Headlines, Headlines, Headlines – 02 May 2009

Stacy Summary:   While the MSM headlines are of the dangerous peasant protestors, in the FT, more evidence emerges of weaponized financial products being deployed against nations.  There is one sliver of good news to emerge from the bankers’ derivative and credit crime wave in the reduced carbon emissions as we see car sales and miles driven continue to plunge in the United States.

43 comments on “Headlines, Headlines, Headlines – 02 May 2009
  1. Mike/Liverpool says:

    On a side note to everyone ,Eric Jansen of “Itulip” fame has just written a brill bit about how this time is the oppersite of 1981………..he sez strong inflation coming by the 4th qurter.
    Mike

  2. stacyherbert says:

    @Mike/Liverpool – link please ;)

  3. Youri Carma says:

    Actually got the tip from Freebird100 on the Prisonplanet Forum but where all in it together but catering affords my be rewarded by TIP commend TnX!

    I’ve send this “Derravatives and attmpted state capture in Kazastan” by email to Bob Chapman, Peter Schiff, Paul Graig Roberts and Erik Rezelman from RTLZ Dutch media – economical. The debate must continue on the highest intelectual levelsand that’s very important concerning “getting the info” as well.

  4. Mike/Liverpool says:

    Stacy:-
    http://www.itulip.com/forums/showthread.php?p=95409#post95409

    BTW Please ask Max WHEN the £ is going to crash (I need cheering up ;)
    Mike

  5. snoop diddy says:

    and taxpayers are funding this now:
    American excess: A Wall Street trader tells all
    http://www.independent.co.uk/news/world/americas/american-excess–a-wall-street-trader-tells-all-1674614.html

  6. Mr Supergeek says:

    @snoop diddy, Great link  only shame was as I read the article I knew it was gonna be a teaser for a book.

  7. snoop diddy says:

    yep, shame about that.
    Am wondering what they mean by they were broke after a few yrs out of the banking industry. Actually spent all their money, or just own assets with no spending money left.

  8. Palantíri says:

    No relevance what so ever to the news but I thought I would link this story in hope that some haven’t read it yet. The story is a damn good one, easy reading, understandable, it makes you think, question it, and hopefully start to look around to see if the story might be true in the real life. A few years back I stumbled upon this story and it has had a great effect on me. That story along with many documentaries (like the money masters, Orwell rolls in his grave, maxed out, the corporation and many many others with various subjects) found and gotten from p2p places has been my red pill.
     
    I Want The Earth Plus 5%
    http://www.relfe.com/plus_5_.html
     
    If you like it, pass it around. I use this link because on the site you can find links to the story written in 20 different languages.

  9. Mr Supergeek says:

    I guess some things all the money in the world can’t fix. You start off wrong you end up wrong.

  10. Don (Joe bag O chickens) says:

    My mortgage company finally came through just days before the foreclosure sale of my house. Wells Fargo HM has decided after months of phones calls and an in ability to work with me, that they will now call for a moratorium on the foreclosure sale and reduce my monthly payments for 5 months, then ask for a balloon payment which they will fold back into the loan, starting a new loan and reducing the interest from6.5% to whatever they can at the time of refinancing.

    I could not help but the think “whats the catch?”

    It seems that if all lenders band together with the people who are struggling and work it out, the worst the lenders have to loose is a little bit of profit. My home loan was originally for $175K but by the time I paid off the loan I will have paid $412K!!! Usury in it’s extreme form. Surely there must be a better way.

  11. Wolfgang says:

    @stacy 

    check this out, it’s well worth the read, written from a unique and quite avant-garde (NY) perspective, detailing stuff you and max would likely be interested in and agree with: Demos | Publications | Open Source Democracy (a few pages but an easy read) the young englishman liberal englishman politician who used to work with max should in my humble opinion get this guy on (his) board as a media consultant or something for his next elections….

