Why the Marine Hymn Contains the Verse “To the Shores of Tripoli ”

Most Americans are unaware of the fact that over two hundred years ago the United States had declared war on Islam and Thomas Jefferson led the charge.

At the height of the eighteenth century, Muslim pirates were the terror of the Mediterranean and a large area of the North Atlantic.

They attacked every ship in sight, and held the crews for exorbitant ransoms.  Those taken hostage were subjected to barbaric treatment and wrote heart-breaking letters home, begging their government and family members to pay whatever their Mohammedan captors demanded.

These extortionists of the high seas represented the Islamic nations of Tripoli, Tunis, Morocco, and Algiers – collectively referred to as the Barbary Coast – and presented a dangerous and unprovoked threat to the new American Republic.

Before the Revolutionary War, U.S. merchant ships had been under the protection of Great Britain.  When the U.S. declared its independence and entered into war, the ships of the United States were protected by France. However, once the war was won, America had to protect its own fleets.

Thus, the birth of the U.S. Navy.  Beginning in1784, seventeen years before he would become president, Thomas Jefferson became America’s Minister to France.  That same year, the U.S. Congress sought to appease its Muslim adversaries by following in the footsteps of European nations who paid bribes to the Barbary States rather than engaging them in war.

In July of 1785, Algerian pirates captured American ships, and the Dye of Algiers demanded an unheard-of ransom of $60,000.   It was a plain and simple case of extortion, and Thomas Jefferson was vehemently opposed to any further payments.  Instead, he proposed to Congress the formation of a coalition of allied nations who together could force the Islamic states into peace.  A disinterested Congress decided to pay the ransom.

In 1786, Thomas Jefferson and John Adams met with Tripoli’s ambassador to Great Britain to ask by what right his nation attacked American ships and enslaved American citizens, and why Muslims held so much hostility towards America, a nation with which they had no previous contacts.

The two future presidents reported that Ambassador Sidi Haji Abdul Rahman Adja had answered that Islam “was founded on the Laws of their Prophet, that it was written in their Quran that all nations who would not have acknowledged their authority were sinners, that it was their right and duty to make war upon them wherever they could be found, and to make slaves of all they could take as Prisoners, and that every Musselman (Muslim) who should be slain in Battle was sure to go to Paradise.”

Despite this stunning admission of premeditated violence on non-Muslim nations, as well as the objections of many notable American leaders, including George Washington, who warned that caving in was both wrong and would only further embolden the enemy, for the following fifteen years the American government paid the Muslims millions of dollars for the safe passage of American ships or the return of American hostages.  The payments in ransom and tribute amounted to over twenty percent of the United States government annual revenues in 1800.

Jefferson was disgusted.  Shortly after his being sworn in as the third President of the United States in 1801, the Pasha of Tripoli sent him a note demanding the immediate payment of $225,000 plus $25,000 a year for every year forthcoming.  That changed everything.
Jefferson let the Pasha know, in no uncertain terms, what he could do with his demand.  The Pasha responded by cutting down the flagpole at the American consulate and declared war on the United States.  Tunis, Morocco, and Algiers immediately followed suit.     Jefferson, until now, had been against America raising a naval force for anything beyond coastal defense, but, having watched his nation be cowed by Islamic thugery for long enough, decided that is was finally time to meet force with force.

He dispatched a squadron of frigates to the Mediterranean and taught the Muslim nations of the Barbary Coast a lesson he hoped they would never forget.  Congress authorized Jefferson to empower U.S. ships to seize all vessels and goods of the Pasha of Tripoli and to “cause to be done all other acts of precaution or hostility as the state of war would justify.”

When Algiers and Tunis, who were both accustomed to American cowardice and acquiescence, saw the newly independent United States had both the will and the right to strike back, they quickly abandoned their allegiance to Tripoli.  The war with Tripoli lasted for four more years, and raged up again in 1815.  The bravery of the U.S. Marine Corps in these wars led to the line “to the shores of Tripoli” in the Marine Hymn, and they would forever be known as “leathernecks” for the leather collars of their uniforms, designed to prevent their heads from being cut off by the Muslim scimitars when boarding enemy ships.

Islam, and what its Barbary followers justified doing in the name of their prophet and their god, disturbed Jefferson quite deeply.

America had a tradition of religious tolerance, the fact that Jefferson, himself, had co-authored the Virginia Statute for Religious Freedom, but fundamentalist Islam was like no other religion the world had ever seen.  A religion based on supremacism, whose holy book not only condoned but mandated violence against unbelievers, was unacceptable to him.
Any doubts, just “Google Thomas Jefferson vs. the Muslim World.”

Wednesday Evening 9/2

Rod of God secret space weapon analysis: Precision-guided munition calculations show it’s possible to strike almost any target on Earth from orbit with 3-4 tons of TNT explosive equivalent

http://www.naturalnews.com/050890_Rod_of_God_secret_space_weapon_Tianjin_explosion.html

(NaturalNews) After publishing an article last week which explained that dissidents in China believe Tianjin was hit by a “Rod of God” secret space weapon from the Pentagon, I’ve looked more closely at the physics and telemetry control required to place such a weapon on target.

Some observers have come to the conclusion that the complexity of such a weapon system is too high for it to be a reality. They’ve cited several reasons for their skepticism, including the difficulty of overcoming orbital velocity, atmospheric re-entry problems, flight telemetry and so on. Some have also questioned whether the kinetic energy of such an object would be large enough to make any sort of meaningful impact on a ground-based target.

However, after analyzing the capabilities already found in today’s precision-guided munitions — such as Raytheon’s Excalibur guided artillery projectile, I’ve come to the conclusion that today’s weapons technology is more than sufficient to build and deploy a functioning “Rod of God” orbital kinetic weapon platform.

The following photo shows the Raytheon precision-guided artillery projectile striking a target within about 2 meters after being fired from 33km away:

Furthermore, I’ve shown some estimated math, below, that indicates how a “Rod from God” space-based weapon could deliver 3-4 tons of TNT explosive equivalent to any land-based target on Earth. This is precisely in the range that was reported for the first explosion at Tianjin.

Guided munitions have a wide range when dropped from high orbit

The primary objection to the “Rod of God” weapons system says that such a system can essentially only drop weapons onto targets that are directly beneath the orbiting platform.

However, this objection doesn’t pan out. In reality, laser-guided bombs (LGBs) and other precision munitions have remarkable lateral maneuverability even though they possess no thrust or rockets themselves. By simply altering small control surfaces, they can “glide” laterally onto designated targets that are far from being “directly beneath” the launch platform.

For example, this Raytheon video show a precision-guided artillery shell striking numerous targeted within 1.6 meters, even after flying 33km or more through unknown winds after being fired from an artillery cannon.

Excalibur: pinpoint precision tool for eliminating enemy threats

https://www.youtube.com/watch?v=m6yNpNZM6fs

Some observers have stated that guided munitions (“rods”) could not survive re-entry into the atmosphere. However, guided munitions already exist that are ridiculously hardened, including the “BLU-122-5000 pounds, with internal components able to survive 10,000 Gs of lateral acceleration and still function at the bunker level,” reports MilitaryAerospace.com.

Keep in mind, too, that precision-guided artillery shells obviously survive being shot out of an artillery cannon, subjecting them to extreme heat, acceleration and friction forces.

