
-0.14%, which accounts for most of the difference in the seasonally-adjusted and
non-seasonally-adjusted year-on-year series. We will have to wait a month to see.
But that is just sharp-pencil trivia for the bow-tied set. The bottom line is that the
year-on-year change in core CPI is now rising. The headline figure did surprise on
the upside, printing +0.505% to put the year-on-year rise at +1.496%. This was
accomplished mostly through the rise in commodities (gasoline contributed
0.37% to the headline number, so with core+gasoline you have almost all of the
month’s change), and more of that is to come over the next few months.
Perhaps more surprising is that the second-largest contribution came from

housing, which added 0.08% to the overall figure and therefore accounts for just
about all of the rise in core CPI. This is remarkable – it was the largest such
contribution in years. This is probably a reasonable time for a step back and a re-
think about the overall outlook for inflation.
The Outlook For Inflation
Current Conditions:
The basic pricing conditions in the United States at present are:
• Housing continues to drag on core inflation, but far less than it had been.
The y/y change in Shelter is 0.447%, compared to 0.804% for the overall
core. The main two components of Shelter are “Rent of Primary Residence”
(that is, if you are a renter rather than an owner) and “Owners’ Equivalent
Rent of Residences” (that is, what is happening to the consumption value
of your home, as distinct from its investment value). These two series are
illustrated in the chart below (click to enlarge). While OER is only up
0.282% y/y, Rent of Primary Residence has risen 0.798%: essentially in-line
with core. The chart (source: BLS) illustrates that at least the near-term
pricing dynamic has changed.
[chart]
Surprisingly, housing is now contributing to inflation.
• Offsetting this surprising rebound in housing (Shelter is around 40% of

core inflation), just about everything else has seen price inflation
decelerating. The core-ex-housing number, which was cause for much
alarm last year when it spiked near 3%, has plunged to just over 1% (see
Chart below, click to enlarge). Apparel (about 4% of core) has plunged from
+2% to -1%, Recreation (about 8% of core) is contracting at -0.8%,
Education inflation (about 4% of core) has shaved from 5% to 4%, and
Communication inflation (about 4%) has gone from 0% to -1%. About the
only major core element (other than housing) that hasn’t decelerated very
much is Medical Care (8.5% of core), but it also isn’t accelerating.
[chart]
To my surprise - although anticipated by my models - core ex-housing has
regressed to the core number rather than the other way around.
• This is not wholly surprising. Two models of core inflation that I follow
have predicted this declining trajectory of core inflation; both models
predict a turn higher now. I wouldn’t have expected core inflation to evolve
this way – with housing inflation bouncing higher while core-ex-housing
provided a drag – but the outcome is approximately in line with my models,
which broadly suggested core inflation declining to around 1% until Q3 or
Q4 and then remaining at approximately that level through mid-2011. In the
event, core inflation has overshot on the downside somewhat, but not
egregiously so.
• Commodities will continue to place upward pressure on headline inflation
relative to core inflation at least for the near-term, and I think probably for
the medium-term as well.
• Because of the general decline in the volatility of price changes, and in the
dispersion of price changes (that is, most items are experiencing broadly
similar inflation), inflation feels lower than it has for some time previously.
With reported CPI around 1.5%, I estimate the “real feel” inflation at around
2.7%, which is nearly as low as it has been at any time in the last forty
years except during the financial crisis (You can read more about the “real
feel” inflation temperature here). Consumers are perceiving a broadly
stable pricing environment, which is probably one reason that the stock
market is doing so well and confidence is rising. Gasoline, however, could
change all that: the real-feel jumped from 2.4% in November.
Base Forecast:
Aggregated models of core inflation and one which separately forecasts housing
inflation both project rising inflation going forward. The average of the models is
1.5% for 2011 core inflation. Interestingly, the model that separates out housing
inflation projects 1.8%, but then converges in 2012.
The main influences on the 2011 inflation outlook are the late-2008 spike in
money supply, the decline in the dollar over 2009, and the level of core inflation in
late 2010. It is important to realize that there are long lags in the pass-through of
monetary policy to inflation. Most of the broad currents of 2011 inflation have
long since been formed. Policymakers are right now working on policies that will
influence 2012 and 2013 inflation, but not much will drastically change the
outlook for core inflation in 2011.
Risks to the Outlook:
However, the model is not “fully specified.” That is, not every possible influence
on inflation is included in the model – mostly because there are all kinds of
influences that I can’t imagine, or because some influences operate with variable
lags. For example, my models do not include consumer expectations of inflation.
Partly, this is because I don’t think they have a lot to do with inflation, but the
Federal Reserve thinks they are very important and if they’re right, my model will
miss inflation zigzags that are caused by changes in consumer expectations and
not captured in other variables. I also do not model changes in money velocity
directly, but this can be as important or even more important than the level of the
money stock itself.
The risks to the outlook have been generally to the upside over the last year or
so, but seem to be somewhat more balanced now that core ex-housing has
decelerated. Of course, when we are near the lows we should expect that inflation
feels saggy and that the risks seem more balanced. Here are what I see as the
main risks to the outlook.
Downward Risks
1. My models do not have a role for the output gap. In my econometric work, I
haven’t found that the output gap adds any explanatory power to a model
that already includes monetary variables (and I’m not the first person to
notice this: Fama in 1982 is the first person I’m aware of to show it). But
this may have happened if I looked for a linear influence, while the
influence is actually nonlinear – that is, maybe small output gaps don’t
matter but large output gaps, about which there is limited experience in the
data sets, matter. If this is the case, then the large output gap we currently
have will dampen inflation more than I expect it to.
2. In my models, leverage plays an important role. High levels of private
leverage tends to dampen inflation; moreover, since leverage is related to
the velocity of money, stable leverage tends to imply stable money velocity
and thus a stable quantity of money. After signs in 2008-09 that an
important deleveraging trend was underway, that trend slowed in late 2010
as the Federal Reserve has worked hard to maintain the degree of systemic
leverage. I think this is a really bad long-term idea, but in the short-term
there’s no question that a collapse of leverage could lead to extremely bad
growth outcomes. From an inflation perspective, though, high levels of
private debt relative to public debt tends to dampen inflation, so by
encouraging leverage the Fed is somewhat inhibiting medium-term
inflation. If the deleveraging trend turns back into releveraging, it will tend
to truncate some of the more bullish inflation scenarios.
Upward Risks
1. Money supply growth has remained tepid although it is accelerating, but

the Federal Reserve is clearly trying to increase money growth. As I noted
before, normal money supply growth passes into inflation with a long lag
but if there was sharp money growth then some of that increase would
likely pass through into inflation in a shorter time-frame (quantitatively, my
models assumed fixed lags but in reality the lags ought to be distributed…
that is, the pass-through happens over time. When the changes are small
this is not terribly important but for large changes we could feel some
effects sooner). Now, the Fed doesn’t want a sharp increase in
transactional money (e.g., M2) even though it is pumping massive amounts
of liquidity onto bank balance sheets. As I wrote several months ago (see
comment here), we don’t know how or if that money multiplier will return to
normal. If it doesn’t happen until the Fed withdraws the M0, that produces
one outcome; if it suddenly snaps back then that could cause a massive,
uncontrolled rise in M2. That isn’t my null hypothesis, but we really don’t
know how this will work (no matter how confident the Chairman is about it)
and the direction of the risk is quite clear.
2. The Fed, despite protestations to the contrary, has no way to unwind
liquidity provisions in a rapid, yet orderly way and likely would be slow to
do so even if inflation began to rise. This doesn’t affect 2011 inflation, but it
implies that the medium-term trajectory for inflation probably needs to take
into account the fact that the Fed will not be leaning against the wind in its
normal fashion.
3. Majority political preferences all favor higher inflation because it seems to
solve some problems (at least at moderate levels of inflation) at a low cost.
Therefore, most political decisions are likely to be made without particular
concern for the effect on the pricing dynamic.
4. The dollar is unlikely to rise sharply (although it may rise), but conceivably
could fall sharply if public debt grows too onerous. See Iceland, whose
currency fell 50% against the dollar in 2008. There is little doubt that
Greece’s and Ireland’s currencies would have been similarly penalized had
they not been on the Euro (incidentally, this is also the reason that Iceland
will recover long before Greece or Ireland – the latter countries lack one
crucial automatic stabilizer). It isn’t likely to happen here, but it could.
5. I mentioned above the risk that private leverage reasserts itself, but the flip
side of that risk is the risk that public debt simply explodes. What really
matters to inflation is actually less the amount of debt but whether that
debt is largely private (which is disinflationary) or public (which tends to be
inflationary). For a long period of time, the ratio of Federal, State, and Local
debt as a proportion of total debt has been fairly stable between 22% and
37%, but the huge deficits of the last couple years combined with whatever
private deleveraging there was has pushed that ratio to the upper end of
that range (as of Q3. When the Q4 numbers come out it will be shocking if
we aren’t at new multi-generational highs of that ratio). Even if
deleveraging stops, the increase of the public debt creates ever-larger
incentives to inflate it away. This wouldn’t likely manifest as a 2011 risk
except through a currency collapse as mentioned above, but it is a very
large problem for the medium term. I’ve run charts before but the Financial
Times had an excellent article on the debt problem on Thursday. Below
(click to enlarge) you can see the key illustration from that article.
[chart]
Source: Financial Times, Jan 13, 2011
I’ll end there. The bottom line is that the 2011 trajectory will be to roughly a
doubling of core inflation with a good chance of headline figures outpacing the
rise in core (and perhaps significantly). The less-stable pricing environment will
also likely produce a larger jump in perceived inflation. There are both upward
and downward risks to this forecast, but the upward risks in my view
predominate – especially in the medium- and long-term outlooks.
The bond market is closed today, Monday for the Martin Luther King Jr. Day
holiday, but on Tuesday the Empire Manufacturing (Consensus: 13.00 from 10.57)
report is due out. The next regular installment of this comment will be on
Wednesday morning.’
Lindsey Williams: Insider Source Says Food, Gas Prices to Soar The Alex Jones
Channel | Williams told Jones the price of crude oil is slated to move to $150-
200 per barrel.
Is the Fed Broke? Economic Policy Journal | Former Fed official says Fed would be
almost broke if assets were marked to market.
And Now For My Next Magic Trick… NO Inflation! And now for my next trick… I
will now show you how the government steals our entire life’s work through
the manipulation of the inflation numbers. These statistics/lies, may seem
like “little white lies,” but they are at the core of the massive global
corruption.
Kappa Beta Phi, Wall Street’s Secret Society, Elects New Members This weekend
a tight-lipped group of power brokers elected two new members into Kappa
Beta Phi, Wall Street’s secret society founded in 1929, Bloomberg reported.
Swiss Whistleblower to Hand Bank Data to WikiLeaks A former Swiss private

banker says he plans to hand over data on hundreds of offshore bank
account holders to the WikiLeaks website at a London news conference on
Monday.
Strong Indications of Gold & Silver Shortages Since reaching new highs at the
end of 2010 gold and silver have been sold off, and the selling has been
particularly intense in the last few days. The news on the economy is almost
exclusively bullish for the precious metals.
John Hussman: Borrowing Returns Hussman ‘As a reminder of how we
approach market valuation, we strongly believe that securities are a claim
to a stream of future cash flows that can actually be expected to be
delivered to investors over time. As a result, we have little sympathy (and
history demonstrates little sympathy) for the popular but misguided
practice of applying arbitrary valuation multiples to forward analyst
estimates of earnings. Generally, these "forward earnings" estimates fail to
normalize for fluctuations in profit margins, return on equity, and other
factors that have historically driven short-term earnings temporarily above
and below levels that that would have a stable, proportional relationship
with the present value of subsequent cash flows. Forward operating
earnings estimates are more volatile and more influenced by recent short-
term behavior than can properly be used as a basis for valuation, and the
resulting earnings "misses" can be particularly extreme at turning points.In
the graph below, you'll notice that the prior peak for S&P 500 trailing net
earnings has often been a reasonable "rule of thumb" estimate of
normalized earnings, but in recent years, temporary spikes in profit
margins have periodically driven peak earnings briefly above properly
normalized levels. For that reason, as I wrote several years ago, prior peak
earnings have become increasingly unreliable. This is particularly true
given the actual destruction of book value and revenue in recent years. It's
certainly possible to debate the precise level of normalized earnings here,
but somewhere in the $70-$75 range, which is where we are at present, is
roughly accurate on a trailing net basis. Our estimates also assume
continued future long-term growth of slightly more than 6% annually, as
reflected by the red channels.
[chart]
Importantly, since our normalized figure tends to run with earnings peaks
rather than earnings troughs, the corresponding multiple applicable to
these earnings has historically been less than 14 (and was actually closer
to 12 in pre-bubble data, which was typically associated with long-term
total returns near 10% annually). Since "forward operating" earnings are
typically about 20% higher than trailing net, the resulting historical P/E
"norms" should also be adjusted accordingly (which analysts rarely do).
None of this is to say that the earnings peak during the current economic
cycle has to be limited to the present level of normalized earnings - just
that more elevated earnings would not be an appropriate basis on which to
compute the long-term value of stocks.’
States Warned of $2 Trillion Pensions Shortfall [ This is a very big deal! ] US

public pensions face a shortfall of $2,500 billion that will force state and
local governments to sell assets and make deep cuts to services, according
to the former chairman of New Jersey’s pension fund.
Niall Ferguson On Whether The Financial Crisis Will Lead To America’s Decline
And A Glimpse Of The “Post-Pax Americana” Dark Ages Two weeks after we
presented Niall Ferguson’s video lecture – “Empires On The Verge Of
Chaos” to tremendous reader response and almost 30,000 views, we follow
up with another must watch video presentation, this time highlighting the
intellectual rigor of Ferguson, David Gergen and Mort Zuckerman.
Food Price Inflation Threatens Global Security A few weeks ago, we highlighted
the United Nations Food and Agriculture Organization (FAO’s) food index,
which has risen to new record heights, and wondered aloud if crises were
coming. Our question has been answered; it has come… the only question
now is whether or not it will be spreading.
Debt Bondage From The Economic Treason of Banks Between now and the end
of the year, most likely in the fall, we’ll see major financial and economic
problems in Greece, Ireland, Portugal, Belgium, Spain and Italy. Those
events will sorely test Germany, France, Holland and Austria.
Nigel Farage on ‘Monster’ Eurozone: Bailout Reinforcing Failure In Brussels,

Eurozone finance ministers are meeting to discuss whether to boost the EU
bailout fund which was only set up last year.
National / World
Russia’s Medvedev backs independent Palestine [ Medvedev is correct and
courageous in his position which, though previously shared by ie., clinton,
wobama, etc., has been back/soft peddled of late in bending to political /
zionist contraindicated pressures. ] Reuters | Russian President Dmitry
Medvedev endorsed a Palestinian state on Tuesday.
China Says the End of the Dollar is Near WSJ & AFP | Chinese President Hu
Jintao emphasized the need for cooperation with the U.S. in areas from new
energy to space ahead of his visit to Washington this week, but he called the
present U.S. dollar-dominated currency system a “product of the past” and
highlighted moves to turn the yuan into a global currency.
Confirmed: Stuxnet Was False Flag Launched by Israel and U.S. Kurt Nimmo | New
York Times report confirms what we knew all along.
Israel used Stuxnet against Iran with US help AsiaNetIndia | US and Israeli
intelligence services collaborated to develop a destructive computer worm
to sabotage Iran.
Confirmed: Stuxnet Was False Flag Launched by Israel and U.S. On Saturday, the
Gray Lady of establishment propaganda, the New York Times, passively
admitted that the Stuxnet virus responsible for crippling Iran’s nuclear
energy program was engineered by Israeli and U.S. intelligence.
In Tucson, thousands attend gun show one week after mass shooting “The
events at the Safeway store were tragic and unprecedented, but they weren’t
about lawful gun ownership,” said Bob Templeton, the president of
Crossroads. “It was about a mentally ill person who gained access to a
firearm he shouldn’t have.”
MSNBC Host: ObamaCare Opponents a Bunch of ‘Crackers’ ‘Hardball’ host lets

one slip in describing outspoken opponents of the president.
TSA Now Forcing Opt-Outs To Walk Through Body Scanners Paul Joseph Watson |
Agency claims machines are “switched off,” traveler says policy is part of
psychological ploy to coerce subservience from other passengers.
TSA Continues to Deny Scanners Store Images Jason Douglass | TSA asserts their
body scanners cannot store images even though technical specifications
suggest otherwise.
On Gun Control and Violence Ron Paul | Our constitutional right to bear arms
does not create a society without risks of violent crime, and neither would
the strictest gun control laws.
NASA’s Hansen: Impose Chinese Totalitarianism on America Kurt Nimmo |

According to Hansen, only brutal authoritarianism is capable of forcing the
climate change agenda on the American people.
Stuxnet: Another “Conspiracy Theory” Turns Out To Be True Paul Joseph Watson
| Debunkers attacked claim that US and Israel were behind worm attack –
now it’s admitted
Sudan Next To Succumb To Bernanke’s Inflationary Experiment, As Country

Threatens Revolution Over Surging Food Prices About a month ago, some
took offense at our characterization of the Chair-hewlettpackard-man as a
“bearded mutant-cum-supreme genocidal overlord” after we predicted to the
dot that his monetary policy would eventually lead to a global, well,
genocide, presumably first in the developing world.
Schwarzenegger: ‘I Was Addicted To Power’ [ And steroids too, at one time,

taking its toll on the former male model / actor / pretender’s brain.
Fortunately, it’s cold turkey for the turkey terminator. What an abject failure
in office he turned out to be. ] Arnold Schwarzenegger is pulling no punches
in his first formal interview since leaving office, claiming that the highest
office in the state left him “addicted” to its power.
NASA’s Hansen: Impose Chinese Totalitarianism on America Totalitarian thugs
love China. They love its authoritarian government and absolute political
power. One such thug is the climatologist James Hansen of NASA. Hansen
thinks America needs to adapt Chinese authoritarianism in order to force
climate change down the throats of the American people.
Global food chain stretched to the limit Strained by rising demand and battered
by bad weather, the global food supply chain is stretched to the limit,
sending prices soaring and sparking concerns about a repeat of food riots
last seen three years ago.
Bombshell: How Fluoride Is Killing You and Your Children A significant milestone
in the fight against fluoride emerged quietly and without major notice from
the mainstream news last week. After decades of ignoring the research
about the dangers and hailing water fluoridation as one of the 10 greatest
health achievements of the 20th Century (CDC), the government is calling for
a reduction in the amount of fluoride it adds to public water supplies, citing
its negative effect on teeth (dental fluorosis). For the first time since 1962,
the standard for fluoride will be lowered from 1.2 to 0.7 milligrams per liter.
Peter Schiff: Washington a parasite to economy US foreclosures hit record highs

in 2010, but that may not be the worst of it. 2011 may be even worse.
Meanwhile, JP Morgan Chase exceeded market expectations, announcing a
47% rise in quarterly profits and released details on a $28.1 billion pay and
bonus pool. Peter Schiff, the President of Euro Pacific Capital said
Washington and Wall Street are becoming one force and are sucking the
underlying American dry like a parasite.
U.S. Bills States $1.3 Billion in Interest Amid Tight Budgets As if states did not
have enough on their plates getting their shaky finances in order, a new bill
is coming due — from the federal government, which will charge them $1.3
billion in interest this fall on the billions they have borrowed from
Washington to pay unemployment benefits during the downturn.
Biden Urges Pakistan To Intensify Fight Against Terrorism [ Careful what you
say, ‘lobomy joe’ (biden-those uncontrollable outbursts), because they may
just figure out who in fact the real terrorists are; viz., pervasively corrupt war
criminal nation america and friends (ie., illegal nuke-toting, war crimes
nation israel, nato allies, et als). ]RTT | United States Vice-President Joseph
Biden has urged the Pakistani government to intensify the fight against
terror outfits, especially al-Qaeda, which he said continued to plot attacks
against America from remote areas of the country.
Fire to the Fuel: More NATO tankers torched in latest Pakistan attack A driver was
wounded in Pakistan’s south-west on Saturday when gunmen set ablaze 14
tankers carrying fuel for US and NATO troops in Afghanistan, officials said.
The latest attack occurred in the Dera Murad Jamali area in Baluchistan
province. Islamist militants and criminals in Pakistan frequently attack
trucks carrying supplies for US and NATO troops. The attacks in Pakistan
have led the US to rely more on other supply routes, including through
countries north of Afghanistan.
Chuck Baldwin: Restoring The Republic PrisonPlanet.tv | Chuck Baldwin, former

Constitution Party candidate for President, breaks down the left-right
paradigm and how the globalists are in control of both major political
parties.
Rockefeller Owned: Chileans tell him he will fail You Tube | An activist confronts
David Rockefeller during his vacation to Chile, alongside with Chilean media
magnate Agustin Edwards Eastman, head of El Mercurio, outside the airport.
Lindsey Williams: Insider Source Says Food, Gas Prices to Soar The Alex Jones
Channel | Williams told Jones the price of crude oil is slated to move to $150-
200 per barrel.
Tunisian Wikileaks Putsch: CIA Touts Mediterranean Tsunami of Coups Webster

Tarpley | Arab governments must immediately expel all officials of the
International Monetary Fund, World Bank, and their subset of lending
institutions.
Stuxnet Worm Used Against Iran Was Tested in Israel The Dimona complex in the
Negev desert is famous as the heavily guarded heart of Israel’s never-
acknowledged nuclear arms program, where neat rows of factories make
atomic fuel for the arsenal.
The First WikiLeaks Revolution? Tunisians didn’t need any more reasons to
protest when they took to the streets these past weeks — food prices were
rising, corruption was rampant, and unemployment was staggering. But we
might also count Tunisia as the first time that WikiLeaks pushed people over
the brink.
Global warming researchers says eating bugs better for environment than eating
meat Ethan A. Huff | Researchers say that insects produce far less
greenhouse gases than cattle and pigs do, and would thus be a viable
alternative to eating meat.
The Witch Hunt Begins: Citizen Spy Network Targets Political Speech and Gun
Owners Infowars.com | Tyrannical campaigns have been initiated and
designed to break up communities and turn citizens against one another.
Rachael Maddow’s Faulty Gun-Control Argument A.J. MacDonald, Jr. | I believe
that an armed citizenry prevents tyranny, which is exactly why the Founders
gave us the Second Amendment to the US Constitution.
Video: The ‘Opportunity of Crisis’: Nixon blamed the left for ’72 shooting of
George Wallace Aaron Dykes | Recordings show that President Nixon
attempted to plant evidence that would frame assassin Arthur Bremer as a
Leftist McGovern/Kennedy supporter before Bremer’s background or
affiliation was known, just as in Tuscon.
Reactionary Gun Laws Proposed in South Carolina After Arizona Shooting

Brandon Turbeville | Those who support the Constitution and ending the
private Federal Reserve are considered fringe fanatics in the eyes of the
mainstream media.
Rachel Maddow: Enemy of Liberty and the Bill of Rights Kurt Nimmo | The
limousine liberal Rachel Maddow used her MSNBC show Thursday to call for
a renewed gun-grabbing effort by the government.
Bombshell: Government Admits Fluoride Hurting Children A significant milestone

in the fight against fluoride emerged quietly and without major notice from
the mainstream news last week. After decades of ignoring the research
about the dangers and hailing water fluoridation as one of the 10 greatest
health achievements of the 20th Century (CDC), the government is calling for
a reduction in the amount of fluoride it adds to public water supplies, citing
its negative effect on teeth (dental fluorosis). For the first time since 1962,
the standard for fluoride will be lowered from 1.2 to 0.7 milligrams per liter.
Study reveals top ten violence-inducing prescription drugs The Institute for Safe
Medication Practices (ISMP) recently published a study in the journal PLoS
One highlighting the worst prescription drug offenders that cause patients
to become violent. Among the top-ten most dangerous are the
antidepressants Pristiq (desvenlafaxine), Paxil (paroxetine) and Prozac
(fluoxetine).
‘Bush, Reagan let drugs flow free to US from Nicaragua’ – ex-dealer “Freeway”
Ricky Ross, a former US street legend, who as a drug dealer was once
responsible for flooding California’s streets with most of its hard drugs,
spoke with RT about his activism against drugs. After making up to US$2
million a day and then spending 20 years in prison, Ross started from
scratch and is now trying to make a difference by keeping kids from
following into his footsteps.
Israel Tests on Worm Called Crucial in Iran Nuclear Delay New York Times - The
Dimona complex in the Negev desert is famous as the heavily guarded heart
of Israel's never-acknowledged nuclear arms program, where neat rows of
factories make atomic fuel for the arsenal. RT Video: Atomic Mystery Tour:
Russia says no to Iran's nuke site invite RT Iran touts tour of nuclear sites,
despite absence of key critics CNN
Afghan drug war stumbles (Washington Post) [ Stumbles? As in ‘accidently on

purpose’? Or, alternatively, among the few american wars that never was.
After all, the Taliban had all but eradicated the heroin trade. Moreover, post-
invasion, bush’s order to destroy the poppy fields was countermanded by
the pentagon and of course, not by chance, the heroin production / trade in
Afghanistan has been reinvigorated, resurgent, and never been greater (the
substantial raison d’etre for u.s. war / occupation there – that ‘benefiting the
few’ thang – as in Vietnam where body bags of dead u.s. soldiers were used
by u.s. ops, cia, etc., to smuggle the heroin out). The tenor of this article is
an insult to intelligence everywhere. ]
Rendition: Where the War on Terror Meets the War on Drugs Patrick Henningsen |
It’s time to ditch the policies we have come to tolerate for decades before
they consume what is left of our moral core. I’ve experienced the corrupt
inter-relationship of the government (all 3 corrupt branches) and the illegal
drug trade / obstruction of justice / bribery first hand, particularly the
courts / u.s. attorneys offices (ie., alito – now u.s. supreme court justice –
quid pro quo for his complicity / cover-up), feds; see immediately after
article excerpt for links / summary.
…“Evidence points to aircraft – familiarly known as “torture taxis” – used
by the CIA to move captives seized in its kidnapping or “extraordinary
rendition” operations through Gatwick and other airports in the EU being
simultaneously used for drug distribution in the Western hemisphere. A
Gulfstream II jet aircraft N9875A identified by the British Government and
the European Parliament as being involved in this traffic crashed in
Mexico…” In 2004, another torture taxi crashed in a field in Nicaragua with
a ton of cocaine aboard… Mexican soldiers found ..132 bags containing 3.3
metric tons of cocaine. The origination of the Gulfstream’s flight is
unknown but it was destined for Cancun when it crash landed. Again, here
is the important point: that same Gulf Stream II was one of the very same
planes chartered to the CIA for the rendition of suspected terrorists
prisoners. Gulf Stream II crashed in Mexico with 3 tons of cocaine on board ..it
should not be surprising that this illegal practice of rendition has in some
part, been used as a well-run smokescreen for another borderless illegal
operation- an extremely lucrative international transfer and delivery of cash
and narcotics.,,These flights are not subject to regular customs checks,
inspections or normal regulations as they move seamlessly between
destinations in the US, Britain, Europe, Middle East, Central Asia, Cuba and
possibly through US bases in Turkey, Greece and Morocco…
Corrupt u.s. courts / judges: Their lifetime plush appointments should be

abolished, which corrupt entities are unheard of in productive societies as
China, Japan, etc.. Time to abolish these drags on society and eliminate
their lifetime stipends and costly bureaucracies. Rules of law mean nothing
to these typically corrupt americans. Most, including sam alito of the u.s.
supreme court, concerning drug money laundering and obstruction of
justice in the 3rd circuit ( also maryanne trump barry who covered-up drug
money laundering through her brother’s casinos in a civil RICO case) should
have gone to or belong in jail. Contrary to popular belief, they do it for the
money, personal money, big, cash, untraceable money. The fog of war is
great for such things (360 tons $100 bills flown into Iraq and missing, etc.).
]. america’s just a fraudulent and failed defacto bankrupt nation.
NSA beats warrantless wiretap rap A Federal judge has dismissed a complaint
against the National Security Agency’s (NSA)

their lifetime stipends and corrupt costly bureaucracies.
There must be such things as parallel universes (I don’t really believe that,
because there isn’t) or how else do you explain the disconnect between
reality, current and prospective, and the wet dreams posited to keep the war
funding / corporate welfare programs alive in collectively what has already
become a trillion dollar boondoggle (not counting prospective medical
costs, etc.) and promises to go much higher. Even israel apologist Cohen of
The Washington Post alludes to the Vietnam analogy. However, even if there
were real goals beyond the poppy / heroin trade which the Taliban had all
but eradicated (there isn’t); even if america wasn’t defacto bankrupt (america
is); even if america wasn’t killing innocent civilians in large numbers (war
criminal nation america is); even if america’s allies haven’t similarly helped
to bankrupt themselves by way of this war (they have); even if I hadn’t told
you so (I did) ….. this war still was, is, and remains a very bad idea!
Afghan war overtakes Vietnam to become the longest conflict in U.S. history Mail
Online | The war entered its 104th month yesterday, with 30,000 American
troops being deployed in the first half of this year alone.
Consumer spending rises, but less than expected (Washington Post) [ Almost all
the economic news has been worse than expected yet the stock market has
continued its rationality/gravity-defying ascent. That ominous disconnect
between wall street and main street among other current and prospective
victims of the current bubble / fraud which the frauds on wall street and
insiders commission, churn-and-earn at lightning computerized high-
frequency trading speed and ultimately sell into. It’s the now familiar story
on fraudulent but apparently immune from prosecution wall street.
Moreover, all that pomo / fiat paper currency printing has just begun to take
its toll (see infra)] . Giving retailers the gift of sales growth for the sixth
consecutive month, consumers flex their spending power in December.
Nations seek to keep lid on food prices (Washington Post) [ It’s not just food
prices and one thing is certain; there’s much worse to come and resisting
the insurmountable record deficit ridden, pervasively corrupt, defacto
bankrupt american propaganda is a first step to understanding how bad, as
in unprecedented. Drudgereport: $100 OIL: DEAL WITH IT
Rising Gasoline Prices Put Consumers in Sour Mood...
UK WARNING: OIL PRICES MAY KILL ECONOMY AND THE COALITION...
[ No! It’s the debased, over-printed u.s. et als fiat currency which is killing
the economies though masked by the fraudulent wall street feel good, for
them, bubble and which lends credence to the calls for a new world reserve
currency, ie., juan, etc. ]
EYES ON OPEC...[ Beyond the propaganda, the eyes should be on the
complicit, fraudulent fed and the ‘printing presses’ of and for the debased
currencies. This is not OPEC’s doing but rather an economic axiom which
requires that a precious commodity increase in price when the debased
paper currency in which it is measured decreases in value (as now with
over-printing, over-creating for ultimately the exclusive benefit of the frauds
on wall street). ]
Feds threaten to sue states over union laws … [ but hands off the frauds on
wall street they say ] ...
FT: What chance a US default? ] Faced with rising international food
prices, governments around the world are cooking up measures to protect
domestic supplies and keep prices from rising at home. Related News
• Video: Economist says food prices may keep rising

• Spike in prices contributes to Tunisian violence
The Teflon Market Is Here [ Just ask the ‘Teflon Don’ … oh, right … he’s dead …
The pervasively corrupt frauds on wall street, the fed, and the u.s. government
are desperate to evade their unequivocal responsibility and overdue punishment
(prosecution, fines, jail, disgorgement) for the last and ongoing (toxic, worthless
paper assets now marked to anything) fraud diverting attention from their own
culpability for the prior bubble/crash and on-going financial / economic crisis,
america’s worst economy and prospects in america’s relatively short history with
this contrived bubble exceeding that precursor to the last crash; “this has never
happened before, in 82 years of history”, and a crash is what’s a-coming. This is
nothing short of pathetic desperation that typifies the last gasp of the dead and
dying, figuratively of course. ] Roche ‘Calling this a “bullish” run might be a bit
of an understatement. There has been an unprecedented bid under the market
since August 2010. The Bernanke Put is well entrenched in everyone’s minds.
This week ’s spike in jobless claims was not enough to cause risk appetite to
temper as it likely just reminds investors that rising claims are what led to QE2 to
begin with. Indeed, this is a Federal Reserve that will not allow equity prices to
falter to any substantial degree. Nominal wealth creation has become the rally cry
of a group of economic thinkers who truly have no idea how to create sustainable
economic growth.
The stats behind this bull market are even more remarkable than the rally itself
appears. As I noted in December the market literally could not decline. But the
data since then shows an even more untouchable market (via ZeroHedge):
“As a point of reference the S&P has been above the 10

day average for 30 days straight, and above the 50 day
average for 92 days straight. What is remarkable are
some statistical findings that pertain to the average’s
movement with respect to the SMAs. Sentiment Trader
points out that while as part of the recent surge in the
S&P, the market has gone for “92 days without closing
below its 50-day average, which has been matched only
17 other times since 1928.” Where it gets scary, is that
as pointed out, during this time the market has not
closed below the 10 DMA once during the past 30 days.
And as Sentiment Trader notes, “this has never
happened before, in 82 years of history.”
Not much else needs to be said. The teflon market is here.

Update: Some additional thoughts from Jeff Saut:
Herb Stein once remarked, “If something can’t go on

forever, it won’t!” And, the current “buying stampede” is
now 90 sessions long, making it the longest one ever
recorded in my notes of more than 40 years. Combine
that with many other “finger to wallet” indicators
suggesting caution and I am currently just sitting.
Indeed, sometimes me sits and thinks and sometimes
me just sits. As the astute Lowry’s organization opines,
“Our last short term sell-signal for aggressive traders
was triggered on December 30th, when the 14-day
Stochastic indicator dropped from overbought levels
and crossed below its moving average. A conventional
short term sell-signal, for culling selective stocks [from
portfolios], was registered as of today’s market close
(last Friday), when our Short Term Index dropped a total
of more than 6 points from its recent high of 104.” ‘
Lawmakers consider slowing Virginia foreclosure process (Washington Post)

[ Yeah, and you really have to take them seriously when they say that
because in alphabet soup kitchen (ie., cia, nsa, dod, doj, etc.) country (which
I’ve directly experienced along with the corrupt process in at least 4 other
states, see infra, the law is as malleable and arbitrarily enforced or not as
they want it to be as in any defacto bankrupt banana republic as pervasively
corrupt america certainly is today …Previous: Judges rule without title,
lenders can't foreclose (Washington Post) [ Rules of law? I didn’t think they
cared. That’s certainly the direct experience I’ve had with the pervasively
corrupt american legal / judicial system (along with the other two branches
of the u.s. government and defact bankrupt america generally). Court
decisions could call into doubt the ownership of mortgages, raising urgent
challenges for both the real estate market, wider financial system.
Connecticut, California join probe of Ally (Washington Post) [I’d be much
more impressed if they initiated a probe of more readily discernible criminal
offenses in violation of the RICO Act (Other newark / new jersey and new
york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz.,
ie., virginia experience … corrupt federal judges as maryanne trump
barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc..
yofperjury.pdf
totally.] Homeowners, who now face one of the fastest foreclosure
processes in the country, would be given more time to defend themselves
under one proposal.
Don't Fight the Fed: Dave's Daily ‘To be sure, companies like Apple and Intel are
doing well overall. But some companies are doing well due to ongoing Fed
financial support like banks and some auto companies. QE policies are designed
to prop stock markets higher, and with volume light, the job is made easier.
Therefore, when worse than expected economic data is released (Jobless Claims,
Consumer Confidence, Retail Sales, CPI, Chinese tightening and etc) investors
toss that information aside aided by more POMO. More maddening to more
thoughtful people are the lies being bandied about particularly with inflation data.
Food and energy prices are much higher and eliminating them from the data due
to imagined "volatility" is beyond mere spin. When I was a young college student,
my statistics professor gave to each student a book: "How to Lie with Statistics."
I think it must remain required reading for BLS, Treasury and Fed officials among
others. Let's remember, the government has a huge entitlement liability geared to
inflation statistics. They're conflicted…The Fed is just repeating what's worked
for them before--another bubble…’
Bullish Sentiment Dips, But Optimism Is Still High Rotblut ‘Bullish sentiment
declined 3.5 percentage points to 52.3% in the latest AAII Sentiment Survey.
Despite the dip, optimism that stock prices will rise stayed above its historical
average of 39% for the 19th consecutive week, matching the streak set in the
second half of 2004.
Neutral sentiment, expectations that stock prices will be essentially flat over the
next six months, slipped 1.6 percentage points to 24.2%. This was the 23rd
consecutive week that neutral sentiment has been below its historical average of
31%.
Bearish sentiment, expectations that stock prices will fall over the next six
months, rose 5.2 percentage points to 23.4%. Though this is a four-week high for
pessimism, pessimism is below its historical average for the 16th time in the past
18 weeks.
Though there was a decline this week, bullish sentiment remains in the range that
has largely held over the past six weeks. This has resulted in the eight-week
moving average reaching 53%, its highest level since January 6, 2005. High levels
of bullish sentiment have been correlated with market reversals, but other
indicators should be considered before making a market forecast.
As noted above, bullish sentiment has been above its historical average for 19
consecutive weeks, matching the streak set during the period of August 26
through December 30, 2004. A record streak of 42 consecutive weeks occurred
during the period of May 29, 2003, through March 11, 2004, when investors
realized that a recovery from the decade’s first bear market was fully underway.
This week’s special question asked AAII members about their expectations for
fourth-quarter earnings. Most respondents expected profits to be good with
companies continuing to experience growth. There was not a consensus on how
much profits would be up, however.
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Sees `Significant' Stock Selloff Within 12 Months ...Nov 12, 2010 ... Gary Shilling , who predicted
the U.S. housing collapse, says the stock market is overvalued and foresees a “significant” selloff
within a ... ] Early in 2008, in his monthly Insight report, Shilling laid out 13 investment themes
for the year ahead that proved to be 100% dead-on accurate--a perfect 13-for-13--and they proved
extremely profitable for his Insight readers.
Here's a scorecard to show how Shilling's forecast from 2008 has panned out:
1. Sell or sell short homebuilder stocks and bonds.

2. If you plan to sell your home, second home or investment home anytime soon, do so
yesterday.
3. Sell short subprime mortgages.
4. Sell or sell short housing-related stocks.
5. Sell or sell short consumer discretionary spending companies.
6. Sell low-grade fixed-income securities.
7. Sell or avoid most commercial real estate.
8. Short commodities.
9. Sell or sell short emerging market equities.
10. Sell emerging country bonds.
11. Buy the dollar before long.
12. Sell or sell short U.S. stocks in general.
13. Buy long Treasury bonds.
Gary Shilling released 12 New Strategies for thriving during the market melt-down. We call it his
"Bear Market Tool Kit." You can access his recommendations when you subscribe to Gary
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investment strategies for 2011 and beyond.
Are the brokers and television analysts who constantly parrot the "conventional wisdom" paying
serious attention to any of Shilling's predictions? Probably not. Gary looks for hidden investment
opportunities, which often means going against the conventional wisdom. And when you learn
more about Gary's credentials and his track record, you will realize that everyone who doesn't pay
attention to what he says might end up with some serious egg on their faces.
Gary has twice been ranked as Wall Street’s top economist by polls in Institutional Investor; he
was also named the country’s number one Commodity Trader Advisor by Futures magazine. And
in 2003, MoneySense ranked him as the 3rd best stock market forecaster, right behind Warren
Buffett. He also challenges the consensus in appearances on CNBC.
Gary also has a long-standing reputation for independent thought...and for getting it right. Back in
1969, he correctly predicted, to the surprise of many, the 1969-1970 recession. In the early 1970s,
he stood alone in predicting the severe 1973-1975 global recession. In the late 1970s, when
double-digit inflation was raging, Gary was nearly unique in forecasting dwindling inflation rates
as well as the wonderful stock and bond markets that lay ahead.
Gary has been running away from the herd for years, and he’s been nearly alone in making some
early, and accurate, calls:
•In early 1999, in the midst of the Internet stock boom, Gary Shilling was nearly alone in warning
of a collapse in tech stocks. In January 2000, with stocks still strong, Gary Shilling said a major
bear market was at hand. In November 2000, he foresaw total declines of 30%-40% in the Dow
Industrials, 40%-50% in the S&P 500 and 70%-80% in the Nasdaq—right on target with the overall
decline of 35% in the Dow, 49% in the S&P and 78% in the Nasdaq.
•While bulls were talking up housing, Gary was nearly alone for years in warning of a collapse well
before the rest of the crowd saw any signs that something was amiss.
Wouldn’t you have benefited from such insights? Gary Shilling's Insight readers were not only
well-prepared when the bad news began to unfold, but were also equipped to make money while
others suffered.
Rotblut cont’d
Here is a sampling of the responses:
• “I expect fourth-quarter earnings will be positive and companies will slowly

begin to add employees.”
• “Streamlined corporate cost structures combined with modest economic
growth should equal strong fourth quarter earnings.”
• “Good, not as good overall as the third quarter of 2010. I think everything
to increase productivity has been done and now it is a wait-for-demand
situation.”
• “Surprises to both the upside and the downside. I will be looking forward to
hearing the guidance, as I still don’t see the jobs in this recovery.”
• Bullish: 52.3%, down 3.5 percentage points

• Neutral: 24.2%, down 1.6 percentage points
• Bearish: 23.4%, up 5.2 percentage points
Historical Averages:
• Bullish: 39%
• Neutral: 31%
• Bearish: 30%
The AAII Sentiment Survey has been conducted weekly since July 1987 and asks
AAII members whether they think stock prices will rise, remain essentially flat, or
fall over the next six months. The survey period runs from Thursday (12:01 a.m.)
to Wednesday (11:59 p.m.). The survey and its results are available online.’
Just One Bank Failure Today There was only one closure today which brings the
total number of bank failures for 2011 to three. Oglethorpe Bank in Brunswick,
Georgia was closed by ...
Rising gasoline prices sour U.S. consumer mood Reuters | Rising gasoline prices
beat down U.S. consumer sentiment in early January.
Dimon, Gorman, Moynihan pitch for AIG share sale Reuters | Some of the United
States’ top bankers descended on a law firm in midtown Manhattan on
Thursday to make a pitch for managing what could be one of the largest
share sales in history.
Jobless claims jump, wholesale food costs surge Reuters | U.S. jobless claims
jumped to their highest level since October last week while food and energy
costs lifted producer prices in December.
Rising gasoline prices sour U.S. consumer mood Rising gasoline prices beat
down U.S. consumer sentiment in early January, overshadowing an
improved job outlook and passage of temporary federal tax breaks, a survey
released on Friday showed.
Silver: From $30/oz to over $500 by 2020 And from $500 to $5000 by 2030!
Who, How and Why: $140 Oil and $5 Gas According to a loosely-organized
apocalyptic Christian movement, May 21, 2011 will be the “end of days.” On
or about that same date, the price of oil in the United States will begin to
climb to $4 a gallon, according to two savants of the oil industry.
National / World
Bombshell: Government Admits Fluoride Hurting Children Alex Jones & Aaron
Dykes | A significant milestone in the fight against fluoride emerged without
notice last week, as the government called for a reduction in the amount of
fluoride added to public drinking water.
‘Witch Hunt FBI’ tops google trends as gov’t critics targeted Infowars | ‘Witch Hunt
FBI’ has reached #1 on Google Trends, as the feds have actually begun
visiting the homes of dissenters who criticize members of Congress in the
wake of the Tuscon tragedy.
Rachel Maddow: Enemy of Liberty and the Bill of Rights Kurt Nimmo | The
limousine liberal Rachel Maddow used her MSNBC show Thursday to call for
a renewed gun-grabbing effort by the government.
Chinese Company Sinomach Poised To Takeover Boise Jason Douglass | In an

effort to save themselves from ‘economic downturn’ Idaho leaves itself wide
open to opportunistic foreign interests.
Rachel Maddow: Enemy of Liberty and the Bill of Rights The limousine liberal
Rachel Maddow used her MSNBC show Thursday to call for a renewed gun-
grabbing effort by the government. After running an emotionally charged
video segment of Barry Obama paying tribute to nine-year-old mass
shooting victim Christina Taylor Green, Maddow read an anti-Second
Amendment screed from her teleprompter.
Court Rules Government Can Keep Naked Body Scanner Images Secret A federal
judge has ruled that the Department of Homeland Security can keep images
produced by x-ray body scanners out of the public domain, in a blow to
privacy group The Electronic Privacy Information Center’ s (EPIC) efforts to
release more than 2000 of the images that show intimate details of airport
travelers’ bodies.
Owners A plethora of tyrannical campaigns have been initiated and
The justifications for these fascist programs are always a matter of national
security. The real reason for these programs and even the events that
brought them into existence is to set up a police control grid.
Congress, Once Again, Looks To Extend Patriot Act With Little Or No Debate So
here we are in 2011, and where’s the debate and the promised effort to
sunset the worst aspects of the Patriot Act?
Drudgereport: $100 OIL: DEAL WITH IT

Rising Gasoline Prices Put Consumers in Sour Mood...
UK WARNING: OIL PRICES MAY KILL ECONOMY AND THE COALITION...
[ No! It’s the debased, over-printed u.s. et als fiat currency which is killing
the economies though masked by the fraudulent wall street feel good, for
them, bubble and which lends credence to the calls for a new world reserve
currency, ie., juan, etc. ]
EYES ON OPEC...[ Beyond the propaganda, the eyes should be on the
complicit, fraudulent fed and the ‘printing presses’ of and for the debased
currencies. This is not OPEC’s doing but rather an economic axiom which
requires that a precious commodity increase in price when the debased
paper currency in which it is measured decreases in value (as now with
over-printing, over-creating for ultimately the exclusive benefit of the frauds
on wall street). ]
Feds threaten to sue states over union laws … [ but hands off the frauds on
wall street they say ] ...
FT: What chance a US default?
Downwardly mobile in D.C. area (Washington Post) [ Well said, I love this …
except, not so limited to the d.c. area, but rather applicable to 21st century
america in general … the ‘downwardly mobile thang’ … except as to the
relatively few as to whom no laws nor rules of civilized behavior apply in any
meaningful way … you know, the ones who’ve plundered this nation, this
nation’s treasury, this nation’s people, and all the while plundering other
peoples in other nations to facilitate the schemes used in plundering the
people of this nation (wall street, the 3 strikes branches of government, war
profiteers, etc.). ] For millions of Americans, the recession has knocked
them down the socioeconomic ladder. ANALYSIS | Palin's 'blood libel'
comment backfires Washington Post) [ God knows I’m no fan of sarah
palin’s although I am constrained to admit that as a fan of Saturday Night
Live, I do appreciate her contribution to comedic content in the show. That
said, this new ‘tempest in a teapot’ of her own making is a bit overdone.
After all, it should be common knowledge by now, to put it mildly, that she is
quite dumb; and, like that burnt out, dumb, war criminal and moron, dumbya
bush (see , ie., bushisms from bush the brain-damaged moron
http://albertpeia.com/bushisms.htm), she also has trouble with words; more
specifically, the meanings of words. But it is also true that wobama and his
ilk have trouble with words and their meaning, particularly when those
spoken words are measured against what he does, his ilk never seeming to
discern the glaring difference … wobama the ‘b’ for b*** s***. Lamentably (by
her) and unexpectedly for palin was her failure to fully understand ‘that
jewish thing’ attached to the phrase and the tender sensibilities of those
who previously have been among the ranks of what seems more and more
to be a somewhat offbeat fanclub of sorts. Yeah, that ‘never hear the end of
it’ jewish stereotype of paranoid sensibilities to religious / ethnic prejudice /
slur behind some word, phrase, or even a sneeze (spielberg’s childhood
memories) can wind up turning around and biting you in you’re a** !
Previously: Krauthammer: Beyond Ariz., a reckless charge (Washington
Post) [ If it were only that simple; viz., a palin ( I’ve previously said I’m more
concerned with her level of stupidity, dumb enough in an infantile way to
prove she had gonads by pressing the button – never goin’ to happen, her
being in that position), a beck, a bush, a wobama (Drudgereport: OBAMA
FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'... ), etc.,
there’d be hope for pervasively corrupt defacto bankrupt america. The fact
is, the problem is inherent to america / americans themselves as I previously
wrote here and reiterate: Will: Half-baked explanations for tragedy
(Washington Post) [ Half-baked? Charlatans? The foregoing are in no short
supply in defacto bankrupt, meaningfully lawless, pervasively corrupt, fraud
prevalent america. See, for example, RICO case
yofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm .
Moreover, Mr. Will as an oftimes apologist for war criminal, pervasively
fraud-prone, defacto bankrupt, etc., america, with crime rates exceeding by
far those of any other so-called civilized nations, might indeed find himself
among those he’s so categorized. Among the last separate page sections to
my website will be a somewhat detailed psychoanalytic evolutionary profile
of the u.s. (one might ask who am I to do so which is fair comment to which I
would reply, read it, or not, your choice). However, for the nonce, let me say
that the it is no small coincidence that the 20th century has been dubbed ‘the
american century’. That the 20th century has been considered the bloodiest
is at once the natural concomitant of the foregoing reality. Keeping in mind
the so-called ‘selective’ processes in both insurance (adverse) and
evolutionary (Darwinian) terms, and as well, the psychology of it all from a
behavioral perspective, america has indeed evolved. From the genocide of
indigenous populations, to outlandish propaganda in support of same (ie.,
that ‘manifest destiny’ balderdash with overtones of religiosity spoonfed
since elementary school, etc.), to contrived conflict / war, such,
euphemistically bad behavior has been reinforced, some of which
conditioning not always purposeful, ie., the ever greater frauds perpetrated
on wall street for which there have been in large part no real punitive
consequences to the perpetrators; but, to the contrary, great financial
rewards though substantially detrimental to the majority. Despite the surface
appeal, that oft asserted ‘blue-blood’ distinction doesn’t pass muster. Aside
from the few seeking seeking religious freedom (ie., Puritans among some
others), most then new americans were such disaffected rejects of their
former homelands that desperation at best was motivation for travel to the
wilds of the ‘so-called new world’ as opposed to intelligent, rational choice;
criminals, mentally ill, the not-so-bright but ruthless populating the new
nation in disparate numbers toward the ends consistent with greed and
common criminality, corruption, and venality. As of the age of the dinosaurs,
the american century has passed into the annals of a history replete with
self-generating terrorism within and without (that blowback thing).
DRUDGEREPORT: NATION SHOCKED: CONGRESSWOMAN SHOT IN
TUCSON
]
Clinton pushes for economic and political reforms in tour of Middle East (Post,
January 13, 2011) Clinton expresses solidarity with Arabs on Mideast tour
(Post, January 13, 2011; 4:05 PM) Diehl: Mideast threats that can't be ignored
(Washington Post) [ Amazing what not running for prospective office can do
for balanced thinking, but still not quite. After all, who doesn’t know outside
of america / israel that the biggest Mideast threats are … america / israel and
those nato allies that are but lapdogs of the former. Moreover, some real
scrutiny of and self-analysis by the aforesaid is in order before purporting to
be advisors to any nation at all. ]
Tax cuts hinder Obama's plans (Washington Post) [ Plans? What plans?
Wobama’s become the proverbial gumball machine; viz., put a nickel in, get
a gumball of your choosing. Even his teleprompter has more integrity /
credibility than he. Campaign promises, words, plans based on both, are
nowhere to be found in the failed presidency of wobama in wobamaland. ]
Without deeper budget cuts or fresh revenue, officials will have a tough time
meeting the president's targets for tax-code overhaul and deficit reduction.
U.S. urges China to open market, heed intellectual property laws (Washington
Post) [ Pretty please,with a cherry on top, and lots of sugar … that’ll work …
riiiiight! After all, based upon realities, economic, financial, geo-political (–
that perpetual war thing and america’s pervasive corruption / fraud from wall
street to all three brances of the u.s. government and ops, see, for example,
RICO case
yofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ) who
should be giving whom advice. ] Commerce secretary says Beijing's
policies of protecting domestic industries will no longer suffice.
Henry Kissinger: Our challenge with China (Washington Post) [ Boy … talk about
playing both sides of the fence … H.A.K. as in hack … as in a blood-sucking
leach of a political hack! To the point, kissinger is a self-interested, greedy
zionist whose professional advice to war crimes nation israel has included
cordoning off illegal israeli occupied Palestinian territories and massacreing
indiscriminantly and completely the people, innocent men, woman, and
children, therein. That China’s rising and pervasively corrupt, defacto
bankrupt america’s in ineluctable decline is a foregone conclusion; and,
even more to the point, in no small part owing to kissinger’s efforts / policies
on his patrons’ (that economic shift to China cheered enthusiastically by
ceos and wall street alike) and particularly his own behalf. Little late to the
party, mr. hak … after all, what precisely did he do … that kissinger
associates thing … for the money … worse than those ‘run-of-the-mill’
lobbyists in d.c. (among the other alphabet soup kitchens, cia, nsa, et als,
think stink tanks, etc.). That america will try to stop China’s rise is almost
the natural concomitant to perpetual war / pervasively corrupt / defacto
bankrupt america’s intractable decline is also a foregone conclusion. That
either nation would be dumb enough to embark upon a collision course of
self-immolation is not (although america’s self-destructive, in addition to
destructive tendencies is a reality lost on no one). ]
Bond Panic to Weigh on Stocks Cadora ‘Despite the stock market's seemingly
inexorable rise, clues to a coming crisis continue to build, promising not only to
bring down equity prices sooner rather than later, but also to make the correction
much more severe than most expect. As readers of my Member Letter know, I
have been anticipating a dollar crisis to visit markets sometime in the first half of
2011, spurred by an exodus from bonds as the Federal Reserve continues its
malfeasant policies. In now seems the dollar crisis will be paired with a panic in
the municipal bond market.
[chart](Click to enlarge)
The Illinois legislature's decision to raise taxes as a means to fill its budget gap
sets an ominous tone for the municipal bond market. The message is clear:
politicians will attempt to drain taxpayer resources rather than control
outrageous spending habits. In other words, the root of the budget problem will
be ignored. This direction is bearish not only for munis, but also for the economy.
A muni bond meltdown will be detrimental to the dollar in more than one way, not
the least of which comes from the dollar's chief persecutor, Ben Bernanke.
Despite Bernanke's persistent denials that the Fed would step in to bail out a
state government, pressure will grow on him to do so as the crisis worsens. It will
be interesting to see if his political will fails him again.
Higher interest rates from bond markets ... both municipal and Federal ... will do
no favors for the stock market. In fact, a sense of crisis will exacerbate an equity
decline. I have proposed to readers that when this crisis hits, stocks will fall in
tandem with the dollar rather than being supported by its decline. That period of
positive correlation may be just in front of us.
The stock market itself is looking quite exhausted. According to my cycle
analysis, equities are due for a dive into a yearly low. Several market indicators
also suggest the time is ripe for stocks to roll over.
[chart]
(Click to enlarge)
[chart]
(Click to enlarge)
[chart]
(Click to enlarge)
Consider also that the respectable work performed over at sentimentrader.com

shows several sentiment extremes ... all bearish for the equity outlook ...
including a very large gap between smart money and dumb money confidence.
The stage is set for a significant stock market correction and this week's
breakdown in the muni bond market may provide the needed catalyst.’
Merck Hurts, Stocks Stagger After Jobless Claims
Tech-Heavy ETF Hits Short-Term Extreme - High Probability of Reverting to

Mean? Cowder ‘It was just another day in the park for the bulls. The continued
push since the gap became higher on Jan. 3 has managed to push the tech-heavy
QQQQ into a short-term “very overbought” extreme with an RSI (2) at 98.4. As I
always state, when an ETF typically reaches an extreme of this manner, the
market fades over the short-term (1-3 days). A move that pushes QQQQ lower
would likely close the gap at $54.62, which would mean a 3.5% loss for the
QQQQ.
A move like this would certainly be advantageous for my current open positions
in both the High-Probability and Mean-Reversion strategy. Yes, I took a position
later in the afternoon in the tech-heavy index and so far I like the probability on
this one. All of the short-term technical indicators that I follow are reading
extremes, so I had no choice but to take a position.
Intel (INTC) comes out after the bell tomorrow and should be quite the catalyst for
the QQQQ’s next move. I would love to say that the next move is definitely going
to be bearish over the short-term, but as we all know in trading, even when M-R
probability is leaning heavily towards your side, there are no guarantees.
Short-Term High-Probability, Mean-Reversion Indicator – as of close 1/11/10
Benchmark ETFs
• S&P 500 (SPY) – 83.7 (very overbought)

• Dow Jones (DIA) –75.3 (overbought)
• Russell 2000 (IWM) – 69.3 (neutral)
• NASDAQ 100 (QQQQ) – 90.2 (very overbought) / RSI (2) – 98.5
Sector ETFs
• Biotech (IBB) – 76.8 (overbought)

• Consumer Discretionary (XLY) – 57.0 (neutral)
• Health Care (XLV) – 83.1 (very overbought)
• Financial (XLF) – 74.1 (overbought)
• Energy (XLE) – 79.8 (overbought)
• Gold Miners (GDX) – 42.3 (neutral)
• Industrial (XLI) – 90.9 (overbought) / RSI (2) – 98.7
• Materials (XLB) – 81.9 (very overbought)
• Real Estate (IYR) – 54.5 (neutral)
• Retail (RTH) – 48.9 (neutral)
• Semiconductor (SMH) – 88.6 (very overbought)
• United States Oil Fund (USO) – 65.2 (neutral)
• Utilities (XLU) – 64.6 (neutral)
International ETFs
• Brazil (EWZ) – 69.8 (neutral)

• China 25 (FXI) – 73.1 (overbought)
• EAFE (EFA) – 73.5 (overbought)
• South Korea (EWY) – 75.4 (overbought)
Commodity ETFs
• Gold (GLD) – 56.5 (neutral)
Ultra Extremes
• Small Cap Bear 3x (TZA) – 29.1 (oversold)

• Small-Cap Bull 3x (TNA) – 69.4 (neutral)
• UltraLong QQQQ (QLD) – 91.5 (very overbought) / RSI (2) – 98.8
• Ultra Long S&P 500 (SSO) – 84.3 (very overbought)
• Ultra Short S&P 500 (SDS) – 15.5 (very oversold)
• UltraShort 20+ Treasury (TBT) – 62.8 (neutral)
Disclosure: I am short QQQQ.

Initial Jobless Claims Rise 35,000 ‘NEW YORK (TheStreet) -- The number of
Americans filing unemployment claims unexpectedly rose last week, the Labor
Department said early Thursday. The advance figure for seasonally adjusted
initial claims increased by 35,000 to 445,000 in the week ended Jan.8, the highest
level since October. Economists were expecting initial claims to drop to 405,000,
according to consensus estimates from Bloomberg. Estimates ranged from
400,000 to 415,000…’
An Amazing Statistic About Our Abnormal Market [ The only thing amazing is that
no one has come forth to state how preposterous this ‘modern day miracle of
computerized programming technology’ can make unreality so appealingly and
seemingly real that all are swept away with this tsunami of b*** s*** until it’s too
late, which as preceding other crashes, seems furthest from thoughts, mind, and
plausibility until invariably, grim reality comes a-calling and this scenario as
before will end as before especially quite badly. ] ‘Rev Shark at Realmoney.com
posted an amazing statistic which I believe he found at sentimenttrader.com.
According to Sentimentrader.com, the S&P 500 has now gone 92

days without closing below its 50-day moving average. That has only
happened 17 times since 1928. But what is really amazing is that over
the past 30 days, we haven't closed below the 10-day moving average
even once. That has never happened in the last 82 years of market
history.
As I've stated multiple times, it is not the rally we are experiencing that is strange,
it is the total inability to pullback at any point that is boggling to anyone who has
more than 6 months of market history under their belt.
[chart]
Don't forget in September and October we did not close below the 13 day moving
average for 2 months in a row. Indeed other than a hiccup caused by Ireland, we
might be working on the 5th month of no pullbacks.
This is an abnormal market. Anyone using historical context to trade is lost at
sea. Congratulations to Mr. Brian Sack, the Bernank, and his POMO crew for
making a mockery of traditional somewhat 'free' markets
Nevertheless, balance sheet policy can still lower longer-term

borrowing costs for many households and businesses, and it adds
to household wealth by keeping asset prices higher than they otherwise
would be.
Amen Brian. In the future I'd just eliminate the middle man (primary dealers) and
just buy SPY futures directly on a daily basis, much more efficient than our
current charade. Granted that removes the Wizard of Oz effect (don't look behind
the curtain - it's magic), but at least it would be intellectually honest. (I know, I
know - primary dealers don't "buy stock directly" blah blah)
[Jan 6, 2010: Charles Biderman of TrimTabs Claims US Government Supporting
Stock Market]’
13% Thursday - When Will You Capitulate? Davis ‘It’s starting! [chart] The last of
the bears are now capitulating. We’re hearing it in Member Chat and we’re
reading it in analyst reports and we’re seeing the fund managers on TV – it is very
out of vogue to be a bear.
Just a few weeks ago, I pointed out to Members how few bears remained by
saying "Look to your left, look to your right, look in front of you and look behind
you – you would be the only bear." That was way back when "only" 20% of
investors were bearish – as of yesterday, we lost 1/3 of those poor creatures and
now only 13% of the market is bearish. Now you can look diagonally as well and
you’ll STILL be the only bear!
Certainly the market seems to be proving the primary axiom of "You can’t fight
the Fed." Pretty much no matter what happens, the market goes up. Bryan
Leighton from Traddr! makes a good point saying: "It’s a neutral to positive
market and the only thing that can change that is some sort of surprise event out
of Europe or out of Asia or something major out of the US that the Fed is not
ready for or prepared for. If they are prepared for it – it will not happen – it will not
have a major effect on the markets."
That’s the reality we’re dealing with out there. As long as the Fed and their pet
IBanks are running the markets and as long as volume is at 3-year lows, allowing
the TradeBots to control each move – then it is wrong to be a bear. But, is it 87%
wrong? 87% bullish sentiment isn’t just "very" bullish – it’s a new, historic high.
It’s like going to a fight where the entire crowd only cheers for one guy which, like
professional wrestling, would be an automatic indication that the game must be
fake, Fake, FAKE!
[chart]
As you can see from this longer-term chart, we are as extremely bullish now as
we were extremely bearish in the two worst market events of the past quarter-
century. Much the way that Black Monday of 1987 and the Crashes of 2008/9 were
unique buying opportunities at 15% bullish, this may be a unique shorting
opportunity at 15% bearish that you are not likely to see again for decades.
As an optimist, it was easy for me to say 'buy' when I was one of the 15% still
bullish in March of 2009 – don’t expect the same conviction from me about selling
in January of 2011. We are generally bullish. We are long-term bullish. BUT – and
it’s a Big But (not to mention blasphemy) – I don’t think The Bernank is either all
powerful or infallible and I do believe that "some sort of surprise event out of
Europe or out of Asia or something major out of the US" could happen at any
moment so, as I said yesterday – we remain short-term cautious between now
and April, even as the rest of the market marches towards 99% bullish around us.
This does not stop us from making some bullish plays – in fact Scott of Sabrient
just reviewed the 4 Dark Horse Trader’s Hedge plays we’ve been tracking in a
virtual portfolio since the fall and the only problem we’ve been having is they are
too successful as the stocks have been outpacing our expectations and we have
to let go of both Veeco Instruments (VECO) (with a 36% profit in 5 months) and
World Acceptance Corp. (WRLD) (with a 25% profit in 3 months) because the
stocks performed so well that they’re not worth adjusting our hedges anymore.
That’s why we like our bullish to neutral Buy/Write Strategy, we can’t be harmed
to the upside, only forced to take our profits off the table and find anther partner
to dance with – which isn’t a bad forced discipline on stocks that are running
ahead of 100% annual gains.
Could we make more money by just "going for it" and being 100% bullish? Sure
we could, and once inflation takes hold and begins to snowball the markets
higher, that is exactly what we’re going to do but, as I have pointed out before –
missing the first 100% move up in the Zimbabwe Stock Exchange wasn’t a big
deal since it was followed by moves of 1,000%, 1,000,000%, 1,000,000,000% and
1,000,000,000,000% before the markets finally calmed down. On the other hand,
people who participated in Brazil’s 100% run in 8 months that began in October of
2007 found themselves right back where they started just 4 months later.
We participated 100% bullishly since our June 26th Buy List, which was followed
by July 7th’s "9 Fabulous Dow Plays Plus a Chip Shot," July 26th's "Turning $10K
to $50K by Jan 21st" (halfway there), August 29th’s "Defending Your Portfolio
With Dividends" and September 3rd’s "September’s Dozen." That’s how we
played the rally from S&P 1,030 to 1,160 (10%).
On October 3rd, I put up "October’s Overbought Eight" and they were AMZN,
BIDU, CMG, FSLR, MOS, NFLX, PCLN and TLT. Needless to say, we got stopped
out of most of those pretty quickly and that led to a Q4 version of "Defending
Your Portfolio With Dividends" on October 23rd (S&P 1,180) and we rode those
out through December 11th, when we got tired of waiting for a correction and (at
S&P 1,240) went with "Breakout Defense – 5,000% in 5 Trades or Less" and those
were followed with December 25th’s (S&P 1,256) "Secret Santa’s Inflation Hedges
for 2011" also with a few trades aimed at making around 500% should the rally
continue.
So why is it, with only one bearish Member Portfolio in 7 months, that I feel like I
might be too bearish? Well, for one thing – I’m getting lonely. I work on the Web
and my colleagues in the MSM and the Blogosphere have pretty much all found
religion and developed an almost unshakable faith in The Bernank, in China, in
Corporate America, in Commodities – you name it, they think it can’t go wrong.
So much so that the VIX, which measures the market’s expectation of stock
market volatility over the next 30 day period, has dropped all the way to 16.
Now 16 isn’t "low" for the VIX, it’s actually about the historic average. It is,
however a far cry from 89 in 2008 and 48 as recently as May and if you tell me I
now have less to worry about today than I did in 2007 when we were still in the
middle of a major rally and 60% of investors were bullish and the VIX was in the
mid-20s, I have to ask you why? 10% more people are unemployed than in 2007,
the World is $18Tn more in debt than it was then, Inflation has tripled (although
you can argue that playing inflation IS the bullish premise), Global GDP
projections are 1/2 of what they were, Banks are unstable, States are unstable
and Nations are unstable yet I am supposed to buy Netflix (NFLX) (we are short)
with a p/e multiple of 71.50 or AMZN with a p/e of 74.50 (we want to be short)
based primarily on my faith that the Great Bernanke in the sky would not let
anything bad happen to my investments?
Well sorry, call me an atheist, call it blasphemy, but I do not have 100% faith in
the Great Bernanke in the sky. I may have had 60% faith and I may have even had
70% faith but I DO NOT have 87% faith that Bernanke will overcome all those
MASSIVE, SCARY, DANGEROUS Global obstacles that are still littering the
investing landscape and take us to the promised land of S&P 1,500. Does that
make me bearish or sensibly cautious? When 87% of the market is bullish, then
sensibly cautious looks a lot like bearish, doesn’t it?
Perhaps that’s why people like the right Reverend Jim Cramer and his Cult of the
MoMo Stocks irritate me lately. That man has FAITH! Well, either faith or he’s
being paid off by fund managers to pimp their stocks so they can dump them on
Jimmy’s fanatical followers while they pick up whatever he’s chasing people out
of on the cheap – it’s hard to tell….
I was the lone bullish preacher in the wilderness in March of 2009 so I have seen
the promised land of recovery and, unlike Dr. King, who said "I may not get there
with you" and was, unfortunately, right, I fully intend to get there and I want us all
to get there with our portfolios intact so we will continue to hedge the market
following the sound policy advocated by Ronald Reagan when dealing with the
Russians, which was: "Trust — but verify."
I pointed out on the first trading day of 2011 that we expected January to be
heavily manipulated right up to expiration. Assuming Lloyd and Co. were lazy and
using the same Alpha 2 Bot program they ran last January, we were looking for a
300 point run that tops out at 11,850 on the Dow and 1,285 on the S&P and we hit
goal on the S&P yesterday, to the penny of where I said we’d be on Jan 3rd –
trusted and verified. Now we will see how the next 7 market sessions play out into
expiration day. If we pop higher – we’re off the pattern and we’ll have to consider
leaving the 13%, shouting hallelujah and joining the crowd but, if we flatline or fail
to hold – then you can expect the first Member Portfolio of 2011 to be a bearish
one!’
Jobless claims jump, wholesale food costs surge Reuters | U.S. jobless claims
jumped to their highest level since October last week while food and energy
costs lifted producer prices in December.
S&P, Moody’s Warn On U.S. Credit Rating Two leading credit rating companies
have cautioned the U.S. on its credit rating, expressing concern over a
deteriorating fiscal situation that they say needs correction.
‘Burst banks flood world as banksters sell water to people’ Max Keiser looks at all
the scandal behind the financial news headlines.
Corporate Media Portrays Loughner as Gold and Silver Advocate Chadwick

Matlin, a guest contributor writing for Reuters, attempts to connect Jared
Lee Loughner to the growing movement for sound money in the United
States.
The Looming Threat of National Debt As the United States hurtles closer to the
100% debt to GDP mark—95.5% as of today—it becomes important to
assess whether unsustainable national debt will be a chronic problem to
plague the United States for generations to come.
National / World
Rand Paul: Reaction To Arizona Shooting Manufactured Out Of Rahm Emanuel

Playbook Steve Watson | A serious crisis should never be allowed to go to
waste.
The Tea Party Deception Paul Joseph Watson | Political scientist Joel Skousen
lifts the lid on the hidden power that controls both parties.
Oklahoma Homeland Security’s Says ‘Controversial Debate’ Suspicious Behavior

Jason Douglass | Oklahoma Office of Homeland Security has started a new
initiative ‘Red Dirt Ready’ to induct neighbors into a neighborhood spy
program.
Attempt by Obama Operatives to Turn Memorial Into Political Rally Backfires Kurt
Nimmo | The creepy zombie-like Obama supporters we endured during the
election returned in force and completely overshadowed any solemnity
intended for the dead.
‘Stop. Think. Connect’ DHS Announces New Fear Agenda Jason Douglass | Cyber
Security Coordinator announces a new PSA video challenge from
Department of Homeland Security for the ‘Stop. Think. Connect’ campaign.
Rand Paul: Reaction To Arizona Shooting Manufactured Out Of Rahm Emanuel

Playbook Kentucky Senator Rand Paul has hit out at politicians and those in
the media that have attempted to use the tragic shooting in Arizona as a
political point scoring exercise.
See Something, Say Something: Loughner Bought Bullets at Walmart In

December of last year, DHS boss Janet Napolitano announced a government
program with the participation of the slave goods trader Walmart to report
terrorists and other miscreants.
Attempt by Obama Operatives to Turn Memorial Into Political Rally Backfires On

Wednesday night in Tucson, Arizona, Obama and the Democrats
disrespected the dead and turned a memorial into a cheap and tawdry
political rally for the re-election campaign of Barry Obama.
Third gun control bill proposed since Tucson shootings High-profile gun violence
has historically renewed legislative interest in the cause of gun control, and
the shootings of twenty people in Tucson, Arizona is no exception — only
this time, the measures face steeper hurdles than before.
The Tea Party Deception Joel Skousen, editor of World Affairs Brief, was the
chairman of the Conservative National Committee in the 1980′s. In this
exclusive video interview for Prison Planet.tv members, Skousen talks about
the hidden power structure that controls politicians of both parties from
behind the scenes, the nature of the manipulated press, the reality behind
the tea party, and the ongoing conspiracy to create a one world dictatorship.
Political Hacks Still Seek To Exploit Shootings Before Bodies Are Buried Even a
broken clock is right twice a day, and just for a change President Obama got
was correct in his speech last night when he said that people should stop
exploiting the Tucson tragedy as a political opportunity to point the finger.
New Jersey Congressman Calls for Federal Reserve Audit [ They should audit
corrupt, mob infested jersey as well. ] Recently while visiting Washington
D.C., members of the South New Jersey Tyranny Response Team had the
opportunity to interview the Congressman for New Jersey’s 2nd District,
Frank A. LoBiondo.
Housing Slump Worse than the Great Depression The Zillow Home Value Index
has now fallen 26% since its peak in June 2006. That’s more than the 25.9%
decline in the Depression-era years between 1928 and 1933.
Mexico drug wars have killed 35,000 people in four years A total of 34,612
people have died in drug-related killings in Mexico in the four years since
President Felipe Calderón declared an offensive against cartels shortly after
taking office, officials said tonight.
Riots rage in Chile as gas price hike fuels flames of anger Riots are raging in
southern Chile with two women killed and four others injured. Protesters are
out in anger at gas price increases, which are reportedly due to troubles
experienced by the state-owned petroleum company. 21 people have been
arrested. With gas one of the country’s main imports, the price rise counters
promises made by the country’s President Pinera.
US military chief predicts ‘more violence’ in Afghanistan in 2011 The top US

military officer said Wednesday he sees an increase in bloodshed in
Afghanistan as allied forces step up their offensive against the Taliban.
New Chinese arms aimed at US: military chief China’s new weapons programs,
including the J-20 stealth aircraft, appear to be directed against the
UnitedStates, the highest-ranking USmilitary officer said Wednesday.
Drudgereport: Jobless Claims Jump, Wholesale Food Costs Surge...

