Global Cooling and the New World Order. Global Cooling on the Agenda of the Bilderbergslink
Bilderberg. Whether you believe it’s part of a sinister conspiracy which will lead inexorably to one world government or whether you think it’s just an innocent high-level talking shop, there’s one thing that can’t be denied: it knows which way the wind is blowing. (Hat tips: Will/NoIdea/Ozboy)
At its June meeting in Sitges, Spain (unreported and held in camera, as is Bilderberg’s way), some of the world’s most powerful CEOs rubbed shoulders with notable academics and leading politicians. They included: the chairman of Fiat, the Irish Attorney General Paul Gallagher, the US special representative for Afghanistan and Pakistan Richard Holbrooke, Henry Kissinger, Bill Gates, Dick Perle, the Queen of the Netherlands, the editor of the Economist…. Definitely not Z-list, in other words.
Which is what makes one particular item on the group’s discussion agenda so tremendously significant. See if you can spot the one I mean:
The 58th Bilderberg Meeting will be held in Sitges, Spain 3 – 6 June 2010. The Conference will deal mainly with Financial Reform, Security, Cyber Technology, Energy, Pakistan, Afghanistan, World Food Problem, Global Cooling, Social Networking, Medical Science, EU-US relations.
Yep, that’s right. Global Cooling.
Which means one of two things.
Either it was a printing error.
Or the global elite is perfectly well aware that global cooling represents a far more serious and imminent threat to the world than global warming, but is so far unwilling to admit it except behind closed doors.
Let me explain briefly why this is a bombshell waiting to explode.
Almost every government in the Western world from the USA to Britain to all the other EU states to Australia and New Zealand is currently committed to a policy of “decarbonisation.” This in turn is justified to (increasingly sceptical) electorates on the grounds that man-made CO2 is a prime driver of dangerous global warming and must therefore be reduced drastically, at no matter what social, economic and environmental cost. In the Eighties and Nineties, the global elite had a nice run of hot weather to support their (scientifically dubious) claims. But now they don’t. Winters are getting colder. Fuel bills are rising (in the name of combating climate change, natch). The wheels are starting to come off the AGW bandwagon. Ordinary people, resisting two decades of concerted brainwashing, are starting to notice.
All this, of course, spells big trouble for the global power elite. As well as leading to food shortages (as, for example, it becomes harder to grow wheat in northerly latitudes; adding, of course, to such already-present disasters as biofuels and the rejection of GM), global cooling is going to find electorates increasingly angry that they have been sold a pup.
Our fuel bills have risen inexorably; our countryside, our views and our property values have been ravaged by hideous wind farms; our holidays have been made more expensive; our cost of living has been driven up by green taxes; our freedoms have been curtailed in any number of pettily irritating ways from what kind of light bulbs we are permitted to use to how we dispose of our rubbish. And to what end? If man-made global warming was really happening and really a problem we might possibly have carried on putting up with all these constraints on our liberty and assaults on our income. But if it turns out to have been a myth……
Well then, all bets are off.
The next few years are going to be very interesting. Watch the global power elite squirming to reposition itself as it slowly distances itself from Anthropogenic Global Warming (”Who? Us? No. We never thought of it as more than a quaint theory…”), and tries to find new ways of justifying green taxation and control. (Ocean acidification; biodiversity; et al). You’ll notice sly shifts in policy spin. In Britain, for example, Chris “Chicken Little” Huhne’s suicidal “dash for wind” will be re-invented as a vital step towards “energy security.” There will be less talk of “combatting climate change” and more talk of “mitigation”. You’ll hear enviro-Nazis like Obama’s Science Czar John Holdren avoid reference to “global warming” like the plague, preferring the more reliably vague phrase “global climate disruption.”
And you know what the worst thing is? If we allow them to, they’re going to get away with it.
Our duty as free citizens over the next few years is to make sure that they don’t.