Orbital velocity is not a limitation

Some people who object to the idea of Rod of God space weapons incorrectly state that the orbital space platform would be placed at too high an orbital velocity relative to the Earth, requiring kinetic weapons to need excessive “braking” in the atmosphere to bleed off lateral orbital speeds so that they could drop vertically onto intended targets.

This objection incorrectly assumes that the Rod of God platform is in low Earth orbit, requiring orbital speeds of around 8km/s relative to the planet to stay in orbit. The assumption is false, however. The farther the orbit from the planet, the smaller the relative orbital speed differential. For example, if you place a satellite into geostationary orbit (35,786 km), its relative orbital velocity to the planet’s ground speed is exactly ZERO (which is the whole point of a geostationary orbit).

Interestingly, if you place a Rod of God weapons platform into a semi-synchronous orbit at a distance of 20,350km from the planet, the platform will orbit the planet every 12 hours while maintaining very slow velocity relative to the movement of the land below. A semi-synchronous orbit (or a quad-synchronous orbit with a 6 hour orbital period) would allow the Rod of God platform to (nearly) cross over the continents twice per 24 hour period, all while maintaining an orbital velocity of just 3.86km/s (a velocity that’s even lower, relative to the ground, if the orbit is placed in alignment with the Earth’s rotation). From this orbital altitude, a rod could be dropped onto the planet in a matter of just a few hours (the actual orbital decay time depends on orbital velocity, angle of trajectory and other factors).

These orbital velocities, by the way, only speak to the relative speed of the launch platform compared to the movement of the Earth’s land mass. They don’t address the more important question of the vertical “drop” velocity of the rods. Next, I examine the vertical drop and the kinetic energy delivered on target.

Vertical drop and kinetic energy

As you ponder this issue, remember that in space, every planet rests at the bottom of a so-called “gravity well.” Ground zero is the bottom of the well, and high orbit is high above the well. The higher you are (i.e. the greater your distance from the planet), the greater the kinetic energy you have “stored” in the object you’re dropping onto the planet. In space, in other words, the “high ground” is high orbit.

Tactically speaking, you want to maximize the energy delivered to the intended target by the Rod of God weapon, and this means you want to maximize the velocity at which the rod strikes the ground (without burning up your rod in the atmosphere). Because energy = one-half the mass times velocity squared, the velocity achieved here is far more important than the mass itself.

Essentially, you want to “drop” a rod from a very high orbit in order to maximize its velocity and energy. Because the acceleration of gravity is 9.8 meters per second per second (on Earth, anyway), the higher you place the orbital platform the higher the velocity of the object when it strikes the atmosphere.

Naturally, there is a limit to the speed a given object can maintain in free-fall through atmosphere. This is called “terminal velocity,” and the more aerodynamic your object (i.e. the less drag it has), the higher the terminal velocity in atmosphere. If your object is moving too quickly, it can be “burned up” in the atmosphere (obliterated by frictional forces). So there is a practical limit to the velocity your object can survive.

A large, high-density rod with a tapered leading and trailing edge would slice through the atmosphere with very little drag, maintaining a relatively high velocity until impact, thereby carrying the maximum kinetic energy to the target. Tactically speaking, you would want to drop these rods from the highest altitude possible without exceeding their survivable speed limit upon striking atmosphere.

I don’t personally have the materials science background to know what sort of materials and densities are capable of achieving this. Such data, if it exists, would obviously be classified top secret, which means Hillary Clinton probably emailed it to somebody from her unsecured mail server.

While I can’t give you exact answers here — and I welcome a more accurate analysis on this from rocket scientists who want to chime in — I can take an educated guess on what’s possible with today’s exotic materials:

According to Apollo by the Numbers, most of the later Apollo capsules — with men living inside them — re-entered the atmosphere at velocities of around 36,000 feet per second, or over 10 km/s. This is both lateral speed and vertical speed, by the way, with the vast majority of this velocity appearing in the lateral (orbital) vector, not the vertical vector.

Note that the Apollo capsules are not aerodynamic by any stretch of the imagination. They are shaped to brake in the atmosphere, bleeding off velocity in exchange for heat generation by molecular friction impacting the capsule’s heat shield. If you are designing an unmanned kinetic weapon, you don’t need to bleed off speed. In fact, you want to maintain maximum vertical speed through the atmosphere so that the maximum energy can be delivered on target.

If the Apollo capsule can withstand 10 km/s re-entry speed at the upper layers of Earth’s atmosphere (where the molecular density is thin), we can reasonably guess that an exotic rod-shaped kinetic weapon made entirely of high-density materials and shaped with a ridiculously low drag coefficient could likely enter at four times that velocity, or 40 km/s.

Slicing through atmosphere will, of course, cause dramatic friction on the object, creating heat and a braking effect. What’s the terminal velocity of such an object? We have some simulation data to help answer this question.

According to this scientific simulation paper from Defence Science Journal (Defence Science Journal, Vol. 64, No. 6, November 2014, pp. 502-508, DOI : 10.14429/dsj.64.8110), the terminal velocity of a supersonic artillery shell is roughly 1km/s in low-Earth atmosphere.

A higher density “rod” weapon designed with exotic materials and dropped from high Earth orbit would obviously arrive on target at some velocity higher than 1km/s, but we don’t know how much higher. Conservatively, let’s estimate four times the velocity of an artillery shell, or 4km/s. In case you’re curious, this is roughly Mach 12.

Can anything really move through the atmosphere at Mach 12?

According to MissileThreat.com, a cruise missile under development right now will propel itself at Mach 7:

BrahMos-II is a hypersonic cruise missile currently under joint development by India’s Defence Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroeyenia. It is the second of the BrahMos series of cruise missiles. The BrahMos-II is expected to have a range of 290 kilometres (180 mi) and a speed of Mach 7 (8,575 km/h; 5,328 mph; 2.3820 km/s). During the cruise stage of flight the missile will be propelled by a scramjet airbreathing jet engine. It is expected to be ready for testing by 2017.

Back to the Rod of God, the greater question here, however, is whether the rod can survive the atmospheric re-entry speed that’s necessary to result in it striking the ground at 4km/s.

In other words, if V1 is the velocity of entry into the atmosphere, then the equation we are pondering is:

4km/s = V1 – B1
V1 = velocity upon entering the atmosphere
B1 = velocity reduction caused by braking in the atmosphere

The real question here is: Can a “Rod from God” weapon survive V1? Or will it “burn up” from friction with the atmosphere? We can’t know the answer to this, and the Pentagon isn’t telling. But we can guess that the space weapons industry is at least two decades ahead of what they’re telling the public.

Delivering 4 tons of TNT equivalent kinetic energy onto the target

Here’s the math of the kinetic energy delivered to the target:

At 4km/s upon impact, a mass of, say, 2000kg (a two-ton rod) would deliver:

Kinetic Energy (Joules) = 0.5 x 2000 x (4000 ^ 2)

Answer = 16,000,000,000 Joules
or 16 billion Joules.
or stated as 16 x 10^9.

The atomic bomb dropped on Hiroshima unleashed approximately 64 TJ (terajoules), or approximately 4,000 times the kinetic energy of our Rod of God weapon.

Because one ton of TNT is equivalent to 4.184 × 10^9 joule (J), if our exotic rod weapon unleashes 16 x 10^9, then it delivers the energy of four tons of TNT onto the target.