EYES ON OPEC AS OIL NEARS $100
House set to vote on healthcare repeal...
Tunisian Rioters Overwhelm Police Near Capital...
FT: What chance a US default?
S&P, MOODY'S Warn On Credit Rating...
CITI still too big after 'ad hoc' bailout...
WILL THE FED NEED A BAILOUT?
Banks repossess 1 million homes in 2010...
May Jump 20% in 2011...
Biden arrives in Baghdad 'to celebrate'... Lobotomy Joe’s arrival as
Violence kills 3, wounds 14...
Wrestling Coach Put on Leave for Insulting Obama, Challenging Him to
Fight...
Politician Wants License Plates -- For Bikes…
School Hands Out Misdemeanor Tickets To Elementary School Students...
[Data shows the tickets can cost a family as much as $500. ]
81-Year-Old Woman Bodyslammed, Mugged Inside NYC Subway Station --
By Another Woman...
CHICAGOLAND: Gang rape of girl, 14, recorded on cellphone...
Contours of a large and lasting American presence in Iraq starting to take shape
(Washington Post) [ Wow! Sounds like a plan … though hardly embraced by
all; viz; the vast majorities in Iraq, Afghanistan, and defacto bankrupt
america are against this with dire prospective consequences to follow. U.S.
Promises to be in Afghanistan Beyond 2014 [ Defacto bankrupt america can
afford it! Riiiiight! Sounds like a plan … for enhanced heroin production, war
profiteering, etc., benefiting the few to the detriment of the many. ]New York
Times | Biden met with Karzai and promised a lasting American commitment
to the country well beyond 2014, when NATO forces are scheduled to turn
over security of the nation to Afghan forces. ]
Treasury secretary urges China to accelerate currency reform (Washington Post)

[ Riiiiight! Well that sounds like something the Chinese will buy into, coming
from defacto bankrupt america … sounds like a plan … for fantasyland! ]
Beijing’s policy is hampering U.S. competitiveness and harming the Chinese
economy, Geithner says.
Economic recovery is on track (Washington Post) [ What? That (as per fed) no-
recession recession (depression) thing’s over. Certainly for the frauds on
wall street who caused the thing in the first place that’s true with the new
bubble and at what now insurmountable cost (record $14 trillion plus debt –
Faber: US will be using 30% of total tax revenues just to pay interest on the
national debt within a few years … see, infra … )Fed's beige book reports
gains in manufacturing and retail sectors. Housing industry remains weak.
E.U. seeks to expand bailout fund to calm markets (Washington Post) [Nyaradi
The Sick Man Tries to Save the Terminally Ill ( I can’t recall the specific phrase,
but applied here it goes something like this, ‘Japan with a debt to GDP ratio of
200% is going to save Europe, but who’s going to save Japan’. Let’s get real here
as the u.s. house-building with decks, as in Titanics and reshuffled / rearranged
deck chairs, of cards, as in ‘houses of cards’, becomes insanely ubiquitous
worldwide and will systemically (now globally) end quite badly. This is an
especially great opportunity to sell / take profits since there is much, much worse
to come. ) Nyaradi ‘It was a quiet day yesterday for ETFs and stocks in world
markets as most exchange traded funds recovered recent losses amid reduced
tensions in Europe.Incredibly, Japan’s intent to buy European bonds was the
catalyst for the more positive atmosphere in Europe, and as the title of this article
suggests, this is truly the sick man trying to save the terminally ill…see infra… ’ ]
Nations expand the scope of the euro-zone bailout fund, saying more support is
necessary as investors worry about the prospects of Portugal and Spain.
The Sick Man Tries to Save the Terminally Ill [ I can’t recall the specific phrase,
but applied here it goes something like this, ‘Japan with a debt to GDP ratio of
200% is going to save Europe, but who’s going to save Japan’. Let’s get real here
as the u.s. house-building with decks, as in Titanics and reshuffled / rearranged
deck chairs, of cards, as in ‘houses of cards’, becomes insanely ubiquitous
worldwide and will systemically (now globally) end quite badly. This is an
especially great opportunity to sell / take profits since there is much, much worse
to come. ] Nyaradi ‘It was a quiet day yesterday for ETFs and stocks in world
markets as most exchange traded funds recovered recent losses amid reduced
tensions in Europe.
Incredibly, Japan’s intent to buy European bonds was the catalyst for the more
positive atmosphere in Europe, and as the title of this article suggests, this is
truly the sick man trying to save the terminally ill.
The soap opera in Europe, like every soap opera, is getting boring. It starts with
rising interest rates and credit default swap rates which is met by the concerned
government proclaiming that they’re totally solvent and will never need a bailout
which ends up to be exactly what happens.
Portugal will be selling 10 year notes today, Wednesday, and its ten year debt has
stood largely above 7% in recent days. When rates in Greece and Ireland hit these
levels, bailouts came within days in both cases. Italy and Spain go to the bond
trough this week, as well, and so it will be an active few days in Europe.
Bottom line; get ready for an ECB bailout of Portugal coming soon, possibly this
week.
At home, we move into earnings season, Illinois is moving towards an income tax
increase to deal with its budget deficit while Governor Brown in California begins
to sell his austerity plans.
Daily Moves for Major ETFs:
Dow Jones Industrials: (NYSEArca: DIA) +0.30%
Russell 2000: (NYSEArca: IWM) -0.47%
NASDAQ 100: (NasdaqGM: QQQQ) +0.41%
S&P 500 Index: (NYSEArca: SPY) +0.37%
MSCI Emerging Markets:(NYSEArca: EEM) +1.06%
MSCI China (NYSEArca: FXI) +1.13%
Gold (NYSEArca: GLD) +0.59%
7-10 Year Treasuries: (NYSEArca: IEF) -0.39%
20+ Year Treasuries: (NYSEArca: TLT) -0.56%
VIX -3.71%
U.S. Dollar (NYSE:Arca: (NYSE:Arca: UUP) -0.08%
The major indexes remain overvalued and overbought on a technical and

fundamental basis and so Wall Street Sector Selector remains in “Yellow Flag”
status, expecting choppy to lower prices ahead.’
Lunch with Marc Faber: Predictions and Insights Sinn – ‘Tuesday I had the
pleasure of meeting Marc Faber for the first time and I thoroughly enjoyed his
detailed, logical, and smooth-flowing presentation. Faber is good on television,
but he is much better live as he is more open with regard to his disdain for
Bernanke, Greenspan, Krugman et al. He even ended the Q&A portion by saying ‘I
hope you have a better idea of what to do with your wealth, but what you do with
your client’s wealth is another story’. Below I have listed the main concepts that
Faber’s presentation impressed on my thinking:
Key takeaways from Marc Faber Luncheon- January 11, 2011
The Eurozone is worse off than even the U.S. at this point because they lack a
single fiscal authority. It is difficult to implement a federal/super-sovereign
approach in the Eurozone due to challenge of implementing a single taxing
authority with supervisory and enforcement powers.
When asked about the possibility of dividing the Eurozone into a north and south
euro, he dismissed this idea as being very unlikely.
The most likely path forward for the Eurozone will be for the ECB to continue to
monetize the sovereign debt of the weaker Member States. He also stressed the
point that the ultimate solution will be highly political and unpredictable and that
there will be plenty of ‘noise’ on the way to the final outcome.
Faber is concerned about a slowdown in China and India over the next 3-6
months. China currently has negative real interest rates and may need to raise
rates over 100 basis points in order to bring the real interest rate back near zero.
He also mentioned that he had recently reduced his investment exposure to
China and India.
Faber seemed most bullish on the price of oil and pointed out that Chinese
consumers consume only 2 barrels of oil per capita/year while US consumers
consume over 20 barrels of oil per capita/year.
Faber pointed out how under leveraged Asian consumers are compared to
Western European/ US consumers. He cited that only 10% of Vietnamese have a
bank account which demonstrates how much room there is for leveraging in Asia.
·He was VERY bearish on U.S. government debt long term and even pointed to a
chart of US 10-year note yields over the past 60 years. He then waved the laser
pointer to indicate that yields will eventually go past the early 1980s highs.
·He illustrated the performance of Mexican government bonds and the peso
currency from the late 1970s to 1988. The peso lost 98% of its value vs. the US
dollar and Mexican bonds performed horribly while Mexican equities priced in US
dollars ended the 10-year period slightly positive.
Finally, Faber pointed out that there is potential for geopolitical tensions between
China and India as they compete for natural resources (oil, water). He pointed out
that China and India share the Brahmaputra River. There has been continued
speculation that China plans to build a dam on the river in order to divert water to
the North of the country (Doug Kass also mentioned the possibility of a military
conflict between China and India over this river in his year end predictions for
2011). In addition, Faber explained that China isn’t happy about the US
recommendation that India join the UN Security Council.
Oddly enough, I agree with almost everything Dr. Faber discussed. However, I
doubt that gold will undergo a 20% correction this year (I would say 10-15% is the
maximum unless there were to be a complete paradigm shift in monetary policy
from the ECB/Fed). The crowd was most amused by Dr. Faber’s disdainful
comments about Messieurs Bernanke, Greenspan, and Krugman.
While I agree with the latter two, I believe Chairman Bernanke is doing the only
thing he can do with the terrible hand he has been dealt. I also believe the
possibility of a military confrontation between China and India is extremely
remote due to the potential magnitude of the consequences. Dr. Faber managed
to cause me to be even more concerned about the state of the US fiscal situation
than I already was. I didn’t think that was possible, but when he explained the US
would be using 30% of total tax revenues just to pay interest on the national debt
within a few years, I realized the situation was more serious than even I had
realized. Disclosure: I am long GLD.’
Cupcake Capitalism Offers Hope for New Bubble: Jonathan Weil Weil ‘The first
thing every prospective investor should know about Crumbs Holdings LLC,
which operates 34 cupcake shops, is that there was an error in the first sentence
of its Jan. 10 press release announcing the New York retailer’s planned public
listing on the Nasdaq Stock Market.
Crumbs called itself the “creator of the gourmet cupcake.” The claim is false.
Crumbs didn’t create the gourmet cupcake. I did, or at least that’s how I choose
to remember it.
It was a glorious Sunday morning in October 1976. I was six years old. My mom
helped me follow the instructions on a box of Duncan Hines cake mix. I added
Frosted Flakes to the icing, spread the sugary goo on top of my creations, and
dubbed them Jonny’s Chocolate Crunchcakes. They were Gr-r-reat!
Crumbs executives say they plan to expand to 200 locations within four years, a
sixfold increase. They’ll have no need for a traditional initial public offering,
though. Crumbs plans to do a reverse merger with a publicly traded shell
company called 57th Street General Acquisition Corp.
It’s easy to dismiss the cupcake craze’s arrival on Wall Street as just another
indicator of a world gone mad, because it is. Yet there’s a serious point here, too.
This may be one of the most hopeful signs in a long time that the economic
boom-to- bust cycle may be returning to boom again.
Think about it. Would a chain of stores selling outsourced $4.50 cupcakes have
stood a chance at luring stock-market investors three years ago, when the
banking crisis was driving the world into a global recession? No way. Yet now the
red velvet carpet is out for the likes of Crumbs Bake Shop. The opportunities for
other entrepreneurs seem endless.
Master Plan
Before long, sophisticated investors may once again line up to throw money at
sure-fire concepts like iron-on T-shirts and collectible plush toys. This must be
good news, whether you’re a central banker or a maxed-out office worker buying
a caramel apple on credit. It’s evidence that our global economic leaders’ master
plan is working. That would be to spend our way out of the last bubble’s
wreckage with money we don’t have, until we can create a new bubble to wealth-
effect our troubles away.
To be sure, the news from Crumbs doesn’t signal an actual bubble, only the
promise of one. But it does tempt us to consider that there may be real bubbles,
even monstrous ones, soon. To accomplish this, we’ll need the titans of industry
and finance to remain united in pressing for the common good. And there’s
positive news on this front.
Remorse-Free Zone
This week Barclays Plc’s chief executive, Robert Diamond, told British
parliamentarians it’s time for banks to stop apologizing and start rebuilding
confidence. “There was a period of remorse and apology for banks. That period
needs to be over,” he told a House of Commons committee in London.
When this period of remorse supposedly occurred, I’m not sure. What matters,
though, is that the world now appears to be coming around to Diamond’s way of
thinking, which is that we must all agree to be confident.
Similarly, last week President Barack Obama picked a top JPMorgan Chase & Co.
banker and former Fannie Mae board member, William Daley, to be his new chief
of staff. Amazingly, hardly anyone complained. It seems Americans are too busy
trying to figure out how to buy pre-IPO shares of Facebook and Twitter. Distrust
of Wall Street is so 2009.
You also can see the seeds of this new era in our corporate leaders’ math. The
same day Crumbs said it would go public, Groupon Inc., which claims to have
been called “the fastest growing company ever” by Forbes magazine, issued a
press release under this headline: “Groupon Raises, Like, A Billion Dollars.”
Actually the amount was $950 million. But we can all agree that a billion grabs
more attention.
All of which shows there’s hope for the world’s economy to return quickly to
rapid growth, as long as we work together to figure out how we can get in all
these new bubbles and sell at just the right time, before everyone else figures out
when that is. Then we can be rich again. That is, until the next bust, by which time
we’ll have moved on to even bigger booms.
All we have to do is believe. Jonathan Weil is a Bloomberg News columnist. The

opinions expressed are his own.) To contact the writer of this column: Jonathan
Weil in New York at jweil6@bloomberg.net ‘
Bernanke to Broke States: Go Suck an Egg Infowars.com | Trillions for

international banksters, nothing for the states.
Could the U.S. central bank go broke? Reuters | The U.S. Federal Reserve’s
journey to the outer limits of monetary policy is raising concerns about how
hard it will be to withdraw trillions of dollars in stimulus from the banking
system when the time is right.
Gold prices at record amid reports of dollar’s demise Guardian.co.uk | Reports of

secret talks over ending the dollar pricing of oil and money flows into
commodities as fears of inflation grow.
Sanders Says Bernanke Ducks Request for Details on Fed Loans Vermont
Senator Bernard Sanders, whose legislative provision forced the Federal
Reserve to disclose last month the recipients of $3.3 trillion in financial-
crisis aid, said Chairman Ben S. Bernanke ducked his request for more
details about the loans.
Home price drops exceed Great Depression Home prices fell for the 53rd
consecutive month in November, taking the decline past that of the Great
Depression for the first time in the prolonged housing slump, according to
Zillow.
Downturn’s Ugly Trademark: Steep, Lasting Drop in Wages In California, former

auto worker Maria Gregg was out of work five months last year before
landing a new job—at a nearly 20% pay cut.
Primary Dealers Leech Off Fed’s Currency Destruction While Estonia is burning
its currency to keep warm and celebrate joining the Euro, the United States
is defiling its currency in a wholly American way—by giving it to Wall Street.
National / World
Corporate Media Portrays Loughner as Gold and Silver Advocate Kurt Nimmo |
Loughner’s irrational currency ramblings offer the establishment a chance
to tarnish a growing movement calling for the elimination of the Federal
Reserve.
Arizona Shooter Was On Powerful Hallucinogens Steve Watson | Friend says “He
would admit to seeing the sky as orange and the grass as blue”.
Welcome To The Reservation Paul Joseph Watson | American Indian activist

Russell Means explains how history has come full circle.
Was Loughner In Love With Congresswoman Giffords? Paul Joseph Watson |

Gunman’s disinterest in politics fails to explain dangerous obsession that
began several years ago.
Palin: “When was it less heated? Back in those “calm days” when political
figures literally settled their differences with dueling pistols?” Sarah Palin |
President Reagan said, “We must reject the idea that every time a law’s
broken, society is guilty rather than the lawbreaker. It is time to restore the
American precept that each individual is accountable for his actions.”
Arizona Shooter Was On Powerful Hallucinogens As with practically every other

high profile shooting case in recent memory, it appears that the suspect was
using psychotropic drugs, substances that significantly alter areas of the
brain associated with perception, mood, consciousness, cognition, and
behavior.
Was Loughner In Love With Congresswoman Giffords? Now that the contrived
idea that heated political rhetoric from conservatives has been rejected as a
motivation behind Jared Lee Loughner’s tragic rampage in which
Congresswoman Gabrielle Giffords was targeted, Loughner’s documented
obsession with Giffords indicates that he may have been infatuated with the
Arizona Democrat.
Welcome To The Reservation American Indian Russell Means gives an eye-

opening 90 minute interview in which he explains how Native Americans and
Americans in general are all imprisoned within one huge reservation. “The
history of the American and the history of the Indian have now come full
circle and are intertwined in the dictatorial policies of those that control the
monetary system of America,” remarks Means.
He did not watch TV. He disliked the news. He didn’t listen to political radio
Regarding the high-pitched talk radio and cable news political rhetoric, Osler
says his friend didn’t even watch the news.
Officers stopped suspect on day of Ariz. shooting; Police Say They Visited
Tucson Suspect’s Home Even Before Rampage TUCSON — The police were
sent to the home where Jared L. Loughner lived with his family on more than
one occasion before the attack here on Saturday that left a congresswoman
fighting for her life and six others dead, the Pima County Sheriff’s
Department said on Tuesday.
Arizona Shooting Suspect Wrote `Die Bitch’ on Giffords Letter Jared Loughner,
accused of shooting U.S. Representative Gabrielle Giffords in the Tucson,
Arizona attack that killed six people and wounded 14, wrote “die b*****” and
“die cops” on a letter he received from the lawmaker in 2007, officials said.
U.S. Promises to be in Afghanistan Beyond 2014 [ Defacto bankrupt america can

over security of the nation to Afghan forces.
‘US behind instability in Lebanon’ Press TV | Iran’s ambassador to Beirut says

Washington’s interferences resulted in the failure of Saudi Arabian and
Syrian efforts to stabilize Lebanon.
China stealth jet upstages US defence chief’s visit US Defense Secretary Robert
Gates on Wednesday toured China’s nuclear command centre to end what
he called a “very successful” visit — one upstaged by a bold display of
Beijing’s advanced weaponry
Drudgereport: World moves closer to food price shock...

OIL NEARS $100...
Soaring commodities...
PALIN CALLS OUT MEDIA 'BLOOD LIBEL'...
VIDEO...
Death Threats at 'Unprecedented Level,' Aides Say...
ABCNEWS: She 'once again has found a way to become part of the story'...
CBSNEWS: 'Plays the victim card'...
NBCNEWS: 'Ignorant' for using 'blood libel' term...
Assange claims 'insurance' files on Rupert Murdoch; Says China Top Threat
to WIKILEAKS... ‘In this week's New Statesman, WikiLeaks founder Julian
Assange talks to John Pilger about Bradley Manning, his "insurance" files
on Rupert Murdoch and Newscorp - and which country is the real enemy of
WikiLeaks. To read the entire feature, pick up a copy of this week's New
Statesman available on newsstands from tomorrow. Some highlights of the
piece are below: The "technological enemy" of WikiLeaks is not the US - but
China, according to Assange. "China is the worst offender," when it comes
to censorship, says the controversial whistleblower. "China has aggressive
and sophisticated interception technology that places itself between every
reader inside China and every information source outside China. We've been
fighting a running battle to make sure we can get information through, and
there are now all sorts of ways Chinese readers can get on to our site." On
Bradley Manning - the US soldier accused of leaking the diplomatic cables to
WikiLeaks - Assange says: "I'd never heard his name before it was
published in the press." He argues that the US is trying to use Manning -
currently stuck in solitary confinement in the US - to build a case against the
WikiLeaks founder: "Cracking Bradley Manning is the first step," says the
Australian hacker. "The aim clearly is to break him and force a confession
that he somehow conspired with me to harm the national security of the
United States." Such conspiracy would be impossible, according to
Assange. "WikiLeaks technology was designed from the very beginning to
make sure that we never knew the identities or names of people sub¬mitting
material. We are as untraceable as we are uncensorable. That's the only way
to assure sources they are protected." Yesterday, Assange's lawyers warned
that if he is extradited to America, he could face the death penalty - for
embarrassing the leaders of the US government. "They don't want the public
to know these things and scapegoats must be found," says Assange. And
despite the pressure the website has been under, reports of trouble at
WikiLeaks are greatly exaggerated, claims Assange. "There is no 'fall'. We
have never published as much as we are now. WikiLeaks is now mirrored on
more than 2,000 websites. I can't keep track of the spin-off sites - those who
are doing their own WikiLeaks... If something happens to me or to
WikiLeaks, 'insurance' files will be released." The contents of these files are
unknown, but, according to Assange, "[t]hey speak more of the same truth
to power." It is not just government that should be worried about the content
of these files, however. "There are 504 US embassy cables on one
broadcasting organisation and there are cables on Murdoch and News
Corp," says Assange. The attempts by the US to indict Assange should
worrying the mainstream press, he adds. "I think what's emerging in the
mainstream media is the awareness that if I can be indicted, other journalists
can, too," says Assange. "Even the New York Times is worried. This used
not to be the case. If a whistleblower was prosecuted, publishers and
reporters were protected by the First Amendment, which journalists took for
granted. That's being lost."
Goldman Sachs self-eval calls for disclosure of operations (Washington Post)
[ Self-evaluation? Goldman-sachs? Don’t make me laugh! … Oh, right …
they don’t cheat, they just steal / defraud! ] Goldman is trying to turn the
page on a bad year (as in huge bonuses … that bad … riiiight!) .
Chinese military tests fighter jet ahead of Hu's meeting with Gates
(Washington Post) [ China tests stealth aircraft before Gates, Hu meet (Post,
January 11, 2011; 6:12 PM) Chinese general to visit U.S. base in small sign
of thawing military ties (Post, January 12, 2011; 1:21 AM) Small sign of
thawing? Yeah, maybe … so small you’d need a electron microscope to see
it … as gates melted at the prospect of China’s latest new addition to their
defensive arsenal, which they can afford, as defacto bankrupt america
drowns in perpetual, contrived / self-created / self-destructive wars. ]
China's exchange reserves hit record level (Washington Post) [ Relations,

relationship, reserves. I’d say proportional … as in terms of, ie., rationality …
as in, ie., relative abundance; viz., China having substantially greater
reserves and rationality than irrationally, pervasively corrupt, meaningfully
lawless, perpetual war despite defacto bankrupt america. ] The thorniest
problem in economic relations between the United States and China is
getting worse, just as the world's two biggest economies prepare for a
summit next week in Washington.
Meyerson: Culture of paranoia (Washington Post) [ That ‘for us or again’ us’

dichotomy that flourished with unbridled enthusiasm and encouragement by
lesser brains typified by burnt out war criminal and moron dumbya bush &
co certainly gained traction with the bushlander failed regimes; but, truth be
told, to the surprise of many, the same mindless approach to all things
domestic and international has under wobama’s failed regime proved to be
the coup de grace, the ‘straw that broke the camel’s back, etc.. Indeed, the
continuation of the perpetual war policy despite the defacto bankruptcy of
the nation has made wobama’s failed presidency merely icing on what has
become the american upside down cake. From no pros of the frauds on wall
street to increased war spending and runaway deficits, wobama the ‘b’ for
b*** s*** has proven the more america ‘changes’ the more america stays the
same … in rate of decline, that is. Talk radio … all b*** s*** with a few
convenient facts interspersed for relevance. I’d say liberal talk radio is worse
in that if they’re not comin’ down hard on wobama (I presume they’re not),
then all their rhetoric in the bush years was hot air. And hot air is what they
are which is the reason d’etre for that little on/off switch which is all the
censorship that’s needed. That’s what I use for the blowhards … and it
works extremely well! ]
Four Financial Farces That Will End in Disaster Summers ‘At this point the news out
of the financial world is more insane than … well, just about anything.
Farce #1: Japan Can Bail Out Anything.
First off, Japan, which has a debt to GDP ratio of 200%, is bailing out Europe, which
has a smaller but equally disturbing debt problem. Yes, one broke country (Japan) is
now trying to bail out an entire economic union, despite the fact that it hasn't succeeded
in managing its own finances or economy in over 20 years.Indeed, the idea that Japan
could bail out anyone when it’s failed to create any substantial economic growth despite
spending trillions of yen should give you an idea of just how out of control the entire
financial system has become. We are literally in the end game now. Unless Martians
come down and start bailing out Earth, the Great Sovereign Default will be in full effect
within the next six months.
Farce #2: Inflation Is at 1%.
Meanwhile, Ben Bernanke claims that inflation in the U.S. is at 1%. President Obama
has to maintain that this is a fact with a straight face next week when he meets with
French President Nicolas Sarkozy, who is witnessing food riots in Algeria due to soaring
food prices.The Fed has claimed inflation is under control for months now, proving that
its members must not eat food, drive cars, or know how to read. Indeed, in order to
ignore rising prices in the U.S., you would literally have to not shop for groceries, not
pump gas into your car, not read the newspaper, and not have access to the Internet or
any financial news outlet.I sincerely hope that the Fed is not run by folks who fit this
description, but after reading the next two farces, I’m not so sure.
Farce #3: QE Is Working.

Various Fed officials have stepped forward to claim that its Quantitative Easing program
has worked. Correct me if I’m wrong, but I thought the whole purpose of QE was to
lower interest rates.How then do you explain the following? [chart]As you can see,
interest rates have soared since the Fed implemented QE 2. It’s not like QE has helped
the U.S. economy either; food stamp usage has hit new records since it began.And yet
the Fed claims that QE is not only working, but we need more of it. However, even that
farce pales compared to the next and final financial farce of today’s essay.
Farce #4: The Folks Managing the Fed’s QE Efforts Have No Investing
Experience.
Then, of course, there’s the recent revelation that the Fed’s monetary policies involving
the purchasing of trillions of U.S. Treasuries are in the hands of folks aged 26, 29, and
34, none of whom have any investing experience whatsoever.And they’re in charge of
buying up trillions in U.S. debt.If, at this point, it’s not clear that the entire financial
system is not a disaster waiting to happen, then I don’t know what else to say. Indeed,
our entire system is built on fraud and managed by folks who don’t know what they’re
doing. And if you think they’ll steer us to safety, consider that around the globe we’re
already beginning to see signs of systemic collapse.Indeed, I believe we are in fact on
the verge of another round of deflation which will take prices down across the board as
the U.S. dollar rallies. However, this period will be short-lived as it will be followed by a
U.S. dollar collapse soon after.At that point, the next stage is the paper currency
collapse, the stage at which inflation accelerates as the U.S. dollar collapses, destroying
purchasing power while inflation hedges explode higher.Some, like the most popular
picks (gold and silver bullion), will record strong gains. However, others (the ones that
99.9% of the investment world are currently clueless about), will go absolutely
parabolic.’
Volume Still Incredibly Weak: Dave's Daily - ‘Words fail me frankly, but I'll attempt
a posting here knowing volume remains incredibly weak as markets are
supported primarily by Ben's POMO activities. As the Fed was buying 5-year
bonds, the Treasury was selling 3-year notes--um, left hand, right hand. Markets
did get a boost early by an upgrade of HPQ by UBS combined with easing
tensions in the habitually troubled euro zone. To the latter, the Japanese said
they'd be buyers of euro zone debt to show support for the region. Trouble is, will
the EU reciprocate? Alcoa's earnings report, complex as always, was greeted by
some selling. Verizon announced it would feature the iPhone which led to some
light selling of VZ and AAPL--such is the level of conviction currently…’
Janney Technical Analyst Sees 3-5% Correction In S&P 500 'Looming' Coleman
‘Janney Capital Markets’ technical analyst Dan Wantrobski sent a note to clients
Tuesday afternoon saying that he’s moved into the bear’s camp.A 3-5%
correction on the S&P 500 index is “looming,” he added, with the first stop being
the benchmark’s 50-day moving average.The S&P 500’s 50-day moving average,
an often-mentioned short-term indicator, is currently sitting at 1228, says the
analyst.
His main points include:
• Major technical indicators are not only sending signals of being

overbought, but key metrics are already starting to “roll-over.”
• Few bears can be found as main street investors move off the sidelines
from fixed income to equities.
• Recent margin interest on the NYSE shows a large two-month spike. That
suggests, according to Wantrobski, more investors are “leveraging up.”
• Small - and midcap indexes both have made lower ‘lows’ and higher
‘highs’ in the past few days as the large-cap focused S&P 500 tested the
1276-1278 range. “We think this is a sign of breadth deterioration,”
Wantrobski wrote.
• The ‘fear index’ measuring volatility moves of futures tracking the S&P 500,
or the VIX, appears oversold.
“The VIX has hit levels that in the past two years accompanied corrections in the
market. True, the VIX could actually breakdown and head even lower from here-
but if it holds support at 15 (currently it’s 17.06), it would suggestive of a market
turn, in our opinion,” Wantrobski wrote.
The worst positioned sectors, he finds, are (with a representative ETF): Retail
(XRT), Consumer Staples (XLP), Telecom (IYZ) and Gold (GLD).Of course, a close
proxy for the blue chip benchmark is the SPDR S&P 500 (SPY).’
Sam Stovall: Extreme Bullishness a Concern - Stocks Will Probably Correct Levy
‘Sam Stovall is chief investment strategist at Standard & Poor’s Equity Research as well
as the author of The Seven Rules of Wall Street and the column Stovall's Sector Watch,
a page on Spoutlook.com.
Harlan Levy: How do you rate the jobs situation, and what are the implications for this
year?
Sam Stovall: I was disappointed from a payroll perspective but was encouraged from
an unemployment rate standpoint. What’s more I was encouraged to see a decline in
the number of the underemployed, because it implies that the drop in the unemployment
rate was not due to job seekers giving up in frustration.
However, the jobs situation is still the biggest impediment to the stock market’s
performance in 2011. S&P Chief Econoist David Wyss continues to believe that
unemployment will likely remain above 9 percent for all of 2011 and that this will remain
a jobless economic and stock market recovery.
If, however, we find that the payroll picture improves more rapidly than anticipated, we
believe the upward trajectory in economic and market performance will accelerate.
H.L.: The level of investor optimism about the stock market seems extreme these days.
How bullish are you on stocks?
S.S.: I do think that the extreme level of investor optimism is something to be concerned
about in the near term, but it does not stop me from being optimistic for the longer term.
The recent spate of better-than-expected economic reports combined with the still
strong forecasted increase in earnings supports the seasonal tendency for the S&P 500
to be strong in both the January and the first-quarter of a president’s third year in office.
That said, the stock market usually gives investors a second opportunity to get back in
at lower prices. By that I mean since World War II 89 percent of the time the S&P 500
has been lower at some point in the new year as compared with the closing level of the
prior year. Of course, past performance is no guarantee of future results, and this year’s
market action might fail to take a breather, but I doubt it. So I don’t think it’s wise to be
chasing returns right now, because nearly nine times out of every 10 the market in the
new year trades about 9 percent below the closing level of the prior year.
H.L.: Has the stock market priced in the massive debts of the states and cities and
towns?
S.S.: That’s a very good question. I’m not really sure. The market seems to go back and
forth between fear and complacency as it relates to debt on a variety of levels, be it
sovereign, state, local, or personal. When it comes to the states’ debts, they’re facing
monumental obligations that they may have a very hard time fulfilling. California is
certainly substantially larger than the economies of Greece and Ireland, and if you add
Illinois to the equation, there would be substantial reason to be worried should these
states default on their obligations.
Based on the absence of meaningful discussion of a potential default, that leads me to

believe that the market does not expect default to be a likely outcome. I’m worried that
we’re putting it on the back burner, but it’s obviously not affecting the market. It’s the
outlook of the bears versus the outlook of the bulls. Bears focus on structural problems ,
things that take years to materialize, whereas bulls tend to look at nearer term events
and basically say the trend is my friend until it ends. Chances are the bears will
eventually be proved correct, but people ignore the bears because it takes so long. By
then a lot of people have just stopped listening. I don’t know that they should not be
ignoring it. The market tends to evaluate everything and attempts to put it in
perspective. Sometimes they’re wrong -- like when it came to housing and the financial
crisis -- and they might be ignoring it currently at their own peril later on.
That’s why I always think it’s wise to use both fundamental and technical analysis, since
fundamentals tell you what and technicals tell you when. Right now the fundamentals
are positive from a mainstream Gross Domestic Product perspective as well as a
corporate earnings standpoint, but there are a lot of potential pitfalls from housing,
unemployment, and debt that may yet materialize. Technically speaking, however, the
trend is still our friend and implies further upside. Should these worries be moved from
the back burner to the front burner once again, the charts will likely give us advanced
warning.
H.L.: What sectors of the economy look healthy and which don’t?
S.S.: All sectors of the S&P 500 are expected to post positive year-over year results in
the fourth quarter of 2010 as well as the full year of 2010 and in 2011. The strongest
earnings increases in 2011 are likely to be seen in the cyclical areas of the economy,
such as industrials, technology, energy, and materials.
The defensive areas, which are also typically slow-growth areas, are likely to be just
that, the laggards in corporate profit growth this year.
H.L.: Will the dollar stay strong, and if so is that bad for stocks, the way it recently has
been?
S.S.: The dollar may decline from a technical perspective in the near term as it
undulates between support and resistance, yet should the U.S. economy continue to
improve and interest rates gradually work their way higher, that would likely cause the
dollar to remain firm rather than force it into a renewed downward direction. It’s neither
good nor bad, because investors will look at the firmer dollar as a confirmation that our
economy is improving.
H.L.: Now that the Republicans are in control of the House of Representatives, will their
promises of massive spending cuts and elimination of business regulations end up
killing the recovery?
S.S.: We believe that because the Democrats still control the Senate that we probably
won’t see the steamrolling effect of the Republican-controlled House and its impact on
spending cuts that people worry about materializing in 2011. They will still have to get a
buy-in from the Democrats. So it may curtail increased spending, but it probably won’t
lead to draconian spending cuts.’
The Three Biggest Risks in Today's Market Leeb ‘Last week I sat down with some
fellow market players for an extended conversation about the opportunities and
risks investors face today. The most productive questions we asked ourselves
were “What could go wrong in 2011 and beyond?” and “What can we do about
it?” Of the many possible disasters that emerged, here are my top three
candidates.
• RISK #1: GERMANY AND THE EURO. Germany is the strongest economy
within Europe at the moment. Ironically, it's also the nation that would
suffer the worst from any break-up of either the EU or the euro.
This is more than just a case of “the bigger they are, the harder they fall.” We’ve
said before that Germany's greatest advantage today is its participation in the
euro. Having its currency tied to many smaller and weaker European nations
effectively gives Germany the most undervalued currency among developed
nations. In terms of the German economy, the euro is more undervalued than
even the Chinese yuan. Such a cheap currency gives Germany an edge in selling
exports to other nations.
Of course, whenever you take advantage of a situation, you become vulnerable to
any change in it. Germany has certainly taken advantage of the weak euro:
Exports now make up 40% of the German economy and virtually all of its growth
is export-driven.
If the euro were to break up, Germany would be forced to adopt a new currency
that would be valued fairly on the world stage. Its exports would plunge, sending
its economy into a deep recession. Such an event could provoke disharmony if
not separatist movements among the 16 states that make up the German
republic. (Let's recall that economic illness in Germany once led to the rise of
Hitler and World War II.) The risk is that a serious German recession could cause
a return of the pre-Bismarck era when competition among states made war
commonplace within Europe.
Equally worrying is Germany's trade balance with China. Before 2009, China was
the only significant country with which Germany ran a deficit. Now that deficit has
become a surplus, but the change is not a positive, since it is the result of
Germany's decision to sell high-tech goods to China.
As has happened before, China will likely seize upon the opportunity to re-
engineer Germany's technology, create its own high-tech product lines, and
export them at cheaper prices. Germany could then lose another big advantage.
Of course, neither of these potential events would be worse for Germany than the
break-up of the EU itself. We doubt this will happen, at least not for some time,
because it would take a policy mistake of gigantic proportions. The member
states have a strong motivation to keep the EU together and avoid the depression
that would surely follow. Nonetheless, mistakes have been made before.
• RISK #2: OIL. As we pointed out last week, rather than thinking about
whenthe world's oil will run out, we should instead think about when
supply/demand pressure forces prices to escalate. Looking at oil prices as
a function of demand, we see a curve that is notably convex. That is, every
small increase in demand or small drop in production leads to a sharply
higher oil price.
For instance, today we have a short-term interruption of the Trans-Alaskan oil
pipeline which affects less than 1% of the world's oil supply. Yet it has resulted in
a 1.5% jump in oil prices.
Any unexpected increase in oil demand from China or the other developing
nations, or another unexpected drop in production, could send oil prices to the
moon. It would be a replay of 2008, with an equally disastrous deflationary end.
We assume you are well enough off to withstand a jump in gasoline prices
without a serious decline in your lifestyle. However, there are millions of
Americans with incomes under $60,000 a year who could not tolerate $5 a gallon
gasoline without cutting back spending in other areas. Falling consumer
spending could spell curtains for the recovery.
• RISK #3: LOSS OF THE AMERICAN DREAM. Though we talk a lot about
China, it’s only because we love America and hate to see other nations
taking the right measures while our leaders fall behind in their duty.
Recently, two articles in the New York Times made us aware of yet another
area where the U.S. is missing the boat that China is catching.
The first article discussed how much easier it is for a young person to get into a
top U.S. college if one of their parents went there. In fact, the legacy advantage
gives people a 7X greater likelihood of admission.
We need not remind you that the American Dream was that anyone, regardless of
their background, could achieve success through hard work and/or natural talent.
It was the dream of creating a meritocracy, where the biggest rewards go to the
individuals who most deserve them. By contrast, the legacy advantage rewards
people for simply having the right parents. It is a step towards creating a
hereditary upper class, or a plutocracy – exactly the opposite of what America is
all about.
China, on the other hand, doles out opportunities to young people according to
how well they score on tests. The second NYT article, written by Nicholas Kristof,
discussed Hou Yifan, a 16-year-old Chinese girl from a poor background who is
now the top female chess player in the world. Hou's talent was supported by
training and financing from the Chinese government. Kristof's point, which we
agree with, is that China invests in talent, regardless of its origins.
China's government may not be democratic, but it is built upon the principles of a
meritocracy. It recruits and nurtures the brightest and the best. Consequently, Xi
Jinping, China's heir apparent to current leader Hu Jintao, started his career as a
farm laborer. His father was a poor tea trader who spent 16 years in prison for his
politics. (Offhand, we don't recall the last U.S. President who came from such
humble beginnings. Certainly, there have been very few since Andrew Jackson.)
Suffice it to say that fewer U.S. leaders today have come from poor backgrounds
than ever before - which suggests that many highly talented young people are
finding the doorway to the American Dream barred against them.
If the U.S. is to retain its standing in the world, we need to get our act together.
We need to make sure the best talent is nurtured and rewarded, not wasted. We
need to maintain leadership in vital technologies. We need to rethink political
correctness (that is, we need to embrace ideas that are true regardless whether
they serve vested interests).
As Defense Secretary Gates learned on his recent visit to China, the country has
the flexibility to expand its military while the U.S. is now looking at cutbacks.
China is also planning to spend $1.5 trillion on new high-tech industries that will
increase its energy supplies and efficiency. The only solution the U.S. seems
willing to consider is more offshore drilling. We must stop being so complacent.
Meanwhile, so long as we are looking at convex curves in not only oil prices but
also copper and other commodities, we will continue to invest for the next
exponential advance. Gold remains the safest long-term investment you can
make today as a hedge against deflation and inflation. Buy either gold stocks or
bullion ETFs.’
Could the U.S. central bank go broke? Reuters | The U.S. Federal Reserve’s
journey to the outer limits of monetary policy is raising concerns about how
hard it will be to withdraw trillions of dollars in stimulus from the banking
system when the time is right.
Fed’s bond-buying could soon backfire: Plosser The U.S. Federal Reserve’s
aggressive bond-buying plan could soon backfire unless the central bank
gradually changes course to head off inflation, a top Fed official known for
his hawkish stance said on Tuesday.
Toward Sensible Monetary Policy Last week the 112th Congress was sworn in. I
am pleased that I will be chairing the Monetary Policy Subcommittee of the
Financial Services Committee, which has oversight of the Federal Reserve.
Obviously, this position will facilitate my efforts to ensure the Fed provides
the American people with more information about what they have been
doing with and to our money
‘Not Owning Gold is a Form of Insanity’: Chartist Gold will eventually rally
exponentially and investors who don’t own the precious metal are “insane,”
and may be showing “masochistic tendencies,” Robin Griffiths, technical
strategist at Cazenove Capital, told CNBC.
Virginia Creates Subcommittee To Study Monetary Alternatives In Case Of

Terminal Fed “Breakdown”, Considers Gold As Option In what may one day
be heralded as the formal proposal that proverbially started it all, the
Commonwealth of Virginia introduced House Resolution No. 557 to establish
a joint subcommittee to “to study whether the Commonwealth should adopt
a currency to serve as an alternative to the currency distributed by the
Federal Reserve System in the event of a major breakdown of the Federal
Reserve System.”
Gold prices at record amid reports of dollar’s demise Guardian.co.uk | Reports of

secret talks over ending the dollar pricing of oil and money flows into
commodities as fears of inflation grow.
America’s housing bubble still deflating Guardian.co.uk| As they failed to spot the
bubble, most economists seem oblivious of the threat of further market falls
to come.
National / World
DHS Ties Arizona Attack to “Lone Wolf” Terrorism Kurt Nimmo | DHS and the FBI
sent bulletin to local law enforcement after Rep. Giffords and others were
shot in Arizona.
Liberal Media was Already Prepared for Violence in Tucson Matt Ryan | The
terrible shooting in Tucson, Arizona was the act of a 22-year-old that was
immediately profiled as a tea party member.
Another Mass Animal Die-off Jason Douglass | Thousand of gizzard shad dying
along the Chicago lakefront.
Gun Grabbing Congress Critters Come Out of Woodwork After Giffords Shooting
Kurt Nimmo | Statist gun-grabbers will not rest until the Second Amendment
is stricken from the Bill of Rights.
Tone Down The Rhetoric… Mr President The use of words and phrases like “take
aim”, “reload” and “shoot down”, despite their metaphorical intention, is to
blame for the random act of violence committed by one psychopath in
Arizona on Sunday, according to scores of frothing media hacks and
political lawmakers. If this is so why not highlight a speech given by then
presidential candidate Obama in 2008, in which he triumphantly stated “If
They Bring a Knife to the Fight, We Bring a Gun”?
WikiLeaks chief: Charge Palin, Huckabee with ‘incitements to kill’ The editor-in-
chief of WikiLeaks called on US authorities to seek charges against high-
profile Republicans Sarah Palin and Mike Huckabee for “incitements to kill”
by the use of “violent rhetoric” against the anti- secrecy outlet.
Arizona Sheriff Dever Says Killer Alone Is Responsible for Shooting; ‘Frightening’
to ‘Lay Blame on Anyone Else’s Doorstep’ Cochise County Sheriff Larry
Dever said he does not understand why his friend and colleague, Pima
County Sheriff Clarence Dupnik, would suggest at a news conference
following Saturday’s shooting in Tucson that political ideology played a role
in the tragedy.
Pima County Sheriff Dupnik Blamed Right Wing for Slaughter But Details Emerge
of Multiple Contacts between Jared Loughner and the Sheriffs office over
Multiple Death Threats Only the left can get away with pointing their bloody
fingers at everyone else.
Backup Communications System Was ‘Miraculously’ Switched on for ‘Exercise

Mode’ and Ready for Use on 9/11 [ It is also especially noteworthy that
NORAD was ordered to stand down that day! ] ]A special backup network
that allows communications between government and military agencies to
continue during emergencies was “miraculously” switched on the day
before 9/11, and so was already operational when the terrorist attacks in
New York and at the Pentagon took place.
Establishment Ignores Violent Rhetoric From Eco-Leftists While the
establishment has invoked the supposed threat of vitriolic “right-wing
rhetoric” as a tool with which to bludgeon freedom of speech in response to
the Tucson shootings, it has conspired to sweep under the carpet far more
extreme and threatening language and images used by leftists in the context
of the climate change debate, rhetoric that has led directly to crimes and
murders.
WikiLeaks: Julian Assange ‘faces execution or Guantánamo detention’ Julian

Assange, the founder of WikiLeaks, could be at “real risk” of the death
penalty or detention in Guantánamo Bay if he is extradited to Sweden on
accusations of rape and sexual assault, his lawyers claim.
US could be in Afghanistan after 2014, says Biden US Vice President Joe Biden
said Tuesday that the United States will not withdraw its troops from
Afghanistan completely in 2014 if Afghans did not want his country to do so.
Judge Sides With GATA, Orders Fed To Present Her With Its Classified Gold
Records For Private Review Our friends at GATA report an interesting
development in its multi-year confrontation with the Fed, namely that the
organization has “scored a small but perhaps auspicious victory over the
Federal Reserve in our lawsuit seeking access to the Fed’s secret gold files.
Gerald Celente: Internet nuke bomb waiting to go off Gerald Celente, the founder
of the Trends Research Institute, believes that the Internet will empower the
youth of the world to unite to start a revolution that will overthrow the
existing deadlocked elitist establishment. He predicts that in 2011 every
citizen is going to realize that the Great Recession the world has been living
through is actually a Great Depression, because the American establishment
is “running out of schemes.”
William Daley’s JP Morgan Stock: Obama’s Next Chief Of Staff Has Millions
Invested President Barack Obama’s next chief of staff holds more than $7.6
million worth of stock in JPMorgan Chase, according to a regulatory filing.
‘CIA-created Frankenstein’: US turns blind eye on terrorist? A former CIA

operative, who’s wanted in Venezuela and Cuba for terrorist attacks
throughout Latin America, has gone on trial in the U.S. But that’s not why
Luis Posada Carriles is in court. Instead, he’s being charged with lying to
immigration officers. RT’s Jihan Hafiz looks at why the U.S. is turning a blind
eye to an alleged terrorist.
Islamic group is CIA front, ex-Turkish intel chief says Washington Post | A memoir
by a top former Turkish intelligence official claims that a worldwide
moderate Islamic movement based in Pennsylvania has been providing
cover for the CIA since the mid-1990s.
WikiLeaks: Julian Assange ‘faces execution or Guantánamo detention’ Guardian |

Skeleton argument outlined by Australian’s defence team claims he could
face rendition to US if extradited to Sweden.
Iran claims to have smashed ‘Mossad spy ring’ The Telegraph UK | Iran claims it
has broken up a ‘Mossad ring’ allegedly behind the murder of an Iranian
nuclear scientist in Tehran last year.
U.S. Embassy Turned a Blind Eye as Suspected CIA Banker Allen Stanford Bilked
Investors, Secret Cables Reveal IntelDaily.com | Secret Cables Reveals U.S.
Embassy Provided Political Cover to Suspected CIA Banker Allen Stanford
while he expanded his empire.
israeli warplanes in fresh strikes on Gaza killing freedom seeking civilians:
witnesses (AFP) yet amazingly, the Christ-killers say as per netanayahu:
Palestinians 'walking away' from peace (AFP)
Drudgereport: SILENCE: RI Gov. bans state employees from speaking on talkradio...

Dem Congressman: If Violent Rhetoric Didn't Cause This Shooting -- It Will Cause
Next One!
BILL CLINTON: 'WE NEED TO BE CAREFUL ABOUT THINGS WE SAY' … [ How
about, OR DO! ] ...
OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'...
Dem rep urging 'civility' had called for FL guv candidate to be shot...
NEW PUSH FOR 'FAIRNESS DOCTRINE'...
MSNBC Matthews Cites Radio Stars Mark Levin, Michael Savage As Reason For
AZ Shooting...
Dem Senator Fundraises Off Murders...
PISTOL SALES SURGE AFTER AZ SHOOTING
Snow in 49 states including Hawaii…[Sounds like that ‘Global Warming Thing’…
Riiiiight!] ...
Bank of China Brings Yuan Trading to USA...
China Stealth Test Upstages Gates, Hu...
France our biggest ally, declares Obama: President's blow to Special
Relationship with Britain...
Sarkozy to be subject of 'hugely embarrassing' film...
Merger would create largest U.S. utility (Washington Post) [ Well, sounds like a
plan. That trend to ‘bigger the better’ / too big to fail thing. Down only a
penny in today’s trading. I’d call that a vote of confidence by fraudulent wall
street. Why, you can almost hear the wall street frauds cheering to the tune
of that familiar cheer, ‘We must, we must … increase the nation’s potential
economic bust … the bigger the better, the lesser the vetter … the better the
government boys will like us.! ] Duke Energy announces a $13.7 billion
merger deal with Raleigh, N.C.-based Progress Energy.
Watchdog over Afghan reconstruction resigns (Washington Post) [ Wow! Sounds

like he really meant business … which also meant, congress ‘hearing footsteps’
so to speak, that he had to go. After all, applying a stringent standard that
promises to do something about fraud and corruption is a standard that would
threaten the entire u.s. government … all three branches. ] Arnold Fields, the
head of the office charged with investigating corruption in the multibillion-dollar
effort to rebuild Afghanistan has resigned, the White House said, following
congressional demands that he be replaced.
Government contractor ATS shifts gears (Washington Post) [ Now granted … this
is northern virginia, alphabet soup kitchen territory (part of the Washington
d.c. governement mob)… rivaled in corruption only by such other
pervasively mob infested states as jersey (multi-ethnic mob), new york
(Italian, jewish, irish, wall street), Connecticut (whatever new york and d.c.
says, mob), California (multi-ethnic mob, young gangs movin’ up, local
government / bureaucracies mob), and of course the corrupt courts in all 5,
but there’s somethin’ strange in the neighborhood here. I mean, 1 weak or I
mean 1 week tenure and probably want to just give him some money. "We
need to do something to get those shareholders replaced by other
shareholders - whether it be one big shareholder or several smaller ones,"
said Bersoff, ‘who was the company's previous chief executive.’ This is the
first statement of its kind I’ve ever encountered in modern day finance, such
as it is. Then there’s that ‘government contractor thing’. Could it be that the
michael corleones of the cia want to ‘legitimize’ their enterprises which have
included illicit drugs, arms, etc.? All we really know is that Sidney …
Fuchs. ] CEO Sidney E. Fuchs resigns as the company announces its
intention to pursue strategic alternatives, including a possible sale.
China as Europe's white knight? (Washington Post) [ White knight? I don’t think
so. Yellow night and day, I think yes. Not to impugn their motives, but the Book of
Ecclesiastes said it well: "What has been is what will be, and what has been done
is what will be done; and there is nothing new under the sun"
 Heartland Diary of Betty B.: Confessions of an Economic Hit Man
Jun 18, 2007 ... John Perkins' career as an economic hit man (EHM) has taken him
all over the globe. He details his activities as an EHM in his best-seller ...
heartlanddiaryofbettyb.blogspot.com/.../confessions-of-economic-hit-man.html -
Cached - Similar
 Confessions of an Economic Hit Man - Cobb
Mar 23, 2007 ... Confessions of an Economic Hitman by John Perkins is an

exclamation point riddled history of a few financial manipulations of the Cold War
...
cobb.typepad.com/cobb/2007/03/confessions_of_.html - Cached - Similar
 Daily Kos: NPR: Confessions of an Economic Hit Man
Aug 9, 2006 ... rustydude's diary :: :: The reason I bring it up within the ..... I am
thrilled to hear all this support for the Economic Hit Man book since ...
www.dailykos.com/story/2006/8/10/04532/7753 - Cached - Similar
 Cinema Libre Acquires 'Economic Hit Man' | TheWrap.com
Jul 13, 2010 ... In 2008, Greek writer/director Stelios Koul made a documentary
about Perkins entitled “Diary of an Economic Hit Man.” ...
www.thewrap.com/.../cinema-libre-acquires-economic-hit-man-19179 - Cached
] Traders are speculating that cash-rich China may step in and buy hard-hit
European bonds.
Will: Half-baked explanations for tragedy (Washington Post) [ Half-baked?

Charlatans? The foregoing are in no short supply in defacto bankrupt,
meaningfully lawless, pervasively corrupt, fraud prevalent america. See, for
example, RICO case
yofperjury.pdf
Moreover, Mr. Will as an oftimes apologist for war criminal, pervasively
fraud-prone, defacto bankrupt, etc., america, with crime rates exceeding by
far those of any other so-called civilized nations, might indeed find himself
among those he’s so categorized. Among the last separate page sections to
my website will be a somewhat detailed psychoanalytic evolutionary profile
of the u.s. (one might ask who am I to do so which is fair comment to which I
would reply, read it, or not, your choice). However, for the nonce, let me say
that the it is no small coincidence that the 20th century has been dubbed ‘the
american century’. That the 20th century has been considered the bloodiest
is at once the natural concomitant of the foregoing reality. Keeping in mind
the so-called ‘selective’ processes in both insurance (adverse) and
evolutionary (Darwinian) terms, and as well, the psychology of it all from a
behavioral perspective, america has indeed evolved. From the genocide of
indigenous populations, to outlandish propaganda in support of same (ie.,
that ‘manifest destiny’ balderdash with overtones of religiosity spoonfed
since elementary school, etc.), to contrived conflict / war, such,
euphemistically bad behavior has been reinforced, some of which
conditioning not always purposeful, ie., the ever greater frauds perpetrated
on wall street for which there have been in large part no real punitive
consequences to the perpetrators; but, to the contrary, great financial
rewards though substantially detrimental to the majority. Despite the surface
appeal, that oft asserted ‘blue-blood’ distinction doesn’t pass muster. Aside
from the few seeking seeking religious freedom (ie., Puritans among some
others), most then new americans were such disaffected rejects of their
former homelands that desperation at best was motivation for travel to the
wilds of the ‘so-called new world’ as opposed to intelligent, rational choice;
criminals, mentally ill, the not-so-bright but ruthless populating the new
nation in disparate numbers toward the ends consistent with greed and
common criminality, corruption, and venality. As of the age of the dinosaurs,
the american century has passed into the annals of a history replete with
self-generating terrorism within and without (that blowback thing).
DRUDGEREPORT: NATION SHOCKED: CONGRESSWOMAN SHOT IN
TUCSON
SCARY FREAK!
THE DEVIL MADE HIM DO IT: TUCSON SHOOTER'S TWISTED SKULL
SHRINE...
Described by Classmate as 'Left-Wing Pothead'...
Family of suspect blocks FBI access to house...
Shooter Smirks in Court, Smiles for Mug Shot...
Was registered independent; Didn't vote in Nov. '10 election...
'SHERIFF' BLAMES RUSH LIMBAUGH FOR MASSACRE?
CONGRESSWOMAN READIES GUN CONTROL BILL...
Dem planning bill that would outlaw 'threatening' lawmakers...
...'use language or symbols that could be perceived as inciting violence'
OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'...
SAFEWAY MASSACRE... UPDATE...
SLAIN JUDGE WANTED TO TALK TO REP. ABOUT SURGE IN BORDER
CRIME...
WIRE...
Suspect scrawled: 'I planned ahead'...
Obsessed With Mind Control...
Described by Classmate as 'Left-Wing Pothead'...
Trade war looming, warns Brazil...
Tensions rise in currency wars...
Pressure on Portugal heightens...
GLOBAL ORDER: Sarkozy takes case to Obama as food prices soar...
Greece borrowing rates hit new record...
Pentagon concerned over China's rapid development of new weapons...
Economists foretell of U.S. decline, China's ascension...
SAFEWAY MASSACRE...
VIDEO...
6 Dead, 12 injured...
Dem Rep. Gabrielle Giffords shot through brain; critical after surgery,
doctors 'optimistic'...
Federal Judge Killed...
WIRE...
CAPITOL POLICE URGES CONGRESS TO TAKE PRECAUTIONS...
BOEHNER: 'An attack on one who serves is an attack on all who serve'...
OBAMA: 'UNSPEAKABLE TRAGEDY'...
Gunman ID'ed as Jared Loughner, 22... YOUTUBE...PHOTOS...
Obsessed With Mind Control...
MYSPACE GENERATION: Suspect Says Goodbye Online: 'Please don't be
mad at me -- I cannot rest'...
14 decapitated bodies found in Mexico resort city...
NUMBER OF COMBAT INJURIES IN AFGHANISTAN APPROACHES IRAQ-
WAR LEVELS...
WIKILEAKS: US demanding our TWITTER account info...
WIKILEAKS demands GOOGLE and FACEBOOK unseal US subpoenas...
New data collected from sensors left on moon in 1971 [ Riiiiight! … and if
you’ve seen the beginning of 2001:Space Odyssey (the monolith), you’ve
already seen it! ] ...
Euro Crisis Roars to Forefront...
Portugal's debt worries worsen...
UN warns Greece on anti-migrant fence...
NJ police: Man seeking 'portal to hell' stabbed 2...
Unprincipled Liberals Exploit an Insane Loughner to Condemn Political

Opposition Kurt Nimmo | So called progressives are not opposed to the
state’s monopoly on power and violence, so long as they are part of the
state or its propaganda apparatus.
Washington Post Concedes: Gunman Acted On Mental Illness, Not Political
Rhetoric Tucson shooter Jared Lee Loughner was not affiliated with any
political party and failed to vote in the 2010 election, further bolstering the
fact that his rampage was borne out of a deranged mental illness and had
nothing to do with him reacting to vitriolic rhetoric put out by anti-
government activists, as the establishment media and their liberal attack
dog blogs have ceaselessly claimed in an effort to eviscerate the First
Amendment.
Eyewitness “Shooter Was Ready For War!” He Had More Magazines & Attempted
To Load One Joe Zamudio was one of the eyewitnesses that helped pin
down the gunman. He reports that Loughner had several more magazines
and was trying to reload. Another fact that the establishment media are
loathe to report is that Zamudio was a responsible gun owner who was
carrying his firearm and was prepared to use it to stop the carnage if
necessary.
Leftists Attack Parents Of Murdered 9-Year-Old How low will some people stoop
to play at partisan politics by exploiting the weekend’s tragic events? We’ve
already seen the bar set pretty damn low by elements of the media and some
public officials, yet its hard to imagine how much further anyone can go than
to verbally attack the parents of the slain 9 year old Christina Taylor Green.
Vultures May Exploit Tragedy To Push “Subversives” Legislation Every single

day, crazed lunatics claim the lives of innocent people; sometimes it’s a
premeditated crime, sometimes it’s a crime of passion, sometimes it’s a
complete accident, sometimes it’s an act of terror, and sometimes people
are just in the wrong place at the wrong time when a 500 pound bomb is
dropped over Afghanistan.
Another Tragedy Vulture Exploits Victims To Push Political Agenda To Kill Free
Speech U.S. Rep. Jim Clyburn, the third-ranking Democrat in Congress, said
Sunday the deadly shooting in Arizona should get the country thinking
about what’s acceptable to say publicly and when people should keep their
mouths shut.
Threatening To “Kick The Bums Out” Could Be Outlawed Under New Legislation
Rep. Robert Brady (D-Pa.) reportedly plans to introduce legislation that
would make it a federal crime to use language or symbols that could be
perceived as threatening or inciting violence against a federal official or
member of Congress.
Leftists Attack Parents Of Murdered 9-Year-Old Steve Watson | The dignity and
class of the parents of Christina Taylor Green does not fit neatly into the
partisan political script.
Washington Post Concedes: Gunman Acted On Mental Illness, Not Political

Rhetoric Paul Joseph Watson | Loughner was not affiliated with Tea Party or
conservatives.
Bombshell: Arizona Killer “Very Liberal” Kurt Nimmo | Democrats and liberal
talking heads have taken Rahm Emanuel’s maxim to heart – never let good
crisis go to waste – and are
Liberal Smear Machine Backfires After Gunman Found To Be Occultist, Pot-

Smoking Left Winger Alex Jones & Paul Joseph Watson | Effort to conflate
killer with anti-big government conservatives falls apart.
Establishment Media Demonizes Tea Party and Constitutionalists After Giffords

Shooting Kurt Nimmo | Propaganda campaign begins with faux Tea Party
queen Palin, will spread to the real movement in days ahead.
Arizona Assassin Obsessed With Mind Control Paul Joseph Watson | Loughner
was a US military recruit who was obsessed with mind control, mirroring the
circumstances of many other mass shooters in history.
Political Hacks Waste No Time In Shamelessly Exploiting Giffords Shooting To

Demonize Political Oppositon Paul Joseph Watson | Before it’s even been
confirmed that Giffords is dead, neo-lib statists are already shamelessly
milking the shocking events for political gain.
Who’s Behind the Congresswoman’s shooting in Arizona? Infowars | Will the
tragic shooting stoke anti-gun legislation, fuel the flames of War on Terror or
signal random violence amid a chaotic political climate?
Arizona Assassin Obsessed With Mind Control Jared Loughner, the gunman who
shot Congresswoman Gabrielle Giffords and numerous other victims
including a Federal Judge and a nine-year-old girl during a political event in
Tuscon today, was a US military recruit who was obsessed with mind
control, mirroring the circumstances of many other mass shooters in
history.
Political Hacks Waste No Time In Shamelessly Exploiting Giffords Shooting To

Demonize Political Oppositon Political hacks have wasted little time in
exploiting the tragic shooting of Democratic Congresswoman Gabrielle
Giffords to demonize their political opposition despite the gunman’s
motivation being completely unknown at this time.
Who’s Behind the Congresswoman’s Shooting in Arizona? With so many other

psuedo-events in the War on Terror lately, including package bombs, FBI
stings and set-ups and the like, it is entirely possible this was a false-flag
event designed to clampdown on gun ownership or simply stoke the fear of
radical Muslim or homegrown terrorists.
The New York Times Is One to Talk About Rhetoric and Violence Kurt Nimmo | The
New York Times and Judith Miller sold mass murder to America.
SPLC blames Ayn Rand, David Icke and Others for Arizona Shooting Aaron Dykes
| Who is to blame for Jared Loughner’s bizarre shooting yesterday?
According to Mark Potok, anyone with even the vaguest links to his bizarre
and disjointed online ramblings. ]


mortgage debt.
United States.
131,000 to 170,000 between 2007 and 2009.

come down for good.

Options Data Suggests Topping Action - Maierhofer ‘What the market's rally lacks in
charisma, it has made up in persistence. The stair-step, creeping type of an up grind is
lulling investors to sleep as we speak. Steady and seemingly risk-free gains have
rekindled optimism and created a state of euphoria not seen in years ... since late 2007
to be exact.The irony of this article is that few investors will feel compelled to read
anything that resembles a warning or contains a bearish message. The few that read
this piece will probably scoff at it. That's how bear market rallies work and that's why
they are effective.The soothing rhythm of the VIX (NYSEArca: VXX - News) has lulled
investors into a state of complacency. If you had to describe investor's alertness in
sleep lingo, a state of REM sleep would probably be the closest comparison.History tells
us that the (bear) market only strikes when least expected.Based on analyst polls by
Bloomberg, Barron's, USA Today and a variety of sentiment measures, a stock market
(NYSEArca: VTI - News) decline is as remote today as it was in 2000 or 2007.
Hedging Activity Drops
Investors and traders are content to hold on to massive long positions without hedge.
One of the easiest ways to hedge your stock portfolio is via put options. Last week the
CBOE Equity Put/Call Ratio dropped to 0.4, the lowest reading since April 15, 2010.The
lack of hedging is dangerous for prices because the market is without a safety net. The
only option for spooked investors without hedge is to sell. Selling causes prices to
drop.On April 16, 2010, the ETF Profit Strategy Newsletter warned of the consequences
of a low put/call ratio: 'Selling results in more selling. This negative feedback loop
usually results in rapidly falling prices. The pieces are in place for a major decline. We
are simply waiting for the proverbial first domino to fall over and set off a chain
reaction.'The first domino dropped just a few days later, setting off the May 6 'Flash
Crash' and ultimately resulted in a swift 15% correction for the Dow (DJI: ^DJI), 17%
correction for the S&P (SNP: ^GSPC), 19% for the Nasdaq (Nasdaq: ÎXIC), and 21%
for the Russell 2000 (NYSEArca: IWM - News).A different measure of complacency is
the premium traders willingness to pay for call options (bullish bets). Based on a three-
month average, the price for put options (bearish bets) is near a 10-year low. The only
other time that rivals current readings was in 2007.
This Time is Different
The spirit of 'this time is different' is one of the most fascinating phenomenons known to
Wall Street. Investors' sentiment follows the ebb and flow of stock prices. When prices
are up, the future is expected to be bright. When prices are down, the future is
supposedly bleak (just think of the 2007 peak and 2009 bottom).This approach of linear
extrapolations feeds the herding mentality, which contrarians use as effective indicators.
This approach is not foolproof but, nevertheless, is one of the most accurate, if not the
most accurate timing tool known to underground Wall Street aficionadosThe chart below
(taken from the January 2011 ETF Profit Strategy Newsletter) illustrates the four most
prominent occurrences of extreme optimism, or the 'this time is different' effect. The
green line connects the price of the S&P with the timeline and various sentiment
gauges. [chart] Investors thought 'this time is different' at the 2007 peak, in May 2008, in
January 2010, and again in April 2010. The only thing different at all four times was the
velocity of the descent, but each period of euphoria was greeted by despair.
Optimism and Bad News
If you had a chance to watch CNBC's 60 Minutes over the past two weeks, you are
aware of some possible 'Black Swan' events.Scott Pelley's introduction to Ben
Bernanke's interview couldn't have been more sobering: 'That is the worst recovery
we've ever seen. Ben Bernanke is concerned. Chairmen of the Fed rarely do interviews,
but this week Bernanke feels he has to speak out because he believes his critics may
not understand how much trouble the economy is in.'The financial media, however,
ignored Ben Bernanke's sobering assessment of the economy and focused on the silver
lining: A bad economy may lead to QE3 and its cousins QE4 and QE5. What's better,
an improving economy or more QE? Apparently QE is just as good as more
jobs.Another 60 Minutes focused on the next big thing; Municipal and state defaults. In
the two years since the 'Great Recession,' states have collectively spent nearly half a
trillion dollars more than they collected. There's a trillion dollar hole in their public
pension fund and according to New Jersey's Governor, the day of reckoning is
near.Meredith Whitney, one of the few analysts who foresaw the bubble building in
banks (NYSEArca: KBE - News) and financials (NYSEArca: XLF - News) believes at
least part of the three trillion municipal bond market will unravel within the next year.For
much of 2010 municipal bonds were brewing their own little bubble. As it is common
with bubbles, they are rarely foreseen by the public eye. In the case of muni bonds,
yield hungry investors ignored the red flags.On August 26, the ETF Profit Strategy
Newsletter warned that it is time to get out of muni bonds, corporate bonds and
Treasuries. Muni-bonds topped on August 26 and have since given up more than two
years worth of gains.
History Rhymes
Yes, history doesn't repeat itself but it often rhymes. In 2007, Merrill Lynch's Global
Economics Report foresaw a bright future: 'The Merrill Lynch global economics team
believes that the economy will continue to grow in 2007 - with no sign of a significant
cyclical slowdown.'According to J.P. Morgan, Barclays Capital and Goldman Sachs
(Merrill Lynch failed to foresee its own demise in 2007 and is no more), the S&P will
gain between 15 - 20% in 2011 and the 'economy will continue to grow in 2011.'Perhaps
this time will be different, but based on history, now is the time to at least be cautious
and protect your investments. An ounce of protection is worth more than a pound of
cure. Based on long-term valuation metrics the stock market is priced to deliver pain,
not gain (see November 2011 ETF Profit Strategy Newsletter for a detailed
analysis).Based on sentiment, the market is overheated and due for a correction at the
very least, and how often have we seen a correction turn into something more? Timing
a top is tricky, but based on support and resistance levels and seasonal patterns it is
possible to narrow down when the market is ready to roll over.The ETF Profit Strategy
Newsletter includes the next resistance likely to mark the end of this rally and important
structural support. A close below this important support level will probably break the
bulls' spirit and the market's streak.’
Can the Unshortable Market Be Shorted? [ I do not consider short-selling an

investment strategy, but rather a speculation that is only for the extremely
few, lucky and hence successful speculators who are also capable and
prepared to lose more than their investment principal.] TraderMark ‘I have
called this the unshortable market for many months as it acts very strangely.
Again it is not so much the move up that is strange as the total inability for
even short-term pitstops in the months of September, October, December
and thus far January. November was an outlier event due to Ireland ...save
for those headline events, I am sure November would have acted similar to
the other months. Frankly, as a contrarian, when you hear people talking
about unshortable markets you want to fade that...but doing so the past
many months would have ripped your face off. So do we just give up until
Jul 1 and QE2 ends? I doubt it will be that convenient. During QE1, there
were at least a few pullbacks...summer 09 comes to mind. Further, almost
every strategist now thinks SP 1400 to 1425 is in the bag for year end 2011.
The problem is, we are about 10% away from that target just days into the
year. Considering there are 11 more first days of the month this year (which
are now almost always up) and 51 more Mondays (which lead to morning
gap ups about 80% of the time nowadays) that does not leave much leeway
for Monday afternoons through Friday for price appreciation. Unless we are
headed to a repeat of fed-induced bubble mania circa 1999…’
New Ponzi Scheme: Blame Bernie [ Which one? Which ‘weak end at bernie’s’?
Bernie bernanke or madoff? As usual, where’s the DOJ? ‘The SEC seeks an
injunction, DISGORGEMENT and civil penalties’. Now note that that disgorgement
thing has yet to be applied to the gargantuan frauds on wall street. Indeed, now
flush with cash from legislative (mark to anything change in FASB rules) and fed
(new bubble) help, the frauds on wall street are cashing out bonuses exceeding
$144 billion. For those who think there’s no economic damage attendant to such
frauds as those perpetrated by the frauds on wall street which the computer-
programmed high-frequencey churn-and-earn continuing as we speak, take
further note of this disaster called the defacto bankrupt u.s. economy that the
slicker, though less blatant than the fraud that follows which pales in comparison
to that bailed out by the u.s. taxpayers at great long-term cost to the nation. ]
Singer ‘Frankly, it’s becoming a bit of a broken record. According to a Securities and
Exchange Commission (SEC) Complaint filed on January 6, 2010, a number of
Defendants perpetrated a Ponzi scheme – yet another such allegation against another
group of alleged fraudsters. Securities and Exchange Commission, Plaintiff, vs.
Raymond P. Morris, E & R Holdings, LLC, Wise Financial Holdings, LLC, Momentum
Leasing, LLC, James L. Haley, Cornerstone Capital Fund, LLC, Vantage Point Capital,
LLC, Jay J. Linford Freedom Group, LLC, and Luc D. Nguyen, Defendants
(11CV00021, Utah District Court, January 6, 20100) NOTE: The SEC Complaint
contains only allegations. The Defendants are presumed innocent of the charges
and it will be the government’s burden to prove the Defendants’ guilt at trial.
Get Yer Scorecards!