  12. Daniel Sauerborn says:

    It seems to me that we’re all in a trap with every exit covered. If for example, one buys bullion and is protected against 50% inflation that follows, but has to sell their bullion. They’ll be taxed as though they made a 50% return on investment even though all they have done is maintain their purchasing power via an alternative currency (bullion). In that case, capital gains tax becomes a tax on money, like inflation is, only less severe. I’m starting to wonder if buying a lot of food storage might be a best first step in protecting oneself from inflation. You can eat the “capital gains” without paying tax as long as pests don’t get to them first.

    From the view that it’s a trap in which they want all of us to lose capital, I’ve been wondering how they’re going to squeeze people who invested in mining stocks in late November. I’m suspicious of some sort of theft in the works. Like nationalizing mineral interests (mines) to “save the economy”, and thus robbing the shareholders. I just don’t see them letting people who timed it well keep profits of about 150% by holding silver mining stocks. Then again, this is a small group of people.

    But I don’t see them letting people hold and profit from holding mining stocks generally (regardless of when they bought them) as high inflation sets in. Too many people who “get it” and possibly oppose them, would make money.

  13. Rebeccca says:

    Hello Stacy,

    Thanks for the wonderful, enlightening journalism that we all know and expect.  Thanks again!

    My mother works for Chrysler, and she is just under the impression as an accounts receivable/payable clerk that Chrysler is just getting a new credit source and she still gets to keep her job.  Thank you so much for the holistic approach to the financial system and advising of the people’s decision and right to confront the true assailants of this crime.  I will be letting her know tomorrow when I call her.  The credit monsters have gone too far, and it’s time for various ethical occurrences.  Thanks for being apart of that change and helping others.
     
    Cheers,
    Rebecca

  14. sharon says:

    Well, quite frankly I’ve had enough. I am desperate to get out of the ‘system’. My problem is that I will need to sell my house in the UK in order to ‘get out’. But even if I manage to get beyond stage 1 (ie. selling my house) I then don’t know where it is safe to put my money. I hear you all say: Gold, you have to buy gold! I have bought some gold but the proceeds of my house will run into the hundreds of thousands and buying that much gold does not seem like a safe option (remember in the 1930′s in the US people were made to hand over their gold. I know that didn’t happen in the UK, but it could this time around as we are now in a worse position than we were in the 1930′s). So I’m thinking to myself: this is bloody ridiculous, I can’t sell my house because there’s no where safe to put the money which means I have to stay in this ballsed up society. If anyone knows anywhere safe to put money at this point please enlighten me, I would be very grateful for any advice.

  15. Matt Smyth says:

    Global warming is BS. They are called green house gasses because green houses burn propane to create more co2 so that the plants grow faster. More carbon = more trees.

  16. WL says:

    US bank failure Friday – 3 more go down
    http://www.fdic.gov/bank/individual/failed/banklist.html

    After the electronic bank run last Sept. Savers gained a temporary reprieve. Watch out ahead FDIC limit expires Dec 31. 2009.
    http://www.fdic.gov/news/news/financial/2008/fil08102a.html

  17. William says:

    @Daniel Sauerborn,

    That’s probably why it’s so hard to acquire gold coins in Canada and the U.S..  I know in Canada, that gold coins are exempt from Capital Gains Tax; since it’s also legal tender. 
    Which reminds me of a family business, in the U.S., that was paying their employees(kids)  with gold coins.  The kids weren’t filing taxes because the value on the face of the  coins were below the limit for filing. Of course the IRS took them to court, for the value of the gold; and they lost. The judge ruled that fiat money, regardless of what it’s made off, is based on the markings.

    U.S. constitutional money!

  18. William says:

    @Matt Smyth,

    I’m in Yellowknife, N.T. Canada.  It just started to melt 2 DAYS ago.   That’s really late, even for up here. I would love to move somewhere experiencing global warming!

    What concerns me about the CO2 tax pushers; is that it could (possibly) pave the way for taxing people just for breathing.  

