The DOW's Gymnastics and the NWO of utter Chaos

21 February 2008, Updated 21 & 28 February 2009

I originally posted this article one year ago, on February 21, 2008. I am reposting this piece as the theme remains timely. The Dow crash in gold terms will complete its first decade in August of this year. What then? In my view, the second decade of the "real Dow crash" will then begin. Read on for more information. Or, if you recall reading this last year, my updated analysis is at the end of this article. The text below was composed on February 21, 2008:

There has always been speculation as to whether the venerable Dow-Jones Industrial Average will crash in response to one economic event or another. The crisis of the day tends to spark renewed interest in this topic, including various analogies to the great crash of 1929. Of course, today's crisis is the subprime meltdown and the spurious lending and securitization practices that underlie it. Will the present financial and real estate bubble cause the Dow to crash again?

Today's post is intended to keep questions such as this in perspective.

When you measure the Dow in terms of real money (gold), it in fact reached its peak in August 1999, and has declined steadily since that time. In late August 1999, one unit of the Dow Industrials would have cost you 44.84 ounces of gold. That of course would not have been a good buy if you were then a holder of gold (though Gordon Brown, then Chancellor of the Exchequer for Great Britain, was selling the last of the mighty empire's great store of gold at bargain basement prices at that time; in fact, Mr. Brown sold 60% of Britain's gold at a lowly $275 per ounce between 1999-2002, one of the worst acts of market timing by a government official in recorded history - and government officials are rarely noted for their economic acumen - Ronald Reagan and Margaret Thatcher partially excepted!).

If you had held onto your gold in 1999, and waited until today to buy the Dow, you could have had it more cheaply. At today's prices, roughly 13 ounces of gold will now buy you a unit of the Dow. That is, you get a single Dow unit for 32 fewer ounces of gold, which remains a timeless currency with relatively stable purchasing power. Let's round that off, and call it a 70% discount.

Or, alternatively, let's just say that the crash of the Dow is now in its 9th year, and that it has so far fallen 70% while facing into the headwinds of the mega-inflationary 21st century.

Is the Dow done falling, now that the Dow-to-gold ratio stands at 1:13 vs. almost 1:45 only 8-1/2 short years ago?

Not according to those who engage in long-term analysis.

In fact, the Dow has tended to bottom against the price of gold at roughly a one-to-one ratio every 40-50 years. As Eric Hommelberg's 2005 chart of the Dow-to-Gold ratio shows, you could last have bought a unit of the Dow for the cost of about one ounce of gold in 1980 (when an ounce of gold at $887.50 per ounce was almost as valuable in (nominal) dollar terms as it is today (gold presently stands at about $950 per ounce). Mr. Hommelberg was conservative in 2005, speculating that the Dow might fall to the value of as many as 5 ounces of gold. Three years later, Mr. Hommelberg's projection now appears quite modest.

What are the implications?

If you are more patient (and prescient) than Gordon Brown, and hold onto your gold a bit longer, perhaps another 10-20 years, the chances are that you will be able to buy one unit of the mighty Dow-Jones Industrial Average for a single ounce of gold - possibly less, approximately a 98% discount to the deal that Gordon Brown got for the British government, beginning at the Dow's gold peak in 1999.

Is the Dow, therefore, going to crash again?

I hope you can see now that this is the wrong question.

It already has.

The Dow has so far fallen 70% against the price of gold in the 8-1/2 years since the Dow's August 1999 peak in gold terms, and it is presently just in its next leg down, as today's charts make abundantly clear. (Click here for a current analysis by Captain Hook.)

Chances are, the Dow has another 28% to go before it's done - when a single unit of the Dow-Jones Industrial Average will be of the same value as a single ounce of gold. At that time, the Dow will have collapsed 98% against the price of gold.

I guess you could call that a Dow crash.

21 & 23 February 2009:

Since posting this article one year ago, at which time 13 ounces of gold were required to buy the Dow-Jones Industrial Average, the trends I identified have if anything accelerated.

In a short year, you now get almost "twice the Dow" for your amount of gold, as the Dow has fallen almost another 50% in gold terms over the past 12 months. 7 ounces of gold will presently buy you the Dow-Jones Industrial Average, as compared to 44.84 ounces of gold in August 1999, or 13 ounces of gold in February 2008. That is, the Dow:Gold ratio has now slipped by 84%.

Want my advice?

The Dow is still no bargain. Don't cash in that 7 ounces of gold for the Dow, but hold onto your gold - for further long-term appreciation. This trend has years to run, as the "real Dow crash" completes its first decade. As of August this year, the Dow crash against gold will enter its second decade, and the crash - or collapse, if you prefer - will simply continue.