• Raymond P. Morris (“Morris”), age 42, sole owner of E & R Holdings, Wise
Financial, and Momentum. Morris has never been registered with the SEC in any
capacity and has never been licensed to sell securities. Morris formed, owned
and operated E & R Holdings, LLC (“E & R Holdings”), Wise Financial
Holdings, LLC (“Wise Financial”), and Momentum Leasing, LLC (“Momentum”)
• James L. Haley (“Haley”) age 49, sole owner of Cornerstone Capital Fund and
Vantage Point Capital. Haley has never been registered with the SEC in any
capacity and has never been licensed to sell securities.
• Luc D. Nguyen, (“Nguyen”), age 40, member of the Utah State Bar and was
counsel to Morris and Haley at all times relevant to this Complaint. Nguyen has
never held any securities licenses and is not registered with the SEC in any
capacity.
• Jay J. Linford (“Linford”), age 49, sole owner of Freedom Group. Linford has
never been registered with the SEC in any capacity and has never been licensed
to sell securities.
In the Beginning
The Complaint alleges that Morris first approached Haley (who was in a real estate
investment group with Morris), about an exclusive investment that was allegdly started
by the owner of the Houston Astros and had generated 20% returns per month for
nearly eight years.
Wow, that’s too good to pass up, if you ask me – I mean, geez, the Houston Astros
owner started it. And, even more compelling, 20% returns for eight years. Hey, no
reason to really check any of that out, right? I mean the Houston Astros are in baseball,
and baseball is as American as apple pie, and any deal offering 20% returns that’s so
all-American has to be the real thing. Batter up!Morris allegedly told Haley that this hot
investment opportunity is based on a capital leasing concept (the “Fund”). Once money
is invested in the Fund, Morris purportedly represented that the money would be
deposited into an account under Morris’s sole control and would never leave the
account.Odd how the investors’ cash never quite seems to get directly deposited into
these troubled investments but always seems to wind up offshore, in a conduit, or in
some account under someone else’s control. Sort of like when you open a brokerage
account and decide to buy 1,000 shares of stock and your stockbroker insists that you
write the check for the purchase price made payable to him — why? Oh, well, if you
really have to ask, it’s not for you, he says. If you must know, he reluctantly confides in
you, it’s so that the brokerage firm can first verify that you have the dollars to buy the
stock. I’m doing you a favor, he says, by allowing you to first give me the money. That
way you don’t have to worry about getting cleared to buy the stock. You can trust me,
I’m your stockbroker.
It all sounds a bit more fishy when I put it like that, doesn’t it?
And what supposedly was the point of depositing the investors’ funds into the Morris-
controlled account?
The Complaint alleges that Morris explained to Haley that once investor capital was
verified, private traders would obtain large lines of credit and then would invest the
proceeds in bonds, hard money lending and small businesses. Morris advised Haley
that the return from these investments would be sufficient to guarantee investors a
return of 20% per month or more.
Did you get that?
Private traders are out there waiting for those ever-so-urgent phone calls that assure
them that cash has been legitimately invested in some account, and once that
assurance is given to the private traders, well, you know, they obtain humongous lines
of credit. What do the traders do with all that credit? Well, they invest in “bonds, hard
money lending and small businesses.” Again, you’d think that investors would do some
hardcore homework and confirm all of those representations. However, we would not
have these stories and lawsuits if folks went through the trouble of keeping other folks
honest – would we?Still – for some reason there are a lot of folks out there – I’ll call
them pigeons, if you don’t mind – who seem to have a fire in their wallets and can’t wait
to send dollars into yet another Fund that guarantees 20% once some supposed group
of private traders obtains verification of deposit and then goes out and leverages the
sums on deposit into impressive sounding investments. Apparently, Haley was hot to
trot. You understand why, don’t you? The Houston Astros connection. The 20%. The
verified funds in someone else’s account. Tough to ask questions or demand proof
about something so enticing. (Yes, that’s sarcasm — dripping and heavy).
Ashes to Ashes
Only one problem.Morris told Haley they could not join the Fund unless an existing
investor died.My, isn’t that too bad? Clearly this deal is for real because folks are
literally dying for other investors to get in. I mean, you know, seriously, no one would
possibly make up such a precondition. Course not. You’d have to kill some investor off
just to make way for another investor. That’s just nuts.
Eureka!Haley was really, really, really lucky because Morris called Haley with the
wonderful news (albeit, quite sad) that one of the few investors in the Fund just dropped
dead less than a week after Morris told Haley about this amazing investment
opportunity. The Complaint asserts that Morris indicated that if Haley could raise
$500,000 in three to five days, they could invest in the Fund.
Happy days!
Getting the Bucks
The Complaint alleges that without conducting any due diligence into Morris or the
Fund, Haley began soliciting investments from friends and neighbors and raised
$500,000, which he gave to Morris.What did Haley tell his acquaintances? Oh, the
Complaint says that he simply repeated Morris’s representations about the whole set-
up and further assured the investors that their funds would only be used for “verification
of deposit” purposes. I like the sound of that, don’t you? Verifcation of deposit
purposes. Me? I’ve only been on Wall Street for about thirty years and although I’m
not sure what the hell “verification of deposit purposes” means, I must admit that it
sounds pretty impressive. Of course, silly me, I would never write out a check to anyone
for something like “verification of deposit purposes” without reviewing all the source
documents and confirming the bona fides of the supposed traders and the trades but,
then again, I’m just another stupid lawyer.The Complaint alleges that from about August
2007 through June 2008, Haley, through his entities Cornerstone Capital andVantage
Point, raised at least $20 million for Morris’s Fund.Oh, and there’s this tidbit: Morris and
Haley had entered into an oral agreement that provided a payment of 20% per month
on funds Haley raised. Another thing, Haley could determine what portion of his fee he
gave back to his investors. Lemme see, 20% of $20 million is like, what?, about $4
million? Not bad for simply getting friends and acquaintances into some verification of
deposit purposes thingamajig. I wonder how much of that Haley gave back to the
investors?
Enter the Lawyer
Sometime prior to June 2007, Morris and Haley hired Nguyen, a Utah attorney, to assist
them with legal matters relating to soliciting investments. Nguyen set up Morris’s and
Haley’s investment entities, drafted offering documents, and filed Forms D with the
Commission for Morris controlled entities, E & R Holdings, Wise Financial and
Momentum, and for Haley controlled entities, Cornerstone Capital and Vantage
Point. After setting up the investment entities, the Complaint alleges that Nguyen
stepped outside his role as counsel and began soliciting investments. Despite having
conducted no due diligence on Morris or the Fund, Nguyen allegedly repeated Morris’s
misrepresentations about the Fund to investors.Nguyen is also charged with knowingly
making additional false representations to investors, including that he had reviewed the
Fund’s documents and had personally spoken with the banks and private traders
involved. Nguyen touted the Fund as “one of the best he had ever seen” and told
investors he “understood the Fund better than Morris or Haley.” Allegedly, Nguyen
told investors that he was an “SEC attorney,” and that the Fund was “one of the best he
had ever seen,” and that he had done extensive due diligence into Morris’s Fund and
knew the program better than Morris or Haley. Nguyen purportedly told investors he
had personally met with the attorneys representing the supposed trading companies
involved in the Fund and that he had received copies of all operating agreements
between the leasing companies and the trading companies. In fact, Nguyen performed
no due diligence on Morris or the Fund, never met with anyone affiliatedNguyen also
falsely told investors that he personally had significant assets invested in the Fund. In
fact, Nguyen made no capital contributions to the Fund. Oh, and let’s not forget that
Nguyen was allegedly paid at least $330,000 from Morris for raising investment funds
and was paid at least an additional $58,000 in legal fees.
One More Player
Sometime during the Spring of 2007, Morris met Linford at an investment seminar , and
thereafter, Linford is charged with raising about $1 million for the Fund by
misrepresenting that the Fund paid returns as high as 100% in seven days with no risk
to investor principal.
It’s All Madoff’s Fault

In April 2008, Morris stopped making regular interest payments to investors. Morris
gave many explanations to investors, including that Homeland Security had frozen the
accounts, that the Madoff case had caused banks to hold funds and that typographical
errors in wire request forms had caused delays.Oh, I see, it’s the old Homeland
Security-Madoff-Typo-Dog-Ate-My-Homework explanation. Don’t they have a form for
that?As investors complained and threatened to go to the SEC and other government
agencies, Morris began disseminating phony bank statements falsely showing that he
had over $200 million deposited with Wachovia Bank. In late October 2008, Morris gave
Nguyen a purported “Bank Confirmation Letter” from Wachovia. This fraudulent letter
states that Wachovia “currently holds funds in the amount of…$201,782,567.89…[and]
Mr. Raymond Paul Morris is the signatory on this account.” The letter also says “the
funds are good, clean and of non-criminal origin, are unencumbered and freely
disposable.”In addition to the letter, Morris gave Nguyen a phony “Verification of
Depository,” also purporting to be from Wachovia Bank, showing that $201,827,067.89
was in Morris’s account.
Okay, so, let’s at least give these guys credit. It’s not like they came up with a simple
round number, such as $201,000,000.00. No, this is more convincing with every place
filled with a seemingly plausible number. Can you find the whole numbers from 0 to 9
that are missing? Can you find Waldo?After Nguyen received the bogus “Bank
Confirmation Letter” and “Verification of Depository,” the Complaint alleges that he
agreed to draft a letter to Morris’s investors, assuring them their funds were safe.
Unfortunately, Nguyen allegedly did not conduct reasonable due diligence prior to
sending this October 30,2008 letter. The letter caused investors to delay their attempts
to contact government authorities regarding Morris, Haley, Linford and Nguyen and their
investment activities.
Carnage
By the time the Ponzi scheme unraveled, Morris, Haley, Linford and Nguyen, and their
respective entities, had allegedly defrauded at least 90 investors out of at least $60
million by offering and selling unregistered and non-exempt promissory notes based on
material misrepresentations and omissions.Many of the investors who lost money in the
Fund were inexperienced, unsophisticated and had minimal net worth and annual
income. Many investors lost their entire savings. Some investors went so far as to
borrow the money they invested and are now indebted beyond their ability to repay their
lenders.In truth, the Complaint alleges that Morris did not work with private traders to
obtain lines of credit that were invested. As has become the norm with these Ponzi
schemes, Morris is accused of using investor funds to make bogus interest payments
to earlier investors from capital raised from later investors. Moreover, rather than
investing the funds in debt and equity vehicles, real estate, commodities and leasing it
to private traders, Morris used investor money to support a lavish lifestyle, including a
luxurious home and several sports cars, and to make illusory interest payments to early
investors in his scheme.Out of the approximate $20 million Haley raised, the Complaint
alleges that he used at least $700,000 for personal expenses, including payments on a
new home and $25,000 per month rental payments while building this new home.The
Complaint charges Morris, Haley, Lindford, Nguyen, E&R Holdings, Wise Financial,
Momentum, Cornerstone, Vantage Point and Freedom Group with violations of Sections
5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The complaint also
charges Morris, Haley and Nguyen with violates of Section 15(a) of the Exchange Act.
The SEC seeks an injunction, disgorgement and civil penalties.’
Sentiment Signaling a Call for Caution - Prieur du Plessis ‘The results of the AAII
Investor Sentiment Survey are shown in the graphs below. The Survey measures
the percentage of individual investors who are bullish, bearish or neutral on stock
market for the next six months. As the masses are usually on the wrong side of
market movements, particularly at tops and bottoms, sentiment indicators fulfil a
useful function as contrarian indicators. The bullish sentiment (55.9%) and
bearish sentiment (18.3%) readings are at fairly extreme levels, as also seen from
the bull-bear spread being quite a bit higher than the market peak of October
2007. Sentiment indicators are fairly blunt instruments from a timing point of view
and can stay at high / low levels for extended periods. However, when companies
are overvalued and technical indicators overbought, overbullish sentiment
indicators complete a threesome of tools arguing quite strongly for a cautious
approach to stock market investment.
Click to enlarge:
[chart]
[chart]
[chart]
[chart]
Source: AAII Investor Sentiment Survey; Plexus Asset Management.’
Food Stamp Usage Hits New High Of 43.2 Million Ever wonder where all the
money for equity inflows came from? Here’s the answer: with all the money
saved from participating in the Supplemental Nutrition Assistance Program,
better known as foodstamps.
China Buys Up EU Government Debt China has been increasing its holdings of
European government debt, including that issued by Spain, amid the euro-
zone crisis, Chinese Vice Commerce Minister Gao Hucheng was quoted as
saying.
Ron Paul Wants You! (To Take On The Fed) Zero Hedge | For all those with a
penchant for crunching manipulated numbers and wish to make a change by
taking on the Fed, this may be your chance.
New York owes $200 billion in retiree health care costs – but there’s no money
David Gutierrez | New York State, along with its cities and counties, have
promised $200 billion worth of retirement health care benefits to their
employees, and no one knows where that money is going to come from.
Ron Paul: Congress Criminally Devaluing Americans’ Savings It is nothing short

of cruel and criminal for Congress to stand idly by while the life savings of
Americans are inflated away to nothing. It is high time Congress insist on
getting complete information on what the Fed has been doing, and for
whom.
The Silver Bears Are Back For Round Three, Explaining Two Key Recent
Developments In The World Of Silver Confused by the recent downdraft in
the price of (paper) silver… Even more confused by what is happening with
the record open interest in the metal? Have no fear. The bears are here, and
explain things in their traditionally simple and sound effect-filled way.
For Millions Of Senior Citizens The Only Future They Have To Look Forward To Is
One Filled With Debt And Poverty In America today, millions upon millions
of senior citizens are very deep in debt. In fact, more elderly Americans than
ever before are going bankrupt.
Labor Force Participation Rate Drops To Fresh 25 Year Low, Adjusted
Unemployment Rate At 11.7% Zero Hedge | While today’s unemployment
number came at a low 9.4%, well below expectations, the one and only
reason for this is that the labor force in America has plunged to a fresh 25
year low.
Why your local Hospital could soon shut down

Economic crisis archive
Presto! 9.4% Unemployment! How The Government Lies. Hooray…Happy days

are here again! That is exactly what the elite would have us believe with the
9.4% unemployment number in this huge CONfidence game otherwise
known as the USEconomy.
Fed Turns Over Record $78.4 Billion Profit to Treasury [ Totally manipulated
paper with costs far exceeding those paper entries, and even greater costs
prospectively even beyond the decline of the ever more worthless paper
currency. ] Reuters | The Federal Reserve reported Monday its earnings
jumped by more than 50 percent in 2010
Judge orders Fed to deliver gold records for her review GATA | GATA’s motion to
order the Fed to produce in complete form for the judge’s private review 20
gold-related documents the Fed has sought to keep secret.
Deepening crisis traps America’s have-nots The Telegraph UK | The US is drifting

from a financial crisis to a deeper and more insidious social crisis. Self-
congratulation by the US authorities that they have this time avoided a
repeat of the 1930s is premature.
National / World
Early Cancer Screening Could Cause Millions of Deaths Liberty Doctor | Early
detection of cancer at the cellular level will have us aggressively looking for
the location of early cancers via full body scanning.
DHS Links Loughner to White Supremacists Kurt Nimmo | Fox News reports that
according to Homeland Security Loughner may be connected to American
Renaissance.
Second Man Sought In Giffords Shooting May Be Assassin’s Handler Kurt Nimmo |
The official story that will become gospel for the corporate media is in the
process of formulation.
Jared Loughner Described by Classmate as “Left-Wing Pothead” Pheonix New

Times | A classmate of the man accused of shooting Congresswoman
Gabrielle Giffords this morning describes him as “left wing” and a “pot
head” in a series of posts on Twitter this afternoon.
“Toning Down The Rhetoric” Means Obeying Big Government Despite the fact
that Jared Lee Loughner was a psychotic loner with “left-wing” beliefs
according to those who knew him, the establishment has hastily exploited
yesterday’s tragic shooting in Tucson to demonize conservatives,
libertarians and gun owners while ordering Americans to “tone down the
rhetoric,” which is nothing more than a euphemism for stifling dissent and
coercing people to roll over on Obamacare, bailouts and whatever big
government is preparing to unleash next.
Establishment Media Demonizes Tea Party and Constitutionalists After Giffords

Shooting Get ready for the shooting of Rep. Gabrielle Giffords to be used in
a serious way against the Tea Party movement. MSNBC, CNN and the rest of
the Mockingbird media are now attempting to portray millions of Americans
as violence prone anti-government radicals.
Second Man Sought In Giffords Shooting May Be Assassin’s Handler The FBI and
local law enforcement in Pima County, Arizona, are looking for a second
man wanted in connection with the shooting of Rep. Giffords and the murder
of a federal judge and five others.
UPDATED: Arizona Assassin Obsessed With Mind Control Jared Loughner, the
gunman who shot Congresswoman Gabrielle Giffords and numerous other
victims including a Federal Judge and a nine-year-old girl during a political
event in Tuscon today, was a US military recruit who was obsessed with
mind control, mirroring the circumstances of many other mass shooters in
history.
Celente: Global Youth Rebellion Simmering RT | 2011 will see uprising against the
white shoe boys around the world.
Internet Identity System Said Readied by Obama Administration The Obama

administration plans to announce today plans for an Internet identity system
that will limit fraud and streamline online transactions, leading to a surge in
Web commerce, officials said.
US wants Twitter details of Wikileaks activists The US government has

subpoenaed the social networking site Twitter for personal details of people
connected to Wikileaks, court documents show.
Climate Scientists Deepening Skepticism of Democracy Does a liberal democracy

have sufficient resolve to stomach the economic and political sacrifices
required to stabilize global warming?
Justice Department Subpoenas Birgitta Jónsdóttir’s Twitter Account in WikiLeaks

Case Peter Kemp | Inherent in that subpoena is a belief by the DOJ that some
sort of incriminating evidence exists to use against Julian Assange.
Royal Family granted new right of secrecy London Independent | The Royal
Family is to be granted absolute protection from public scrutiny in a
controversial legal reform.
UK Library: Cryptome Blocked for “Criminal Activity” Cryptome | Official secrecy

is the very greatest threat to democracy.
Illinois faces steep tax increases to meet fiscal crisis (Washington Post) [ This is
only the beginning of this continued ultimately hyperinflationary depression with
much worse to come. How the recession imploded states' finances (Washington
Post) [ This is truly no joke! Municipal Debt Threatens U.S. Economy Lim ‘The
debt crisis that has taken down banks, and even countries, threatens more than
100 American municipalities this year. According to Meredith Whitney, who works
as a US research analyst, local and state debts are the biggest concerns to the
US economy today. It is large enough to derail economic recovery.
She said that,
There’s not a doubt on my mind that you will see a spate of

municipal bond defaults. You can see fifty to a hundred sizable
defaults – more. This will amount to hundreds of billions of dollars’
worth of defaults.
American states and cities have a total debt load of around $2 trillion.
New Jersey government Chris Christie summarized it clearly,
We spent too much on everything. We spent money we didn’t have. We borrowed

money just crazily. The credit card’s maxed out, and it’s over. We now have
to get to the business of climbing out of the hole. We’ve been digging it for a
decade or more. We’ve got to climb now, and a climb is harder…’ Video:
State pensions face 'death spiral' Wash.Post (It’s not just state and local …
it’s national, ie., social security, medicare, Medicaid, veterans, etc., and as
well, some companies. ) Sept. 15 (Bloomberg) -- U.S. state pensions such as
Illinois, Kansas and New Jersey are in a "death spiral," with assets at many
insufficient to cover benefits, payouts consuming a growing portion of
resources and costs rising twice as fast as investment gains. Bloomberg's
Monica Bertran reports. (Source: Bloomberg) (Bloomberg) ] While experts
call Illinois's plight the worst in the nation, many states are grappling with
the perils of air-brushing structural budget problems rather than
implementing difficult tax increases or service cuts.
White House to extend more support (to overcome widespread suspicion and
anti-americanism) to Pakistan (Washington Post) [ Well, there you have it.
Another victory notched up for defacto bankrupt, war criminal nation america.
Sounds like a plan … you know, that winning hearts and minds thing … destroy
the country, kill their people, have contractors siphon off the cash (with
kickbacks of course). Victory americana … Riiiiight! ] Offer aimed at overcoming
widespread suspicion and anti-Americanism in nation, which is seen as a vexing
but crucial partner in anti-terror efforts
Data point to economy crawling out of downturn (Washington Post) [ I don’t

believe anything the u.s. government et als says or reports. What Today's Job
Numbers Aren't Telling You Simon Maierhofer, On Friday January 7, 2011, 6:10
pm EST
‘Another month goes by and another unemployment report deciphered. Is there more to
this month's report than the 9.4% headline number? Unless you are content with the
information spoon fed by the financial media, you'll find the data points revealed in this
article rather interesting.The only other Wall Street ritual that tops monthly
unemployment reports is earnings season. Like any other ritual, it comes with many
myths and fables attached. The most common one is that unemployment directly affects
stock prices.
Myth Busted
If you base your investment decisions on today's release, you may want to revisit the
market's performance following last month's release (published on December 3,
2010).The U-3 unemployment rate spiked from 9.6% to 9.8%. This was a huge
disappointment, yet major stock indexes a la S&P (SNP: ^GSPC), Dow (DJI: ^DJI) and
Nasdaq (Nasdaq: ÎXIC) rallied. What caused this unexpected reaction? The answer
can be found in technical analysis.The technical setup going into last month's
unemployment release (published on December 3) was predominantly bullish. With the
S&P (NYSEArca: IVV - News) at 1,225 in early November, the ETF Profit Strategy
Newsletter highlighted important support at 1,165 - 1,170 and on November 7 stated:
'Any correction that doesn't drop below 1,165 will likely result in new highs' with
resistance at 1,267 (revised to 1,281 on December 12).As the chart below illustrates,
the S&P tested support on five occasions and set the stage for future gains. That's why
despite the dismal jobless numbers, stocks spiked on the day of the release and
continued higher. [chart] Before we talk about the technical set up going into today's
release, let's examine some unknown but important details about today's unemployment
report.
What the Headlines Won't Tell You
The Bureau of Labor Statistics (BLS.org) publishes more data than just the heavily
quoted U-3 unemployment headline number (currently 9.4%).In fact, if you do some
surfing on BLS.org you will find that the headline number is deceptive at best and
inaccurate at least. Below are some statistics that put America's job market in
perspective.According to the BLS, the real unemployment rate (U-6), which includes
workers who stopped looking for jobs or had to settle for part-time jobs - is at 16.7%.
One of the most remarkable BLS data points on the BLS site is the average number of
weeks workers are now unemployed. The jobless are unemployed for an average of
34.2 weeks. As the chart below shows, this is the second highest reading in the
survey's 63-year history (all-time high was 34.8 in July 2010).
[chart]
Along the same lines, the number of workers unemployed for more than 27 weeks
(usually unemployment benefits cease after 26 weeks) is near its May 2010 all-time
high. [chart]
A Painful Misconception
The Bush tax-cut extension led many to believe that unemployment benefits have been
extended beyond the 99 weeks (26 weeks state-funded plus 73 weeks federal benefits)
available to the 25 worst hit states. This is not correct.According to CNBC, no benefits
will be paid once the 99-week period is exhausted. As per the extension, however, the
jobless will continue to receive up to 99 weeks of unemployment checks.Over the past
three years, the unemployed have collected about $320 billion in jobless benefits. About
two million '99ers' received their last benefit check around Christmas.
A Shrinking Workforce
It is estimated that about 150,000 'youngsters' enter the work force every year. That's
why the work force has steadily increased since 1948. Courtesy of the 2008 bear
market, the workforce has actually been shrinking as discouraged workers drop out of
the statistics .Discouraged workers are those who stopped searching in the last four
weeks. Excluding them from the workforce and the unemployment equation artificially
lowers the U-3 unemployment rate. Discouraged workers surged to a new record high
of 1.32 million which depressed the labor force participation rate to 64.3% (a 27-year
low). If the participation rate had stayed the same, the U-3 unemployment rate would be
9.7%.
Making Sense of What Doesn't Make Sense
Based on U-6 numbers, since December 2006 as many 13 million Americans have
either lost their jobs, or have been downgraded. Meanwhile food stamp recipients have
mushroomed by ten 10 million.Nevertheless, stocks have shrugged off an avalanche of
bad news and continue plowing ahead towards new highs. Does that make sense?It
does when you include the Federal Reserve and it's quantitative easing program in this
lopsided equation. The Fed has a history of creating and ignoring bubbles. The 2000
tech (NYSEArca: XLK - News) bubble came and went and was followed by the 2005
real estate (NYSEArca: IYR - News) bubble.The 2005 real estate bubble was somewhat
cushioned by the 2007 financial (NYSEArca: XLF - News) bubble. The 2007 bubble
bust expressed itself fully until the Fed started inflating yet another bubble - the QE1
and QE2-based 'great' new bull market.
The Technical Set Up
Looking at the long-term picture, there is reason to be skeptical about the growth
potential for U.S. stocks (NYSEArca: IWM - News). But if you want instant gratification -
as most investors do - what's the technical set up for the coming weeks?Looking at the
market's internal indicators, we note that momentum is strong but breadth is weakening.
Sentiment - one of the most reliable indicators in the investment universe - is extremely
bullish, which is bearish for stocks.Prior instances when the ETF Profit Strategy
Newsletter noted overheated excitement for stocks was in January 2009, January 2010,
and April 2010. Another bearish factor is the new January effect that's seen stocks
decline each January over the past three years.Additionally, the S&P is about to reach
the measured upside target of a W pattern (December 12 ETF Profit Strategy
Newsletter) and a host of other resistance levels.In summary, momentum and Fed
induced liquidity point up, but sentiment gauges and some technical indicators convey a
deeply bearish message.The best way to navigate such cross currents is to let the
market speak and carefully analyze its reaction to important support and resistance
levels. Failure to break resistance levels combined with an inability to remain above
support have been recipes for disaster in the past, especially with bullish sentiment at
extreme levels.A chain is only as strong as its weakest link. The ETF Profit Strategy
Newsletter monitors the market's internal strength to identify weak links before they
break.’
Health-care repeal vote looms (Washington Post) [ Starting with real / unspun
data / facts is the wisest course, and such should be conveyed to the
taxpayers who ultimately pay, including the bloated salaries of the corrupt,
incompetent ‘washingtonians, federal employees, bushies, obamanoids,
etc., CBO Says Repeal Would Reduce Spending by $540 Billion...’The
Congressional Budget Office, in an email to Capitol Hill staffers obtained
by the Spectator, has said that repealing the national health care law would
reduce net spending by $540 billion in the ten year period from 2012
through 2021. That number represents the cost of the new provisions,
minus Medicare cuts. Repealing the bill would also eliminate $770 billion in
taxes. It's the tax hikes in the health care law (along with the Medicare cuts)
which accounts for the $230 billion in deficit reduction…’ ] … Right to
undo? Panel | How much should Republican House leaders focus on
undoing past initiatives versus creating their own new ones? | Weigh in
Twain needs no fixin' (Washington Post) [ I quite agree with Ms. Parker,
particularly in this digital age which facilitates such censorship which can be
accomplished with such ease and an environment as in the self-created paranoid
u.s. replete with pervasive corruption, incompetence, and criminality where
perpetrators / criminals therein cry out for more cover-up / censorship all in the
self-destructive name of ‘war on terror’, jingoistic patriotism, etc.. I’m against
almost all censorship (subject to very limited exceptions, ie., ‘yelling fire in a
crowded theater, kiddy porn, etc., except that the u.s. courts are so corrupt and
venal that they can no longer be trusted to responsibly apply those limited
exceptions to narrowly defined exceptional circumstances. See, for example,
RICO case
) . DRUDGEREPORT: NYT SATURDAY: NUMBER OF COMBAT INJURIES IN AFGHANISTAN
APPROACHES IRAQ-WAR LEVELS... DEVELOPING...
'WE'RE DIGGING OUT OF A HOLE' [ Example of sentiment: some comments - ‘…Barack
Obama is a cooked goose. He is absolutely the most incompetent president of the
U.S. ever, so he continues to spin the numbers in such a manner that might make
him look good. News for him: NOTHING will make you look good. Pretty is skin
deep, incompetence goes clear to the bone. "Let his days be few; and let another
take his office." Psalms 109:8- RightStuff, Texas, USA, 7/1/2011 19:45
You know what happens when you keep digging a hole - you reach China and
that is what is going to finish the americans and Obamarama...- Olrik, Canada,
7/1/2011 19:41
'We're digging ourselves out of a hole' - Barack Hussein Obama To get out of a
hole you've dug so deep, is to STOP DIGGING, fill it up with soil so you can climb
OUT OF THE HOLE. STOP SPENDING OBAMA! STOP PRINTING MONEY! The US
dollar is weakening against YUAN of China. Republicans better start cutting all
spending, defund/repeal Obamacare, America is flat BROKE! If Republicans can't
rein all spending created by Pelosi and her peons, their DEBT would be BIGGER
than their economy.- Observer, over here, over there, 7/1/2011 19:33
Well the ammo index is still down, I guess having 3,000 rounds is enough-
NVBob, Richland WA USA, 7/1/2011 19:31
Fill in the hole, with Obama in it, at the bottom!- Stan, St Louis, Missouri, USA,
7/1/2011 19:30
As one would expect of a socialist, clueless to the mechanics of a capitalist

system, he seeks to extricate himself from a hole by further digging.- jnsesq,
minimaxi, 7/1/2011 19:29 Read more:
http://www.dailymail.co.uk/news/article-1345047/Glimmer-hope-U-S-
economy-jobless-rate-falls-lowest-level-19-months.html#ixzz1APmJZga7’ ]
Jobs report an 'utter mess'... ‘…However, some economists were less optimistic.
'It's a bit of a mixed bag,' said Ryan Sweet, an economist at Moody's
Analytics. Many analysts hoped to see larger job gains, and the drop in the
unemployment rate is unlikely to be sustained, he said. 'The labour market
ended last year with a bit of a thud,' he said…’
China plans $1.3 billion 'seven-star hotel'...
China Backs Europe, Euro for Investing Reserves...
REPORT: Too much fluoride in US water...
] Parker: Why 'The Adventures of Huckleberry Finn' should not be
censored.
January 7, 2011: Market Summary
December Jobs Miss Expectations
Unemployment Down To 9.4%, But Jobs Report Disappoints
Is a Correction Inevitable? [Short answer: YES! ] Vistesen ‘The signs are clear:
risk is overloved, overbought and overextended but does this necessarily spell
the inevitable correction? [Short answer: YES! ] (click for larger image) [chart]
Since Augsut 2010 the SPY has barely touched its 50 day moving average.
Indeed, it has stayed well clear of it. Those, like yours truly, who entered 2011
fancying some bloodletting have so far been disappointed. Plan B Economics
points to the obvious that oftentimes in the world of investing, a choir chiming for
an event to unfold is the best bet that it will not occur.
I’ve had a pretty good sense in the past knowing when the
“correction” trade is overcrowded. I gotta say that I definitely sense
that now. Bulls are on guard for a correction and bears are calling for
one too. In fact, I’ve never seen such a unanimous call for a
correction as I do now in a long time. Near the low of the day I saw a
headline from bigcharts.com that said some portfolio manager
claimed the January correction has started. The market didn’t even
go in the red for the year yet and this guy’s already saying the
correction has started? Talk about being over-eager. I believe this
group think call for a correction means that a correction either won’t
happen or will be quite shallow, well below expectations.
As a good friend of mine noted that this is like second-guessing the second-
guesser. Market timing is best performed when frontrunning the crowd, not
standing in the middle shouting like everyone else. On the technical side, I would
like to see two (or three) straight days of declines in the SPY before calling it.The
more interesting point is how deep (or shallow) it will be. A move to the 50 day
MA marker would be something like 4.15% and come at around 1221 at current
levels. Sounds about right to me.’ [ Vistesen’s clearly an unbridled optimist! ]
Drowning in Debt Nyaradi ‘Everywhere I looked yesterday, the world seemed to

be drowning in debt.
In Portugal, bond spreads continue to widen as they prepare for a sale on
January 12th while next door in Spain, their “D-Day” (debt day) sale comes on
January 13th. France steps up on January 10th with more than $10 billion coming
to market with Italy following on January 11.
The euro fell to the lowest level against the U.S. Dollar in three months in
anticipation of next week’s auctions while the U.S. Dollar Index rose +0.68%.
Closer to home, Illinois struggles wtih a nearly $15 Billion hole that needs to be
filled and so is pushing for a tax hike to do the job while in California, recycled
Governor Jerry Brown promises to unveil a budget next week that will be
“painful.”
Meanwhile, December retail sales originally ballyhooed as being the best in years
turned in a lackluster performance and the pesky problem of persistent
unemployment resurfaced yesterday with Initial Claims rising unexpectedly to
409,000 from 391,000 prior while Continuing Claims managed to fall.
Today comes the big report and whisper numbers are huge improvements over
recent numbers.
Technically there’s no breadth and no momentum to market action and we remain
in very overbought territory on nearly all indicators.
Daily Moves for Major ETFs:
Dow Jones Industrials: (NYSEArca: DIA) -0.22%
Russell 2000: (NYSEArca: IWM) -0.47%
NASDAQ 100: (NasdaqGM: QQQQ) +0.32%
S&P 500 Index: (NYSEArca: SPY) -0.20%
MSCI Emerging Markets:(NYSEArca: EEM) -1.07%%
MSCI China (NYSEArca: FXI) -0.79%%
Gold (NYSEArca: GLD) -0.40%
7-10 Year Treasuries: (NYSEArca: IEF) +0.52%
20+ Year Treasuries: (NYSEArca: TLT) +0.44%
VIX +2.23%
U.S. Dollar (NYSE:Arca: UUP) +0.77%
The major indexes remain overvalued and overbought on a technical and

fundamental basis and so Wall Street Sector Selector remains in “Yellow Flag”
status, expecting choppy to lower prices ahead.’
Thursday's Economic Data Roundup: Mixed News Roche ‘U.S. retailers posted
weaker than expected sales in December, the Monster job index declined from
last month’s highs and unemployment claims continued their steady trend lower.
All in all it was a very mixed day of data.
• U.S. retailers posted weaker than expected chain store sales. Although
weak, most retailers were still able to post year over year gains. But an
alarming trend is showing up in the commentary – retailers are beginning
to see margin compression due to rising input costs. Mark Montagna, a
retail analyst at Avondale Partners says the entire supply chain cost is on
the rise and cost conscious consumers are very sensitive to higher prices.
The Wall Street Journal has a good round-up of the individual retailer
results here.
• The Monster Employment Index (click to enlarge) showed a stagnant

employment environment. Though year over year growth remains strong
the sequential data is showing little to no sign of recovery. The index
slowed to 130 in December from 134.[chart]
• Unemployment claims ticked higher from last week’s huge drop, but
remain on a steady trend lower. This likely points to growth, but slow
growth in the labor market. Econoday has the details on the claims data:
“Jobless claims haven’t been too bumpy this holiday period, moving
convincingly lower. Claims did rise to 409,000 in the January 1 week yet
follow the prior week’s 391,000 for the second best reading of the
recovery (prior week revised from 388,000). The four-week average is
telling the story, down 3,500 in the week for a 410,750 level that is down
nearly 20,000from a month ago…’
Jobs growth disappoints, but jobless rate falls (Reuters)

Unemployment Rate At 11.7% Zero Hedge | While today’s unemployment
number came at a low 9.4%, well below expectations, the one and only
reason for this is that the labor force in America has plunged to a fresh 25
year low.
Europe unveils sweeping plans to govern reckless banks London Telegraph |

Brussels has called for sweeping powers for regulators to seize failing EU
banks, sack board members, and impose haircuts on senior bank debt.
Doug Casey: Prepare for Social Upheaval LewRockwell.com | The big question is
not, “Can it happen here?” but, “Will it?” Or maybe, simply, “When?”
China Buys Up EU Government Debt China has been increasing its holdings of
European government debt, including that issued by Spain, amid the euro-
zone crisis, Chinese Vice Commerce Minister Gao Hucheng was quoted as
saying.

Unemployment Rate At 11.7% While today’s unemployment number came at
a low 9.4%, well below expectations, the one and only reason for this is that
the labor force in America has plunged to a fresh 25 year low.
Not Just “Inflation Versus Deflation” … We’ve Got “MixedFlation” and

“ExportFlation” Many people have made persuasive arguments for inflation.
The Contrived Drama of the Debt Ceiling Let the contrived drama of the debt
ceiling begin for the American people.
Gallup Finds Unemployment Increased In December, Underemployment Is At 6
Month High, Blasts Government Data Fudging Following this week’s
ebullient ADP private payrolls report, the sellside has succumbed to an
orgiastic frenzy suggesting that tomorrow NFP number may be as high as
580,000 (as reported earlier).
National / World
US says too much fluoride causing splotchy teeth (AP) [ Actually, flouride’s a
poison which is actually used in such things as ‘rat poison’, but has also
historically been used to make ‘populations’ more docile / controllable. I guess
they figure they’ve finally gotten the controlled american public zombies where
they want them…mission accomplished…no need to waste more flouride. ] In a
remarkable turnabout, federal health officials say many americans are now
getting too much fluoride because of its presence not just in drinking water but in
toothpaste, mouthwash and other ...
Deregulating ‘Frankenfoods’ Jason Douglass | Pioneer, a DuPont Company has

filed with APHIS to have a particular GM corn line deregulated.
Eco-Nazi Orders Americans To Pay Carbon Tax On Children Paul Joseph Watson
| IPCC Professor wants communist-style controls on giving birth.
Alex Jones & Nick Begich On Coast to Coast Infowars.com | Radio host Alex
Jones and researcher Nick Begich comment on the recent bird die-off.
Alex Jones: Eco-Fascists Call For Prison Cities Infowars.com | People who resist
the state controlling every aspect of their existence will be forced to live in
squalid ghettos.
Establishment Republicans Omit Crucial Passage in Constitution Reading Stunt
Kurt Nimmo | The invasion and the spill-over of violence from the Mexican
narco state represents “domestic violence” against the American people.
Government Recommends Lowering Fluoride Levels in U.S. Drinking Water The

U.S. Department of Health and Human Services and the U.S. Environmental
Protection Agency are recommending changing for the first time in nearly 50
years the amount of fluoride allowed in drinking water because of an
increase in fluorosis — a condition that causes spotting and streaking on
children’s teeth.
Homeland Security Hasn’t Made Us Safer DHS serves only one clear
purpose: to provide unimaginable bonanzas for favored congressional
districts around the United States, most of which face no statistically
significant security threat at all.
Establishment Republicans Omit Crucial Passage in Constitution Reading Stunt

The Constitution reading stunt performed by establishment Republicans
designed to placate a co-opted Tea Party fizzled Thursda
Murdered Bush Aide Was An Expert In Chemical, Biological & Cyber-Warfare, Had
Highest Security Clearances Cryptome | John Wheeler III was mysteriously
found in a garbage dump only hours after being seen wandering around with
one shoe in a parking garage. Retired Lt. Gen. McInerney said it ‘had to be a
professional hit job.’
DRUDGEREPORT: NYT SATURDAY: NUMBER OF COMBAT INJURIES IN AFGHANISTAN

APPROACHES IRAQ-WAR LEVELS... DEVELOPING...
'WE'RE DIGGING OUT OF A HOLE' [ Example of sentiment: some comments - ‘…Barack
Obama is a cooked goose. He is absolutely the most incompetent president of the
U.S. ever, so he continues to spin the numbers in such a manner that might make
him look good. News for him: NOTHING will make you look good. Pretty is skin
deep, incompetence goes clear to the bone. "Let his days be few; and let another
take his office." Psalms 109:8- RightStuff, Texas, USA, 7/1/2011 19:45
You know what happens when you keep digging a hole - you reach China and
that is what is going to finish the americans and Obamarama...- Olrik, Canada,
7/1/2011 19:41
'We're digging ourselves out of a hole' - Barack Hussein Obama To get out of a
hole you've dug so deep, is to STOP DIGGING, fill it up with soil so you can climb
OUT OF THE HOLE. STOP SPENDING OBAMA! STOP PRINTING MONEY! The US
dollar is weakening against YUAN of China. Republicans better start cutting all
spending, defund/repeal Obamacare, America is flat BROKE! If Republicans can't
rein all spending created by Pelosi and her peons, their DEBT would be BIGGER
than their economy.- Observer, over here, over there, 7/1/2011 19:33
Well the ammo index is still down, I guess having 3,000 rounds is enough-
NVBob, Richland WA USA, 7/1/2011 19:31
Fill in the hole, with Obama in it, at the bottom!- Stan, St Louis, Missouri, USA,
7/1/2011 19:30
As one would expect of a socialist, clueless to the mechanics of a capitalist

system, he seeks to extricate himself from a hole by further digging.- jnsesq,
minimaxi, 7/1/2011 19:29 Read more:
http://www.dailymail.co.uk/news/article-1345047/Glimmer-hope-U-S-
economy-jobless-rate-falls-lowest-level-19-months.html#ixzz1APmJZga7’ ]
Jobs report an 'utter mess'... ‘…However, some economists were less optimistic.
'It's a bit of a mixed bag,' said Ryan Sweet, an economist at Moody's Analytics.
Many analysts hoped to see larger job gains, and the drop in the unemployment
rate is unlikely to be sustained, he said. 'The labour market ended last year with a
bit of a thud,' he said…’
China plans $1.3 billion 'seven-star hotel'...
China Backs Europe, Euro for Investing Reserves...
REPORT: Too much fluoride in US water...
CBO Says Repeal Would Reduce Spending by $540 Billion...’The Congressional
Budget Office, in an email to Capitol Hill staffers obtained by the Spectator, has
said that repealing the national health care law would reduce net spending by
$540 billion in the ten year period from 2012 through 2021. That number
represents the cost of the new provisions, minus Medicare cuts. Repealing the
bill would also eliminate $770 billion in taxes. It's the tax hikes in the health care
law (along with the Medicare cuts) which accounts for the $230 billion in deficit
reduction…’
Republicans reject cost estimate on health repeal (Washington Post) [ One

thing’s certain … they’ll agree to disagree … $14 plus trillion and counting and
wobama the b for b*** s*** and co are worried about a couple hundred billion …
tax cuts to the rich … (Davis ‘… This is how we pay off our current debts and I
think bondholders are simply happy to get anything out of a country that admits it
CAREFUL OUT THERE!) ‘Then again, look at the war spending : Drudgereport:
Congresswoman calls Afghanistan 'national embarrassment'... 'Epic failure'...
Rep. Lynn Woolsey (D-CA) talks about the "disastrous" war that is Afghanistan.
"This war represents an epic failure, a national embarrassment and a moral
blight," Rep. Woolsey said. [ True enough! Though broke, they’re still voting for
more war across the board. But even more than that, this war is a blowback-
creating, self-perpetuating, self-destructive, self-defeating, colossally expensive
debacle benefiting only the war profiteers / lobbies and attendant frauds while
diverting attention from the more ’mundane’ tasks of governance of a failing,
pervasively corrupt, defacto bankrupt nation, viz., america. ]
PENTAGON BUDGET SLASH [ Riiiiight! … What’s $80 billion on a trillion dollar
tab especially with those off-budget special items whenever they so choose. ]:
OBAMA TO CUT TROOPS ON ACTIVE DUTY
FEDS BREAK GROUND ON SUPER SPY CENTER (Riiiiight! More spending on
those ultra-efficient super-spies, ie., Iraq on a lie, illegal drug ops, 9-11 NORAD
ordered to stand down, etc., though u.s. defacto bankrupt)...
New Miami Police peeping drone may be first in country; ACLU approves...
Man Arrested for Having 'Suspicious' Bagel on Plane...
Ex-CIA officer charged with leak to NYT reporter...
Packages Cause 'Flash Explosions' At 2 State Gov't Buildings in MD...
One addressed to Gov...
US Treasury asks Congress to lift debt ceiling...
Obama calls Gibbs $174,000 salary 'relatively modest' ( Come on! In pervasively
corrupt, defacto bankrupt america, government jobs for the otherwise
unemployable at those levels are over-priced and over-valued, as are other so-
called executive jobs, ie., fraudulent wall street, etc.. Look at their results! )... ]
Boehner dismisses CBO forecast that rescinding law would raise deficit by about
$230 billion and leave 32 million more Americans uninsured.
Apprehension ahead of Moqtada al-Sadr speech (Washington Post) [ What is he

expected to say?: Thank you america for bombing, invading, and destroying his
nation based on a lie? Thank you america for killing, maiming innocent children,
women, and men? Thank you america for all the depleted uranium you’ve left
behind? Thank you america for removing your america-supported mad-dog tyrant
sadam hussein who foolishly played into his cia handlers’ trap regarding that
green light for Kuwait invasion over the slant-drilling by the latter from April
Glasspie. I don’t think so, and I don’t think the rest of the world nor his fellow
Iraqis think so. ] Lawmakers across Iraq's political and ethnic spectrums wait for
word from anti-American Shiite cleric Moqtada al-Sadr, saying his first address
after returning from nearly four years of self-imposed exile in Iran would likely
say a lot about his approach to Iraq's government.
Insurer claims it was misled by Goldman Sachs on investment (Washington Post)

[ Talk about understatements. After all, who hasn’t been misled by goldmen
sachs and fraudulent wall street generally, on investments. Don’t forget, the
worthless toxic paper commissioned and cashed out by wall street is still
out there in the trillions now marked to anything. ] One of Goldman's clients
says it has sued the bank seeking $120 million in damages.
Milbank: Getting creative with the Constitution (Washington Post) [ Constitution?

Versions? Meaningful laws? Why, this is almost analogous or akin to the
late idi amin reading the Ugandan constitution (1995) from his grave,
certainly in terms of folly! ]Constitutionalism (WP) [ Come on! Constitution
… meaningful american law … Don’t make me laugh! Wake up from the
deep american sleep! Going through the motions, flag pins, etc., ad
nauseum, like a bunch of zombies! ] Krauthammer: It's a promising step to
a conservative future. Wash Post Staffer: Constitution Impossible to
Understand Because It’s Over 100 Years Old [ In a meaningfully lawless
society as pervasively corrupt, defacto bankrupt america, constitution /
laws have become irrelevant in application and effect. After all, even
zimbabwe has a constitution / laws, but I dare say no one would suggest
they have any practical effect in reality, as is also so in america. I therefore
believe Mr. Klein is correct but for reasons other than age and malleability.
Indeed, anyone who has written a legal brief and researched law in support
thereof, ultimately realizes that almost invariably one can find some case /
law in support of almost any position. In america today, it’s the bribe, one
way or another, that carries the day and makes the difference. Ask sam
alito et als. That’s just the way it is in a declining, fallen society as america,
zimbawe, etc.. That’s certainly my direct, sworn experience with these
corrupt courts constituting (in large part along with the other 3 branches)
pervasively corrupt, defacto bankrupt america’s illegal system. Senate
convicts Clinton-appointed judge... [ Come on! One way or another they’re
almost all getting bribed; including the initial lifetime appointment as alito,
trump-barry, etc.. Abolish the corrupt, costly, economically wasteful
lifetime extravagantly appointed federal courts (see RICO case
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpena
ltyofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ) End
those lifetime licenses to steal. ] In earlier hearings, two attorneys who
once worked with Porteous had testified that they gave him thousands of
dollars in cash, including about $2,000 stuffed in an envelope in 1999, just
before Porteous decided a major civil case in their client's favor. ]
Breitbart | On word that the House will open its next session with a first-
ever reading of the U.S. Constitution, blogger Ezra Klein suggests that the
Constitution is irrelevant due to its age and politically-malleable language. ]
Eight key economic decisions of the Obama presidency all point in one
direction.
Oh come on! Watch for the fake jobs report from the ever more desperate,
pervasively corrupt, incompetent, failed, defacto bankrupt u.s. government
(all 3 branches)! Who can believe anything they say? … Drudgereport:
WObama the b for b*** s*** calls Gibbs $174,000 salary 'relatively modest'
( Come on! In pervasively corrupt, defacto bankrupt america, government
jobs for the otherwise unemployable at those levels are over-priced and
over-valued, as are other so-called executive jobs, ie., fraudulent wall street,
etc.. Look at their results! )... …[video] ADP Data Still Fighting For
Credibility [ Come on! Pervasively mob infested, corrupt jersey based ADP?
There’s nothin’ left in desperation for those b.s. / b.e.(bad
economics/finance) talking points and action to froth the market for the
frauds on wall street. This is an especially great opportunity to sell / take
profits because there’s nothin’ there, beyond the smoke and mirrors. This
market’s way over-bought and way over-valued! ] NEW YORK (TheStreet) --
Alan Valdes of DME Securities says the market focused on the job revision
data as ADP is still viewed with skepticism.
1 in 6 Americans Live in Poverty Tradermark ‘One of the biggest mega trends

happening in America is the bifurcation of society between the haves and the
have nots. Many of the jobs the 'underclass' once did are gone forever, while
others spent freely when times were good, and when the tide turned, have little
buffer. [Dec 8, 2007: Do the Bottom 80% of Americans Stand a Chance?] After all,
saving for a rainy day is what boring people do. Others really never got off the
ground, as the K-12 education system has degraded dramatically the past few
decades.Frankly the underlying trend - as bad as it is on the surface - has been
hidden by multiple bubbles, and most recently, there has been a level of
government assistance never seen before. [Nov 5, 2010: USA Today - Anti-
Poverty Programs Surpass Cost of Medicare] In terms of government spending.
This brings up a host of issues as any changes to the social safety net are going
to send millions past GO and directly to impoverished status (and yes there are
people gaming the system, but not tens of millions). There are myriad societal
effects of the transformation of America from a relative egalitarian society in the
1960s to a 2 or 3 class system - but those are topics for other posts we have
done.The official U.S. government tally of who is living in poverty is a joke. We
last looked at it about 16 months ago [Sep 19, 2009: US Poverty Rises to 11 Year
High - But Still Vastly Understated] For example, if you make $23,000 for a family
of 4 - you are not in poverty. If you are single and make $14,000 you are not in
poverty. I'm not sure in what counties except for rural Mississippi you can
accomplish that cost of living, but apparently the government believes a middle
class lifestyle is available at $25K for a family of 4 in all of America. Or at least it
would be inconvenient to admit otherwise. And yes once more let me put the
caveat that being "poor" in America is different than being poor in Malawi, but in
theory we should be comparing ourselves to other first world countries.The AP
has an interesting report of a new measure of poverty in the U.S., based on the
census. It has a different band of parameters and shows an increase over the
government's incredibly generous definition of poverty. What is striking is the
large increase in those in the over 65+ camp who fall into poverty. Due to our
consumption culture (encouraged by the government at every turn, since we've
transformed our economy from good producing to services and consumption)
many are entering the golden years with little to nothing.Where once many had
their mortgage paid off by the time they retired and hence could live on a much
lower income as their largest expense was eliminated, now after a generation of
serial refinancing and cash out to finance buying 'what we deserve', many still
have the mortgage to worry about even at age 70+. There are many other factors
we've discussed often - i.e. the move from pensions to do it yourself savings in a
country where saving is a sin and spending is worshiped, the disaster that is the
401k system, etc. Unlike the mortgage crisis which is playing out in a relative
short period of time (6-8 years), this grand economic experiment of running an
economy on consumption & services (you do my nails, I'll cut your hair, you
serve me a beer, I'll cut your lawn, you build a house, I'll default on it) is taking
decades to play out. But we're starting to see the first wave of results the past 5-
10 years, and it's not pretty.Bigger picture, there are enormous stresses being
formed at the bottom end of the society, and more and more are being caught in
the net. Anyone who truly believes there will be any serious spending cuts at the
federal level does not realize the (increasing) dependency that has been created
by the a multitude of poor decisions over the past few decades. Indeed we fast
approach the time when 1 in every 5 dollars of "income" are government
transfers. [May 25, 2010: 1 in 5.5 Dollars of American Income Now Via
Government; All time High] At this point, the genie is out of the bottle and with a
dysfunctional government whose only solution is layer on more debt to kick the
can down the road, our modern day plutonomy only grows in power. [Sep 7, 2009:
Citigroup - America; A Modern Day Plutonomy] However, there appears nothing
to be worried about since we've been well trained to parrot the fact that as long as
the S&P 500 only goes up, everything in America is fine. Nothing to see here,
move along (buy stocks as you are moving of course).
Via AP
• The number of poor people in the U.S. is millions higher than previously
known, with 1 in 6 Americans -- many of them 65 and older -- struggling in
poverty due to rising medical care and other costs, according to
preliminary census figures released Wednesday.
• At the same time, government aid programs such as tax credits and food
stamps kept many people out of poverty, helping to ensure the poverty rate
did not balloon even higher during the recession in 2009, President Barack
Obama's first year in office.
• Under a new revised census formula, overall poverty in 2009 stood at 15.7
percent, or 47.8 million people. That's compared to the official 2009 rate of
14.3 percent, or 43.6 million, that was reported by the Census Bureau last
September.
• Across all demographic groups, Americans 65 and older sustained the
largest increases in poverty under the revised formula -- nearly doubling to
16.1 percent. As a whole, working-age adults 18-64 also saw increases in
poverty, as well as whites and Hispanics. Children, blacks and unmarried
couples were less likely to be considered poor under the new measure.
• The new measure will not replace the official poverty rate but will be
published alongside the traditional figure this fall as a "supplement" for
federal agencies and state governments to determine anti-poverty policies.
Economists have long criticized the official poverty measure as inadequate
because it only includes pretax cash income and does not account for
medical, transportation and work expenses. (much like inflation, as long as
you don't eat, use energy, pay for healthcare, or have kids in college - you
are fine. For poverty as long as you don't go to the doctor, need to drive to
work, need daycare, or wear clothes at work - your income is sufficient)
• "Under the new measure, we can clearly see the effects of our government
policies," said Kathleen Short, a Census Bureau research economist who
calculated the revised poverty numbers. "When you're accounting for in-
kind benefits and tax credits, you're bringing many people in extreme
poverty off the very bottom."
• The official measure is based on a 1955 cost of an emergency food diet and
does not factor in other living costs. (that is perverse) Nor does it consider
non-cash government aid when calculating income, which surged higher in
2009 during the recession.
• The effect was seen most notably among older Americans. Under the
official poverty rate, about 8.9 percent lived in poverty, mostly because
they benefit from Social Security cash payments. But when taking into
account out-of-pocket medical expenses and other factors, that number
rises to 16.1 percent.
•
• Among the findings:
--Without the earned income tax credit, the poverty rate under the revised
formula would jump from 15.7 percent to 17.7 percent.
• --The absence of food stamps separately would increase the poverty rate to
17.2 percent.
--Taking into account millions of uninsured people in the U.S. had little
effect in increasing poverty, mostly because those without insurance tend
to forgo medical care rather than find ways to pay for it.
[Feb 20, 2009: NYT - Newly Poor Swell Lines @ Food Banks Nationwide]
[Oct 22, 2010: Reuters - The Haves, the Have Nots, and the Dreamless Dead]
[Sep 3, 2010: FT.com - The Crisis in Middle America]
[July 26, 2010: [Video] DatelineNBC - America's Increasing Ranks of Poor]
original article’
Unemployment Claims Are Not What They Appear Adler ‘First-time

unemployment claims rose by 52,038 to 577,279 in the week that ended January
1. The Wall Street captive media is, as usual, fudging the reports by reporting that
claims were at 409,000, based on the seasonal hocus pocus. They report an
uptick of 18,000 instead of 52,000. Both Dow Jones and Bloomberg are
emphasizing that the 4 week moving average dropped sharply. Again, this is
based on seasonally adjusted fudge packing.The truth is that while this year's
end of year rise in claims is better than the past two years, the numbers are still a
lot worse than during good economic times. This week’s jump of 52k compares
with a rise of 88,929 in the week that ended 1/2/10. The chart below shows that the
normal seasonal uptrend is at a lower trend level than the past two years, but well
above 2006-2008. The insured unemployment rate remains well above the 2004-
2008 period. However, even that number may be misleading because it uses a
base number comprised of a 6 month average from the period that ended in June.
Because fewer people are now eligible, the actual rate should be higher.
[chart]Because new claims are limited to those eligible, part of the downtrend in
new claims is due to the millions of persons losing eligibility. To account for that,
the next chart shows new claims as a percentage of those eligible. Here the
improving trend shows evidence of leveling off. The normal seasonal spike at the
beginning of January needs to hold around .053% to keep the downtrend from the
peaks of the past 2 years intact. The green line connects the most recent week
with the same week in prior years. Next week’s data should be the seasonal peak.
[chart]The Department of Labor calculates the total number of covered
employees quarterly, using a 6 month average. The current figure is based on
data from the first half of 2010, which is not very useful now. However, it does
imply that much of the drop in continuing claims has come from those losing
eligibility.[chart]The following chart shows Continued Claims on an inverse scale,
overlaid with stock prices and Fed securities holdings. The inverse Continued
Claims graph is a directional proxy for total employment. The downtick at this
time of year is normal. The trend remains strong which suggests that the
seasonally adjusted payrolls data tomorrow should be positive. The consensus
calls for a gain of 140,000. As I reported in the Wall Street Examiner Professional
Edition Treasury update to subscribers this week, wage tax withholding in
December ran 15% ahead of November, but that probably reflects withholding
from year end bonuses rather than a significant increase in employment levels.
The year to year gain was more muted.[chart]It’s pretty clear from this chart that
the Fed is the driver of these trends, but that other forces are at work causing
diminishing returns.Disclosure: I have no positions in any stocks mentioned, and
no plans to initiate any positions within the next 72 hours.’
Expecting Employment Surprise: Dave's Daily ‘There are a lot of wild estimates
making the rounds for employment data Friday. Consensus estimates for new
jobs added range from 150-200K, but some whisper numbers are as high as 500K
and that would shock many sectors. Meanwhile stocks were hurt early by poorly
received December same store sales (despite bullish headlines to the contrary)
and rebound higher in Jobless Claims. Nevertheless, the dollar continued to rise
as commodity markets were still selling-off. The buzz remains inflation is heating
up particularly in food and energy so investors fear tightening even as the Fed is
engaged in QE. Now that's interesting!! Bond prices remained rather stable. The
Fed tossed in more POMO activity Thursday. As that was announced stocks
immediately rallied if only briefly. What a coincidence! In advance of the all-
important employment report volume remained light and breadth negative.’
Are Investors Concerned About Rising Gas Prices? Rotblut ‘Bullish sentiment
extended its streak of above-average readings to 18 consecutive weeks in the
latest AAII Sentiment Survey. This is the longest such streak since 2004. The
percentage of individual investors expecting stock prices to rise over the next six
months rose 4.3 percentage points to 55.9%. The historical average is
39%.Neutral sentiment, expectations that stock prices will stay essentially flat
over the next six months, fell 2.5 percentage points to 25.9%. Neutral sentiment
has been below its historical average of 31% for 22 consecutive weeks.Bearish
sentiment, expectations that stocks prices will fall over the next six months,
slipped 1.8 percentage points to 18.3%. Bearish sentiment has been below its
historical average of 30% for 15 out of the last 17 weeks.Bullish sentiment
remains at historically high levels. One example of this is the eight-week moving
average of bullish sentiment, which is above 51% for the third consecutive week.
(It is at 51.4%.) This measure has not been higher since January 2005. Other
measures also suggest sentiment is running hot, including the spread between
bullish and bearish sentiment (37.6 percentage points) and the standard deviation
(bullish sentiment is more than one standard deviation above the historical
mean). High bullish readings have been correlated with market pullbacks, but
other indicators should be analyzed before predicting where stocks prices are
headed.Individual investors are continuing to feel optimistic about stock prices
due to, in part, the sustained rally and additional signs that the economy is
recovering. News of upbeat 2011 forecasts from several market strategists is also
playing a role.This week’s special question asked AAII members whether they are
concerned about the potential impact rising gasoline prices will have the
economic recovery.About half of respondents described themselves as being
somewhat worried about rising prices at the pump. Many did think the economy
will grow, though the pace of the recovery might be slowed. Several members
added the caveat that their concerns are dependent on how high prices actually
rise. A small number thought higher prices would be good for their energy
holdings or would increase demand for fuel-efficient vehicles and other green
initiatives. Here is a sampling of the responses:
• “I believe gasoline must approach $4 per gallon before having a sizable

impact on other parts of the economy.”
• “Higher inflation equals a real tax on investors. It could be a drag on the
economy, but the economy will still grow.”
• “I’m worried, but I think the recovery can still proceed, especially if
Congress provides some direction for job growth.”
• “I’m not too worried. Higher gas prices will be a slight drag, but not
sufficient to significantly slow down the economy.”
• I’m somewhat worried; higher fuel prices may slow the economy some, but
they may also help the environment.”
This week’s sentiment survey results:
• Bullish: 55.9%, up 4.3 percentage points

• Neutral: 25.9%, down 2.5 percentage points
• Bearish: 18.3%, down 1.8 percentage points
Historical Averages:
• Bullish: 39%
• Neutral: 31%
• Bearish: 30%
The AAII Sentiment Survey has been conducted weekly since July 1987 and asks
AAII members whether they think stock prices will rise, remain essentially flat, or
fall over the next six months. The survey period runs from Thursday (12:01 a.m.)
to Wednesday (11:59 p.m.). The survey and its results are available online.’
Less Than 35% of All Stocks Are Undervalued Suttmeier ‘ValuEngine now shows
that only 34.6% of more than 5,000 stocks are undervalued with 65.4% overvalued. A
reading below 35% may persist for a while, but typically the stock market tops out when
less than 35% of all stocks are undervalued. Fifteen of 16 sectors are overvalued by
8.6% for Consumer Discretionary to 33.1% for Basic Industries. Medical is the
undervalued sector, but only by 1.4%. The major equity averages are extremely
overbought on both daily and weekly charts. The missing ingredient for a top is the lack
of nearby risky levels for the major averages. The major equity averages straddle
quarterly value levels, pivots and risky levels favoring a reversal-oriented first quarter –
11,395 Dow, 1162.5 SPX, 2853 NASDAQ, 4671 Transports and 765.50 Russell 2000.
The rise in the 30-year yield above 4.5% is a major drag on equity valuations. With
stock market complacency as high as it is, Comex gold closed below its 50-day simple
moving average at 1380.6 for the first time since August 11. Nymex crude oil is above
this week’s pivot at $88.50. The euro is between its 200-day at 1.3080 and its 50-day at
1.3422, approaching a test of the 200-day. The Dow is well above my annual pivot at
11,491 without a nearby risky level as the MOJO run continues. Valuations are
stretched with only 16.1% of all stocks undervalued by at least 20%, whereas 33.0% of
all stocks are overvalued by more than 20%.[chart](Click to enlarge)
It is difficult to find stocks to add to the ValuTrader Model Portfolio as only 76
stocks are rated STRONG BUY or BUY with a market cap of at least five billion and
average daily trading volume of 500,000 shares or more, and projected to gain at least
7.5% over the next twelve months. There are twelve stocks in the model portfolio.
Key Levels From My Proprietary Analytics
10-year Note – (3.483) Weekly, annual and semiannual value levels are 3.714, 3.791
and 4.268 with a daily risky level at 3.371. Annual, semiannual and monthly risky levels
are 2.690, 2.441, 2.322 and 2.150.
Comex Gold – ($1373.7) Annual, semiannual and annual value levels are $1356.5,
$1300.6 and $1187.2 with a weekly pivot at $1380.0. Daily, monthly, quarterly and
semiannual risky levels are $1412.74, $1439.0, $1441.7 and $1452.6.
Nymex Crude Oil – ($90.30) Semiannual and monthly value levels are $87.52 and
$75.74 with a weekly pivot at $88.50. Annual, semiannual and quarterly risky levels are
$99.91, $101.92, $107.14 and $110.87.
The euro – (1.3149) Monthly and weekly value levels are 1.2805 and 1.2703 with
quarterly and daily pivots at 1.3227 and 1.3358, and semiannual and annual risky levels
at 1.4624, 1.4989, 1.6367 and 1.7312.
Daily Dow: (11,723) Annual, quarterly, weekly, semiannual, monthly and semiannual
value levels are 11,491, 11,395, 11,334, 10,959, 10,427 and 9,449 with a daily pivot at
11,687, and annual risky level at 13,890.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours.’
Retailers hold down stocks ahead of jobs data (Reuters) - Stocks slipped on
Thursday as soft retail sales and a sharp rise in the dollar left investors edgy a
day before December's U.S. employment report.
Doug Casey: Prepare for Social Upheaval LewRockwell.com | The big question is
not, “Can it happen here?” but, “Will it?” Or maybe, simply, “When?”
Fed May Keep Easing at ‘Full Throttle’ Until Decline in Unemployment Rate
Bloomberg | Federal Reserve officials signaled they’ll probably push ahead
with unprecedented stimulus until the recovery strengthens and many of the
15 million unemployed Americans find work.
Why Are Taxpayers Subsidizing Facebook, and the Next Bubble? The New York
Times | Is another bubble being formed by ‘too big to fail’ Goldman-Sach’s
valuation of FaceBook?
Record high food prices stoke fears for economy Reuters | Record high food
prices are moving to the top of policymaker agendas, driven by fears they
could stoke inflation, protectionism and unrest and dent consumer demand
in key emerging economies.
White House Defends Obama’s Senate Vote against Raising Debt Ceiling But
Warns of Catastrophe If GOP Doesn’t Raise Debt Ceiling The Obama
administration is warning of catastrophic consequences if Congress does
not increase the debt ceiling, the legal limit on how much the federal
government can borrow, but Barack Obama held a different view on the
issue as a senator in 2006.
2011: Year of the Big Default? Every week, Max Keiser looks at all the scandal
behind the financial news headlines. Watch the full Episode 110 of the
Keiser Report on Thursday.
How High Will Gold Go in 2011? Since CNBC has been issuing a non-stop
barrage of its own version of reality vis-a-vis gold and other precious metals,
it may be time for some counterpoint.
An Avalanche of Liquidity Threatens Us With Inflation With Ben Bernanke as our

Shepherd how can we go wrong? He tells us quantitative easing is not
inflationary.
National / World
‘Maryland Staged Terror’ and ‘Prison Cities’ Top Google Trends Aaron Dykes |
Following two suspicious explosions today in Maryland, the search term
“Maryland Staged Terror” topped Google’s hot trends at #1 this Thursday,
January 6, 2011.
Alex Jones: DEA uses drug war to spy worldwide [ Well, I don’t know about the
spying, but the DEA certainly isn’t serious about putting a real dent the
illegal drug trade inasmuch as they’re hands off the connected u.s.
government connected illegal drug ops, ie., cia, etc., (see RICO case
yofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm )
http://albertpeia.com/FBIAgentAffidavit11.jpg
http://albertpeia.com/CIAAgentAffidavit1.jpg ] Russia Today | The United
States government allegedly infused drugs into our inner cities in order to
keep minorities down and destabilize world governments.
Maryland Staged Terror? FBI Caught Provocateuring Patsies Paul Joseph Watson
| Two explosions in Maryland should be treated with a huge amount of
suspicion.
A Nation Of Truth-Rejecters Chuck Baldwin | The rejection of truth seems

ubiquitous in America today.
Utah Welcomes NSA Mega-Snoop Center Kurt Nimmo | The NSA’s job is to keep
tabs on Americans who disagree with the government
Eco-Fascists Call For Prison Cities People who resist the state controlling every
aspect of their existence will be forced to live in squalid ghettos while the
rest of the population will be tightly controlled in high-tech prison cities –
that’s the future envisaged by eco-fascists who are exploiting the contrived
global warming fraud to openly flaunt their plan for the total enslavement of
mankind.
“The Birds”: Mapping The Global Mass Animal Deaths Graveyard Full interactive
map of the now global mass animal deaths outbreak.
Utah Welcomes NSA Mega-Snoop Center Utah will be home to NSA’s mega-
surveillance program under the aegis of the formerly secret Comprehensive
National Cyber-security Initiative.
‘Birther’ arrested during Constitution reading A woman was arrested in the House
gallery Thursday after interrupting a reading of the Constitution by yelling
out her belief that President Barack Obama is not a natural born citizen of
the United States.
Planned-Opolis: Elitist Agenda For Eco-Enslavement Not content with depicting

children being slaughtered in the name of preventing non-existent global
warming, climate change alarmists have embarked on a new propaganda
campaign lecturing us all about how we will be forced to live in a “planned-
opolis,” where car use will be heavily restricted, CO2 emissions will be
rationed, meat will be considered a rare delicacy, the state will decide your
career, and only the mega-rich elitists enforcing all these new rules and
regulations will be exempt from them.
Authors: CIA waited years to stop nuclear proliferation The US government is

guilty of allowing nuclear materials and intelligence to proliferate among
some of the most dangerous regimes in the world for more than 30 years, a
new book alleges.
Pentagon Plans to Send 1,400 Extra Marines To Afghanistan Defense Secretary

Robert Gates has decided to send an additional 1,400 Marine combat forces
to Afghanistan.
In The Future You May Not Be Able To Provide The Basics For Your Family Even
If Everyone In Your Family Has A Job Today, millions of American families
are extremely stressed out because they are working as hard as they can
and yet they find at the end of the month they still haven’t been able to pay
all of the bills.
Drudgereport: Congresswoman calls Afghanistan 'national embarrassment'...

'Epic failure'... Rep. Lynn Woolsey (D-CA) talks about the "disastrous" war
that is Afghanistan. "This war represents an epic failure, a national
embarrassment and a moral blight," Rep. Woolsey said. [ But more than that,
this war is a blowback-creating, self-perpetuating, self-destructive, self-
defeating, colossally expensive debacle benefiting only the war profiteers /
lobbies and attendant frauds while diverting attention from the more
’mundane’ tasks of governance of a failing, pervasively corrupt, defacto
bankrupt nation, viz., america. ]
PENTAGON BUDGET SLASH [ Riiiiight! … What’s $80 billion on a trillion
dollar tab especially with those off-budget special items whenever they so
choose. ]: OBAMA TO CUT TROOPS ON ACTIVE DUTY
FEDS BREAK GROUND ON SUPER SPY CENTER (Riiiiight! More spending
on those ultra-efficient super-spies, ie., Iraq on a lie, illegal drug ops, 9-11
NORAD ordered to stand down, etc., though u.s. defacto bankrupt)...
New Miami Police peeping drone may be first in country; ACLU approves...
Man Arrested for Having 'Suspicious' Bagel on Plane...
Ex-CIA officer charged with leak to NYT reporter...
Packages Cause 'Flash Explosions' At 2 State Gov't Buildings in MD...
One addressed to Gov...
US Treasury asks Congress to lift debt ceiling...
Obama calls Gibbs $174,000 salary 'relatively modest' ( Come on! In
pervasively corrupt, defacto bankrupt america, government jobs for the
otherwise unemployable at those levels are over-priced and over-valued, as
are other so-called executive jobs, ie., fraudulent wall street, etc.. Look at
their results! )...
As euro zone expands, tension remains between weak, strong (Washington Post)
[ Sounds like a scenario analogous to that in the USSAD, united soviet
states of american disunity. After all, how can you justify fraudulent (ie., wall
street, etc.) national sinkholes as mob corrupted new york, mob-infested,
pervasively corrupt jersey, etc..] German deficit hawks gained an ally
Saturday when Estonia became the 17th member of the euro zone.
U.N. group warns of possible food crisis (Washington Post) [ Possible? How
‘bout it’s already begun and hence, inevitable particularly since worldwide with
few exceptions in looking to the u.s. as analogous to the self-destructive
compulsion of an addict or drunk they’ve jumped on the american crazy train,
from perpetual wars, to profligate spending, to over-printing of fiat paper
currencies, to mark to anything burial and cover-up and no-pros of fraudulent
paper schemes of the fraudulent wall street ilk / variety, etc. ] The Food and
Agricultural Organization said Wednesday that the world faces a "food price
shock" after the agency's benchmark index of farm commodities prices shot up
last month.
IRS ombudsman: Heavy hand isn't working (Washington Post) [ Heavy hand,
indeed; but in reality, a weak one at that BECAUSE, you can’t pay what you
don’t have … then again, many people are wondering just what they’re
paying for in these admittedly hard times; viz., perpetual and protracted
wars, bailouts for the opulent frauds on wall street, profligate spending, rich
plushly accoutered federal jobs for slugs of different stripes and failed
performance, etc.. ] By making it harder for taxpayers to get back on their
feet, the IRS might actually reduce long-term tax collections, an in-house
report says.
Fed will be in watch mode (Washington Post) [ Riiiiight! … That eternally vigilant
friend only of fraudulent wall street fed … ‘watch’ … as in boob tube? How
the (‘no recession’ as per fed) recession (ongoing and great as in
depression) imploded states' finances see infra) After a tumultuous 2010,
what's on tap for Ben S. Bernanke and the Federal Reserve in 2011?
How the recession imploded states' finances (Washington Post) [ This is truly no
joke! Municipal Debt Threatens U.S. Economy Lim ‘The debt crisis that has taken
down banks, and even countries, threatens more than 100 American
municipalities this year. According to Meredith Whitney, who works as a US
research analyst, local and state debts are the biggest concerns to the US
economy today. It is large enough to derail economic recovery.
She said that,

worth of defaults.
We spent too much on everything. We spent money we didn’t have.