  19. Mike/Liverpool says:

    CHINA STOPS AMERICA’S CREDIT CARD!!!!!
    http://rawstory.com/news/afp/China_has_canceled_US_credit_card_l_04302009.html
    Mike

  20. NJ says:

    Here are the links to the referenced articles in the excellent Baltimore Sun piece:
    Quiet Coup:
    http://www.theatlantic.com/doc/200905/imf-advice

    Geithner Club:
    http://www.nytimes.com/2009/04/27/business/27geithner.html?hp

    Interesting is the frequency of mentions that the US government’s capture by the corporate occupiers. Less interesting and more mind boggling is the nonchalance of the delivery of this nugget. It seems that barring the French, the world is only still a bystander. I wonder if other countries just have higher thresholds for this sort of thing and then flip. Like Ned Flanders.

    Thanks for the links Stacy and Palantíri.

  21. WL says:

    I can envision a global cap and trade carbon credit system as the next massive fraudulent derivative scam run by the vampires. A suitable replacement for the CDS scam. It is a brilliant fraud whether or not AGW is real. It will become the next global currency. Watch out.

  22. rb says:

    That ‘fatal attraction’ article is scary indeed. I always thought consumers were safe from mafia style intimidation, unless they were actually dealing with the mafia…

  23. Daniel Sauerborn says:

    William, I also heard of a US farmer who paid his employees in silver coinage and won in court against the IRS. Unfortunately I can’t find a link to the story or I’d post it.

    I didn’t know the coins were exempt from capital gains tax. Thanks, I’ll need to look into that.

    I don’t envy your situation Sharon. I only have two years of savings to protect and yet due to my own particular vulnerabilities I am stressed over not knowing what to do. ( I couldn’t really care less about money, just a continuity of the food and shelter it provides )

    So far I personally think one of the safer options would be to buy silver via James Turk’s goldmoney.com. It looks to me that it’d cost about 8 to 10% in fees and capital gains taxes from a total transaction perspective. (less for you I think, I’m a foreigner) But I’ll probably try to hop back into the market if/when it crashes again, and risk going down with the ship. For a Canadian, goldmoney kinda stinks because of the wiring fees. I couldn’t cost effectively make small withdrawals.

    I’m confused about the recommendations I see to buy gold because gold seems to have this pesky habit of sitting around and piling up instead of being consumed. The few consumptions I can think of are things like  non-recycled electronics and satelites. And I’d also be concerned about confiscation.

    If I had your means, or any practical means really, the pessimist in me would be leaning toward a property that is away from major roads and populations with the ability to heat with firewood, get water via hand pump, and grow, process, and store my own food. But that would require committing to upfront losses for theoretical benefits. That and making friends. Being on-grid and isolated in a city would be the worst situation during collapse I’d imagine.

    I don’t want to pretend to be an expert. Just some of my own thoughts about it.

    Dmitry Orlov from Russia said that Vodka was like a currency there post-collapse. And unlike say, silver maples, we can still buy Vodka close to spot! haha.

  24. sharon says:

    Thanks Daniel,
    I appreciate you taking the time to reply and put forward your ideas. I agree with you re: purchasing property off the grid. Although having said that it does seem to me that people without assets can often get away with murder whereas anyone with assets has to be more careful when dealing with the state if you get what I mean.
    Anyway thanks for the advice.

  25. Mep says:

    @rb,  yeah, the Fatal attraction article was freakish.  I had a guy in my social theory seminar who was a debt collector, and he’d tell a bunch of us stories about calling up people’s neighbors and having the neighbors leave all kinds of post its on the debtor’s neighbor’s door–telling them to call the collection #.  He’d also call ex-girlfriends and ex-spouses and get them in on the harassment. (He was proud of his work, and seemed to have learned to totally hate anyone that owed any money that they couldn’t pay.)  I thought THAT was bad.  I guess that with the Internet comes the opportunity to out-do even the alarm of coming home to Post It notes.

  26. Daniel Sauerborn says:

    You’re welcome Sharon.

  27. Rich says:

    @William of Yellowknife (rich-saskatoon)

    Wow! I used to work at one of the gold mines up there, that is a late melt start. Its been a freaking cold year a little further south as well. Anyone who hasn’t experienced a minus 50 degree Celsius day, just doesn’t know how painful that is…its like being pinched, slapped and crushed all at once. But our saviours were out spraying the skies again this morning, god bless em, protecting us from that warmin globe. Its gettin about that time to frag those politico liars.