Is four tons of TNT useful as a tactical weapon? If you can deliver it on target from space, it certainly is!

First Tianjin explosion was reported as 3 tons of TNT equivalent

Interestingly, this is right in line with the reports from Tianjin, China, where two explosions took place. It was widely reported in the media that the first explosion represented about 3 tons of TNT, setting off a secondary explosion that reached about 21 tons of TNT.

From CNBC.com:

The second blast was equal to about 21 tons of TNT exploding, while the first was the equivalent of about 3 tons of TNT, according to numerous reports.

In other words, a “Rod of God” weapon could have conceivably achieved a 3-ton TNT equivalent, and if delivered directly on target, it could have easily set off the secondary chemical explosion.

How could the Rod of God reach targets that aren’t directly underneath it?

Those who are assuming the Rod of God orbital weapons platform must drop the rods STRAIGHT down are making a tremendous error. No such limitation exists in space. There’s no reason why the launch platform can’t rotate before launching the rod on a desired trajectory, and there’s no reason why a rod can’t have a small, detachable thruster motor that works in space (yet detaches before atmospheric re-entry).

The initial trajectory angle of the Rod of God upon launch could allow it to reach almost any land-based target on the planet below. A relatively small thrust charge ignited after launch could drive the trajectory in any direction in space. This is especially the case if the launch platform is orbiting far from the planet, allowing more time for launch vectors to alter the final arrival destination below.

Once the rod reaches atmosphere, small changes in control surfaces could easily glide the rod to within 2 meters of any intended target on impact, using the exact same technology that already exists in precision munitions on Earth (tiny adjustable surfaces near the tail).

In all, these three innovations would allow a space-based Rod of God weapon to hit ANY target on planet Earth:

1) The ability to rotate the platform to launch the rods at varying angles relative to the planet.

2) The ability to add thrust to the rod itself through a small, one-time rocket motor.

3) The ability to guide the rod using existing precision munitions technology that alters control surfaces in the atmosphere to deliver munitions on target.

Notably, this does not mean that the Rod of God platform can hit any target AT ANY TIME. It cannot. This is the limitation of the system. It must wait for the precise launch window of opportunity, which only appears once every few hours, depending on the placement of the orbit, the direction of the orbit relative to the Earth’s spin, and so on. However, within a given timeframe (let’s say from 6 – 24 hours), the Rod of God platform would be able to strike any target on Earth, and that’s more than sufficient for the Pentagon’s strategic bombardment requirements.

The other limitation is that from the time of launch, the Rod of God might take many hours before arriving on impact. This “time of flight” can be easily calculated if you know the orbital altitude, orbital velocity, launch velocity, launch vector and booster thrust acceleration and duration. Depending on these factors, this time of flight could reasonably be anywhere from 2 to 24 hours, I’d guess.

Importantly, note that nearly all the important guidance takes place before the rod enters the atmosphere. Once in the atmosphere, it can only achieve minor lateral movement for fine adjustments. I’m guessing that the lateral movement range through the atmosphere is no more than 10 miles (the atmosphere is about 60 miles thick, roughly speaking). So once the rod drops into the atmosphere, it needs to be within 10 miles of the target in terms of lateral position (or headed on a path that takes it to within that window).

That’s why most of the positioning of the rod must happen in orbit, and this is why the launch angle and rocket boost after launch are so important to it striking its intended target on land.

Conclusion: The Rod of God concept seems feasible, but we can’t know the Pentagon’s secrets to confirm it

Here, I’ve shown that the kinetic energy delivered by a “Rod of God” weapon could reasonably match the first explosion observed in TianJin. I’ve also explained why the orbital velocity and atmospheric re-entry objections are not show-stoppers.

The biggest question, in my opinion, is whether a rod can survive the extremely high forces of friction with the atmosphere as it plummets toward its target at very high velocities (Mach 12, for example). This is primarily a materials question, and there’s no way we can know for sure what sort of exotic materials the Pentagon has developed.

One thing we can know with 100% certainty, however, is that the Pentagon doesn’t publicly disclose its space weapons secrets. If it does possess a Rod of God space weapon, it sure isn’t going to announce it to anyone. Especially given how amazingly useful such a weapon would be for the stealth striking of enemy targets anywhere on the planet.

Remember: if this weapon exists, it puts a weapon on target while producing no apparent launch signature. This is, in every way, a stealth weapon that no one can stop once it’s launched. You wouldn’t even be able to see it approaching, either. Dropping through the atmosphere at Mach 12, it would strike the target like a bolt from the heavens, causing enormous destruction and leaving quite a large crater in the ground, just like we saw at Tianjin.

Learn more: http://www.naturalnews.com/050890_Rod_of_God_secret_space_weapon_Tianjin_explosion.html#ixzz3kdShvxNX

Jesse’s Cafe’ 9/2 (Interesting article at the End)

http://jessescrossroadscafe.blogspot.com/

Gold Daily and Silver Weekly Charts – Silver Stronger as Gold Capped

Gold was hit early and then held lower most of the day in NY trade after some strength overnight.

You might make a rubber stamp out of that sentence and it would serve as the daily commentary for most occasions.

Silver showed a little more life, but still remains quite undervalued relative to gold.

The action in the warehouses yesterday was a bit telling, especially if you look at JP Morgan. They withdrew quite a chunk of the gold which had been up for delivery during the active month.  The current amount of ‘deliverable’ gold at these prices is back down to 324,677 troy ounces, or about 11 tonnes.

I think the hypothesis that suggests that JPM is a key member of the existing Gold Pool, and perhaps with a hand in silver as well, is not a bad one to keep in mind.   They are certainly the major source of silver bullion at The Bucket Shop, and the seeming captain of the gold supply to facilitate delivery at lower than market clearing prices as needed.

But time alone will tell.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts – Rebound On Weak Economic News

US equities caught a rebound today largely on selling exhaustion and weaker than expected ADP employment and economic news in general.

The preoccupation with the Fed interest raise of 25 basis points is almost getting silly. It is largely symbolic, and will have little to no effect on the economy.

It does distract from the real problems of an outsized financial sector, a rapacious one percent that is exerting undue influence on political and fiscal policy, and of course, stagnant wages and underemployment fostering a continuing weakness in aggregate demand.

I do not expect these problems to be address now until there are a major series of events that cause the political leadership to confront reality and take a break from their quest for personal riches beyond their reckoning.

Have a pleasant evening.

“The Know-Nothing party was a U.S. political party that flourished in the 1850s. The Know-Nothing party was an outgrowth of the strong anti-immigrant and especially anti-Roman Catholic sentiment that started to manifest itself during the 1840s. A rising tide of immigrants, primarily Germans in the Midwest and Irish in the East, seemed to pose a threat to the economic and political security of native-born Protestant Americans.

In 1849 the secret Order of the Star-Spangled Banner formed in New York City, and soon after lodges formed in nearly every other major American city.

Members, when asked about their nativist organizations, were supposed to reply that they knew nothing, hence the name. As its membership and importance grew in the 1850s, the group slowly shed its clandestine character and took the official name American Party. As a national political entity, it called for restrictions on immigration, the exclusion of the foreign-born from voting or holding public office in the United States, and for a 21-year residency requirement for citizenship.