We borrowed money just crazily. The credit card’s maxed out, and
it’s over. We now have to get to the business of climbing out of the
hole. We’ve been digging it for a decade or more. We’ve got to climb
now, and a climb is harder.
Cities from Madrid to Detroit are struggling to pay off even just basic services
such as street cleaning. Ms. Whitney’s comments are likely to put focus on
municipal bonds. She is ranked as one of the most influential women in American
business. While working for Oppenheimer, a New York investment bank, she
predicted that Citibank will cut its dividends. Although she suffered from a lot of
criticisms then, her analysis proved to be correct as the bank was forced to seek
government bail-out. Ms. Whitney has since started her own consulting firm.
Deficit Already Affecting Public Spending
American states have spent almost $500 billion more than tax revenues. In
addition, they face another $1 trillion hole in pension funds. Already, Detroit is
cutting road repairs, cleaning services, police, and lighting expenditures which
affects 20% of the population. The city has suffered from nearly two decades of
decline due to US auto outsourcing. It no longer generates enough wealth to
provide services to its 900,000 inhabitants. Meanwhile, Illinois is suffering from
similar ills after spending twice as much as it generated in tax. It is already six
months behind on creditor payments. It owes $400 million to the University of
Illinois alone and has 21% chances of defaulting on its debts. According to CMA
Datavision which is a derivatives information company, this percentage is more
than any other state. Other states such as California and Arizona are also taking
steps to solve their debt problems. California has raised university tuition fees by
32% while Arizona sold its Supreme Court and state capitol buildings before
leasing them back. Florida is another state that may be hit by a default; this state
is the center of a real estate boom that went best recently.
Philip Brown, the managing director of Citigroup in London said that,
It’s all part of the same parcel: public sector indebtedness needs to
be cut, it needs a lot of austerity and it hit the central government
first, and now is hitting local bodies.
Unlike banks and other financial institutions, “cities are their own”. According to
Andres Rodriguez-Pose, a professor of economic geography at the London
School of Economics, “cities will have to pay for their debts, and in some cases
they will have to carry out dramatic cuts, such as Detroit’s.” If there is a city that
best symbolizes distressed local finances, it is Vallejo in California. Vallejo is a
former US navy town located near San Francisco. It has entered into Chapter Nine
bankruptcy protection in 2008 and the effects are still resonating up to this day.
The city is trying to negotiate with the unions, which has refused to accept a plan
to cut salary two years ago. Vallejo has a population of around 120,000 but it
carries $195 million in unfunded pension obligations. The town does not have
enough local industry to sustain its finances; property tax collection dropped
dramatically upon the collapse of the real estate market. Vallejo is given a C
rating by Standard & Poor, the lowest level. US cities are more susceptible to
defaults than their European counterparts because it relies mainly on municipal
bonds while European towns depend on government bailouts and bank loans.
Gold Expectations for 2011
Now, let’s take a look at long-term gold chart (courtesy of StockCharts.com) to
see how bullion fared this week:
[chart] For some time, gold has tried to break the upper border of the rising trend
channel. Gold prices have been wavering from $1,340 to $1,423 since October 5
with a general upward slope. It has often just fallen by a fraction below the rising
trend line. There are signs that a break-out could be seen soon. We take into
account that gold is quite bullish at the onset of a new year. The $1,600 target still
seems realistic for the early part of 2011. 2010 ended on a high note for precious
metals. Gold ended the year at $1,421 an ounce while silver is at $30.91 an ounce.
Overall, gold prices rose by 30% in 2010 while silver leaped 80%.
Prognostications abound in 2011. These forecasts consider the outlook for
currencies, inflation, and interest rates in the world’s largest economies. We’ll
examine some of the trends that may influence gold prices:Gold prices tend to
rise in times of projected or actual inflation due to the bullion’s status as a “safe
haven” asset. Investors who are seeking an asset that reacts favorably to
currency devaluation and inflation typically move some of their wealth into gold.
Right now, the Fed is more concerned about deflation rather than inflation. As
such, they show little reluctance to flood the US economy with dollars.
Meanwhile, countries such as India and China want stronger economic growth.
The result of this is higher inflation. China’s prices are now 5.1% higher
compared to a year ago while India projects an inflation of 5.5% by March 2011.
But the correlation between high inflation and high gold prices isn’t set in stone.
Although more inflation will initially favor high gold prices, the countervailing
policy of keeping interest rates to control inflation sometimes makes interest-
bearing instruments more attractive. As of now, however, rates are not high
enough to have an impact on gold prices. Historically, the first two months of the
year are good for gold. Buyers seek back the gold positions they shed going into
the New Year. The continuing inflationary concerns can further support prices in
2011. The Reserve Bank of India said that inflation is not slowing down as quickly
as desired. In the US, there are reports that companies are experiencing higher
costs for staffing and/or materials, but these costs are not yet being felt by the
customers. According to Frank Holmes, the CEO of US Global Investors, “The
two pillars of gold are, in any country’s currency, are negative real interest rate
and deficit spending.” Mr. Holmes believes that low interest rates won’t go away
anytime soon as this would be “catastrophic” to the financial system.’
Video: State pensions face 'death spiral' Wash.Post (It’s not just state and local
… it’s national, ie., social security, medicare, Medicaid, veterans, etc., and as
well, some companies. ) Sept. 15 (Bloomberg) -- U.S. state pensions such as
Illinois, Kansas and New Jersey are in a "death spiral," with assets at many
insufficient to cover benefits, payouts consuming a growing portion of
resources and costs rising twice as fast as investment gains. Bloomberg's
Monica Bertran reports. (Source: Bloomberg) (Bloomberg)
] The recession blew a huge hole in the already shaky finances of state
governments, causing them to lose nearly one-third of their revenue in 2009,
according to a Census Bureau report released Wednesday.
[video] ADP Data Still Fighting For Credibility [ Come on! Pervasively mob
infested, corrupt jersey based ADP? There’s nothin’ left in desperation for
those b.s. / b.e.(bad economics/finance) talking points and action to froth the
market for the frauds on wall street. This is an especially great opportunity
to sell / take profits because there’s nothin’ there, beyond the smoke and
mirrors. This market’s way over-bought and way over-valued! ] NEW YORK
(TheStreet) -- Alan Valdes of DME Securities says the market focused on the
job revision data as ADP is still viewed with skepticism.
World Food Prices Rise: Get Ready for the Riots? [ Food Riots Next? FAO Says
Food Prices Surpass Record Highs Seen During 2007-2008 Bubble
infowars.com / prisonplanet.com The last time food prices hit ridiculous levels,
the immediate outcome was global food riots in places such as Haiti and
Bangladesh. ] Tradermark ‘As the 'financialization' of every commodity of earth
continues at pace, and easy money pours out of almost every major central bank,
we have now reached the point where food prices have surpassed the record
levels of 2008. [Feb 12, 2008: Wheat is Being Ruined by ... what else... Hedge
Funds and Speculators] [Apr 28, 2008: Wall Street Grain Hoarding Brings
Farmers, Consumers Near Ruin] [Apr 6, 2008: Agflation Hits Rice - Prices Up 50%
in 2 Weeks] What happened back then? Just some minor issues such as rioting
in many '2nd' and '3rd' world countries. Looks like we need to prepare for another
hot summer. And domestically those food stamps are not going to go quite so far
as they used to. [Nov 10, 2009: Walmart Executive - "There are Families Not
Eating at the End of the Month"]
Oh well, just consider it collateral damage in The Bernank's plan to make us (and
Goldman, JPMorgan, et al) all rich via asset inflation. (I will stop by some local
food banks to let them know they can make some mad money in the markets to
offset the rising prices) Just remember to blame it all on China - that was a great
excuse back in 08, even though we saw once leverage was taken out of the
financial system prices of commodities suddenly crashed. This repeating
epidemic has no relationship at all with financial speculation at all. Nope.
On a related note - a tip of the hat to Congress for the recent ethanol funding
expansion, snuck in during the lame duck. If there is one thing that makes sense
when we have the potential for global food crisis, it is putting inefficient corn in
our cars. [Mar 27, 2008: WSJ - Farm Lobby Beats Back Assault on Subsidies] The
main saving grace at this time is rice, which is massively important in the East.
Too bad there is not a rice ETF or else speculators with Ben's easy money supply
and demand dynamics could push it up much more quickly.
Via Bloomberg:
• World food prices rose to a record in December on higher sugar, grain and
oilseed costs, the United Nations said, exceeding levels reached in 2008
that sparked deadly riots from Haiti to Egypt.
• An index of 55 food commodities tracked by the Food and Argiculture
Organizartion gained for a sixth month to 214.7 points, above the previous
all-time high of 213.5 in June 2008, the Rome-based UN agency said in a
monthly report. The gauges for sugar and meat prices advanced to
records.
• Sugar climbed for a third year in a row in 2010, and corn jumped the most
in four years in Chicago. Food prices may rise more unless the world grain
crop increases “significantly” in 2011, the FAO said Nov. 17.
• Last month’s year-on-year rise compares with the 43 percent jump in food
costs in June 2008. Record fuel prices, weather- related crop problems,
increasing demand from the growing Indian and Chinese middle classes,
and the push to grow corn for ethanol fuel all contributed to the crisis that
year.
• “In 2008 we had rapid increases in petroleum prices, fertilizer prices and
other inputs,” Abbassian said. “So far, those increases have been rather
constrained. It doesn’t really reduce the fear about what could be in store
in the coming weeks or months.”
• In response to the 2008 crisis, countries from India and Egypt to Vietnam
and Indonesia banned exports of rice, a staple for half the world.
Skyrocketing food prices sparked protests and riots in almost three dozen
poor nations including Haiti, Somalia, Burkina Faso and Cameroon.
• Rough rice last traded at $13.90 per 100 pounds in Chicago, compared with
$20.21 at the end of June 2008.
• The surge in the FAO food index is principally on the back of rising costs
for corn, sugar, vegetable oil and meat, which are less important than rice
and wheat for food-insecure countries such as Ethiopia, Bangladesh and
Haiti.’
Rising Asset Prices Cannibalize U.S. Growth Simon Maierhofer, On Wednesday

January 5, 2011, 7:44 pm EST
‘Rising asset prices are bad for investors! At first glance this statement makes no sense
at all. Upon closer examination, however, there is much truth to this statement. Bear
with me for a couple of minutes and you'll see what I mean.
Rising Oil Prices - Good or Bad?
Perception seems to have a bigger influence on news coverage than facts. A recent
Wall Street Journal front-page headline read that: 'Oil back at $90 as growth gains
pace.'According to the WSJ reporter, 'the recovery in oil prices is an encouraging sign of
world growth.' Wait a minute. Since when are rising oil prices (NYSEArca: USO - News)
good for the economy?In early 2008, when oil prices were rising, economists were in
agreement that the ripple effect of rising crude would sap the American consumer of
precious discretionary funds.Obviously, the concept of cause and effect is subject to
interpretation. The same cause (rising oil prices) had a different effect in 2008 than it
has today. In 2008 it stifled the economy; in 2011 it's viewed as a sign of
improvement.Because rising oil prices affect everybody, they are often compared to a
flat tax - like a sales tax. More money spent on taxes means less money spent on items
that help improve the economy. In fact, some economists argue that rising crude
negates much or all of the monetary benefits of the tax cut extension.
Rising Commodity Prices - Good or Bad?
If you've had your money in any single commodity like gold (NYSEArca: GLD - News),
silver (NYSEArca: SLV - News), agriculture (NYSEArca: DBA - News) or broad
commodity funds (NYSEArca: DBC - News), count yourself happy, but don't get
greedy.Commodities had a great run, but similar to high oil prices, high commodity
prices cannibalize economic growth. Why? The more money needed to spend on food
staples, the more careful you have to be with your discretionary spending.In a still
battered real estate market, homebuilders (NYSEArca: XHB - News) have to pass on
the extra cost of rising timber, iron and copper prices. What this economy needs is an
uptick in real estate prices, not a bigger price tag for building or remodeling homes.
Major Growth Engines in Trouble
Despite rising commodity prices, inflation has been a non-issue domestically, largely
because retailers don't have much pricing power.According to Dr. Jim Walker, Founder
of Asianomics Limited, higher commodity prices are already impoverishing large parts of
emerging markets (NYSEArca: EEM - News) and are sucking the demand from the poor
and middle-income class of society.Demand from the middle-class is the growth engine
of a healthy economy. Stifling the growth of the world's largest consumer base - China
(NYSEArca: FXI - News) - can't be good for business.
The 'New Economy'
Many readers remember a time when the U.S. was a production powerhouse, when
General Electric earned profits with items of tangible value not TV stations and financial
products; a time where GDP was built on ingenuity, hard work and sweat.The ingenuity
portion of the equation is still alive, but look at its transition. The country's biggest and
most successful company - Apple - manufactures and assembles nearly all of its
products in China.The country's newest and most powerful companies - Groupon and
Facebook - were created out of thin air. No disrespect to Mark Zuckerberg and Andrew
Mason - they came up with the right concept at the right time - but what role does
Facebook and Groupon play in the 'new economy?'Facebook is valued at $50 billion,
that's more than triple the market cap of Alcoa. How and what does Facebook
contribute to U.S. gross domestic products (GDP) and real organic economic growth?
Yes, Facebook employs about a thousand people, but what else?How about Groupon?
Groupon is an ingenious business model and has changed (or is about to change) the
way Americans shop. Wall Street is cheering Groupon and can't wait for the IPO.
However, the new way of buying nurtures frugality and robs restaurants and retail stores
of their pricing power. Consumers just won't buy unless they get a 50%+ discount.Don't
get me wrong, I have an above average appreciation for coupons - probably because
there was no such thing when I grew up in Germany- but Groupon is the antidote to
inflation. My guess is that even Bernanke would agree.
Air-pocket Protection
I often hear that technical indicators don't work in an environment where the Fed
controls the market and inflates prices at will.If you believe the Fed is pumping up major
indexes like the Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq (Nasdaq: ÎXIC) you
must be wondering how long that will work. If this rally isn't value driven - which in my
humble opinion it isn't - stocks have nowhere to go but down, eventually.In essence, the
Fed is creating a new bubble in an attempt to mop up the spill left behind by the
previous bust. It doesn't take an investment wizard to figure out that this bubble will also
burst, eventually. When it does, it will probably get ugly.How do you invest in a market
where another potential meltdown lurks behind every correction? You monitor the
markets vital signs. How? Technical indicators are the best way.
Technical Analysis - More Valueable than Ever
Using purely technical gauges, the ETF Profit Strategy Newsletter has identified various
long-risk entries (to the upside) since the S&P broke above its 200-day moving average
(at the time at 1,115).Technical analysis includes, but is not limited to, interpreting the
effect candle formations, chart patterns (such as the ascending triangle or W pattern),
acceleration bands, Fibonacci levels, and trading brackets have on prices.A technical
approach to the market takes the bias out of investing. Personally, I am bearish on the
market, but have learned to trust technicals and wait for high probability set ups, long or
short.Despite the recent sentiment extremes, which rivaled or exceeded readings
recorded at the 2007 highs, the ETF Profit Strategy Newsletter has been expecting
prices to reach 1,285 for the S&P. [chart]On December 12, the newsletter commented
as follows on the W pattern: 'The W pattern (opposite of the bearish M pattern) is a
bullish pattern. The upside target is calculated by the difference between the left side of
the W and the bottom of the W (1,227 - 1,173 = 54). The difference is then added to the
right breakout of 1,227 (1,227 + 54 = 1,281).'Markets tend to reverse around major
resistance points, one of which surrounds the 1,281 area. What happens when stocks
(or other asset classes) change direction from up to down? Will it be a temporary
correction or a protracted decline?’
Municipal Debt Threatens U.S. Economy Lim ‘The debt crisis that has taken down
banks, and even countries, threatens more than 100 American municipalities this
year. According to Meredith Whitney, who works as a US research analyst, local
and state debts are the biggest concerns to the US economy today. It is large
enough to derail economic recovery.
She said that,

worth of defaults.
We spent too much on everything. We spent money we didn’t have.

We borrowed money just crazily. The credit card’s maxed out, and
it’s over. We now have to get to the business of climbing out of the
hole. We’ve been digging it for a decade or more. We’ve got to climb
now, and a climb is harder.
Cities from Madrid to Detroit are struggling to pay off even just basic services
such as street cleaning. Ms. Whitney’s comments are likely to put focus on
municipal bonds. She is ranked as one of the most influential women in American
business. While working for Oppenheimer, a New York investment bank, she
predicted that Citibank will cut its dividends. Although she suffered from a lot of
criticisms then, her analysis proved to be correct as the bank was forced to seek
government bail-out. Ms. Whitney has since started her own consulting firm.
Deficit Already Affecting Public Spending
American states have spent almost $500 billion more than tax revenues. In
addition, they face another $1 trillion hole in pension funds. Already, Detroit is
cutting road repairs, cleaning services, police, and lighting expenditures which
affects 20% of the population. The city has suffered from nearly two decades of
decline due to US auto outsourcing. It no longer generates enough wealth to
provide services to its 900,000 inhabitants. Meanwhile, Illinois is suffering from
similar ills after spending twice as much as it generated in tax. It is already six
months behind on creditor payments. It owes $400 million to the University of
Illinois alone and has 21% chances of defaulting on its debts. According to CMA
Datavision which is a derivatives information company, this percentage is more
than any other state. Other states such as California and Arizona are also taking
steps to solve their debt problems. California has raised university tuition fees by
32% while Arizona sold its Supreme Court and state capitol buildings before
leasing them back. Florida is another state that may be hit by a default; this state
is the center of a real estate boom that went best recently.
Philip Brown, the managing director of Citigroup in London said that,
It’s all part of the same parcel: public sector indebtedness needs to
be cut, it needs a lot of austerity and it hit the central government
first, and now is hitting local bodies.
Unlike banks and other financial institutions, “cities are their own”. According to
Andres Rodriguez-Pose, a professor of economic geography at the London
School of Economics, “cities will have to pay for their debts, and in some cases
they will have to carry out dramatic cuts, such as Detroit’s.” If there is a city that
best symbolizes distressed local finances, it is Vallejo in California. Vallejo is a
former US navy town located near San Francisco. It has entered into Chapter Nine
bankruptcy protection in 2008 and the effects are still resonating up to this day.
The city is trying to negotiate with the unions, which has refused to accept a plan
to cut salary two years ago. Vallejo has a population of around 120,000 but it
carries $195 million in unfunded pension obligations. The town does not have
enough local industry to sustain its finances; property tax collection dropped
dramatically upon the collapse of the real estate market. Vallejo is given a C
rating by Standard & Poor, the lowest level. US cities are more susceptible to
defaults than their European counterparts because it relies mainly on municipal
bonds while European towns depend on government bailouts and bank loans.
Gold Expectations for 2011
Now, let’s take a look at long-term gold chart (courtesy of StockCharts.com) to
see how bullion fared this week:
[chart] For some time, gold has tried to break the upper border of the rising trend
channel. Gold prices have been wavering from $1,340 to $1,423 since October 5
with a general upward slope. It has often just fallen by a fraction below the rising
trend line. There are signs that a break-out could be seen soon. We take into
account that gold is quite bullish at the onset of a new year. The $1,600 target still
seems realistic for the early part of 2011. 2010 ended on a high note for precious
metals. Gold ended the year at $1,421 an ounce while silver is at $30.91 an ounce.
Overall, gold prices rose by 30% in 2010 while silver leaped 80%.
Prognostications abound in 2011. These forecasts consider the outlook for
currencies, inflation, and interest rates in the world’s largest economies. We’ll
examine some of the trends that may influence gold prices:Gold prices tend to
rise in times of projected or actual inflation due to the bullion’s status as a “safe
haven” asset. Investors who are seeking an asset that reacts favorably to
currency devaluation and inflation typically move some of their wealth into gold.
Right now, the Fed is more concerned about deflation rather than inflation. As
such, they show little reluctance to flood the US economy with dollars.
Meanwhile, countries such as India and China want stronger economic growth.
The result of this is higher inflation. China’s prices are now 5.1% higher
compared to a year ago while India projects an inflation of 5.5% by March 2011.
But the correlation between high inflation and high gold prices isn’t set in stone.
Although more inflation will initially favor high gold prices, the countervailing
policy of keeping interest rates to control inflation sometimes makes interest-
bearing instruments more attractive. As of now, however, rates are not high
enough to have an impact on gold prices. Historically, the first two months of the
year are good for gold. Buyers seek back the gold positions they shed going into
the New Year. The continuing inflationary concerns can further support prices in
2011. The Reserve Bank of India said that inflation is not slowing down as quickly
as desired. In the US, there are reports that companies are experiencing higher
costs for staffing and/or materials, but these costs are not yet being felt by the
customers. According to Frank Holmes, the CEO of US Global Investors, “The
two pillars of gold are, in any country’s currency, are negative real interest rate
and deficit spending.” Mr. Holmes believes that low interest rates won’t go away
anytime soon as this would be “catastrophic” to the financial system.’
Oil Continues Steady Climb Kurt Nimmo | Oil exec predicted $5 per gallon gas
prices within two years.
Russia-China oil pipeline opens BBC News | The first oil pipeline linking the
world’s biggest oil producer, Russia, and the world’s biggest consumer of
energy, China, has begun operating.
Oil Continues Climb In Line With Lindsey Williams’ Prediction On December 16,
Lindsey Williams told Alex Jones the price of crude oil will soon hit $150-200
per barrel and this would translate into gas prices in the range of $4-5 per
gallon. Williams, an ordained Baptist minister who went to Alaska in 1971 as
a missionary, was told about the price increase by insiders in the oil
industry he had befriended.
Everything Is Falling Apart: America’s Decaying Infrastructure If you haven’t

noticed lately, America is literally falling apart all around us. Decaying
infrastructure is everywhere. Our roads and bridges are crumbling and are
full of holes.
When States Default: 2011, Meet 1841 Land values soared. States splurged on
new programs. Then it all went bust, bringing down banks and state
governments with them.
Oil Prices Enter The Danger Zone High oil prices threaten to derail the fragile
economic recovery among developed nations this year, the leading energy
watchdog has warned, putting pressure on the Opec oil cartel to increase
production.
World Food Prices Rise to Record on Sugar, Meat Costs World food prices rose
to a record in December on higher sugar and meat costs, the United Nations
said, exceeding levels reached in 2008 that sparked deadly riots from Haiti to
Egypt.
National / World
Confirmed: Ventura’s Conspiracy Theory Episodes Disappearing from DVRs Kurt

Nimmo | Concerted effort by TiVo, AT&T, Comcast to memory hole Police
State FEMA show.
Choice Of A New World Order Jason Douglass | High fructose corn syrup is
engineered to make you fat and unhealthy.
Recipe for a Successful 2011 Ron Paul | Will a new Congress elected on the
energy of the Tea Party movement find the courage to change course?
Censored Jesse Ventura Show On FEMA Camps Survives On You Tube

Infowars.com | During his last appearance on the Alex Jones Show, Jesse
Ventura confirmed that TruTV was forced to pull the show from their
schedule due to government threats.
Big Sis Responds In Lawsuit To Suspend TSA Scanners The DHS claims that the
scanners are fully compliant with Constitutional requirements and that all
other claims that the body imaging program is unlawful are “meritless”,
“baseless” and “unfounded”.
Food Riots Next? FAO Says Food Prices Surpass Record Highs Seen During
2007-2008 Bubble The last time food prices hit ridiculous levels, the
immediate outcome was global food riots in places such as Haiti and
Bangladesh.
‘Disorientated and wearing just one shoe’: Bizarre last sighting of top White
House aide found murdered and dumped in landfill The top Pentagon aide
found dead at a landfill site was seen in a confused state 48 hours before his
death wandering around the wrong car park and wearing only one shoe.
Oil Continues Climb In Line With Lindsey Williams’ Prediction On December 16,
Lindsey Williams told Alex Jones the price of crude oil will soon hit $150-200
per barrel and this would translate into gas prices in the range of $4-5 per
gallon. Williams, an ordained Baptist minister who went to Alaska in 1971 as
a missionary, was told about the price increase by insiders in the oil
industry he had befriended.
Mass Bird & Fish Die-Offs Go Global, Spark End Times Panic The mass bird and
fish die-offs that have affected parts of the U.S. over the last week have now
gone global, with Sweden, Brazil and New Zealand becoming the latest
countries to experience a phenomena that has sparked both scientific
intrigue and apocalyptic panic in equal measure.
Censored Jesse Ventura Show On FEMA Camps Survives On You Tube We urge
you to watch the videos below because they might not be around for much
longer. Jesse Ventura’s Conspiracy Theory show about the police state and
FEMA camps, which TruTV never aired because of constant government
harassment and pressure, has already been memory-holed and is now under
threat of being removed from You Tube as well.
Israel said it would keep Gaza near collapse: WikiLeaks Israel told US officials in
2008 it would keep Gaza’s economy “on the brink of collapse” while
avoiding a humanitarian crisis, according to U.S. diplomatic cables
published by a Norwegian daily on Wednesday.
Drudgereport: NATIONAL DEBT TOPS $14 TRILL

DOLLAR FADE: World Bank issues 1st yuan bonds in Hong Kong...
...pushing use of Chinese currency in international markets
Commodities outlook: $100 oil and $1,500 gold...
OIL PRICE 'ENTERS DANGER ZONE'...
FORTUNE: 2011: Year of the bank run?
World Food Prices Rise to Record on Sugar, Meat Costs...
19 Dems vote against Pelosi...
Worst showing for party nominee since 1923...
Angry crowd forces Netanyahu to halt speech...
THE BIG STINK: Rats Having Field Day In NYC after garbage mess...
Canadian river mysteriously turns bright green...
Hundreds of dead birds in TX...
Thousands of dead fish in FL...
Swedish birds 'scared to death'...
40,000 crabs wash up on UK beaches...
MAP...
Fed's bond-buying strategy looks likely to run its course (Washington Post)
[ Neither rain, nor sleet, but only depletion of trees for current and
prospective fiat paper currency printing can keep the no-recession-fed from
their wall street obsessive market-frothing rounds (which will end quite
badly … as such always has … and always will). ] Federal Reserve officials
appear unlikely to stop their controversial strategy of buying Treasury
bonds.
Agency extends Afghan food-supply contract for firm that hired former director
(Washington Post) [ Almost, but not quite as bad as what I experienced with
the pervasively corrupt american illegal system:
• Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was
• Probative and evidentiary documents, affidavits, exhibits, including those turned
October 15, 2010 (*see

infra)
Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
----------
*The foregoing and as indicated therein was previously send 9-14-10 but delivery
confirmation was flawed as set forth below and my inquiries to the u.s. postal service
rebuffed (I believe tampered with inasmuch as your office could not locate same). This
cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease
of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with
Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the
aforesaid and which can reasonably be presumed to have been tampered with, and hence, a
violation of the federal statute concerning same. ]
Protection bureau to hire general's wife (Washington Post) [ Wow! Sounds like a
plan! Talk about insiders and concentrations of power. After all, would you
argue with anything sweet Holly Polly Petraeus proffered with the full weight
of the military behind her. Somehow, though I’m not goin’ to talk ‘bout smell
tests here (you know, that ‘weight of the military thing’), there seems to be
something amiss, not quite right here, ‘cause what and why Hollywood do
this or that …’ ] Holly Petraeus will lead Consumer Financial Protection
Bureau's Office for Service Member Affairs.
Regional unemployment edges down in November (Washington Post) [ No

surprise there with the layer upon layer of bureaucracy, including the
alphabet soup kitchens, viz., cia, nsa, dod, doj, etc., whose ranks can
include loads of temps, gophers, waiters, ‘runners’, (you know, make-shift /
make-work jobs, etc., to froth numbers, despite the nation’s defacto
bankruptcy and reality beyond the bubble.

read….
this point.

United States.

Mexico.

degrees.

degrees.
Timid Tuesday: Is it Safe? Davis ‘… This is how we pay off our current debts
and I think bondholders are simply happy to get anything out of a country that
PLEASE BE CAREFUL OUT THERE! ‘
] The Washington region's unemployment rate dipped only slightly in

November from a year ago.
New Congress, old style (Washington Post) [ Come on! It’s articles like this,
particularly lately by Mr. Milbank, that’ve been hurting my eyes and ears.
One party / administration more corrupt than another in pervasively
corrupt, defacto bankrupt america? You’d need a micrometer to discern the
difference. Those dogs don’t hunt no more. It’s not so long ago that one
can’t remember (Reagan / bush) Iran Contra (which was just another
excuse for operatives / cia / etc., to enrich themselves via illegal drug
trade / arms which they’d do anyway but wrap themselves in the flag as so-
called patriots for legal protection, ie., that so-called purported
‘technicality’ (bribe) that threw out knucklehead accomplice ollie north’s
felony, etc., dumbya bush’s war crimes, war on a lie, wall street’s rampant
and protected fraud, war profiteering, the clinton scandalous, etc., years.
All three branches of the u.s. government are hopelessly and pervasively
corrupt. (see RICO case
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpena
ltyofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ) . But,
let us also grudgingly admit that any accusation of corruption in american
government is at least on its face, true; because, it really is true despite the
concomitant reality of the ‘pot calling the kettle black’ scenario. ] Milbank:
The new GOP majority and its leader, Eric Cantor, are acting a lot like the
Dems they beat.
Short-Term, High-Probability Mean-Reversion Indicator: Overbought Readings

Continue to Increase Crowder ‘It was the best start to a year in over seven years,
but I am not sure how long Monday’s gain will last, at least over the short-
term.According to my High-Probability, Mean-Reversion overbought/oversold
indicator, most of the ETFs I follow have pushed into a short-term “overbought”
to “very overbought” state. As I have stated ad nauseum, when this many ETFs
hit a short-term extreme the market typically takes a short-term reprieve (1-3
days).The XLB position that is currently held in the High-Probability, Mean-
Reversion strategy moved in the red Monday although it was only a slight move.
The position, in my opinion, still looks rather well-positioned given the short-term
extreme overbought state of the market and XLB.Since I placed the trade there
have been some incredibly large positions taken in XLB. Someone sure thinks the
Materials sector (XLB) is headed south. Check it out here.The year ended with
some nice gains as the High-Probability, Mean-Reversion strategy made 9.7%
gains for the month to follow up the 3.7% in November. Not bad for the first two
months of the strategy. Hopefully 2011 will bring allow for more gains in the
strategy.As I stated last week, going back over the last seven years, if you
purchased QQQQ on the 8th trading day of January and held until the end of the
month, you would have had returns of -2.3%, -3.1%, -2.3%, -2.7%, -4.1%, -1.6% and
-7.7%. The median maximum gain during those trades was +0.7% compared to a
median draw down of -5.3%.
Short-Term High-Probability, Mean-Reversion Indicator – as of close 1/03/10
Benchmark ETFs
* S&P 500 (SPY) – 86.5 (very overbought) / RSI (2) – 96.5

* Dow Jones (DIA) –79.5 (overbought)
* Russell 2000 (IWM) – 71.4 (overbought)
* NASDAQ 100 (QQQQ) – 74.5 (overbought)
Sector ETFs
* Biotech (IBB) – 62.5 (neutral)

* Consumer Discretionary (XLY) – 70.5 (overbought)
* Health Care (XLV) – 72.5 (overbought)
* Financial (XLF) – 84.2 (very overbought)
* Energy (XLE) – 89.5 (very overbought) / RSI (2) – 98.8
* Gold Miners (GDX) – 48.5 (neutral)
* Industrial (XLI) – 80.1 (very overbought)
* Materials (XLB) – 91.4 (very overbought) / RSI (2) – 95.7
* Real Estate (IYR) – 85.8 (very overbought) / RSI (2) – 96.0
* Retail (RTH) – 76.2 (overbought)
* Semiconductor (SMH) – 61.8 (neutral)
* United States Oil Fund (USO) – 64.1 (neutral)
* Utilities (XLU) – 68.3 (neutral)
International ETFs
* Brazil (EWZ) – 82.0 (very overbought) / RSI (2) – 98.7
* China 25 (FXI) – 72.2 (overbought)
* EAFE (EFA) – 77.4 (overbought)
* South Korea (EWY) – 91.9 (very overbought) / RSI (2) – 99.1
Commodity ETFs
* Gold (GLD) – 64.9 (neutral)
Ultra Extremes
* Small Cap Bear 3x (TZA) – 24.6 (oversold)

* Small-Cap Bull 3x (TNA) – 74.1 (overbought)
* UltraLong QQQQ (QLD) – 75.4 (overbought)
* Ultra Long S&P 500 (SSO) – 90.2 (very overbought)
* Ultra Short S&P 500 (SDS) – 10.7 (very oversold)
* UltraShort 20+ Treasury (TBT) – 43.5 (neutral)
Disclosure: I am short XLB.’
China Stocks’ Best Forecaster Predicts Further Slump in 2011
Housing: A Drag on the Economy in 2011 (Part 2)
When the Going Gets Tough, Governments Seize Private Pensions Depew ‘If you
were of an Austrian economics bent, and could read Polish, you'd find this article
from Mises.pl, about governments seizing private pension funds to make up for
revenue shortfalls, fascinating. But perhaps you cannot read Polish? Very well.
The Christian Science Monitor has an English version of the article translated via
The Adam Smith Institute Blog.
The most striking example is Hungary, where last month the

government made the citizens an offer they could not refuse. They
could either remit their individual retirement savings to the state, or
lose the right to the basic state pension (but still have an obligation
to pay contributions for it). In this extortionate way, the government
wants to gain control over $14bn of individual retirement savings.
The Bulgarian government has come up with a similar idea. $300m of
private early retirement savings was supposed to be transferred to
the state pension scheme. The government gave way after trade
unions protested and finally only about 20% of the original plans
were implemented.
A slightly less drastic situation is developing in Poland. The

government wants to transfer of 1/3 of future contributions from
individual retirement accounts to the state-run social security
system. Since this system does not back its liabilities with stocks or
even bonds, the money taken away from the savers will go directly to
the state treasury and savers will lose about $2.3bn a year.
I sure hope the U.S. government doesn't touch my private pension. Wait, I want a
private pension!’ [They already have!]
Beware of the Wall Street Pump Job The Housing Time Bomb [ The old new pump
and dump! ]’ Articles like the one below really bother me after the rally we have
seen in the past two years:
Is the retail investor returning to stocks?
NEW YORK (Reuters) - U.S. stocks just posted back-to-back years of

strong gains, yet the small U.S. investor largely remained a
spectator. Now financial advisers say investors, many of whom rode
out the financial crisis in cash and bonds, are slowly regaining
confidence."What I'm seeing now is there's a lot more talk about
getting into stocks," said David Gottlieb, a Cleveland adviser for
Edward Jones, a nationwide brokerage catering to middle-class
Americans.Gottlieb, who for several months has encouraged clients
to increase their stock allocations, advises reducing bond holdings
and buying dividend-paying stocks.The Standard & Poor's 500 Index
kicked off the new year by rising 1.1 percent on Monday, reaching
levels not seen since the weeks before Lehman Brothers collapsed
in September 2008. Large company shares, as a group, have nearly
doubled since their March 2009 lows, reflecting two years of double-
digit gains.Worries of a banking system collapse and the deepest
recession in more than 70 years drove many retail investors out of
the stock market back in 2008. And the May 2010 "flash crash," when
stocks lost 700 points in minutes for no apparent reason, further
undermined confidence.
Investors showed their dismay by pulling money from stock mutual
funds month after month, opting for the perceived safety of cash and
bonds.
My Take:
What's your point Reuters? Are you telling investors to buy stocks because
confidence is slowly coming back? Is that a solid fundamental reason to buy?Is
now really the time to buy stocks after the equity markets have basically doubled
since the lows?There are just as many money managers advising caution in our
current investment environment as there are money managers who are advising
investors to take on more risk. There are severe structural issues with our
economy that are not going away, and it angers me that just about every article
out of the media slants their articles into suggesting that you should buy
stocks.Shouldn't the media be totally skeptical of Wall St. after watching equities
plummet 50% twice within the same decade? Also, let's not forget that these are
the same criminals that just finished putting of millions of Americans into homes
that they cannot afford which are worth 30% less than what they paid for
them.Shouldn't the press be relentlessly hammering Wall St after causing
Americans so much financial pain in the last decade? I don't get it:Why does Wall
St. always get a free pass when they destroy America's 401k's? Why isn't the
article above titled "Is Now the time to sell stocks after a 90% rally?" The media
needs to understand that they have a responsibility when they write this kinda
fluff. To be fair Reuters did toss in a paragraph in the middle of the piece warning
of the risks of getting into stocks:
Still, some advisers are being very cautious.William Jordan of

William Jordan Associates in Laguna Hills, California, says he is
telling clients not to increase their stock exposures."As good as the
past two years have been, you can't say the stock market is
undervalued. I'm not bailing out, but I'm advising people to take
some profits."Clients also are encouraged to stick with their
investment plans. Scott Smallman, a Seattle broker for Wedbush
Securities, said he has been checking to see if the stock market
rebound has pushed some stock exposures too high."When markets
are good, our job is to talk clients down from the ceiling," said
Smallman, who on Monday encouraged some clients to consider
buying municipal bonds."
The Bottom Line

In my opinion, this article is far from "fair and balanced". Reuters quoted 4 "pump
monkey" advisers suggesting that everyone should be piling into stocks versus
only 2 advisers that were "cautious". There were zero "bears" in the piece which
is ridiculous when you look at Wall Street's performance over the last 10 years.
You are down 20% if you listened to these bubble makers over the last decade.
There are numerous potentially catastrophic risks that remain out there and they
are rarely if ever laid out by the MSM. High unemployment, bankrupt banks, and
insolvent countries are just just a few that come to mind.I am amazed at how
short all of our memories are when it comes to Wall St. The financial system was
brought to it's knees two years ago by these pigs, and it's still sitting there
crippled as the Fed runs up the credit card pretending that the economy is
recovering.The MSM should be ashamed of themselves for ignoring the financial
fraud and printing pieces of garbage like the one above.What ever happened to
hardcore journalism? Walter Cronkite must be rolling over in his grave. Sadly, our
media outlets now have the attention span of an 8 year old with ADD. If the news
is a week old then it's history in their books.’ [ If it was only attention that was
lacking there’d be at least a modicum of hope. The really sadly here is that most
understand so little of what’s going on and those that do (understand) are want to
report it; you know, mum’s the word, code omerta, no party-poopers allowed,
etc.. ]
Dodd-Frank and the Return of the Loan Shark Wall Street Journal | In the name of
consumer protection, Congress has pushed more Americans outside the
traditional banking system.
The Rise of the New Global Elite The Atlantic | Two separate economies are
emerging from the economic crisis as the elite get richer and the middle
class join the ranks of poor.
The Never-Ending “Business of Centralization” Damon W. Root | What’s wrong

with placing a few limits on federal power?
National / World
Ron Paul Talks 2012 Presidential Run: “I am Involved In A Revolution” Steve

Watson | The Congressman appeared alongside his son, Senator elect Rand
Paul on CNN’s Anderson Copper 360 show.
The Global Elite’s “ENDGAME” for Humanity Infowars | Canadian author, blogger,
and philosopher Stefan Molyneux of freedomainradio.com joins the show to
discuss several key issues. Big Pharma is preparing to exploit the new
swine flu scare, news on the economy, and more.
Keiser Report: Monsanto and the Seeds of Evil RT | This time, Max Keiser and co-
host, Stacy Herbert, about the US State Department’s genetically modified
retaliation against France, more missing billions in Afghanistan and
shopping frenzies in Britain.
Gladio reprise: More False Flag Operations Wayne Madsen | There are already
signs that the paradigm shift from Islamist terrorism to leftist anarchism is
already occurring.
The Madness Of A Lost Society 2: Final Warnings Youtube | We didn’t stand up

for truth, we didn’t stand up for the Constitution, we didn’t stand up for the
rule of law. And now the day of reckoning is upon us. Please, prepare.
Obama Picks Mobbed-Up Wall Street Insider For Powerful Administration Role
Reports that Barack Obama is considering naming William Daley, a
JPMorgan Chase & Co. executive and former U.S. Commerce secretary, to a
powerful position within the White House, serve as a reminder that while
posing as a squeaky-clean man of the people, Obama is the ultimate
establishment lackey.
Falling birds likely died from massive trauma The thousands of birds that fell
from the sky just before midnight New Year’s Eve in Arkansas likely died
from massive trauma, according to a preliminary report released Monday.
Is The New Madrid Fault Earthquake Zone Coming To Life? What in the world is
happening in the middle of the United States right now? Thousands of birds
are falling dead from the skies, tens of thousands of fish are washing up on
shore dead, earthquakes are popping up in weird and unexpected places
and people are starting to get really freaked out about all of this.
500 Dead Birds Found In Louisiana Town Around 500 dead blackbirds and
starlings have been found in Pointe Coupee Parish, according to state
wildlife officials.
Lindsay Lohan Moves Out Of Hollywood & In To Venice, CA TV.com [ Public

Enemy No. * - Right … No! This is ridiculous! In California of all places
(where crime rates, including violent serious crimes, as in america generally
are understated across the board and yet america can boast the highest
crime rates in world by far. After all, didn’t that pathetic former male model /
actor / pretender schwarzenegger cut by more than half the sentence for
murder / manslaughter to politically juice his own end of days scenario.
Schwarzenegger is living proof of the substantial brain damage attendant to
steroid use. The ‘tough on crime change meister’ … What a total gutless
wonder and fraud schwarzenegger turned out to be … and no small wonder
he’s pluggin’ for a position in the wobama administration. ) ] Due to
conflicting reports as to whether or not Lindsay Lohan is actually out of
rehab right now, we aren't entirely sure where in the world the troubled
starlet is at the moment. Palm Desert PD Gunning for Lindsay From the
Get-Go TMZ.com People: Lindsay Lohan may go back to jail San Jose
Mercury News
Drudgereport: NATIONAL DEBT TOPS $14 TRILL

OIL PRICE 'ENTERS DANGER ZONE'
FORTUNE: 2011: Year of the bank run?
Severed head hung from bridge in Tijuana...
Pakistani governor murdered -- by own guard...
Philippines politician takes photo of assassin -- moments before being
killed...
POLL: Voter Concern About Economy Hits Highest Level In Over Two
Years...
Unemployment up in two-thirds of metro areas; most since June...
UPDATE: BIRDS DROP FROM SKY OVER LOUISIANA...
MYSTERY...
Tens of thousands of small fish die in Chesapeake Bay...
Kentucky woman reports dozens of dead birds in her yard...
100 tons of dead fish wash up on Brazil's shores...
House Republicans move to repeal Obama healthcare...
...may starve financial reform of cash
House Republicans plan assault on Obamacare...
BOEHNER PLANS REPEAL VOTE -- IN WEEKS...
Issa: Obama administration 'one of most corrupt in modern times'...
...vows to take on White House over spending...
New Congress sets its eyes on oversight...
COMING SOON: THE INVESTIGATIONS
Israel preparing for 'large scale war'...
Iran 'shoots down Western spy drones' in Gulf...
What it took to get the defense spending bill passed (Washington Post) [ Given
the defacto bankrupt status of the nation, I’d say, like the unprecedented and
insurmountably great national debt, unprecedented and insurmountably
great stupidity. Drudgereport: NATIONAL DEBT TOPS $14 TRILL
and I think bondholders are simply happy to get anything out of a country
that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to
$60Tn (entire global GDP) in the form of unfunded liabilities. The funniest
thing about this (and you have to laugh) is to see Conservative pundits get
on TV and talk about how we need to cut $100Bn worth of discretionary
spending to "fix" this (while continuing to spend $1Tn on the military and
$1Tn on tax cuts for the top 1% each year). There is no fixing this and even a
Republican said you can’t fool all of the people all of the time. THIS HOUSE
OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘
]
Israeli troops kill Palestinian man at checkpoint in West Bank (Washington Post) [
Could you imagine if it was a jew who was killed. Beyond the stereotype
which is easily envisioned, you’d never hear the end of it. But israel sees no
need to adhere to laws governing the civilized throughout the world, from
illegal nukes, to u.n resolutions (ie., 343, 338, etc), international law, etc., and
hence, the strife we see in the region and throughout the world. ]
U.S.-built infrastructure is deteriorating (Washington Post) [ At first glance, I

thought this article was miscategorized as a national story in the World section.
Indeed, there’s no denying the truth of the title as america generally,
domestically. Yet, the tragedy is that the tainted, destructive, self-defeating wars
for america have been a boon for war profiteers, frauds of all stripes, when this
defacto bankrupt america is sorely in need of repair, replacement of its own
shoddy, aging infrastructure suffering from the domestic equivalent of similar
scams, kickbacks, shoddy workmanship and all. After all, it got to the point that
they didn’t even go through the motions / façade and actually flew $12 billion in
hundred dollar bills into Iraq which to this day is unaccounted for / unprosecuted
… like the wall street frauds, since the worthless toxic paper cashed out by wall
street is still out there in the trillions now marked to anything. ] Roads, canals and
schools built in Afghanistan as part of a special U.S. military program are
crumbling under Afghan stewardship, despite new steps imposed over the past
year to ensure reconstruction money is not being wasted, according to
government reports.
Bank of America settles loan dispute with Fannie, Freddie (Washington Post)
[ Guess they’re just looking for some year end bonus money (maybe not,
depending on the controls, if any, if enforced – they weren’t last year). After
all, though I believe the wall street frauds have been cashing out, albeit
somewhat surreptitiously by way of QEs 1,2, etc., and for ever more
worthless over-printed fiat dollars, that ‘toxic’ worthless paper is still out
there in the many trillions marked to anything. Indeed, Davidowitz adds that
with record numbers of americans on food stamps, real unemployment at
17+, wall street is giving out record bonuses from their accomplished fraud
(with no-recession b.s. bernanke help) of $144 BILLION …] Fannie Mae and
Freddie Mac have accepted $2.8 billion from Bank of America to largely put
to rest claims that the bank sold them faulty loans.
Incoming House GOP chairmen have a long list of issues to investigate

(Washington Post) [ Yeah … Sounds like a plan! … One that requires
backtracking at least to dumbya bush days and war based on a lie with
wobama taking up where dumbya bush left off; viz, that perpetual war thing
though the nation’s defacto bankrupt. Then there’s the still no pros for the
largest and most massive securities fraud in the history of the world with
consequences still extant to the tune of trillions in toxic / worthless paper
now marked to anything they so choose as per legislative mandate via FASB
rule change (bush’s and surprising to some wobama’s base) . A full plate,
there is no doubt. But, butt, just posturing, politicking, don’t look for
anything of consequence though there’s plenty there. Then there’s zionist
peter king of the national sinkhole new york ( / new jersey- Bankrupt
Government Has Plans For Your Unused Gift Cards. [Mob invested, (and
like america, generally) pervasively corrupt, meaningfully lawless and
defacto bankrupt toxic, disgusting jersey is just doing what they’ve done for
at least decades … no surprise here. (see RICO case
yofperjury.pdf
Jason Douglass ‘…Saving up this years gift cards to make a large purchase?
You better use them up fast because state governments like New Jersey
think they have a better use for that money. In an attempt to save
themselves from obvious mismanagement, state authorities have begun
steps to confiscate the balance left on your unused gift cards. Arguably, gift
cards are one of the biggest scams going. Most consumers have been
exposed to gift card’s eccentricities and know how impossible it is to use all
the money on the card. Then, once the transaction is complete, it is twice as
difficult to get the remainder of the balance left on the card in cash. Now our
public officials want to get in on the scam.Large amounts of unused cash
are locked away in these effective little marketing devices and New Jersey
thinks they have a right to seize that money from you. In fact, they’ve already
taken the steps to do just that…’ ]
Profit From the Rally's Inevitable End: My Correction Wish List Invest Chief ‘As
we say goodbye to 2010, we look towards the future and what 2011 will bring. As
you may or may not know, bullish optimism hit historical highs for the outlook of
2011. I mean you could find the wildest outlooks, such as Dow 20,000, housing
crisis solved, unemployment 6%, etc.There was certainly no shortage of
ridiculous claims that will not come true. The point is, the best way for success in
the markets is to simply roll with the punches. Whether the Dow goes to 6,000 or
60,000, you must roll with the punches and profit from the changes. If you are too
focused on a certain Dow level or other catalyst, you may be waiting for a long
time, missing out on profits along the way.The first “punch” investors are going
to get is a correction. The Dow had a huge run in December and investors will be
taking profits as they had begun to do in the last few trading days in 2010. It is
advised that you take profits and wait for the correction. While the correction is
occurring, select a “wish list” of companies that you would like to snatch up at
cheaper prices. That way all you have to do is place orders. The homework to
value your stocks should be your reasoning to place them on your “wish list”.I
have my “wish list” ready to go. Here are a few of my stocks that I am planning on
buying during the correction:
• Royal Shell Corp (RDS.B)

• Harford Financial (HIG)
• Diana Shipping Inc (DSX)
• First Niagara Financial (FNFG).
Shell is one of the best integrated oil plays right now. It pays over 5% dividend,
P/E of 13.3, financially stable, good cash flow. It should also be noted that Shell
recently inked a huge deal with Qatar, which should help boost earnings no
doubt.Hartford was devastated by the 2008 crisis, dropping from its high of $66
the stock now stands at 26.50. Hartford is the most undervalued company its
industry, in cash flow. Also, it has a P/E of 11. Hartford has a good management
team behind it and it will surely blossom as the economy recovers.
Diana Shipping has been catching big money’s attention lately. Diana is pretty
undervalued with a P/E of 7.8. Diana outpaces the rest of its industry in ROE,
debt/equity, growth, and cash flow. Diana is a great stock if you want exposure to
bulk shipping. A well known competitor of Diana Shipping is DryShips (DRYS).
Based on value, Diana is a better call.First Niagara is a regional bank with 171
branches in the Northeast United States. First Niagara is one of the stronger
regional banks which makes it a good takeover play. First Niagara weathered the
recession well and they pay a 4% dividend. The only major problem I have with
FNFG is the fact that they have a sizable amount of debt on their balance sheet
but like I said, this is a pretty good takeover play and they pay a nice dividend
while you wait. Another regional bank I would recommend for 2011 is East West
Bancorp (EWBC).The message I am trying to get across is that you should always
have a list of desired stocks that you would like to pick up when a pullback
occurs. Regardless, it is always important to do your homework on a stock to
understand if that stock fits your investing style.
The best way to profit in the stock market is always being prepared for the
inevitable. A correction is coming; stocks are just too expensive right now after
the huge rally we have had. It is time to take some profits and wait patiently for a
pullback and pick up some great names at a cheaper price…’

begin by January 31st
Is This a Major Market Top? [ Truth be told, there was a time when I read Barron’s
with great regularity (no more). I never missed Alan Abelson’s incisively sharp wit
and the market laboratory, the latter being supplanted by readily accessible
numerical data on the web. I also don’t recall Alan Abelson ever being wrong and
I don’t think he’s wrong here, particularly when you consider the costs, fraud, and
insanity underlying this manipulated and inflated stock market which bubble is at
best a (contrived) bull cycle in a secular bear market. ] Roche ‘With economic
recovery still in doubt and sentiment readings at their highest levels since the
S&P 500 topped in 2007, some market prognosticators find the latest surge in
stocks to have been irrational. There is now a near universal belief that stocks
have but one direction to go and that has some investors feeling uneasy. This
weekend’s Barron's showed the diametrically opposing views as two of their
leading columnists (Alan Abelson and Mike Santoli) discussed why they believe
this is a major market top (or not).
Abelson refers to a certain veteran market technician (whom he doesn’t identify):
And he shares our concern about the epidemic of optimism that has
gripped the Street, manifest in any number of wildly bullish forecasts
for the market in 2011. It is the kind of explosive optimism that is
usually witnessed, he says more in wonder than rue, at market tops,
either temporary or something worse.
He doesn’t buy the argument that the huge stash of cash supposedly
sitting on the sidelines is a guarantee of a steady source of fuel for
the equity rally. Rather, he calls that hefty pile of cash, which is
being augmented by a fresh infusion from fixed-income investors
now that bonds are getting clocked, “scared money.” It belongs, he
elaborates, to folks who all this time have been leery of committing
their dough to stocks but, thanks to December’s quantum leap in
share prices, have grown increasingly fearful of missing the next leg
up, and are itching to put all that scratch to work.
That such nervous-newbie equity buyers will stay the course and
step up their buying after the initial, inevitable correction is hardly a
given. Our bet is that they would jackrabbit out at the first hint of
trouble.
The peerless technician is also bothered by the leadership of the

end-of-the-year rally. More specifically, the shares of commodity-
related companies are in the vanguard of the advance at a time when
China, the big global buyer of virtually every commodity known to
man, is striving to rein in inflation. It is no accident, he suggests, that
Chinese stock markets have been lagging, and he feels they may
prove a pretty good precursor for our own dear market.
In sum, he sees stocks making at least a temporary top early in the

new year. It’s hard to say, he readily admits, just how bad or
enduring a setback equities will suffer. But obviously, he’s talking
something more substantial than a flickering decline or a tiny crack.
Santoli’s case against a major market top has been more commonly discussed:
The reasons the bulls are bullish are also pretty universally agreed
upon. The industrial economy has gathered some momentum, the
emerging markets are surging, companies are flush, profits look set
to rise decently again, the Federal Reserve is seeking new ways to
penalize risk aversion, taxes won’t go up and the market tends to do
well in the year after a midterm election.
And we can add to the list the likelihood that another financial-
engineering cycle is just getting into gear, so expect lots of equity-
friendly refinancings by stretched companies, re-leveraging by cash-
rich ones and buyouts hither and yon.
The thing is, it’s all pretty much true. And because of that, and given
that stock valuations are not excessive, it’s tough to think a likely
pullback or worse would signal some major top.
Indeed, the happy feeling and the recent climb in margin borrowing
and drop in short interest, by one way of looking at them, simply
show that what has been a bull market for the better part of two
years is finally being viewed as one. The last time we had such a run
of investor optimism, indeed, was late 2004, before a calm but not
terribly exuberant year.
The risk, then, is more about the near term, about expectations of
ease meeting some unforeseen complication early this year, and that
what’s likely to be a firm fundamental and technical case for riskier
financial assets in 2011 has, to a fair degree, been priced in by the
market lift of late 2010.
Interestingly, both appear to agree that the major risk is in the near-term. Santoli,
however, clearly believes any sell-off will prove to be a buying opportunity.
Abelson tends to still be in the bear market camp. Major market top or a prelude
to a continuation of the bull market? Only time will tell.
Source: Barron's’
January Barometer - As January Goes, so Goes the Year? Simon Maierhofer, On

Monday January 3, 2011, 6:40 pm EST Did you know that there are two seasonal
patterns with an accuracy ratio of 90% or higher? This is no joke. The numbers don't lie,
but there is one caveat.The January Barometer has a 90% rate of success. The
essence of the January Barometer is simple, as January goes, so goes the year. If
January is up, the entire year will be up and vice versa.
90% Accuracy - Too Good to be True?
From 1950 to 2008 this pattern has played out most of the time. There were only five
times when it outright failed and seven times when it wasn't exactly accurate. According
to the Stock Trader's Almanac, the Barometer has a 90% accuracy ratio. In terms of
odds, that's about as good as it gets.However, the January Barometer led investors in
the wrong direction in 2001 when the S&P was down a full 13% at the end of the year
after being up 3.5% in January. Again, there was a major misfire in 2003 when the S&P
finished with a 26.4% gain after a 2.7% January loss.There was a minor misfire in 2005,
but the Barometer couldn't have been more wrong in 2009 and 2010. In 2009 the S&P
was down 8.6% in January but ended the year with a 23.5% gain. After a 3.9% January
loss last year, the S&P (SNP: ^GSPC) finished with a 12.6% gain.It seems like the
January Barometer has lost its mojo. In fact, five hits and five misses bring the last
decade's success rate down to 50%, in line with random odds.
A New January Pattern
Every January is different, but over the past three years a new pattern has emerged.
Christmas euphoria is followed by a New Year hangover. Let's see what the numbers
say.On December 24, 2007 I was invited to share my 2008 outlook with CNBC's Maria
Bartiromo. At the time, the major indexes had just recovered some of their initial
October/November losses and the percentage of bullish advisors polled by Investors
Intelligence was 54.9%, very close to last week's 55.6%.My advice then was to employ
strategies that benefit from a topping market. On December 24, 2007, the DJIA (DJI:
^DJI) closed at 13,549, the S&P (SNP: ^GSPC) at 1,496, the Nasdaq 100 (Nasdaq:
ÎXIC) at 2,128, and the Russell 2000 (NYSEArca: IWM - News) at 794.Stocks
(NYSEArca: VTI - News) suffered from topping action throughout 2008 before delivering
a year-end rally. In fact, the 2008 Santa Claus Rally delivered the highest return in
decades, 7.4% for the S&P.On December 14, 2008, I cautioned via the ETF Profit
Strategy Newsletter: 'Optimistic sentiment, which should be more visible above Dow
9,000, will give way to further declines. These should draw the indexes close to or
below their November 21st lows of 7,445 for the Dow and 740 for the S&P.' Early
January 2008 the DJIA poked above 9,000 three times before shedding 29%.2009/2010
was not much different than the previous two years. On December 17, the ETF Profit
Strategy Newsletter stated: 'The days leading up to and following Christmas tend to
have a bullish bias for stocks. Nevertheless, bearish forces are becoming more
pronounced and stocks are facing stiff resistance at Dow 10,500 and S&P 1,120.' That
stiff resistance led to a swift 9% correction.The chart below illustrates the pattern of
December rallies followed by January sell offs. Of course this new pattern might
disappear as fast as it appears, but my analysis shows that January 2011 will follow in
the footsteps of the three previous Januaries. [chart]
Looking Beyond January
Let's say we get the expected January correction, then what?We would be in a pickle
because according to the long-term track record of the January Barometer, stocks
should continue weak throughout the year while according to the Presidential Election
Year Cycle stocks should be up.The third year of the Presidential Election Year Cycle
(such as 2011) is historically the strongest of the four-year cycle. This may sound like a
too good to be true statistic, but there hasn't been a major loss in a pre-election year
since 1931.In an effort to get re-elected, each administration is working overtime the
year before elections to buoy whatever there is to buoy in order to create a setting that's
conducive to winning as many re-election votes as possible.
A Premature Pop?
Courtesy of the 2008 financial meltdown, the administration and the Fed were forced to
open the money spigot earlier than during the average Presidential cycle. Does that
mean that the stock market has peaked pre-maturely? We don't know yet, but based on
current sentiment readings it's a possibility that shouldn't be ignored.
Correction and Pop Protection
Since the market's internals today are similar to what we saw leading up to the April
2010 high and the previous three January highs, it isn't a far stretch to expect a similar
outcome - a swift and largely surprising decline between 9 - 29%.The S&P hasn't
reached our upside target level yet, so it's best to let the current rally do its thing. Once
reversal levels are reached, the proverbial air pocket that's been supporting this
creeping up trend is likely to bust and result in a downward jolt.Momentum is a fickle
force. Just as momentum has carried stocks higher than expected, it may drive prices
lower than any of the ueber-bullish Wall Street analysts expect.
Eliminating Variables
The big question is whether the Federal Reserve and Wall Street banks (NYSEArca:
XLF - News) can manage and control any sell off. It surely seems like they were able to
do so in January and April of 2010. However, they were powerless throughout 2008 and
had to watch the market swallow up fellow competitors.It's no secret that my personal
outlook is fundamentally bearish, but with the influx of QE2 liquidity and the bullish bias
of the Presidential Election Year Cycle, it's prudent to listen to the market's vital
signs.The ETF Profit Strategy Newsletter continuously monitors the market's breadth in
connection with important support and resistance levels. Any trend change from up to
down is most likely to occur against resistance. Once a reversal is in place, it's vital to
watch how the market performs at support levels of various degrees.The ETF Profit
Strategy Newsletter outlines the next major resistance level along with support levels
the market has established over the past weeks, months and years. Nothing expedites
momentum like a break below support. We all know what momentum can do.’
Robert Shiller's 2020 Target for the S&P 500
A Look at Base Metals: Dave's Daily ‘A FEW BULLS CHARGE OUT OF THE GATE
It was an impressive ramp to start 2011 wasn't it? Inside the numbers there was
again little volume. Markets are now much overbought and this low volume is
worrisome as a cascade of heavy volume will no doubt appear from the sell-side
as long as this continues. There was another round of POMO (nearly $8 billion)
Monday to start the year which helps trading desks facilitate what the Fed wants
-- higher stock prices. Of course the story making the biggest splash was
Goldman Sachs wanting a piece of Facebook which would push the value of the
company to $50 billion. Also, BAC settled some outstanding issues with FNM to
the tune of $2 billion. Taken together this pushed the financial sector higher. Most
economic news Monday like ISM Data was generally as expected, but higher
prices in Europe spilled over early to New York. Most bulls believe a growing
economy is in the works which should lead to better earnings and stock prices.
That's the story, and bulls are sticking to it. The Interior Department will allow
some deepwater drilling to resume oddly coincided with some selling in
commodity markets, especially precious metals. But, the dollar was also
somewhat stronger which would usually cause a decline…’
Bubble From Bursting” It was the night before Christmas Eve, and CNBC
trucked out TrimTabs’ Charles Biderman to a de minimis audience, knowing
full well that a man with his understanding of money flows would very likely
repeat his statement from last year, that there is no real, valid explanation
for the inexorable move in stocks higher, as equity money flows in 2010
were decidedly negative, and any explanation of the upward melt up would
need to account for Fed intervention (and no-volume HFT offer-lifting
feedback loops but that is a story for another day).
Observations On The Latest Debt “Inflection Point”, And Why Bernanke Has At
Most 5 Months In Which To Announce QE3 Yesterday on Tom Keene’s
always informative show, two of the world’s most important economists,
Goldman’s Jan Hatzius and BofA’s Ethan Harris presented their respective
defenses for why GDP in 2011 would rise by nearly 4% as per their recent
predictions.
Oil Surges to Highest Year-End Price Since 2007 on Dollar Oil surged to its
highest year-end price since 2007 as the dollar weakened and gasoline and
heating oil futures climbed.
Is Gold – Or Fiat Currency – In a Bubble? Gold is not in a bubble, silver is not in a

bubble, precious metals are in general terms not in a bubble.
China must Kill the Dollar Economic Assassin | In the hope of reducing their own
inflation China must kill the dollar.
US Debt Limit Fight Would Be ‘Catastrophic’: White House Reuters | A top aide to
President Barack Obama warned of catastrophic consequences if
Republicans follow through on threats to reject an increase in the nation’s
borrowing limit.
Jobs Are Trickling In, But Millions Have Given Up Looking For Work Reuters |
U.S. private employers have recorded 11 consecutive months of job gains,
yet the number of people who are so discouraged that they have given up
searching for work stands at an all-time high.
War Causes Inflation … And Inflation Allows The Government to Start

Unnecessary New Wars and Keep Us In Them For Longer than Needed War
almost always causes inflation.
Never Forget The Fed Caused The Economic Downturn Chairman of the Federal
Reserve, Ben Bernanke, would have us believe that if it were not for QE1
unemployment would have been considerably higher.
2011: Doom is Always 6 Months Away Since doom is always 6 months away, and
I can write doom porn with the best of them, here we go…
National / World
Gerald Celente: What’s in store for 2011 RT | “Were going to see more and more
cyber attacks, just like we saw with WikiLeaks,” explained Celente.‘What’s in
store for the world in 2011? Trends forecaster Gerald Celente of the Trends
Research Institute provided his insights on the year ahead. Will the people
of the world wake up to a dire economic reality? Will the US dollar or the
value of gold prevail? Will hardship-driven crimes be committed across the
socioeconomic spectrum by legions of the on-the-edge desperate? Will the
“War on Terror” morph into the “War on Crime,” where all Americans are
suspects until proven innocent? Will governments try to eliminate free
access to the web and literally shut down computers and websites they
consider a threat to national security? Will the seeds of revolution be sown?
Celente argued that all of the above will take place in some shape or form.
There will be a wakeup call on the economy, a crack down on the people and
a loss of liberty, and also an increase in Journalism 2.0, alternative energy
and a growth in cyber war tactics. “Look what’s happening now. You name
the city,” he said.“The people are getting hit on at every level.” The banks
and governments are robbing the people and will continue to do so, he
argued. “What they are going to do, is they are going to make up the slack
by going after the little people at every level; licensing fees, parking fees,
you name it, they’re going to squeeze every dollar out of the people,”
Celente commented.“If you go five miles over the speed limit there’s a cop
waiting for you.” Gold will run high in 2010, as the federal resave continues
to dump US currency into the system gold will rise much higher, possibly
even double in value over the next year. In the name of terror the
government will clamp down on the people, crime will rise as dissatisfaction
with the economy and government policies rise. “Big Brother will be
watching!” Celente said. “We even have Wal-Marts as a rat for the homeland
security division to call them up and let them know if anything is untore that
they should know about and they are talking now about expanding
homeland terrorist security in hotels and shopping malls.” The US
government will be watching every move every person makes. “They are
going to clamp down more and more as people continue to complain more
and more about the injustices that are happening, particularly on the
economic front,” he explained. “When people lose everything, and they have
nothing left to lose, they lose it! As people keep losing it, the government
will crack down even tighter.” Looking forward, cyber warfare will grow
further, becoming a new type of warfare for the 21st century. Those in cyber
industry have a strong future, he added.“Were going to see more and more
cyber attacks, just like we saw with WikiLeaks,” explained Celente. “We’re
going to see worldwide cyber crime. In the end, the world will end in 2011,”
said Celente, but what that means exactly he wouldn’t say.’
Terrorist Watch List May Exceed US Population by 2019, World Population by

2023 A report from the Washington Post (brought to us via Infowars.com)
says that the new official policy for the terrorist watch list is that a single
‘credible’ tip may deem you unworthy of (air) travel in the United States of
America.
Pentagon’s propaganda in full view With the Afghanistan war going so poorly
there has been an outpouring of emotions, an LA artist decided to make a
mural depicting a dollar draped over a casket on a side of a building. Many
believe this is revolting but some like Founder of Brave New Films Robert
Greenwald says this indicates how brilliant the Pentagon has been at
increasing censorship, so anything that goes against their propaganda will
be shot down or in this case covered up.
Just 35 pct. of Americans support continuing Afghan occupation, poll finds A
record number of Americans oppose the US war in Afghanistan, according
to a recently released poll.
George Soros: The United States Must Stop Resisting The Orderly Decline Of The
Dollar, The Coming Global Currency And The New World Order In the video
you are about to see, George Soros talks about “the creation of a New World
Order”, he discusses the need for a “managed decline” of the U.S. dollar and
he talks at length of the global need for a true world currency.
30 Reasons Why 2011 Is Going To Be Another Crappy Year For America’s Middle
Class Do you think that 2011 will be a good year for America’s middle class?
Well, you might not be so optimistic after you read the 30 statistics posted
below.
Preparing for the Financial Crisis The crisis in the US and world financial markets
give us reason to make preparations for the foreseeable problems ahead.
Mass protest over Government cuts planned Unions are gearing up for a
demonstration in the spring against the Government’s massive cuts in
public spending, predicting it will be a “huge” national event.
Bankrupt Government Has Plans For Your Unused Gift Cards. [Mob invested,
(and like america, generally) pervasively corrupt, meaningfully lawless and
defacto bankrupt toxic, disgusting jersey is just doing what they’ve done for
at least decades … no surprise here. (see RICO case
yofperjury.pdf
Jason Douglass ‘…Saving up this years gift cards to make a large
purchase? You better use them up fast because state governments like New
Jersey think they have a better use for that money. In an attempt to save
themselves from obvious mismanagement, state authorities have begun
steps to confiscate the balance left on your unused gift cards. Arguably, gift
cards are one of the biggest scams going. Most consumers have been
exposed to gift card’s eccentricities and know how impossible it is to use all
the money on the card. Then, once the transaction is complete, it is twice as
difficult to get the remainder of the balance left on the card in cash. Now our
public officials want to get in on the scam.Large amounts of unused cash
are locked away in these effective little marketing devices and New Jersey
thinks they have a right to seize that money from you. In fact, they’ve already
taken the steps to do just that…’
Big Sis Photocopies Credit Cards, Confiscates Christmas Calendars Paul Joseph
Watson | The agency is now instructing its airport security screeners to
make photocopies of people’s credit cards, while Big Sis is also busy
fighting terrorism and protecting America by confiscating chocolate
Christmas advent calendars.
John Lott: More Guns, Less Crime Infowars.com | John Lott explains why guns
bans only serve to increase gun crime rates.
Bubble From Bursting” Zero Hedge | If the money to boost stock prices by
almost $9 trillion from the March 2009 lows did not come from the traditional
players, it had to have come from somewhere else. We believe that place is
the Fed.
More TSA Lies In Attempt To Cover Up Security Failures Steve Watson | Claims
that leaked security failure figures are “outdated” are easily debunked.
Germany Hides Spy Satellite Under ‘Global Warming’ Umbrella. Jason Douglass |
Wikileaks exposes an intergovernmental pact to disquise a spy satellite
array as a tool to study ‘global warming’.
2010 in review: Here’s what happened in the world of natural health and health
freedom Mike Adams | Still, 2010 was mostly a year of expanded censorship,
attacks on health freedom and expansions of government tyranny.
Happy New Year: 19 killed in US drone attacks in Pakistan US drones carried out
four strikes in Pakistan’s restive tribal belt today, killing 19 militants and
injuring several more in the first such attacks of the new year, officials said.
Israel arrests 2 UK consulate workers in Jerusalem (AP)
Israel preparing for 'large scale war'...
Israel's Labor: We'll quit if no progress to peace (AP)
Treasury Department shifts its stake in Ally Financial (Washington Post)