Al Gore, George Soros, Bill Gates, Carol Browner, John Holdren, Barack Obama, David Cameron, Ed Miliband, Tim Yeo, Michael Mann, Ted Turner, Robert Redford, Phil Jones, Chris Huhne, John Howard (yes really, he was supposed to be a conservative, but he was the man who kicked off Australia’s ETS), Julia Gillard, Kevin Rudd, Yvo de Boer, Rajendra Pachauri….The list of the guilty goes on and on. Each in his own way – and whether through ignorance, naivety idealism or cynicism, it really doesn’t matter for the result has been the same – has done his bit to push the greatest con-trick in the history of science, forcing on global consumers the biggest bill in the history taxation, using “global warming” as an excuse to extend the reach of government further than it has ever gone before.
It is time we put a stop to this. In the US, the Tea Party movement is showing us the way. We need to punish these dodgy politicians at the ballot box. We need to ensure that those scientists guilty of malfeasance are, at the very least thrown out of the jobs which we taxpayers have been funding these last decades. We need to ensure that corporatist profiteers are no longer able to benefit from the distortion and corruption of the markets which result from green regulation.
We need a “Global Warming” Nuremberg.
Los Angeles laughs at recent “invisible summer” AP articlelink
Downtown Los Angeles scorches with temperatures 110+ F … NWS Current temp at USC
[UPDATE: For a look at the USC station see this WUWT post. -Anthony]
Quick flashback 5-days ago: USA Today / AP: California’s ‘invisible summer’ slips away and the obligatory image of the hooded sweatshirt jogger…
LOS ANGELES — No need to root around the closet for sweaters and jackets: Californians never really put them away this year.“The invisible summer, seamless from spring to fall,” said Bill Patzert, a scientist at NASA‘s Jet Propulsion Laboratory who studies the role of oceans in the global climate.
In Los Angeles, the last full day of summer passed Tuesday under the gloom of a deep marine layer — the low clouds and fog that put a damper on many beach excursions and made a dip in the surf bracing.
“The ocean never warmed,” Patzert said.As if on cue, the beginning of fall heralds a brief but impressive heat wave with temperatures well above 100F in locations that saw a below-average, somewhat gloomy summer 2010.
Today: USA Today / AP reports: Scorching heat raises wildfire fears in California
Comment ideas: how can these extreme temperatures be related to global warming / climate change and “consistent” with what climate models “have shown/predicted” would happen? Please forget everything about the article 5-days ago and focus on today’s record heat.LOS ANGELES (AP) — It’s been a scorching start for fall in California and it only looks to be getting hotter.Summer-like temperatures were expected through Monday, with downtown Los Angeles predicted to reach a high of 107 degrees. That would break a record for the day of 106 degrees that was set in 1963.
Nanodiamonds in Greenland Ice -
Evidence of Explosions in the Sky at a Magnetic Reversallink
Evidence of Explosions in the Sky at a Magnetic Reversallink
| 15 Sep 10 — A layer of trillions of nanosize diamonds discovered in the Greenland ice sheet "adds credence to the hypothesis that fragments of a comet struck across North America and Europe about 12,900 years ago," says this article in Science Daily. "There is a layer in the ice with a great abundance of diamonds," said James Kennett, professor emeritus in the Department of Earth Science at UC Santa Barbara. "The diamonds |  Image of nanodiamonds from Greenland Ice Sheet. (Credit: James C. Weaver UCSB) |
| are so tiny that they can only be observed with special, highly magnifying microscopes. They number in the trillions." | |
| I don't agree with Kennett's assessment. I think the Greenland nanodiamonds lend credence to my hypothesis that giant explosions in the sky during the Gothenburg magnetic reversal created vast amounts of carbon - including the nanodiamonds - which then rained onto our planet. (See "Magnetic Reversals and Evolutionary Leaps.") |
This discovery supports earlier published evidence for a cosmic impact event about 12,900 years ago, Kennett explained.
Previously, Kennett and his son, Douglas J. Kennett, of the University of Oregon, had reported the discovery of nanosize diamonds in a layer of sediment found on Santa Rosa Island, off the coast of Santa Barbara, Calif.
The Santa Rosa layer corresponds with the disappearance of the Clovis culture, and with the extinction of many large animals across North America, including mammoths, camels, horses, and the saber tooth cat.
The Santa Rosa layer corresponds with the disappearance of the Clovis culture, and with the extinction of many large animals across North America, including mammoths, camels, horses, and the saber tooth cat.
| Brutal Winters Ahead, says Meteorologist Major La Ninalink |
10 Sep 10 - The Pacific Ocean has been in its warm cycle since the late 1970s, says meteorologist Joe Bastardi. But we're now switching back to the cold phase and a major La Nina.
