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"During 2015 the attack on bullion prices has intensified, driving the prices lower than they have been for years. During the first quarter of this year there was a huge upward spike in the quantity of precious metal derivatives. If these were long positions hedging the banks' Comex shorts, why did the price of gold and silver decline? More evidence of manipulation comes from the continuing fall in the prices of gold and silver as set in paper future markets, although demand for the physical metals continues to rise even to the point that the US Mint has run out of silver coins to sell. Uncertainties arising from the Greek No vote increase systemic uncertainty. The normal response would be rising, not falling, bullion prices. The circumstantial evidence is that the unregulated OTC derivatives in gold and silver are not really hedges to short positions in Comex but are themselves structured as an additional attack on precious metal prices. If this supposition is correct, it indicates that seven years of bailing out the big banks that control the Federal Reserve and US Treasury at the expense of the US economy has threatened the US dollar to the extent that the dollar must be protected at all cost, including US regulatory tolerance of illegal activity to suppress gold and silver prices."

As Congressional moron after Congressional moron goes on the usual Sunday talk show circuit and says we must stop home prices from falling, I wonder whether these people took basic math in high school. Are they capable of looking at a chart and understanding a long-term average? The median value of a U.S. home in 2000 was $119,600. It peaked at $221,900 in 2006. Historically, home prices have risen annually in line with CPI. If they had followed the long-term trend, they would have increased by 17% to $140,000. Instead, they skyrocketed by 86% due to Alan Greenspan's irrational lowering of interest rates to 1%, the criminal pushing of loans by lowlife mortgage brokers, the greed and hubris of investment bankers and the foolishness and stupidity of home buyers. It is now 2009 and the median value should be $150,000 based on historical precedent. The median value at the end of 2008 was $180,100. Therefore, home prices are still 20% overvalued. Long-term averages are created by periods of overvaluation followed by periods of undervaluation. Prices need to fall 20% and could fall 30%. Instead of allowing the housing market to correct to its fair value, President Obama and Barney Frank will attempt to "mitigate" foreclosures. Mr. Frank has big plans for your tax dollars, "We may need more than $50 billion for foreclosure [mitigation]". What this means is that you will be making your monthly mortgage payment and in addition you will be making a $100 payment per month for a deadbeat who bought more house than they could afford, is still watching a 52 inch HDTV, still eating in their perfect kitchens with granite countertops and stainless steel appliances. Barney thinks he can reverse the law of supply and demand by throwing your money at the problem. He will succeed in wasting billions of tax dollars and home prices will still fall 20% to 30%. Unsustainably high home prices can not be sustained. I would normally say that even a 3rd grader could understand this conce

Why are Markets still Falling? The Tsunami caused by Derivatives and Deleveraging The invisible elephant in the room causing continuous falls in global financial markets is the link to the privately traded Credit Default Swaps (CDS) and the financial uncertainty they have created whilst synchronised deleveraging takes place across the world. ... Credit default swaps are unregulated financial derivatives which act as debt insurance on risky assets like mortgages, corporate and government bonds. But unlike a normal insurance policy, financial institutions that sell credit default swaps are not required to have enough funds in reserve should those risky loans turn bad. Since the US Congress in 2000 declined to regulate these contracts as it does insurance, the companies that guarantee the assets are not required by law to keep enough capital on hand to pay them off in the event of a default.