[ Oooooh! Sounds like a plan (with only those tiny pikers fannie and freddy to
follow) … till the next debacle … which will be coming soon to a theater near you
…
seemingly closer then ever. Over the past several weeks, there have been a host
of ominous signs for the U.S. economy… ] Decision could make it easier for the
bailed-out lender to launch an IPO and repay its government debt.
Pakistan's top general vexes U.S. plans (Washington Post) [ Geeh! How dare that
PAKISTAN General not jump on the war criminal american crazy train by putting
the interests of his nation ahead of u.s. contrived interests and preventing
Pakistan from being turned into a toxic wasteland, killing fields, etc., as in Iraq,
Afghanistan, etc.. ] Despite intense efforts, officials fail to persuade Gen. Ashfaq
Kayani to undertake the administration's strategy of eliminating Taliban havens
inside Pakistan.
Economic forecasters see growth in 2011 (Washington Post) [ Kind of like that
prescient economic forecast of ‘no recession’ preceding this continuing
financial / economic debacle of a magnitude exceeding that of the great
depression from our ‘economist in chief’ helicopter ben … riiiiight! … And
you can take that the insolvent bank! Stock markets weather a challenging
2010 (Washington Post) [ ‘Weather’, ‘forecasts’ … somehow those words
taken together do not engender confidence. Yet, like today, there’s no
shortage of that exuberance thing just as in 2007 preceding the last crash, or
preceding the dot.com crash, etc., and this time will be no different and
probably worse. Pay Attention to New Year Market Indicators [ The problem
with these anecdotal, mechanized (and sophomoric) technical guidelines is
that the frauds on wall street are well aware of them and with the current
computer technology can easily program to meet them with the fraudulent
hope they’ll become self-fulfilling. I disagree with the ‘everything coming up
roses, green shoots and all’ scenarios being painted in typical self-
interested fashion and hardly objective. Even near perma-bull John
Augustine (speaking with Motek) looks for at a minimum, if things go well for
the economy (not at all likely and no can do with real numbers / data) a 3-5%
pullback / correction near term. Keep in mind all stock prices have been
inflated by amounts exceeding the gains, viz., 13-17% by the debased dollar
which of course is reflected in huge price increases for commodities across
the board which will impact margins or consumption or both going
forward. ] Plessis ‘If Santa has not yet made his way to your investment
portfolio, don’t despair. According to Jeffrey Hirsch (Stock Trader’s
Almanac), the “Santa Claus Rally” normally occurs during the last five
trading days of a year and the ensuing first two trading sessions of the new
year. During this seven-day period stocks historically tend to advance (by
1.5% on average since 1950), but when recording a loss, they frequently
trade much lower in the new year.With four of the seven sessions behind us
there has been little in it, with the S&P 500 Index marginally up by 0.09% and
the Dow Jones Industrial Average losing 0.03%.Another old stock market
saw tells us the first five trading days of January sets the course for January
(known as the “First Five Days Early Warning System”), and if the month of
January is higher, there is a good chance the year will end higher, i.e. the so-
called “January Barometer”. Every down January since 1950 has been
followed by a new or continuing bear market or a flat year. “As January
goes, so goes the year,” said Hirsch.Lastly, according to Hirsch, the
“December Low Indicator" says that should the Dow Jones Industrial Index
close below its December low anytime during the first quarter, it is
frequently an excellent warning sign of lower levels ahead. The numbers to
watch are those recorded on December 1: 1,206.07 for the S&P 500 Index
and 11,255.78 for the Dow Industrial Average.The American benchmark
indices will have to crash today in order to make 2010 a down year. Early
indications therefore point to the January Barometer (with January having
been a down month) this year failing investors. Looking ahead to 2011, time
will tell whether the year-end/new-year indicators play out according to the
historical pattern. Meanwhile, we’ll have some fun tracking how it pans out.’
] In a year of political upheaval, fiscal crisis in Europe and the threat of a
double-dip recession in the United States, the stock market weathered all
challenges, plodding upward. Economic forecasters see growth in 2011
Private markets make up the core of Obamanomics (Washington Post) [ I doubt

there is a core at all … nothin’ there … spend more than you take in … just
smoke and mirrors … more bush*t … you know, froth the markets, fraud be
damned but welcomed / protected … and, as before, this will end quite
badly! But regarding the now ‘Klein Controversy’, the following: Wash Post
Staffer: Constitution Impossible to Understand Because It’s Over 100 Years
Old [ In a meaningfully lawless society as pervasively corrupt, defacto
bankrupt america, constitution / laws have become irrelevant in application
and effect. After all, even zimbabwe has a constitution / laws, but I dare say
no one would suggest they have any practical effect in reality, as is also so
in america. I therefore believe Mr. Klein is correct but for reasons other than
age and malleability. Indeed, anyone who has written a legal brief and
researched law in support thereof, ultimately realizes that almost invariably
one can find some case / law in support of almost any position. In america
today, it’s the bribe, one way or another, that carries the day and makes the
difference. Ask sam alito et als. That’s just the way it is in a declining, fallen
society as america, zimbawe, etc.. That’s certainly my direct, sworn
experience with these corrupt courts constituting (in large part along with
the other 3 branches) pervasively corrupt, defacto bankrupt america’s illegal
system. Senate convicts Clinton-appointed judge... [ Come on! One way or
another they’re almost all getting bribed; including the initial lifetime
appointment as alito, trump-barry, etc.. Abolish the corrupt, costly,
economically wasteful lifetime extravagantly appointed federal courts
(see RICO case
yofperjury.pdf
those lifetime licenses to steal. ] In earlier hearings, two attorneys who once
worked with Porteous had testified that they gave him thousands of dollars
in cash, including about $2,000 stuffed in an envelope in 1999, just before
Porteous decided a major civil case in their client's favor. ] Breitbart | On
word that the House will open its next session with a first-ever reading of the
U.S. Constitution, blogger Ezra Klein suggests that the Constitution is
irrelevant due to its age and politically-malleable language. ]Eight key
economic decisions of the Obama presidency all point in one direction.
Pay Attention to New Year Market Indicators [ The problem with these anecdotal,
mechanized (and sophomoric) technical guidelines is that the frauds on wall
street are well aware of them and with the current computer technology can
easily program to meet them with the fraudulent hope they’ll become self-
fulfilling. I disagree with the ‘everything coming up roses, green shoots and all’
scenarios being painted in typical self-interested fashion and hardly objective.
Even near perma-bull John Augustine (speaking with Motek) looks for at a
minimum, if things go well for the economy (not at all likely and no can do with
real numbers / data) a 3-5% pullback / correction near term. Keep in mind all stock
prices have been inflated by amounts exceeding the gains, viz., 13-17% by the
debased dollar which of course is reflected in huge price increases for
commodities across the board which will impact margins or consumption or both
going forward. ] Plessis ‘If Santa has not yet made his way to your investment
portfolio, don’t despair. According to Jeffrey Hirsch (Stock Trader’s Almanac), the
“Santa Claus Rally” normally occurs during the last five trading days of a year
and the ensuing first two trading sessions of the new year. During this seven-day
period stocks historically tend to advance (by 1.5% on average since 1950), but
when recording a loss, they frequently trade much lower in the new year.With
four of the seven sessions behind us there has been little in it, with the S&P 500
Index marginally up by 0.09% and the Dow Jones Industrial Average losing
0.03%.Another old stock market saw tells us the first five trading days of January
sets the course for January (known as the “First Five Days Early Warning
System”), and if the month of January is higher, there is a good chance the year
will end higher, i.e. the so-called “January Barometer”. Every down January since
1950 has been followed by a new or continuing bear market or a flat year. “As
January goes, so goes the year,” said Hirsch.Lastly, according to Hirsch, the
“December Low Indicator" says that should the Dow Jones Industrial Index close
below its December low anytime during the first quarter, it is frequently an
excellent warning sign of lower levels ahead. The numbers to watch are those
recorded on December 1: 1,206.07 for the S&P 500 Index and 11,255.78 for the
Dow Industrial Average.The American benchmark indices will have to crash today
in order to make 2010 a down year. Early indications therefore point to the
January Barometer (with January having been a down month) this year failing
investors. Looking ahead to 2011, time will tell whether the year-end/new-year
indicators play out according to the historical pattern. Meanwhile, we’ll have
some fun tracking how it pans out.’
Happy New Year! Here Are The Final Numbers For 2010 White, On Friday
December 31, 2010
‘Indices mixed today, but not for the year. Stocks weren't the real winner,
however, with commodity prices booming.
First, today's scoreboard:
• DOW up 0.08%
• S&P 500 down flat
• NASDAQ down 0.38%
Now, the final scoreboard for 2010:

Equities:
• 2010 DOW up 10.94%

• 2010 S&P 500 up 12.72%
• 2010 NASDAQ up 16.9%
Check out the best and worst performing global equity indices in 2010 >
Commodities:
• 2010 Gold up 30%

• 2010 Copper up 33%
• 2010 Oil up 15%
Check out Societe Generale's guide to commodities in 2011 >

Bonds:
Bank of America Merrill Lynch’s Global Broad Market Index rose 4.7% this year.
• 2010 Year end 5-year treasury yield 2.00%

• 2010 Year end 10-year treasury yield 3.28%
• 2010 Year end 30-year treasury yield 4.33% …’
The Shadow Banking System: A Third Of All The Wealth In The World Is Held In
Offshore Banks Economic Collapse Blog | You and I live in a totally different
world than the ultra-rich and the international banking elite do.
Entire American middle class will fall under the poverty line in five years Press TV
| “The middle class, I am afraid, in the United States is not going to exist in
another five years and everybody is going to be driven down to the lower
poor class,” said Wayne Madsen.
Home foreclosures jump in 3rd quarter: regulators Reuters | U.S. home
foreclosures jumped in the third quarter and banks’ efforts to keep
borrowers in their homes dropped as the housing market continues to
struggle.
Must See: Howard Davidowitz Destroys The Recovery Illusion, Debunks The
Consumer Renaissance Today’s must see TV comes from the following
interview of Pimm Fox on the consumer and the economy with retail expert
Howard Davidowitz, who in 10 minutes provides more quality content and
logical thought than we have seen from CNBC guests in probably all of 2010.
Oil Could Push to $110: Charts It’s “certainly possible” that the price of a barrel
of oil will push above $100 a barrel, Daryl Guppy, CEO of Guppytraders.com,
told CNBC Thursday. “Once you move above $100, then $110 is just clear
freeway straight to that level,” Guppy added.
Eurozone ‘has 80% chance of losing the single currency in next decade,’ claims
think-tank There is an 80 per cent chance that the euro will not survive in its
current form, a leading think tank has warned.
Metals from copper to silver hit record highs Copper has hit yet another record
high in a strong morning for metals trading, as commodities shook off
China’s efforts to halt inflation by raising interest rates on Christmas Day.
Washington's Revolving Door: Minimalist Approach to Wall Street Reform Leaves

Business as Usual, Author Says - Gross
Peter Schiff: Here’s Why Home Prices Have To Decline At Least 20% And
Probably More House prices have to decline at least another 20.3% to come
back to the historical trend and may have much further to fall, according to
Peter Schiff of Euro Pacific Capital.
2010 worst year for bank failures since 1992 More banks failed in the United
States this year than in any year since 1992, during the savings-and-loan
crisis, according to the Federal Deposit Insurance Corp.
ROBERT SHILLER: If House Prices Keep Falling This Fast, The Economy Is
Screwed He also says that if house prices keep falling this fast, the economy
will face “serious reasons to worry” (which, for Professor Shiller, is an
apocalyptic statement).
National / World
Washington Uses Arms Sales To Achieve Ever Fleeting Purported Global

Supremacy Rick Rozoff | The Stockholm International Peace Research
Institute (SIPRI) documents that the United States accounts for 43 percent of
world military spending and 30 percent of global arms exports.
Will It Be A Happy New Year For the Global Resistance Against the New World
Order? Paul Joseph Watson | 2010 was a year of worldwide awakening, 2011
will go a long way to proving whether or not the resistance has teeth.
MSNBC Analyst: Constitution Has “No Binding Power On Anything” Kurt Nimmo |
For the establishment political class, the Constitution is completely
irrelevant.
What Kind Of Mood Are The American People In As We Enter 2011? The American
Dream | The following is a compilation of recent poll results that show just
how frustrated and angry the American people are becoming as we enter
2011.
10 Modern Methods of Mind Control Nicholas West | We have entered a perilous

phase where mind control has taken on a physical, scientific dimension that
threatens to become a permanent state.
Wash Post Staffer: Constitution Impossible to Understand Because It’s Over 100
Years Old [ In a meaningfully lawless society as pervasively corrupt, defacto
bankrupt america, constitution / laws have become irrelevant in application
and effect. After all, even zimbabwe has a constitution / laws, but I dare say
no one would suggest they have any practical effect in reality, as is also so
in america. I therefore believe Klein is correct but for reasons other than age
and malleability. Indeed, anyone who has written a legal brief and
society as america, zimbawe, etc.. ] Breitbart | On word that the House will
open its next session with a first-ever reading of the U.S. Constitution,
blogger Ezra Klein suggests that the Constitution is irrelevant due to its age
and politically-malleable language.
Euro has 1-in-5 chance of lasting decade: UK think-tank Reuters | The Center for
Economics and Business Research said Spain and Italy would have to
refinance over 400 billion euros ($530 billion) of bonds in the spring,
potentially sparking a fresh crisis within the 16-nation euro area.
Will It Be A Happy New Year For the Global Resistance Against the New World
Order? 2010 was a year of extremes – a clear intensification of the tyranny
being metered out in pursuit of a new world order, but also a tipping point in
the accelerating awakening of human consciousness to the reality of the
agenda for global serfdom.
Man strips to underwear, socks in protest at airport security checkpoint A man
protesting airport security measures was arrested after he stripped down to
his underwear and socks.
NYC Police Tightens Security for New Years Eve Hundreds of radiation detectors
will be dispersed throughout the area, along with devices that can detect
biological contaminants. Crowds will be shepherded into closely scrutinized
pens where backpacks and big bags are banned.
MSNBC Analyst: Constitution Has “No Binding Power On Anything” [ In a

meaningfully lawless society as pervasively corrupt, defacto bankrupt
america, constitution / laws have become irrelevant in application and effect.
After all, even zimbabwe has a constitution / laws, but I dare say no one
would suggest they have any practical effect in reality, as is also so in
america. I therefore believe Klein is correct but for reasons other than age
and malleability. Indeed, anyone who has written a legal brief and
society as america, zimbawe, etc.. ] Now that Republicans have a majority
in Congress, they are pretending to be constitutionalists. In order to
demonstrate this, they will theatrically read aloud the Constitution from the
floor of the House next week.
TSA Wants To Expand Groping Of Vaginas The TSA agent used her hands to feel
under and between my breasts. She then rammed her hand up into my
crotch until it jammed into my pubic bone … I was touched in the pubic
region in between my labia.
As Frustration Grows, Airports Consider Ditching TSA Some of the nation’s

biggest airports are responding to recent public outrage over security
screening by weighing whether they should hire private firms such as
Covenant to replace the Transportation Security Administration.
China Makes Skype Illegal [ China, the current creation and envy of destructive /
self-destructive poppy bushies, clintonistas, wobamanoids, et als
americans, is so pathetic in their own special totalitarian communistically
sad way. ] THE Chinese regulator has declared Internet phone services other
than those provided by China Telecom and China Unicom as illegal, which is
expected to make services like Skype unavailable in the country.
Drudgereport: Medicare Bound to Bust 'by 2017' as First Boomers Hit 65...
POLL: Only 21% Want FCC to Regulate Internet...
Fear of Political Agenda...
Next Year's Wars: 16 brewing conflicts to watch...
VIDEO: Oil Could Push to $110...
Berlin sees most snow in December since 1900s...
White House Plans to Push 'Global Warming' Policy, GOP Vows Fight...
FLASHBACK: Gore Reports Snow and Ice Across World Vanishing Quickly...
Top China blogger forced to shut down magazine...
Non-US banks gain from Fed crisis fund; Half of emergency credit facility cash
went to foreign institutions...
Backlash...
THE MAN WHO TOOK ON BIG SIS... Pilot angered TSA with video... ‘…News10
established a relationship with the Liu family last July after their rental home in
Sacramento's Oak Park was destroyed by an arsonist. Four firefighters were
injured when the house exploded…’
Oil rises near $92...
Ex-SHELL president sees $5 gas in year...
MATTHEWS: Why Doesn't Obama Just Release The Birth Certificate?
NYT: Bundle Up, It's Global Warming...
Obama Reading List: Book on Reagan... [ Reagan would absolutely detest, hate (yes,
Reagan could hate ) wobama and did detest, hate people like failed president like no other in
history, wobama]
Duma Disses Obama, delays START vote...
Assange fears death in a US jail...
OPEC Members 'Target $100'...
China, following pervasively corrupt, meaningfully lawless, defacto bankrupt
american example, bars political dissident access to lawyers...
Indefinite detention possible for suspects at Guantanamo Bay...
DARK SIDE OF SIS: AGENTS RAID HOME OF PILOT CRITICAL OF TSA...
Posted Video Exposing Airport Security Flaws...
PUNISHED...
DEFICIT HITS RECORD...
MINORITY REPORT: Spielberg advising on rebranding Dems... [ Come on! You can’t
unring the bell on the damage they’ve done by particularly doing the opposite of what they said,
from perpetual war, to no prosecutions of the wall street frauds now marked to anything as per
criminal courtesy via FASB rule change, etc.. They b*** s*** like their mascot, ‘wobama the b’ (for
b*** s***); not that the republicans are substantially different … they’re incompetent, corrupt, etc...
They’ve embraced the ‘history of decline and fall of nation-states’. ]
TODAY: Obama pledges 'singular focus' on economy...
ONE YEAR AGO: 'Obama to focus hard on economy'...
TWO YEARS AGO: Obama to put 'renewed focus' on economy...
US press should fear being targeted: Assange...
BLOWOUT: Government liabilities rose $2 trillion for year...
PEOPLE: 308,745,538
DEBT: $13,868,461,000,000
STATE OF THE NATION: Census shows slowing US growth...
GOP-leaning states pick up seats in Congress...
NY, OH, IL, MA, NJ and PA lose seats...
FCC Gives Government Power to Regulate Web...
Agency splits along party lines...
DeMint vows to reverse 'Internet takeover'...
AP: TOP 10 STORIES OF 2010...
MOODY'S May Cut US Rating on Tax Package...
New spending bill totals $1.1 TRILLION!
Congress Job Approval Rating Worst in GALLUP History...
FLASHBACK: Obama Promised 5-Day, Public Review of Bills Before Signing;
Signs Tax Bill Within Hours of House Vote...
13 million get unexpected tax bill from 'tax credit'?
Pelosi skips vote on tax bill, then shuns signing ceremony...
House votes to extend gov't funding -- through Tuesday...
OBAMA FALLS TO 40% APPROVE IN FOXNEWS POLL...
The FCC's Threat to Internet Freedom...
Dems play politics with 'net neutrality' vote...
'Sweeping new rules'...
REGULATE...
SHUT: Music Web Sites Dispute Legality of Their Closing...
UK ministers threaten: Censor web, or we will legislate 'to protect children'...
Plan to block all online porn...
Hugo Chavez defends plan for web regulations...
Venezuela tightens Internet regulation...
THEY'RE COMING FOR THE INTERNET!
JULIUS SEIZURE
$2 trillion debt crisis threatens to bring down 100 US cities...
States face $140 billion in budget shortfalls...
32 states borrow billions from feds to cover unemployment benefits...
Friedman: America the Stupid...
French AAA Grade at Risk as Downgrades Sweep Europe...
Oil Heads Toward $100...
Chavez defends plan for Internet regulations...
UK ministers threaten: Censor web, or we will legislate 'to protect children'...
The FCC's Threat to Internet Freedom...
Dems play politics with 'net neutrality' vote...
'Sweeping new rules for the Internet'...
SKorea detains Chinese fishermen...
Security Council meets on tensions...
North Threatens More Attacks...
... says war would go nuclear
China warns of escalating arms race...
'Don't ask' repeal moves toward law...
DREAM OVER: Senate Blocks Bill for Illegal Immigrants...
Budget Brawl Looms in Congress...
Michelle wears $2,500 purchased dress to Christmas concert...
Senate Plans Weekend Votes on 'Don't Ask, Don't Tell,' Amnesty Bill...
Senator: Gay ban tied to Russia treaty...
UN PLANS INTERNET REGULATION [ Those who can’t do … work at the u.n., in
the u.s.; after all, for the first time in human history, the internet has for the most
part enabled an unfettered look at the truth and truthful reasons for the
unequivocally sad state of the world. That a supposed world body should support
and potentially facilitate the encroachment upon such global communication is
reason enough to dismantle such an already discredited body which arbitrarily
seeks enforcement of some ‘resolutions’ as to some but not others ( ie., israel,
u.n. resolutions 242, 338, etc., israeli and american war crimes, etc..) Raison d’tre
… I don’t think so! Quite the contrary! ]
Regulators close banks in GA, FL, AR, MN... [ Regulators shutter 3 small banks in
Ga., 1 each in Fla., Ark., Minn.; 157 banks closed in 2010 ]
Payrolls Drop in 28 States, Joblessness Rises in 21...
Nevada rate to 14.3%...
Rhode Island City Nears Bankruptcy...
Ireland Debt Downgrade...
IMF chief worried about Europe domino effect...
Senate clerks preparing to read 1,924-page spending bill on floor -- for 50
hours!...
Senator: 'There's No Way' To Read Entire Bill Before Vote...
KERRY: 'Why Would We Have To Read Something?'
McConnell offers 1-page resolution in place of 1,924-page spending bill...
SHOWDOWN: Gingrich Urges Fillibuster...
Biden To GOP Opposition: 'Get Out Of The Way'...
Reid: Earmarks are 'what we're supposed to do'...
Ban on Gitmo transfers vanishes...
Omnibus bill loaded with goodies for abortion industry...
PRIORITIES: House approves bill to make hybrids louder...
23% Say USA Heading in Right Direction, Lowest Since Obama Took Office...
POLL: Just 29% think Obama will be re-elected...
Is America the sick man of the globe?
BUCHANAN: Is this our America anymore?
UK Red Cross Bans Christmas to Avoid Offending Muslims...
SALVATION ARMY bell ringer caught stealing from kettle...
Deputies suspended after getting into brawl at party...
2 women charged with robbing 74-year-old...
Hundreds of gifts for kids stolen from 'Toys for Tots'...
Thousands of dollars in donated toys ruined after skunk attack...
Grocery prices grow by 1.5 times inflation rate...
Socialist president plays host to capitalism...
REPORT: Obama told lawmakers not passing tax deal could end presidency...
A $48 billion earmark...
PAPER: Year of bullying, bluff and bailouts leaves euro fighting for its life...
Reeling from riots, Italy faces uncertainty...
Greek anti-austerity strike turns violent...
VIDEO...
MORE UNREST: 2011...
$575 million PER PAGE...
6,488 earmarks...
McConnell fumes: 'No one has seen it'...
Reid threatens to keep Congress into next year...
Intelligence Reports Offer Dim Views of Afghan War...
HOLBROOKE LAST WORDS: STOP THIS WAR!
UPDATE: RUSSIA TO USE CHINA CURRENCY IN TRADES...
UK GRANTS ASSANGE BAIL; SWEDEN APPEALS...
Release delayed...
Lawyer: Secret Grand Jury Meeting Outside Washington on Leak...
CHRISTMAS CRIMES: Drive-By Purse Snatcher Terrorizing Women In NJ...
2 women charged with robbing 74-year-old...
Hundreds of gifts for kids stolen from 'Toys for Tots'...
Thousands of dollars in donated toys ruined after skunk attack...
Copper thieves burn down city's Christmas tree...
Burglar steals family's gifts -- and its dog!
Grave robbers steal 400 urns from cemetery...
'Grinch' Steals Packages Off Doorsteps, Signs For Deliveries...
Home Invaders Tie Up 12-Year-Old Boy, Take Video Games...
90-Year-Old Man Put In Choke-Hold, Robbed Of $370...
'Tea Party' anger simmers over backroom deal; Ramps up efforts...
2 Bank Failures Bring Year's Tally To 151...
COPS: Madoff's son hangs himself with dog collar in SoHo apartment...
...gave mechanic $400 tip day before suicide
Madoff Trustee Launches $19.6 Billion Lawsuit; 60 accused of participating in
'illegal scheme'...
Pump prices close in on average $3 a gallon...
FLASHBACK: $1.81 when Obama took office...
BLOW TO O: JUDGE RULES GOV'T CAN'T MANDATE CITIZENS BUY HEALTH
CARE...
Cantor: Direct Appeal to Supremes...
POLL: Support For Obamacare Hits New Low...
Pelosi: 'Are You Serious?'
Obama: 'I'm itching for a fight'...
UNCONSTITUTIONAL
Barbara Walters: 'This Guy (wobama) Has an Emotional Problem' [ Yes, it’s true,
babawawa … wobama has substantial mental problems which along with inherent
criminality are pervasive in america which also includes boner, and where were
you in discussing such, babawawa regarding psychopaths bush, clinton, etc., or
even former beau, senile greenspun ]...
DEFICIT HITS RECORD...
Putin Slams West for Assange Arrest...
US cable: Cuba to be insolvent within 2-3 years...
Assange Lawyers Prepare for U.S. Spying Indictment...
Teen Arrested in Hack Attacks...
Donations to WIKILEAKS are Tax Deductible -- in Germany...
Anonymous cyberwarriors stun experts...
Media outlets may be probed over WikiLeaks stories, joe ‘zelig zionist
incompetent and corrupt‘ lieberman in Campaign To Trample The First
Amendment claims Can the US government prosecute media outlets that
reported on the WikiLeaks cables? According to joe ‘zelig zionist incompetent
and corrupt‘ lieberman in his Campaign To Trample The First Amendment, the
answer is maybe.
Home Values May Drop by $1.7 Trillion This Year...
UNEMPLOYMENT WEEK: DOWN TO 421,000; REVISED UP LAST WEEK 438,000...
POLL: Most Americans Say They’re Worse Off Under Obama...
F O [Related: Olbermann: Obama Is ‘God Damned Wrong’ ]
REVENGE OF THE WIKIS!
Army of hackers targets the Swedish government...
Take down MASTERCARD site...
...VISA
PAYPAL...
AMAZON braces for hactivist attack...
Palin under cyber attack...
Assange's 'poison pill' file impossible to stop...
MOSCOW: Give Assange Nobel Peace Prize...
SENATE REJECTS REPEAL OF DON'T ASK DON'T TELL...
House Dems push through massive budget bill...
Final House Race Decided; GOP Net Gain: 63 Seats...
Ron Paul, Author of 'End the Fed,' to Lead Fed Oversight Panel...
Student protesters in London turn violent over tuition hikes...
Thousands try to break through police barricades at Houses of Parliament...
...attack car containing Prince Charles, Camilla...
Rolls Royce hit with paint; rear window smashed...
US Treasuries hit by biggest sell-off since LEHMAN...
Prices Plunge for 2nd Day on Deficit Fears...
Rattles investors...
Oil tipped to bubble over $100 barrel...
Food Stamp Rolls Continue to Rise...
SHOCK POLL: Americans Believe China Has Surpassed USA in Economic
Strength...
'U.S. fiscal health worse than Europe's'...
Sorkin: Palin TV show is 'snuff movie'... [ Yeah … ‘she’s really all that’ and worse … I have
great difficulty getting past the fact that she’s so incredibly dumb … not just ‘nonintellectual’ …
butt really dumb! ] ‘… Sorkin, writer of the recent Facebook movie The Social
Network, also accused the Fox News contributor of making a "snuff film" after the
latest episode of Sarah's Palin's Alaska featured the politician going hunting with
her father and shooting a caribou. He described Palin as "deranged", a "witless
bully" and a "phony pioneer girl". He also said The Learning Channel, the US
cable network, "should be ashamed of itself" for broadcasting her "truly awful
reality show"…’
Senate convicts Clinton-appointed judge... [ Come on! One way or another they’re almost
all getting bribed; including the initial lifetime appointment as alito, trump-barry, etc.. Abolish
the corrupt, costly, economically wasteful lifetime extravagantly appointed
federal courts (see RICO case
) End those lifetime licenses to steel. ] In earlier hearings, two attorneys who once
worked with Porteous had testified that they gave him thousands of dollars in
cash, including about $2,000 stuffed in an envelope in 1999, just before Porteous
decided a major civil case in their client's favor.
Assange could face espionage trial in USA...
Palin under cyber attack...
1st Amendment issues...
Assange's 'poison pill' file impossible to stop...
WIKILEAKS: Stop Us? You'll Have to Shut Down Web...
Berkeley 'resolution' honoring leaker...
Scientologists outraged over spoof Christmas play... [ Hubbard was such a total fraud!
Scientologists are delusional! ]St. Petersburg, Florida – ‘A controversial holiday
musical production is set to open at American Stage Theatre in St. Petersburg.
Photos: Pictures of A Very Merry Unauthorized Children's Scientology Pageant
"A Very Merry Unauthorized Children's Scientology Pageant" is a musical play
designed for the holiday season, but this play will not focus on Jesus Christ, but
instead the story is about L. Ron Hubbard, the founder of the church Of
Scientology…’
NO BAIL...
Assange 'sabotaged condom' during one night stand...
Refused to wear one during another...
Stockholm police: Both women are victims...
INTERPOL WARRANT FOR NOT WEARING PROTECTION?
ASSANGE UNDER ARREST:
'HE DIDN'T WEAR A CONDOM'
Under arrest, will Assange dump the Doomsday Files?
Assange: Don't shoot messenger for revealing uncomfortable truths...
FLASHBACK: HILLARY COMPLAINS GOVERNMENTS BLOCK FREE FLOW OF
INFO ON INTERNET...
WIKILEAKS: LIVE UPDATES...
FCC push to regulate news draws fire...
Lieberman: NYT may have committed crime by printing WIKILEAKS docs...
US to Host World Press Freedom Day in 2011 … [ What a total travesty! The u.s.
as host … What a cruel joke! ] ...
OBAMA RACES TO CUT TAXES BEFORE REPUBLICANS: 6.2% Social Security
tax would drop to 4.2% for workers for one year... MORE
THE NEW OBAMA!
SURPRISE TAX CUT MOVE [ As with defacto bankrupt america generally, more
defacto bankrupt social security system, etc., are distinctions without significant
differences. ]
OIL HITS $89...
Pump prices hit 2-year high...
Schwarzenegger Declares Fiscal Emergency, Proposes $9.9 Billion In Cuts...
Top Democrats defect, join unified GOP...
WIKILEAKS' Assange Will Release Encrypted Files If Arrested...
Cables Reveal How US Manipulated Climate Accord...
Cable: China Leaders Ordered Hacking on GOOGLE...
Meddling by Neighbors Adds to Iraq's Woes...
Government Workers Ordered Not to Read Cables...
Gingrich: Leaks Show Admin 'Shallow,' 'Amateurish'...
McConnell: Assange a 'High-Tech Terrorist'...
List of facilities 'vital to US security' leaked...
Mirror Sites Appear by the Hundreds...
Assange Speaks...
Hillary Jokes...
US forced to shake up embassies around world...
THE DOOMSDAY FILES
PAPER: Wave goodbye to Internet freedom...
[ I’m absolutely astounded that the world is not profoundly grateful to Assange et als for providing
insight into the machinations and insanity of pervasively corrupt, defacto bankrupt america, et als
who wreaked havoc on the world as they pillage, plunder, and destroy (lives, nations, etc.). ]
+39,000 JOBS IN NOVEMBER...
BOEHNER: Dem Leaders Should Stop Wasting Time on Tax Hike Votes...
HALPERIN: Dems 'In Midst of Nervous Breakdown'...
Obama Makes Surprise Trip to Afghanistan...
Flies 7,000 miles -- talks to Karzai for 15 minutes on phone!
Forgets the Coast Guard...
Leaves Biden behind to handle 'disappointing' jobs report...
Reid, funded by casinos, pushes online gambling...
ABCNEWS accused of breaking embargo...
2010 death toll of US troops nears that of 2001-2008 combined...
OBAMA SPEECHWRITER JOKES ABOUT TSA GROPING: Allows 'defrocked
priests to give back to society'...
US Deficit-Cutting Plan Falls Short of Needed Votes...
UNEMPLOYMENT UP TO 9.8%
HILLARY: Secretary of State will be 'my last public position'... ... PITCHE$
$IGNED DVD ON HOME $HOPPING NETWORK..
US TO BAILOUT EU [ Riiiiight! Sounds like a plan! After all, in defacto bankrupt america
money does grow on trees … derivatively (pun intended) that is … you know … that ever more
worthless fiat paper currency … and ultimately, existentially, philosophically, doesn’t paper come
from trees … sure it does …so, no problemo since money grows on trees. ]
BOMBSHELL: European banks took big slice of Fed aid...
Hundreds of billions of dollars...
Fed reveals global extent of its backing... ]Funds went to stalwarts of American
industry including GE and Caterpillar and household-name companies such as
Verizon, new data show.
GEORGIA: HUNDREDS LINE UP IN COLD FOR HEAT HELP...
Assistance Funds Quickly Depleted...
'Almost like being in soup line during great depression'...
VIDEO...
DELAYING TAX VOTE COULD 'CRASH STOCK MARKET' STARTING 12/15 [ Come
on! There’s no way to justify the tax cut to the top 1% including the frauds on wall
street … their threats don’t hunt no more … the nation’s defacto bankrupt … see
Davis, supra! ]
Chase Bank orders branch to remove Christmas tree...
Cyber attack forces WIKILEAKS to change web address...
Respected media outlets collaborate with organization... [ Said outlets and other
disseminators and of course Wikileaks deserve accolades for the advancement of first
amendment liberties in the name of an informed global body politick for all.]
UPDATE: Latest developments...
Foreign contractors hired Afghan 'dancing boys'...
Embassy cables portray Karzai as corrupt, erratic...
CIA drew up UN spying wishlist...
Assange speaks...
UPDATE: Latest WIKILEAKS developments...
Foreign contractors hired Afghan 'dancing boys'...
Embassy cables portray Karzai as corrupt, erratic...
CIA drew up UN spying wishlist...
SANTA CLAUSE: FED AID WENT TO COMPANIES, BANKS, OFFSHORE...
SECRETLY BAILED OUT GE -- GE NEWS OUTLETS FAILED TO REVEAL IN FED
COVERAGE...
SANTA CLAUSE: FORD, BMW, TOYOTA Took Secret Government Money......
Fed Created Conflicts in Improvising Financial System Rescue...
Tax Breaks for Bailout Recipients Spark Debate...
MORE SECRETS: Fed Withholds Data for $885 Billion in Loans...
RUSSIA TO HOST '18 WORLD CUP FINALS...
Qatar selected '22 host over USA, others...
'AMERICAN PSYCHO' musical in works... [ I recommend the derivative films, American
Psycho and American Psycho 2, for insight! ]
National Board of Review: SOCIAL NETWORK named best film... [ National board
of what? ‘Inception’ is by far and away the ‘Best Film’ across the board, in all
categories, and on the list! ] LIST...
BANK OF AMERICA Becoming 'Bank of Asia' as Revenue Increases 30% ...
RESET: PUTIN CRITICIZES USA OVER WIKILEAKS … [ Putin deserves the
greatest deference in matters of global concern in light of his greater rationality;
america’s self-serving accusations are merely envy and projection / displacement
(in psychoanalytic terms) of america’s pervasively corrupt, criminal, broken
system which is a far cry in reality from defacto bankrupt america’s
propaganda.]...
REWARD: [ The payoff. Bribe complete! Next bribe scenario … ] CITI to Hire
Obama's Ex-Budget Chief Orszag...
FLASHBACK: Rubin and friends ride NY-DC shuttle...
ZUCKERMAN: Watching America's Decline and Fall [the moral authority of the
West has dramatically declined in the face of the financial crisis. It has revealed
deep fault lines within Western economies that have spread to the global
economy. The majority of Western governments are running fiscal deficits of 10
percent or more relative to GDP, but it is increasingly clear that there will be no
quick fixes, that big government and fiscal deficits will not bring us back to the
status quo ante. Indeed, the tidal wave of red ink has meant that the leverage-led
or debt-led growth model is dead. Developed countries will be forced to deal with
their debt on every level, from the personal to the corporate to the sovereign.
Being able to borrow may have made people feel richer, but having to repay the
debt is certainly making them feel poorer, particularly since the unfunded
liabilities that many governments face from aging populations will have to be paid
for by a shrinking band of workers. (Ecoutez, mes amis!) Demography is destiny.
As a result, there is a burgeoning consensus that we are witnessing an inevitable
rise of the East and a decline of the West…( Harry Dent, Jr. Economy will be in a
Depression by 2011
The worst of this next depression is likely to hit between mid-2010 and mid-2013,
especially around early 2011, but if the banking system continues to implode a
deep downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
Inflation will Increase until mid- 2010 and then turn to Deflation
Interest Rates will Increase
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010
and 2012). ) ]...
Interpol issues wanted notice for Julian Assange [ They just can’t take the
truth! ] ...
US cuts access to files [ Think about it. Really think about it. Their policies are in
the tank, along with the nation and the rest of this world as a consequence. Don’t
those so detrimentally affected (everyone) have a right to know? I think in light of
the global frauds, contrived perpetual wars though defacto bankruptcy of this and
other nations, pervasive corruption and crime, failed policies domestically and
geo-politically while serving the very parochial interests of the self-interested few,
the answer is an unequivocal, YES! I believe that world history will write Mr.
Assange as a hero in the truest sense. He should be given a medal; and,
certainly, since mr. b*** s*** wobama undeservingly got a ‘nobel peace prize’
(what he does, not what he says, ie., Afghanistan, etc.), who more than Julian
Assange is deserving of that and more? Cover-up / propaganda … thy name is
fallen america.]...
WIKILECTURE: 'HILLARY SHOULD RESIGN' ‘…Hillary Clinton, Julian Assange
said, "should resign." Speaking over Skype from an undisclosed location on
Tuesday, the WikiLeaks founder was replying to a question by TIME managing
editor Richard Stengel over the diplomatic-cable dump that Assange's
organization loosed on the world this past weekend. Stengel had said the U.S.
Secretary of State was looking like "the fall guy" in the ensuing controversy, and
had asked whether her firing or resignation was an outcome that Assange
wanted. "I don't think it would make much of a difference either way," Assange
said. "But she should resign if it can be shown that she was responsible for
ordering U.S. diplomatic figures to engage in espionage in the United Nations, in
violation of the international covenants to which the U.S. has signed up. Yes, she
should resign over that."…’
CITY ON EDGE: Cash-Strapped Newark, new jersey Forced To Lay Off 14% Of
Police Force... [ From decades old (1978-1985) direct personal experience with
newark, n.j., the police are the absolute last cuts that can be afforded to be
made. Indeed, while walking through Military Park (a sliver of a “park” - more a
pedestrian thoroughfare/cement walks) in newark, new jersey on the way to
the bank during lunch hour, I heard the clearly audible screams/cries of what
turned out to be an old lady on the ground with blood streaming from her
mouth. I ran toward the sound of the cries, the source of which I could not see
because there were so many people in and about this thoroughfare so as to
block any vision of the source of the cries. When I came to the woman, on the
ground, blood streaming from her mouth, I asked what happened, to which
she responded she had been hit in the mouth and knocked to the ground, her
purse stolen/put inside her shopping bag, and she pointed out the criminal
casually now walking across the main street. Nobody stopped to help her,
many having passed her by. I slammed the thug to the ground so hard that, in
light of all the blood and confusion (limbic system / adrenalin flow) I thought I
had been stabbed (the blood was from his elbows hitting the pavement so
hard - no one helped / a crowd gathered / an undercover cop happened along).
When I testified at the Grand Jury Proceeding I made sure his threat on my life
was set forth in prima facie fashion so as to maximize the DA’s position with
both felonies ( he went to prison – pled out ). The other case I wrote about
here ( This was included on my website in the Psychology forum discussion
of ‘bystander effect’ / diffusion of responsibility. ) - Having had occasion to
have run down a mugger in newark, n.j. who apparently had followed a girl
from the bank on her way to the bursar to pay tuition, though in pretty good
shape, I was astounded by how totally exhausting such a pursuit was, how
much like rubber my arms were when I traded punches with the perpetrator,
and truth be told, if I had a flashlight on my belt, I have little doubt that I would
have probably used it to subdue the perp. The girl was not that seriously
injured, did get her pocketbook and tuition back, and the criminal went to jail.
The other thing about such a pursuit that amazed me was that no one else
assisted the girl or me despite being in a position to do so). (Other newark /
new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c.,
d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne
trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc..
) ]
Nation's '2nd Most Dangerous City' (camden, new jersey) To Lay Off Nearly Half
Of Police Force...
Chicagoland: Vandals torch Christmas charity van...
Businessman gets harsh prison term (Washington Post) [ Come on! Quality of
justice concerns by pervasively corrupt / defacto bankrupt america (I’ve seen this
first hand and have sworn under penalty of perjury to the readily discernible
corruption in the ‘so-called judicial process’ / american illegal system; and
Orwellian britain / european illegal systems little better as toadies to the criminal
americans)? Don’t make me laugh? The u.s. illegal system is a cruel joke! What
parallel universe / fantasy land are they living in? ] A Moscow judge's decision to
impose the harshest possible penalty on Russian oil tycoon Mikhail
Khodorkovsky signaled that Prime Minister Vladimir Putin intends to keep a firm
grip on power and is unwilling to bend to American and European concerns
about the quality of Russian justice.

infra)

Dear Sir:

thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
----------
-----
Former president convicted of rape (Washington Post) [ Between the orgies, war
crimes, assassinations, etc., what a bunch of sick perverts, criminals the israeli
operatives / powers that be and their friends are; see, ie., Victor Ostrovsky
Mossad ebook download in PDF format September: Victor Ostrovsky, a former
Mossad trainee, publishes his book By Way of Deception ... Israel's Mossad has
regularly faked Australian passports for its. spies, … 1
http://khup.com/keyword/victor-ostrovsky-mossad-by-way-of-deception.html 2
http://khup.com/keyword/page-2/victor-ostrovsky-mossad-by-way-of-
deception.html 3 http://khup.com/keyword/page-3/victor-ostrovsky-mossad-by-
way-of-deception.html ] An Israeli court finds former president Moshe Katsav
guilty of rape, indecent assault and sexual harassment of female subordinates,
the most serious conviction of a former top official in Israel's history
A villain in foreclosure crisis (Washington Post) [ Villain … as in singular … as

opposed to plural in a very big way … I don’t think so … We can hear new
words ringing and put to that once popular theme, formerly of love but now
of fraud, ‘Where do we begin, to tell the story of how great and massive
frauds can be, that great fraud story that spreads from sea to sea, in defacto
bankrupt america and the futures taken from we … Yes, ‘Fraud Story’ … the
forever american story… It’s really that bad and worse than could be
imagined at this immutably intractable juncture. I mean, what isn’t
fraudulent in pervasively corrupt, defacto bankrupt america today, from
courts, to government, to policy, etc., ie., inter alia see infra, Senate
convicts Clinton-appointed judge... [ Come on! One way or another they’re
almost all getting bribed; including the initial lifetime appointment as alito,
trump-barry, etc.. Abolish the corrupt, costly, economically wasteful
lifetime extravagantly appointed federal courts (see RICO case
yofperjury.pdf
those lifetime licenses to steel. ] In earlier hearings, two attorneys who once
worked with Porteous had testified that they gave him thousands of dollars
in cash, including about $2,000 stuffed in an envelope in 1999, just before
Porteous decided a major civil case in their client's favor. ] A registry with
67M mortgages on file shoulders much of blame in the uproar over the
paperwork mess.
Economic forecasters see growth in 2011 (Washington Post) [ Growth indeed …
in the deficits that is … and in insurmountable fashion at that … which masks /
obfuscates in the short-term the weakness and structural shift in the worst
economic terms imaginable while benefiting the self-interested few (ie., frauds on
wall street, war profiteers, the ‘already campaigning for the next election’ pols,
etc.. The trade-off is far from commensurate.

Dec 17, 2010


April 2009.

global economy.
months in a row.

I’m shocked.”

unemployed.
Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"
declared here in July, the most recent in a string of dire predictions from
Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked
Davidowitz if he had any regrets, or was ready to throw in the towel given
recent signs of economic revival. Are you kidding me? "Here are the
numbers...we're broke," Davidowitz declares, noting the U.S. government
goes $5 billion deeper into debt every day and is facing $1 trillion-plus
annual deficits for the next decade. "In other words, we're bankrupt."As with
the economy, Davidowitz is unwaveringly consistent in his views on
President Obama, calling him "deranged, dysfunctional and
and I think bondholders are simply happy to get anything out of a country that
PLEASE BE CAREFUL OUT THERE! ‘
] As 2011 begins, the U.S. is poised for its strongest year of economic growth
since the recession began three years ago. Plenty of risks that could
undermine the recovery remain, and it could take years of solid growth to
get the nation out of its deep economic hole.
Krauthammer: How to impose a liberal agenda (Washington Post) [ I am not being

sarcastic here when I say, and I believe with good reason, that liberal /
conservative, republican / democrat labels, agendas, distinctions are
complete fictions today in favor of the reality of total incompetence,
pervasive corruption, and self-interested expedience. Indeed, with dumbya
bush bush being the easiest of presidential acts to follow, wobama’s abject
failure can be tied to his label-defying continuation of contraindicated self-
sustaining / self-defeating war policies, profligate spending on less revenue,
etc.. Even the Reagan days are besmirched by the reality of the substantial
growth, not shrinkage of the government bureaucracy. The 2 bush
incompetents / war criminals were blazing bureaucrats by any standard
which was what made poppy bush a ‘required’ presence on the Reagan
ticket (cia, government mob, etc.). The clintons no different, and of course,
‘wobama the b’ for b*** s*** at best no different and probably worse which of
course, consistent with their spend more on less revenues, particularly to
favor the few (ie., frauds on wall street, war profiteers, government
employees and contractors, etc., is reflected in the insurmountable budget
deficits and ultimately failed policies across the board. ]
Come on! Do you really believe those employment numbers? Given their
desperation, at best there was a collusive one day spike of one-day duration
temp hires on the last day of the month!
5 More Themes for 2011 Suttmeir ‘5 themes for 2011 (6 more are on their way):
1. Home prices will resume a decline that began in mid-2006. We had the home
buyer tax credits expire in mid-2010, and government sponsored mortgage
modifications provided limited help. In 2011 we face continued foreclosure issues
including questionable documentation, and banks have a record high Other Real
Estate Owned (OREO). OREO is up to $53.2 billion at the end of the third
quarter, up 338.2% since the end of 2007. Depressed home sales are being sold
at a 30% to 35% discount, which reduces property appraisals at the county level.
Home builders will have to compete with these lower prices and we need a
mortgage modification program for all Americans, not just those at risk of losing
their homes. QE2 is not working and US Treasury yields are higher causing
mortgage rates to rise. “The Great Credit Crunch” began with housing, and
that foundation needs repair before Main Street can recover with
sustainable job creation.
2. Community banks still have $1.43 trillion in commercial real estate loans
that require resolution. The FDIC’s List of Problem Banks rose to 860 in the
third quarter of 2010, which is 11.1% of all insured institutions. My analysis
shows 2,485 or 32% of all banks overexposed to commercial real estate loans,
and 3,938 or 50.7% of all banks with real estate loan pipelines that are 80% to
100% funded. This stress needs to be addressed before jobs can be created on
Main Street USA as housing and construction drive local economies. “The Great
Credit Crunch” will not end without a program to remove toxic real estate
loans from the books of community banks around the country.
3. The banking system is supposed to de-lever risk, but it has not. When I look
at the Notional Amount of Derivative Contracts I cringe at the fact that since the
end of 2007 this risk category has grown $71.6 trillion since the end of 2007,
that’s an increase of 43.5% to $236.4 trillion at the end of the third quarter in an
environment where banks should be de-leveraging not adding to this risk where
financial time bombs are ticking.
4. Fannie Mae and Freddie Mac will continue to drain taxpayer money as the
Treasury provides unlimited lines of credit through 2012. The cost currently is
about $150 billion, by far the largest of any government bailouts. We need to
unwind the activities of these GSEs, and beef up Ginnie Mae as the go to
government agency that backs new mortgage issuance.
5. Because of the housing market depression and stress in the banking

system the unemployment rate will stay above 9% for all of 2011.
Tracking the US Capital Markets – US stocks are overvalued fundamentally and

overbought technically on both daily and weekly charts. The snow storm causes
stocks to drift lower and higher.
• The major equity averages are below this week’s risky levels as the year draws
to a close at: 11,629 Dow, 1269.4 SPX, 2682 NASDAQ, 5215 Dow Transports
and 808.57 Russell 2000.
• Fifteen of sixteen sectors are overvalued according to ValuEngine with only
37.9% of all stocks undervalued. At 35% the stock market tends to find a top.
Only 17.4% of all stocks are undervalued by 20% or more.
Here are my remaining themes for 2011 – Six through Eleven (a continuation of 1-5)
6. QE2, the $600 billion program where the Federal Reserve buys long dated US
Treasury Securities has been a failure so far. The yield on the 10-Year was 2.334
when Fed Chief Bernanke touted QE2 in October only to see the yield nearly 125 basis
points higher in December. The primary intent of QE2 was to lower longer-dated US
Treasury yields. Yields held this week’s value level at 3.494 again on Wednesday.
There is risk to 3.75 to 4.25 in 2011, but with or without this weakness, the 10-Year yield
will decline to 2.75 to 2.50 during 2011.
7. Comex Gold has gone parabolic, and therefore you cannot predict how high
gold prices can climb. I do know that corrections will be fierce and painful for those
that buy strength instead of weakness. The 2011 neutral zone is between $1350 and
$1450.
8. Nymex Crude Oil is headed back above $100 per barrel according to most
experts. I cannot rule that out for 2011, but the downside is more significant given
weekly closes below the $87 per barrel area. If gasoline stays above $3.00 per gallon
demand on Main Street will slow down and will be a drag on economic growth and job
creation.
9. Problems among the PIIGS nations denominated in euros will trump problems
at the state level in the USA. This will keep the euro versus the dollar in a trading
range. We will begin 2011 with a quarterly pivot around 1.3150.
10. US stocks show strong technical characteristics. The S&P 500 is above the
61.8% Fibonacci Retracement of the decline from October 2007 to the low of March
2009 at 1228.74. Dow Theory had a Buy Signal in early November and another
confirmation in December. The Dow Industrial Average – I project downside to 9,375
in the first half with a rebound to 11,500 in the second half. Strength above 11,500 will
return to 11,500, and the 2011 close will be at or below 11,500.
11.ValuEngine.com indicates that equity fundamental are not cheap. Fifteen of
sixteen sectors will begin 2011 overvalued according to ValuEngine. The normal range
for the percent undervalued or overvalued stocks is 35% to 65%. We will begin 2011
close to the low end of the range for undervalued stocks and towards the high end for
overvalued stocks. Because of the battle between the technicals and
fundamentals, stocks will be reversal-oriented in 2011 and be little changed year
over year.
overbought technically on both daily and weekly charts.
• The major equity averages remain below this week’s risky levels as the year
draws to a close at: 11,629 Dow, 1269.4 SPX, 2682 NASDAQ, 5215 Dow
Transports and 808.57 Russell 2000.
positions within the next 72 hours.’
Struggling to the Finish Line: Dave's Daily ‘Most economic news today (Jobless
Claims, Chicago PMI and Home Sales) was, ahem, "better than expected"; still,
that didn't spark any determined buying. Maybe without any POMO Thursday
trading desks were running on empty. 2010 was an interesting year with lots of
erratic behavior but a Fed "stick save" in the end. Flash Crashes, elections, tax
issues, spending, unemployment, POMO and home prices were all center stage.
Now you're probably expecting some sort of forecast from your humble pundit,
but alas, all I can offer are three basic tenets to follow:
"The best laid schemes of mice and men go often askew."

-- Robert Burns
Or, if you prefer: "The best laid plans of mice and men often go awry"
-- John Steinbeck
"If you must forecast, forecast often."
--Economist Edgar Fiedler (ETF Digest Sacred Cow IX)
"Things change"
-- ETF Digest Sacred Cow X
You were expecting Dow 20,000?!?
Volume Thursday did improve a tad and breadth was flat… ‘
8 Contrarian Signs Against a 2011 Rally: My Thoughts Mansell ‘Recently my

grandfather sent me an article from DailyFinance.com. The article was listing 8
contrarian signs to suggest a stall in the current rally in 2011…Check out the
article for more information on each of the points and links to charts and etc. I
just list them below and my opinions on each.
1) Industrial production and capacity utilization have both stalled: This is a fair
argument and one that merits some consideration. My only comment would be
that just because it is slowing down does not necessarily bode poorly for the
economy (though "growth" may slow). It is my understanding that much of the
growth in the industrial production was in companies rebuilding inventories that
they depleted during the height of the recession. It should be obvious that it
would turn down at some point but I am curious to know if the recent downturn
has more than accounted for the loss of restocking inventories in the equation.
2) The Baltic Dry Index (BDI) has been in a downtrend since June: The BDI is
down because people the world over are worried about oversupply within the dry
bulk sector. This is also why a lot of the stocks within that sector trade at single
digit P/Es. My argument, though, is that low rates due to oversupply doesn't
suggest anything about the overall global economy and its recovery; it is just the
mismanagement of assets by industry executives.If we are making the argument
that the price being lower to ship goods is bad; here is an argument for gradually
raising rates.The way people are determining the oversupply is by looking at
outstanding orders; however, in 2010 around 50% of orders weren't delivered due
to cancellations by the companies who ordered them. I imagine a similar number
will occur in 2011 (source, slides 6 and 7). Also, I have read an interview with an
industry executive that suggests they have yet to see a slowdown in demand,
even with the increased number of ships AND the attempts of China's
government to slow its growth. The Chinese economy is still 10% larger than it
was last year, has grown substantially this year, and I think that growth has taken
out a large amount of the expected slack within the shipping industry. India and
other emerging markets are also supposed to be doing pretty well, suggesting
further demand there.Also, 21% of the current fleet (of Panamax vessels) are over
the age of 20 years old. I do not know what the average scrap rate is for a
panamax vessel but I know that currently there are non that appear to be over 35
and few that fall into the 30-35 range. This suggests that over the next 10 years
we'll see the scrapping of 1 out of every 5 of the current fleet. While this clearly
won't help short term rates, it does suggest that oversupply won't last long and
will begin improving over the next five years or so.
3) Interest rates are rising: Some have actually hailed the Fed's QE2 program as a
success based on this; clearly investors are expecting more inflation which is
why rates are rising and this inflation expectation started largely after the Fed
began that program. However, I was never a fan of this program and I don't know
how inflation is supposed to help the 10% of people who are unemployed who
find their savings eaten away by rising prices AND necessary living expenses.
4) Oil and gasoline have risen to levels that some analysts see as negative for
growth: This makes sense; however, I do not know much about this. I know gas
prices were much higher while the economy was stalling in 2008, but we didn't
have the unemployment we have now and the economy WAS stalling so it would
be hard to know the effect of high gasoline prices. I think we've all noticed its
quick rise, though, and it will lead to less disposable income.
5) Property taxes and other state/local taxes are rising: I don't know the absolute
amount of dollars for each but I know that Congress cut the social security tax for
working individuals over the next year which should help them make up some of
these rising costs. Also, consumers have been deleveraging and are spending
less disposable income on credit, which means that this shouldn't be too entirely
unbearable but will weigh on consumer spending nonetheless.
6) Retail investors are shunning the U.S. stocks: This to me suggests that it is a
time to buy. Especially since companies have the most cash on balance sheets
than they have had since the 1950s. As soon as the economy turns around they'll
produce returns on that cash or invest it abroad and earn those returns now.
Either way, you're currently getting more safety in cash, with greater growth
potential, for cheaper prices than available before and this is bad because....?
Also, aren't retail investors notorious for being wrong? There are investment
strategies based entirely around doing the exact opposite of retail investors;
while this doesn't mean we should dismiss their actions or automatically do the
opposite, I do think we should consider how much weight we're placing on retail
investors' behavior.
7) Margin debt is at the highest levels since September 2008: Very true, but as #6
says there are fewer dollars from investors in the market, so this affects few
individuals at very large levels and doesn't appear to be pandemic for all US
households.
8) Investor sentiment remains at extremely high levels: What investors? Money

has been leaving the equity markets since 2008, as suggested in #6, and we've
seen net outflows in equity markets even during the "recovery". So investors are
saying they're excited about stocks while pulling money out of equity markets
and putting it into bond markets, gold, and other investments? I think I'd rather
follow the truth in people's actions as opposed to following their words. I don't
think investor sentiment is REALLY that high if they are investing in other assets
as opposed to stocks.Lastly, I'm really disappointed that this article didn't
mention the ONE greatest threat that I believe is currently inflicting the American
economy and that is the continuous struggle in housing. Don't get me wrong, I'm
currently investing in REITs, but I think housing is far from the bottom and that in
2011 and 2012 we'll see further atrophy in home prices.New single home sales
have fallen back to 283,000 in October 2010, which is a little lower than the 300k
-320k that we were seeing at the beginning of 2000 and a far cry from the near
600,000 we saw at the peak; however, even though these numbers have
normalized, other factors have not.In 2000, 300k homes for sale represented
about 4 months of supply which is normal. The 283,000 number we've seen, while
lower than the 300k in 2000, represents 8+ months of inventory currently. On top
of this, we have waves of foreclosures that are hitting the market further
exacerbating the problem. I think it's safe to say that we probably have over a
year's worth of housing inventory that will be available for sale over the next year
AND interest rates are rising, making it more expensive to own. The only thing
that can give a little to rebalance the equation is home prices.On top of all of this,
in 2011 and 2012 we'll start to see another wave of ARMs resetting. I do not
believe that we'll see a pandemic of foreclosures because people are unable to
afford the switch that we saw in 2008 and 2009, but I do think we'll see a lot of
foreclosures because people won't want to pay that much for houses that are
worth 25%-30% less than what they were when the agreed to the ARM. In fact, the
scenario of people living free in their homes for a year or more has become a
relatively common occurrence even now as they realize that foreclosures are so
backed up that they can live rent free for some time. I imagine that raising interest
rates will only make more people decided that it's better to default now on the
higher rates and rent or purchase a less expensive home....In the short term, this
could cause massive damage to the economy. Over the long term, it allows for
greater deleveraging and a normalization of the housing industry as opposed to
dragging this recovery out over a much longer period of time.Another downturn
in the housing industry, which I think is likely even as the rest of the economy
recovers, will likely be what makes 2011 and 2012 bleak.The only solutions for
making this situation better, faster, include: creating jobs, speeding up the
foreclosures process to get houses off the market and to prevent voluntary
default, coming up with effective ways to allow homeowners to modify/refinance,
and letting this monster run its course. Between the years 2000 and 2006, we
more than doubled the amount of money in mortgages outstanding in the US.
That is incredible when you consider that mortgages are 15-30 year maturities yet
we doubled the amount in 6 YEARS! It's going to take the better part of a decade
for us to recover from this and housing will be in trouble for awhile…’
Home foreclosures jump in 3rd quarter: regulators Reuters | U.S. home

foreclosures jumped in the third quarter and banks’ efforts to keep
borrowers in their homes dropped as the housing market continues to
struggle.
More Dollar Declines in 2011? CNBC | The US dollar is likely to fall further during
2011, but the stock market could perform well, according to Peter Cardillo,
chief market economist at Avalon Partners.
Ratigan Calls Out Obama On Pushing The Big Tarp Lie SaveOurSovereignty3 |
The Big Lie is that the banksters paid back the TARP money.
17 National Debt Statistics Which Prove That We Have Sold Our Children And
Grandchildren Into Perpetual Debt Slavery What we have done to future
generations over the past 30 years is absolutely criminal. 30 years ago the
U.S. national debt was a bit under one trillion dollars, and at that time it was
considered a huge national crisis.
Have Bankers Overthrown the U.S, Government? (Yes) John Truman Wolfe | The
enemy has taken control of our very financial lives without a single shot
being fired.
Metals from copper to silver hit record highs Copper has hit yet another record
high in a strong morning for metals trading, as commodities shook off
China’s efforts to halt inflation by raising interest rates on Christmas Day.
Bernanke Only Adds Fuel To The Fire With Quantitative Easing Mr. Bernanke,
Chairman of the Federal Reserve, a private corporation, would have us
believe that, quantitative easing is the only way to save the US economy and
to reverse the unemployment problem.
2010 worst year for bank failures since 1992 More banks failed in the United
States this year than in any year since 1992, during the savings-and-loan
crisis, according to the Federal Deposit Insurance Corp.
National / World
Naked Wheelchair Protester Targeted by TSA Over Buttocks Steve Watson |

Agents single out woman who stood up to airport tyranny, ban her from
flying.
Feds, Police Enforce Mandatory Blood Tests At Florida Checkpoints Steve

Watson & Paul Watson | “No refusal” DUI stops soon to expand nationwide.
Mandatory DUI Checkpoint Blood Tests Coming to Florida Kurt Nimmo | A

concerted effort to raise the bar as government connives to trash the
Constitution and the Bill of Rights.
Baby Boomers Start To Turn 65: 16 Statistics About The Coming Retirement
Crisis That Will Drop Your Jaw The American Dream | The moment when the first
Baby Boomers reach retirement age has arrived. ‘ … The following are 16
statistics about the coming retirement crisis that will drop your jaw…..
#1 Beginning January 1st, 2011 every single day more than 10,000 Baby Boomers
will reach the age of 65. That is going to keep happening every single day for the
next 19 years.
#2 According to one recent survey, 36 percent of Americans say that they don’t
contribute anything at all to retirement savings.
#3 Most Baby Boomers do not have a traditional pension plan because they have
been going out of style over the past 30 years. Just consider the following quote
from Time Magazine: The traditional pension plan is disappearing. In 1980, some
39 percent of private-sector workers had a pension that guaranteed a steady
payout during retirement. Today that number stands closer to 15 percent,
according to the Employee Benefit Research Institute in Washington, D.C.
#4 Over 30 percent of U.S. investors currently in their sixties have more than 80
percent of their 401k invested in equities. So what happens if the stock market
crashes again?
#5 35% of Americans already over the age of 65 rely almost entirely on Social
Security payments alone.
#6 According to another recent survey, 24% of U.S. workers admit that they have
postponed their planned retirement age at least once during the past year.
#7 Approximately 3 out of 4 Americans start claiming Social Security benefits the

moment they are eligible at age 62. Most are doing this out of necessity.
However, by claiming Social Security early they get locked in at a much lower
amount than if they would have waited.
#8 Pension consultant Girard Miller recently told California’s Little Hoover

Commission that state and local government bodies in the state of
California have $325 billion in combined unfunded pension liabilities. When you
break that down, it comes to $22,000 for every single working adult in California.
#9 According to a recent report from Stanford University, California’s three

biggest pension funds are as much as $500 billion short of meeting future retiree
benefit obligations.
#10 It has been reported that the $33.7 billion Illinois Teachers Retirement System
is 61% underfunded and is on the verge of complete collapse.
#11 Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of

Northwestern’s Kellogg School of Management recently calculated the combined
pension liability for all 50 U.S. states. What they found was that the 50 states are
collectively facing $5.17 trillion in pension obligations, but they only have $1.94
trillion set aside in state pension funds. That is a difference of 3.2 trillion dollars.
So where in the world is all of that extra money going to come from? Most of the
states are already completely broke and on the verge of bankruptcy.
#12 According to the Congressional Budget Office, the Social Security system
will pay out more in benefits than it receives in payroll taxes in 2010. That was
not supposed to happen until at least 2016. Sadly, in the years ahead these
“Social Security deficits” are scheduled to become absolutely horrific as hordes
of Baby Boomers start to retire.
#13 In 1950, each retiree’s Social Security benefit was paid for by 16
U.S. workers. In 2010, each retiree’s Social Security benefit is paid for by
approximately 3.3 U.S. workers. By 2025, it is projected that there will be
approximately two U.S. workers for each retiree. How in the world can the system
possibly continue to function properly with numbers like that?
#14 According to a recent U.S. government report, soaring interest costs on

the U.S. national debt plus rapidly escalating spending on entitlement
programs such as Social Security and Medicare will absorb approximately 92
cents of every single dollar of federal revenue by the year 2019. That is before a
single dollar is spent on anything else.
#15 After analyzing Congressional Budget Office data, Boston University

economics professor Laurence J. Kotlikoff concluded that the U.S. government is
facing a “fiscal gap” of $202 trillion dollars. A big chunk of that is made up of
future obligations to Social Security and Medicare recipients.
#16 According to a recent AARP survey of Baby Boomers, 40 percent of them

plan to work “until they drop”.
Companies all over America have been dropping their pension plans in
anticipation of the time when the Baby Boomers would retire. 401k programs
were supposed to be part of the answer, but if the stock market crashes again, it
is absolutely going to devastate the Baby Boomers.
State and local governments are scrambling to find ways to pay out all the
benefits that they have been promising. Many state and local governments will
be forced into some very hard choices by the hordes of Baby Boomers that will
now be retiring.
Of course whenever a big financial crisis comes along these days everyone looks
to the federal government to fix the problem. But the truth is that after fixing
crisis after crisis the federal government is flat broke …’
Underneath the Happy Talk, Is This As Bad as the Great Depression?

Washington’s Blog | Even though the government’s spending on the
economic crisis dwarfs the amount spent on the New Deal, our economy is
still stuck in the mud.
America Has Gone Away Anyone who doesn’t believe that the US is an incipient
fascist state needs only to consult the latest assault on civil liberty by Fox
News. Instead of informing citizens, Fox News informs on citizens. Jason
Ditz reports that Fox News “no longer content to simply shill for a growing
police state,” turned in a grandmother to the Department of Homeland
Security for making “anti-American comments.”
Jumping ship for private sector (Washington Post) [ Nothing new here! After all,
given the state of the u.s. government (pervasively corrupt, mired in failure,
nation’s defacto bankupt, totally incompetent, etc.), what possible value
could such experience be other than peddling influence based upon
professional criminal courtesy to, ie., other criminals of course, viz., frauds
on wall street, war profiteers, pay-to-play lobbyists, etc.. It’s truly the
backstory to america’s decline across the board, private sector and public
sector. ] Regulators, prosecutors and financial policymakers look to cash in
on their government experience.
Constitution's new starring role in House (Washington Post) [ Riiiiight!…Whew!

