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"Warren Buffett once referred to derivatives as "financial weapons of mass destruction", and it was inevitable that they would begin to wreak havoc on our financial system at some point.  While things may seem somewhat calm on Wall Street at the moment, the truth is that a great deal of trouble is bubbling just under the surface.  As you will see below, something happened in mid-September that required an unprecedented 405 billion dollar surge of Treasury collateral into the repo market.  I know - that sounds very complicated, so I will try to break it down more simply for you.  It appears that some very large institutions have started to get into a significant amount of trouble because of all the reckless betting that they have been doing.  This is something that I have warned would happen over and over again.  In fact, I have written about it so much that my regular readers are probably sick of hearing about it.  But this is what is going to cause the meltdown of our financial system. Many out there get upset when I compare derivatives trading to gambling, and perhaps it would be more accurate to describe most derivatives as a form of insurance.  The big financial institutions assure us that they have passed off most of the risk on these contracts to others and so there is no reason to worry according to them. Well, personally I don't buy their explanations, and a lot of others don't either.  On a very basic, primitive level, derivatives trading is gambling.  This is a point that Jeff Nielson made very eloquently in a piece that he recently published…"

" The Daily Bell Newswire Editorial FRIDAY, MAY 17, 2013 What TARP Boss Neil Barofsky Told Me Yesterday Should Shock You By Bill Bonner 8 Bill Bonner The financial news is getting boring. The Dow goes only one way - up. But gold fell below $1,400 per ounce yesterday. Rather than trying to figure it out, yesterday evening we drove down to Zombietown. A friend in Washington had promised to introduce us to Neil Barofsky, inspector general of the TARP program. You remember TARP? It was the feds' $700 billion program to rescue the US economy from a correction. Neil Barofsky was in charge of it. So we decided to go down and ask him how it turned out... Meanwhile, in yesterday's International Herald Tribune was a small note: "Economists agree that spending cuts and tax increases have slowed the US recovery." Readers will recognize this as the usual claptrap. Government spending does not bring a genuine "recovery." C'mon... how many times do we have to explain? You take $5 worth of resources and give them to an armed 19-year-old in Afghanistan. He shoots a round or two into a mountainside... poof... the $5 is gone. Or you have an ATF official. He's idling his motor as he stakes out a house believed to be used by a cigarette smuggler. In a few minutes, or even seconds, the $5 has vanished. Or give the money to a disabled person; he buys a MoonPie and a Coke. Economists may record the spending as part of GDP... But how are you better off? You're $5 poorer, not $5 richer. But GDP growth is something economists feel they can control. So they go to work on it like a sex maniac strangling a prostitute. Nothing good comes of it. But at least they get results. And here comes Paul Krugman with more garroting wire! The New York Times Magazine: Keynesian economics rests fundamentally on the proposition that macroeconomics isn't a morality play - that depressions are essentially a technical malfunction. As the Great Depression deepened, Keynes famously declared

Troubled assets are just stuff that banks paid too much for. Mostly, that stuff is loans made to people who cannot afford to pay them off, secured by collateral that is worth less than the loan value. Those loans were made so people could buy everything from homes and cars to shopping malls and construction companies. The reason they are financially crippling is that banks don't want to admit how badly they overpaid, so they keep carrying worthless junk at inflated values on their balance sheets.  The "systemic" problems arise because everyone knows the banks are holding junk that they are pretending are jewels. Investors and lenders don't believe the assets are worth what the banks say they are, so they won't lend or invest against the phoney valuations.

"Obama - Globalist Evader Sunday, November 11, 2012 - by Staff Report Obama answers questions about the CFR and Patriot Act ... In this 2008 campaign / townhall video, Obama says that he sees no evidence towards a continental government, yet in other videos he has stated ... "world order that I think we'd all like to see." - YouTube Dominant Social Theme: All of this conspiracy talk is paranoid and unproductive. Free-Market Analysis: Thank goodness for the Internet. Even if you are an Obama supporter, this 2008 video should shock you. In it, Obama sidesteps questions about his membership in the elitist Council on Foreign Relations (CFR) and professes to be profoundly troubled by then-President George W. Bush's executive orders reducing US constitutional freedoms. Today, we know that Obama did nothing to defend US civil liberties once he was put in office. Not only did he not reduce George Bush's most invasive executive orders, he added to them. Notably, Obama created a list of US citizens that his administration believes pose an imminent threat to the nation and should be assassinated via drone targeting if possible. It has been pointed out that killing citizens without due process is profoundly authoritarian and violates every aspect of constitutional rights. Dangerous or not, those who the administration believes are an "imminent threat" still are entitled to due process. For some reason, Obama and those who surround him believe they are not. What's also troubling, from our point of view, is the reverence with which the audience treats Barack Obama, thanking him for not taking "lobbyist" funds (whatever that means) and applauding enthusiastically as he evades one question after another. Listen to Obama dodge the real issue - that he is the globalists' point man in the US, the individual the power elite plans to elevate still higher. There is a reason Obama will not reveal his background; it likely shows quite clearly who he really works for ... and wh

