29 Jan 2013

Santelli's Paradox And Why The Fed's Exit Will Be "Very, Very Messy"

Tyler Durden's picture We are in our sixth year since the US officially went into recession and yet, as CNBC's Rick Santelli notes, we are still in crisis management mode. Some argue that any day now, the Fed will begin to remove its mega liquidity pipe from the market but Rick exclaims in this wonderfully succinct clip that:
"there is no expiration date on faulty illogical ideas," as he expects any Fed exit to be "very, very messy." Rick's dilemma is the seemingly paradoxical need for yet moar and bigger monetary policy crisis management by Ben Bernanke when day-after-day we are told by the very guests on his network that "stocks look great." At the end of the day, when the Fed decides to exit, they will not be able to put the liquidity 'toothpaste' back in the tube.

AFRI-CON: UK Goals in Africa and Mali Intervention - Morris + Ron Paul calls US involvement in Mali 'undeclared war'

Morris: Africa The Aims - Morris Interview -TV Company did not use it - Recorded today - Britain will use its troops to attack and subjugate indigenous people everywhere. Already helping France in Mali.

The United States is a top terrorist state - Noam Chomsky "Colin Powell should be hanged"

UK and Europe Banned Press TV's documentary program renowned American academic Noam Chomsky says the United States would be recognized as a leading terrorist state if international law is applied. Source

Kamikaze Currency Killers "We are in World War 3" - Max Keiser with former MI5 agent turned whistleblower, Annie Machon

Max Keiser and Stacy Herbert discuss Japan where the latest source of monetary inspiration is Korekiyo Takahasi, described by Ben Bernanke as the man who "brilliantly rescued" his country from the Great Depression of the 1930's, while neglecting to mention that Takahasi was then assassinated by the army, who were angered by cuts to their wages. They also discuss the biggest Aso in Japan, finance minister Taro Aso, suggesting old people just 'hurry up and die' in order to save money for government. In the second half of the show, Max Keiser talks to former MI5 agent turned whistleblower, Annie Machon, about the global crackdown on the internet and the activists who live there. Source

Super Cool Righteous Member of the Belgian Chamber of Representatives gives truly unbelievable speech

By Madison Ruppert: Member of the Belgian Chamber of Representatives for the People’s Party Laurent Louis gives one of the single most unbelievable speeches I’ve ever heard from a politician.

The speech, which clocks in just under 14 minutes and was translated into English by Geraldine Feuillien, leaves no stone unturned.

Louis covers everything from the intervention in Mali (which he characterizes as a neo-colonialist operation and voted against), the so-called do-gooders both left and right wingers or from the center who are today licking the boots of our corrupted powers,” and even the September 11, 2001 attacks.

He doesn’t spare journalists either, saying, I don’t have much respect neither for the journalists who have the audacity to label the opponents as mentally retarded while basically, they know very well that these opponents are right.”

Speaking of 9/11 he said, Haven’t we created September 11th, after all, to justify the invasions, arbitrary arrest, torture and massacre of innocent populations?”

Louis also points out the duplicity of the reasoning behind the intervention in Mali.

Why are central banks buying gold, the opposite of their own creation, paper money?

What if the Fed is short Germany’s gold? - Gijsbert Groenewegen.
Why are central banks buying gold, the opposite of their own creation, paper money?
Money is the opposite of gold and silver. Fiat money is based on ordinance and credibility and is not self-limiting (can be printed infinitely) whilst gold and silver is commodity based and physically limited to the amount of physical gold and silver available and mined, you choose either one or the other. One is purely based on credibility hence why notes need to mention the nominal value in order to give the piece of paper value. American paper money is backed by only the size and strength of the American economy. The other money is based on real value, the value of the gold itself. And especially for that reason investors should be warned considering the fact that more and more central banks are buying gold, the opposite of their own creation: paper money. This is so contrarian. It is like the butcher who doesn’t want to eat his own sausages because he knows what is in it. Why would central banks buy gold, which “limits” their creation of credit? The answer is: the fear of lost credibility of paper money, because of the constant undermining, dilution, debasement of their currencies with quantitative easing measures not sorting the desired effect of sustained economic growth because we have passed the tipping point whereby the overwhelming debt levels (Debt/GDP > 77-90%) have started to depress economic growth.
Central banks have been buying gold since 2008!