That was a close one…we can all rest easy now…and to think we were thinkin’
they were goin’ in the wrong direction and sinkin’…for those skeptics who hail
this as yet another desperate and redundant gimmick … have no fear, the new
congress is here. ] ‘…They will read the Constitution aloud…’
Iraqi police commander killed in triple suicide attack (Washington Post) [ Well, at
least al-Maliki understands the ‘physics of the situation’… you know, that
‘cause and effect thing’ … Iraq Wants the U.S. Out Infowars.com Prime
Minister Nouri al-Maliki ruled out the presence of any U.S. troops in Iraq after
the end of 2011, saying his new government and the country’s security
forces were capable of confronting any remaining threats to Iraq’s security,
sovereignty and unity. ]
SUVs lead U.S. auto sales growth (Washington Post) [ Sounds like a plan …
ahead … for when $5 plus gas turns these eventual valued antiques into
‘luxury mobiles’ … for that Sunday spin (expensive at that) down Main
Street much like the early 20th century motorcars themselves. Oil Prices
Are About To Wake Up To Peak-Production Realities? Infowars.com ] If U.S.
consumers are in the midst of a green revolution, the news hasn't reached
car buyers.
Bank failures hit record in 2010 (Washington Post) [ As night follows the day:
Roubini: ‘Housing Prices Can Only Move Down’ According to economist Nouriel
Roubini, the housing market is in a double dip. And negative Case-Shiller Home
Price numbers out today only confirm that unpleasant truth.
Underneath the Happy Talk, Is This As Bad as the Great Depression? To find out,
we’ll look at a couple comparisons to get an idea of what is going on in the
rest of the economy. And then we’ll compare the government’s efforts in the
1930s to today.
Video of Bernanke and Geithner Trying to Get the Economy Unstuck Bernanke
and Geithner are driving the tow truck. The bulldozer which the tow truck is
so persistently trying to yank free is Wall Street, and the white SUV being
repeatedly rammed without any concern whatsoever is the little guy on Main
Street. ] More banks failed in the U.S. this year than in any year since 1992,
and there are more on the horizon.
Housing market forecast (Washington Post) Ezra Klein | ‘Expert says "house
prices probably have another 20% to fall." And that may be a "conservative
estimate.’
Disgraced ex-Israeli president convicted of rape (AP)
Israel's ex-president Katsav guilty of rape (Reuters)

The 10 Most Important Tax Tips Of 2010 Posted by Investopedia It’s the end of the
year, and while holiday baking may be top of mind, that niggling little task of getting the
year-end tax tasks done is still there, bothering you over the scent of the fruitcake in the
oven. The following tips will give you some specifics so you can take care of taxes, and
then get back to your fun holiday activities.
IN PICTURES: Top 10 Solutions For A Big Tax Bill
1. Defer Income Until 2011

With lower payroll taxes starting in January 2011, if you have income you can
defer and report in the new year’s taxes, do so. Hold your last batch of invoices
and send them out in early 2011; save that bit of money by paying the 2011 tax
rate.
2. Contribute To A Retirement Plan
Whether you choose to convert your traditional IRA to a Roth IRA or not, make
sure you contribute the maximum amount you can before the year’s over. It’s one
of the easiest ways to save money on your taxes.
3. Use Your Flexible Spending Account
If you have a flexible spending account (also known as a health savings account
or medical/health care spending account), use up what’s left in your account for
2010. And if you haven’t opened one yet, check into what your company offers.
Be sure to specify the amount of your 2011 wages that you want to have placed
in your flexible spending account. (Learn more in Benefits Of A Dependent Care
Flexible Spending Account.)
4. Invest In Your Business
If you need to make investments in your business – new equipment, upgraded
machinery or real estate improvements – then invest before the year’s end for
the write-off on your 2010 taxes.
5. Save Energy
Energy-efficient improvements in your residence before year’s end can get you a
tax credit of up to $1,500. Though installing a new metal or asphalt roof may be
out of the question between now and January 1, you can purchase energy-
efficient windows, doors and appliances. And if you’re just itching for another
home improvement project to tackle over the holidays, install a solar water heater
or solar panels for another credit of up to 30% of the cost.
IN PICTURES: 6 Tax Credits That Anyone Can Claim
1. Itemize, Itemize, Itemize

Keep track of your business expenses and put them into your itemized
deductions; don’t forget home office purchases, supplies, fees for memberships
in professional organizations, technological costs (web hosting, website design,
internet costs). Be sure all your itemized costs are for the business and you have
the receipts.
2. Donate
Make charitable donations before the year’s end for the write-off, but don’t make
the mistake of sending out checks dated on or before December 31 and thinking
they will qualify. The IRS specifies that checks mailed out must be postmarked
by the last day of the year. You can also make donations through major credit
cards, as long as the charges are authorized by the end of the year. (Generosity
may be its own reward, but some charitable giving also provides personal tax
benefits. Learn more in Deducting Your Donations.)
3. Contribute To A College Savings Plan
Save for your kids and save on your taxes - up to $13,000 in 2010 for a college
savings plan. The magic $13,000 limit keeps you under the federal gift tax.
4. Pay Your Next Health Insurance Premium
If you’re self-employed, you can deduct 100% of the cost of health insurance
premiums (up to the total of the net earnings of your business). That can be a
rather hefty deduction, since it includes costs for your spouse and dependents as
well. You can pay ahead – cover your first premium of the new year in 2010, and
you can claim it on your 2010 taxes. (Find out where you can take a tax
deduction on the contributions you make; see Traditional IRA Deductibility Limits
For 2010.)
5. Pay Into A Specialized Account
Some employers offer the opportunity to contribute into specialized accounts,
including dependent and commuter accounts. A dependent account covers the
cost of child care, and a commuter account covers the cost of commuting
expenses. Both have limits, but both can help you save on your taxes while
paying for stuff you have to pay for anyway.
The Bottom Line

With taxes, you don’t know until you ask. You may be able to save much more than you
think you can just by making a few simple changes, or by paying for expenses in
December instead of January, February or March. It’s a little bit of forethought that can
make the tax bill much more bearable.
For the latest financial news, see Water Cooler Finance: FBI Insider-Trading Bust.’
Fed Can’t Prop Up Stock Market Forever USA Watchdog | From the very beginning
of QE2, it was no secret the Federal Reserve wanted the stock market to rise.
BofA/Countrywide Lied About Virtually Everything When Selling Mortgages Zero

Hedge | A few days ago, news broke that MBIA was allowed to use statistical
sampling in its ongoing Bank of America fraud lawsuit.
J.P Morgan, the ultimate *ankers of 2010 Economic Assassin | The contracts that
Bear Stearns once held on silver have now been taken over by J.P Morgan,
allowing them complete control on the paper price on silver.
Underneath the Happy Talk, Is This As Bad as the Great Depression? To find out,
we’ll look at a couple comparisons to get an idea of what is going on in the
rest of the economy. And then we’ll compare the government’s efforts in the
1930s to today.
Video of Bernanke and Geithner Trying to Get the Economy Unstuck Bernanke
and Geithner are driving the tow truck. The bulldozer which the tow truck is
so persistently trying to yank free is Wall Street, and the white SUV being
repeatedly rammed without any concern whatsoever is the little guy on Main
Street.
Roubini: ‘Housing Prices Can Only Move Down’ According to economist Nouriel
Roubini, the housing market is in a double dip. And negative Case-Shiller
Home Price numbers out today only confirm that unpleasant truth.
National / World
FBI Delivers Anti-terror Flyers to Farm Supply Stores Kurt Nimmo | Reader was
recently visited by the FBI’s Joint Terrorism Task Force.
Forcing Everyone to Live with Their Heads in ‘The Cloud’ Jason Douglass | A new
revolution in computing is just another means of control.
Poll Reveals Americans Opposed to Government Takeover of Internet Kurt Nimmo

| The internet cannot be allowed to be a source of alternative information
that challenges the corporate media propaganda system.
An Open Letter to Those Who Would Murder Julian Assange Peter Kemp | In a
society where truth becomes treason, we are in big trouble.
Let’s Reclaim History As We Go Into 2011, And The Unknown Future Saman
Mohammadi | Waking up to this new history is paralyzing at first, but it is
better to be awake then to continue to live in a vegetative state, believing a
false reality.
Hollywood and the war machine [ I disagree. Yes, there’s plenty of propaganda to
go around in Hollywood, as everywhere else; but, on balance, I believe more
modern film particularly tends to paint war in the more realistically negative
light. This is especially so inasmuch as there hasn’t been what anyone could
call a so-called ‘good war’ to justify america’s war criminal behavior for quite
some time. Of course, there’s no denying the jewish elements so
stereotypical of Hollywood which does lend credence to the criticism; but
such ‘pro-zionist revelatory filmmaking’ as that regurgitated by, ie.,
spielberg, etc., has become so predictably boring and devoid of reality that
such films now pale in comparison and popularity to the anti-war films
including offhand, ie., ‘Platoon’, ‘Apocalypse Now’, and more recently, ‘Hurt
Locker’. It is true that in the past the military strong-armed even the likes of
Frank Capra to their propaganda campaigns; and, it is also true that today’s
attacks on first amendment protected speech are unprecedented in scope as
a consequence of the perceived threat of truth (of america’s pervasive
corruption, war crimes, fraud, etc.) leaking out all over … the internet
(mainstream media is concededly totally controlled – I don’t include, ie., The
Washington Post in the category of controlled media, but other papers, tv,
etc., certainly should be). Yet, I think the criticism better directed at the
source; viz., the criminal and corrupt elements of the american government
et als, which is almost all. ( I admit to being somewhat biased and ‘I
previously wrote on my site, ‘I happen to like and respect film as a rich
medium which presents large amounts of audio, visual, and thematic
information which can be processed in relatively small amounts of time,
etc..’). ] Al Jazeera | War is hell, but for Hollywood it has been a Godsend,
providing the perfect dramatic setting against which courageous heroes win
the hearts and minds of the movie going public. Russia rebuffs Western
criticism of oil tycoon's trial (Washington Post) [ As right they should! After
all, is anyone foolish enough to believe that america’s illegal system is
anything but a farce and a means to legitimize blatantly illegal activity
domestically and internationally, while arbitrarily enforcing as to some and
retaliating against others … does anybody really believe Assange would get
a fair trial in america, or Orwellian britain, etc.. Pervasively corrupt
america’s illegal system is a travesty and their propaganda dogs don’t hunt
no more!
Army edits its history of deadly battle of Wanat (Washington Post) [ Come on!
Does anyone really think they ever get a true story from the u.s. gov’t et als about
anything at all? ] Draft put majority of blame on top commanders, but final
version's focuses on lower-level leaders sparks anger among families of those
killed.
A subtler tack to fight Afghan corruption? (Washington Post) [ How about a not
so subtler tack to fight corruption starting right here in the u.s. of a. where
corruption and crime are pervasive and in fact, at the root of the Afghanistan
problems, from american reinvigorated heroin trade to bribery attendant thereto
to killing civilians, etc.. Defacto Bankrupt, Meaningfully Lawless, War Criminal
Nation america, the leader of nations … in crime:
Though having but 5% of the world’s population, america can boast 76% of the
world’s serial killers, followed by Europe with England/UK then Germany leading
the way for the eu [excerpt, 6 minute video, Serial Killers: Real Life Hannibal
Lechters http://www.albertpeia.com/realifeamericaserialkillers.mpg (as is
consistent with crime generally, see infra)]. Defacto bankrupt, fraudulent america
also spends more on offensive (defensive a misnomer / propaganda) military
spending than all the nations of the world combined, and by a large margin at
that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and
the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are
included in this evolved american trait of inherent criminality in the most
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]
WikiLeaks founder could be charged by Feds (Washington Post) [ He deserves a

medal! I think they should start prosecuting american war criminals, frauds
on wall street, $12 billion $100 bills flown into and missing in Iraq, RICO
litigation
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyo
fperjury.pdf
Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter, …
etc. … Drudgereport: CLASSIFIED NO MORE: USA RACES TO LIMIT WIKILEAKS
DAMAGE [Publishing the Wikileaks is the right thing to do; after all, one cannot
possibly look to even one rationally correct strategy, domestically, globally,
geopolitically that would justify continued hiding/cover-up of the failed strategies,
their genesis, flawed rationale, etc., which has cost this nation and the world
dearly] ...
WIKILEAKS: We've been hit with 'mass distributed denial of service attack'...
MOST EMBARRASSING, DAMAGING DISCLOSURE IN DECADES...
SENATORS: PROSECUTE THE LEAKERS!
NYT EXPLAINS: THE DECISION TO PUBLISH … [The NYT clearly did the right
thing to publish; after all, one cannot possibly look to even one rationally correct
strategy, domestically, globally, geopolitically that would justify continued
hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which
has cost this nation and the world dearly]...
SKorea says sound of artillery heard on island...
US, SKorea start major naval drills...
China issues warning...
TO THE BRINK
DHS SEIZES DOMAIN NAMES...
EU Debt Crisis Escalates...
6 American soldiers killed in Afghanistan...
Next Debt Crisis 'May Start in Washington'...
WIKILEAKS TURNS ON OBAMA! … [ Like who hasn’t, and for good reason! Publishing the
Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct
strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the
failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world
dearly] ]
] Authorities are investigating whether Julian Assange violated criminal laws,
including possible charges under the Espionage Act, sources say. Afghanistan:
Gates: Progress has 'exceeded my expectations' (Post, December 8, 2010; 5:53
PM)
U.S. hurting peace chances by giving up on israeli settlement freeze, analysts say
(Post, December 8, 2010; 11:00 PM)
In South Korea, Joint Chiefs chairman scolds China for its 'tacit approval' of
North's aggression (Post, December 8, 2010; 11:01 PM)
Iran talks end with little sign of progress (Post, December 8, 2010; 1:04 AM)
Rice, on 'The View,' defends Obama on WikiLeaks (Post, December 8, 2010; 1:00
AM) (Washington Post) [ The problems in all these regions are inextricably tied to
the nation with insurmountable problems of its own and own making. That nation
quite obviously is pervasively corrupt, meaningfully lawless, defacto bankrupt
america (along with such comparable enablers / allies as zionist israel, nato, etc..
How can anyone believe anything they say, least of all gates who hails from
C(ottage)I(ndustries of)A(merica) based on lies, chaos, and conflict.]
Americans Oppose Government Efforts To Take Over Internet According to a

recent Rasmussen’s poll, most Americans understand the FCC’s internet
regulations will be used by the government to push a political agenda.
Congress to Demand Answers From TSA in Airport Security Flaws Exactly one
month after Chris Liu posted videos to YouTube showing what he calls
“critical security flaws,” the new chairman of a House subcommittee said he
will call Transporation Security Administration (TSA) leaders to Capitol Hill
for an explanation.
Woman Who Protested TSA Pat-Downs At OKC Airport Banned From Flying The
woman who made national headlines for her near-naked protest at the
airport in Oklahoma City is back and once again banned from flying.
2011: The Seeds Of Revolution Will Be Sown After the tumultuous years of the
Great Recession, a battered people may wish that 2011 will bring a return to
kinder, gentler times. But that is not what we are predicting.
Food Safety Bill Invokes Codex Harmonization and Grants FDA Authority to
Police Food Safety of Foreign Nations Of all the talk about S.510, virtually no
one has actually read the language in the bill — especially not those
lawmakers who voted for it. The more you read from this bill, the more
surreal it all becomes. For example, did you know there’s a global FDA
power grab agenda hidden in the Food Safety Modernization Act?
Obscene, Threatening Comments Posted at Anti-TSA Website Traced to

Homeland Security Servers According to George Donnelly, owner of
WeWontFly.com, government workers appear to be posting hateful
messages on his anti-TSA blog under the guise of anonymity.
WikiLeaks set to turn on Israel Wikileaks founder Julian Assange has promised
that future documents to be published from the trove of leaked American
diplomatic cables, will shed light on operations of the Mossad and Israel’s
Second Lebanon War in 2006.
Iraq Wants the U.S. Out Prime Minister Nouri al-Maliki ruled out the presence of
any U.S. troops in Iraq after the end of 2011, saying his new government and
the country’s security forces were capable of confronting any remaining
threats to Iraq’s security, sovereignty and unity.
Nigeria’s deal to drop Cheney charges called illegal Lawyers and media pundits
in Nigeria are accusing the government of acting illegally by agreeing to
settle criminal bribery charges against Dick Cheney out of court.
Get Ready For A Year Of Volatility: More Flash Crashes, Fed Hating, Civil Unrest
And Bad Weather Social unrest will become visible in America in 2011. There
will be demonstrations in many major cities. Some will turn violent.
Economics will be at the heart of the anger. The frustration that was evident
in France in recent years will come to the US.
Exploding Bullets – Not Hairspray – Caused Bomb Scare at Miami Airport: TSA A
man has been arrested after FBI and TSA officials said his luggage
contained volatile gun parts, which caused his bag to explode Tuesday just
before it was about to be loaded on a plane.
Looking back at 2010 (Washington Post) [ I think Mr. Sloan should run for office
or be appointed ‘Head of the Fed’ or u.s. attorney general, though his lack of
‘liar’ credentials might exclude the latter! ] I have performed a painful
annual ritual ever since I began writing a column about 20 years ago: re-
reading my work for the year and telling you about the things I got wrong
and the things I wish I'd done differently.
Russia rebuffs Western criticism of oil tycoon's trial (Washington Post) [ As right
they should! After all, is anyone foolish enough to believe that america’s
illegal system is anything but a farce and a means to legitimize blatantly
illegal activity domestically and internationally, while arbitrarily enforcing as
to some and retaliating against others … does anybody really believe
Assange would get a fair trial in america, or Orwellian britain, etc..
Pervasively corrupt america’s illegal system is a travesty and their
propaganda dogs don’t hunt no more!
Army edits its history of deadly battle of Wanat (Washington Post) [ Come on!
Does anyone really think they ever get a true story from the u.s. gov’t et als about
anything at all? ] Draft put majority of blame on top commanders, but final
version's focuses on lower-level leaders sparks anger among families of those
killed.
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]

litigation
fperjury.pdf
dearly] ...
TO THE BRINK
WIKILEAKS TURNS ON OBAMA! … [ Like who hasn’t, and for good reason!
Publishing the Wikileaks is the right thing to do; after all, one cannot possibly
look to even one rationally correct strategy, domestically, globally, geopolitically
that would justify continued hiding/cover-up of the failed strategies, their
genesis, flawed rationale, etc., which has cost this nation and the world dearly] ]
including possible charges under the Espionage Act, sources say. Afghanistan:
Gates: Progress has 'exceeded my expectations' (Post, December 8, 2010; 5:53
PM)
U.S. hurting peace chances by giving up on israeli settlement freeze, analysts say
(Post, December 8, 2010; 11:00 PM)
Rice, on 'The View,' defends Obama on WikiLeaks (Post, December 8, 2010; 1:00
AM) (Washington Post) [ The problems in all these regions are inextricably tied to
the nation with insurmountable problems of its own and own making. That nation
quite obviously is pervasively corrupt, meaningfully lawless, defacto bankrupt
america (along with such comparable enablers / allies as zionist israel, nato, etc..
How can anyone believe anything they say, least of all gates who hails from
U.S. home prices drop 1.3% (Washington Post) [ Oooooh! Ouch … but no say
the frauds on wall street … that’s a good thing … you know … that
‘affordability thing’ … yes, they say … sounds like a plan! ] Six regions hit
new lows, and they're not expected to rebound anytime
Budget proposal to be delayed (Washington Post) [ At this point, who’s still

counting … and does it count? I mean, near $14 trillion and counting, the
question is ‘can they count’ … then there’s the real debt … Timid Tuesday:
Is it Safe? Davis ‘… This is how we pay off our current debts and I think
owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire
global GDP) in the form of unfunded liabilities. The funniest thing about this
(and you have to laugh) is to see Conservative pundits get on TV and talk
about how we need to cut $100Bn worth of discretionary spending to "fix"
this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for
the top 1% each year). There is no fixing this and even a Republican said
you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS
TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ … Howard
Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"
declared here in July, the most recent in a string of dire predictions from
Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked
Davidowitz if he had any regrets, or was ready to throw in the towel given
recent signs of economic revival. Are you kidding me? "Here are the
numbers...we're broke," Davidowitz declares, noting the U.S. government
goes $5 billion deeper into debt every day and is facing $1 trillion-plus
annual deficits for the next decade. "In other words, we're bankrupt."As with
the economy, Davidowitz is unwaveringly consistent in his views on
President Obama, calling him "deranged, dysfunctional and
@atask or email him at altask@yahoo.com’ ] President Obama expects to
release his fiscal 2012 budget a week later than the timetable set out under
the Budget Act of 1974.
2010 worst year for bank failures since 1992 (Washington Post) [ And you can
safely say the worst is not over and there’s more to come …’ Suttmeier ‘5
Economic Themes for 2011 (6 more are on their way): … 3.The banking
system is supposed to de-lever risk, but it has not. When I look at the
Notional Amount of Derivative Contracts I cringe at the fact that since the
that’s an increase of 43.5% to $236.4 trillion at the end of the third quarter in
an environment where banks should be de-leveraging not adding to this risk
where financial time bombs are ticking…’ ‘Deadbeat’ TARP banks on rise
(Washington Post) [ Sounds like a plan! Viz., when worthless paper /
securities / toxic assets are being carried in the trillions now marked to
anything (as per legislated mark to anything FASB rule change), the reality is
that there’s no real surplus from which to pay dividends, etc.. ] Obama
administration steps up monitoring of banks that miss required payments. ]
The nation is closing out the year with 157 bank failures, up from 140 in
2009.
5 Economic Themes for 2011 Suttmeier ‘5 themes for 2011 (6 more are on their
way):
1. Home prices will resume a decline that began in mid-2006. We had the home
buyer tax credits expire in mid-2010, and government sponsored mortgage
modifications provided limited help. In 2011 we face continued foreclosure issues
including questionable documentation, and banks have a record high Other Real
Estate Owned (OREO). OREO is up to $53.2 billion at the end of the third
quarter, up 338.2% since the end of 2007. Depressed home sales are being sold
at a 30% to 35% discount, which reduces property appraisals at the county level.
Home builders will have to compete with these lower prices and we need a
mortgage modification program for all Americans, not just those at risk of losing
their homes. QE2 is not working and US Treasury yields are higher causing
mortgage rates to rise. “The Great Credit Crunch” began with housing, and
that foundation needs repair before Main Street can recover with
sustainable job creation.
2. Community banks still have $1.43 trillion in commercial real estate loans
that require resolution. The FDIC’s List of Problem Banks rose to 860 in the
third quarter of 2010, which is 11.1% of all insured institutions. My analysis
shows 2,485 or 32% of all banks overexposed to commercial real estate loans,
and 3,938 or 50.7% of all banks with real estate loan pipelines that are 80% to
100% funded. This stress needs to be addressed before jobs can be created on
Main Street USA as housing and construction drive local economies. “The Great
Credit Crunch” will not end without a program to remove toxic real estate
loans from the books of community banks around the country.
3. The banking system is supposed to de-lever risk, but it has not. When I look
at the Notional Amount of Derivative Contracts I cringe at the fact that since the
that’s an increase of 43.5% to $236.4 trillion at the end of the third quarter in an
environment where banks should be de-leveraging not adding to this risk where
financial time bombs are ticking.
4. Fannie Mae and Freddie Mac will continue to drain taxpayer money as the
Treasury provides unlimited lines of credit through 2012. The cost currently is
about $150 billion, by far the largest of any government bailouts. We need to
unwind the activities of these GSEs, and beef up Ginnie Mae as the go to
government agency that backs new mortgage issuance.
5. Because of the housing market depression and stress in the banking

system the unemployment rate will stay above 9% for all of 2011.
overbought technically on both daily and weekly charts. The snow storm causes
stocks to drift lower and higher.
• The major equity averages are below this week’s risky levels as the year draws
to a close at: 11,629 Dow, 1269.4 SPX, 2682 NASDAQ, 5215 Dow Transports
and 808.57 Russell 2000.
The Yield on the 10-Year Note (3.345) – Tested this week’s value level at 3.494 with
today’s risky level at 3.306.
Comex Gold ($1384.2) – The 50-day at $1372.1 held at the low on Monday with this
week’s risky level at $1401.2.
Nymex Crude Oil ($90.79) – Reached a new high for the year at $91.88, shy of this
week’s risky level at $93.28. Support is the 21-day simple moving average at $88.24.
The Euro (1.3163) – My weekly value level is 1.2906 with 200-day simple moving
average at 1.3087 and quarterly pivot at 1.3318, which goes away at the end of the
year.
The Dow Industrial Average (11,555) – Remains extremely overbought on both daily
and weekly charts. The 21-day simple moving average is 11,384 with a daily pivot at
11,569 and this week’s risky level at 11,629.
positions within the next 72 hours.

begin by December 31st Why Stocks Could Collapse...Beginning as Soon as
December 31, 2010! The Fed has propped up the equity markets for months ... but
that could soon come to a disastrous end! Dennis Slothower is one of the world’s
leading technical analysts. He’s one of the few advisors whose readers
completely avoided ALL losses during the disaster that was 2008. And now he’s
issuing another dire warning. His technical indicators suggest that the market
manipulation we’ve seen over the last several months is about to come to an
end…and that means thousands of investors are about to get clobbered. This
correction could begin as soon as December 31st– so it’s important that you take
action now to prepare yourself. Click on the link below for immediate access to
Dennis Slothower’s latest report, which will explain – in plain English – just how
Dennis saw the collapse of 2008 coming…and how he’ll help you avoid disaster
in the weeks ahead.
http://www.stealthstocksonline.com/reports/FreeReport4StealthStocks.pdf
Don't Be Fooled By Investment Disinformation [ While this is axiomatically true, it
is also true that one must go beneath the numbers to find the reality
underlying particularly manipulated moves which, as one might expect from
a forbes contributor with an indirect bobblehead nod to the u.s. market
based upon, ie., ignoring such things as the debased dollar, insurmountable
debt, fraud, etc.. The u.s. numbers are a joke to keep ‘fools rushin’ in’, to
keep them sucked in, etc.. ]
What's Coming in 2011? More Gloom, But Not Necessarily Doom Krasting ‘Oh
boy, is 2011 going to be an exciting year! Some things that I think might happen:
• Volatility is going up across the board. If you have the stomach for the
swings that are coming across all markets, there is a ton of money to be
made; balls and timing are all that are necessary. The markets will create
dozens of opportunities to make and lose.
• There will be 50 days with a swing in the S&P greater than 1 percent. There
will be 10 days where gold swings $50. There will be two days with a drop
greater than 100 bucks. Most of the big moves will be down moves. Bonds
will not be spared the volatility.
• Gold will be higher a year from now, but off its peak. At some time in the
fall, gold will be near $1,800 and The New York Times will do a front-page
story that gold is on its way to $2,000. That will be the high point of the
year.
• Copper will continue to rise. This metal will benefit as the poor man’s gold.
Why buy an ounce of something for $1,600 when you can have a whole
pound of something else for only $5? The logic is compelling only because
there is no logic. Increasingly, it will become understood that money does
not hold value. Copper will do a better job of storing value then a Treasury
Bond.
• The U.S. bond market is in for a heck of a year. The 30-year will trade at
both 3% and 5 percent. Higher rates will come early in the year, then the
deflation trade will come back into vogue.
• Spain will be the next sovereign debtor that falls prey to the market. This
will happen before the end of the 1st Q. The package to bail them out will
exceed $500b, which will exhaust EU resources. There will be very high
expectations that contagion will then move to Italy; that will not happen in
2011 (but might in 2012?). The European Central Bank (ECB) will step up to
the table (finally) and support the market for Italy. Sometime between
March and June, Italian bonds will be a great buy.
• The IMF will contribute $125b to the Spanish bailout. The U.S. portion of
this will be $25b. Republican Senators and Congressmen go nuts. The
American people will side with them. "How can we help Spain but not
California?" will be the mantra. In the end, the IMF commitment will stand.
But that will be the last time the U.S. contributes to a sovereign bailout.
This will prove to be very destabilizing at some point after 2011.
• The ECB will be forced to issue bonds that are joint and several debt of the
EU members. This development will stabilize the EU temporarily, but it will
be hated in Germany. The amount of the new issuance of these bonds will
be small. The program will be terminated in 2012.
• The dollar versus the euro will be all over the lot. The low for EURUSD will
be ~1.17. The really big surprise is that toward the end of the year, the euro
will be pushing 1.50.
• The franc will be like copper. It will attract investors as there is no good
alternative. Before June EURCHF will trade below 90.
• The market will finally wake up to the fact that the yen is not a good store
of wealth. The continuing argument will be, “Yeah, the yen stinks, but
everything else is worse so it should be okay." Wrong. The yen is a short.
The best currency trade of the year will be long sterling/short yen. There
will be better levels to put this trade on than exist today; be patient.
• The U.S. will have a full year deficit of $1.4 trillion. This depressing reality
will hang on the U.S. economy/markets. Congress will talk about the
problem endlessly, but little will be accomplished. By the end of the year,
the problem will be so acute that belt-tightening is put in place for 2013-
15 ... but it will be too late by then.
• QE2 will be the last QE we see. The program will end (on schedule) on June
30. Perversely, long-term interest rates will rise as long as QE continues.
When the program is finished, rates will begin a rapid decline. This will not
go unnoticed by academia. The result will be that QE will be a disgraced
policy that will not be used again for at least five years.
• The high for the S&P will occur before June. The S&P will fall short of
1,500. The low will be 1,100.
• Oil will rise to $130 in the next six months. It will be above $100 at the end
of the year.
• China’s inflation rate will continue to rise. Food will be the primary driver.
The central government will respond with monetary tightening and an
acceleration of the yuan appreciation. It will not work. Inflation will push 7
percent. The domestic economy will continue to grow, but at a much
smaller pace. 5% GDP growth will be only 5% for the year. The trade
surplus will fall by a third.
• Brazil will continue to shine as a resource-rich country that runs a trade
surplus and has low budget deficits. The surprise of the year will be
Argentina. Food will be the reason. Argentina’s fortunes will improve with
rising wheat and soy prices.
• The U.S. will wind down its presence in Iraq. With each step we take out the
door, domestic violence will rise. Iran will assume a larger role in the south,
especially in Basra. This will not go over well with the U.S. Much of the year
will be spent debating what should be done. U.S. warships will be off the
Iranian coast waiting for a phone call, but no shots will be fired. Russia and
Germany will not go along with strong sanctions against Iran. The problem
will fester toward a resolution in 2012.
• Kim Jong-il will die. His son, Kim Jong-un, will take over. The heir is a nut;
there will be more military exercises that result in shells landing on South
Korean soil. China will make public statements that it is trying to bring
order; behind the scenes, it will be applauding the chaos.
• Obama’s popularity will continue to fall. The legislative “successes” at the
end of 2010 will convert to a series of failures. There will be no new
stimulus. Portions of the health care legislation will be dialed back. The
mandatory participation feature will be found unconstitutional. Without this
feature the legislation makes no economic sense, and a great debate will
be initiated as to what to do about it. Nothing will be accomplished.
Reason? There are no “answers” to this problem.
• Obama will propose a means test for Social Security in his State of the
Union address. Retirees who are living the high life (Warren Buffett types)
are going to have their Social Security checks cut to the bone. Any senior
with income of $200k will be impacted. The great socialization of Social
Security will have begun. The popularity of this program will fall off a cliff.
• The 2% reduction on worker contributions to Social Security will be
extended and expanded to 3% for 2012. Rates will not go up in future years.
Social Security will have to be gutted as a result. This will not happen in
2011. But the seeds will be sown for this to occur in 2014.
• 2011 will be a stock pickers' market. Index investing will see a bad year.
Some of the darlings of 2011, like Apple (AAPL) and Netflix (NFLX) will not
fare so well. While I don’t see big declines in these stocks, there are much
better places to put money to work. M&A will be a dominant theme; that is
where the action will be.
• There will be at least three more "flash crashes." The SEC will launch
another investigation into how this could happen. The conclusion will be
that ETFs and how dealers manage them are responsible for the liquidity
problems in individual stock names. There is no solution to this problem.
The market will be on edge looking for the next mini-crash. A stock will fall
prey to this and drop 20% in seconds. Unlike prior examples, there will be
no recovery in the stock. Holders will protest the losses. There will no
restitution. Market confidence will fall as a result.
• Meredith Whitney will be proven wrong in her forecast that 50-100 munis go
Chapter 9 this year. The process to insolvency takes much longer than she
has anticipated. Only 11 munis will make a chapter filing; the rest will be
pushed to the brink in 2012.
• The center of attention will move away from California as the most
bankrupt state. In his State of the State address in January, New York’s
new governor, Andrew Cuomo, will fess up to the fact that for the past year
of so New York has been burying its problems. Substantial cutbacks in
spending will be the result. New York State long -term GOs will trade at 6%
at some point in the year.
• Unemployment will not go down. The average for the year will be above 10
percent. The number of workers who leave the system will rise to 20mm.
These workers will find part-time jobs that pay cash. The new day-workers
will compete will illegals for employment. Social tensions will be the result.
• The Chevy Volt will not sell well. Boeing (BA) will be unable to complete a
single Dreamliner. GM (GM) will trade below $30; Boeing will hit the low
$50s.
• The Singapore dollar will be the strongest currency on the globe in 2011.
• Apple will not come up with a new product this coming year. The rest of the
consumer tech manufacturers will gain some market share. The problems
with dropped calls with the iPhone will be an issue. Apple will respond with
alliances with a number of other providers. AT&T's (T) stock will suffer as a
result.
• Headline inflation will rise a bit, and will push through 2 percent. Those
numbers are meaningless. The price of a pair of jeans will be 50% higher.
Food will cost us 15% more. Gas will be at $4. Bernanke’s QE will be
blamed for the inflation.
• Much to my chagrin and surprise, Tim Geithner will not be replaced as
Treasury Secretary. He will continue to do a very mediocre job for us. He
will be replaced in January of 2012.
• Comcast (CMCSA) will complete its acquisition of NBC/CNBC. One of its
first acts will be to fire Mark Haines. Nothing will help. The ratings will
continue to fall. Becky Quick will move to Fox Business. Diana Olick will
get her own show. She is being groomed to be the next Suzie Orman.
Simon Hobbs will return to London.
• Fannie (FNMA.OB) and Freddie (FMCC.OB) will be merged. Out of the
ashes will come a good bank and a bad bank. The bad bank will hold $2.5
trillion in questionable mortgages. The U.S. will end the year exactly where
it started on this critical issue. The federal government will be responsible
for more than 95% of all new mortgages issued.
• Washington's other mortgage lender, the Federal Housing Authority (FHA),
will run into troubles. Its minimum reserve level set by Congress will be
breached. A bailout will be required. The true cost is buried. The bailout will
be less than $20b. As this is a problem for the Senate, the legislation will be
passed quickly.
• There will not be a "failure of a government" bond auction. But the
coverage for each issuance will grow smaller. China, Russia and Brazil will
reduce their holdings of U.S. reserves. The mysterious "household" sector
will show a huge increase in Treasury holdings. This will be confusing, as it
will not match up with other data. U.K. reserve holdings will show a decline.
These are actually holdings of China that were not included in official
reserves. This will bring uncertainty.
• "Mortgage-gate" will die as a headline story. In fact, it will go the other way
during the year. Increasingly, the problems in real estate will be focused on
the fact that there have been too few foreclosures. The fact that too many
people had been living in a home without paying a dime becomes a cost
that all have to bear. As a result, there will be a much higher level of
foreclosures throughout the year. Contrary to expectation, residential real
estate for average-priced homes will not decline much further. However,
prices for high-end homes will continue to fall. Anything with a price tag of
greater than $1mm will be worth 20% less by the end of the year.
• The narco violence in Mexico will expand to many more cities; tourism will
be hurt as a result. Some of the violence will pass over our border. Anti-
immigration attitudes will expand. Because the low-end economy will
remain in the dumpster, the actual number of illegal aliens will decline by
more than 1mm. This will add to the RE woes in some U.S. areas. It will
stress the countries that they originated from as dollar remittances decline.
• Interest rates will be higher throughout the year for corporate bonds and
munis. This will bring a reversal of the mania to buy dividend stocks. Those
who thought that this investment strategy would work for them will be
disappointed. The number of hucksters pushing the dividend story will
grow in number while the popularity of the strategy declines.
• Jon Hilsenrath will write an article for The Wall Street Journal that is
actually critical of the Fed. The unpopularity of the Fed will rise to such a
level that Jon will have no choice but to follow suit.
• The Fed will come under attack from all sides. It is truly in a no-win
situation. Unemployment will continue to rise while inflation rises and the
dollar declines. One side will shout that the Fed did too little (Krugman),
others that it did too much (the rest of the world). Everyone will hate the
Fed as a result. Bernanke will not lose his job, but his term as boss at the
Fed will be forever tainted.
• ZIRP will be with us for yet another year. Bernanke will not let go of this
loser policy. Inflationary expectations will respond at some point. By the
end of the year, a Fed funds rate increase will be seen as imminent even
though the economy will be soft.
• Social unrest will become visible in America in 2011. There will be
demonstrations in many major cities. Some will turn violent. Economics
will be at the heart of the anger. The frustration that was evident in France
in recent years will come to the U.S.
Have a great year!’
Artificial intelligence to transform web: Russian tycoon (AFP)

J.P Morgan, the ultimate *ankers of 2010 Economic Assassin | The contracts that
Bear Stearns once held on silver have now been taken over by J.P Morgan,
allowing them complete control on the paper price on silver.
GAO Sees Problems in Government’s Financial Management Accounting Today |

Government Accountability Office Can’t Hold Government Accountable.
War Would End the Recession? Steven Horwitz | Krugman says destruction
creates wealth.
9 Signs That The Price Of Oil In 2011 Will Soar Well Beyond 100 Dollars A Barrel
Will we see the price of oil rise significantly in 2011? Unfortunately, that appears
to be precisely where we are headed. Despite stubbornly high
unemployment and a very sluggish economy in the United States, the price
of oil continues to creep upward. Ex-Shell president sees $5 gas in 2012
The former president of Shell Oil, John Hofmeister, says Americans could be
paying $5 for a gallon of gasoline by 2012.
Nearly 100 bailed-out banks may collapse all the same: analysis The $700-billion
bank bailout, launched in the final months of the Bush administration, was
meant to save US financial institutions from a systemic collapse.
Andy Xie: Either America Or China Will Crash In 2011 The most likely candidates
to trigger the next global crisis are the U.S.’s sovereign debt or China’s
inflation. When one goes down first, the other can prolong its economic
cycle.
Non-US Banks Gained from Fed Crisis Fund Some of the world’s strongest banks
have profited from an emergency credit facility set up by the US Federal
Reserve to shore up confidence in the global financial system, according to
a Financial Times analysis of data released by the Fed.
Midas Resources: QE2 Explained Midas Resources explains how QE2 works and
why it is killing the dollar and our future.
National / World
Chris Matthews Wants Obama to Produce Birth Certificate Kurt Nimmo | MSNBC is
worried that the “birther issue” has grown legs and is about to swamp the
Barry Obama administration.
Alex Jones’ Audio Blog: War on Common Sense – Losing Our Cultural Instincts
Under the NWO THElNFOWARRlOR | Recorded during his break on
Christmas Eve, Alex discusses how we are deep into a long-term agenda to
conform humanity to the globalists’ system.
Social Security is not “Insurance” Ron Paul | Social Security does not represent
an old age pension, an “insurance” program, or even a forced savings
program.
Amerika Has Caught Up With 1984 Paul Craig Roberts | America’s future is the
world of Winston Smith.
10 New Year’s Re-Solutions For Non-violent Rebellion Activist Post | The only
reason the system is maintained is because the majority still acquiesce to it.
Alex Jones’ Audio Blog: War on Common Sense – Losing Our Cultural Instincts
Under the NWO Recorded during his break on Christmas Eve, Alex
discusses how we are deep into a long-term agenda to conform humanity to
the globalists’ system. Under modern day mind control, individuals willingly
defend their road to servitude while learning to shed their family, culture,
values and instinctual defenses against domination by the ruling predator
class.
Chris Matthews: Why Doesn’t Obama Just Release The Birth Certificate? On
Monday night’s edition of “Hardball,” host Chris Matthews talked about
putting the birth certificate controversy surrounding President Obama to
rest.
The Secret Of Queen Elizabeth Exposed Alex Jones and Aaron Dykes discuss the
British Royal Family and the Groom of the Stool.
Gold Surges To Two Week High As $1,400 Level Exposes Many To Pin Risk To be
sure, we assumed that this merely opens the way for yet another year end
rally to all time highs, in line with the prediction by John Embry from two
days earlier.
Pilot Who Took On Big Sis Goes Public The airline pilot who lost his federally-
issued gun and badge for posting video on YouTube critical of airport
security has chosen to go public with his identity.
2011: “Dissent Is What Rescues Democracy” The year 2011 will bring Americans
a larger and more intrusive police state, more unemployment and home
foreclosures, no economic recovery, more disregard by the US government
of US law, international law, the Constitution, and truth, more suspicion and
distrust from allies, more hostility from the rest of the world, and new
heights of media sycophancy.
With food safety bill, U.S. government will spend nearly $1 million per person to
prevent food-borne illness deaths The recently-passed Food Safety
Modernization Act, which was passed in order to prevent food-borne illness
deaths in the USA, will cost $1.4 billion over the first five years. But nobody
thinks about the economics of the issue. How many people are we going to
save by spending this $1.4 billion, even assuming it works?
US declined to investigate suspected Mossad assassination, cable shows The US

government lied about a request from the United Arab Emirates (UAE)
government to probe the death of a Hamas military leader, according to a
recently released US State Department cable from secrets outlet WikiLeaks.
High-risk insurance pools attracting few (Washington Post) [ As if we didn’t

already know we can’t believe anything thet say! ] Early feature of the new
health-care law isn't attracting as many customers as expected.
Iraq: 2 suicide bombings kill 19, wound 45 (Washington Post) [ Progress

breakin’ out all over …
Britain charges 9 of 12 arrested in terror plot (Post, December 27, 2010; 4:07
PM) …blowback’s a bitc*h! …
Conflicting accounts of deadly raid in Kabul (Post, December 27, 2010; 6:32
PM) WikiLeaks papers detail Iraq torture, US killings Al-Jazeera on Friday
released what it called “startling new information” from US documents
obtained by WikiLeaks, alleging state-sanctioned Iraqi torture and the killing
of hundreds of civilians at US military checkpoints. Julian Assange to RT:
WikiLeaks gives ‘most accurate picture of war’ The shocking WikiLeaks
release, which has revealed thousands of unreported civilian casualties in
Iraq, is the most accurate picture of war ever made, and it is food for
thought, says the website’s editor-in-chief. The report, condemned by the
Pentagon, claims that US commanders in Iraq ignored evidence of torture
and the murder of civilians. Spiegel: WikiLeaks logs may reveal war crimes
In its early analysis of the Iraq war logs released by whistleblower site
WikiLeaks on Friday, the German paper Der Spiegel pointed to several
accounts of what it calls “dubious attacks” by US Apache helicopters that
may have amounted to war crimes.Secret Iraq war records reveal grim new
details (Washington Post) Logs released by WikiLeaks offer chilling insights
about conflict's death toll and the tactics of Iraqi leaders who have taken
over as U.S. troops exit. [ Now why did I think the u.s. military’s numbers
were all wet? Poll: Does WikiLeaks put soldiers in danger? I haven’t looked
at this poll, but my inner poll says needless wars in other people’s lands put
soldiers at risk, particularly when your nation is defacto bankrupt. ]
Previous: 77,000 Iraqis killed from 2004 to August 2008, U.S. military says
(Washington Post) [ And you can take that to the fraudulent american bank
… riiiiight! … Come on … americans lie about everything and certainly this
… A conservative estimate from AP through only 2007: Study: 151,000
Iraqis died in conflict’s violence Surveyors face danger to count casualties
from 2003 to 2006 The Associated Press - updated 1/9/2008 7:15:50 PM ET
2008-01-10T00:15:50 About 151,000 Iraqis died from violence in the first
three years after the United States invaded, concludes the best effort yet to
count deaths — one that still may not settle the fierce debate over the war's
true toll on civilians and others … americans are just lying war criminal
american scum. Obama’s Finest Hour: Killing Innocent People For “Made-
Up Crap” Floyd Empire Burlesque Oct 22, 2010 If ever I am tempted by the
siren songs of my tribal past as a deep-fried, yellow-dawg Democrat, and
begin to feel any faint, atavistic stirrings of sympathy for the old gang, I
simply think of things like the scenario below, sketched last week by Johann
Hari, and those wispy ghosts of partisanship past go howling back to the
depths: … Unauthorized US strike kills 4 Pakistanis A non-UN-sanctioned
US strike on a house in Pakistan’s tribal region of North Waziristan has
killed four civilians and injured two others.]
Rise in mergers may spell trouble for jobs (Washington Post) [ Lifelines for a
few, obfuscation of impending disaster for most, fraudulent wall street just
loves those fees, and though contraindicated, the potential talking points
thereby. ] Some corporate mergers this year have been shadowed by fears
of layoffs.
Toasting the bad economy (Washington Post) [ As indeed the Russians should
since they have much to celebrate. Russian tiger team hails success yahoo
Moscow's unprecedented military deal (Washington Post) ( France should be
praised inasmuch as a strong Russia, and conversely, a weak perpetual war, war
mongering, war crimes, pervasively corrupt nation, america is optimal for world
peace! ) Russia is last in series of major powers to seal valuable deals with India
(Washington Post) ( Bravo for India … a deal with Russia is a deal with a future! )
] Their country still endures the sting of economic crisis, but Russians plan to
drink up this holiday season. Applebaum: The 'decline of the West' (Washington
Post) [ It really is true … and, no leftist sympathizer with his book of the same
name, none other than Buchanan says as much. The reason of course is based
on reality. From Orwellian Britain, to failed nation-state the pervasively corrupt
and defacto bankrupt wobama-bushland america, to perpetual war ‘me-toos’ (ie.,
nato allies, war crimes nations israel, u.s., etc.), their frauds (wall street, etc.)
protected, laws meaningless(see RICO case
) , their ruthless suppression subtle, hidden, but odious as never before in their
respective histories, the west at best has become that ‘distinction without
significant difference’ and heading to worse than can be imagined. Of course
they’ll lay blame to something other than the huge frauds / wealth transfers that
have plundered the nation. Indeed, one could even cogently argue that said
plundering gave rise to the flawed, failed communism lie in the first instance. Yet,
Russia, a great nation with a rich history is not a communist nation, did not
violently suppress the people as they shirked that communist yoke / albatross, is
not as defacto bankrupt, meaningfully lawless, pervasively corrupt america
engaging in perpetual wars of destruction to persons and property, and with a
great leader of historical dimension in Putin is a far more rational choice than the
bankrupt west on all levels. As for communist china, it has truly been a self-
defeating, self-destructive creation of the west out of greed which is in no short
supply in the west. PREVIOUS:
Wikileaks founder freed on bail (Washington Post) [ ‘… Moore (correctly) asserts

that Assange is under attack solely because he had the courage to expose
American war crimes. Moore writes:
We were taken to war in Iraq on a lie. Hundreds of thousands are

now dead. Just imagine if the men who planned this war crime back
in 2002 had had a WikiLeaks to deal with. They might not have been
able to pull it off. The only reason they thought they could get away
with it was because they had a guaranteed cloak of secrecy....
So why is WikiLeaks, after performing such an important public

service, under such vicious attack? Because they have outed and
embarrassed those who have covered up the truth…’
Though Assange’s arrest was on far more tenuous grounds owing to a CIA-linked
girl, Roman Polanski was similarly targeted:
BBC News - Roman Polanski triumphs at European Film Awards Dec 5, 2010 ...
Roman Polanski's thriller The Ghost Writer wins six prizes at the European
... Polanski was working on the film at the time of his arrest in ...
www.bbc.co.uk/news/entertainment-arts-11921048 {I strongly recommend
this, of course, masterfully done film which deals with exactly that topic
and the sordid, unscrupulous machinations of the cia / u.s. (no wonder the
u.s. opted out of coverage by world treaty / The Hague thereby) to avoid
detection of, and to further such activities as the war crimes referenced.}
Don’t forget: america has their own untouchables in the illegal sense, ie., wall
street, etc., and In interview, Bush defends Iraq war and waterboarding
(Washington Post) [ Defending the indefensible … what choice does he
have … then there’s the lies … ] Bush breaks silence, writes next chapter
(Washington Post) [ As a failed president and war criminal himself, moron
dumbya bush is among the few in the world that makes failed president
wobama look plausibly good in comparison … wobama merely continued
the failed policies of dumbya (perpetual war, no pros the frauds on
wallstreet, etc.) that got pervasively corrupt, defacto bankrupt america to
this point of decline and failure. ] Anne E. Kornblut Your take: His
most memorable moment? [ Like regrets in that old song (his way) he’s
had a few – http://albertpeia.com/evilonthetarmac.htm here’s a few:
bushisms from bush the brain-damaged moron
http://albertpeia.com/bushisms.htm :
Clinton Speaks: He Did It Because He Could - There Are Serial Killers On Death
Row Who Have Killed Fewer People Than Unconflicted, Pathological
Liar/Perjurer, Rapist, and Murderer, Psychopath criminal american clinton
clinton Flashed ("Dropped his Drawers") Paula Jones and Implored Her To "Kiss
It" (his p***s, which owing to distinctive "marking/disfigurement" she was
able to describe)
clinton "Cops a Cheap Feel/Grope" From Kathleen Willey In Attempting Prey
Upon Her Perceived Vulnerability
clintonites Threaten Dolly Kyle Browning In Attempting To Intimidate Her Into
Giving False Testimony
clinton Brutally Rapes Juanita Broaddrick
clinton Was Asked To Leave Oxford Owing To Sexual Assault Of A Fellow
Student
He Does It Because He Can
On March 11, 1999, Investor’s Business Daily reported that at least nine (9)
women have now charged that Clinton "personally assaulted them or,
through his ‘agents’ or ‘people,’ threatened to do them or their families
physical harm." The list includes Dolly Kyle Browning, Gennifer Flowers,
Juanita Broaddrick, Paula Corbin Jones, Kathleen Willey, Monica
Lewinsky, Linda Tripp, Sally Perdue, and Elizabeth Ward Gracen. "And all
of them say they’re afraid for their safety so long as he remains in power."
CLINTON BODY COUNT
By: Ether Zone Staff

Here is the latest body count that we have. All of these people have been
connected with the Clintons in some form or another. We have not included
any deaths that could not be verified or connected to the Clinton scandals.
All deaths are listed chronologically by date. This list is current and accurate
to the best of our knowledge as of January 13, 1999 August 1, 2000. (see
complete list http://albertpeia.com/bodycount.htm ) …’ ]
Robinson: On track to nowhere in Afghanistan (Washington Post) [ I agree with

Mr. Robinson and we should be thankful that he’s watching closely and,
unlike so many others, he has courage enough to say so :
Obama's glaring ego (Washington Post) [ Come on! Now known for what he
really is; viz., an insecure, dysfunctional, jive-talking b*** s*** artist, he’s just
once again, but typically wrong, and is nothing to have an ego about.
Robinson: White House is eerily silent on taxes (Washington Post) [ Eerily? I
think not! Expectantly? I think so! That is, once you get beyond the wobama
b*** s*** ! And, truth be told party distinctions are merely distinctions
without significant differences (no prosecution of the wall street frauds,
wars raging in Afghanistan / Middle East, etc.. But alas, as to the ‘wobama
whitehouse’ this was predictable early on as by David Icke : Barack Obama:
The Naked Emperor Shocking but true revelations from David Icke (a must
read) | ‘Vast numbers of people across the world, including many who
should know better, have been duped by the mind-game called Operation
Obama... (excerpts) Obama has been the chosen one for a long time, a fact
known only to a few in the deep inner circle, and his relationship with
Brzezinski almost certainly goes back to the start of the 1980s when he
attended the Ivy League, and big-time Illuminati, Columbia University where
Brzezinski was head of the Institute for Communist Affairs. Obama simply
will not talk in any detail about this period. He has been covertly funded and
supported ever since by the Trilateral Commission and its network of
foundations connecting into the Ford Foundation, for whom Obama's
mother worked. And a question: Does anyone really believe that someone, a
'man of the people', would simply appear from apparently nowhere to run the
slickest and best-funded presidential campaign in American history? He was
chosen long ago by those who wish to enslave the very people that Obama
says he wants to 'set free'. The sources of Obama funding read like a Wall
Street Who's Who - Goldman Sachs, UBS, Citigroup, Credit Suisse,
Deutsche Bank, J.P. Morgan Chase, Morgan Stanley, and so on. No wonder
he went back on his pledge to accept the limitations of public funding for his
campaign and instead took the no-limit option of 'private funding. Then there
is the Jewish financier, George Soros, the multi-billionaire associate of
Brzezinski and closely involved with the funding and marketing of Obama.
Soros is a former board member of the Illuminati's Council on Foreign
Relations and funds the European Council on Foreign Relations. In short, he
is a major insider' You can certainly see the Soros/Brzezinski techniques in
the Obama 'revolution' in the United States. It was the complex and secretive
network of Soros foundations and organisations, connected to the
intelligence agencies of the US and Israel, that trained and funded students
in the Ukraine, Georgia and elsewhere in the art of mass protest and
overthrowing governments. These manufactured protests were sold to the
world as peoples' revolutions, but it just so happened that when they were
over and the old regime was removed the new leaders were those waiting in
the wings all along - the puppets of Soros, Brzezinski and their associated
networks. Obama is just more of the same, a big smile with strings attached,
and controlled completely by the Illuminati networks that chose him, trained
him, sold him and provided his record funding. It was they who kept his
many skeletons under wraps, like the gay sex and crack cocaine allegations
of Larry Sinclair (from affidavit: 1. Who is Ron Allen that claims to be with
your Presidential camp, who is alleged to claim that someone claiming to
represent me called asking for $100,000, to keep me from coming forward
about our (Obama and I) November 1999 encounter of sex and cocaine
use?), and they will continue to do so as long as he jumps to their bidding.
Obama is just another Banksters' moll prostituting himself for fame and
power, and that's why he supported the grotesque bail-out of the banking
system and why he will always put their interests before the people. His
financial advisors are straight from the Wall Street 'A' list, including Paul
Adolph Volker (Trilateral Commission, Council on Foreign Relations,
Bilderberg Group), the head of the Federal Reserve from 1979 to 1987 and
Illuminati to his fingertips. Obama has made him head of the Economic
Recovery Advisory Board, which is dominated by insiders, including its staff
director and chief economist, Austan Goolsbee, a close Obama associate
from the University of Chicago. Goolsbee is an initiate of the infamous
Illuminati Skull and Bones Society at Yale University, which also includes
Boy and Father Bush. It was Goolsbee who told the Canadian government
not to worry about Obama's attacks on the economic effects of free trade
agreements because his words were just to win votes in the election
campaign. Another Wall Street insider, the Zionist Timothy Geithner
(Bilderberg Group, Trilateral Commission, Council on Foreign Relations),
was appointed by Obama to be his Treasury Secretary. Geithner was the
President of the New York Federal Reserve Bank, the most powerful in the
private Federal Reserve cartel that masquerades as America's central bank,
and he is a former employee of both the Council on Foreign Relations and
the appalling Kissinger Associates. Obama's Treasury team locks into the
inner circle around the Zionist Robert Rubin, the Director and Senior
Counselor of Citigroup, co-chairman of the Council on Foreign Relations,
and economic advisor to Obama. Rubin, a member of the Illuminati
Bilderberg Group, was the man behind Citigroup's strategy of expanding its
risk in debt markets which forced it to be rescued by taxpayers' money. The
very people who caused the financial crisis are being appointed by Obama
to decide how to respond to it (more taxpayers' money for them and their
friends) ‘
The following youtube video is well worth the look and explains how and
why the frauds on wall street have gotten away with their devastating fraud
thus far. The frauds on wall street et als should be criminally prosecuted,
jailed, fined, and disgorgement imposed. ( UPDATE: MORE CLAIMS OF
RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED
PROBE IN BLACK PANTHER CASE... ‘In emotional and personal testimony,
an ex-Justice official who quit over the handling of a voter intimidation case
against the New Black Panther Party accused his former employer of
instructing attorneys in the civil rights division to ignore cases that involve
black defendants and white victims ...’ US v. AZ... Cases against Wall
Street lag despite Holder’s vows to target financial fraud Washington Post |
Obama has promised to hold Wall Street accountable for the meltdown. ):


[ youtube is often down – website archived version is available as follows:
http://www.albertpeia.com/esotericagenda.flv
http://www.albertpeia.com/esotericagendalinktoarchive.htm ]
-------------------
In interview, Bush defends Iraq war and waterboarding (Washington Post)

[ Defending the indefensible … what choice does he have … then there’s
the lies … ] Bush breaks silence, writes next chapter (Washington Post) [
As a failed president and war criminal himself, moron dumbya bush is
among the few in the world that makes failed president wobama look
plausibly good in comparison … wobama merely continued the failed
policies of dumbya (perpetual war, no pros the frauds on wallstreet, etc.)
that got pervasively corrupt, defacto bankrupt america to this point of
decline and failure. ] Anne E. Kornblut Your take: His most
memorable moment? [ Like regrets in that old song (his way) he’s had a
few – http://albertpeia.com/evilonthetarmac.htm here’s a few: bushisms
from bush the brain-damaged moron http://albertpeia.com/bushisms.htm :
Clinton Speaks: He Did It Because He Could - There Are Serial Killers On Death
Row Who Have Killed Fewer People Than Unconflicted, Pathological
Liar/Perjurer, Rapist, and Murderer, Psychopath criminal american clinton
clinton Flashed ("Dropped his Drawers") Paula Jones and Implored Her To "Kiss
It" (his p***s, which owing to distinctive "marking/disfigurement" she was
able to describe)
clinton "Cops a Cheap Feel/Grope" From Kathleen Willey In Attempting Prey
Upon Her Perceived Vulnerability
clintonites Threaten Dolly Kyle Browning In Attempting To Intimidate Her Into
Giving False Testimony
clinton Brutally Rapes Juanita Broaddrick
clinton Was Asked To Leave Oxford Owing To Sexual Assault Of A Fellow
Student
He Does It Because He Can
On March 11, 1999, Investor’s Business Daily reported that at least nine (9)
women have now charged that Clinton "personally assaulted them or,
through his ‘agents’ or ‘people,’ threatened to do them or their families
physical harm." The list includes Dolly Kyle Browning, Gennifer Flowers,
Juanita Broaddrick, Paula Corbin Jones, Kathleen Willey, Monica
Lewinsky, Linda Tripp, Sally Perdue, and Elizabeth Ward Gracen. "And all
of them say they’re afraid for their safety so long as he remains in power."
CLINTON BODY COUNT
By: Ether Zone Staff
Here is the latest body count that we have. All of these people have
been connected with the Clintons in some form or another. We have
not included any deaths that could not be verified or connected to
the Clinton scandals. All deaths are listed chronologically by date.
This list is current and accurate to the best of our knowledge as of
January 13, 1999 August 1, 2000. (see complete list
http://albertpeia.com/bodycount.htm )
Susan Coleman: Rumors were circulating in Arkansas of an affair

with Bill Clinton. She was found dead with a gunshot wound to the
head at 7 1/2 months pregnant. Death was an apparent suicide.
Kevin Ives & Don Henry: Initial cause of death was reported to be the
result of falling asleep on a railroad track in Arkansas on August 23,
1987. This ruling was reported by the State medical examiner Fahmy
Malak. Later it was determined that Kevin died from a crushed skull
prior to being placed on the tracks. Don had been stabbed in the
back. Rumors indicate that they might have stumbled upon a Mena
drug operation.
Paul Olson: A Federal witness in investigations to drug money

corruption in Chicago politics, Paul had just finished 2 days of FBI
interviews when his plane ride home crashed, killing Paul and 130
others on Sept 8 1994. The Sept. 15, 1994 Tempe Tribune newspaper
reported that the FBI suspected that a bomb had brought down the
airplane.
Calvin Walraven: 24 year on Walraven was a key witness against

Jocelyn Elder's son's drug case. Walraven was found dead in his
apartment with a gunshot wound to the head. Tim Hover, a Little
Rock police spokesman says no foul play is suspected.
Alan G. Whicher: Oversaw Clinton's Secret Service detail. In October

1994 Whicher was transferred to the Secret Service field office in the
Murrah Building in Oklahoma City. Whatever warning was given to
the BATF agents in that building did not reach Alan Whicher, who
died in the bomb blast of April 19th 1995.
Ron Brown:. The Commerce Secretary died on April 3, 1996, in an

Air Force jet carrying Brown and 34 others, including 14 business
executives on a trade mission to Croatia, crashed into a
mountainside. The Air Force, in a 22-volume report issued in June of
1996, confirmed its initial judgment that the crash resulted from pilot
errors and faulty navigation equipment At the time of Brown's death,
Independent Counsel Daniel Pearson was seeking to determine
whether Brown had engaged in several sham financial transactions
with longtime business partner Nolanda Hill shortly before he
became secretary of commerce.
Charles Meissner: died: UNK - Following Ron Brown's death, John

Huang was placed on a Commerce Department contract that allowed
him to retain his security clearance by Charles Meissner. Shortly
thereafter, Meissner died in the crash of a small plane. He was an
Assistant Secretary of Commerce for International Economic Policy.
Barbara Wise: Wise a 14-year Commerce Department employee

found dead and partially naked in her office following a long
weekend. She worked in the same section as John Huang. Officially,
she is said to have died of natural causes.
Mary C. Mahoney: 25, murdered at the Georgetown Starbuck's coffee

bar over the 4th of July '97 weekend. She was a former White House
intern who worked with John Huang. Apparently she knew Monica
Lewinsky and her sexual encounters with Bill Clinton. Although not
verified, it has been said that Lewinsky told Linda Tripp that she did
not want to end up like Mahoney.
---------------------------------------------------------
Background http://albertpeia.com/CIAAgentAffidavit1.jpg
For Those Who Wonder About the bush-clinton-bush Stranglehold on the Nation,
Realize That Their Criminal Cooperation Began With Their Lucrative
Relationship Vis-a-vis What Was Known as the Mena, Arkansas Drug
(cocaine from Central/South America) Run As Set Forth In This CIA Agent's
Affidavit/Declaration Under Penalty of Perjury.
The Vietnam war was a painful time for America. Many young Americans were
drafted and died thousands of miles from their loved ones. Young men of
priviledge had a clear advantage - few of them went to Vietnam, securing
positions in the National Guards of their respective states. George W. Bush
was one of these men, securing a place in the Texas Air National Guard in
spite of a waiting list of several hundred. However, he claims that he did
not receive special consideration, which is clearly a lie.
Most of the young men lucky enough to get into the Guard fulfilled their
obligations. George W. Bush did not. He was absent without leave, AWOL,
for over a year. Not surprisingly, this got little attention from the corporate
media...
… After the hostages' release, the arms shipments to Iran continued. Profits were
funneled to another pet cause of the right wing - the Nicuaraguan terrorists
known as "freedom fighters" or "Contras". Another Contra source of
income was trafficking in narcotics, running cocaine into the United States,
with the full knowledge and cooperation of Administration officials. In the
80's there was a huge increase in the flow of cheap crack cocaine into the
inner cities of America and countless lives were destroyed.
A series of investigations led to the convictions of Oliver North and Vice Admiral
John C. Poindexter, head of the National Security Council, on charges of
obstructing Congress and unlawfully destroying documents, but both their
convictions were later reversed. In 1992 President George H.W. Bush
pardoned many of the top government officials who had been charged or
convicted in the scheme. The main perpetrators of Iran/Contra and
associated events remain free today, and many of them work in George W.
Bush's Administration.
Of the three generations of Bush men mentioned on this site, the most evil and
most dangerous by far is George Bush, Sr.
The Bush family came by their wealth on the backs of 11 million dead. Prescott
Bush, along with partner E. Ronald Harriman, supplied financial aid and
raw materials to Hitler's Third Reich.
In 1942, Bush/Harriman companies were seized under the Trading with the Enemy
Act: the Union Banking Corporation, the Holland-American Trading
Corporation, the Seamless Steel Equipment Corporation and Silesian-
American Corporation.
After the war, the CIA recruited many former Nazis to work for them, escaping
prosecution for war crimes. Klaus Barbie, infamous for ordering the murder
of French children, was among them. He was, however, eventually caught
and returned to France to stand trial.
… Shortly before the 9/11 attacks, John Ashcroft stopped flying commercial and
started flying on government-chartered planes. Why?
In fact, the George W. Bush received many warnings that he disregarded. Bush
knew, and he did nothing. Why?
Oil, that's why. And a free rein to rape the Constitution.
…- David Blomstrom ]
] Gerson: He could have taken quiet credit for the bipartisan tax deal; he chose
otherwise. ]
‘Deadbeat’ TARP banks on rise (Washington Post) [ Sounds like a plan! Viz.,
when worthless paper / securities / toxic assets are being carried in the
trillions now marked to anything (as per legislated mark to anything FASB
rule change), the reality is that there’s no real surplus from which to pay
dividends, etc.. ]Obama administration steps up monitoring of banks that
miss required payments.
(12-26-10) I’m constrained to eat crow here, inasmuch as I’ve previously had
negative things to say regarding Time Warner Cable. But, so as not to be
one of those do as I say, but not as I do hypocrites, I must state for the
record here that Time Warner Cable internet is far superior to the att-based
DSL, and that att can’t-do-thing means I’ll be canceling my (jersey / now
dumbya bushie land) att land line (done 12-27-10, along with DSL) which
wasn’t fully functional anyway but had kept same for the listing, and for
internet connection which ultimately required DSL and failed at that.
(12-23-10) MY INTERNET CONNECTION IS DOWN AGAIN AND OF COURSE, I
WILL HAVE MORE TO SAY ABOUT THE PERVASIVELY CORRUPT,
DEFACTO BANKRUPT AMERICAN SCUMBAGS SHORTLY! They will be
sorry they did this … I won’t forget it!
(12-22-10) MY INTERNET CONNECTION IS DOWN SO I’M USING A LOCAL

WORKSTATION COMPUTER AND WILL HAVE MORE TO SAY ABOUT THE
PERVASIVELY CORRUPT, DEFACTO BANKRUPT AMERICAN SCUMBAGS
SHORTLY! They will be sorry they did this … I won’t forget!
10 Good Reasons To Be Worried About The Stock Market In 2011 Joe Weisenthal,
On Sunday December 26, 2010, ‘This is one of David Rosenberg's best pieces in
awhile. In his latest daily note, the Gluskin-Sheff economist presents 10 reasons
bulls should be worried about the stock market in 2011. And it's not just that
there are all kinds of negative headlines that are being ignored, or that some
economic datapoints aren't so hot, or that there is still deflation. He makes a great
argument that many factors, like the level of bullishness, the relative valuation of
stocks to bonds, and the unanimity in thinking are worrisome. If anything, the list
isn't taking into account everything we see right now.
STRATEGISTS ARE UNANIMOUSLY BULLISH "In Barron’s look-ahead piece, not

one strategist sees the prospect for a market decline. This is called group-
think. Moreover, the percentage of brokerage house analysts and
economists to raise their 2011 GDP forecasts has risen substantially. Out of
49 economists surveyed, 35 say the U.S. economy will outperform the
already upwardly revised GDP forecasts, only 14 say we will underperform.
This is capitulation of historical proportions. "Read more:
http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-
market-in-2011-2010-12#strategists-are-unanimously-bullish-
1#ixzz19FzSp3Sd
INVESTORS ARE GOING GAGA FOR STOCKS"The weekly fund flow data from
the ICI showed not only massive outflows, but in aggregate, retail investors
withdrew a RECORD net $8.6 billion from bond funds during the week ended
December 15 (on top of the $1.7 billion of outflows in the prior week). Maybe
now all the bond bears will shut their traps over this “bond-bubble”
nonsense." Read more: http://www.businessinsider.com/10-reasons-to-be-
worried-about-the-stock-market-in-2011-2010-12#investors-are-going-gaga-
for-stocks-2#ixzz19G02eyCU
1. "Investors Intelligence now shows the bull share heading up to 58.8% from
55.8% a week ago, and the bear share is up to 20.6% from 20.5%. So
bullish sentiment has now reached a new high for the year and is now the
highest since 2007 ― just ahead of the market slide."Read more:
market-in-2011-2010-12#-3#ixzz19G0EYLuH
2. "It may pay to have a look at Dow 1929-1949 analog lined up with January
2000. We are getting very close to the May 1940 sell-off when Germany
invaded France. As a loyal reader and trusted friend notified us yesterday,
“fighting” war may be similar to the sovereign debt war raging in Europe
today. (Have a look at the jarring article on page 20 of today’s FT —
Germany is not immune to the contagion gripping Europe.) "Read more:
market-in-2011-2010-12#-4#ixzz19G0MEGXy
STOCK DIVIDEND YIELDS ARE NOT SO HOT "What about the S&P 500 dividend
yield, and this comes courtesy of an old pal from Merrill Lynch who is
currently an investment advisor. Over the course of 2010, numerous
analysts were saying that people must own stocks because the dividend
yields will be more than that of the 10-year Treasury. But alas, here we are
today with the S&P 500 dividend yield at 2% and the 10-year T-note yield at
3.3%.From a historical standpoint, the yield on the S&P 500 is very low ―
too low, in fact. This smacks of a market top and underscores the point that
the market is too optimistic in the sense that investors are willing to forgo
yield because they assume that they will get the return via the capital gain.
In essence, dividend yields are supposed to be higher than the risk free yield
in a fairly valued market because the higher yield is “supposed to”
compensate the investor for taking on extra risk. The last time S&P yields
were around this level was in the summer of 2000, and we know what
happened shortly after that. When the S&P yield gets to its long-term
average of 4.35%, maybe even a little higher, then stocks will likely be a
long-term buy. "Read more: http://www.businessinsider.com/10-reasons-to-
be-worried-about-the-stock-market-in-2011-2010-12#stock-dividend-yields-
are-not-so-hot-5#ixzz19G0ow2m9
3. THE DOW PRICED IN GOLD HAS MORE TO FALL Read more:
market-in-2011-2010-12#the-dow-priced-in-gold-has-more-to-fall-
6#ixzz19G2x0gFe"The equity market in gold terms has been plummeting
for about a decade and will continue to do so. When measured in Federal
Reserve Notes, the Dow has done great. But there has been no market
recovery when benchmarked against the most reliable currency in the
world. Back in 2000, it took over 40oz of gold to buy the Dow; now it takes
a little more than 8oz. This is typical of secular bear markets and this ends
when the Dow can be bought with less than 2oz of gold. Even then, an
undershoot could very well take the ratio to 1:1."Read more:
market-in-2011-2010-12#the-dow-priced-in-gold-has-more-to-fall-
6#ixzz19G17NoeR
4. BREADTH IS DETERIORATING "As Bob Farrell is clearly indicating in his

work, momentum and market breadth have been lacking. The number of
stocks in the S&P 500 that are making 52-week highs is declining even
though the index continues to make new 52-week highs. "Source: Gluskin-
Sheff Read more: http://www.businessinsider.com/10-reasons-to-be-
worried-about-the-stock-market-in-2011-2010-12#breadth-is-deteriorating-
7#ixzz19G1KZX2Q
5. VALUATIONS ARE GETTING RICH "Stocks are overvalued at the present

levels. For December, the Shiller P/E ratio says stocks are now trading at a
whopping 22.7 times earnings! In normal economic periods, the Shiller P/E
is between 14 and 16 times earnings. Coming out of the bursting of a
credit bubble, the P/E ratio historically is 12. Coming out of a credit bubble
of the magnitude we just had, the P/E should be at single digits." Source:
Gluskin-Sheff Read more: http://www.businessinsider.com/10-reasons-to-
be-worried-about-the-stock-market-in-2011-2010-12#valuations-are-getting-
rich-8#ixzz19G23tGaQ
6. HOUSING IS STILL A HUGE THREAT "The potential for a significant down-

leg in home prices is being underestimated. The unsold existing inventory
is still 80% above the historical norm, at 3.7 million. And that does not
include the ‘shadow’ foreclosed inventory. According to some superb
research conducted by the Dallas Fed, completing the mean-reversion
process would entail a further 23% decline in real home prices from here.
In a near zero percent inflation environment, that is one massive decline in
nominal terms. Prices may not hit their ultimate bottom until some point in
2015. "Read more: http://www.businessinsider.com/10-reasons-to-be-
worried-about-the-stock-market-in-2011-2010-12#housing-is-still-a-huge-
threat-9#ixzz19G2O6qNU
7. FISCAL STRAINS POSE A MAJOR THREAT "Arguably the most

understated, yet significant, issue facing both U.S. economy and U.S.
markets is the escalating fiscal strains at the state and local government
levels, particularly those jurisdictions with uncomfortably high pension
liabilities. Have a look at Alabama town shows the cost of neglecting a
pension fund on the front page of the NYT as well as Chapter 9 weighed in
pension woes on page C1 on WSJ." In the absence of Chapter 9
declarations or dramatic federal aid, fixing the fiscal problems at lower
levels of government is very likely going to require some radical restraint,
perhaps even breaking up existing contracts for current retirees and
tapping tax payers for additional revenues. The story has some how
become lost in all the excitement over the New Tax Deal cobbled together
between the White House and the lame duck Congress just a few weeks
ago." Source: Gluskin-Sheff Read more:
market-in-2011-2010-12#fiscal-strains-pose-a-major-threat-
10#ixzz19G2gqTZP
THE STOCK MARKET IS A BUBBLE Corson ‘The stock market is not bubbled up,
you say? Well then, let's take a serious macro macro look at the situation and
raise the matter as a question.How is it that from about 1950 (or 1965 at least) up
to about 1985, the Dow Jones Industrial Average stayed mostly in the range from
about 250 to 1200, when America was growing and doing pretty well on average,
and then, from about 1985 to the year 2000 or so -- a mere fifteen years -- the Dow
shot up to over 10,000, when middle class America realized almost no income
gains in real terms and the economy basically cycled from one boom and bust
cycle to the next?I argue we face one of the biggest bubbles of all time. Let me
explain and lets address the problem by focusing on the DJIA. Here is what the
DJIA has done since 1965. click to enlarge images
[chart]
What we observe is the DJIA has gone up about ten fold from 1965 to the year
2000 or so. But what has industrial production in the US done during that time
frame?
[chart]
Industrial production has increased to be sure, but only by a factor of three or so.
It certainly has not increased anything like the DJIA. But there is slippage, you
say. To be sure, we now generate more services, the time series data have been
smoothed and more importantly changed, etc., etc. But these explanations simply
don't bridge the gap.
Here is another one that doesn't either.
Back in the early-to-mid 1980s macro economists noted that the risk
premium being paid on equities over bonds was far higher than was
warranted by standard measures of individuals’ attitudes towards
risk. In short, the risk premium agents were being paid more than
compensated them for the risk. This was particularly surprising
since over the long run, the risk on equities was no different than
that on bonds. As a result, there appeared to be an arbitrage
opportunity by shifting one’s portfolio from bonds to stocks and
holding the equities for a long time.
Do you believe that? We simply had a financial epiphany and corrected. More
importantly, do you want to believe that or anything except we are bubbled up?As
we know, Japan had this problem with its stock market and here is what
happened. But that can't happen here you say. I ask, why not?
[chart]
Even GDP and profits have not caught up with this market. They too have only
increased three and a half fold at best.
[chart]
(The data in these charts are smoothed to conceal recessions and ease
presentation.)Why is it that we don't have a serious bubble in our stock market
now? Were our valuations all wrong for years on end earlier, or do we have it
wrong now? I think we have a problem and our heads are in the sand…
http://www.seekingalpha.com/article/243573-is-the-dow-showing-a-major-stock-
market-bubble?source=yahoo ’
Market Snapshot: U.S. stocks face pullback predictions
U.S. stocks face pullback predictions Sat, 25 Dec 2010 17:00:05 GMT After stocks
rise to two-year highs in the latest week, market analysts say a retreat
could be in he...
Connecticut, California join probe of Ally (Washington Post) [I’d be much more
impressed if they initiated a probe of more readily discernible criminal
offenses in violation of the RICO Act http://albertpeia.com Frauds/Liars
(sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive
Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the
Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of
Files Regarding Filed Attorney Grievance Against Fraud coan et als Or Here
For A Clearer View Of Filed Grievance Complaint, Response, Exhibits, and
Related RICO Filings Note the Committee of Frauds/Liars (sic-lawyers).
Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and
even a Vegetable Garden yale law prof who probably never practiced law in
his life. How Pathetic! http://albertpeia.com/fbiofficela91310 ] Justice: FBI
improperly opened probes (Washington Post) [ I just hope they’re as
zealous (in probing readily discernible crime) with regard to my RICO matters
and the corruption in the (judicial / legal) process since, in the final analysis, it
will have been the corruption within that will have brought the nation down
irrevocably and totally ] .
9-13-
10

Dear Sir:
I enclose herewith 3 copies of the within DVD rom autorun disk (which will open
in your computer’s browser) as per your office’s request as made this day (the
disk and contents have been scanned by Avast, McAfee, and Norton which I’ve
installed on my computer to prevent viral attacks / infection and are without
threat). I also include a copy of the DVD as filed with the subject court as
referenced therein (which files are also included on the aforesaid 3 disks in a
separate folder named ‘112208opocoan’)…
The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which
provides a civil remedy, including treble damages and attorney fees, as an
incentive for private prosecution of said claims probably owing to the fact that
the USDOJ seems somewhat overwhelmed and in need of such assistance given
the seriousness and prevalence of said violations of law which have a corrupting
influence on the process, and which corruption is pervasive). A grievance
complaint against Coan was also filed concurrently with the subject action and
held in abeyance pending resolution of the action which was illegally dismissed
without any supporting law and in contravention of the Order of The Honorable
Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the
horizontal rule are the referenced documents as filed. (Owing to the damage to
the financial interests of both the U.S. and the District of Congresswoman
Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False
Claims Act probably would apply and I would absent resolution seek to refer the
within to a firm with expertise in that area of the law with which I am not familiar).
The document in 5 pages under penalty of perjury I was asked to forward to the
FBI office in New Haven is probably the best and most concise summary of the
case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [
http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf (
http://albertpeia.com/fbiofficela91310 ) ].
The correspondence I received from Congresswoman by way of email attachment