The Pacific Decadal Oscillation (PDO) is the major driver of global climate, says Bastardi, and the winters ahead are going to be brutal.
Back in 1998 we had a super El Niño, which brought on - by satellite standards - the warmest year on record. Then came the nasty winter of 01-02.
This time will be different, says Bastardi. The wild card is that we were at a peak of solar activity at that time, whereas now solar activity is "feeble at best."
"Yeah, sunspots are more than they than they were last year," says Bastardi. "But the overall number of sunspots is down. And if we were measuring it the way we were in the 1800s, it wouldn't be near as high as it is now. Now we have this revisionist way of doing things."
Major La Nina
Now we’re headed into a major La Nina that’s going to last for the next couple of years. When we come out of that, there’s really good reason to believe the winter of 2012-13, and perhaps beyond, is going to be quite cold.
Now we’re headed into a major La Nina that’s going to last for the next couple of years. When we come out of that, there’s really good reason to believe the winter of 2012-13, and perhaps beyond, is going to be quite cold.
Then there are the wild cards such as Arctic volcanoes, says Joe, and the fact that the current La Nina has come on faster and harder than anything he can remember.
By Gordon Dufflink
For years, America’s military has been divided, competent military professionals and patriots on one side and Christian Zionists, loyal to Israel and addicted to a propaganda “dreamworld” on the other.Americans sat, on 9/11, with their military “asleep at the switch,” their president in a daze and Secretary of Defense Rumsfeld, perhaps out of confusion, we may never know, talking about airliners being shot down and the Pentagon being attacked by missiles. Yes, he said these things, things he couldn’t “unsay” but things the press showed once and quickly buried. Something terribly wrong happened, something years in planning, but not planned in a cave in Afghanistan. Everywhere investigators look, one thing pops up, Israel. The moment that door is opened, it is slammed shut, often with threats, often with more than threats.
We may never know the full extent of the brutality used against those who have spoken up. We know that Arab leaders can be assassinated anywhere, any time. America will remain silent and the news will always support Israel. Israel owns the news.
What about the “suicided” British scientist Dr. David Kelly, the man responsible for moving the Israeli nukes out of South Africa? Reliable sources tell us he was ready to come forward with the facts about a massive political scandal, a cover-up of lost nuclear weapons, blackmail and bribery.
Do we really believe that there are so many unlucky United States senators? Crashes of small aircraft has done more to control the US Senate than any election, control used to set the stage for a generation of wars. With AIPAC capable of buying any election, capable, willing and doing it, not an American organization at all but a lobby for a foreign government, one that likes America “not so much” as we are led to believe, is representative government in the United States dead? When someone swears an oath to protect and defend the Constitution of the United States, is it meaningless when the government itself is no longer “American?”
Control of America, or, more appropriately, control of America’s vast military, tired and worn as it is, represents the key to ruling the world. Fooling the people, buying the government and duping America’s military through infiltrating every level of critical decision making and communications is a task, not only attempted but one long since accomplished. Problem is, even with, not only control of the press, but powerful news organizations directly under foreign control like Fox News, word is getting out.
The American people are afraid, they see disaster coming. Everyone is waiting to see what city is chosen to be sacrificed. Will it be Phoenix or Sacramento or perhaps Atlanta? This is the real fear, the “not so secret” fear in the heart of every American.
When and if it happens, Americans are not so willing to believe a few goatherds in a cave 8,000 miles away planned it, not anymore.
Why do you think Senator Lieberman has demanded a “kill switch” on the internet? Why do you think “censorship czar” Cass Sunstein has asked to have accusations of Israeli complicity in 9/11 made a criminal act and openly advocated infiltration of groups pushing for an honest investigation. Who is the real “conspiracy theorist” now?
With thousands of of military and intelligence officials, retirees openly, others hiding their rage, aware of the decades of Israeli spying and the 9/11 cover-up, this divide has never been so strong. What we don’t know is how many serving today have the personal courage to speak out openly. Now the threat is nuclear weapons, not just a “shoebox dirty bomb” but full sized nukes, the weapons we have been hunting for years, claiming Saddam was prepared to use them “at 45 minutes notice,” the same nukes “sent to Syria by ambulance.” They could be anywhere and anyone could be ready to use one. There is only one possible culprit capable of doing this, however, only one country with something to gain and the willingness to act.