By 1852 the Know-Nothing party was achieving phenomenal growth. It did very well that year in state and local elections, and with passage of the Kansas-Nebraska Act in 1854 it won additional adherents from the ranks of conservatives who could support neither the proslavery Democrats nor antislavery Republicans. When Congress assembled on Dec. 3, 1855, 43 representatives were avowed members of the Know-Nothing party.

That, however, was the peak of Know-Nothing power. At the American Party convention in Philadelphia the following year, the party split along sectional lines over the pro-slavery platform pushed through by Southern delegates.”

Britannica, Know Nothing Party

“I am not a Know-Nothing. That is certain. How could I be? How can any one who abhors the oppression of negroes, be in favor of degrading classes of white people? Our progress in degeneracy appears to me to be pretty rapid. As a nation, we begin by declaring that ‘all men are created equal.’ We now practically read it ‘all men are created equal, except negroes.’

When the Know-Nothings get control, it will read ‘all men are created equal, except negroes, and foreigners, and catholics.’ When it comes to this I should prefer emigrating to some country where they make no pretence of loving liberty- to Russia, for instance, where despotism can be taken pure, and without the base alloy of hypocrisy.”

Abraham Lincoln, Letter to Joshua Speed, August 24, 1855

The Know Nothing Party enjoyed a localized resurgence in the post Civil War period as the Ku Klux Klan, which held a deep prejudice against Black, Catholic, and Jewish Americans and ‘foreigners’.  It favored the use of violence and terror.  The first Klan was a purely Southern phenomenon that died out around 1870.

The resurgence of the Klan was prompted by D. W. Griffith’s glamorized portrayal of the Klan in 1915’sBirth of a Nation.  The 1920’s was its period of greatest and most widespread power.  It gradually declined in the Second World War.

“The second Klan grew primarily in response to issues of declining morality as typified by divorce, adultery, defiance of prohibition, and criminal gangs In the news every day. Secondly, it was a response to the growing power of Catholics and American Jews with non-Protestant cultural values.  [prejudice against Black Americans and foreigners is always assumed in these movements.]

By the mid 1920s the second Klan had a nationwide reach, with its densest per capita membership in Indiana. The Klan became most prominent in cities with high growth rates between 1910 and 1930, as rural Protestants flocked to jobs in Detroit, and Dayton in the Midwest; and Atlanta, Dallas, Memphis, and Houston in the South. In Michigan, close to half of the state’s 80,000 Klansmen lived in Detroit.”

The nativist movements are just another nearly forgotten chapter of American history that seem to recur whenever change and turmoil arises.

MOOC | Political Nativism | The Civil War and Reconstruction, 1850-1861 |

https://www.youtube.com/watch?v=5rRv7OUhn54

Jim Sinclair’s Mineset for 9/1 & 9/2

Posted at 12:52 PM (CST) by & filed under In The News.

ADP Misses Again, Drops YoY For 7th Month In A Row
Submitted by Tyler Durden on 09/02/2015 08:23 -0400

Following its disappointing tumble in July (having missed expectations for 6 of the last 7 months), August ADP printed another miss at 190k against expectations of a 200k rise with last month revised lower. As the energy sector continues to bleed jobs at a rate of 10k per month, ADP’s Zandi notes that manufacturing jobs growth is all auto-related (which is extremely worrying given the size of inventories). Job growth was largely driven by small businesses (85k) as opposed to large business (40k) with Service-producing goods drastically outpacing manufacturing job growth (173k to 17k). Perhaps most notably, ADP jobs data has dropped YoY for the last months

Not exactly escape velocity…

 

But the year over year data is ugly…

 

More…

 

Posted at 12:42 PM (CST) by & filed under Jim’s Mailbox.

Jim,

I found this interesting.  The subject keeps coming up on the web consistently.

Keeping your money in cash will be illegal, keep it in banks and you’ll be taxed until you spend it.

Remember this, in America frugality and fiscal responsibility are frowned upon.

The Fed no longer has any firepower to hold the markets up so, they’ll encumber its citizens with the task… by spending EVERYTHING they own.

CIGA Wolfgang Rech

The Case for Outlawing Cash
By BILL BONNER on September 2, 2015

Retiring Another “Barbarous Relic”

Last week, the influential Financial Times newspaper ran an article calling for the abolition of cash. It was titled “The case for retiring another ‘barbarous relic.’” And it claimed that cash causes “a lot of distortion in the economic system.” 

Can you believe it?

Cash causes economic distortions! From the FT:

The existence of cash – a bearer instrument with a zero interest rate – limits central banks’ ability to stimulate a depressed economy.

The worry is that people will change their deposits for cash if a central bank moves rates into negative territory. It also repeated the familiar claims that cash also is what finances terrorism, tax evasion, and the black market. Making cash illegal, it says, would “make life easier for a government set on squeezing the informal economy out of existence.”

More…

 

Jim,

And yet another article on banning cash and bank deposits! This time it’s Sweden.

I’m getting the feeling that “moving your money to another country” is NOT an option anymore!

That leaves only one resource left… GOLD.

CIGA Wolfgang Rech

Meanwhile, In Sweden, Banks Are Refusing To Open Savings Accounts
Submitted by Tyler Durden on 09/02/2015 – 12:51

The problem is that if you go NIRP and still are not able to achieve the kind of economic outcomes you were looking for by essentially forcing depositors to choose between a tax on their savings and pulling money out and spending it, well then the next logical thing to do is to stop accepting deposits, which is apparently what it’s come to in Sweden.

More…

 

Jim,

The pawn in this contest is… oil.

Just another nail in the coffin of “free markets.”

“And now, as Russia’s economy collapses under the weight of American and European sanctions, including what many believe to be widespread downward manipulation of oil prices, Vladimir Putin is sending a clear signal to the central bank of the world’s reserve currency.”

Certainly looks like the end is in sight for Dollar Hegemony.

CIGA Wolfgang R.

Putin Targets US Monetary System: “Aims To Eliminate US Dollar From Trade”
Submitted by Tyler Durden on 09/02/2015 – 11:48

Something is afoot as de-dollarization escalates around the world. With CNY/RUB trading volumes up a stunning 400% year-over-year to record highs, and hot on the heels of China’s (and much of EM Asia) dumping dollar assets, Russian President Vladimir Putin has just unleashed a new bill aiming to completely eliminate the US dollar from the trade of goods.

As Putin explained last year… trade in Rubles and Yuan will weaken the dollar’s influence…

More…

 

Jim,

This has caught my attention:

“Never before have so many of the most important countries in the world printed so much money and left base rates at near zero for so long.

Also never before has the largest economy in the world tried to start a slow process of reversing said extraordinary policy.” –From DB’s Jim Reid

With the economies so weak and vulnerable, why begin the tightening process now?  Could it be the specter of hyperinflation on the horizon that dictates this policy?

I can think of no other reason.  None!

CIGA Wolfgang Rech

“The Biggest Problems We Face Is That We’re All Flying Blind To A Large Degree” Warns Deutsche Bank
Submitted by Tyler Durden on 09/02/2015 – 08:06

“One of the biggest problems we face is that there is no historical template for current global market conditions so we’re all flying blind to a large degree.

Never before have so many of the most important countries in the world printed so much money and left base rates at near zero for so long.

Also never before has the largest economy in the world tried to start a slow process of reversing said extraordinary policy. So there is no road map for this journey, only educated (hopefully) predictions.”