"LibertyNEWS.com - Editorial Team Special Report It's never fun to admit you've been lied to and duped. There is no comfort in realizing a high-level group in government has conned you. The wound created from such a realization would be deep and painful when paired with extraordinary insult when you realize the cons are people you not only trusted, but people who are tasked with protecting your rights, your liberty, your life. When these people betray you, you're in trouble - big trouble. Unfortunately, we believe America is being betrayed by powerful individuals tasked with our protection. These people are found in the White House, the Congress, the CIA and other government entities - and they're lying to you. Then they're covering it up on an epic scale, in a never-before-seen manner. Here are the basics of what the schemers in government and the complicit media would like for us all to focus on and buy into: Why wasn't there better security at the consulate (keep this misleading word in mind) in Benghazi? Why didn't authorization come to move special forces in for protection and rescue? Why was an obscure video blamed when everyone knew the video had nothing to do with it? Did Obama's administration cover-up the true nature of the attacks to win an election? Truth is, as we're starting to believe, the above questions are convenient, tactical distractions. And truth is, answers to these questions, if they ever come, will never lead to revelations of the REAL TRUTH and meaningful punishment of anyone found responsible. Rep. Darrell Issa knows this, members of the House Committee investigating the Benghazi attacks know this, the White House knows this, and much of the big corporate media infrastructure knows it, too. How do they know it? Because they know the truth. They know the truth, but cannot and/or will not discuss it in public. Here are the basics that we (America, in general) should be focusing on, but aren't: Why do media

"No one doubts that the coming election will be the most important referendum on the size and nature of government in a generation. But another issue is nearly as important and has gotten far less attention: our crumbling commitment to the rule of law. The notion that we are governed by rules that are transparent and enacted through the legislative process-not by the whims of our leaders-is at the heart of that commitment. If legislators exceed their authority under the Constitution, or if otherwise legitimate laws are misused, courts must step in to prevent or remedy the potential harm. During the 2008 financial crisis, the government repeatedly violated these principles. When regulators bailed out Bear Stearns by engineering its sale to J.P. Morgan Chase, they flagrantly disregarded basic corporate law by "locking up" the transaction so that no other bidder could intervene. When the government bailed out AIG six months later, the Federal Reserve funded the bailout by invoking extraordinary loan powers for what was clearly an acquisition rather than a loan. (The government acquired nearly 80% of AIG's stock.) Two months later, the Treasury Department used money from the $700-billion Troubled Asset Relief Program fund to bail out the car companies. This was dubious. Under the statute, the funds were to be used for financial institutions. But the real violation came a few months later, when the government used a sham bankruptcy sale to transfer Chrysler to Fiat while almost certainly stiffing Chrysler's senior creditors. According to two leading legal scholars, Eric Posner and Adrian Vermeule, rule-of-law violations are inevitable during a crisis. The executive branch takes all necessary steps, even if that means violating the law, until the crisis has passed. The argument is powerful, and its advocates are correct that presidents and other executive-branch officials often push the envelope during a crisis. Yet pushing the envelope isn't the same thing as f

Re "President Obama addressed the issue in a major speech on counter-terrorism policy, saying "I am troubled by the possibility that leak investigations may chill the investigative journalism that holds government accountable," Obama said. "Journalists should not be at legal risk for doing their jobs." That's unless they're not working with a mainstream media company, of course. Witness continuing U.S. efforts to extradite and prosecute Wikileaks founder Julian Assange under the Espionage Act because of the massive leak of classified documents to Wikileaks for which Private Bradley Manning is being prosecuted.

In related news, the nation's largest coal company, Peabody Coal, just filed for bankruptcy. Several other coal companies already have, indicative of plummeting markets and prices for coal. 

More evidence that oil and gas natural resources play a role in Mideast politics and wars. And Joe Biden's "It's good to be home" remark on arrival in Israel adds further evidence that the U.S. is not an honest negotiator/mediator when it comes to Israel/Palestine and the Syrian peace process. It's actually pretty outrageous that a U.S. Vice  President would stoop so low as to call Israel his "home." It's indicative of divided loyalty at best.