“We have hundreds of nuclear warheads and missiles that can reach different targets in the heart of the European continent, including beyond the borders of Rome, the Italian capital . . . our armed forces, however, are not the thirtieth strongest in the world, but rather the second or third. We have the capability to take the world down with us.” (Israeli military historian, Martin van Creveld)
Today, America may be facing the nuclear holocaust Creveld describes and there is no reason to trust that our military, intelligence and law enforcement, the dozens of agencies, bureaus and commands tasked with defending America are willing to do so if the attack comes from Israel. In fact, some leaders, even a former head of the Department of Homeland Security, could be on a list of those that might be one of the America’s greatest terrorist threats. How can perceptions differ so much? If perceptions are based on information and that information is pure propaganda, consistent, continual and skillfully presented, not only in news format but reinforced in movies, television series and anyone publicly questioning the “message “is attacked and destroyed, and they are, perceptions can be assumed to be false.
Thus, the general basis for the public’s ideas about who Israel is, what Zionism advocates and what Islam is really about will be unreliable. When you add control of universities, all academic publishing and even total disruption of free speech, the most extreme ideas can be accepted as fact. They have been.
A substantial evidentiary trail exists that places Israel’s possible involvement in 9/11 on the table, with dozens of suspects questioned and more and more of the “facts” about 9/11 now proving, as with the Kennedy assassinations, to be lies.
Real theories, not “conspiracy,” tell us that 9/11 was planned to get America to attack Iraq, part of Israel’s long term strategy for the region, leaving them, not only the only nuclear power, but an armed aggressor afloat in a sea of broken nations occupied by American troops, troops who take orders from politicians who take orders from Israel. However, after the massive Bush administration blunders in Iraq and Afghanistan and the virtual destruction of a military incapable of sustaining a decade long war, the planned Israeli attack using American troops, again, isn’t moving forward as we all know it was planned to.
This time, after America was so badly burned, pushed by the Bush security team, almost all Israeli citizens, many of them still around, running America for Obama, into two insane “Vietnams” it will take more than 3000 murders. With the “duping of America” over 9/11 coming unraveled, something horrendous is in the planning. There is an obvious next step and it has to be nuclear. Anything less would bring an outcry against Israel immediately. Only the “unthinkable” combined with a strong public relations campaign and a cover story with a “do it yourself” terrorist group, like so many of the “just add water” terrorist organizations the Mossad has organized for just such an occasion, will sell the lie, this and the press, not just in America but the other real voice of Israel, the BBC.
The stories about the mobile labs, the “yellow cake” uranium were lies, pap fed to a willing and complicit press. However, the threats are real but how does America protect herself when those tasked with that duty turn a blind eye to the biggest threat. In 1967, Israel was allowed to kill or wound 201 of 296 Americans on the USS Liberty. Surviving crewmen are still threatened by Israeli security for speaking up, as Philip Tourney and his wife will gladly tell you. Captain McGonagle, who won the Medal of Honor working to save his crew from hours of brutal attacks, cried out for justice to his dying day. The American military stood silent as it did on 9/11, as it did on that day in 1967 and as it may have done many times since.
Those among America’s military in 1967, those willing to send the planes from the carriers America and Saratoga to bomb Egypt on behalf of Israel received the thanks of a grateful nation. Too bad that nation was not the United States of America. Only when Israel informed Washington that it had failed to both sink the USS Liberty and effect a takeover of the ship, killing the entire crew, did Admiral McCain order planes headed toward Egypt to return. It had been previously believed these planes were meant to help the USS Liberty.
We have since been reliably informed by sources within the Navy that the planes were armed for ground attack. Thus, as early as 1967, America was willing to see its own troops butchered “for the good of Greater Israel.” Proof of this is incontrovertible and witnesses on both the Liberty and Saratoga have come forward.
We will never know for sure, what secrets are stolen, what weapons given, what enemies aided, what American interests betrayed. With dozens of organizations demanding 9/11 be investigated and the lowest estimate of those who no longer believe the cover story at 30 percent, not a single active duty military officer, not one member of congress nor a single member of the mainstream press has said a word about it. How can thousands of prominent Americans demand that their country begin defending itself and it be covered up? Who has that power?