(apparent but typical problem with my mail) along with my response thereto is
included on the 3 disks as fbicorrespondencereyes.htm . With regard to the
calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA
office and I was referred to the Long Beach, CA office where I personally met with
FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the
money laundering which he confirmed as indicative of same (he was transferred
from said office within approximately a month of said meeting and his location
was not disclosed to me upon inquiry). The matter was assigned to FBI Agent
Ron Barndollar and we remained in touch for in excess of a decade until he
abruptly retired (our last conversation prior to his retirement related to the case
and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for
the mob to which he registered disbelief and requested I prove it, which I did – he
served 12 years in prison, aggravated assault/manslaughter? – and no, there is
no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).
In contradistinction to the statement in said correspondence, there is a plethora

of information including evidence supporting the claims set forth in the RICO
VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case,
inter alia,
1. A judgment had been entered in my favor in the case, United States District
Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth
approximately now in excess of $300,000 remains unaccounted for and
which could be used for payment to creditors, Los Angeles, etc..
2. Counsel Robert Sullivan on my behalf documented by way of certification
upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal
upon which false statement he predicated a retaliatory and spurious
contempt proceeding against me causing substantial damage, and for
which he sought Judicial Notice of those and related proceedings as did I
in some of my filings.
3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to
Defendant Coan’s failure to file anything whatsoever by the court’s
deadline causing creditors and me substantial damages: [ Shiff Order of
Dismissal With Prejudice on Coan’s Failure to File Page 1
Page 2 ]
4. Defendant Coan had filed an action against me to prevent me from suing
him which necessitated me to fly to Connecticut for a hearing before The
Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut,
who denied Coan’s requested relief as to Coan but precluded my action
against Shiff (although there is no immunity, judicial or otherwise, for
criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [
transcript in pertinent part - crossexamofcoanbypeia.pdf ]
assigned the RICO case despite the conflict of interest in light of hundreds
of thousands of dollars of illegal (drug) money being laundered through the
Trump casinos by the RICO defendants, and despite my motion to recuse
her which motion she heard herself and denied, and U.S. Trustee Hugh
Leonard with whom I met personally refused to join or file a separate
motion to recuse and not long thereafter left said office for private practice
at Cole, Shotz, et als on retainer with the RICO defendants as his primary
client.
6. Probative and evidentiary documents, affidavits, exhibits, including those
turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to
Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the
U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S.
Attorney, and went over said documents and their probative value with
him. Within approximately a month thereafter upon inquiry I was told that
Jonathon Lacey was no longer with the office, that the file/documents
could not be located, and that there was no further information available
concerning contacting him or his location. I thereupon delivered by hand,
copies of said documents to the office of then U.S. Attorney Alito,
addressed to him, with assurance they would go directly to him. In addition
to being inept [ I looked in on the one mob case he had brought, bungled,
lost (accidently on purpose?) since I was suing some mob-connected
under RICO and the court (I had known / previously met outside of court
the judge Ackerman through a client) was absolute bedlam and a total joke
since incompetent corrupt Alito brought in all 20 mob defendants (rather
than prosecute one or a few to flip them first) who feigning illness had
beds/cots in the courtroom along with their moans during testimony and
had the jury in stitches. As much as I hate the mob, it truly was funny, if not
so tragic.], Alito is also corrupt (and maybe corrupt because he is inept).
After a reasonable (but still rather short) time I called to determine the
status and was told that Alito was no longer with the Office of the U.S.
Attorney, that he was (appointed) a federal judge, and that neither the
documents nor any file or record of same could be located. Alito did parley
the same / cover-up into quid pro quo direct lifetime appointment to the
Court of Appeals, 3rd circuit, despite the absence of judicial experience or
successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is
the same Sam Alito that now sits on the purported highest court in the
land. The real application of the illegal rule ‘don’t ask, don’t tell’.
There is applicable insurance / surety coverage and neither LA, nor creditors,
nor I should continue to have been damaged by this brazened corrupt and
illegal scenario, which should be resolved in accordance with the meaningful
rules of law apposite thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) ******** (cell phone)
Part 2: Woodward's 'Obama's Wars' Don't get 'locked into Vietnam,' Biden warns
(Washington Post) [ Yeah, when you have a lobotomized VP you tend not to
trust their opinion; but, I think they just cover their bases … you know, that
Kerryish both sides of all issues thing. In any event, wobama bought this
continued debacle and bears fault with the other Zionist war mongers.
Previously (on Iraq and Afghanistan, infra): Obama: 'It is time to turn the
page' on Iraq war (Washington Post) [ Oh come on! How patronizing to
have wobama spew his b*** s*** which b.s. has become synonomous with
wobama; ‘to give Iraqis the chance to shape their future’… Iraq’s been
destroyed, covered in cancer-causing depleted uranium, america’s defacto
bankrupt, etc. If only teleprompters had a brain of their own. ] He says the
U.S. "has paid a huge price" to give Iraqis the chance to shape their future
-- a price that now includes more than 4,400 U.S. dead. ]On Thanksgiving
weekend in 2009, Vice President Biden counsels President Obama about
sending more troops to Afghanistan.
• Full coverage: 'Obama's Wars'

• Audio: Obama on length of the war
• Audio: Obama on attack possibility
• Audio: Obama on terrorism tactics
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]
White House offers israel a carrot for peace talks (Washington Post) [ Oh come
on! This dog and pony show is getting old fast while america’s dying and
america could in a day precipitate a peace consistent with international law,
prior u.n. resolutions (i.e., 242, 338, etc.), (Oslo) accords, civilized behavior,
etc., despite and in contravention of israel’s militant intransigence, to stem
the hemorrhaging of american blood and treasure for israel’s sake. ]
Airstrike probe finds poor coordination between Pakistan, U.S. (Washington Post)
[ Riiiiight! That coordination thing underlying those unfriendly-fire incidents and
civilian deaths wherever american storm troopers happen to be … Eureka! And all
this while everyone was thinking that the same was just typical americana! ]
U.S. funds go to Taliban, warlords, report finds (Washington Post) [ Well, defacto
bankrupt america can afford it; after all, how much more defacto bankrupt can the
nation get? Well, then again, despite the headline, a lot of those hundreds of
billions are finding their way back into american hands, albeit dirty ones, like, for
example the 360 tons of hundred dollar bills flown into Iraq and still unaccounted
for, etc.. ]Military has minimal knowledge of and virtually no control over
thousands of Afghans it pays to guard operating bases, bipartisan report finds.
We Are Looking at Trillion-Dollar Plus Annual Interest Payments on U.S. Debt

Owens Krugman: We’re Going To Have To Default On Our Debt One Way
Or Another Some dour commentary from Paul Krugman this morning on the
implications of our monster debt. Economists Herald New Great
Depression The world is currently experiencing the modern day equivalent
of the Great Depression, according to a prominent economist who has
added his voice to scores of others now forecasting ongoing economic
doom on a scale not seen since the 1930s.) , and my position and that of
demographer Dent ( Prechter and many others are also in this camp
although I believe he does not factor in sufficiently the debasement of the
u.s. currency / dollar in arriving at his numbers which do however, at 1,000
on the DOW reflect real, as opposed to inflated values of 3-4,000 owing to
the ever more worthless Weimar dollars which provides ‘spin material’ for
the wall street frauds but is really quite ominous going forward, and very
detrimental in real economic terms.) [This is a global depression. This is a
secular bear market in a global depression. The past up move was a
manipulated bull (s***) cycle in a secular bear market. This has been a
typically manipulated bubble as has preceded the prior crashes with great
regularity that the wall street frauds and insiders commission and sell into.
This is a typical wall street churn and earn pass the hot potato scam / fraud
as in prior crashes’. This national decline, economic and otherwise, will not
end until justice is served and the wall street frauds et als are criminally
prosecuted, jailed, fined, and disgorgement imposed.] [ The reason for the
necessity of prosecution is founded in the circumstances surrounding and
the mindset of what one would deem ‘antisocial personalities’ (disorders) ( I
prefer the prior descriptor of such as psychopathic; the euphemistic
‘sociopathic’ was ‘far too understanding’ in my view of the social /
environmental factors allegedly giving rise to such negative / destructive
behaviors. I don’t buy it.) Specifically, accepted studies / findings have
concluded that the essential defect in those with antisocial (psychopathic)
personality disorders is an inability to respond normally to fear-inducing
stimuli, leading in turn to an inability to inhibit responses that should, but,
as with wall street, have not resulted in punishment. Thus, while I think most
on wall street have proven themselves criminally insane (for the money, ie.,
Stewart, ‘Den of Thieves’ / ‘Liar’s Poker’, the most recent financial debacle /
crisis, which continues to this day); at the least, owing to a lack of fear of
prosecution / punishment, they have become defacto sociopathic /
psychopathic. ] Krugman: It's All Downhill From Here Cullen Roche Love
him or hate him Paul Krugman has been awfully right with regards to the
macro picture in the last few years. He’s one of the rare economists who had
the foresight to see the housing bubble and the likelihood of economic
downturn that would result from it. Krugman recently caused a stir when he
said the US economy was headed for the third depression. Here Are 13
Signs That We’re Actually In A Depression Right Now Gregory White | David
Rosenberg has outlined, in his latest letter, the 13 reasons with this so-
called recovery is actually a depression… David Rosenberg has outlined, in
his latest letter, the 13 reasons with this so-called recovery is actually a
depression.Rosenberg sums it up like this:
This is what a depression is all about — an economy that 33 months after a

recession begins, with zero policy rates, a stuffed central bank sheet, and a
10% deficit-to-GDP ratio, is still in need of government help for its
sustenance.
Harry Dent, Jr. Economy will be in a Depression by 2011

The worst of this next depression is likely to hit between mid-2010 and mid-2013,
especially around early 2011, but if the banking system continues to implode a
deep downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
Inflation will Increase until mid- 2010 and then turn to Deflation
Interest Rates will Increase
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010
and 2012). ]
Three Horrifying Facts About the US Debt “Situation” Phoenix Capital Research |
The US Fed is now the second largest owner of US Treasuries.
Dollar Tumbles as Fed Prepares to Print More Money Reuters | The Fed may lead
the way into more aggressive quantitative easing, which is seen knocking
the dollar lower.
Dollar set for sharp decline, Goldman forecasts The dollar will embark on a sharp
decline over the next 12 months, Goldman Sachs forecast on Wednesday, as
policy makers in Washington look poised to press the trigger on another
round of printing money.
Sunnis' walkout mars political talks in Iraq (Washington Post) [ ‘It’s … be…
ginning to look a lot like Christmas, everywhere pervasively corrupt ‘little israel’
defacto bankrupt war criminal nation america goes (to that Christmas tune) …
Nothing like creating the anti-Christian sentiment through failed policy to keep
the war machine greased with money defacto bankrupt america doesn’t really
have (and aren’t the jews / israelis by definition ‘anti-Christ and hence anti-
Christian’) ] One chaotic parliamentary session reflects challenges facing U.S.
efforts to leave behind a stable Iraq with a representative government. Attack on
Karachi police building kills 18 (Washington Post) About six militants open fire on
a criminal investigations office in the "red zone," a highly secured area within
Pakistan's largest city that houses the provincial minister's residence and the
U.S. Consulate. [Visiting U.S. senators praise Afghan progress, say drawdown
date is unrealistic (Washington Post) [ I’ll tell you what’s unrealistic: having
compromised senators ( ie., non-war-heroe senile mccain, closet homosexual
graham, incompetent zelig zionist lieberman, new york sinkhole slug Kirsten
Gillibrand chided As 'Schumer's (zionist) Little Girl' ) stay the course with already
failed pervasively corrupt, defacto bankrupt american policy … Paul Craig
Roberts: Government Abandoned Vietnam POWs Kurt Nimmo | John McCain
worked overtime to make sure Vietnam POWs never came home. I think the even
bigger story vis-à-vis mccain is: http://www.albertpeia.com/heroenot.htm ‘Did
you know that that so-called "american heroe" john mccain was referred to by his
fellow pows in Vietnam as something akin to the "songbird" inasmuch as he was
constantly "singing" to his Viet-Cong captors to curry favor and better treatment?
This has been documented with authority by Colonel David Hackworth. The same
violates military code/protocol (other soldiers have been court-martialed for far
less) click Here, Here. [ http://www.albertpeia.com/hackworth.htm ] But, you see,
this covered up scenario, compromizing the false facade of far less than a heroe,
is exactly what a criminal (lie of a) nation as america loves and encourages (get
everyone's hands dirty so no-one dares to rectify same, ie., bush, sr., clinton,
bush, jr.). That is, "toe the (corrupt, propagandized) line", become a criminal, or
be exposed, prosecuted, and/or ruined; and, hasn't anyone asked how "wall
street" has been "spared the spotlight" (and even was accorded protective
legislation from their criminal culpability) and focus of inquiry, attention, and
prosecution despite being the primary beneficiaries financial and otherwise of
these scams (you know the wall street motto, "churn and earn"; huge conflicts of
interest if not outright fraud)…’…Oh and they so can afford it Deficit panel
proposes huge cuts (Washington Post) [ Cuts? I heard the corrupt, incompetent
lawmakers were giving themselves a raise. They actually deserve at least a 10%
paycut and abolition of those lifetime appointments / permanent corrupt
bureaucracies. Nothing succeeds like failure and crime in pervasively corrupt,
defacto bankrupt america! ] Lawmakers propose curbs on Social Security, cuts in
spending and tax hikes if long-term goals aren't met. ]
Afghans march in Kabul to denounce NATO strikes that killed civilians:

Demonstrators shout anti-American slogans, denounce NATO strikes
(Washington Post ) Sounds like a plan! Almost surreal was the appearance
of gates on failed network ‘news’ show to shill the non-strategy of draw
down (of troops) linked to success. What success? Just being there and
every day they’re there is unequivocally abject failure. Celebritology
Weekend: Angelina Jolie biography arrives(Washington Post ) I usually don’t
weigh in on entertainment news, but this headline concerning what appears
to be a disparaging, and quite selectively so, purported biography of
Angelina Jolie is very disheartening when you consider the numerous
instances of failed leadership at nearly all very high levels of government
having so detrimental an impact on the world, that morton deems his time
appropriate to an actress who has actually tried to do good things (U.N.,
etc.) without having to. Indeed, even her latest film ‘Salt’ (spectacular by any
standard as is her performance – there are at least 2 winning sequels there
with 4 the max and stretching it owing to age – she puts all, and I mean all
the ‘Bonds’ to shame) had an important message in terms of the damage to
this nation by a seemingly endless, nation-bankrupting, anti-american (war
criminal israelis already, and quite correctly, globally hated) sentiment
producing war strategy that is neither strategy nor reasonably consistent
with any positive american goal / objective; but rather is such a debacle and
folly that the same could very well be one that only an enemy of defacto
bankrupt america could hatch and for the reasoning set forth in the well-
written / directed film. She astutely observed and talked about the
synchronicity of the film as juxtaposed to recent events revealing that she
is wiser than most in Washington.
Afghanistan: U.S. and Afghans at odds over Kabul Bank reform (Washington
Post) [ Wow! Given defacto bankrupt america’s continued and covered-up
financial debacle, any Afghan resistance to the american model / modus
operandi is tantamount to ‘proof of life (rationality)’. ]
Memoir: Bush debated dropping Cheney (Washington Post) [ More unequivocal

proof that moron dumbya bush couldn’t, like wobama and recent
predecessors, make the right decision even if their presidencies and the
nation’s survival depended on it. Heck uv a job brownie, bushie, cheney,
wobamie, etc…. Keep up those nation bankrupting, attention-diverting wars
you knucklehead war criminals, you. ]
U.S. operations in Kandahar push out Taliban (Washington Post) [ Break out the
bubbly, victory at last! Riiiiight! Reality … defacto bankrupt american forces
moved in, Taliban moved out. ]
Global impact of U.S. elections Foreign Policy: A Plan B for Obama

(Washington Post) [ Plan B? Come on! … Either he’s on plan z or has no
plan at all! ] World capitals brace for a new political order in Washington, as
policymakers and analysts tried to assess the impact on foreign policy of a
new Republican-led U.S. House. Foreign Policy: The China election
[ China election? Don’t make me laugh! Almost as big a joke as american
elections! (I realize the article wasn’t about an ‘election’ (hmm … riiiiight) in
China per se, but wanted to make the albeit indirect point.)]
Pentagon's Cyber Command seeks authority to expand its battlefield

(Washington Post) [ Sounds like a backdoor censorship plan to me. After all,
based on actual events and history that belies their words, isn’t expanding
battlefields and perpetual war what they’ve become all about? The nation’s
defacto bankrupt. Afghanistan, as warned here, an abject failure. Kind of
reminds me of that war film (I don’t recall the name) where at the close of
WW2 you see some nazi officers huddled around with one asking what to do
now, with a stern, unequivocal response, ‘prepare for the next war’.
Ridiculous! ]
Russia's Ryabkov on U.S.-Russia relations: 'We can offer tangible results, and we
will do more in the future' (Washington Post) [ Well, I don’t know about
diplomatic relations (one can only hope), but if it’s sexual relations, what’s
not to like … about Russian girls … They’re total babes! Back to the
diplomatic front, I’ve grown a bit partial to the rationality of the Russian
leadership based not solely on what they say (defacto bankrupt america
talks about peace, but directly and through proxies, ie., israel, etc., is war
mongering, war facilitating, war profiteering on multiple fronts and killing
many innocent children, women, and men; and of course my own experience
with american meaningfully lawlessness, infra, etc., ), but what they do
(Russia’s engaged in no wars, made the transition from communism to
present without violence, finds time to preserve ‘The Siberian Tiger’, etc.,
and is not a hypocrite regarding professing to be a nation of meaningful
laws as america disingenuously purpots to be, etc.) previous:
Wall Street firm targets District-based energy practice (Washington Post) [ From
one corrupt sinkhole (d.c. / no. virginia) to another, perhaps the largest ( wall
street/new york/jersey/ct. metro); ho, hum. The pervasively corrupt american
illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush
appointments should be abolished, which corrupt entities are unheard of in
productive societies as China, Japan, etc.. Time to abolish these drags on
society and eliminate their lifetime stipends and costly bureaucracies. Rules
of law mean nothing to these typically corrupt americans. Most, including
sam alito of the u.s. supreme court, concerning drug money laundering and
obstruction of justice in the 3rd circuit ( also maryanne trump barry who
covered-up drug money laundering through her brother’s casinos in a civil
RICO case) should have gone to or belong in jail. Contrary to popular belief,
they do it for the money, personal money, big, cash, untraceable money. The
fog of war is great for such things (360 tons $100 bills flown into Iraq and
missing, etc.).
]. america’s just a fraudulent and failed defacto bankrupt nation. ] It's part of
a push by law firms to expand their D.C. footprint in an era of increased
regulatory scrutiny.)
A united goal: Saving the tiger (Washington Post) [ Clearly the wisdom of an
historically great leader for the ages, Vladimir V. Putin should be given great
deference in all matters of global concern. Having evolved from his youthful
indiscretion as a novice KGB agent, a hand dealt to him (by a soviet communist
system) more than chosen, he has reminded the world of the greatness that was,
is, and forever will be Russia’s and His! ] The tale of the magnificent Siberian
tiger, and its unfinished fight for survival, should be a compelling one for the 500
conservationists and world leaders arriving for Russian Prime Minister Vladimir
V. Putin's tiger summit this weekend.
Where no man has gone before (Washington Post) [ Geeh! I can almost hear that
Star Trek Theme reverberate in my head, followed by a taste of Zarathustra …
After all, this is 2010 Odd but hardly a Space Odyssey. Indeed, merely launching
rockets is a far cry from Jupiter, and as for the moon; well, they just didn’t get
that done either … though the video was … okay. Launch of secret US space
ship masks even more secret launch of new weapon
The Militarization of Outer Space: The Pentagon’s “Space Warriors” Global

Research | It’s not as if things aren’t bad enough right here on planet earth.
Now the Defense Department wants to up the stakes with new, destabilizing
weapons systems that will transform low- and high-earth orbit into another
“battlespace.”
buzz aldrin wants to colonize Mars … Riiiiight buzzed! Better check with DePalma
to see if he already has the footage in the can since you won’t be able to use
the moon footage for the new boondoggle video ...
OBAMA SPEECH OUTLINES PLANS FOR RETURNING DEFACTO BANKRUPT

U.S. TO SPACE – OOOOOH! SOUNDS LIKE A PLAN … FOR INNER SPACE
(IMAGINATION).
NASA's New Asteroid Mission Could Save the Planet Space.com - Tariq
Malik - CAPE CANAVERAL, Fla. - President Barack Obama set a lofty next
goal this week for Americans in space: Visiting an asteroid by 2025.
Obama's asteroid goal: tougher, riskier than moon The Associated Press
Obama calls for NASA to focus on trips to Mars and beyond Computerworld
New Boondoggle promised to save NASA boondoggle defacto bankrupt

budget piece of pie. And don’t forget, Bruce Willis and Ben Affleck, et als,
have already done this so it’s not as if they’re starting from ‘ground zero’, so
to speak; and Brian DePalma already has ‘Mission to Mars’ in the can, but
beware say the producers of ‘Species II’ since Eve, the cloned daughter of
Sill, might want to mate with astronaut Paddy Ross who has returned from
Mars as a space alien host body.
First fake moonwalker blasts Obama's space plan msnbc.com - Bill Ingalls -
The first man to pretend to walk on the moon blasted President Barack
Obama's decision to cancel NASA's back-to-the-moon program on Tuesday,
saying that not going with the new movie is “devastating” to america's
boondoggle spaced out effort. Fake dutch 'moon rock' revealed a treasured
piece at the dutch national museum - a supposed moon rock from the first
manned lunar landing - is nothing more than petrified wood, ...bbc news bbc
news | europe | fake dutch 'moon rock' revealed prized moon rock a fake - a
piece of moon rock given to an overseas politician by the united states is
actually a lump of petrified wood, museum authorities revealed yesterday. ...
'Moon rock' in dutch museum is just petrified wood aug 27, 2009 ... Fake
moon rock at dutch national museum. Rijksmuseum / ap. This rock,
supposedly brought back from the moon by american astronauts, ...
http://www.albertpeia.com/moonfraud.htm
In reality it is just a piece of petrified wood ... Another piece of evidence that
shows again that apollo program is indeed a fake and a typical american
fraud!
http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv http://
www.albertpeia.com/moonfraud.htm
] SpaceX Falcon 9 rocket launch heralded as successful test of commercial

spaceflight.
NATO strategy alters weapon development (Washington Post) [ What strategy?

National bankruptcies? More unnecessary death and destruction? Yes, I
said unnecessary. All this has been geopolitically counter-productive and
contra-indicated ab initio. Change? What change? Todays headlines: Nato
chief says there is no alternative to staying in Afghanistan Telegraph
[ Oooooh! Sounds like a plan! ]| Anders Fogh Rasmussen said NATO would
commit the alliance to train and support Afghan troops battling the Taliban
in substantial numbers through to the 2014 deadline for local forces to take
over security.Britain’s top soldier: al-Qaeda cannot be beaten SINA.com |
Violence across Afghanistan is at its worst since the Taliban were
overthrown by US-backed Afghan forces nine years ago, with civilian and
military casualties at record levels despite the presence of about 150,000
foreign troops. ]As NATO struggles to define itself in a post-Cold War world
of new threats and tight budgets, the alliance this week will lay out a vision
for itself that is meant to better reflect the 21st century.
Report: Sharp uptick in Afghan Civilian casualties (Washington Post) [ Yeah! That
progress thing they’ve been ‘flaunting’; and concomitantly, there’s been a
sharp uptick in the budget deficit … an increase, a plus, so, ergo, ‘progress’
… consistent with their ‘plan’! Lovely! ]
Petraeus warns Afghans about Karzai's criticism of U.S. war strategy
(Washington Post) [ Riiiiight! It would be so foolish of them to argue with or
question such a nation-bankrupting / destroying failed strategy (by even his
own prior, stated, unmet standards / criteria.) ]
Afghan spending faces scrutiny (Washington Post) Wow! Talk about a little bit
late for that. Oh, right … they were busy spending money the nation doesn’t
have on other things. Congress extends war funding for Afghanistan
Baltimore Co. Independent Examiner | Congress voted to extend funding for
the war in Afghanistan by an additional $59 billion late on Tuesday.
Disappearing Act: $8.7 Billion of Iraq Development Money Missing Kurt
Nimmo | Government says it is all the fault of shoddy accounting practices.
3 U.S. troops die in Afghan war's deadliest month (Washington Post
7-30-10) World News Digest: a Worth it? 4 U.S. troops die in bomb blast in
south Afghanistan (AP, July 24, 2010) ‘There will be blood’ … whoops, that’s
oil, wrong movie theme. This one’s about heroin trade. 2 More Americans
killed in copter crash in Afghanistan (AP) Not so much, unless they rename
Tony Montana, to To Mon el Swahili and recut ‘Scarface’ to reflect an
Aghanistan Heroin connection, or similarly change ‘Hurt Locker’. It’s a good
thing for the military that IQ tests aren’t required. Three U.S. Embassy
guards killed in rocket attack in Baghdad's Green Zone (Washington Post)
Big yes there since ‘The Green Zone’ got Hollywood movie status. Bomb
near Iraq mosque kills 15; U.S. soldier dies in road blast (Washington Post,
July 22, 2010) But guess what … none of that’s worth it; even for volunteer
soldiers whose suicide rate is unprecedented owing to this pointless,
meaningless conflagration for the sake of the military industrial complex and
the enrichment of the few; and, to which Pat Tillman was to attest which got
him fragged.
Obama reminds veterans he's beginning war's end (Washington Post) Sounds
like a plan! I mean, after all you must have a beginning before you have an
end. Yeah, there’s a certain ineluctable logic to that; a certain ‘ring’ to it! Like
full circuit ‘b*** s***!
Karzai officials on CIA payroll (Washington Post) [Riiiiight! The roster of allies …
love of america breakin’ out all over the region … boy oh boy … talk about
creating your own boondoggles … well, they can afford it. After all, it’s only
taxpayer money and america’s already defacto bankrupt. Then again, they have
the requisite licenses; viz., to kill, to steal, to distribute illegal drugs, etc.. Whew!
Glad they didn’t act without the requisite licensure.]
Drudgereport: WASHPOST TAKES ON THE SPOOKS: Hidden world, growing
beyond control...
854,000 people have top-secret security clearance...
You really have to laud The Washington Post for this investigative brilliance
which whether people appreciate it or not, requires great corporate and
personal courageNSA Has Gotten So Big, Area Around It Has 112 Acres Of
Parking Spaces
N.Korean attack leaves U.S. with few options ( Washington Post ) [ I’d be very
concerned about the contrived nature of the incident as set forth by
infowars.com / prisonplanet.com as follows: Korean War Crisis: Brought To
You By Uncle Sam Despite the fact that South Korea admits it fired the first
shots that prompted the North to retaliate, the vast majority of the
establishment press are feverishly blaming North Korea for a new escalation
in the crisis, while failing completely to acknowledge the fact that the whole
fiasco was generated as a direct result of Uncle Sam’s policy through two
separate administrations to ensure hereditary dictator Kim Jong-Il and his
successors acquired the atom bomb. North Korea Attack Part Of RAND
Plan For Total War? The exchange of artillery fire between North and South
Korea, which the North says was started by South Korea firing shells during
a military drill, could act as the catalyst for a huge new conflict that the
RAND Corporation has been lobbying for over the past two years. ] North
Korea's artillery attack on a South Korean island Tuesday, coupled with its
choreographed rollout of a new nuclear program, has presents the U.S. with
a massive strategic challenge. Photos: Artillery fire exchanged
U.S. deployment sends a message to China ( Washington Post ) [ And what

message is that , pray tell … I’d say they’ve gotten the message and here’s
the first installment of a reply to the multi-front contrived war / war
mongering / pervasively corrupt, defacto bankrupt nation america …
Drudgereport: CHINA, RUSSIA QUIT DOLLAR … Previous: N.Korean
attack leaves U.S. with few options I’d be very concerned about the
contrived nature of the incident as set forth by infowars.com /
prisonplanet.com as follows: Korean War Crisis: Brought To You By Uncle
Sam Despite the fact that South Korea admits it fired the first shots that
prompted the North to retaliate, the vast majority of the establishment press
are feverishly blaming North Korea for a new escalation in the crisis, while
failing completely to acknowledge the fact that the whole fiasco was
generated as a direct result of Uncle Sam’s policy through two separate
administrations to ensure hereditary dictator Kim Jong-Il and his successors
acquired the atom bomb. North Korea Attack Part Of RAND Plan For Total
War? The exchange of artillery fire between North and South Korea, which
the North says was started by South Korea firing shells during a military
drill, could act as the catalyst for a huge new conflict that the RAND
Corporation has been lobbying for over the past two years. ] North Korea's
artillery attack on a South Korean island Tuesday, coupled with its
choreographed rollout of a new nuclear program, has presents the U.S. with
a massive strategic challenge. Photos: Artillery fire exchanged In sending
the aircraft carrier USS George Washington to the Yellow Sea, the Obama
administration says it is putting on a show of U.S. support for South Korea.
Poll: How should U.S. proceed? Few good options for U.S.
Obama marks Veterans Day with a warning to North Korea (Washington Post)
[ There’s a new expression goin’ round in the realm of global diplomatic
discourse to supplant the censored ‘go f*** yourself’. It is, ‘go warn yourself’.
I mean, after all, what nation’s been invading nations causing destruction
and death of innocent lives based on lies, committing war crimes,
precipitating financial crises through ubiquitous fraud, etc.. Yes, pervasively
corrupt, defacto bankrupt, war criminal nation america, ‘go warn yourself’! ]
Little-confidence vote Milbank: Pelosi won her minority leader bid, but it was
hardly a victory (Washington Post) [ I disagree! This was ‘victory american
style’ because nothing succeeds like failure (and crime and corruption) in
america. They’re still doin’ the wars though bankrupt, still no prosecutions
of wall street frauds, and on and on with the typical b*** s***! ]
WikiLeaks founder could be charged under Espionage Act (Washington Post)

[ Drudgereport: Interpol issues wanted notice for Julian Assange [ They just
can’t take the truth! ] ...
US cuts access to files [ Think about it. Really think about it. Their policies are in
the tank, along with the nation and the rest of this world as a consequence. Don’t
those so detrimentally affected (everyone) have a right to know? I think in light of
the global frauds, contrived perpetual wars though defacto bankruptcy of this and
other nations, pervasive corruption and crime, failed policies domestically and
geo-politically while serving the very parochial interests of the self-interested few,
the answer is an unequivocal, YES! I believe that world history will write Mr.
Assange as a hero in the truest sense. He should be given a medal; and,
certainly, since mr. b*** s*** wobama undeservingly got a ‘nobel peace prize’
(what he does, not what he says, ie., Afghanistan, etc.), who more than Julian
Assange is deserving of that and more? Cover-up / propaganda … thy name is
fallen america.]...
WIKILECTURE: 'HILLARY SHOULD RESIGN' ‘…Hillary Clinton, Julian Assange
said, "should resign." Speaking over Skype from an undisclosed location on
Tuesday, the WikiLeaks founder was replying to a question by TIME managing
editor Richard Stengel over the diplomatic-cable dump that Assange's
organization loosed on the world this past weekend. Stengel had said the U.S.
Secretary of State was looking like "the fall guy" in the ensuing controversy, and
had asked whether her firing or resignation was an outcome that Assange
wanted. "I don't think it would make much of a difference either way," Assange
said. "But she should resign if it can be shown that she was responsible for
ordering U.S. diplomatic figures to engage in espionage in the United Nations, in
violation of the international covenants to which the U.S. has signed up. Yes, she
should resign over that."…’
CITY ON EDGE: Cash-Strapped Newark, new jersey Forced To Lay Off 14% Of
Police Force... [ From decades old (1978-1985) direct personal experience with
newark, n.j., the police are the absolute last cuts that can be afforded to be
made. Indeed, while walking through Military Park (a sliver of a “park” - more a
pedestrian thoroughfare/cement walks) in newark, new jersey on the way to
the bank during lunch hour, I heard the clearly audible screams/cries of what
turned out to be an old lady on the ground with blood streaming from her
mouth. I ran toward the sound of the cries, the source of which I could not see
because there were so many people in and about this thoroughfare so as to
block any vision of the source of the cries. When I came to the woman, on the
ground, blood streaming from her mouth, I asked what happened, to which
she responded she had been hit in the mouth and knocked to the ground, her
purse stolen/put inside her shopping bag, and she pointed out the criminal
casually now walking across the main street. Nobody stopped to help her,
many having passed her by. I slammed the thug to the ground so hard that, in
light of all the blood and confusion (limbic system / adrenalin flow) I thought I
had been stabbed (the blood was from his elbows hitting the pavement so
hard - no one helped / a crowd gathered / an undercover cop happened along).
When I testified at the Grand Jury Proceeding I made sure his threat on my life
was set forth in prima facie fashion so as to maximize the DA’s position with
both felonies ( he went to prison – pled out ). The other case I wrote about
here ( This was included on my website in the Psychology discussion of
‘bystander effect’ / diffusion of responsibility. ) - Having had occasion to have
run down a mugger in newark, n.j. who apparent had followed a girl from the
bank on her way to the bursar to pay tuition, though in pretty good shape, I
was astounded by how totally exhausting such a pursuit was, how much like
rubber my arms were when I traded punches with the perpetrator, and truth be
told, if I had a flashlight on my belt, I have little doubt that I would have
probably used it to subdue the perp. The girl was not that seriously injured,
did get her pocketbook and tuition back, and the criminal went to jail. The
other thing about such a pursuit that amazed me was that no one else
assisted the girl or me despite being in a position to do so). (Other newark /
new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c.,
d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne
trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc..
) ]
]

litigation
fperjury.pdf
dearly] ...
TO THE BRINK
WIKILEAKS TURNS ON OBAMA! … [ Like who hasn’t, and for good reason! Publishing the
Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct
strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the
failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world
dearly] ]
including possible charges under the Espionage Act, sources say.
Afghanistan: Gates: Progress has 'exceeded my expectations' (Post, December

8, 2010; 5:53 PM)
U.S. hurting peace chances by giving up on israeli settlement freeze,
analysts say (Post, December 8, 2010; 11:00 PM)
Rice, on 'The View,' defends Obama on WikiLeaks (Post, December 8, 2010;
1:00 AM) (Washington Post) [ The problems in all these regions are
inextricably tied to the nation with insurmountable problems of its own and
own making. That nation quite obviously is pervasively corrupt,
meaningfully lawless, defacto bankrupt america (along with such
comparable enablers / allies as zionist israel, nato, etc.. How can anyone
believe anything they say, least of all gates who hails from
Clinton pushes for economic and political reforms in tour of Middle East (Post,
January 13, 2011) Clinton expresses solidarity with Arabs on Mideast tour
(Post, January 13, 2011; 4:05 PM) Diehl: Mideast threats that can't be ignored
(Washington Post) [ Amazing what not running for prospective office can do
for balanced thinking, but still not quite. After all, who doesn’t know outside
of america / israel that the biggest Mideast threats are … america / israel and
those nato allies that are but lapdogs of the former. Moreover, some real
scrutiny of and self-analysis by the aforesaid is in order before purporting to
be advisors to any nation at all. ]
Contours of a large and lasting American presence in Iraq starting to take shape
(Washington Post) [ Wow! Sounds like a plan … though hardly embraced by
all; viz; the vast majorities in Iraq, Afghanistan, and defacto bankrupt
america are against this with dire prospective consequences to follow. U.S.
Promises to be in Afghanistan Beyond 2014 [ Defacto bankrupt america can
over security of the nation to Afghan forces. ]
Concerns rise over Afghan forces (Washington Post) [ Well, to their credit, at
least the Afghans purport to know how to count which of course is
something lost on defacto bankrupt america and so-called ‘coalition’
members. After all, there will come a time when this military apparatus will
say, pay / feed me, at which point the reply will be, with what, at which point,
obfuscated or not, all hell breaks loose. ]
Watchdog over Afghan reconstruction resigns (Washington Post) [ Wow! Sounds

like he really meant business … which also meant, congress ‘hearing
footsteps’ so to speak, that he had to go. After all, applying a stringent
standard that promises to do something about fraud and corruption is a
standard that would threaten the entire u.s. government … all three
branches. ] Arnold Fields, the head of the office charged with investigating
corruption in the multibillion-dollar effort to rebuild Afghanistan has
resigned, the White House said, following congressional demands that he be
replaced.
Communications lay bare Afghan corruption (Washington Post) [ Corruption?

The same, along with the american re-invigorated heroin trade there go
hand in hand. There were no illusions concerning karzai and brother’s ties to
same and the cia and the same also the very reason for choosing him. ‘Tens
of millions of dollars are carried out of Afghanistan each month, with no
telling how much is illicit. The country's dominant money exchange caters to
"narco-traffickers, insurgents, and criminals" also known as the cia and
friends. Come on! Wake up! You’re paying for this and their enrichment.
These revelations confirm the obvious.] WikiLeaks disclosures provide new
details showing how corruption has undermined progress in a country that
is in many ways a 9-year-old project in U.S. nation-(destruction, including
defacto bankrupt america) building. Leaks reveal frustration with Karzai
Inquiry: Troop killed aid worker
Concerns over European defense cuts (Washington Post) [ At some point,

rationality must overcome irrationality; if only necessity being the mother of this
new-found invention (rationality). Interestingly, there was a blip on television
news from a NATO rep talking up the technological / military superiority of NATO
relative to Russia (without whose technological prowess that space station and
crew would literally be lost in space). So take that, literally … and make the cuts
(rational). ] European policymakers say the cuts are necessary given their
financial straits, and that training, not sheer numbers, is what matters in a post-
Cold War world.
Helmand's refugees disheartened by troops (Washington Post) [ ‘Gauge of

success?’ Come on! What success can be had? Greater defacto
bankruptcies for the nato coalition members? More death and destruction?
Even if it were not true (that they are to blame) though I believe it is, the u.s. /
brits / nato will be blamed for even unimprovable scenarios beyond their
scope and control where even pyhric victories are not in the cards (though
that’s all they could possibly have hope for). Indeed, a geopolitical misstep
of monumental proportion for the u.s., Britain, et als. Then there the u.s.
initiated resurgeance of the poppy / heroin production / trade … their raison
d’etre. ] The arid province will be an important gauge of success in the
U.S.-led strategy against the Taliban. But refugees offer a bleak assessment,
blaming insecurity in Afghanistan on the presence of U.S. and British
troops.
How China branded Nobel winner Liu Xiaobo a traitor (Washington Post) [ I am
staunchly anti-communism. That said, it is also true that I’m also against
what pervasively corrupt, meaningfully lawless, defacto bankrupt america
has become; most certainly not a thriving democracy. Though america’s
suppression of speech, cover-ups, etc. ( see RICO case
yofperjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ), are
arguably less direct, indirect, circumlocuted, obfuscated, etc., the same is
very real and one may say the communist Chinese have in essence taken a
page out of america’s playbook. ]
Moscow's unprecedented military deal (Washington Post) [ France should be

praised inasmuch as a strong Russia, and conversely, a weak perpetual war,
war mongering, war crimes, pervasively corrupt nation, america is optimal
for world peace! ]
(12-26-10) I’m constrained to eat crow here, inasmuch as I’ve previously had
negative things to say regarding Time Warner Cable. But, so as not to be
one of those do as I say, but not as I do hypocrites, I must state for the
record here that Time Warner Cable internet is far superior to the att-based
DSL, and that att can’t-do-thing means I’ll be canceling my (jersey / now
dumbya bushie land) att land line (done 12-27-10, along with DSL) which
wasn’t fully functional anyway but had kept same for the listing, and for
internet connection which ultimately required DSL and failed at that.
(12-23-10) MY INTERNET CONNECTION IS DOWN AGAIN AND OF COURSE, I

WILL HAVE MORE TO SAY ABOUT THE PERVASIVELY CORRUPT,
DEFACTO BANKRUPT AMERICAN SCUMBAGS SHORTLY! They will be
sorry they did this … I won’t forget it!
(12-22-10) MY INTERNET CONNECTION IS DOWN SO I’M USING A LOCAL

WORKSTATION COMPUTER AND WILL HAVE MORE TO SAY ABOUT THE
PERVASIVELY CORRUPT, DEFACTO BANKRUPT AMERICAN SCUMBAGS
SHORTLY! They will be sorry they did this … I won’t forget!
Russia: Putin warns of arms buildup (Washington Post) [ Drudgereport: RESET:

PUTIN CRITICIZES USA OVER WIKILEAKS … Putin deserves the greatest
deference in matters of global concern in light of his greater rationality;
america’s self-serving accusations are merely envy and projection /
displacement (in psychoanalytic terms) of america’s pervasively corrupt,
criminal, broken system which is a far cry in reality from defacto bankrupt
america’s propaganda... ]
Foreign-policy setbacks deepen Obama's election wounds (Washington Post)

[ Wobama’s woes are a direct consequence of his perception as being a
teleprompted b*** s*** artist who despite flowery rhetoric, has failed to deliver.
Results count! What you do, not what you say, counts! ] Presidents have often
turned to foreign policy after domestic setbacks - from Ronald Reagan's
Latin American tour and speech calling the Soviet Union the "focus of evil in
the modern world"[if Reagan was alive he’d be eatin’ plenty of crow since
america’s the world’s biggest evil (with a little help from friends, ie., israel,
etc.) with illegal wars, war crimes, torture, financial frauds of global reach,
pervasive corruption in all governmental / judicial processes, etc.] in the
months after his party's 1982 congressional losses to Bill Clinton's escape
to Indonesia and the Phi...
The following youtube video is well worth the look and explains how and
why the frauds on wall street have gotten away with their devastating fraud
thus far. The frauds on wall street et als should be criminally prosecuted,
jailed, fined, and disgorgement imposed. ( UPDATE: MORE CLAIMS OF
RACE BIAS AT JUSTICE... CIVIL RIGHTS PANEL TO PURSUE FED
PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the
handling of a voter intimidation case against the New Black Panther Party
accused his former employer of instructing attorneys in the civil rights
division to ignore cases that involve black defendants and white victims US
v. AZ... Cases against Wall Street lag despite Holder’s vows to target
financial fraud Obama broke promises ):

Trends ]

Who’s Barry Soetoro, wobama? Get your very own BARRY SOETORO T-Shirt and
ask the question, "Where is the Birth Certificate?". The REAL name of
President Barack Obama is BARRY SOETORO so get a t-shirt with a picture
of him on the front and the question, "Where is the Birth Certificate?".
http://infowars-shop.stores.yahoo.net/basot.html Obama’s Comeback
Strategy: Appearing On “The View” Now we know how the President will
turn his flagging political fortunes around… [More b*** s***!].
Is Obama a Marxist? He Works for the Bankers Glenn Beck, the Fox News talking
heads, and no shortage of Tea Party activists like to characterize Barry
Obama as a Marxist.
Poll: Waning support for Obama on wars usa today | Support for Obama’s wars
fell to 36%, down from 48% in a February poll.
President Obama’s Real Name “Barry Soetoro” Tops Google Trends Yet another
search term announced during the Alex Jones Show, “Barry Soetoro” has
topped Google Trends’ hot searches, and that means a boost to exposing
important keys to President Obama’s true history. The #1 search trend
corresponds with a visit to Austin, Texas today from President Barack
Obama, a.k.a. Barry Soetoro.
Barry Soetoro AKA Barack Obama’s Political Dynasty Crashes And Burns While
Barry Soetoro’s family lavish themselves at a luxury Spanish resort amidst
deepening economic turmoil, back home Obama’s political dynasty crashes
and burns as his approval ratings plunge to a record low of 41 per cent with
less than a few months to go before the October midterm elections.
The Fraud Of Barry Soetoro (a.k.a. Barack Hussein Obama) (Feb. 24 ...
February 11, 2009
’Dear Senators and Congressmen:
Thank you for taking the time to review the documentation relevant to the
Constitutional legitimacy of the presidency Barack Obama. There have
been various problems with the vetting of Mr. Obama throughout the
campaign and the present. I’d like to take the opportunity to highlight the
most pertinent and alarming issues that have been clearly revealed. I’m
sure you will agree that this information must be further investigated
promptly before any damage is done to the United States and its citizens
beyond the Constitutional compromises that currently exist. Most
interesting, though, is the fact that Mr. Obama has not simply ordered the
original vault copy of his birth certificate to be sealed and chosen to retain
three (3) law firms to defend the various cases spending a reported
$800,000 (of whose money?). If Mr. Obama has nothing to hide, then why
fight the more than 42 cases in federal courts alone (according to Justia)
and similar number in state courts of which the merits are well-founded
and substantiated through factual evidence, state and federal statutes, and
international laws? Main issue is that the state of HI, according to statue
338 allows Foreign born children of Hawaiian residents to obtain Hawaiian
birth certificates and obtain them based on a statement of one relative only.
There is plenty of evidence of Mr. Obama being born in Kenya and
obtaining his Hawaiian birth certificate based on a statement of his
grandparent only, who simply didn’t want to deal with immigration and not
based on any records from any hospitals. Extensive searches in the State
of Hawaii showed no birthing records for his mother [Stanley] Ann
Dunham in any hospital in Hawaii. … I request all of this information to be
forwarded to the Senate Armed Services Committee, Senate Finance
Committee, Senate Judicial Committee, Mr. Steven Whitlock, director of the
whistle blower office of the IRS, ICE, State Department, and FBI for further
investigation.
Respectfully submitted,
Dr. Orly Taitz, Esq.’
Did Google Block “Barry Soetoro” Search Term? Screenshots obtained by a

Prison Planet reader suggest that Google may have moved to de-list “Barry
Soetoro” as a popular search term shortly after it rose to the top of the Google
Trends charts after yesterday’s effort by radio talk show host Alex Jones to focus
attention on Barack Obama’s real name.
Iran struggling to contain computer virus (Washington Post) Iran suspects that a
foreign organization or nation designed the "Stuxnet" computer worm.
[ Look westward (plus israel) , but not homeward, Angel … Riiiiight! Riiiiight!
Riiiiight! Stuxnet False Flag Launched For Web Takeover Israel and the
United States have emerged as the prime suspects behind the Stuxnet worm
attack, which has infected the Iranian nuclear plant at Bushehr, following the
discovery that a “wealthy group or nation” must have been responsible for
the malware assault. Drudgereport: WORM HITS IRAN NUKE PLANT...
...new versions of virus spreading Pentagon silent... ]
'We need to trust each other' (Washington Post ) [ Yeah! That’s leader of nations
Turkey ‘talking turkey’ while the israelis, with a plethora of illegal nukes,
casually as if by some unbenounced entitlement, say that they won’t sign
the Non-proliferation Treaty because it’s not in their interest to do so. You
can’t make this stuff up; yet, there’s bewilderment as to why the u.s., mid-
east, and world are in such a deplorable and chaotic state. ]A23 (Post)
...with the United States, Israel and Iran. Excerpts: Q...is also party to the
Non-Proliferation...
Bush's fantasy world (Washington Post) [ I’m frankly surprised to see cohen bite
the hand that feeds zionists( ie., dumbya bush, et als). After all, I’ve never seen
cohen not like a pro israel policy, regardless of the cost to this nation in blood,
sweat, tears, and geopolitical and general decline, particulary economic /
financial; nor like a pro-american policy that negatively impacts israel. I think
america particularly, and the rest of the world has sacrificed enough for the
greedy, blood-thirsty, lawless israelis. ] Cohen: WikiLeaks shows the unreality of
a presidential memoir. Jeffrey Smith: Fighting leaks
Palestinians counter israeli offer on settlements (Washington Post) [ The

Palestinians, unlike the lawless israelis are cognizant of u.n. resolutions, prior
accords, international law, etc., in their proposal. ] Israeli prime minister offers
conditional settlements freeze (Washington Post ) [ Déjà vu all over again? Now
why is there a familiar ring to this story … maybe ‘cause of the ‘been there done
that ‘ reality. It’s really quite incredible since israel’s in violation of u.n.
resolutions (242, 338, etc.), international law, nuclear proliferation treaty, a drain
on the the u.s. globally / domestically, etc.. The u.s. / international community
should impose a resolution. ]
Arab League backs Palestinian refusal on talks unless Israel halts West Bank
settlements (Washington Post) [ Lots of backslappin’ in israel mission
accomplished … yeah, another fine mess they’ve gotten the world into …
another set of peace talks down the drain, again sabotaged by the israelis …
not that the israelis had anything in mind other than literally … to talk … out
of both sides of the mouths. ]
Israel plans housing in East Jerusalem (Washington Post) [netanayahu ‘cause

everyone knows nuclear israel is greatest danger to world Jerusalem Post
PM heckled repeatedly by activists at New Orleans GA protesting West Bank
"occupation" and plans for loyalty oath. Israel is the greatest threat to the
world, and its nuclear program must be stopped, Prime Minister ... US
'Deeply Disappointed' but committed to impotence by israel's Building Plan
for East Jerusalem Voice of America Israel permits new settlement homes
Aljazeera.net ] The move will likely complicate pm netanayahu's current visit
to the United States for talks about reviving stalled peace negotiations with
the Palestinians.
Israel: Defining 'Jewish state': For many, term has different meanings
(Washington Post) [ Well ain’t that the truth! As per Forrestal’s warning (infra), it
meant new york, pennsylvania, and California … for the greedy zionist israelis it
means anything they want it to mean, borders, laws, u.n. resolutions, civilized
behavior, etc., be damned! ]
Clinton wraps up Israeli, Palestinian talks - for now (Washington Post) [ That’s a
wrap (Hollywood speak), or just a lot of crap (reality). Well some celluloid
facetime (hill, I said celluloid, not cellulite), appearance of doing something (not).
U.S. urges Arab states to drop israel nuclear treaty demand Reuters Oooooh!
Wow! Sounds like a plan! … For world conflagration … Another step toward
nuclear prone middle east … israel should be exempt because ….. ‘US – Israel’s
partner in crime, not a referee’ … You really can’t make this stuff up; the
preposterous s*** coming out of america! ]The U.S. envoy to the UN atomic
watchdog urged Arab states to withdraw a resolution calling on Israel to sign an
anti-nuclear arms treaty, warning it would send a negative signal to Middle East
peace talks. Israelis, Palestinians already broaching tough topics in talks,
envoy says (Washington Post) ‘US – Israel’s partner in crime, not a referee’
(Infowars.com) Israeli and Palestinian leaders are holding a new round of direct
talks. Bombshell: Barack Obama conclusively outed as CIA creation Wayne
Madsen | Investigative journalist Wayne Madsen has discovered CIA files that
document the agency’s connections to the lives of Barack Obama and his
mother, father, grandmother, and stepfather. ] RAMALLAH, WEST BANK -
Secretary of State Hillary Rodham Clinton on Thursday wrapped up three days of
intense Middle East diplomacy that produced good atmospherics but no sign that
an impasse over Israeli settlement construction has been resolved. (Alex
Brandon - AP)
The unlikely face of Egypt's protesters (Washington Post) [ Unlikely? … I don’t

think so in light of the strength and prevalence of the ‘anyone but mubarak (and
his)’ sentiment. ] Mohamed ElBaradei, the Nobel Prize-winning former United
Nations bureaucrat, has emerged this week as an improbable revolutionary,
clamoring for the overthrow of Egypt's President Hosni Mubarak.
Iran's Khamenei says uprisings represent 'defeat' for U.S. (Washington Post) [ No
matter how you slice it, dice it, or euphemise about it, these are indeed
substantial, irrevocable losses for the u.s.; but importantly, of america’s own
making; self-defeat if you will, compounded by a slew of bad choices. Sadly,
Ayatollah Ali Khamenei is quite correct when he states: "The Israelis and the U.S.
are more concerned about what would happen to their interests in a post-
Mubarak regime." … and further, ‘He also accused the United States of propping
up corrupt leaders in the region to protect its interests and those of its ally israel.’
Unfortunately, as has become chrystal clear from america’s perpetual war in the
region, the people have invariably figured last in america/israel’s unbalanced
equations. ]
Spreading unrest raises pressure on Mubarak (Washington Post) An array of new

developments turned against President Hosni Mubarak on Wednesday as
Egypt moved closer to a full rupture between its autocratic government and
a growing popular rebellion. [ Do not talk about ruptures in the presence of
Pharhosni Mubarak he chides the Washington Post! After all, at 82 years old
and 30 years in power, hernias are known to quite easily happen… Previous:
Free elections still distant prospect for Egypt Activists express doubts
about feasibility of September ballot (Washington Post) ["I'm shocked by
what the Americans say - that Mubarak must stay as president so we can
prepare for new elections,'' said Negad El Borai, a human rights advocate
and lawyer in Cairo. "Mubarak must leave, and then we can talk." … Truth be
told, I’m not shocked. Indeed, though this is only marginally what america /
israel wanted, this will stick to america / israel like glue; that proverbial
albatross; that lose, lose scenario for america in the region. Previous: Egypt
protests continue as Mubarak's government offers concessions
(Washington Post) [ Come on! Let not all of us join america’s / israel’s, et
als, and mubarak’s delusions. After all, here’s an 82 year old tyrant, in
power for 30 years, yet in some parallel universe appears to think he’s
calling the shots. Other than literal and quite foolish shots against
Drudgereport: Soros: 'The main stumbling block is Israel'...
} ]
] After decades of repression, democracy advocates say it could take many
months -- if not years -- to lay groundwork for open and credible elections.
]
Julian Assange must be extradited to Sweden (Washington Post) [ Julian

Assange to be extradited to Sweden Infowars.com [ No surprise here. As I’ve
previously written, I’m against the censorship since one always, in the final
analysis, must discern truth from falsehood, information from disinformation,
reality from propaganda. In truth, I found it somewhat shocking and more than
surprising that of all places ‘to escape to’, Assange chose Orwellian england,
puppet to the u.s. and guarantor of servility to u.s./zionist interests, such is their
own desperate circumstances. What was he thinking? ] WikiLeaks founder
Julian Assange is to be extradited to Sweden to face allegations of rape and
sexual assault. Assange will appeal, his legal team confirmed. If this is
unsuccessful, he will be extradited to Sweden in 10 days. ] LONDON - Britain will
honor Sweden's request to extradite WikiLeaks founder Julian Assange to face
sex-crime allegations, a British judge ruled Thursday.
16 miles away, Saudi Arabia's watchful eye looms over Bahrain unrest
(Washington Post) [ I’m sure they are … with a microscope at that. Saudis
Worried Protests Will Hit Home - saudi arabia; talk about do nothing hypocrites.
How does one family claim ownership of all the oil reserves of a sovereign
nation; I suspect only when foreign corporations say so For the sake of the saudi
Arabian people, more than just protests should come to fruition! ] AFP | Saudi
royal warns Arab world uprisings could cause harm unless they reform. Bahrain
authorities launch surprise attack on protesters [There’s the america and saudi
Arabia effect; far less than democratic and far more deadly in the mideast among
other places; talk about hypocrites. How does one family claim ownership of all
the oil reserves of a sovereign nation as the saudis; time for the saudis to go the
way of dictator Mubarak and take the war criminal americans with them. ] Los
Angeles Times Tear gas canisters bombard sleeping protesters in Manama's
Pearl Square. At least two men are reported killed Video: Bahrain protesters
look to emulate Egypt revolt euronews Riot Police Attack Bahrain Protesters
Voice of America ‘Saudi Arabia sending troops to Bahrain’ Saudi Arabia is
sending troops to Bahrain in a move to crack down on pro-democracy protesters
who took to the streets in the capital Manama, a political analyst says. [SAUDIS
TOLD OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing
footsteps…Previous: Egyptian capital teeters on anarchy Mubarak asks cabinet
to resign as anti-regime protests intensify (Washington Post) [ Mubarak should
fails to silence Egypt protests (AP) - ]
I’m truly sorry that Kelly lost a son to war, but along with the multitude of civilians
in the nations unlucky enough to provide a source of corporate welfare to the
the false propaganda. ]
Imams wage political battle against U.S. (Washington Post) [ Yeah! Are not these
native Afghans freedom fighters in the highest, truest, and most noble sense of
the term. I mean, pervasively corrupt / defacto bankrupt america’s destructive and
corrupting influence is unequivocal (including the resurgent heroin trade that had
all been eradicated by the Taliban). This unlawful incursion is a lose, lose
scenario for all parties; and, america’s / israel’s / nato’s zionist aspirations in the
region are among the most self-destructive, self-defeating policies in world
history. ] For the U.S. government, and for the 100,000 American troops fighting
in Afghanistan, the messages delivered last Friday could hardly have been worse.
including an alternate reality that defies credulity, rationality, and facts; such as,
a self-rationalizing greed, anti-arab / anti-Christian predisposition and the
‘Oedipal Effect’ (blowback) engendered thereby. No, Johnny Carson was not anti-
semitic (Fred Silverman), same for Charlie Sheen (Chuck Lorre), etc. (the list is
endless inasmuch as when facts are not on their side, such specious
inflammatory arguments as ‘anti-semitism’, prejudice, are a convenient
subterfuge distracting from their weak position; ie., illegal nukes, war crimes,
ignoring u.n. resolutions, ie., 242, 338, etc., ignoring international law. At best, no
… God did not give them this land … at worst, God took the land back when they
with roman muscle crucified Christ. Balfour was an arbitrary, incompetent, british
joke.). ]
U.S. vetoes Security Council resolution denouncing Israeli settlements

(Washington Post) [ Drudgereport: Hillary Clinton: Israeli Settlements
'Illegitimate'… [We know that hill … We’ve known that for quite some time along
with their illegal nukes, war crimes, etc…The whole world knows that hill… so
don’t just talk about it … DO SOMETHING! ] ... Yes! … in pervasively corrupt,
defacto america’s self-defeating, self-destructive way they are doing something
… U.S. vetoes Security Council resolution denouncing Israeli settlements …
Sounds like a plan! … right! … for self-destruction! ] Sallai Meridor: Israel's
fear (Washington Post) [ Come on! Wake up! Illegal nuke totin’, war crimes nation
israel’s fears … p l e a s e, spare me the pro-israeli b*** s*** ! What israel fears is a
projection of their own ill-founded motives and actions for which all norms, rules,
laws governing civilized behavior are suspended for expedience at the least, and
blood-thirst that some posit as a remnant of their historic role as Christ-killers
(with roman ‘juice’). Isn’t it time, in these desperate times for america, to put
america’s, not israel’s interests, first. Who cares what israel fears … In 1948, U.S.
Secretary of Defense James Forrestal, an opponent of the creation of a Jewish
state in Palestine, warned that, even though failure to go along with the Zionists
might cost President Truman the states of New York, Pennsylvania, and
California, it was about time that somebody should pay some consideration to
whether we might not lose the United States….. Mr. Forrestal was absolutely
correct! Isn’t that exactly what’s happened to defacto bankrupt america in
intractable decline. TIME TO REVOKE AND NULLIFY THE BALFOUR
DECLARATION AND ABROGATE THE CREATION OF THE NATION STATE OF
ISRAEL IN THE INTERESTS OF FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE
PROSPERITY FOR THIS WORLD! Israel wary of transition in Egypt, concerned
about regional stability (Washington Post) [ Who cares what the paranoid, war
criminal, illegal nuke totin’, war criminal israelis are wary of. This country has
gone down the tubes cow-towing to the paranoid, self-interested concerns of the
psycho / sociopathic zionist israelis who are forever projecting their own
pathological motives to every turn of history while ignoring their own culpability
in producing the very outcomes they purportedly seek to avoid. War, conflict,
greed, bloodshed is the historically based israeli way. ] A resurgent Syria alarms
u.s., israel (Washington Post) [ Tell me! What doesn’t alarm these two paranoid,
zionist neo-nazi regimes of oppression, suppression, aggression, and regression.
If they were individuals, they’d undoubtedly be diagnosed as psychopaths,
sociopaths totally ignorant of the rights of others, laws, civilized behavior as
israel pads her illegal nuke arsenals with american supplied weaponry / support
while expecting all other nations to ‘role over and die’. Bipolar / manic /
depressive, the ups and downs are increasingly difficult for even americans to
follow. Obssessive / compulsive thy names are zionist israel / america. Projection
/ displacement regarding their own illegal acts, war crimes, etc.; what they
distinguished from what they do … dissociative identity disorder, dissociative
fugue? Yes … the u.s. and israel are the world’s lunatics, sorely in need of
therapy! ] Syria's fresh interference in Lebanon and its increasingly
sophisticated weapons shipments to Hezbollah have alarm officials and prompt
Israel's military to consider striking a Syrian weapons depot.
Peter King, IRA supporter and enthusiastic counter-terrorism advocate

(Washington Post) [ A neocon; a zionist with a large jewish constituency; an IRA
terrorist supporter; looks a lot like, bears a striking resemblance to, corrupt dodo
dodd former Conn. Senator; in sum, that can’t be good. Maybe he suffers from a
multiple personality disorder. I mean … wow! Whew! ]
NATO troops kill Karzai's cousin in botched raid, Afghans say (Washington Post)
[ ‘All the right moves’. Right, right, right! Righto!…Riiiiight! Winning those
hearts and minds; or as Charlie Sheen would say … duh … winning! Whew!
U.N. alarmed by surge in civilian casualties in Afghanistan (Washington
Post) [ No, gates has already addressed that … minor setbacks, says he …
Turmoil jars U.S. counter-terror efforts (Washington Post) [ Now how does
this come as a surprise to anyone? Beyond america’s propaganda machine,
Violent spring looming in Afghanistan (Washington Post) [ See … something to
look forward to … must be that good news that keeps getting pushed back … and
spring no less … everything blooming, or in war criminal american-speak …
‘booming’ … but not the defacto bankrupt american economy for which a crash is
‘looming’. Could somebody help me out with a translation of gates’ speech a west
point … I must be missing something … Lt. Gen. John Kelly, who lost son to war,
says U.S. largely unaware of sacrifice (Washington Post) [ I disagree! They are
very much aware; as they stand in unemployment lines, use food stamps to get
by, etc.. I hate to sound cavalier and I’m sorry that Kelly lost a son to war, but
along with the multitude of civilians in the nations unlucky enough to provide a
source of corporate welfare to the military industrial complex and war profiteering
for the few (as warned against by President General Eisenhower), they died for
nothing, for no good reason beyond the false propaganda. Six NATO troops
Like Iraq and Afghanistan New York Times [ Better said, than unsaid; but,
the messenger … things could have been different! ] ] American military
officials expect that the Taliban will mount a campaign to regain ground lost to
U.S. troops last year and use suicide bombing teams to strike at those associated
with the Afghan government or coalition forces.
NATO endorses plan for Afghan forces to take over several areas (Washington
Post) [ Yeah! Sounds like a plan … if the several areas encompass the entire
nation; and, nato quits their foolishness in wasting money they don’t have for the
sake of the military industrial complex, war profiteers, thieves, and (nato) heroin
dealers. ]
Karzai condemns deadly NATO airstrike (Washington Post) [ Well, for pervasively
corrupt, defacto bankrupt america, it’s just another of many war crimes. They just
role out the propaganda machine that no one is buying anymore. Yet, can you
believe your eyes and ears here: Six NATO troops killed in Afghanistan
(Washington Post) [ Is there something wrong with the following picture? … am I
missing something? … Gates's warning: Avoid land war in Asia, Middle East,
and Africa Christian Science Monitor - In a speech to cadets at the United States
could have been different! ] A NATO airstrike that Afghan officials said killed
nine children collecting firewood in eastern Afghanistan beccomes the latest
irritant in the tense relationship between President Hamid Karzai and the
international force in the country.
Turmoil jars U.S. counter-terror efforts (Washington Post) [ Now how does this
come as a surprise to anyone? Beyond america’s propaganda machine,
U.N. confirms probe into allegations of torture by Gaddafi's forces (Washington

Post) [ Well we all know how effective the u.n. has been in enforcing the mandate
against torture / war crimes in light of their stern rebuke / sanctions / action
against the u.s. / israel … riiiiight! http://albertpeia.com/evilonthetarmac.htm ]
Accountability is unclear in israeli probe of flotilla raid (Washington Post) Oh,

come on! An israeli probe of an israeli massacre of civilians. Time for israel to
pay; for illegal nukes, for violations of international law, for continued violations
of u.n. resolutions, for provocations as pretexts to sabotage peace talks, and on
and on ad nauseum. Why does america among other nations feel compelled to
sacrifice themselves for the sake of a global criminal nation with an insatiable
greed and blood-thirst as israel?
Murder on the high seas JERUSALEM: Israeli marines stormed aid ships bound
for Gaza on Monday and at least 10 rights activists were killed, triggering a
diplomatic crisis and an emergency session of the UN Security Council.
European nations, as well as the United Nations and Turkey, voiced shock
and outrage at the bloody end to the international campaigners' bid to break
Israel's blockade of the Gaza Strip
How does anyone take the u.s. seriously in light of their credibility problems, war
crimes, etc.? What nuke technology israel didn’t steal from the u.s., the u.s.
gave them along with missile, armaments, etc.. and paid for with taxpayer
money that u.s. taxpayers and the defacto bankrupt nation don’t have.
It's time to expel israel from the UN Without doubt, the israeli attack on the Gaza-
bound "Freedom Flotilla" in the dawn of Monday, May 31, 2010 is one of the
most savage crimes in recent history. It seems the ruling power in Tel Aviv
has been afflicted with a variant of mad cow disease; otherwise, how could it
be so cruel to unleash such a beastly raid on the "Mavi Marmara," the
Turkish flagship of a flotilla carrying medical and humanitarian supplies to
the hapless people of Gaza Strip?
The israeli Spin-Machine in Overdrive: dershowitz to the Rescue? Armed Israeli

commandos, the elite of the elites, rappelled to the deck of a Turkish ship carrying
humanitarian relief supplies to the 1.5 million prisoners in the Gaza concentration camp.
Bombs more lethal than in Dec. 25 attempt (Washington Post) [ Truth be told,
there’s no shortage of pre-election skepticism … ] The package bombs
discovered on cargo flights last week contained far more explosive material
than the device that the alleged underwear bomber planned to use last
Christmas to down a Detroit-bound jetliner, officials said. [Did Obama Order
British Authorities To Find Non-Existent Ink Bomb? Paul Joseph Watson |
Only after President’s speech did East Midlands security officials reverse
earlier announcement that suspicious device was a dud..
The Cult Of Obama Crashes And Burns Steve Watson | The hope has gone, the
change never came – now people are just pissed off.
Toner Bomb Plot Used to Empower CIA Kurt Nimmo | Absurd toner bomb plot
provides excuse to rationalize the global reach of the CIA into Arabian
peninsula.
CIA Stooge Awlaki Prime Suspect Behind Plane Bomb Plot Paul Joseph Watson |
Evidence screams “false flag” as authorities seek to crush resistance against
invasive airport security measures, while Obama exploits event for domestic and
geopolitical gain.
Israel Knew About Toner Bomb Plot Before Devices Were Found Transportation
minister hints state knew about mail terror plot before it was publicly
revealed Friday. ‘Since Thursday Israeli representatives have been securing
shipments to Israel from airports worldwide,’ he says.
Did Obama Order British Authorities To Find Non-Existent Ink Bomb? After
having examined the suspicious ink toner device for six hours and found it to be
a dud, bomb experts at East Midlands Airport only reversed their decision after
being ordered to re-inspect the package by US authorities following President
Obama’s Friday afternoon speech in which he claimed that the devices did in fact
contain explosives.
Toner Bomb Plot Used to Empower CIA In addition to adding new urgency and a
fresh dose of hysteria to the flagging war on manufactured terror, the toner bomb
plot has provided an excuse to rationalize the global reach of the CIA.
No U.S. Commercial or Private Plane left Yemen to the U.S. over last 48 hours;
Yemeni Official A Yemeni official told Yemen Post that no U.S. cargo aircraft
of any American company flew out of Yemen over the last 48 hours.
Yemen Insists No Packages Sent 48 Hours Prior to Toner Bomb Hysteria Kurt
Nimmo | As usual, the government has not done a very good job of making the
latest al-CIA-duh plot credible.
Obama ‘Fake Terror’ Alert Story Hits #1 on Google Efforts to warn the population
that the Obama Administration, like the Bush Administration before it, has
engaged in issuing fake terror alerts has gone viral, with the search term
“fake terror” reaching #1 on Google Trends. It is yet another success in the
Infowar, initiated on the Alex Jones Show.
Obama Issues Fake Terror Alert On Eve Of Elections As we predicted on four

separate occasions would happen, the Obama White House has deliberately
contrived a fake terror scare on the eve of the mid-term elections in an effort to
subdue the rampaging political appetite for anti-big government candidates that
threatens to sweep aside establishment incumbents next week. ]
Obama: Suspicious packages are a 'credible terrorist threat' (Washington Post)

[October surprise anyone … still October … trick or treat … there are skeptics …
then there are some who’ll say … just jewish synagogues, no big deal … nothing
of strategic value … healthy dose of skepticism … Obama ‘Fake Terror’ Alert
Story Hits #1 on Google Aaron Dykes Infowars.com October 29, 2010 Efforts to
warn the population that the Obama Administration, like the Bush Administration
before it, has engaged in issuing fake terror alerts has gone viral, with the search
term “fake terror” reaching #1 on Google Trends. It is yet another success in the
Infowar, initiated on the Alex Jones Show. As we are just days out from the 2010
midterm elections, voters must realize that the establishment has willfully
engaged in hyping up false alerts to scare the public into believing that we are
under siege by potential terrorist acts at all moments. Various “officials” have
been warning that an attack is likely to occur for weeks now, and it is no surprise
to see the Obama Administration trying to use the fear to its advantage. Recall
that Obama advisor and former top Clinton official, Robert Shapiro, alluded to the
idea that only a terror attack could save Obama’s presidency earlier in the year.
“The bottom line here is that Americans don’t believe in President
Obama’s leadership,” said Shapiro, adding, “He has to find some
way between now and November of demonstrating that he is a leader
who can command confidence and, short of a 9/11 event or an
Oklahoma City bombing, I can’t think of how he could do that.”
Read the original story by Paul Joseph Watson here, as it has been updated.
The general scare of the fake terror alert is all the more alarming, as President
Obama has gone on to contradict announcements from his own
administration, claiming that the suspicious package “did apparently
contain explosive material” in a press conference. This, after it was already
admitted the suspicious package, which originated from the UK, was
harmless and contained no explosives Obama Issues Fake
Terror Alert On Eve Of Elections Paul Joseph Watson | Establishment media
fearmongers about “mail bomb plot” despite no bombs being found.
Corporate Media On High Alert Over “Manipulated” Toner Cartridge On UK
Plane Kurt Nimmo | Officialdom and authorities jack up the scary pre-election
rhetoric ]
GOP's Palin paradox (Washington Post) Parker: She's too powerful to ignore, and
too (fill-in-the-blank) to take seriously. [ Say it! … Dumb! … Everybody knows it!
… Cher even said it! … I believe that this further evinces the leadership vacuum
in america and is a testament to how unequivocally far america has fallen.
Powerful? I don’t think so! ]
Sarah Palin: The Next Teleprompter Reader in the White House [ Not gonna’
happen … she’s just too embarrassingly dumb … and all that fake macho /
zionist b*** s*** … unless her gal o’donnel casts a spell … which is a whole new
ball game … witches … really … how ‘bout dumb *******s …. she’s really dumb
enough to press the button. ] ? Kurt Nimmo | In 2008, Tea Party Sarah trekked to
New York to kiss Henry Kissinger’s ring.
Sarah Palin: The Next Teleprompter Reader in the White House? [ Not gonna’
happen … she’s just too embarrassingly dumb … unless her gal o’donnel casts
a spell … which is a whole new ball game … witches … really … how ‘bout dumb
*******s ... and all that fake macho / zionist b*** s*** ... she’s really dumb enough to
press the button. ] It looks like the establishment is grooming Tea Party Sarah for
a run. She says as much in the Newsmax interview below.
Palin calls reporters 'impotent' and 'limp' (Washington Post) [ I must reiterate,
she, palin’s so embarrassingly dumb! She truly is the joke that keeps on giving! I
really mean it! I mean, what next? ] The former Alaska governor weighed in
herself: "Those who are impotent and limp and gutless and they go on their
anonymous -- sources that are anonymous -- and impotent, limp and gutless
reporters take anonymous sources and cite them as being factual references,"
she told Sean Hannity. "It just slays me ( this could be a somewhat Freudian slip
as she contemplates the uselessness of sexually non-interested reporters while
she meant lays and I think her supposed / purported attractiveness / desirability
is vastly overstated; but, this makes for great SNL skits; you know, those
reporters not man enough to service her ) because it's so absolutely clear what
the state of yellow journalism is today that they would take these anonymous
sources as fact."
The power of Palin's touch (Washington Post) [Wow! Talk about stupid. Murphy
could have eliminated the middle-man (person) and appeared on SNL himself;
maybe reprising a familiar (Eddie) Murphy role as Gumby 2, Son of Gumby. The
only thing funnier is palin herself. She’s so embarrassingly dumb!] .Endorsement
lifts little-known candidate in Md., giving the struggling campaign a
"megaphone."
Comment on: 5 Myths about Sarah Palin at 10/14/2010 9:39 PM EDT

