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A must-read.

Dmitry Orlov with a humorous yet inscisient take on the state and future of the oil market. Spoiler: He sees signs of desperation amongst the leaders of the American Empire, reduced to no viable options. 

"inscisient"? Make that "incisive." Follow reading Orlov's piece by reading Mike Whitney's latest at http://www.counterpunch.org/2015/01/20/are-plunging-petrodollar-revenues-behind-the-feds-projected-rate-hikes/ A lot of confirmation of what Orlov said in Whitney's article, citing hard numbers. Mass layoffs in the U.S. and Canadian oil industry; the petrodolar has stopped providing liquidity for the dollar; and the Fed plans to raise interest rates to force an influx of dollars from developing nations, in order to replace the petrodollar liquidity crisis. Whitney makes a strong case that it's a plot by the big banksters to steal another huge pile of cash at the expense of a huge number of jobs in the U.S. Both Orlov and Whitney say that it's going to be a very rough ride for the 99 per cent and for the population of developing nations. Indeed, Whitney's numbers say we are already over the precipice on jobs and well into free-fall.

But last night, Obama had the gall to claim that all is just peachy-k een on the jobs front. As he helps the banksters offshore another huge number of U.S. jobs.

Just days prior to the Obama Foreclosure Settlement Act, Bloomberg filed this stunning report demonstrating that, if left alone, the markets have a way of working things out.  Looks to me like Obama and the big Banksters have found a way to stop the wave of successful short sales.  The door is now open for the big Banksters to go full tilt boogey on Foreclosures.  Even without legal documentation or fix of illegal document mills.  It's foreclosure time in America! From Bloomberg: Banks, accelerating efforts to move troubled mortgages off their books, are offering as much as $35,000 or more in cash to delinquent homeowners to sell their properties for less than they owe. Lenders have routinely delayed or blocked such transactions, known as short sales, in which they accept less from a buyer than the seller's outstanding loan. Now banks have decided the deals are faster and less costly than foreclosures, which have slowed in response to regulatory probes of abusive practices. Banks are nudging potential sellers by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing large cash incentives, said Bill Fricke, senior credit officer for Moody's Investors Service in New York. Losses for lenders are about 15 percent lower on the sales than on foreclosures, which can take years to complete while taxes and legal, maintenance and other costs accumulate, according to Moody's. The deals accounted for 33 percent of financially distressed transactions in November, up from 24 percent a year earlier, said CoreLogic Inc., a Santa Ana, California-based real estate information company.

So according to Bloomberg, JPMorgan's commercial bank was the recipient of 99 percent of JPMorgan's $79 trillion (face value of derivatives) in bad bets. So adding JPMorgan's $78 trillion or so to the $75 trillion in bad bets Bank of America unloaded on its FDIC insured subsidiary, we arrive at $153 trillion in bad bets moved by two investment banks alone under the FDIC umbrella. Meanwhile, FDIC has authority under Dodd-Frank to liquidate these insolvent banks but doesn't, despite several successful lawsuits to recover the value of toxic derivatives that they sold to smaller banks that failed (which implies that FDIC could tell JPMorgan and BoA's investment banksters that they've got to pay off the toxic assets they transferred to their commercial banks, rather than diluting the insurance for normal depositors. Problem: the two big investment banks don't have sufficient assets to absorb those losses, so the too-politically-connected-to-fail factor kicks in. Note that I have not done any legal research in regard to these issues and am basing these observations on what has been stated about legal requirements in various media articles.

Another take on it from EFF: https://www.eff.org/deeplinks/2015/10/europes-court-justice-nsa-surveilance Expected since the Court's Advocate General released an opinion last week, presaging today's opinion.  Very big bucks involved behind the scenes because removing U.S.-based internet companies from the scene in the E.U. would pave the way for growth of E.U.-based companies.  The way forward for the U.S. companies is even more dicey because of a case now pending in the U.S.  The Second U.S. Circuit Court of Appeals is about to decide a related case in which Microsoft was ordered by the lower court to produce email records stored on a server in Ireland. . Should the Second Circuit uphold the order and the Supreme Court deny review, then under the principles announced today by the Court in the E.U., no U.S.-based company could ever be allowed to have "possession, custody, or control" of the data of E.U. citizens. You can bet that the E.U. case will weigh heavily in the Second Circuit's deliberations.  The E.U. decision is by far and away the largest legal event yet flowing out of the Edward Snowden disclosures, tectonic in scale. Up to now, Congress has succeeded in confining all NSA reforms to apply only to U.S. citizens. But now the large U.S. internet companies, Google, Facebook, Microsoft, Dropbox, etc., face the loss of all Europe as a market. Congress *will* be forced by their lobbying power to extend privacy protections to "non-U.S. persons."  Thank you again, Edward Snowden.

Excellent review of Japan's "Lost Decade" and the current Obama socialist folly of creating similar "Zombie Banks". Baker sites the evidence of ".... a mountain of toxic assets, housing market declines, a sharp economic recession, rising unemployment and increasing taxpayer exposure through guarantees, loans, and infusion of capital - strongly suggests that some American banks face a solvency problem and not merely a liquidity one...." He recommends the Nouriel Roubini plan, a harsh course of action but one that would get the job done. "......This approach is not pretty or easy. It will cost a lot of money, with the lion's share coming from US taxpayers, at least in the short to medium term. But the alternative - a piecemeal pumping of more public money into insolvent banks in the vague hope that things will improve down the road - could truly be historic folly. Eventually our banks and economy will start to recover. When they do, we would be wise to avoid another Japanese mistake - raising taxes. To counter mounting debt created by government stimulus packages, Japan increased taxes in 1997. Consumption dropped and the country's economy collapsed. Our ad hoc approach to the banking crisis has helped financial institutions conceal losses, favoured shareholders over taxpayers, and protected senior bank managers from the consequences of their mistakes. Worst of all, it has crippled our credit system just at a time when the US and the world need to see it healthy.