America has lost at least six nuclear weapons since 1990, maybe more, not Russia or some “breakaway republic,” once part of the Soviet Union. Three were American hydrogen bombs off Somalia, no longer usable but with enough plutonium in them to build many fission weapons. Three more were part of 9 produced by Israel in South Africa back in the 80s, all supposedly sent to America for dismantling. Three of the containers were filled with concrete blocks. They had been consigned to “friends of Israel” for shipment and were stolen from an unguarded facility in Oman after having been abandoned for months. This would be a wild claim if we hadn’t interviewed those involved in the project and been made privy to a well documented and detailed history of the operation.
These “unattributable” nukes have only one purpose, to be used in a terrorist attack on the United States, a “false flag” attack, to drive America to attack Iran and Pakistan.
How many loyal Americans, FBI, Homeland Security and other agencies are searching the nation, warehouses, ports, looking for the blue 20 foot shipping containers? How many “dual citizens” are tasked with some other purpose? Are our “protectors” really “ours” or do they work for the same pack that bought our congress? Will we find out when a mushroom cloud appears over one of our cities?
Today, America is facing the biggest threat since World War 2. Nothing will be in the news, nothing will ever be in the news, not the truth anyway. When it happens, the news will be ready, like on 9/11 when it was called on to talk Arabs and box cutters, a childish conspiracy theory millions still believe. It was ready to talk weapons of mass destruction and when that turned out to be a lie, it was ready to sit silent for its complicity in war crimes. “War crimes” seems like a harsh term but the definition fits. Invading Iraq on, not a whim, but a series of lies orchestrated by a criminal conspiracy is a war crime. Less obvious to many, the takeover of Afghanistan as a drug production facility or a base for destabilizing Pakistan or an operation center for gas pipelines, whichever reason you choose, was justified by lies as serious as those used to justify Iraq.
For those who follow such things, real leaks are proving two things:
- Osama bin Laden never stopped working for the Central Intelligence Agency and their “regional affiliates.”
- Bin Laden was murdered to silence him after 9/11 just as Benzir Bhutto was murdered to silence her.
Real news never reaches America, news that shows terrorism, corporate banditry and the biggest drug cartel in history, tied to American allies, some Muslim but one worse than all combined, Israel. Even today, the mythology of “threatened” Israel and the rockets raining down on their cities, all imagination, is still believed by many in our military. When 9/11 came, be it radio controlled planes, missiles, controlled demolition, our military was on “stand down,” ordered to let the attacks move forward and then roll across the Middle East, an Army hijacked by Israel to help them start their long planned world conquest. Today, America basks in defeat and humiliation and Israel laughs.
We have continual debates about religion in the military. Should Christian sects be able to force troops to prayer? Is America a Christian nation, is this what the founding fathers meant? What if, lets say, these sects were not loyal to the United States but rather constituted a national threat? Is an officer belonging to a Christian Zionist church likely to pass secrets on to Israel? Will they obey orders from the Mossad above their own commanders? Will an Christian Zionist with nuclear access follow his religious calling and cause a nuclear war to bring about Armageddon?
What if their power in the military was that great, part of a systematic infiltration of the military through an extremist take-over of the chaplain’s services and eventually admissions and curriculum of the service academies themselves? What else could explain the total silence we have seen when torture, kidnapping, illegal invasions and “stand downs” to allow terrorist attacks are the norm. How many officers have violated the Geneva Convention, their oaths and the Uniform Code of Military Justice because they felt obliged to a “higher power” to exhibit extreme cruelty, cleansing the world of “infidels?”
Those in the military that feel, as Christians, they are tied to Israel, have lost their minds. Islam and Judaism are much closer than Christianity and Judaism. With the advent of the trinity, both Jews and Muslims see Christians as, not only polytheistic, worshiping 3 gods, not one, but idolaters as well. To both Jews and Muslims, these issues alone are enough to make Christianity an enemy. Islam, a religion totally based on Judaism, an Abrahamic faith, built on the foundation of the books of Moses, sees itself as a reform movement stressing moral values as outlined in the Koran and the teachings of the prophet, Mohammad (peace be on him).