More…

Posted at 10:08 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

Briefly and in plain English I would like to explain this to you. The “VIX” index, otherwise known as the fear “index” has been a major tool of the PPT and Associates in supporting the stock market. A “low” number is indicative of little fear while a high number shows more fear.  In an effort to support equities, this index has clearly been suppressed in price by selling more shares short than even exist.  (Does this sound familiar to gold and silver investors?).  This now poses a VERY BIG PROBLEM!

Plain and simple, with more shares short than exist, a short squeeze for the ages has been set up.  Knowing a big move upward in the VIX is also synonymous with lower stock prices, one can extrapolate (along with many other technical and fundamental weaknesses) a market crash of epic proportions will happen whenever this short squeeze is actually covered.  The “squeeze” has already begun with the VIX running up to 31.8 as of this writing.  The “crash” has also started worldwide if you have been paying attention.  In my opinion, the “short covering” has the potential to push the VIX index to all time high prices.  Greater than 2001, 2008 and even 1987.  Can you guess what this will mean to averages like the Dow Jones, S+P 500 or the NASDAQ???

Standing watch,

Bill Holter,
Holter-Sinclair collaboration
Comments welcome! bholter@hotmail.com

VIX ETFs Are In Crisis Mode
Submitted by Tyler Durden on 09/01/2015 13:21 -0400

That’s what happens Larry when there are 64 million shares short and only 52.3 million shares outstanding…

VXX (Long VIX ETF) is exploding higher amid the short squeeze…

XIV (Inverse VIX ETF) is reflexively puking to new lows…

And that is dragging stocks lower…

More…

Posted at 10:02 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Tighten now, Janet!

US Manufacturing Plunges To 2-Year Lows As New Orders, Employment Tumble
Submitted by Tyler Durden on 09/01/2015 10:06 -0400

Following disappoint PMIs from around the world, the US decoupling meme took another knock today as Markit PMI printed 53.0 (from 53.8) – its lowest in almost 2 years, led by a plunge in the employment subindex. Weakness was also evident in new factory orders. As Markit notes, ”U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty.” On the heels of Milwaukee and Dallas Fed weakness, ISM Manufacturing printed a disastrous 51.1 (vs 52.5 expectations) – the lowest since May 2013. Employment tumbled, as did New Export orders, but unadjusted New Orders plunged to its lowest since 2013, which is a problem given the massive inventory builds that have saved the world in the last few months.

Manufacturing worst since Oct 2013…

And under the surface it is ugly..

*MARKIT AUGUST FACTORY EMPLOYMENT GAUGE DROPS TO ONE-YEAR LOW

*MARKIT AUGUST FACTORY ORDERS INDEX FALLS TO 54.7 FROM 55.4

As Markit summarizes,

“August’s survey highlights that the U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty, but resilient domestic spending and subdued cost pressures are keeping the recovery on track. Reflecting this, new orders from abroad have now fallen in four of the past five months, which represents the weakest phase of manufacturing export performance since late-2012.

“In response to softer growth momentum, manufacturers took a more cautious approach to staff hiring and inventories in August. Stocks of finished goods were depleted for the first time in 2015 so far, and job creation was the weakest for over a year, as some firms sought to realign production schedules with expectations of sluggish growth trends ahead.”

More…

 

Jim Sinclair’s Commentary

Screw the public and take care of the real good ole boys.

NYSE invokes Rule 48 in effort to smooth market open
By William L. Watts
Published: Sept 1, 2015 9:17 a.m. ET

The New York Stock Exchange on Tuesday invoked Rule 48, a measure designed to smooth the opening of the market amid potentially volatile conditions. The rule allows the exchange’s designated market-makers to refrain from disseminating price indications ahead of the opening bell, making it easier and faster to open stocks on days when trading could be volatile.

More…

 

Jim Sinclair’s Commentary

Today’s Mensa Award for brilliance.

Teen impersonates policeman, tries to pull over a real cop
By Julie Zauzmer August 31 at 7:47 PM 

A Manassas teenager pretending to be a police officer tried to stop another driver on Sunday.

Unbeknown to him, that driver was a real policeman.

Prince William County police said that the real officer saw a blue Pontiac G6 following him with blue lights flashing on Sudley Manor Road at about 12:30 a.m. on Sunday.

The officer thought the vehicle behind him looked suspicious, so rather than pulling over for the flashing lights, he called police.

The driver of the Pontiac, realizing that the man he was following was not stopping, turned off his lights and sped away. But the officer followed the Pontiac, and reported the license plate number and location to police.

More…

 

Putin says dump dollar
Published time: 1 Sep, 2015 09:06

Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

The bill would also help to facilitate trade in the region and help to achieve macro-economic stability.

https://www.youtube.com/watch?v=hlyIuFJ9SVs

Within the framework of the Eurasian Economic Union (EEU) the countries have also discussed the possibility of switching to national currencies. According to the agreement between Russia, Belarus, Armenia and Kazakhstan, an obligatory transition to settlements in the national currencies (Russian ruble, Belarusian ruble, dram and tenge respectively) must occur in 2025-2030.

Today, some 50 percent of turnover in the EEU is in dollars and euro, which increases the dependence of the union on countries issuing those currencies.

Outside the CIS and EEU, Russia and China have been trying to curtail the dollar’s dominance as well.

More…

Posted at 10:44 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

I must apologize to readers.  Shanghai has in fact reported deliveries for the last two weeks, I reported this incorrectly when writing they have not reported.  We try to be as accurate as possible but occasionally we err.  That said, “something” has definitely changed over the last 2-3 weeks as evidenced by market gyrations and volatility.  I stand by the rest of what was written, the knowledge something is different or changed should tell you past or existing trends in place should also be questioned.  Stay vigilant as volatility “kills” in an over levered system.
Standing watch.

Bill Holter
Holter-Sinclair collaboration

 

Dear CIGAs,

“Something” happened three weeks ago.  While we cannot be sure “what” exactly happened, we can speculate.  We have many dots and lots of data points to help us but first it needs to be pointed out, even if wrong in conclusion …just the knowledge alone that “something changed” is enough.  If you know something has changed, you can take clues and look at various markets for inflection points.  Currently, most markets are stretched to various limits.  Whether it be zero bound credit markets, equities, real estate, commodities or gold and silver, all values had reached extreme highs or lows.

Something changed three weeks ago and a series of events began.  It all started with China announcing 600 additional tons of gold.  This was followed by the IMF rebuff of China, the three yuan devaluations and three “coincidental” explosions.  Then equity markets around the world (which were already weak) began to violently unravel and finally spilled over to the U.S..  This tested the PPT’s limits (which were apparently $23 billion last week).

There were other behind the scenes dots which I missed and would like to add here before theorizing.  In the gold arena, the GLD inventory supposedly rose over the last two weeks even though gold was “weak” and being sold.  This was against a backdrop of very deep backwardation going out a full six months in London.  The current backwardation is further out in time and far larger in price than EVER before!  These two data points are in exact divergence to a dropping gold price.  Why would there be buying in GLD if gold was being panic sold?  Also, if real gold was being dumped, how could it be in backwardation or shortage?  Wouldn’t “sales” make product extremely plentiful?