Porter discusses inflation and the disastrous impact the Federal Reserve Bankster Cartel is having on the wealth of Americans.  An interesting chart he provides is the one pricing the Stock Market in GOLD.  Everything should be priced and evaluated in terms of GOLD instead of Federal Reserve paper.  The world would be a better place. there are only two repubican presidential candidates calling for an end of the Bankster Cartel; Ron Paul and Rick Perry.  The rest are with Obama, deep in the Bankster pocket.  Very sad.  But then, the Occupy Wall Street movement is camped out on Wall Street, while the Tea Party movement is Occupying the heart of the Bankster criminal empire - the Federal Reserve Banks.  Both movements seem to be protesting the same criminal Bankster problem.  But OWS has been fooled by the ol "nothing up my sleeve" illusion. excerpt: Here's the fact: America's standard of living is falling at a faster pace today than at any time since the Great Depression. Specifically, the real median income is down 9.8% since the fall of 2008. Additionally, Americans have lost roughly $5.5 trillion in asset value, or about 8.6% of their wealth. When you talk about a depression, what you're really talking about is a collapse in the standard of living. That's what's happening today, right now, in our country. But people continue to go about their lives as though nothing is happening. Certainly, our politicians don't want to draw attention to the problem. Instead, they are behind the campaign to "paper over" these losses with schemes like "quantitative easing." These schemes do nothing to make our economy more productive. They're designed instead to make prices rise so people (hopefully) won't notice how poor they're becoming. If you've been reading my newsletters since 2008, none of this is a surprise to you. I've been warning month after month, year after year, that the government's efforts to paper over our bad debts won't work. And they won't work for tw

Highlighted statements are scattered and buried deep in an article mostly about new accusations against Russia. Coup government President Poroshenko's statement that he is working toward a peace roadmap represents an abrupt departure from that government's stance since it began its invasion of separatist-held territory in eastern Ukraine, that only the unconditional surrender of the separatists could halt the coup government's attack. Lying behind that statement (from other reports) is the fact that the tide of battle has turned sharply; the coup government's mostly-conscript army forces are variously surrounded or retreating as the separatists gain the upper hand. Moreover, nearly all of the coup government attack airplanes and helicopters have been destroyed by separatist MANPAD shoulder-fired ground-to-air missiles.  On coup government Prime Minister Yatseniuk's expressed need for "'practical help' and 'momentous decisions' from NATO at an alliance summit next month," I'd love to be a fly on wall during that meeting if the coup government's military situation continues to deteriorate. The U.S. is the only NATO member that wants further confrontation in Ukraine. Notwithstanding U.S. rhetoric threatening military action against Russia, it's doubtful that any military officers holding the rank needed to attend that NATO meeting would support NATO action against Russia so close to its own backyard. Russia has nukes aplenty, so it comes down to the ability to win a conventional war against Russia in Russia and the Ukraine. Far easier said than done, as both Napoleon Bonaparte and Adolph Hitler learned the hard way. Russia remains the nation with the second post powerful military in the world and would be playing on the home court with the ferocity of the Russian Bear. The U.S. would bring the most powerful force, both augmented and semi-crippled by taking the lead among reluctant NATO nation military forces. All to protect the U.S. dollar's dwindling purchasing powe

Excellent analysis of the coming banking crisis anw how our politicians have put the citizens on the hook for risky bank derivative gambling.  Thanks Marbux! Ellen H. Brown (nsnbc) : While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US.  Poverty also kills.

Will Obama rethink his push for sanctions against and military encirclement of Russia? One would suspect that the banksters will soon be pushing him to do so.

Russia takes aim at the Fed's printing press with a U.S. dollar boycott to end the war in Ukraine. There are a lot of incentives for EU investors to join the boycott. Interesting idea; I'll need to think about this.  

S&P wants the US to generate enough savings from its debt deal to stabilize the national debt so that it will no longer continue to grow faster than the economy. Its concerns were divided into two categories. First, the Americans are growing old and the consequent increases in entitlement costs cannot be sustained alone by the current tax collections for programs like Social Security. So, the government needs to create a framework to address the costs of an aging American population. This could require an increase in the age limit at which Social Security and Medicare Benefits could be accessed and to exclude those people who have savings or jobs from both of these programs.   The other crucial area of concerns highlighted by S&P is that budget cuts alone are not enough to reduce deficits. So taxes have to be increased to add revenue to the Treasury. While increasing revenue and cutting spending will help in reducing the deficit and help in balancing the budget. A cap on spending would act as sort of a stopgap preventing lawmakers from letting party politics put a blockade in the way on necessary steps towards the economic recovery of the US.   Analysts believe that the US needs to compromise on its defence budget also, which still supports large deployments of armed forces and material overseas. The US has commitments to NATO in Afghanistan and Iraq, and the federal government believes that it needs to support strategic initiatives in place like Japan. The government has to take strong steps in its policy towards these obligations to put the country's economy back on track.   The US owes maximum of its debt to China. So the Congress needs to put pressure on the Chinese government to alter the value of its currency to make the trade between the two countries fair. Furthermore, cheap goods exported by China have caused a loss of manufacturing jobs in the US, so the latter should place tariffs on more Chinese goods as a way to raise money and prevent dumping of pro

With commercial banks overloaded by investment bank derivative debt, a bank is the very last place one should park their money. See http://tinyurl.com/3oj7vbs and http://tinyurl.com/3ovf6ze FDIC insurance is now of value only to senior debtors, not to deposit account holders.