To a Christian with a real education, the struggle between the Jews and Muslims is a “family matter.” Jews are the beloved children of Islam who have yet to accept the reforms that defined the true religion. We must remember, without Judaism and g-d’s covenant with Israel, there would be no Islam. Christianity is seen as a Hellenistic bastardization of biblical teachings watered down to sell to the pagan Roman empire. You won’t hear it, not publicly, but it is exactly what is taught to every student, Jew, Muslim — this is their belief.
Muslims have “jihad” and Jews were chosen by g-d to rule the world. Ninety percent of the most serious accusations each makes of the other are, actually, part of the religion of both, only Jews are much better at public relations. After all, they own 90 percent of the world’s media, print, broadcast, even much of the Internet. How do we trust military leaders who don’t know that “goyim” means “cattle?” If you are “cattle” and you believe those who see you as such are your best friends, you are not dealing with reality. Perhaps we should teach The Scorpion and the Toad at West Point. This should be the start of the first day’s lecture on America’s Strategic Security in the 21st Century:
The scorpion, in the course of a long journey, encounters a river. The scorpion cannot swim and so he is momentarily stymied until he spies the toad, on the opposite river bank. “Toad!” the scorpion calls out, “will you please let me ride on your back to the other side of the river because, you see, I cannot swim.” “No way,” replied the toad, “if I let you ride on my back you will sting me!” To which the scorpion replied, “But if I am riding on your back and I sting you then we will both die because I cannot swim.” After thinking on it for a moment or two the toad agrees, swims over to the opposite bank of the river where the scorpion jumps onto his back and he turns to swim to the other side. When the toad, with the scorpion riding on his back, gets to the middle of the river, the scorpion stings him. “Scorpion!” Exclaimed the toad, “Why did you sting me? Now we both die.”
“Because it is in my nature.” Was the scorpion’s response.
Should we be sick of watching our troops walk through poppy fields, knowing the heroin being produced is destroying the United States, filling our prisons but, at the same time, filling the pockets of, well who? Who is getting a cut of the $65 billion dollars a year earned from the partnership in Afghanistan? Israel is the money end, the CIA does transportation, the Afghan government runs production, but who does distribution? Do the planes really land on military bases? We have already found bales of cash leaving Afghanistan heading for Dubai.
This is only a small part of the money involved. It is this money, combined with the billions we give Israel, the billions they take out of the American economy through control of the Federal Reserve System (a quasi-governmental scheme of banks with Rothschild lineage that control America) that makes it impossible to get honest news, elect honest politicians and even trust our own military.
In fact, a large majority of Americans openly admit, on every opinion poll, that they don’t trust our congress, our president or any American institution. Nobody asks them why. Would they know? Is it because a foreign country controls our banks, our news, our congress, our military, our foreign policy? Is it because the only reason politics exist in America is so the greedy can line up at the trough, not caring who is pouring the slop, as long as they get theirs first?
No American has a clue where President Obama came from. Many believe he is foreign born, many more think he is Muslim and some believe he is a space alien. In 250 years, documents will be declassified that will either prove or disprove that former President Bush belonged in prison, not the White House, guilty of not AWOL (absent without leave) but desertion during wartime. There is no reasonable doubt of his guilt, only that he used his power to prevent arrest and prosecution. After 9/11, no more questions were asked, and no more witnesses had to receive new homes, fat government jobs or have mysterious heart attacks.
For the Bush years, it was made clear that a military career had to be built on loyalty to Israel, even though their nuclear arsenal and their ethnic cleansing of Palestine are the root of every conflict confronting America today. There is no military alliance with Israel. America has no potential enemies. In fact, every nation in the region is either controlled by the United States, occupied or frightened to death. Iran trying to stand against America is the equivalent of Denmark standing against Hitler’s blitzkrieg.
The view of the state of affairs taught our military is childishly stupid. How many of our military leaders are childishly stupid also?