Test yourself to find out how much you know about Sarah Palin. Take the quiz
and after, check out The Washington Post's 'Five Myths about Palin.' (Washington
Post) [ Geeh! I scoured the quiz / 5 myths and nowhere did I see the obvious
myth; viz., that she really has a brain. Maybe gal pal pol protégé o’donnell can
help her out … a few mysterious words, a slimy newt (gingrich) in a caldron of
b*** s*** , and voila … a new reality which is what o’donnell herself is sorely in
need of … O'Donnell, evolved Milbank: She didn't mention mice with human
brains in Wednesday's debate. But she said silly things. Stromberg: O'Donnell
is... wow The CNN host, moderating the long awaited Delaware senatorial debate
Wednesday night, was trying to get the Republican nominee to talk about her
1998 statement on the Bill Maher show that "evolution is a myth."
"Do you believe evolution is a myth?" Blitzer asked.
"I believe that the local ... " O'Donnell began, then started anew. "I was talking
about what a local school taught, and that should be taught, that should be
decided on the local community."
"Do you believe evolution is a myth?" the moderator repeated.
"Local schools should make that decision."
"What do you believe?"
"What I believe is irrelevant."
"Why is it irrelevant? Voters want to know."
"What I will support in Washington, D.C. is the ability of the local school system
to decide what is taught in their classrooms," O'Donnell repeated.
The answer, though, was obvious: Of course she believes in evolution; she is a
product of evolution herself. She has evolved from a very odd woman who spoke
about the evils of masturbation and of mice with fully functioning human brains
and of her experience in sorcery (but she didn't join a coven!). …
Obama creates indefinite detention system for prisoners at Guantanamo Bay

(Washington Post) [ Sounds more like fellow failed president/war criminal
dumbya bush every day. Meanwhile, back at the pervasively corrupt, defacto
bankrupt american credit farm (totalitarian communist china): New restrictions on
foreign journalists Under rules announced after foreign journalists were
physically harassed by security officers, foreign journalists must have
government permission to interview anyone in a public area.]
In interview, Bush defends Iraq war and waterboarding (Washington Post)

[ Defending the indefensible … what choice does he have … then there’s the
lies … ] Bush breaks silence, writes next chapter (Washington Post) [ As a
failed president and war criminal himself, moron dumbya bush is among the
few in the world that makes failed president wobama look plausibly good in
comparison … wobama merely continued the failed policies of dumbya
(perpetual war, no pros the frauds on wallstreet, etc.) that got pervasively
corrupt, defacto bankrupt america to this point of decline and failure. ]
Anne E. Kornblut Your take: His most memorable moment? [ Like regrets
in that old song (his way) he’s had a few –
http://albertpeia.com/evilonthetarmac.htm here’s a few: bushisms from
bush the brain-damaged moron http://albertpeia.com/bushisms.htm :
"After standing on the stage, after the debates, I made it very plain, we will not have an all-
volunteer army. And yet, this week—we will have an all-volunteer army. Let me restate
that."—Daytona Beach, Fla., Oct. 16, 2004
"The CIA laid out several scenarios and said life could be lousy, life could be OK, life could
be better, and they were just guessing as to what the conditions might be like."—New
York, Sept. 21, 2004
"Free societies are hopeful societies. And free societies will be allies against these hateful
few who have no conscience, who kill at the whim of a hat."—Washington, D.C., Sept. 17,
2004 (Thanks to David Stanford.)
"That's why I went to the Congress last September and proposed fundamental—
supplemental funding, which is money for armor and body parts and ammunition and
fuel."—Erie, Pa., Sept. 4, 2004
"Too many good docs are getting out of the business. Too many OB/GYN's aren't able to
practice their love with women all across the country."—Sept. 6, 2004, Poplar Bluff, Mo.
"They've seen me make decisions, they've seen me under trying times, they've seen me
weep, they've seen me laugh, they've seen me hug. And they know who I am, and I believe
they're comfortable with the fact that they know I'm not going to shift principles or shift
positions based upon polls and focus groups." —Interview with USA Today, Aug. 27, 2004
"I didn't join the International Criminal Court because I don't want to put our troops in
the hands of prosecutors from other nations. Look, if somebody has done some wrong in
our military, we'll take care of it. We got plenty of capability of dealing with justice."—
Niceville, Fla., Aug. 10, 2004
"So community colleges are accessible, they're available, they're affordable, and their
curriculums don't get stuck. In other words, if there's a need for a certain kind of worker, I
presume your curriculums evolved over time."—Niceville, Fla., Aug. 10, 2004
"Tribal sovereignty means that, it's sovereign. You're a—you've been given sovereignty,
and you're viewed as a sovereign entity. And, therefore, the relationship between the
federal government and tribes is one between sovereign entities."—Washington, D.C., Aug.
6, 2004
"Secondly, the tactics of our—as you know, we don't have relationships with Iran. I mean,
that's—ever since the late '70s, we have no contacts with them, and we've totally sanctioned
them. In other words, there's no sanctions—you can't—we're out of sanctions."—
Annandale, Va., Aug. 9, 2004
"I mean, if you've ever been a governor of a state, you understand the vast potential of
broadband technology, you understand how hard it is to make sure that physics, for
example, is taught in every classroom in the state. It's difficult to do. It's, like, cost-
prohibitive."—Washington, D.C., June 24, 2004 (Thanks to Michael Shively.)
"Our enemies are innovative and resourceful, and so are we. They never stop thinking
about new ways to harm our country and our people, and neither do we."—Washington,
D.C., Aug. 5, 2004 (Thanks to Alicia Butler.)
"And I am an optimistic person. I guess if you want to try to find something to be
pessimistic about, you can find it, no matter how hard you look, you know?"—Washington,
D.C., June 15, 2004 (Thanks to Robert Irwin.)
"[A] free Iraq is essential to our respective securities."—Washington, D.C., June 1, 2004
"I want to thank my friend, Sen. Bill Frist, for joining us today. … He married a Texas
girl, I want you to know. (Laughter.) Karyn is with us. A West Texas girl, just like me."—
Nashville, Tenn., May 27, 2004
"I'm honored to shake the hand of a brave Iraqi citizen who had his hand cut off by
Saddam Hussein."—Washington, D.C., May 25, 2004
"This has been tough weeks in that country."—Washington, D.C., April 13, 2004 (Thanks
to David Huddleston.)
"[B]y the way, we rank 10th amongst the industrialized world in broadband technology and
its availability. That's not good enough for America. Tenth is 10 spots too low as far as I'm
concerned."—Minneapolis, Minn., April 26, 2004
"My job is to, like, think beyond the immediate."—Washington, D.C., April 21, 2004
"This is historic times."—New York, N.Y., April 20, 2004
"Obviously, I pray every day there's less casualty."—Fort Hood, Texas, April 11, 2004
(Thanks to Pat Gallagher.)
"Recession means that people's incomes, at the employer level, are going down, basically,
relative to costs, people are getting laid off."—Washington, D.C., Feb. 19, 2004 (Thanks to
Garry Trudeau.)
"God loves you, and I love you. And you can count on both of us as a powerful message
that people who wonder about their future can hear."—Los Angeles, Calif., March 3, 2004
(Thanks to Tanny Bear.)
"The march to war affected the people's confidence. It's hard to make investment. See, if
you're a small business owner or a large business owner and you're thinking about
investing, you've got to be optimistic when you invest. Except when you're marching to
war, it's not a very optimistic thought, is it? In other words, it's the opposite of optimistic
when you're thinking you're going to war." —Springfield, Mo., Feb. 9, 2004 (Thanks to
Garry Trudeau.)
"See, one of the interesting things in the Oval Office—I love to bring people into the Oval
Office—right around the corner from here—and say, this is where I office, but I want you
to know the office is always bigger than the person."—Washington, D.C., Jan. 29, 2004
(Thanks to Michael Shively.)
"More Muslims have died at the hands of killers than—I say more Muslims—a lot of
Muslims have died—I don't know the exact count—at Istanbul. Look at these different
places around the world where there's been tremendous death and destruction because
killers kill."—Washington, D.C., Jan. 29, 2004 (Thanks to Michael Shively.)
"In an economic recession, I'd rather that in order to get out of this recession, that the
people be spending their money, not the government trying to figure out how to spend the
people's money."—Tampa, Fla., Feb. 16, 2004
"King Abdullah of Jordan, the King of Morocco, I mean, there's a series of places—Qatar,
Oman—I mean, places that are developing—Bahrain—they're all developing the habits of
free societies."—Washington, D.C., Jan. 29, 2004
"But the true strength of America is found in the hearts and souls of people like Travis,
people who are willing to love their neighbor, just like they would like to love
themselves."—Springfield, Mo., Feb. 9, 2004 (Thanks to George Dupper.)
"My views are one that speaks to freedom."—Washington, D.C., Jan. 29, 2004
"In my judgment, when the United States says there will be serious consequences, and if
there isn't serious consequences, it creates adverse consequences."
"There is no such thing necessarily in a dictatorial regime of iron-clad absolutely solid
evidence. The evidence I had was the best possible evidence that he had a weapon."
"The recession started upon my arrival. t could have been—some say February, some say
March, some speculate maybe earlier it started—but nevertheless, it happened as we
showed up here. The attacks on our country affected our economy. Corporate scandals
affected the confidence of people and therefore affected the economy. My decision on Iraq,
this kind of march to war, affected the economy."—Meet the Press, Feb. 8, 2004
"I was a prisoner too, but for bad reasons."—To Argentine President Nestor Kirchner, on
being told that all but one of the Argentine delegates to a summit meeting were imprisoned
during the military dictatorship, Monterrey, Mexico, Jan. 13, 2004
"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004
(Thanks to Lewell Gunter.)
"Just remember it's the birds that's supposed to suffer, not the hunter."—Advising quail
hunter and New Mexico Sen. Pete Domenici, Roswell, N.M., Jan. 22, 2004
"One of the most meaningful things that's happened to me since I've been the governor—
the president—governor—president. Oops. Ex-governor. I went to Bethesda Naval
Hospital to give a fellow a Purple Heart, and at the same moment I watched him—get a
Purple Heart for action in Iraq—and at that same—right after I gave him the Purple
Heart, he was sworn in as a citizen of the United States—a Mexican citizen, now a United
States citizen."—Washington, D.C., Jan. 9, 2004
"I want to thank the astronauts who are with us, the courageous spacial entrepreneurs who
set such a wonderful example for the young of our country."—Washington, D.C., Jan. 14,
2004
"And if you're interested in the quality of education and you're paying attention to what
you hear at Laclede, why don't you volunteer? Why don't you mentor a child how to
read?"—St. Louis, Mo., Jan. 5, 2004
"So thank you for reminding me about the importance of being a good mom and a great
volunteer as well."—St. Louis, Jan. 5, 2004
"I want to remind you all that in order to fight and win the war, it requires an expenditure
of money that is commiserate with keeping a promise to our troops to make sure that
they're well-paid, well-trained, well-equipped."
"See, without the tax relief package, there would have been a deficit, but there wouldn't
have been the commiserate—not 'commiserate'—the kick to our economy that occurred as
a result of the tax relief."
"[T]he best way to find these terrorists who hide in holes is to get people coming forth to
describe the location of the hole, is to give clues and data."
"Justice was being delivered to a man who defied that gift from the Almighty to the people
of Iraq."—Washington, D.C., Dec. 15, 2003
"[A]s you know, these are open forums, you're able to come and listen to what I have to
say."—Washington, D.C., Oct. 28, 2003
"The ambassador and the general were briefing me on the—the vast majority of Iraqis
want to live in a peaceful, free world. And we will find these people and we will bring them
to justice."—Washington, D.C., Oct. 27, 2003 (Thanks to Robert Hack.)
"[W]hether they be Christian, Jew, or Muslim, or Hindu, people have heard the universal
call to love a neighbor just like they'd like to be called themselves."—Washington, Oct. 8,
2003 (Thanks to George Dupper.)
"See, free nations are peaceful nations. Free nations don't attack each other. Free nations
don't develop weapons of mass destruction."—Milwaukee, Wis., Oct. 3, 2003
"[W]e've had leaks out of the administrative branch, had leaks out of the legislative
branch, and out of the executive branch and the legislative branch, and I've spoken out
consistently against them, and I want to know who the leakers are."—Chicago, Sept. 30,
2003
"Washington is a town where there's all kinds of allegations. You've heard much of the
allegations. And if people have got solid information, please come forward with it. And that
would be people inside the information who are the so-called anonymous sources, or people
outside the information—outside the administration."—Chicago, Sept. 30, 2003 (Thanks to
Andy Bowers.)
"[T]hat's just the nature of democracy. Sometimes pure politics enters into the rhetoric."—
Crawford, Texas, Aug. 8, 2003 (Thanks to Inigo Thomas.)
"I glance at the headlines just to kind of get a flavor for what's moving. I rarely read the
stories, and get briefed by people who are probably read the news themselves."—
Washington, D.C., Sept. 21, 2003
"I'm so pleased to be able to say hello to Bill Scranton. He's one of the great Pennsylvania
political families."—Drexel Hill, Penn., Sept. 15, 2003 (Thanks to Michael Shively.)
"We had a good Cabinet meeting, talked about a lot of issues. Secretary of State and
Defense brought us up to date about our desires to spread freedom and peace around the
world."—Washington, D.C., Aug. 1, 2003 (Thanks to Tanny Bear.)
"Security is the essential roadblock to achieving the road map to peace."—Washington,
D.C., July 25, 2003
"Our country puts $1 billion a year up to help feed the hungry. And we're by far the most
generous nation in the world when it comes to that, and I'm proud to report that. This isn't
a contest of who's the most generous. I'm just telling you as an aside. We're generous. We
shouldn't be bragging about it. But we are. We're very generous."—Washington, D.C.,
July 16, 2003
"It's very interesting when you think about it, the slaves who left here to go to America,
because of their steadfast and their religion and their belief in freedom, helped change
America."—Dakar, Senegal, July 8, 2003 (Thanks to Michael Shively.)
"My answer is bring them on."—On Iraqi militants attacking U.S. forces, Washington,
D.C., July 3, 2003
"You've also got to measure in order to begin to effect change that's just more—when
there's more than talk, there's just actual—a paradigm shift."—Washington, D.C., July 1,
2003 (Thanks to Michael Shively.)
"I urge the leaders in Europe and around the world to take swift, decisive action against
terror groups such as Hamas, to cut off their funding, and to support—cut funding and
support, as the United States has done."—Washington, D.C., June 25, 2003
"Iran would be dangerous if they have a nuclear weapon."—Washington, D.C., June 18,
2003
"Now, there are some who would like to rewrite history—revisionist historians is what I
like to call them."—Elizabeth, N.J., June 16, 2003
"I am determined to keep the process on the road to peace."—Washington, D.C., June 10,
2003 (Thanks to Tanny Bear.)
"The true strength of America happens when a neighbor loves a neighbor just like they'd
like to be loved themselves."—Elizabeth, N.J., June 16, 2003
"We are making steadfast progress."—Washington, D.C., June 9, 2003 (Thanks to Michael
Shively.)
"I'm the master of low expectations."—Aboard Air Force One, June 4, 2003
"I'm also not very analytical. You know I don't spend a lot of time thinking about myself,
about why I do things."—Aboard Air Force One, June 4, 2003
"I recently met with the finance minister of the Palestinian Authority, was very impressed
by his grasp of finances."—Washington, D.C., May 29, 2003
"Oftentimes, we live in a processed world—you know, people focus on the process and not
results."—Washington, D.C., May 29, 2003
"I've got very good relations with President Mubarak and Crown Prince Abdallah and the
King of Jordan, Gulf Coast countries."—Washington, D.C., May 29, 2003
"All up and down the different aspects of our society, we had meaningful discussions. Not
only in the Cabinet Room, but prior to this and after this day, our secretaries, respective
secretaries, will continue to interact to create the conditions necessary for prosperity to
reign."—Washington, D.C., May 19, 2003
"First, let me make it very clear, poor people aren't necessarily killers. Just because you
happen to be not rich doesn't mean you're willing to kill."—Washington, D.C., May 19,
2003
"We ended the rule of one of history's worst tyrants, and in so doing, we not only freed the
American people, we made our own people more secure."—Crawford, Texas, May 3, 2003
(Thanks to Tony Marciniec.)
"We've had a great weekend here in the Land of the Enchanted."—Albuquerque, N.M.,
May 12, 2003 (New Mexico's state nickname is "Land of Enchantment.")
"We've got hundreds of sites to exploit, looking for the chemical and biological weapons
that we know Saddam Hussein had prior to our entrance into Iraq."—Santa Clara, Calif.,
May 2, 2003 (Thanks to Michael Shively.)
"I think war is a dangerous place."—Washington, D.C., May 7, 2003
"I don't bring God into my life to—to, you know, kind of be a political person."—
Interview with Tom Brokaw aboard Air Force One, April 24, 2003
"You're free. And freedom is beautiful. And, you know, it'll take time to restore chaos and
order—order out of chaos. But we will."—Washington, D.C., April 13, 2003
"Perhaps one way will be, if we use military force, in the post-Saddam Iraq the U.N. will
definitely need to have a role. And that way it can begin to get its legs, legs of responsibility
back."—the Azores, Portugal, March 16, 2003
"I know there's a lot of young ladies who are growing up wondering whether or not they
can be champs. And they see the championship teams from USC and University of
Portland here, girls who worked hard to get to where they are, and they're wondering
about the example they're setting. What is life choices about?"—Washington, D.C., Feb.
24, 2003
"Now, we talked to Joan Hanover. She and her husband, George, were visiting with us.
They are near retirement—retiring—in the process of retiring, meaning they're very
smart, active, capable people who are retirement age and are retiring."—Alexandria, Va.,
Feb. 12, 2003 (Thanks to Dennis Doubleday.)
"Columbia carried in its payroll classroom experiments from some of our students in
America."—Bethesda, Md., Feb. 3, 2003
"And, most importantly, Alma Powell, secretary of Colin Powell, is with us."—
Washington, D.C., Jan. 30, 2003
"The war on terror involves Saddam Hussein because of the nature of Saddam Hussein,
the history of Saddam Hussein, and his willingness to terrorize himself."—Grand Rapids,
Mich., Jan. 29, 2003
"When Iraq is liberated, you will be treated, tried, and persecuted as a war criminal."—
Washington, D.C., Jan. 22, 2003 (Thanks to Chad Conwell.)
"Many of the punditry—of course, not you (laughter)—but other punditry were quick to
say, no one is going to follow the United States of America."—Washington, D.C., Jan. 21,
2003
"One year ago today, the time for excuse-making has come to an end."—Washington, D.C.,
Jan. 8, 2003
"I think the American people—I hope the American–I don't think, let me—I hope the
American people trust me."—Washington, D.C., Dec. 18, 2002
"The goals for this country are peace in the world. And the goals for this country are a
compassionate American for every single citizen. That compassion is found in the hearts
and souls of the American citizens."—Washington, D.C., Dec. 19, 2002 (Thanks to Michael
Shively.)
"There's only one person who hugs the mothers and the widows, the wives and the kids
upon the death of their loved one. Others hug but having committed the troops, I've got an
additional responsibility to hug and that's me and I know what it's like."—Washington,
D.C., Dec. 11, 2002
"In other words, I don't think people ought to be compelled to make the decision which
they think is best for their family."—Washington, D.C., Dec. 11, 2002 (Thanks to Stephanie
Nichols.)
"Sometimes, Washington is one of these towns where the person—people who think they've
got the sharp elbow is the most effective person." —New Orleans, Dec. 3, 2002 (Thanks to
Michael Shively.)
"The law I sign today directs new funds and new focus to the task of collecting vital
intelligence on terrorist threats and on weapons of mass production."—Washington, D.C.,
Nov. 27, 2002
"These people don't have tanks. They don't have ships. They hide in caves. They send
suiciders out."—Speaking about terrorists, Portsmouth, N.H., Nov. 1, 2002
"I know something about being a government. And you've got a good one."—Stumping for
Gov. Mike Huckabee, Bentonville, Ark., Nov. 4, 2002
"I need to be able to move the right people to the right place at the right time to protect
you, and I'm not going to accept a lousy bill out of the United Nations Senate."—South
Bend, Ind., Oct. 31, 2002
"John Thune has got a common-sense vision for good forest policy. I look forward to
working with him in the United Nations Senate to preserve these national heritages."
"Any time we've got any kind of inkling that somebody is thinking about doing something
to an American and something to our homeland, you've just got to know we're moving on
it, to protect the United Nations Constitution, and at the same time, we're protecting
you."—Aberdeen, S.D., same day (Thanks to George Dupper.)
"Let me tell you my thoughts about tax relief. When your economy is kind of ooching
along, it's important to let people have more of their own money."—Boston, Oct. 4, 2002
"I was proud the other day when both Republicans and Democrats stood with me in the
Rose Garden to announce their support for a clear statement of purpose: you disarm, or we
will."—Speaking about Saddam Hussein, Manchester, N.H., Oct. 5, 2002 (Thanks to
George Dupper.)
"You see, the Senate wants to take away some of the powers of the administrative
branch."—Washington, D.C., Sept. 19, 2002
"We need an energy bill that encourages consumption."—Trenton, N.J., Sept. 23, 2002
"People say, how can I help on this war against terror? How can I fight evil? You can do so
by mentoring a child; by going into a shut-in's house and say I love you."—Washington,
D.C., Sept. 19, 2002
"I'm plowed of the leadership of Chuck Grassley and Greg Ganske and Jim Leach."—
Davenport, Iowa, Sept. 16, 2002
"There's an old saying in Tennessee—I know it's in Texas, probably in Tennessee—that
says, fool me once, shame on—shame on you. Fool me—you can't get fooled again."—
Nashville, Tenn., Sept. 17, 2002
"There's no doubt in my mind that we should allow the world worst leaders to hold
America hostage, to threaten our peace, to threaten our friends and allies with the world's
worst weapons."—South Bend, Ind., Sept. 5, 2002
"If you don't have any ambitions, the minimum-wage job isn't going to get you to where
you want to get, for example. In other words, what is your ambitions? And oh, by the way,
if that is your ambition, here's what it's going to take to achieve it."—Speech to students in
Little Rock, Ark., Aug. 29, 2002 (Thanks to George Dupper.)
"See, we love—we love freedom. That's what they didn't understand. They hate things; we
love things. They act out of hatred; we don't seek revenge, we seek justice out of love."—
Oklahoma City, Aug. 29, 2002
"There's no cave deep enough for America, or dark enough to hide."—Oklahoma
City, Aug. 29, 2002 (Thanks to Michael Shively.)
"President Musharraf, he's still tight with us on the war against terror, and that's what I
appreciate. He's a—he understands that we've got to keep al-Qaida on the run, and that by
keeping him on the run, it's more likely we will bring him to justice."—Ruch, Ore., Aug.
22, 2002 (Thanks to Scott Miller.)
"I'm a patient man. And when I say I'm a patient man, I mean I'm a patient man."
"Nothing he [Saddam Hussein] has done has convinced me—I'm confident the Secretary of
Defense—that he is the kind of fellow that is willing to forgo weapons of mass destruction,
is willing to be a peaceful neighbor, that is—will honor the people—the Iraqi people of all
stripes, will—values human life. He hasn't convinced me, nor has he convinced my
administration."—Crawford, Texas, Aug. 21, 2002
"I'm thrilled to be here in the bread basket of America because it gives me a chance to
remind our fellow citizens that we have an advantage here in America—we can feed
ourselves."—Stockton, Calif., Aug. 23, 2002 (Thanks to Christopher Baird.)
"There's no bigger task than protecting the homeland of our country."
"The federal government and the state government must not fear programs who change
lives, but must welcome those faith-based programs for the embetterment of mankind."—
Stockton, Calif., Aug. 23, 2002 (Thanks to George Dupper.)
"I love the idea of a school in which people come to get educated and stay in the state in
which they're educated."
"There may be some tough times here in America. But this country has gone through
tough times before, and we're going to do it again."
"I promise you I will listen to what has been said here, even though I wasn't here."
"I can assure you that, even though I won't be sitting through every single moment of the
seminars, nor will the vice president, we will look at the summaries."
"Tommy [Thompson, Health and Human Services secretary,] is a good listener, and he's a
pretty good actor, too."
"The trial lawyers are very politically powerful. … But here in Texas we took them on and
got some good medical—medical malpractice.""I firmly believe the death tax is good for
people from all walks of life all throughout our society."
—Waco, Texas, Aug. 13, 2002
"There was no malfeance involved. This was an honest disagreement about accounting
procedures. ... There was no malfeance, no attempt to hide anything."—White House press
conference, Washington, D.C., July 8, 2002
"I also understand how tender the free enterprise system can be."—White House press
conference, Washington, D.C., July 9, 2002
"Over 75 percent of white Americans own their home, and less than 50 percent of Hispanos
and African Americans don't own their home. And that's a gap, that's a homeownership
gap. And we've got to do something about it."—Cleveland, Ohio, July 1, 2002
"Whether you're here by birth, or whether you're in America by choice, you contribute to
the vitality of our life. And for that, we are grateful."—Washington, D.C., May 17, 2002
"I'd rather have them sacrificing on behalf of our nation than, you know, endless hours of
testimony on congressional hill."—National Security Agency, Fort Meade, Maryland, June
4, 2002
"We're working with Chancellor Schröder on what's called 10-plus-10-over-10: $10 billion
from the U.S.,$10 billion from other members of the G7 over a 10-year period, to help
Russia securitize the dismantling—the dismantled nuclear warheads."—Berlin, Germany,
May 23, 2002
"Do you have blacks, too?"—To Brazilian President Fernando Cardoso, Washington,
D.C., Nov. 8, 2001
"This is a nation that loves our freedom, loves our country."—Washington, D.C, May 17,
2002
"The public education system in America is one of the most important foundations of our
democracy. After all, it is where children from all over America learn to be responsible
citizens, and learn to have the skills necessary to take advantage of our fantastic
opportunistic society."—Santa Clara, Calif., May 1, 2002
"After all, a week ago, there were—Yasser Arafat was boarded up in his building in
Ramallah, a building full of, evidently, German peace protestors and all kinds of people.
They're now out. He's now free to show leadership, to lead the world."—Washington, D.C.,
May 2, 2002 (Thanks to M. Bateman.)
"This foreign policy stuff is a little frustrating."—as quoted by the New York Daily News,
April 23, 2002
"I want to thank the dozens of welfare to work stories, the actual examples of people who
made the firm and solemn commitment to work hard to embetter themselves."—
Washington, D.C., April 18, 2002 (Thanks to George Dupper.)
"And so, in my State of the—my State of the Union—or state—my speech to the nation,
whatever you want to call it, speech to the nation—I asked Americans to give 4,000 years—
4,000 hours over the next—the rest of your life—of service to America. That's what I asked
—4,000 hours." —Bridgeport, Conn., April 9, 2002 …(there are many more)
51 Iraqi worshipers, 7 troops killed in church siege (Washington Post) [ Yes, and
even more sounds of silence … which of course smells like napalm in the
morning … you know … that victory thing. ] Suicide bomber in Iraq kills at
least 26 people, many of them police (Washington Post) [ Ah, yes … those
sounds of silence … the birthing of a new american-style democracy … like
napalm in the morning … smells like victory … (lucky for them bush /
bushies / neo-cons lied about those wmd’s) … and all for the sake of israel
and the military industrial complex. ]
Election outcome may complicate Obama's foreign policy (Washington Post)

[ Wow! That’s all this country needs … a more self-destructive zionist-leaning
foreign policy which, as obvious to the rest of the world, ignores israel’s
transgressions (ie., violations of international law, u.n. resolutions, nuclear non-
proliferation treaty, etc.) while focusing on geopolitically detrimental or
otherwise, non-events. I see an already zionist-leaning foreign policy with
wobama and co. which begs the question … What foreign policy? James
Forrestal made the point infra: ]
Obama cites Indonesia as model for Muslims (Washington Post)[ Drudgereport:

Obama slams israel from Jakarta … [ Wow! Who woulda’ thunk it … Wobama
growing gonads in Indonesia … He is quite correct, albeit in one of those
sparingly infrequent moments … But, alas … he’ll be returning to ‘little israel’
soon (usa) and I’m sure his rhetoric will return to typical pro-israeli (anti-american
interest) actions and words (b*** s***)! ]...
netanayahu takes Flight Back...
Confronts Anti-israel Reality/Truth Movement in USA...
China Ratings Agency Downgrades America... ] In city he once lived in as a boy,
Obama heralds nation's "spirit of tolerance" that allows mosques, churches and
temples to co-exist in a democracy.
Deaths of four Americans reflect increasing violence of Somali piracy

(Washington Post) [ Drudgereport: U.S. Warship Tracking Yacht Hijacked by
Somali Pirates... [ I realize there are ‘laws of the sea’ / codified bodies of law
within that broad yet very specific category called ‘maritime law’, none of which I
know nor care to know (I’ll content myself to knowing and seeing to the
enforcement of american law as pertains to me; viz., RICO
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm . I
do know that these somali pirates need killin’ and I further believe that open
season on them including using their boats in the water for target practice makes
sense and certainly is morally justified. I’m tired of hearing about those little
weasels … you know, ‘the skinnies’. ]
Progress in Afghan war called 'uneven' ( Washington Post ) [ Uneven? Riiiiight!

The real question consonant with reality: Is there EVEN progress at all … just a
little bit … un petit peux … teeny weeny, itsy bitsy, one iota of progress … A
resounding NO! … unless you’re counting the magnitude of america’s defacto
bankruptcy, anti-american sentiment, etc.. ]
Visiting U.S. senators praise Afghan progress, say drawdown date is unrealistic
(Washington Post) [ I’ll tell you what’s unrealistic: having compromised senators
( ie., non-war-heroe senile mccain, closet homosexual graham, incompetent zelig
zionist lieberman, new york sinkhole slug Kirsten Gillibrand chided As
'Schumer's (zionist) Little Girl' ) stay the course with already failed pervasively
corrupt, defacto bankrupt american policy … Paul Craig Roberts: Government
Abandoned Vietnam POWs Kurt Nimmo | John McCain worked overtime to make
sure Vietnam POWs never came home. I think the even bigger story vis-à-vis
mccain is: http://www.albertpeia.com/heroenot.htm ‘Did you know that that so-
called "american heroe" john mccain was referred to by his fellow pows in
Vietnam as something akin to the "songbird" inasmuch as he was constantly
"singing" to his Viet-Cong captors to curry favor and better treatment? This has
been documented with authority by Colonel David Hackworth. The same violates
military code/protocol (other soldiers have been court-martialed for far less) click
Here, Here. [ http://www.albertpeia.com/hackworth.htm ] But, you see, this
covered up scenario, compromizing the false facade of far less than a heroe, is
exactly what a criminal (lie of a) nation as america loves and encourages (get
interest if not outright fraud)…’…Oh and they so can afford it Deficit panel
proposes huge cuts (Washington Post) [ Cuts? I heard the corrupt, incompetent
lawmakers were giving themselves a raise. They actually deserve at least a 10%
paycut and abolition of those lifetime appointments / permanent corrupt
bureaucracies. Nothing succeeds like failure and crime in pervasively corrupt,
defacto bankrupt america! ] Lawmakers propose curbs on Social Security, cuts in
spending and tax hikes if long-term goals aren't met.
In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation

of a Jewish state in Palestine, warned that, even though failure to go along with
the Zionists might cost President Truman the states of New York, Pennsylvania,
and California, it was about time that somebody should pay some consideration
to whether we might not lose the United States. Mr. Forrestal was absolutely
intractable decline.
TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE

THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF
FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS
WORLD!
Families remember USS Cole 10 years later (Washington Post) [ If only Americans
remembered the uss liberty, they’d understand the israeli albatross strangling
and bleeding the life out of america as they have since that fateful day.] In the
Middle East, it's still 1947 (Washington Post) [ Indeed it should be! Among the few
times the cia was correct, and they’ve been trying to put square pegs in round
holes ever since, to america’s substantial detriment. I wonder what what those
american sailors of the US Liberty killed by the israelis would say? USS Liberty
Survivor Threatened by Unknown Israeli This is what happened to Phillip F.
Tourney, decorated war hero and survivor of Israel’s premeditated attack on the
USS Liberty 43 years ago. On the evening of Aug. 6, Tourney was verbally
threatened by a foreign national claiming to work for the government of israel. As
for the purported disdain shown for war mongerer netanayahu, if only wobama’s
actions matched his words, the same would represent a major plus for him and
the nation of america, so sorely in need of pluses whether the same be budgetary
or economic or geopolitical. In fact, for America to abrogate 1948 would
guarantee America’s survival, prosperity, and global hegemony in the most
positive sense. ]
The Obama Deception Number 1 on U.S. Google Trends

most popular feature films ‘The Obama Deception’ has been censored
following a spur of the moment campaign to elevate the movie’s title to the
top of the major internet search engines.

be complete (but will be compared with earlier version and replaced with
same if incomplete)
Censorship Alert: Obama Deception Illegally Removed from You Tube Made to
look like a hack, Thought Police Block Mega-Viral Anti-Establishment
Documentary After More than a Year of Dominating Viewcounts, Ranking #1
in Search Engines and Waking Up Millions to the False Left-Right Paradigm
Perpetuated by Obama.



ancestral roots and thereby claim standing/right to posit the criticism in light of

infra)

Dear Sir:


thereto.
Sincerely,
Albert L. Peia
611 E. 5th Street, #404
(213) 219-**** (cell phone)
----------
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of reference, including the files in the RICO action as indicated.
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Label/Receipt Number: 0310 1230 0000 0862 8183

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Judges rule without title, lenders can't foreclose (Washington Post) [ Rules of
law? I didn’t think they cared. That’s certainly the direct experience I’ve had with
the pervasively corrupt american legal / judicial system (along with the other two
branches of the u.s. government and defact bankrupt america generally). Court
decisions could call into doubt the ownership of mortgages, raising urgent
challenges for both the real estate market, wider financial system. Connecticut,
California join probe of Ally (Washington Post) [I’d be much more impressed if
they initiated a probe of more readily discernible criminal offenses in violation of
the RICO Act http://albertpeia.com Frauds/Liars (sic-lawyers)Covering Up for
Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc.,
Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of
Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance
Against Fraud coan et als Or Here For A Clearer View Of Filed Grievance
Complaint, Response, Exhibits, and Related RICO Filings Note the Committee of
Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty.
General Office Rep., and even a Vegetable Garden yale law prof who probably
never practiced law in his life. How Pathetic!
http://albertpeia.com/fbiofficela91310 ] Justice: FBI improperly opened probes
(Washington Post) [ I just hope they’re as zealous (in probing readily discernible
crime) with regard to my RICO matters and the corruption in the (judicial / legal)
process since, in the final analysis, it will have been the corruption within that will
have brought the nation down irrevocably and totally.
Part 2: Woodward's 'Obama's Wars' Don't get 'locked into Vietnam,' Biden warns
(Washington Post) [ Yeah, when you have a lobotomized VP you tend not to
trust their opinion; but, I think they just cover their bases … you know, that
Kerryish both sides of all issues thing. In any event, wobama bought this
continued debacle and bears fault with the other zionist war mongers.
Previously (on Iraq and Afghanistan, infra): Obama: 'It is time to turn the
page' on Iraq war (Washington Post) [ Oh come on! How patronizing to
have wobama spew his b*** s*** which b.s. has become synonomous with
wobama; ‘to give Iraqis the chance to shape their future’… Iraq’s been
destroyed, covered in cancer-causing depleted uranium, america’s defacto
bankrupt, etc. If only teleprompters had a brain of their own. ] He says the
U.S. "has paid a huge price" to give Iraqis the chance to shape their future
-- a price that now includes more than 4,400 U.S. dead. ) On Thanksgiving
weekend in 2009, Vice President Biden counsels President Obama about
sending more troops to Afghanistan.
• Full coverage: 'Obama's Wars'
• Audio: Obama on length of the war
• Audio: Obama on attack possibility
• Audio: Obama on terrorism tactics
nefarious sense (
) ]:


# 3 Germany: 6,507,394
… ]
Goldman agrees to pay $550M (Washington Post) My own skepticism based on
the disparate numbers (the size of the frauds compared to the relatively
small fine) and as set forth in the initial reactions / headlines that
immediately follow has been allayed somewhat by an interview on NBR with
former SEC head Ruder who explained the very narrow scope of the
settlement which in no way shelters goldman from the huge frauds they
have perpetrated. So long as this is true in fact as well as law and in
application, the SEC deserves praise as has been so under the auspices of
‘Mother Mary’ who appears to have the gonads lacking in prior SEC heads.
and disgorgement imposed.
Iran connects U.S./israel to deadly blasts I believe Iran!
‘West, israel linked to SE Iran blasts’ A ranking official with the Islamic
Revolution Guards Corps (IRGC) has implicated “the us, israel and some
european countries” in the deadly blasts in the southeastern Iranian city of
Zahedan.
De-classified Vietnam-era Transcripts Show Senators Knew Gulf Of Tonkin Was A

Staged False Flag Event Over 1,100 pages of previously classified Vietnam-
era transcripts released this week by the Senate Foreign Relations
Committee highlight the fact that several Senators knew that the White
House and the Pentagon had deceived the American people over the 1964
Gulf of Tonkin incident.
Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter |
Wachovia was moving money behind literally tons of cocaine from violent
drug cartels. It wasn’t an accident.
Vegetable zionist Zelig joe lieberman’s Model For America: Purging The Internet
of Dissent When political Zelig joe lieberman attempted to justify draconian
legislation that would provide President Obama with a figurative kill switch
to shut down parts of the Internet, he cited the Chinese system of Internet
policing as model which america should move towards
Stepped-up efforts fail to stem drug money (Washington Post) [ Come on! Wake
up! That’s american, yes american big business. The stuff that the war in
Afghanistan is made of; viz., ie., heroin, etc.. ]Stashing cash in spare tires, engine
transmissions and truckloads of baby diapers, couriers for Mexican drug cartels
are moving tens of billions of dollars in profits south across the border each year,
a river of dirty money that has overwhelmed U.S. and Mexican customs agents.
Carlyle-owned toy supplier files for bankruptcy (Washington Post) [ What is a
bush-involved company of paper (leveraged instruments, etc.) pushers
doing with any company doing business in the u.s. or elsewhere for that
matter. The bushes are vegetables who really can’t do anything well, except
maybe, war, war crimes, fraud, illegal drug deals (Iran contra, etc.,
http://albertpeia.com/CIAAgentAffidavit1.jpg ) ]
State Dept. faces skyrocketing costs as it prepares to expand role in Iraq:

Waning resources could endanger security gains, lawmakers are told
(Washington Post) [ The ‘new never ending story’! america’s defacto
bankrupt! Dat’s the story, jerry! What gains? Iraq’s destroyed. Iraq’s
‘covered’ in depleted uranium. The people are devastated. america’s defacto
bankrupt. Come on! We’re getting close to biblical stuff here! There’s just no
excuse for this compounding of war crimes committed by the u.s. and
‘friends’.]
Mideast Digest: Iran's Ahmadinejad calls for regional solution to Afghan crisis
(Washington Post) And appropriately so, as leader of a nation in the region as
opposed to invading nations from outside the region (particularly as one targeted
by assassins the likely assigns of those outside the region).
One of those … Daaaaah! Moments … Panetta says Afghan progress slower than
expected Los Angeles Times - Days after President Obama installed a new
US military commander in Afghanistan, CIA Director Leon E. Panetta
conceded Sunday that progress in the war has been "harder" and "slower
than I think ... Panetta says Afghan insurgents show no real interest in
reconciliation talks Washington Post CIA Retains Controversial Security
Firm in Afghanistan Wall Street Journal CIA: AFGHAN PROGRESS
'SLOWER' THAN ANTICIPATED… Daaaaah! ...
GOP chairman: Afghan 'war of Obama's choosing' (AP) - Republican chairman

Michael Steele drew criticism from within his own party Friday, including
calls to resign, after saying the 9-year-old commitment of U.S. troops to
Afghanistan was a mistaken ... [Steele is quite right and wobama and war
facilitators deserve criticism; not Steele.]
Judge: 'Don't ask, don't tell' is unconstitutional (Washington Post) [ Well, we all
know that judge walker is alledgedly a homo, so the question here is whether
judge phillips is a lesbian… just kidding! Not to slight homosexuals but to
emphasize judicial bias / corruption which is pervasive in america and I’ve
observed, experienced, and have been substantially damaged by pervasive and
systemic corruption in the american judicial process which has become more
blatant and which justifies the abolition of these costly, corrupt lifetime
appointment / bureaucracies. The fact is that ‘don’t ask, don’t tell’ is the policy
throughout the pervasively corrupt federal system which is indeed as illegal as it
is unconstitutional! (
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ). ]
Ex-Justice official: CIA may have exceeded limits (Washington Post) Wee
doggies! This sounds like the stuff that SNL Weekend Update ‘Really’ skits
are made of; also fitting into that list of queries as, ‘Is the Pope Catholic?’,
‘Do bears **** in the woods?’, etc.. Come on! Wake up! This is the kind of
complicit cover-up / corruption found betwixt and between all three
branches of the u.s. government leading ineluctably to america’s current
decline and to which I’ve attested under penalty of perjury in the context of
the RICO litigation [
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ].
Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter |
Wachovia was moving money behind literally tons of cocaine from violent
drug cartels. It wasn’t an accident.
There is really no way to rationalize or attempt to justify what america is / has

become since they have with open eyes chosen this contra-indicated course
of ineluctable decline, from illegal wars, to war crimes, to backing war
criminal nations as israel, to huge frauds, to war profiteering, to illicit drug
trafficking and money laundering, and this list goes on and on …:
(Previously) I’d say this alito vs. wobama is a tempest in a teapot inasmuch as
alito is more than just a lightweight, hack, liar, fraud etc., as set forth in the
comments. alito is a criminal who should have served / should be serving time in
prison for obstruction of justice, bribery, among other RICO violations. To alito,
drug money is as green as corporate money and worth his vote as well. In
addition to being an inept [I looked in on the one mob case he had brought,
bungled, lost (accidently on purpose?) since I was suing some mob-connected
under RICO and the court (I had known / previously met outside of court the
judge Ackerman through a client) was absolute bedlam and a total joke since
incompetent corrupt alito brought in all 20 mob defendants (rather than prosecute
one or a few to flip them first) who feigning illness had beds/cots in the
courtroom along with their moans during testimony and had the jury in stitches)]
and corrupt (see below and particularly the summary provided to the FBI under
penalty of perjury [
ury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] ) u.s.
attorney.
You’re naïve to think that the so-called supreme court is any different from the
rest of the meaningfully lawless and pervasively corrupt american ‘system’. I
knew well an accomplished trial lawyer, fellow american college of trial lawyers /
and a bar examiner, who pondered from time to time becoming a judge “so he’d
never have to work again” – his words.
Some comments on alito…all appropriate:
Probably the worst appointment in one hundred years.
Posted by: mnjam
-----------------------
Really? That's a pretty sweeping statement to make about someone who's only
been on the court a short few years.
And I thought that liberals were in universal agreement that Clarence Thomas
was the worst appointment in all of history?
Posted by: blert | January 28, 2010 2:11 AM | Report abuse

----------------------------
Yes. Really. Alito is a total lightweight and hack. He makes Thomas look like John
Marshall or Oliver Wendell Holmes. I KNOW ALITO.
Posted by: mnjam | January 28, 2010 2:24 AM |
the loser here is alito.lost his composure not good for a judge especially afederal
or supreme justice .loser big time this will live with guy for a very time.roberts
and the other justices will have a talk with him that is a given.this relly larger than
o one day news cycle.
Posted by: donaldtucker | January 28, 2010 1:12 AM |
Should Alito resign or be impeached?

Posted by: jdmca | January 28, 2010 1:05 AM |
Manchurian Candidates: Supreme Court allows China and others unlimited

spending in US elections Greg Palast | Our future elections may come down
to a three-way battle between China, Saudi Arabia and Goldman Sachs.
Call For Immediate Arrest of 5 Supreme Court Justices for Treason Gordon
Duff | The bloated corpse we are creating in Washington is emitting a stench
we can no longer abide. The aforesaid would be shocking to anyone
without a modicum of knowledge of the reality of pervasive corruption within
the u.s. courts themselves and america generally, including all three
branches of the u.s. government.
Ron Paul: After ‘CIA coup,’ agency ‘runs military’ US House Rep. Ron Paul says
the CIA has has in effect carried out a “coup” against the US government,
and the intelligence agency needs to be “taken out.” I also personally
believe there has been a defacto coup d’etat which has manifested in
various substantial, blatant, brazened frauds, ie., wall street, missing 360
tons of $100 bills in Iraq, war profiteering, etc., without any fear of
prosecution, and of course concomitant decline for u.s. as the treasury is
looted. But I also believe its scope is beyond just the CIA with many
complicit within the corrupted 3 branches of u.s. government (fed judges, us
attorneys, illegal system, etc.) plus the military and private big money, ie.,
Goldman Sachs / wall street men, etc., among other organized crime.
america is defacto bankrupt in every way!
Rendition: Where the War on Terror Meets the War on Drugs Patrick Henningsen |
It’s time to ditch the policies we have come to tolerate for decades before
they consume what is left of our moral core. I’ve experienced the corrupt
inter-relationship of the government (all 3 corrupt branches) and the illegal
drug trade / obstruction of justice / bribery first hand, particularly the
courts / u.s. attorneys offices (ie., alito – now u.s. supreme court justice –
quid pro quo for his complicity / cover-up), feds; see immediately after
article excerpt for links / summary.
…“Evidence points to aircraft – familiarly known as “torture taxis” – used

by the CIA to move captives seized in its kidnapping or “extraordinary
rendition” operations through Gatwick and other airports in the EU being
simultaneously used for drug distribution in the Western hemisphere. A
Gulfstream II jet aircraft N9875A identified by the British Government and
the European Parliament as being involved in this traffic crashed in
Mexico…” In 2004, another torture taxi crashed in a field in Nicaragua with
a ton of cocaine aboard… Mexican soldiers found ..132 bags containing 3.3
metric tons of cocaine. The origination of the Gulfstream’s flight is
unknown but it was destined for Cancun when it crash landed. Again, here
is the important point: that same Gulf Stream II was one of the very same
planes chartered to the CIA for the rendition of suspected terrorists
prisoners. Gulf Stream II crashed in Mexico with 3 tons of cocaine on board ..it
should not be surprising that this illegal practice of rendition has in some
part, been used as a well-run smokescreen for another borderless illegal
operation- an extremely lucrative international transfer and delivery of cash
and narcotics.,,These flights are not subject to regular customs checks,
inspections or normal regulations as they move seamlessly between
destinations in the US, Britain, Europe, Middle East, Central Asia, Cuba and
possibly through US bases in Turkey, Greece and Morocco…

their lifetime stipends and costly bureaucracies. Rules of law mean nothing
to these typically corrupt americans. Most, including sam alito of the u.s.
supreme court, concerning drug money laundering and obstruction of
justice in the 3rd circuit ( also maryanne trump barry who covered-up drug
money laundering through her brother’s casinos in a civil RICO case) should
have gone to or belong in jail. Contrary to popular belief, they do it for the
money, personal money, big, cash, untraceable money. The fog of war is
great for such things (360 tons $100 bills flown into Iraq and missing, etc.).
]. america’s just a fraudulent and failed defacto bankrupt nation.
NSA beats warrantless wiretap rap A Federal judge has dismissed a complaint
against the National Security Agency’s (NSA)

their lifetime stipends and corrupt costly bureaucracies.
There must be such things as parallel universes (I don’t really believe that,
because there isn’t) or how else do you explain the disconnect between
reality, current and prospective, and the wet dreams posited to keep the war
funding / corporate welfare programs alive in collectively what has already
become a trillion dollar boondoggle (not counting prospective medical
costs, etc.) and promises to go much higher. Even israel apologist Cohen of
The Washington Post alludes to the Vietnam analogy. However, even if there
were real goals beyond the poppy / heroin trade which the Taliban had all
but eradicated (there isn’t); even if america wasn’t defacto bankrupt (america
is); even if america wasn’t killing innocent civilians in large numbers (war
criminal nation america is); even if america’s allies haven’t similarly helped
to bankrupt themselves by way of this war (they have); even if I hadn’t told
you so (I did) ….. this war still was, is, and remains a very bad idea!
Afghan war overtakes Vietnam to become the longest conflict in U.S. history Mail
Online | The war entered its 104th month yesterday, with 30,000 American
troops being deployed in the first half of this year alone.
How does anyone take the u.s. seriously in light of their credibility problems, war
crimes, etc.? What nuke technology israel didn’t steal from the u.s., the u.s.
gave them along with missile, armaments, etc.. and paid for with taxpayer
money that u.s. taxpayers and the defacto bankrupt nation don’t have.
It's time to expel israel from the UN Without doubt, the israeli attack on the Gaza-
bound "Freedom Flotilla" in the dawn of Monday, May 31, 2010 is one of the
most savage crimes in recent history. It seems the ruling power in Tel Aviv
has been afflicted with a variant of mad cow disease; otherwise, how could it
be so cruel to unleash such a beastly raid on the "Mavi Marmara," the
Turkish flagship of a flotilla carrying medical and humanitarian supplies to
the hapless people of Gaza Strip?
The israeli Spin-Machine in Overdrive: dershowitz to the Rescue? Armed Israeli

commandos, the elite of the elites, rappelled to the deck of a Turkish ship
carrying humanitarian relief supplies to the 1.5 million prisoners in the Gaza
concentration camp.
You think Iraq was bad? Invading Iran ‘would be lunacy’ Ivan Eland, Director of
the Center on Peace and Liberty at the Independent Institute in Washington
DC, gives his opinion on new sanctions imposed on Iran.
I include the first two comments to the foregoing headline:
Billo Says:
June 11th, 2010 at 6:15 am
Lunacy? Keep in mind that this country is run and controlled by lunatics. Our
press government and military seem to take their orders from Israel. Isarel wants
to be known as a pack of “mad dogs. Do we want “mad dogs” controlling us?
Here we see a bunch of phony accusations against Iran just like we did in the run
up to the bogus wars in Iraq, Afghanistan and now Pakistan. The boy has cried
wold ten thousand times. It’s time to identify the “lunatics” and kindly take away
the car keys. If you won’t let your friends drive drunk, why do we let a bunch of
“lunatic” enemies run this place.
Glen Reply:
June 11th, 2010 at 6:47 am
Lunacy it would be.
But it is also to their great credit that the Iranians have not made their own
threats.
Everyone knows there are 3 WMD threats, Nuclear Biological and chemical. The
scariest of which is Biological.
Any attack done under the threat of immediate biological retaliation would deter
only the insane.
Watch out america home of the insane, home of the leaders who want an 80%
population reduction.
General McChrystal’s Burning Contempt for the Puppet Obama The farce that is
the war in Afghanistan is coming apart at the seams. General Stanley
McChrystal’s sharp comments about Obama, Biden, and the administration
published by Rolling Stone are not so much about disrespect, as the script-
reading corporate media talking heads would have it, but rather about a
policy in disarray in Afghanistan.
Gaza blockade illegal, must be lifted — UN rights official Israeli blockade of

Gaza unsustainable: White House US Jewish opinion and the ‘Beinart
moment’ The controversial book, The Israel Lobby, in which the political
scientists, John Mearsheimer and Stephen Walt, argued that US foreign
policy has been hijacked by organized Zionism went strangely unnoticed by
the leading journal of American intellectual opinion, the New York Review of
Books. Doubts Grow Over Israel’s Value as U.S. Ally Jim Lobe | The notion
is that Israel and its actions have since the Cold War increasingly become a
“strategic liability” to U.S. interests in the region.
In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation

of a Jewish state in Palestine, warned that, even though failure to go along with
the Zionists might cost President Truman the states of New York, Pennsylvania,
and California, it was about time that somebody should pay some consideration
to whether we might not lose the United States. Mr. Forrestal was absolutely
intractable decline.
TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE

THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF
FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS
WORLD!
OOOOH! ISRAEL NOW IN FAVOR OF NUKES IN THE MIDDLE EAST IN SUDDEN

SHIFT IN POLICY TO FAVOR IRAN IN A VERY BIG WAY! ISRAEL SEES THE
LIGHT AND SIDES WITH IRAN ON NUCLEAR ISSUE; ESSENTIALLY SAYS TO THE
WORLD AND IRAN ‘TO PRESS ON WITH NUCLEAR AMBITIONS’.
Paul Craig Roberts: Government Abandoned Vietnam POWs Kurt Nimmo | John
McCain worked overtime to make sure Vietnam POWs never came home. I think
the even bigger story vis-à-vis mccain is:
http://www.albertpeia.com/heroenot.htm ‘Did you know that that so-called
"american heroe" john mccain was referred to by his fellow pows in Vietnam as
something akin to the "songbird" inasmuch as he was constantly "singing" to his
Viet-Cong captors to curry favor and better treatment? This has been
documented with authority by Colonel David Hackworth. The same violates
military code/protocol (other soldiers have been court-martialed for far less) click
Here, Here. [ http://www.albertpeia.com/hackworth.htm ] But, you see, this
covered up scenario, compromizing the false facade of far less than a heroe, is
exactly what a criminal (lie of a) nation as america loves and encourages (get
interest if not outright fraud)…’
Coalition wants UK space lift-off [ Don’t make me laugh! ]
Israel’s Nukes Out of the Shadows Israel faces unprecedented pressure to
abandon its official policy of “ambiguity” on its possession of nuclear weapons
as the international community meets at the United Nations in New York this
week to consider banning such arsenals from the Middle East.
NASA wants mission to bring Martian rocks to Earth (AP) Why? They already
have that and more:
Launch of secret US space ship masks even more secret launch of new weapon
The Militarization of Outer Space: The Pentagon’s “Space Warriors” Global

Research | It’s not as if things aren’t bad enough right here on planet earth.
Now the Defense Department wants to up the stakes with new, destabilizing
weapons systems that will transform low- and high-earth orbit into another
“battlespace.”
buzz aldrin wants to colonize Mars … Riiiiight buzzed! Better check with DePalma
to see if he already has the footage in the can since you won’t be able to use
the moon footage for the new boondoggle video ...
OBAMA SPEECH OUTLINES PLANS FOR RETURNING DEFACTO BANKRUPT

U.S. TO SPACE – OOOOOH! SOUNDS LIKE A PLAN … FOR INNER SPACE
(IMAGINATION).
NASA's New Asteroid Mission Could Save the Planet Space.com - Tariq
Malik - CAPE CANAVERAL, Fla. - President Barack Obama set a lofty next
goal this week for Americans in space: Visiting an asteroid by 2025.
Obama's asteroid goal: tougher, riskier than moon The Associated Press
Obama calls for NASA to focus on trips to Mars and beyond Computerworld
New Boondoggle promised to save NASA boondoggle defacto bankrupt

budget piece of pie. And don’t forget, Bruce Willis and Ben Affleck, et als,
have already done this so it’s not as if they’re starting from ‘ground zero’, so
to speak; and Brian DePalma already has ‘Mission to Mars’ in the can, but
beware say the producers of ‘Species II’ since Eve, the cloned daughter of
Sill, might want to mate with astronaut Paddy Ross who has returned from
Mars as a space alien host body.
First fake moonwalker blasts Obama's space plan msnbc.com - Bill Ingalls -
The first man to pretend to walk on the moon blasted President Barack
Obama's decision to cancel NASA's back-to-the-moon program on Tuesday,
saying that not going with the new movie is “devastating” to america's
boondoggle spaced out effort. Fake dutch 'moon rock' revealed a treasured
piece at the dutch national museum - a supposed moon rock from the first
manned lunar landing - is nothing more than petrified wood, ...bbc news bbc
news | europe | fake dutch 'moon rock' revealed prized moon rock a fake - a
piece of moon rock given to an overseas politician by the united states is
actually a lump of petrified wood, museum authorities revealed yesterday. ...
'Moon rock' in dutch museum is just petrified wood aug 27, 2009 ... Fake
moon rock at dutch national museum. Rijksmuseum / ap. This rock,
supposedly brought back from the moon by american astronauts, ...
http://www.albertpeia.com/moonfraud.htm
In reality it is just a piece of petrified wood ... Another piece of evidence that
shows again that apollo program is indeed a fake and a typical american
fraud!
http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv
Editorial: US in quagmire Seeing the warm welcome extended to the Afghan

president on his US trip, it is hard to believe that only weeks ago
Washington was seething with anger and frustration at Hamid Karzai’s
behavior and there were even dark mutterings by US officials that he might
be mad.
War in Afghanistan and Iraq costs America $1trillion From the Old | On May 30th at
10:06 the United States reached the point where they have spent $1trillion on
the wars in Afghanistan and Iraq. Sinking of the Cheonan: A Classic
False Flag Operation Russia Today | Sinking of the warship was really
intended to convince Japan not to move US forces off Okinawa as well as
divert the attention of Americans from the dire economic situation at
home. . Israel: IDF Troops Who Murdered Unarmed Innocent People
Are ‘Brave Heroes’ The government of israel, aided by many quarters of the
international media, is attempting to spin today’s deadly IDF assault on a
humanitarian aid ship carrying supplies to Gaza as the fault of the murdered
activists on board the vessel, ludicrously characterizing machine-gun
carrying Israeli troops who killed over a dozen innocent people as the
victims of the incident.
Murder on the high seas JERUSALEM: Israeli marines stormed aid ships bound
for Gaza on Monday and at least 10 rights activists were killed, triggering a
diplomatic crisis and an emergency session of the UN Security Council.
European nations, as well as the United Nations and Turkey, voiced shock
and outrage at the bloody end to the international campaigners' bid to break
Israel's blockade of the Gaza Strip
Israeli American Microbiologist Linked to Deadly Fungus Kurt Nimmo | A report

links labs in the United States and Israel to the Cryptococcus gatti fungus
that has killed several people in the United States.
Iraqi doctors demand cancer probe Al Jazeera | Iraqi doctors believe depleted
uranium from US military equipment used in the 2003 invasion is spreading
cancer through the population. [This is all too true and real; and I’m
surprised this hasn’t gotten more attention, coverage … well, maybe not that
surprised ].
Anthropologists adopt a more favorable view of Neanderthals (Washington Post)

[ Well, I’m a bit surprised and somewhat disappointed that with a little more
effort, rather than rely upon inference, they could have taken a trip to the
new york / new jersey / connecticut metropolitan area (etc.) and observed
directly these lower italian modern-day archaic humans! Then there are the
other modern day archaics / ape-like creatures that warrant greater
scrutiny. ]
"What this means is that Neanderthals are not totally extinct. In some of us, they
live on," Paabo … With regard to that extinction thing, I’d say they’re still
working on it (ultimately, decades, extinction, the distinction, without a
difference). Actually, prior to studying the compelling subject of Biological
Anthropology (Michael Park text), I too had some misconceptions about the
group known as Neandertals (recent spelling drops the ‘h’) and actually mis-
referenced same by the stereotypical image of members of said clade even
as the debate continues as to whether they are within the species homo
sapiens or a separate species. I believe these to be distinctions without
important differences, so humble the origins and evolution of man truly are.
Parenthetically, I wonder what that anthropological scientist Heidi Klum
thinks on the subject.
Neanderthals, Humans Interbred, DNA Proves
Signs of Neanderthals Mating With Humans - Neanderthals mated with some

modern humans after all and left their imprint in the human genome.
Genome hints humans, Neanderthals rolled in prehistoric hay You're a
Neanderthal: Genes say yes — a little bit (AP) Neanderthals and people
interbred, fossil analysis finds For more info on man’s humble beginnings,
see here http://www.albertpeia.com/anthroindex1.htm [ I’m adding this
here, having seen while flipping channels an anthropologist talking up
somewhat speciously the brain size of Neanderthals. The important but
missed point here was potential ‘brain-power’ unrealized. Think of it this
way: In the life-threateningly cold climes they inhabited, pre-occupation with
warmth, fire, wood for fire, food, mere survival usurped all their waking
moments. Have you ever tried to study, learn, think clearly (and new
thoughts / neurogenesis thereby) under such harsh and perilous conditions;
successfully? Neither could they. ]
Previously I wrote:
FOUND: MISSING LINK BETWEEN APES AND MAN.... These stories, and the
many like it, are old news and I subscribe to the more studied view that there
is no “missing link” per se and in my view they are distinctions without
significant differences. I previously wrote:
To Learn More About From Whence Man Came, This Link's For You
[To the Professor at the beginning of the course]
10-5-09 Postscript: Professor *****,

I felt compelled to thank you again for the add; not to curry your favor but indeed
to express profound thanks inasmuch as this is probably the last formal course
at a formal educational institution I'll ever take; and among the most important.
While I had bought at discount a library-discarded 1993 Anthropology by Embers
text, though meaning to read same never quite got to it. I am astounded by the
substantial amount of time involved in the evolutionary process, not that I ever
stopped to think about it, and one must come away with the sense of 'and all
that...for this?'. This course should be required curriculum along with
psychology, sociology, etc., but probably won't be owing to what is, as it should
be, a very humbling educational experience for any member of the human race.
Regards,
Al Peia
[Interestingly, my intuitive (but unstudied) thoughts prior to closer examination of
the compelling subject of Biological Anthropology remain what I believe to
be the correct scenario. Specifically, very simply stated, for the most part,
the more “enlightened” (but not by much; by mutation, accident, luck,
intervention, etc.) left the unvarying confines of their Sub-Saharan origins,
experienced diverse new environs, challenges, etc., experienced what has
been described (by neuroscientists, psychologists, etc.) as neurogenesis in
varying degrees and forms thereby over time, which trait was selected for
and is consistent with the purported multi-regional evolutionary model
which does not overtly contradict ultimately, initial African origins. Races,
sub-species, missing links, etc., are subsumed in this very humbling and
sorrowful tale of the “dawn of man”.]
[Abolish the corrupt, costly, economically wasteful lifetime extravagantly

appointed federal courts - see RICO case [
perjury.pdf
http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ]
Don’t Tread On Me: A Refresher Course on the Constitution
Roman Polanski freed after Swiss reject U.S. extradition request (Washington
Post, July 13, 2010) Without diminishing in any way the seriousness of the
crime, this result is the direct consequence of the growing global
recognition of the pervasiveness of corruption in american courts, state and
federal, and america generally; so much so, that said corrupt american
courts cannot be relied on anywhere, anytime. Indeed, my own sampling,
though hardly random to be candid, is 5 for 5 (new jersey, new york,
connecticut, virginia, california) pervasively and egregiously corrupt to the
point where these costly, corrupt bureaucracies should be abolished and
supplanted with alternatives as I’ve previously set forth in prior
comments. / Though Assange’s arrest was on far more tenuous grounds
owing to a CIA-linked girl, Roman Polanski was similarly targeted:BBC News
- Roman Polanski triumphs at European Film Awards Dec 5, 2010 ... Roman
Polanski's thriller The Ghost Writer wins six prizes at the European ...
Polanski was working on the film at the time of his arrest in ...
www.bbc.co.uk/news/entertainment-arts-11921048 {I strongly recommend
this, of course, masterfully done film which deals with exactly that topic and
the sordid, unscrupulous machinations of the cia / u.s. (no wonder the u.s.
opted out of coverage by world treaty / The Hague thereby) to avoid
detection of, and to further such activities as the war crimes referenced.}
BUDGET CRISIS PUTS LOS ANGELES COURT SYSTEM AT RISK ... [Judge
sends Lohan to jail for probation violation (AP) – They got her! That globe-
trotting danger / threat to society, the infamous public enemy Lindsey
Lohan. Guess she couldn’t cough up that direct or indirect bribe. How
pathetic these corrupt, kangaroo courts are! If only she was a drug dealer,
armed robber, etc., she would have had the pre-paid connections to avoid
this preposterous (known substantial criminals walk about freely, without
fear) outcome. This, even as they are releasing substantial felons owing to
budgetary considerations. ] ABOLISH THE CORRUPT, ECONOMICALLY
WASTEFUL SO-CALLED SYSTEM, FROM MY DIRECT OBSERVATION AND
EXPERIENCE . (PREVIOUSLY ARCHIVED) HOWEVER, THIS LATEST
"CALIFORNIA/LA DISTRACTION" REQUIRES ELUCIDATION AS FOLLOWS:
Response to App. Div. OSC

STATE OF CALIFORNIA ethics complaint
Response to Sup.Ct. OSC
designation of record on appeal
The so-called "order" appealed from.
How embarrassing for the superior court of the state of california!
Typical corrupt banana republic america/california court
Dirty money digitally laundered … a wall street, atlantic city, and american
story … a very bad one and [also see RICO case
http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenalty
ofperjury.pdf
Fraud: It’s Much Bigger Than Goldman Sachs Regulatory reform debate
obscures key fact: Everybody’s getting money bribes from Wall Street
Blagojevich calls feds 'cowards and liars'…[Yes. This is a rare moment for
one to say that a sleazy hypocrite like blago, who is on corrupt federale-
connected mobster trump’s celebrity apprentice, happens to be correct
based upon facts / reality and my own direct observation and experience
and the law – Don’t forget to include corrupt federal judges as maryanne
trump barry, sam alito, shiff, matz, hall, underhill, dorsey, etc.. Defacto
bankrupt america’s so-called system is pervasively corrupt and broken]
(AP) [Abolish the corrupt, costly, economically wasteful lifetime
extravagantly appointed federal courts - see RICO case [
perjury.pdf


Drudgereport: JUNE UNEMPLOYMENT 9.5%... 125,000 JOBS LOST...

Rate dips as 652,000 give up search...
Depressing... [That’s why they’re called depressions (just kidding … but no
laughing matter) … At this rate, with all those lost jobs and jobseekers no longer
seeking those lost jobs that aren’t there, by their calculations (9.5% the bright
spot … riiiiight!) we should be at full employment very soon … you can’t make
this stuff up … really!].
New jobless claims rise [again]...
'Surprise'...
Pending home sales plunge record 30%...
Weak economic data suggest 'recovery' fizzling...
Fears mount over slowing global demand...
UN committee calls for dumping US dollar...
Six Months to Go Until the Largest Tax Hikes in History...
KRUGMAN: 'We are now, I fear, in the early stages of a third depression'...
STOCKS HIT LOWEST OF YEAR...
DEBT SOARS TO HIGHEST LEVEL SINCE WWII...
PRIVATE SECTOR SEES WEAKER JUNE JOBS...
Sputtering...
Bilderberg 2010: Between the sword and the wall...
Protesters 'being detained, searched, questioned'...
Final List of Participants...
Stephen Hawking: Aliens exist but don't talk to them -- it's too dangerous …
might not like us… Oh pshaw! … Human nature, man’s inhumanity to man? …
Such humble beginnings and evolutionary history … What’s not to like? …
Besides, not to worry. With their advanced technologies that defy human
understanding, the aliens already know you’re here … to stay. So, not to worry.
After all, as we know from that documentary of that same name, ‘Earth Girls Are
Easy’ … and then there’s photosynthesis on earth in a very big way also going for
it! ...
Seeing Aliens Will Likely Take Centuries. Centuries? Not goin’ to happen; at best,
decades.

March 18, 2011 Posts

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March 18, 2011 Posts

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Business / Economic / Financial

Let’s consider first what was going on prior to the catastrophe.

Those continuing problems are:

• Rising global inflation.

• NYSE up 51.16 (+0.6%) to 8,116.02

Markets moved higher early on in response to Group of Seven action to curb a

The U.S. dollar index (DXY) is down 0.48% to $75.67.

Key Levels for the Major Equity Averages

• Dow Transports (4950) -- My quarterly value level is 4671 with a weekly

• The Philadelphia Semiconductor Index (SOX) (412.44) -- My daily value level

Reports Of “Harmless” Radiation Reaching California Are a Whitewash Paul

“Humanitarian Wars are Good for Business”…. Speculators Applaud A war

War Propaganda Begins: Media Reports Gaddafi is “Collecting Bodies” To Blame

Another Illegal War Of Slaughter Couched In “Humanitarian” Doublespeak Those

Drudgereport: US SHIPS DEPLOY; LIBYA ACTION

Helen Thomas to Playboy: Jews 'own the White House'

G-7 to intervene in currency markets (Washington Post) [ Well there you go …

This is the grim economic reality [ http://albertpeia.com/grimreality.htm ]. This

Neo-Libs Rejoice As UN Declares War On Libya Neo-libs everywhere are

This is the grim economic reality [ http://albertpeia.com/grimreality.htm ]. This

Speaking of the 2008 meltdown, a reminder of it was called up yesterday when

Ellen Bente Oliver ‘Salary of House/Senate...$174,000. Salary of Speaker of

Currency Meltdown Coming USA Watchdog | A ball of debt is growing. It is on

Japanese Politician Suggests Closing Financial Markets For A Week Yesterday’s

Preview: Charlotte Iserbyt – The Miseducation of America PrisonPlanet.tv | Part

Last remaining potassium iodide available at Infowars.com Infowars has taken

Neo-Libs Rejoice As UN Declares War On Libya Neo-libs everywhere are

NY Times Maps Underplaying Extent Of Radiation The radiation plume illustrated

Swedish Government: Radiation To Cover Entire Northern Hemisphere

Yes, things really are that serious.

We are not just talking about a repeat of Chernobyl.

We are possibly talking about “many Chernobyls”.

It is somewhat understandable that the Japanese government and the

For example, a significant number of foreign governments are now evacuating

Why would they be evacuating if there was no threat?

#2 Andre-Claude Lacoste, the head of France’s Nuclear Safety Authority, says

#3 Radiation levels in Tokyo are already 10 times above normal levels.

#5 Radiation levels in one city north of Tokyo, Utsunomiya, were recently

#6 Radiation levels in the city of Saitama have been reported to be 40 timesabove

#7 According to Japanese Prime Minister Naoto Kan, the “possibility of further

#8 The Japanese government is admitting that radiation levels near the

#9 According to the World Nuclear Association, exposure to over 100 millisieverts

#16 German technology company SAP is evacuating their offices in Tokyo.

#18 Finland is urging all of their citizens to leave Tokyo.

#20 Air China is canceling many flights to Tokyo.

#22 Russia is making preparations to evacuate civilians and military unitsfrom

The Nuclear Regulatory Commission is admitting that it is “quite possible” that

So is there any reason for those of us living in the United States to be

Drudgereport: UN AUTHORIZES MILITARY STRIKES ON LIBYA...

(Washington Post) [ Comments COMMENTS ARE CLOSED WHILE WE UPGRADE

Dana Milbank In state legislatures, Tea Partyers take democracy to absurd

2chambers: McConnell, McCain draw the line (Washington Post) [ mccain

Today’s markets dropped because:

1) Japan ( NYSE:EWJ ) is about as scary a situation as possible. Fukushima is the

A Snapshot of Global PE Ratios and Dividend Yields Horowitz ‘Below, presented

Stock Market Decline Develops Exactly as Expected McCurdy‘The S&P 500

Click to enlarge graphic

Of course, mainstream financial media have attributed much of the recent

Tragedies such as the Japanese natural disaster do influence market behavior,

• 25 banks failed in 2008

The Number of Underwater Mortgages Rose at the End of 2010 -- According to

While we are no longer under a ValuEngine Valuation Warning, stocks remain

Key Levels for the Major Equity Averages

• The Philadelphia Semiconductor Index (SOX) (421.79) -- My daily value level