  28. Mep says:

    Just finished reading a fantastic Naomi Klein interview that covers a little bit of everything: the financial crisis, the dangers of Obama hero-worship, climate change, democracy, alternatives to capitalism, the potential future of progressive movements, etc.

    Highly recommended!

    http://www.wowowow.com/politics/naomi-klein-no-logo-shock-doctrine-wall-street-bailout-greatest-heist-monetary-history-278740

  29. Mep says:

    Psssst: the Klein article is best read in Print mode, b/c all of the text appears at once.

    Also, here is a good Rolling Stone article on Smithfield Foods:

    http://www.rollingstone.com/politics/story/12840743/porks_dirty_secret_the_nations_top_hog_producer_is_also_one_of_americas_worst_polluters/print

  30. Mr Supergeek says:

    @Mep I respect the links and stuff you post on this site more than most peoples, but you are not gonna make me feel bad about converting my life savings into shares in a spam factory(what do you think was really in those speeding trucks leaving Argentina when the economy crashed).

    Personally I think spam was the wisest move I ever made. Now I sleep soundly at night and do not worry or jabber. For those of you out there who want to change your way of living I say this Spam spam spam spam spamity spam.

  31. Don (Joe bag O chickens) says:

    Sharon, Daniel, William.

    guys, I like the points each of you have laid out. I too have been working toward debt reduction and investment/ survival possibilities.

    I read a book that I highly recommend by James Rawles “Patriots surviving the coming collapse”

    Rawles and some friends experimented with the issue of total collapse and put themselves in the situation of being off grid and what problems they might encounter in order to determine what items they would need the most. the book is a good start.

    Personally, I have some silver rounds, also I have staged a series of worse case scenarios. If I had to evacuate in 1 day what can I gather? If I had 8 hours to evacuate. what can I take and where am I going? If I have 1 hour or just ten minutes what will I need to survive say, on the streets or in the wild?

    So with that said, I have prioratised things a bit. I have two back packs set up for my wife and I with essential survival stuff for the immediate evac. Food rations, fire starting tools, extra poly pro socks, gloves and water purification pills and iodine. Regular iodine and sea salt is an amazing survival tool. It works to disinfect any surfce and kill 99.9% of all bacteria and germs. Therefor you can use it on you feet, your teeth, with the salt iodine mix for your wounds they will heal very fast, and iodine again to sterilize water.
    Don’t forget a good pare of 600 gram thinsulate water proof boots. And the best investment is knowledge.
    1.Can you perform sutures?
    2.Can you can food?
    3.Build a shelter and camoflage it well?
    4.Do you know how to make sprouts in the event that vegetables are impossible to get?
    5.Do you have organic seeds?
    6.Do you know what plants in your region are edible, or poisonous?

    This is just a start. But I think if you can wrap your mind around the concept of needing basic comforts you can start to see what you might need for yourself and to help others. There may be a need for impromtue medics, counselors, farmers and definately, survivalist.

    God bless you all,
    Don

  32. smallz says:

    The Fatal Attraction article was just a tip of the iceberg. The ‘Fatal Attraction’ method of debt collection is indicitive of the entire financial services industry.

    Things aren’t being done much different in the real-estate foreclosre market either. All across America uninformed, unaware homeowners accept “cash for keys” to “leave peacefully” instead of DEMANDING a legal eviction notice.

    It’s important to note that many Banks have abandoned “the eviction process” becasue (A) in most cases lenders can’t legally prove ownership of the debt to get an eviction notice and (B) people are to stupid to know their rights and demand it.

    Instead, Countrywide and Bank of America preferr to finace the “cash for keys” with TARP money instead of allowing Americans to perform “mortgage workouts” to “mitigagte foreclosure” specified by TARP section 109 and 110.

    That’s RICO theft of FEDERAL FUNDS.

  33. Sharon- Buy property in a cool but unproductive rural community where the prices are depressed because there is little work. Make sure you buy something outright and have a small fund left over.