"  1 THE LEGAL LIMIT: THE OBAMA ADMINISTRATION'S ATTEMPTS TO EXPAND FEDERAL POWER  Report No. 4: The Obama Administration's Abuse of Power By U.S. Senator Ted Cruz (R-TX) Ranking Member Senate Judiciary Subcommittee on The Constitution, Civil Rights and Human Rights Of all the troubling aspects of the Obama presidency, none is more dangerous than the President's persistent pattern of lawlessness, his willingness to disregard the written law and instead enforce his own policies via executive fiat. The President's taste for unilateral action to circumvent Congress should concern every citizen, regardless of party or ideology. The great 18th-century political philosopher Montesquieu observed: "There can be no liberty where the legislative and executive powers are united in the same person, or body of magistrates." America's Founding Fathers took this warning to heart, and we should too. Rule of law doesn't simply mean that society has laws; dictatorships are often characterized by an abundance of laws. Rather, rule of law means that we are a nation ruled   by laws, not men. No one-and especially not the president-is above the law. For that reason, the U.S. Constitution imposes on every president the express duty to "take Care that the Laws be faithfully executed." R ather than honor this duty, President Obama has openly defied it by repeatedly suspending, delaying, and waiving portions of the laws that he is charged to enforce. When President Obama disagreed with federal immigration laws, he instructed the Justice Department to cease enforcing the laws. He did the same thing with federal welfare law, drug laws, and the federal Defense of Marriage Act. In the more than two centuries of our nation's history, there is simply no precedent for the White House wantonly ignoring federal law and asking others to do the same. For all those who are silent now: What would they think of a Republican president who announced that he was going to ignore th

"  1 THE LEGAL LIMIT: THE OBAMA ADMINISTRATION'S ATTEMPTS TO EXPAND FEDERAL POWER  Report No. 4: The Obama Administration's Abuse of Power By U.S. Senator Ted Cruz (R-TX) Ranking Member Senate Judiciary Subcommittee on The Constitution, Civil Rights and Human Rights Of all the troubling aspects of the Obama presidency, none is more dangerous than the President's persistent pattern of lawlessness, his willingness to disregard the written law and instead enforce his own policies via executive fiat. The President's taste for unilateral action to circumvent Congress should concern every citizen, regardless of party or ideology. The great 18th-century political philosopher Montesquieu observed: "There can be no liberty where the legislative and executive powers are united in the same person, or body of magistrates." America's Founding Fathers took this warning to heart, and we should too. Rule of law doesn't simply mean that society has laws; dictatorships are often characterized by an abundance of laws. Rather, rule of law means that we are a nation ruled   by laws, not men. No one-and especially not the president-is above the law. For that reason, the U.S. Constitution imposes on every president the express duty to "take Care that the Laws be faithfully executed." R ather than honor this duty, President Obama has openly defied it by repeatedly suspending, delaying, and waiving portions of the laws that he is charged to enforce. When President Obama disagreed with federal immigration laws, he instructed the Justice Department to cease enforcing the laws. He did the same thing with federal welfare law, drug laws, and the federal Defense of Marriage Act. In the more than two centuries of our nation's history, there is simply no precedent for the White House wantonly ignoring federal law and asking others to do the same. For all those who are silent now: What would they think of a Republican president who announced that he was going to ignore the law, or unil

The notion that the government can intentionally violate the privacy rights of its citizens yet a court find that those citizens have no right to seek redress announces a view that privacy rights are hollow --- that those wronged by government malfeasance have no remedy in the courts of our nation. That is a view that must be thrown in the dustbins of history if freedom is to be preserved. 

"If you lie to the public about the risks that fossil fuel use poses to life on earth, you are just exercising your right as a citizen," Levine wrote. Correction. Corporations are not citizens; only human beings can achieve that status.  

A wise decision.

This is troubling news. Saudi Arabia has been supplying weapons to the Jihadi Syrian "rebels", i.e., al-Nusra/al-Qaeda, who are the most potent fighting anti-Syrian government forces. The particular class of anti-aircraft missiles to be provided are equivalent to the currently-deployed American Stinger B. See http://en.wikipedia.org/wiki/Man-portable_air-defense_systems#Third_generation The missiles will not stay in Syria, of course. As soon as al-Qaeda is ready to use them elsewhere, they will be.  Look for Russia to respond by announcing the addition of shoulder-fired missiles to the anti-aircraft missiles already to aid in containing the squadron of U.S. F16s now stationed on the Jordan\Syria border. 

So, allegedly a Zionist working in NSA passed NSA's telecommunications data mining software to Israel, was identified, but was never prosecuted. And the Verint CEO is now a fugitive from justice on charges of "fraud, theft, lying, money laundering, and other crimes." What's not to like in having this company processing all of our telephone metadata?