This article is more than 2-1/2 months old yet this is the first I've heard of it.  Pretty frightening "end-run" the administration is trying. Obama Finds Legal Way Around The 2nd. Amendment and Uses It. http://www.reuters.com/article/politicsNews/idUSTRE59E0Q920091015 On Wednesday the Obama administration took its first major step in a plan to ban all firearms in the United States . The Obama administration intends to force gun control and a complete ban on all weapons for US citizens through the signing of international treaties with foreign nations. By signing international treaties on gun control, the Obama administration can use the US State Department to bypass the normal legislative process in Congress. Once the US Government signs these international treaties, all US citizens will be subject to those gun laws created by foreign governments. These are laws that have been developed and promoted by organizations such as the United Nations and individuals such as George Soros and Michael Bloomberg. The laws are designed and intended to lead to the complete ban and confiscation of all firearms.  The Obama administration is attempting to use tactics and methods of gun control that will inflict major damage to our 2nd Amendment before US citizens even understand what has happened. Obama can appear before the public and tell them that he does not intend to pursue any legislation (in the United States) that will lead to new gun control laws, while cloaked in secrecy, his Secretary of State, Hillary Clinton is committing the US to international treaties and foreign gun control laws. Does that mean Obama is telling the truth? What it means is that there will be no publicized gun control debates in the media or votes in Congress. We will wake up one morning and find that the United States has signed a treaty that prohibits firearm and ammunition manufacturers from selling to the public. We will wake up another morning and find that the US has signed a treaty that pro

I've been reading John Mauldin's newsletter for some time now.  The guy is so grounded, and his writing style is fluid.  Mostly though i appreciate the depth of background information that surrounds the simplicity of his explanations.  Note his connections to George Friedman, Niall Ferguson David Rosenberg, Lacy Hunt and Gary Shilling.  Quite a murders row of economic thinking.  anyway, John's newsletter has become the bottom line of my economic thinking. excerpt:     "Our immersion in the details of crises that have arisen over the past eight centuries and in data on them has led us to conclude that the most commonly repeated and most expensive investment advice ever given in the boom just before a financial crisis stems from the perception that 'this time is different.' That advice, that the old rules of valuation no longer apply, is usually followed up with vigor. Financial professionals and, all too often, government leaders explain that we are doing things better than before, we are smarter, and we have learned from past mistakes. Each time, society convinces itself that the current boom, unlike the many booms that preceded catastrophic collapses in the past, is built on sound fundamentals, structural reforms, technological innovation, and good policy." - This Time is Different (Carmen M. Reinhart and Kenneth Rogoff) When does a potential crisis become an actual crisis, and how and why does it happen? Why did most everyone believe there were no problems in the US (or Japanese or European or British) economies in 2006? Yet now we are mired in a very difficult situation. "The subprime problem will be contained," said now controversially confirmed Fed Chairman Bernanke, just months before the implosion and significant Fed intervention. I have just returned from Europe, and the discussion often turned to the potential of a crisis in the Eurozone if Greece defaults. Plus, we take a look at the very positive US GDP numbers released this morning. Are we final

Wow!  This is the best response to the financial collapse i have read to date.  Exceptional in clarity, but written with a tone of mixed sorrow and shame.  Mr. Gallow places the blame exactly where it should be placed.  It's a generational thing with one exception Mr. Gallow overlooks - the Obama margin of victory was very much due to the massive turnout and votes of post baby boomer generations.  We boomers may have created and caused the financial collapse and destruction of America, but they were dumb enough to put the decline of capitalism and ordered liberty on marxist steroids. excerpt:  .... this is the first time that I have been so angered by incompetence and greed in government and Wall Street to express publicly my own thoughts.  In simple terms, what has dawned on me is that my generation, the "Baby Boomers" between the ages of 45 and 65, has emerged not as not the most significant or talented generation in our history (as we thought we were), but rather as the most self-absorbed and reckless. Because ours will be the first generation in the history of this country to leave to its successors a nation in worse shape than that which it inherited; put differently, we will be the first generation in this nation to have taken from our parents and stolen from our children. .. it is hard to avoid the reality that my generation, the baby boomers who are now approaching retirement, have caused the greatest collapse of the world economy since the 1930s, and in the process damaged this country in ways we are now only beginning to understand. ... Looking back more eighteen months after the first signs of distress in our economy appeared, it seems that leaders in Congress and Wall Street have erred in a manner never before witnessed in this nation.  In the process, they have conspired through their collective arrogance, greed, and ignorance to damage the economy of the country (if not the world), make many themselves rich beyond the imaginations of mo