Faith leaders against US policing practices

Europe Banned PressTV: Faith leaders in New York join thousands to speak out against abusive police practices during Martin Luther King week.
We will also discuss brutal policing practice against minorities and the poor and groups who are calling for police reform. Source

LEAKED: Mario Draghi And His Triumvirate Shut Up German Finance Minister To Keep Cyprus From Blowing Up The Eurozone

By Wolf Richter: The state-sponsored chorus about the end of the debt crisis in the Eurozone has been deafening. It even has feel-good metrics: the Euro Breakup Index for January fell to 17.2%—the percentage of investors who thought that at least one country would leave the Eurozone within twelve months. In July, it stood at 73%. For Cyprus, the fifth Eurozone country to ask for a bailout, the index fell to 7.5%. “A euro breakup is almost no issue anymore among investors,” the statement said.
Just then, in a fight over whether or not to bail out Cyprus, top Eurocrats exposed what a taxpayer-funded con game they thought these bailouts really were—and how fragile the Eurozone was.
A debate has been raging in Germany about Cyprus. Not that the German parliament, which has a say in this, wouldn’t rubberstamp an eventual bailout, as it rubberstamped others before, but right now they’re not in the mood. Cyprus is too much of a mess. Bailing out uninsured depositors of Cypriot banks would set a costly precedent for other countries. And bailing out Russian “black money,” which makes up a large portion of the deposits, would be, well, distasteful in Germany, a few months before the federal elections.
For the tiny country whose economy is barely a rounding error in the Eurozone, it would be an enormous bailout. At €17.5 billion, it would amount to about 100% of GDP: €10 billion for the banks, €6 billion for holders of existing debt, and €1.5 billion to cover budget deficits through 2016. The new debt, a €2.5 billion loan that Russia extended in 2011, and other debt would amount to 150% of GDP, according to Moody’s. Unsustainable. So haircuts would be necessary. But whose hair would be cut?
As always, there is never an alternative to a bailout. It’s essential that everybody realizes that a disorderly default of Cyprus could lead to an exit of Cyprus from the Eurozone,”

AFRI-CON: US considering new drone base in Africa

RT: The US is planning to consolidate its position in Africa with a new drone outpost in Niger, with the stated purpose of providing unarmed surveillance support to French efforts in Mali and keeping tabs on al-Qaeda elements on the continent.
The robotic unmanned aircraft would likely be based in Niger, on the eastern border of Mali, where French forces are currently waging a campaign against Al-Qaeda, AFP reported, quoting an anonymous official.
If the plan is approved, up to 300 US military servicemembers and contractors could be sent to the base to operate the drone aircraft, the New York Times reported. US Africa Command is also considering another location as an alternative to the base in Burkina Faso, the official said.

However, State Department spokesperson Victoria Nuland reiterated that there are no plans to commit US troops to any fighting on the ground.
In the future, the US command does not rule out using the base to conduct military strikes if the situation deteriorates or the extremist threat increases, military officials told The New York Times.
In the meantime, the US military's Africa Command is reviewing the options for the base with other countries in the region, including Burkina Faso.
The Africa Command’s scheme still needs the go-ahead from the Department of Defense, President Barack Obama and Niger. No final decision had been made, but a status-of-forces agreement has been reached between the two governments in Niger on Monday, providing legal protection to American troops in the African country.
If the drone base plan goes through, the facility could become home to as many as 300 American military and contractual personnel.