There were several more major anomalies in gold.  As of Friday, there were 63 August contracts still open …even though the contract went off the board.  This has NEVER happened in 40 years!  How is this possible?  The day before on Thursday, there were 552 contracts open.  Can someone please explain to me why the shorts would not have delivered gold (like they did in the old days) on the first or second delivery day rather than waiting to the last day?  Someone has to pay for storage, why would the short want to pay for storage they are contractually able to deliver nearly 30 days prior and avoid the charges.  Are they having problems sourcing gold?  Just like several mints who have gone to rationing or halts of production …and exactly as the backwardation is suggesting?

Over in silver, did you know they had confirmed volume on Thursday of 122,482 contracts traded?  Did you know this represents 612 MILLION ounces of silver …or over 87% of annual global silver production ex China and Russia?  How in the world does 87% of a full year’s production trade in just several hours?  Doesn’t this go against commodity laws?  AND, silver was pummeled on Thursday so it was supposed to represent PANIC SELLING.  Who was panicking and needed to sell all that silver so fast?  …especially since the U.S. Mint just raised premiums and started rationing dealers because they couldn’t keep up with DEMAND!  Let’s not forget the Royal Canadian Mint, they have suspended sales of silver Maples!  Why or how could this be?  Everyone has been selling silver but the mint could not source any?  This defies pre school logic!

Let me give you another very strange data point.  The FRBNY (New York Fed.) always reports custodial gold holdings on the 28th or 29th of the month for the previous month.  They missed July 29th and reported on August 20 NO GOLD was shipped (to Germany for their repatriation program) when month after month they have been reporting close to 10 tons out the door.  What’s going on?

Before telling you what I think has changed, we need to look at what China has just done.  China has sold $100 billion worth of Treasury bonds over the last two weeks.  Before they sold these, they devalued their yuan by about 5% which is the same thing as making their dollar holdings worth 5% more in yuan …so they increased their sale by the equivalent of $5 billion!  Please understand the following because it is VERY important, we have not experienced hyper inflation in the U.S. because the debt was always “sterilized”.  We actually exported the inflation to other nations and as long as they did not sell the actual dollars (if they sold Treasuries), the trade remained sterilized.  It was reportedFriday China had actually sold their dollars realized from the Treasury sales for …you guessed it YUAN!  This drove the yuan up versus the dollar so China added even more to their trade.  Brilliant!

This topic deserves an entire writing and I’ll undertake it later.  Suffice it to say, the Federal Reserve had to buy the $100 billion worth of bonds.  This is “reverse” QE or as they now say “QT” (quantitative tightening).  As the great credit unwind continues, more and more Treasuries from China and other sources will hit the market and force the Fed to buy them.  This will take more and more “space” on the Fed’s balance sheet but they will have NO CHOICE unless they want interest rates to skyrocket.  In the end, the inflation we exported for so many years will come washing back on our shores like a tidal wave!

OK, what do I think “happened” three weeks ago?   On the original writing, I erroneously believed the SGE had not reported withdrawals for the last two weeks, this was incorrect and they have in fact reported withdrawals.  This led me to believe China was no longer being delivered gold.  No proof of this yet but it will mathematically happen.  Why?  Because the simple math says so.  China/India can only import more than total production for as long as Western vaults have metal to dishoard.  Once non delivery does happen  and becomes known, our hoard of “power” will be gone and so will the façade of financial strength.  Our standard of living will collapse into third world status hand in hand with a broken financial system.

Something behind the scenes has caused markets all over the world to convulse.  The likely candidate involves leverage and most probably derivatives.  As I wrote last week, “dead bodies must be strewn everywhere”,  call them walking dead institutions or whatever.  We have experienced 5% and even 10% moves in various markets in less than a week’s time or even in just one day.  Many derivatives are carried with just one or two percent margin, in other words the moves have been big enough to completely wipe out equity.  Winners become losers when the losers cannot pay and default.

There is one more piece of news that may be nothing at all or it may fit hand in hand with the above.  King Salman of Saudi Arabia announced a visit for this coming week with president Obama. http://www.nytimes.com/2015/08/27/world/middleeast/saudi-arabia-king-plans-to-visit-us.html?partner=rss&emc=rss&_r=0  The press has speculated the meeting has to do with the Iran deal or even aggressions with Yemen.  I don’t think so.  My guess is King Salman may be coming to Washington to say “the deal is off”.  The “deal” being Henry Kissinger’s early 1970′s petrodollar.  I suspect Saudi Arabia will inform our commandeer in chief, they will begin accepting yuan for oil.  The Saudis have over the last year or more done many trade deals with both Russia and China.  It should only follow at some point they do not use dollars but instead use their own currencies.

Before finishing, Saudi Arabia increased their oil production at the behest of Washington to injure Russia.  I think the price drop got way out of control as the algos took over.  The drop was so severe it has seized up the U.S. fracking industry and put at least $500 billion worth of energy credit in jeopardy while China has filled up her storage reserves with cheap oil.  If I am correct about the gold default, China/Russia have also made strategic strides in trade with Iran and Saudi Arabia in preparation.

The important thing is you understand “something” very big has happened and trends are changing in many markets.  The leverage in all markets suggests a “holiday” will occur because the unwinding cannot be orderly.  The “unwinding” by the way will need to undue the credit built upon credit going all the way back to Aug. 15, 1971!

Standing Watch,

Bill Holter
Holter-Sinclair collaboration
Comments welcome! bholter@hotmail.com

Wednesday Morning 9/2

Goldcore: Gold Coin Sales Surge 306% YoY In August, Silver Sales More Than Double

DAILY PRICES Today’s Gold Prices: USD 1140.00, EUR 1010.73 and GBP 746.46 per ounce. Yesterday’s Gold Prices: USD 1141.90, EUR 1012.23 and GBP 744.10 per ounce. (LBMA AM) Gold was marginally higher yesterday and closed at $1139.80 per ounce, up $4.30. Silver was 0.1% lower and closed at $14.60 per ounce. Silver in USD – 5 […]   CONTINUE READING

China Stocks Fail To Close Green Ahead Of National Holiday Despite Constant Intervention, US Futures Rebound

Since today was the last day of trading for Chinese stocks this week ahead of the 4-day extended September 3 military parade holiday to mark the 70th anniversary of the allied victory over Japan, and since Chinese stocks opened to yet another early trading rout coupled with the PBOC’s biggest Yuan strengthening since 2010 as we observed earlier, there was only one thing that was certain: massive intervention by the Chinese “National Team” to get stocks as close to green as possible. Sure enough they tried, and tried so hard the “hulk’s” green color almost came through in the last hour of trading and yet, despite the symbolic importance of having a green close at least one day this week ahead of China’s victory over a World War II foe, Beijing was unable to defeat the market even once in the latest week which will hardly bode well for Chinese stocks come next week.

Is The Stock Market Now “Too Big to Fail”?

By turning the health of the economy into a reflection of the stock market, the Status Quo has made the stock market into the one bellwether that matters. In effect, the stock market is now integral to the economy as a measure of sentiment and evidence that all is well with the economy as a whole.