Gold has much further to rise, and the Dow much further to fall. A unit of the Dow for 7 ounces of gold remains no more a bargain than when 45 - or 13 - ounces of gold were required to purchase the Dow in 1999 or 2008!

Let me emphasize that I am not predicting short-term trends here. The Dow might rise for several months, and gold could fall for several months. I believe short-term market prediction is essentially impossible. But why take the chance? The trend is clear. If you did not exit mainstream equities in 1999, or even in 2008, you can still get out now.

Gold - though volatile in price on a short-term basis - remains a safe and comfortable companion in uncertain economic times. And in our present case - where is the uncertainty? We know that the foundations of the economy are at their most unstable in almost a century - and, as a consequence of leverage and other forms of financial gymnastics - perhaps at their most unstable in all of human history. Gold is the obvious choice in such circumstances.

(See also these related posts, comparing the Dow to the AMEX Gold Bugs (HUI) Index, and exploring the issue of "financial disasters.")

Another Stanford Group executive died without much notice last month

February 26, 2009 -- Another Stanford Group executive died without much notice last month

On February 25, 2009, WMR reported on the death in January of this year of Charlesworth Shelley Hewlett, the accountant who audited the books of Stanford International Bank from a small office between fish and chips shops in north London. Hewlett was 73 and his lawyers said only that he died "peacefully." WMR has learned from a state government source in the United States that Hewlett's death was "unusual," however, little more is known about the circumstances of Hewlett's death.

WMR has also learned that the same month that Hewlett died, retired Brigadier General David E. "Bull" Baker died at the age of 62 of congestive heart failure at Walter Reed Army Hospital in Washington, DC. Baker retired from the Air Force in 1997. From 1994 to 1997, Baker served as vice director of operational plans and interoperability on the Joint Chiefs of Staff. Baker was also the managing director of Schwab Washington Research Group, a division of Schwab Capital Markets and Trading. He advised the firm on global communications and encryption. Baker continued to work for Schwab after 9/11, and in an interview with Business Week published on September 24, 2001, Baker stressed the need to "bolster intelligence."

Former Secretary of State George Shultz has been a member of Schwab's board of directors.

Baker's portfolio with the Schwab group was Information Technology, Information Operations, and National Security Policy. His colleagues included: former Republican counsel of House Commerce Committee Stephen Blumenthal (Financial Services), Edward Garlich (Energy, Middle East Affairs), Paul Glenchur (Broadcast Cable, Telecommunications), Mark McMinimy (Agribusiness, Food, Tobacco), Joanne Thornton and Stephanie Willis (International Trade), Eric Weissenstein and Jill White (Health Care Services, Medical Devices, Pharmaceuticals) and Greg Valliere (Politics, Budget, Labor, Economic Policy, Federal and Monetary Policy and Taxes).

Apparently, Stanford Financial acquired the Washington Research Group from Schwab in 2005.

Baker, a former prisoner of war of the Vietcong in Cambodia during the Vietnam War, was a Senior Vice President for what became known as Stanford Washington Research Group in Washington, DC. Baker's role was to collect "political intelligence" in Washington, DC for the global Stanford Group run by "Sir" R. Allen Stanford, now under investigation for fraud. Baker died on January 29, his death was not reported by the Washington Post until February 15. The Washington Times reported Baker's death on January 31 in an obituary written by the paper's national security and intelligence correspondent Bill Gertz. Baker's twin brother is retired Rear Admiral Stephen Baker.

In an October 13, 2005, New York Times article, Jaret Seiberg, an analyst with the Stanford Washington Research Group, is quoted as saying that a decision by U.S. Judge Sidney Stein blocking then-New York Attorney General Eliot Spitzer's investigation of discriminatory residential lending practices by national banks was a "big legal victory for Citigroup, Wells Fargo, HSBC, and J. P. Morgan Chase."

Stanford Washington Research Group billed itself as "the foremost policy research organization based in the nation's capital." It advertised its analysts as having experience in the "White House, Congress, Federal Reserve, Food and Drug Administration, United Nations, Federal Communications Commission, Department of Defense, U.S. Court of Appeals, National Cancer Institute, Deloitte & Touche and various news organizations."

In May 2005, the firm sponsored a policy conference at the J.W. Marriott Hotel in Washington that involved "portfolio managers, analysts, money managers, directors of research, economists and high-net worth individuals." Speaking at the conference were Representatives Peter King (R-NY) and Charles Pickering (R-MS), Washington Postcolumnist George Will, FCC Commissioner Jonathan Adelstein, Federal Energy Regulatory Commission chairman Pat Wood III, Deputy Administrator for Centers for Medicare & Medicaid Services Leslie Norwalk, and, ironically, Federal Deposit Insurance Corporation (FDIC) Director of Supervision and Consumer Protection Michael J. Zamorski, Assistant Attorney General for Antitrust R. Hewitt Pate, and Deputy Assistant Attorney General for Antitrust J. Bruce McDonald.