    Learn to be frugal and develope some skills you can market over the computer via mail service…

    easy peasy…

  34. Mep says:

    @ Supergeek-  SPAM!?  How would I know that you threw your savings into SPAM?  I guess it was a good move on your part considering that SPAM factories have been working in overdrive for months now.  Back in December, I read an article about how they were running the factories 24/7 and drastically increasing production to keep up with the demand for SPAM. (Fitting, since SPAM was a Great Depression staple.)

    I included the link because besides being a big part of the swine flu story, it also ties in well with what Naomi Klein was discussing towards the end of her interview.  I really, really like the idea of a “Who Owes Who?” (W.O.W.) movement.  Smithfield Foods owes the Mexican people big time right now, as well as everyone else that got sick because of the way they do business.  Given all of the money and resources that governments are throwing at the swine flu right now, I’d say that Smithfield owes us all.

  35. Steve from Awstrailya says:

    It will be interesting to see how Nazarbayev handles this (‘dictator’ President of KZ). If he hands over Kazakhstan’s oil for CDS debts he better start looking for a new home. The riots in Almaty back in the 1986 was one day away from red troops rolling in the tanks. These people aren’t going to take shit lying down like those in comfortable western countries.

    I hope he plays hardball like Putin did in the 90′s and tells them to get f—ed. Let the pricks fall like LTCM. It’s better to rebuild the banking sector with oil instead of selling out the future prosperity of the country. With Russia’s backing he would probably be able to do this but the situation has the potential to have massive geopolitical consequences, Central Asia and in particular Kazakhstan may be the site of the next ‘great game’. Nazarbayev is no fool but he may be in a no win situation.

    I certainly hope Nazarbayev tell these unsecured creditors they lose big time as I may end up living there again in the future!

  36. Mother Earth says:

    Perhaps relevant to the patent/copyright discussion is as situation in which the pahmaceutical company actively misleads the medical professional by setting up a fake scientific journal..http://blog.bioethics.net/2009/05/merck-makes-phony-peerreview-journal/

    This may be treated as a scandal, but is should off course be added to the list of ways in which pharmacuetical companies milk the patent mechanism, f.i. by making products with expired patent unavailable. 

  37. Thomas says:

    Hey Don, I am a belgian 33 years old, my gran ma and gran pa’s went through the 2 WW and their advice would be : store food, if you re a young man leave ASAP, if you re a pretty woman dress up as an old one, and store some more food. Currency is worthless, people fear each other, and starvation is the ultimate killer. Ah and the police, administration and politician are the first to pledge allegeance to the enemy.
    In these days the best currecies are: food, booze, soap, salt, and food. Oh yeah; except a lot of people turning other people to the police for a fee or for revenge.
    My grand ma made it through, grand pa had a harder time forgetting his 4 years in ennemy camp.

  38. stacyherbert says:

    @Thomas – I advised people to stock up on whisky years ago! Also add sugar to that list. Right now you can pick it up for free at most fastfood restaurants out in the public area so you don’t even need to buy any of their processed, chemical laden food ;)

  39. Phil says:

    Concerning Kazakhstan : http://gata.org/node/7399
    ( and maybe even Iceland ;-)

    How to make a fortune with CDSs :
    (1) Loan somebody an uncomfortably large sum of money.
    (2) Take out an even larger sum of money in the form of CDSs. 
    (3) Demand immediate repayment, forcing them into default. 

    It seems to me that “the powers that be” were unhappy with the IMF’s “speed” of impoverishing mineral-rich nations with unrepayable debt such as to have a “hand” on their “real” wealth and found a new method, which is much faster and can be “timed” nicely ! Should that nation refuse to pay … then the MIC is ready and willing if that country refuses to comply with their demands.

    Considering that the Bank Bailouts are no secret, corruption in Capitol Hill is no secret, and public outrage is getting louder, you begin to wonder why the Govt. isn’t doing much to placate the public’s feelings ; apart from silly tax-handouts for the JoeSixpacks of this world …..

    Questions like …
    A) who actually “is” the Govt. ?
    B) are they (Govt) even worried ( as in bothered ) about public revolt ?
    C) does a public revolt actually suite their plans in any way ?