Bernanke to Oprah: "I've Been Doping for Years"

SchiffReport: The Oprah Winfrey Interview we should have seen: Ben Bernanke Confessing to Years of Performance-Enhancing Economic Doping. Source

Apartheid: Israeli gulag forces destroy Palestinian village in Jenin

UK Banned Press TV: Israeli forces storm and destroy a protest village in Jenin just north of the West Bank. The camp was located next to the separation wall. Palestinian activists set up the camp in the village of Anin and called it Asra meaning prisoners. The move was aimed to express solidarity with the Palestinian prisoners held without charge or trial in Israeli Nazi style prisons. Clashes erupted as Israeli gulag forces stormed the village and shot tear gas and rubber bullets at the Palestinians, which caused many injuries.

CAMERON DOOMED: the lies and pernicious Times of Rupert Murdoch

Monday gets even worse as Murdoch serves up 
some HS2 for the PM to smell
The Slog: Further to today’s earlier post about David Cameron having trouble inhaling while he is head-down in a hill of sh*t, you may not have thought this possible, but things got worse as the day went on. “I don’t like Mondays” sang Geldof’s Boomtown Rats way back in those innocent days of tertiary and post Punk, but one hopes that – as he sits at home tonight in Number Ten munching on Sam’s home-made Doppia Mozarella with extra Humble – the Prime Minister is capable of being philosophical about how his week got out of the blocks.
Shortly after I posted, various backbenchers, Tory-voting constituencies and new stalking horses popped up to say just how much additional excrement they wanted to pour onto Dave’s hill in relation to his pet project, the HS2 rail link. This is the one that will enable business people only on the train for the cooked-expenses breakfast to arrive in Manchester before they leave London. It’s also the one that is about to take the concept of Nimby to new heights of door-jamb biting opposition.
But the main thing to note here is that Murdoch’s Times once again has the spoon out, and is stirring the heady melange of turds, hate and division prior to depositing it on the only bits left sticking up from the hill, the PM’s calves and feet. The front page lead screamed ‘Tories push high-speed rebellion up the line’: yes, it was another Newscorp exclusive about what the HS2 blueprint will actually say, and§ why the Party’s grass roots are never going to stand for it. Page 5 had more Tory plotters planning to promote the likes of Graham Brady and Adam Afriyi as stalking horses ‘when’ King David of Camerlot comes a cropper.
You see, this is what happens when you’re the sort of ne’er do well who refuses to stand by Newscorp sociopaths who have broken more laws than Ned Kelly: Rupert will get you.

False Flag Mali explained: Labor Minister Says France Is "Totally Bankrupt"

Tyler Durden's picture Things in France must not be very serious, because the French labor minister accidentally let the truth come out a little earlier today. As the Telegraph reports, France's labour minister sent the country into a state of shock on Monday after he described the nation as “totally bankrupt."
Remember: France is one of the supposedly stable countries in Europe.

"Michel Sapin made the gaffe in a radio interview, which left French President Francois Hollande battling to undo the potential reputational damage. "There is a state but it is a totally bankrupt state,” Mr Sapin said. “That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective." It appears that once one wipes out the propaganda and the smooth politico talk, things are bad and getting worse at Europe's core. "Data from Banque de France showed earlier this month that a flight of capital has already left the country amid concerns that France’s Socialist leader intends to soak the rich and businesses. The actor GĂ©rard Depardieu has renounced his French citizenship and decamped to Russia in protest, while David Cameron said Britain will “roll out the red carpet” to attract wealthy individuals. Pierre Moscovici, the finance minister, said the comments by Mr Sapin were “inappropriate”."
At least France can hike the tax on the millionaires to 75% to generate more money. Oh wait, no it can't.

Staged Syrian Chemical Weapons Threat Exposed

Alex runs down the hacked emails indicative of an imminent staged Syrian chemical weapons attack, the likes of which would pave the way for military intervention, but more importantly would constitute a serious war crime. Meanwhile in the U.S., no excuse is needed for military intervention, as was apparent in downtown Miami last week where yet another "training exercise" took place boasting Blackhawk helicopters and machine guns firing blank rounds...unbeknownst to civilians. Alex also covers CNN host Piers Morgan's concession of defeat to the NRA in the face of Senator Feinstein's flopping gun control bill. Alex also covers other major news items and takes your calls. Source