China Buys Euros as Fear of World Depression Growslink
TARPLEY.net
The US Treasury has just announced that China’s official holdings of U.S. Treasury securities declined by about $30 billion between April and May of this year, from about $900 billion to some $868 billion. According to the US authorities, this means that Chinese holdings of US government paper are now at the lowest level in the past year. A 2% to 3% decline in a month does not qualify as massive dumping, but simply means that China is in the process of diversification. It is also very likely that China has more U.S. Treasury bonds than this official count would indicate, quite possibly through proxy purchases via Hong Kong and other places.With the sales of existing homes in the United States falling by 27% this morning, together with disastrous statistics regarding unemployment and foreclosures, it ought to be obvious that the US economy is in depression. Even experts interviewed on CNBC are beginning to wake up to this obvious fact.
World Bond Bubble
On August 24, the Treasury’s two-year note reached its highest price in recorded history, meaning that the yield was at a record low. The entire world is piling into short-term U.S. Treasury paper, and many buyers cannot get enough. This makes a mockery out of the right wing reactionary refrain that the US equals Greece and soon will be unable to borrow. If, according to the crackpot Austrian theory, markets know things that individual humans cannot know, then surely the market is signaling a great desire for T
Treasury bills and Treasury notes at the short end. The main reason for this demand is of course fear and panic – coming from the growing awareness that the world is indeed experiencing the second wave of a world economic depression of colossal proportions.
Treasury bills and Treasury notes at the short end. The main reason for this demand is of course fear and panic – coming from the growing awareness that the world is indeed experiencing the second wave of a world economic depression of colossal proportions.
There is now a large-scale international bond bubble involving, among others, US treasuries and German Bunds. Since the flash crash of May 6, many investors have fled the stock markets entirely. It is still too soon to sound the alarm on deflation ahead, but deflation has now appeared over the horizon as a concrete possibility – partly because so many major financial players are now convinced that deflation is the wave of the future. If this were to come about, it would mean a depression looking much more like 1929-1933 than the relatively more mild situation we have experienced over the last two years. The depression may be taking a turn toward something far more excruciating for the masses of the population. One by-product of that would be vastly decreased popular gullibility for the anti-government recipes of the libertarian Austrian school, which are tailored for those who have money, and which have very little appeal to people who are unemployed, homeless, and starving.
Also on August 24, the Japanese yen hit a 15-year high compared to the dollar, and a nine-year high compared to the euro. This kind of currency championship is a Pyrrhic victory which nobody wants, since it means the Japanese exports are in the process of being strangled. This is true currency chaos and world depression at the same time, pointing once again towards the urgent need to restore the fixed rate system of Bretton Woods, which was destroyed 39 years ago this month by Nixon and Kissinger, urged on by Milton Friedman and other snake oil economists.
For the past year, the main thrust of the London and New York financial centers has been the effort to export the Depression into Europe by means of a speculative attack on the government bonds of Greece, Spain, Portugal, and some other countries, all designed to provoke a panicked flight out of the euro, which would in turn allow the Anglo-Americans to loot and asset strip the accumulated wealth of the old continent. This was not a market event, but it orchestrated strategic attack, inspired by such figures as Soros, Einhorn, and Paulson. During July and the first half of August, it became apparent that this Blitzkrieg as originally planned had failed to reach its objectives. But the Anglo-Americans, one-trick ponies as always, maybe persisting in the assault.
China Blocks US-UK Attack On Euro
The Anglo-American hedge fund attack, as we have documented here, employed credit default swaps as the primary weapon against Greek, Portuguese, and Spanish government bonds. The failure of London and New York to induce a panic flight out of the euro during the May-June timeframe was partly results of the German self-defense measures, involving bans on naked credit default swaps and bans on naked shorting of German equities. In addition to this, Chinese support for the euro has played a decisive role.
There is every indication that the Chinese made a decision not to allow the destruction of the euro during the late spring and early summer. That decision was technical, commercial, and political at the same time. The technical part was the China sought to re-balance the basket of currencies it uses to maintain the international stability of the renminbi. As the euro looms larger in Chinese trade, purchases of euros and Eurobonds are in order. It is also worth pointing out that the Chinese have not delivered on their promise to radically raise the international value of the renminbi, as hysterically demanded by Tiny Tim Geithner and others.