US Recession Looms As Factory Orders Plunge 9th Month In A Row

US Manufacturers saw new orders rise at a modest 0.4% in July (missing expectations of a 0.9%). However, year-over-year Factory Orders crashed 14.7% (thanks in large part to last year’s Boeing order dropping out of the cycle). But even ex-Transports, New orders tumbled 0.6% in July and plunged 6.9% YoY. This is the 9th month in a row of YoY drops and is without doubt signalling an imminent US recession…

Islam expert: Did Quran come before Muhammad?
a recent report in the Daily Mail, which described how several pages were carbon-dated by experts at Oxford, who found not only were some of the pages likely from the oldest Quran in the world, they possibly were created between 568 AD and 645 AD. The dates given for Muhammad’s life often are 570 AD to 632 AD, meaning the fragment could have been in print (hand-written on parchment) two years before Islam’s founder was born.

Why America Should Be On High Alert For A Major Earthquake Along The New Madrid Fault

Did you know that a magnitude 3.5 earthquake hit the New Madrid fault about a week ago? According to Fox News, the New Madrid fault line is approximately twenty times larger than the San Andreas fault in California, and it is starting to wake up.  Most people don’t realize this, but this fault zone has produced some of the largest earthquakes in U.S. history.  In 1811 and 1812, immensely powerful earthquakes along the New Madrid fault rang church bells in Boston and permanently changed the course of the Mississippi River.  If we had similar earthquakes today, the devastation would be unimaginable.  Unfortunately for us, earthquake activity in the middle part of the country is becoming much more common.  The USGS says that the number of significant earthquakes in the middle part of the country has more than quintupled in recent years, and the USGS has publicly admitted that the New Madrid fault zone has the “potential for larger and more powerful quakes than previously thought“.  Very few Americans are talking about this right now, but as you will see below, the threat is very, very real. (Read More…)

Three cops murdered in less than a week: Another officer is found slaughtered in his Texas home amid growing safety fears and a manhunt for the Illinois cop killers who got away
http://www.dailymail.co.uk/news/article-3219157/As-manhunt-continues-Illinois-men-shot-dead-married-cop-officer-murdered-Texas-home.html#ixzz3kasFG0Zh

The discovery of the dead officer comes at the same time as police in Fox Lake, Illinois, have launched a search for three armed suspects in the death of an officer.   Charles Joseph Gliniewicz, 52, died of gunshot wounds Tuesday morning in the Chicago suburb, prompting a search for three suspicious men he was chasing just before he died.   Officer Allen’s death also came just days after a sheriff’s deputy, Darren Goforth, was shot dead at a gas station near Houston while filling up his patrol car.  The latest killing – the third in less than a week – has prompted fear among other officers.Another police death: Darren Goforth was shot dead outside Houston on Friday    According to CNN, Abilene police chief Stan Standridge said: ‘The initial reaction was fear. Why was Officer Allen chosen?

El Salvador violence up to civil war-era level

Violence involving street gangs in El Salvador left 907 people dead last month, a level of bloodshed unseen since the civil war of the 1980s, police say. They say the high numbers are due to an increase in clashes between street gangs and the security forces and rival gangs fighting each other. El Salvador is believed to have more then 70,000 gang members.

LAWSUIT: MINORITY POLICE OFFICERS SUE NYPD OVER ILLEGAL ARREST QUOTAS

A dozen black and Latino police officers are suing the New York Police Department and the city claiming that their bosses forced them to carry out illegal arrest quotas “against their own minority community.” The NYPD has denied ever using quotas. The class action lawsuit, filed in the Manhattan federal court on Monday, argued that by forcing police officers to comply with the “illegal quota system,” New York City and the NYPD subjected black and Latino cops to unfair evaluations and discipline, according to the New York Post.

UNIVERSITY STATISTICIAN SUING GOVERNMENT OVER ALLEGED RAMPANT VOTER FRAUD

During every election cycle, politicians, the media, and citizens alike sing the praises of democracy and the power of the “vote.” The ritual is often lauded as the pinnacle of human achievement — assurance that politicians carry out the people’s wishes. In Kansas, however, a statistician from Wichita State University has filed an open records lawsuit to investigate what she worries may be evidence of voter fraud. Tellingly, since she initially filed the suit in April, authorities have attempted to block her request for voter records.

IDF puts finishing touches on mass evacuation plan in case of war with Hezbollah
Israeli authorities have already made contingency plans in the eventuality that hostilities are re-ignited with the Shi’ite group Hezbollah just over the border in Lebanon. According to the latest emergency plans formulated by the IDF, residents of the northern frontier towns that are in closest vicinity to the border will be evacuated. These communities would instead be used to quarter soldiers from elite units.

A new, deadly drug is extremely popular among high-school students
Synthetic cannabinoids, commonly referred to as synthetic marijuana, are a new deadly drug that are soaring in popularity among high-school-aged students, according to the US Drug Enforcement Administration.

FROM THE WAR ON TERROR TO THE WAR AT HOME: FBI SEEKS SMALLER, FASTER BIOMETRIC COLLECTION TOOLS

In the latest example of surveillance technology trickling down from the foreign war space to the domestic United States, the FBI is seeking proposals for the creation of fast, mobile biometric tracking devices capable of collecting face recognition prints and fingerprint scans on the go, and comparing them to information held in federal databases.

Sheep Led To The Slaughter: The Muzzling Of Free Speech In America
The architects of the American police state must think we’re idiots. With every passing day, we’re being moved further down the road towards a totalitarian society characterized by government censorship, violence, corruption, hypocrisy and intolerance, all packaged for our supposed benefit in the Orwellian doublespeak of national security, tolerance and so-called “government speech.”

Financial Facts and Shemitah Predicting Calamity Coming-Jeff Berwick

(WATCH THIS ONE)

By Greg Hunter’s USAWatchdog.com

Published on Sep 1, 2015

On gold, financial expert Jeff Berwick thinks, “Just in the last few weeks, I have noticed a change. When the markets have been crashing, gold has hung in very well, and even gold stocks have started to bounce. That is unusual because that didn’t happen the last few times. It is actually getting very hard to buy physical gold or silver anywhere in the world. You definitely can’t buy it at its current spot price. A lot of them are selling it at multiples of the current price. The physical price of gold and silver is totally diverging from what they say the price is on the futures market. I think this divergence is only going to widen. If they do go to QE4, we are going to see gold skyrocket. It is looking very good for precious metals and very bad for the stock market. If the stock market does rise, it will only be because of massive money printing that will cause massive economic destruction.”  The wild card is the war card, and on that, Berwick says, “There is a lot of calamity out there, and it is not just in the financial markets. Look at military around the world and wars. The U.S. is all over the world right now trying to start wars everywhere, including in the Ukraine and Syria. There is saber rattling in China, and now with Russia as well. If they continue to attack Syria, of course, Iran has a pact with Syria they will get involved. China and Russia has said if Iran is attacked, they are getting involved. I see nothing but black swans ahead. So, to be in the market on the long side is insane to me at this moment.

https://www.youtube.com/watch?v=9DT4qrrRe7Q    Join Greg Hunter as he goes One-on-One with financial expert Jeff Berwick, Editor of The DollarVigilante.com.