Daniel Henninger Says Blaming Capitalism for the Crisis Overlooks the Housing Bubble - WSJ.com: "Heads of state, perplexed finance ministers, inflated retinues and journalists from 20 nations arrived in London yesterday to address "the greatest financial crisis since the Depression." By 4 p.m. London time today they will hold a press conference and go home." "Beware of real-estate salesmen. The housing bubble that floated into view in 2007 is turning into the blob that ate the world. Real-estate mortgages and their derivative securities are a significant problem. That discrete problem, however, has been pumped up to an historic "crisis of capitalism." Capitalism didn't tank the U.S. economy. Overbuilt housing did. Overbuilt housing tanked the economies of the U.K. and Ireland and Spain. If little else, we've learned that artificially cheap housing sets loose limitless moral hazard." "In a normal environment, the problems revealed by the crisis in mortgage finance would produce fixes relevant to the problem, such as resetting the ratios of assets to capital for banks and hedge funds, or telling the gnomes of finance to rethink mark-to-market and the uptick rule. More energetic reformers might consider Gary Becker's suggestion that as financial institutions expand in size, their capital requirements tighten, so that compulsive eaters like Citigroup can fit inside their capital base." "Two signal events in history are shaping the politics of the current economic crisis: the Great Depression and the Reagan presidency (and in Europe, Thatcherism)." "The Depression put in motion an historic tension between public and private sectors over who sets a nation's course. After 50 years of public dominance, Reagan's presidency tipped the scales back toward private enterprise. The economic life of the ensuing 35 years became "the American model." Every waking hour of this economically liberal era, the losing side has wanted to tip the balance back toward public-sector

If this doesn't make you sick, nothing will!  Incredible. excerpt:  It really is hard to find the words to describe the true horror of the national debt.  The U.S. government has been on the greatest debt binge in all of human history, and a day of reckoning is coming that is going to be so painful that it is going to shock America to the core.  Click here to see the facts > We have lived so far above our means for so long that none of us really has any concept of what "normal" is like anymore.  The United States has enjoyed the greatest party in the history of the world, but now this decades-old party is ending and the bills are coming due.  It was Dick Cheney who famously said that "deficits don't matter".  Well, try telling that to the nation of Greece right about now.  The horror that Greece is just beginning to experience is a preview of what is going to happen to us as well.  Only when it happens to us it is going to be so much worse, because when we go down we are going to bring the entire global financial system down with us. What we have done to future generations is beyond sickening.  Previous generations entrusted to us the greatest economic machine in the history of the world and we destroyed it.  Now we are leaving to our children and our grandchildren an economic future that has been totally wiped out and a national debt of more than 14 trillion dollars that we expect them to repay.................

"The first world war... Look back with angst ... Thanks to its military, economic and soft power, America is still indispensable, particularly in dealing with threats like climate change and terror, which cross borders. But unless America behaves as a leader and the guarantor of the world order, it will be inviting regional powers to test their strength by bullying neighbouring countries. The chances are that none of the world's present dangers will lead to anything that compares to the horrors of 1914. Madness, whether motivated by race, religion or tribe, usually gives ground to rational self-interest. But when it triumphs, it leads to carnage, so to assume that reason will prevail is to be culpably complacent. That is the lesson of a century ago. - Economist Magazine Dominant Social Theme: Beware the coming wars ... Free-Market Analysis: You can't make this stuff up. The top men in the globalist community have been hard at work building wars and potential wars, and now it's time to let 'er rip. This is one dominant social theme we saw coming miles away. We've been writing about its imminence for years, and predicting war and more war as internationalists try to blunt the effect of the Internet Reformation. After the Gutenberg press blew up the Middle Ages and the Roman Catholic Church besides, the globalists of the era used economic chaos, war and the invention of copyright to fight back. We predicted they would use the same tools this time around and have no reason to revise our predictions thus far. The only thing we've consistently pointed out that has not yet been addressed is the inability of the top men to launch a full-out world war because that would involve nuclear weapons. And lacking a full-out war, we have questioned how successful the strategy can be. Obviously, the top elites see something we don't. Or perhaps they are willing to risk an all-out war anyway - as they retreat into reported fully-stocked, underground "cities." Here's more fro

On the proposed EU sanctions, from other reports Slovakia and Czechoslovakia are expected to veto them. The major news here is that the turning of the tide in the Ukraine civil war is finally making it into mainstream media, although they continue to include in each article the U.S. propaganda that Russia has invaded, but clearly identified as U.S. "accusations," which hints that MSM is not convinced the U.S. is telling the truth here. The normal journalistic practice is to simply quote a person, add a comma followed by "said," a neutral point of view grammatical construct. "Accuse" is far less neutral, flagging that the reporter is not convinced of the statement's truth.    