The commercial and political sides of Chinese support for the euro were reflected in the June visit of the Chinese vice prime minister to Greece, notably to the port of Piraeus. This Chinese envoy signed more than a dozen important economic cooperation deals, including shipping and shipbuilding, telecom, and container ports. The deputy Greek finance minister, Theodoros Pangalos, was quoted as saying: “The Chinese want a gateway into Europe. They are not like these Wall Street [blankety-blanks], pushing financial investments on paper. The Chinese deal in real things, in merchandise. And they will help the real economy in Greece.”1 The emphasis on the production of tangible physical commodities by the Chinese, in contrast to Wall Street’s reliance on a mass of toxic and kited derivatives, points to the real basis of Chinese economic ascendancy. If the Chinese are wise, they will not go overboard with short-term greed, but rather be ready for generous concessions to the Greek labor movement, so as to get the unions on their side. In any case, these euro-denominated Greek purchases are one obvious reason why Beijing is holding fewer greenbacks and more euros.
Will Hungary, Ireland, or Budget Austerity Sink The Euro?
The Anglo Americans are still beside themselves with rage and consternation over the fact that their original attack on the euro has not worked. But since about the middle of August, the euro has fallen from over $1.30 to about $1.26 or thereabouts. Part of this is due to the decline of the New York Stock market, given the long-standing dollar-Dow trade-off. Another negative factor for the euro is doubtless the cruel and stupid deflationary policies introduced by many EU governments in a craven attempt to ward off further speculative attacks. In a depression, government spending is the main thing that supports the entire economy, so cutting the government budget is a recipe for economic disaster, as some EU countries are now being reminded. Another factor is simply the month of August, when Catholic Europe, including France, Italy, Spain, and Bavaria, tends to shut down.
Where Will The Next Panic Break Out?
The world is now in a time of mixed signals and cross-currents. The forces of depression, in the form of $1.5 quadrillion of toxic and kited derivatives, are most emphatically still lurking, and since they have not been shredded, canceled, deleted, outlawed or abrogated, they will soon find a way to explode once again. Serious financial observers are now waiting to see where the next currency or banking panic will come. Over the last day or two, there have been reports of heavy selling of the Hungarian forint, which is inside the EU but not part of Euroland. Late on August 24, Standard & Poor’s announced a major downgrade of Irish debt, switching to a negative outlook. If the panic comes in Hungary or Ireland, then the euro could indeed go down. CNBC traders, in response to the question of how to make money off the crisis of the Hungarian currency, immediately replied that the way to do that was to short the stocks of Austrian banks, who hold much Hungarian debt. From here, the crisis would move on to Germany, and soon the entire continent would be back in the soup. The British pound sterling also has massive vulnerabilities to being the next monetary unit to crash.
But the most likely victim remains Wall Street itself. A glance at the stock chart of Bank of America over the past three months shows what any technical analyst would regard as a very ugly picture. There are rumblings that Citibank may be heading towards liquidity trouble in September and October. For those who like to read the tea leaves, CNBC’s Jim Cramer today responded to a question about Citigroup by emphatically declaiming “Stick with Citi,” and “Stick with Pandit.” Citigroup, he affirmed, remained his “favorite speculation.” For contrarians who have learned something over the past two years, this may already be enough to head for the hills. In any case, if the banking panic breaks out in New York, then the dollar may turn out to be the victim.
Bernanke and QE2
Today also brought the publication of the August 10 minutes of the Federal Reserve’s Open Market Committee. These minutes reveal a serious split in the management committee of the US financier oligarchy. Bernanke and his majority are afraid of deflation, and want a new round of quantitative easing – already dubbed QE2 by the Street. But there is also a significant Austro-monetarist reactionary minority who regard inflation as the greater evil, and to whom a deflationary crash would not be unwelcome, as libertarian rantings over many decades have made plain. These tensions may well be on display at the Federal Reserve’s annual conference at Jackson Hole, Wyoming at the end of this week.
Another CNBC analyst has ventured to predict a ragged decline of the Dow to about 5,000 over the months ahead. If that begins to happen, then the danger of deflation will be enhanced, and in such a scenario the dollar would actually tend to increase in value compared to other currencies. On the other hand, Helicopter Ben Bernanke’s trademark is his strategy for flooding the system with bailouts and other liquidity if deflation looms. Bernanke is the captain of that ship of fools known as the QE2. The one certainty is that there is no recovery, and that the second wave of a world economic depression dominates the world.
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