In 2005, Representative Brian Baird (D-WA) sought to crackdown on "political intelligence" gathering by political intelligence agents. Baird wanted the House Ethics Committee to investigate House members and staffers who provided nonpublic information to profit-making firms that influenced the financial markets. In a December 26, 2005, Business Week article, Prudential, Lehman Brothers, and Stanford Washington Research Group, "owned by Stanford Financial Group of Houston," were named as the top three of a half-dozen Washington political intelligence gathering firms.

Foggo resigned amid the criminal probe of his activities on May 8, 2006. On May 5, 2006, just three days prior, CIA director Porter Goss resigned. On the same day that Goss resigned, President George W. Bush signed an order exempting publicly traded companies from accounting and disclosure procedures required under the 1934 Securities Exchange Act for national intelligence reasons. Then-Director of National Intelligence John Negroponte was delegated the authority to exempt companies from compliance with the SEC law.

It just so happens that in the early 1980s, Foggo worked for the CIA in Tegucigalpa, Honduras while Negroponte was U.S. ambassador to the country and charged with supporting anti-leftist guerrillas in Nicaragua and El Salvador. Foggo's exploits with local prostitutes and in the casino in the Hotel Maya in "Tegu City" were well known to the CIA's clandestine services officers.

The effect of Bush's order now appears to be at the very heart of the reasons behind the government's decision to allow former NASDAQ chairman and $50 billion Ponzi scammer Bernard Madoff and Stanford Group's Allen Stanford to remain out of prison.

Stanford's shadowy financial empire

Stanford's shadowy financial empire.


No one will ever know just how Charlesworth Shelley Hewlett, who ran CAS Hewlett & Company out of a small office sandwiched between fish and chips shops on South Bury Road in Enfield in north London, came to be the accountant for Allen Stanford's $50 billion financial empire that included Stanford International Bank (SIB). That is because Mr. Hewlett, known as a quiet gray-haired man to those who had offices in his north London office block, died "peacefully" a few weeks before the Stanford scandal hit the front pages. Hewlett was 73 but no one knows the reason for Hewlett's death.
CAS Hewlett maintained only four other offices, three in the London area, including one in Ilford in Essex, England and another in Antigua, where SIB is headquartered.
There are definite links between the Stanford scam and that involving Bernard Madoff's $50 billion Ponzi scheme. Perhaps the one most striking similarity between the two men is that they used small, virtually unknown accounting firms to handle multi-billion dollar enterprises that are usually audited by the large international accounting firms like Price Waterhouse Coopers and Ernst and Young. Madoff used Friehling & Horowitz, a small three-person firm in New City, New York, while Stanford used Hewlett with four offices of one to two rooms in the London area with no signs of regular employees. WMR has been informed by a knowledgeable source that Hewlett's rented offices had a desk, a filing cabinet, and a telephone. None of the telephones had answering machines. Neighboring office workers noticed an individual entering and exiting Hewlett's offices about once a week.
We have learned that four planes in Stanford Aviation LLC's eight plane fleet -- which consists of two Hawker 880XPs, a Hawker Siddeley HS-125-600A, a Convair 440 (N800SA -- which the FAA files state has "multiple records"), a Bombardier BD-700-1A10 (N1SA), two Gulfstream Aerospace G-IVs, and a Hawker Siddeley HS-125-600A (N10SA), have been sold within the last six months through two CIA shell companies that are next to impossible for investigators to trace. One of Stanford's G-IVs (N2SA) has, in fact, disappeared from the FAA registry of planes registered in the United States. Stanford Aviation has offices at 5050 Westheimer Road in Houston, Texas; 201 S. Biscayne Boulevard, Miami, Florida; and 100 Jim Davidson Drive, Sugar Land, Texas.
Stanford's Bombardier was sighted at Bird International Airport in Antigua on March 20, 2008 and at Cointrin International Airport in Geneva on July 22, 2004. The Convair 440 was exported to the Dominican Republic and flew for Trans Dominican Airways (TRADO). It was last photographed in 2004 in the "bone yard" at Las Americas International Airport in Santo Domingo behind the Dominicana hangars.
A recent report in the London Observer that one of Stanford's planes detained by Mexican law enforcement because it contained checks linked to the Mexican Gulf Cartel, one of the most violent drug syndicates in the region, may be a "false flag" designed to throw the U.S. Drug Enforcement Administration (DEA) and FBI off the trail of the planes previously sold by the Stanford Group through CIA shell companies. We have learned that these planes may have actually been involved in both drug running and the CIA's extraordinary rendition program of transporting kidnapped Muslims to Guantanamo Bay, Cuba and other locations.
Representative Dennis Kucinich recently stated that the Stanford case has similarities to the Iran-contra scandal of the Reagan administration. There are reports that Stanford has hired Washington's Williams and Connolly lawyer Brendan Sullivan as his attorney. Sullivan represented Iran-contra felon Oliver North during the Iran-contra congressional hearings.
Stanford hails from Mexia, Texas but lived for some time in the Coral Gables, Florida home once owned by George Wackenhut, Sr., the former FBI agent who left the bureau and set of Wackenhut Corporation to engage in investigative operations that FBI director J. Edgar Hoover was legally barred from being involved with.
Kucinich may be correct about who is actually behind Stanford and why. North's Iran-contra network used off-shore contrivances in the Cayman Islands to launder money. Stanford International Bank primarily used Antigua and Barbuda for the same purpose. Up to 30 percent of the investments in SIB were from wealthy right-wing Venezuelans who were trying to protect their money from Hugo Chavez's socialist government in Venezuela. In November 2008, Venezuelan military intelligence agents raided SIB's office in Caracas and seized documents and revealed that four employees of the bank were suspected U.S. intelligence agents.
There is some evidence that the CIA arranged for wealthy Venezuelans to hide their money in SIB's Antigua account in return for a percentage of the certificates of deposit accounts' interest going to a CIA slush fund to secretly fund covert operations directed against left-wing governments in Bolivia, Ecuador, and Venezuela. The wealthy Venezuelans were constrained to report their losses from SIB because they would be immediately charged with tax evasion by the Venezuelan government.
It was recently revealed that in addition to contributing money to Republican and Democratic politicians, Stanford was connected to a $50 million hedge fund operated by Paradigm Global, run by Vice President Joe Biden's son, Hunter Biden, and the Vice President's brother James Biden.
What us becoming clear that Madoff and Stanford are not sitting in jail presently because of who is sitting in the Vice President's mansion in northwest Washington, DC and in certain Senate and House seats in Congress...