ACLU v. Clapper case on appeal before the Second Circuit. District Judge Paulley had granted the government's motion to dismiss. ACLU took it's appeal from that ruling. At issue is the legality of the NSA bulk telephone metadata collection. Predicting outcomes on the basis of judges' questions at hearing is risky. But I agree with the article that the judges gave the government's position a chilly reception. Normally, federal appellate hearings are scheduled for 20 minutes. This one was given an hour plus 45 minutes. CSPAN did a good job of the video recording, but the audio is out of sync with the video, at least with my connection. Still, a very interesting argument.  

More detail on the very interesting Restis case against UANI. The normal rule is that a privilege, once the privileged information is disclosed to one who is not entitled to the privilege, is deemed waived. So Restis' lawyer is correct in stating that the state secrets privilege cannot be used without the government explaining the true nature of its relationship to UANI, assuming the information was not stolen by UANI. The disclosure is new of UANI having former directors of Israeli and German intelligence services on its advisory board. This case looks like a cyst on the verge of rupturing and spewing forth a whole bunch of Dark Government pus.   

"Michael Hayden, the former CIA and NSA director, has revealed what most people already suspected -- to him, the Constitution is a document that he can rewrite based on his personal beliefs at any particular time, as noted by Conor Friedersdorf at the Atlantic. Specifically, he admits that after September 11th, 2001, he was able to totally reinterpret the 4th Amendment to mean something entirely different: In a speech at Washington and Lee University, Michael Hayden, a former head of both the CIA and NSA, opined on signals intelligence under the Constitution, arguing that what the 4th Amendment forbids changed after September 11, 2001. He noted that "unreasonable search and seizure," is prohibited under the Constitution, but cast it as a living document, with "reasonableness" determined by "the totality of circumstances in which we find ourselves in history." He explained that as the NSA's leader, tactics he found unreasonable on September 10, 2001 struck him as reasonable the next day, after roughly 3,000 were killed. "I actually started to do different things," he said. "And I didn't need to ask 'mother, may I' from the Congress or the president or anyone else. It was within my charter, but in terms of the mature judgment about what's reasonable and what's not reasonable, the death of 3,000 countrymen kind of took me in a direction over here, perfectly within my authority, but a different place than the one in which I was located before the attacks took place. So if we're going to draw this line I think we have to understand that it's kind of a movable feast here." While it's true that the 4th Amendment does ban "unreasonable search and seizure," it seems like quite an interpretation to argue that "reasonableness" depends on what some third party does to us. That seems morally dangerous -- and it seems like a direct admission to terrorists that if they want to eviscerate the rights of Americans, they just need to keep on attacking, because folks like Hayden will