    In the Kazakhstan example ( probably just one of many IMO ) : 

    Kazakhstan is left as the bag-holder – debt-slave to the US
    The US Investment Bank will probably recoup the debt via CDSs ( and may even have make a profit )

    The big and obvious question pointed out by the article was :
    Who is on the other end of those CDS contracts ?

    I’ll make a guess that it was AIG more than likely ….. i.e. the bagholder , sorry I mean the US Taxpayer of course !

  40. Daniel Sauerborn says:

    Sugar is definitely a good idea. It won’t spoil and it can help stretch meager food far, not so well for children though (I know cuz I was one who had to eat a lot of it to get by).

    I can’t figure out which alcohol would be best. Something with very long shelf life, but whiskey, vodka? beats me. No luck finding out what sells best in my region yet. Terrible thought, but I wonder what alcoholics prefer.

    Oh and one little hint. Generally anything with unrefined oil in it will spoil (the oils go rancid). So for example white rice will keep better than brown rice or oats because it contains less fats.

  41. Amandip Singh says:

    I have found on BIS website this information about the Derivative markets Size, which is given below at he end of my comment . At the same time I read an article at Newsweek International which state the real size of Derivative market is around 15 Trillion dollar though a big variation from what BIS states i.e $20 T. Statement by BIS shows  $ 683.7 Trillion is a notional value. In the Newsweek article Stephen Figlewski, a professor of finance at NYU’s Stern School of Business and founding editor of the Journal of Derivatives, challange the notional value of Derivative markets. Can anyone help to know who is right in interpretting the STATS.
    Oh yes link to News Week Article is posted here
    http://www.newsweek.com/id/164591

    Thanks
    Singh, India

    OTC derivatives market activity in the first half of 2008
    13 November 2008
    The notional amounts outstanding of over-the-counter (OTC) derivatives continued to expand in the first half of 2008. Notional amounts of all types of OTC contracts stood at $683.7 trillion at the end of June, 15% higher than six months before. Multilateral terminations of outstanding contracts resulted in the first ever decline of 1% in the volume of outstanding credit default swaps (CDS) since the first publication of CDS statistics in December 2004. The average growth rate for outstanding CDS contracts over the last three years has been 45%. In contrast to CDS markets, markets for interest rate derivatives and FX derivatives both recorded significant growth. Open positions in interest rate derivatives contracts rose by 17%, while those in FX contracts expanded by 12%. Gross market values, which measure the cost of replacing all existing contracts and are thus a better gauge of market risk than notional amounts, increased by 29% to $20.4 trillion at the end of June 2008.
    The following trends are noted in the statistical release:

    CDS volumes decline
    Significant growth in interest rate products
    Robust activity in foreign exchange derivatives
    Growth in equity derivatives
    Strong growth in commodity derivatives

    Comprehensive explanatory notes are included in the statistical release, defining the coverage of and terms used to present the statistics.
    Any queries arising from these statistics can be directed to: Jacob Gyntelberg tel: +41 61 280 8891, e-mail: jacob.gyntelberg@bis.org Carlos Mallo tel: +41 61 280 8256, e-mail: carlos.mallo@bis.org
    The BIS expects to release the OTC derivatives statistics for the second half of 2008 no later than 29 May 2009.

  42. Don (Joe bag O chickens) says:

    To All who commented about my survival post:

    Those who mentioned sugar are very wise because most of us are sugar addicts to some extent. Don’t believe it? Just try quitting sugar for a week. No jelly donuts, crepes, or any sugar of any kind. YOU WILL GO CRAZY!!!

    Thomas. That sounds like sound advice. I wish I could leave the US. I have lived outside the US for 8 years. I love other cultures. I just don’t have the $$ :(

    Instead I stock up on 12 gauge ammo and 9 mil. Lots of food and imagine what I would need in any situation.

    The goal is to survive, protect my family and be of service to my neighbors.

    God bless all, (That could be Buddha, Allah, Creative Consciousness; whatever you like. nameste)
    Don

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