Roll Up Your Sleeves Folks: 271 New Vaccines in Big Pharma’s Pipeline

“No vaccine manufacturer shall be liable…for damages arising from a vaccine-related injury or death.” – President Ronald Wilson Reagan, as he signed The National Childhood Vaccine Injury Act (NCVIA) of 1986, absolving drug companies from all medico-legal liability when children die, become chronically ill with vaccine-induced autoimmune disorders or are otherwise disabled from vaccine injuries. (That law has led directly to an expected reckless, liability-free development of scores of new, over-priced, potential block-buster vaccines, now numbering over 250. The question that must be asked of Big Medicine’s practitioners: How will the CDC, the AMA, the AAFP and the American Academy of Pediatrics fit any more potentially neurotoxic vaccines into the current well-baby over-vaccination schedule?)   http://www.greenmedinfo.com/blog/roll-your-sleeves-folks-271-new-vaccines-big-pharma-s-pipeline

October 13, 2015 – The Day Digital Privacy Officially Dies in Australia

Jesse’s Cafe’ 9/1

The Investment of the Millennium: ‘Pet Rocks’

“Gold has worked down from Alexander’s time.

When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.”

Bernard M. Baruch

Who would have thought it?

So why haven’t the precious metals been ‘working’ since they spiked higher in 2011?

“We hypothesize that, having learned from the misadventures of the 1960s, the policy elites, well-versed in the practice of financial engineering and market manipulation, would have seen no need to dump stocks of government gold reserves onto the market, 1960s style, to keep the price in check.

Instead, synthetic gold, sourced in pyramids of credit extended to bullion bankers by central banks with little or no claim on physical substance, have provided a more efficient, better-camouflaged form of intervention. COMEX synthetic gold and related over-the-counter derivatives are traded in macro strategies implemented by hedge funds, high-frequency trades, and commodity funds in pair trades with interest-rate, currencies, equity futures, or even more exotic offsets. The volumes traded are huge, and bear little resemblance to actual flows of physical metal.

We suspect that shorting gold has come to seem like a riskless proposition as long as there is confidence in the Fed. Synthetic gold is the perfect substance for a carry trade: an easy borrow with very low carrying cost and little upside basis risk. Such a hypothesis, in our opinion, does much to explain the incongruity of a declining gold price while fundamentals for paper currency, and the U.S. dollar in particular, obviously deteriorate; while demand for physical gold has exceeded new mine supply for several years running; and while above-ground 400-ounce .995-gold bars located in London, New York, and other financial capitals (in cohabitation with speculative trading activity in paper markets) have steadily dwindled and disappeared into Asian financial centers reformulated as .9999 kilo bars.”

Tocqueville Gold Newsletter 2Q 2015

The physical market at some point is going to come bearing consequence for the schemes of the financiers.

I suspect that when the ‘riskless proposition’ of shorting gold starts to more visibly unwind, most likely under some significant duress, we are going to see what kind of rot has been concealed, and the bottom feeders that have thrived on it, as when the tide goes out.

This unwinding started in the spike in the metals after the financial crisis of 2008, but was held off by massive ‘currency interventions’ to ‘save’ the Western financial system in 2011.

Gold rose in 2009 from about +150% to +775% at the end of 2010.

The real longer term consequences of reckless monetary policy and irresponsible financial deregulation and a tolerance for massive frauds are still ahead of us.

Perhaps I am incorrect in this.  But nothing I have seen in the data makes me believe so.

Gold is still flowing in large numbers from West to East, and the central banks are still net buyers.

And once the bull market in metals resumes, which I believe that it will, the upside will be similar to the increase which was seen in the years from 2009 to 2011.

Change is coming.  That is the only certainty.  At some point I may be sharing some more thoughts about how this change might manifest it, and what forms the new ‘closing of the gold window’ may take.

“The existence of cash — a bearer instrument with a zero interest rate — limits central banks’ ability to ‘stimulate a depressed economy.’  The worry is that people will change their deposits for cash if a central bank moves rates into negative territory.”

Financial Times, The Case For Retiring Another ‘Barbarous Relic’

Since the Nikkei bought the Financial Times earlier this year one wonders if they are able to interpret the real meaning of their own editorial policy.  Could anything be more blatantly repugnant than the above?

‘Negative rates’ is a euphemism for the slow but steady confiscation of all savings, a broader ‘bail in.’  It is designed to drive people into financial paper assets and consumption. It is all about the elimination of safe havens, of places to hide from gross incompetence and wealth transfers.

Negative interest rates are the signature moment in the decline of a republic and the rise of corporate feudalism.   They take our wealth at no cost or effort for themselves, and lend it back to us at interest and without risk, being assured of a continuing supply of subsidy from their central Bank.

There will be quite a bit of economic news at the end of the week, including a Non-Farm Payrolls report for the month of August.

Gold is in an interesting position here, as can be seen on the chart.

The Bucket Shop was quiet, except for a small but steady stream of bullion out of their warehouses for both metals.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts – Danger Zone

“Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.

When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin!

Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out.”

Andrew Jackson, in a meeting with the Bankers, February 1834

Stocks sold off again, losing a little more than half of the recent rally which they enjoyed after the initial plunge in global equities.

It is foolish to talk about ‘fortress America’ and the imperturbability of the exceptional.  The derivatives market alone makes the entire financial system an accident waiting to happen.

The Fed has obviously, and in a calculated manner, allowed a financial asset paper bubble to be created in the long and almost unbroken run up in financial paper after the financial crisis of 2008,  and stood idly by watching a growing imbalance and inequality in the economy which they also helped to create.

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

Median wage, and aggregate demand.

Maybe it is time to build a wall. Not a wall between the US and Mexico, or even the US and Canada.

Maybe it is a time to build, or rather to rebuild, a wall between the public money and their savings and the gambling Bankers of Wall Street, who keep the profits and give the public their losses.

Have a pleasant evening.

The Economist 2015 Cover is Filled With Cryptic Symbols and Dire Predictions

http://vigilantcitizen.com/vigilantreport/economist-2015-cover-filled-cryptic-symbols-dire-predictions/

The magazine The Economist published an issue named “The World in 2015”. On the cover are odd images :  A mushroom cloud, the Federal Reserve in a game called “Panic” and much more.

leadeconomist

I wouldn’t normally dedicate an entire article analyzing the cover of a publication, but this isn’t any publication. It is The Economist and it is directly related to the world elite. It is partly owned by theRothschild banking family of England and its editor-in-chief, John Micklethwait, attended several times to the Bilderberg Conference – the secretive meeting where the world’s most powerful figures from the world of politics, finance business and media discuss global policies. The outcome of those meetings is totally secret. It is therefore safe to say that the people at The Economist know things that most people don’t. For this reason, its “2015 prediction” cover is rather puzzling.

The bleak and sinister cover features political figures, fictional characters and pop culture icons that will surely make the news in 2015. However, most importantly, it also includes several drawings that are extremely symbolic and allude to important elements of the elite’s Agenda. Here’s the cover :

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(You can view a larger version of the cover here).

At first glance, we see political figures like Obama and Putin, references to the Rugby cup and the newSpider-Man movie. But a closer look reveals a plethora of disturbing elements. Here are some of them.

Two-Faced Globe

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One side of the globe gazes stoically towards the West while the other side appears irate. Does this represent a confrontation between the East and the West? The cover features a few other symbols referring to the “rise of the East”. What’s more unsettling is that, immediately under that angry globe, are pictured a mushroom cloud (the kind that happens after a nuclear bomb goes off) and a spy satellite launching into space.

High tech surveillance and nuclear warfare. The Economist is not very optimistic.

High tech surveillance and nuclear warfare. The Economist is not very optimistic.