"It was August 2, 1990, and Saddam Hussein, formerly Washington's man in Baghdad and its ally against fundamentalist Iran, had just sent his troops across the border into oil-rich Kuwait.  It would prove a turning point in American Middle East policy. Six days later, a brigade of the 82nd Airborne Division was dispatched to Saudi Arabia as the vanguard of what the U.S. Army termed "the largest deployment of American troops since Vietnam." The rest of the division would soon follow as part of Operation Desert Storm, which was supposed to drive Saddam's troops from Kuwait and fell the Iraqi autocrat.  The division's battle cry: "The road home... is through Baghdad!" In fact, while paratroopers from the 82nd Airborne penetrated deep into Iraq in the 100-day campaign that followed, no American soldier would make it to the Iraqi capital -- not that time around, anyway.  After the quick triumph of the Gulf War, the Airborne's paratroops instead returned to Ft. Bragg, North Carolina.  And that, it seemed, was the end of the matter, victory parades and all.  Naturally, the soldiers using that battle cry did not have the advantage of history.  They had no way of knowing that it would have been more accurate to chant something like: "The road home always leads back to Baghdad!"  After all, when the First Gulf War ended in the crushing defeat of Saddam's forces and he nonetheless remained in power, the stage was set for the invasion that began Iraq War 2.0 a dozen years later.  Perhaps you still remember that particular "mission accomplished" moment. In the course of that invasion, the 82nd Airborne would conduct "sustained combat operations throughout Iraq."  Once the occupation of the country began, paratroopers from the division would return to Iraq in August 2003 to, as an Army website puts it, "continue command and control over combat operations in and around Baghdad."  In other words, they were tasked with repressing the insurgen

Very well-written essay leading to a reasoned prediction that the U.S.-Cuban negotiation over normalization of relations will fail. 

Seems that the EU may be beginning a transition from U.S. rule to embrace trade with Russia. 

"The other day, as I was reading through the New York Times, I came upon this headline: "Powerful Afghan Police Chief Killed in Kabul." His name was Matiullah Khan.  He had once been "an illiterate highway patrol commander" in an obscure southern province of Afghanistan and was taken out in a "targeted suicide bombing" on the streets of the capital -- and I realized that I knew him!  Since I've never been within a few thousand miles of Kabul, I certainly didn't know him in the normal sense. I had, you might say, edited Matiullah Khan. He was one of a crop of new warlords who rose to wealth and power by hitching their ambitions to the American war and the U.S. military personnel sent to their country to fight it.  Khan, in particular, made staggering sums by essentially setting up an "Afghan Blackwater," a hire-a-gun -- in fact, so many guns -- protection agency for American convoys delivering supplies to far-flung U.S. bases and outposts in southern Afghanistan. He became the protector and benefactor of a remarkable Afghan woman who is a key character in Anand Gopal's No Good Men Among the Living: America, the Taliban, and the War Through Afghan Eyes, which I edited and published in the American Empire Project series I co-run for Metropolitan Books. I don't think it's an exaggeration to say that Gopal covered the Afghan War for years in a way no other Western journalist did. He spent time with crucial allies of Afghan President Hamid Karzai and with a Taliban commander, with warlords and American Special Ops guys, politicians and housewives. He traveled rural Afghanistan as few American reporters were capable of doing.  In the process, he made a discovery that was startling indeed and has yet to really sink in here. In a nutshell, in 2001, the invading Americans put al-Qaeda to flight and crushed the Taliban.  From most of its top leadership to its foot soldiers, the Talibs were almost uniformly prepared, even eager, to put down thei

The neocons are howling about former Reagan Secretary of State James Baker being one of Jeb Bush's advisors. Baker has never been forgiven by the neocons since he barred the Israeli Deputy Foreign Minister -- Benjamin Netanyahu -- from being allowed into the State Dept. building because of his outrageous public statements. Now Baker is doubly hated because he is scheduled to be a keynote.  speaker at a conference of the liberal pro-Israel J Street lobbying group. J Street is "left-leaning" in neocon eyes because it actully supports a 2-state solution in Palestine, rather than using the 2-state solution as a political fig leaf while Israel completes its colonization of Palestine and then annexes it. But while screaming that only AIPAC represents Israel's real interests and acknowledging that Baker is closely tied to the Bush family, they're not addressing the political reality that Baker is the global oil industry's top lobbyist nor the fact that it was Baker who put the kibosh on the neocons' goal of privatizing all the oil in Iraq and flooding the market with cheap oil to break the OPEC Cartel. The western oil companies are profoundly against privately owned oil in the Mideast and even less enthused about breaking the OPEC Cartel, which normally keep crude oil prices high, enabling higher oil company profits. Apparently the oil industry also wants the 2-state solution to actually happen in order to obtain a more stable Middle East. And that is anathema to Netanyahu, AIPAC, and the neocons..