-- When Federal agents raided the offices of Stanford Financial Group earlier this month, exposing a massive fraud and successfully preventing its perpetrator, Allen Stanford, from lamming it overseas, it was the culmination of more than an investigation into a despicable "mini-Madoff" Ponzi operation. It was also a neat little public relations moment for the beleaguered Financial Industry Regulatory Authority and their former head Mary Schapiro, who now heads up the equally beleaguered Securities and Exchange Commission. Despite what you may have thought about the way FINRA and the SEC seemed to be clueless to the ways of Bernie Madoff -- and those agencies could have made use of both celebrated whistleblower Harry Markopolos and a timely article from Michael Ocrant at MAR Hedge -- this new regulatory regime was serious about bringing scofflaws to justice, and those who were formerly asleep at the switch were going to get regular wake up calls.

Rolling up Stanford Financial would have been an excellent, and subtle way of noting that times have changed. As usual though, reality isn't that simple. It turns out that another forgotten reporter, in this case David Ivanovich of the Houston Chronicle, had raised some serious alarms about Stanford back in 2000. In an article entitled "Houston Banker Tries to Create Caribbean Empire, Runs into Problems with Feds" (July 16, 2000) Ivanovich chronicles Stanford's wheeler-dealing in the nation of Antigua, painting a picture of Stanford that finds him waist deep in shadiness, even downright creepiness.

Back around the turn of the century, Stanford had managed to run afoul of the State Department, who were, at that time, on a "crusade against [offshore] money laundering":

Stanford, a little-known investment banker and real estate developer in Houston, caught the State Department's attention for his leading role in tightening Antigua's already secretive banking laws.


Washington insisted that the changes could hamper international efforts to halt the flow of drug money. The result was a protracted confrontation between the United States and Antigua that is only now being resolved.

Stanford had deep ties to Antigua and their government, and the way Ivanovich describes it, Stanford's conduct comes across more like a cult-leader than a financier:

Holding dual U.S.-Antiguan citizenship, Stanford owns Antigua's largest newspaper, heads a local commercial bank and enjoys access to Prime Minister Lester Bird.


He is the man to whom the islanders have turned to help finance construction of a hospital, build a shelter for single mothers and start up a carrier when airline service to the region was curtailed.

And honestly? This part alone is mindbending enough:

When a Catholic priest stricken with the stigmata (wounds resembling those Jesus suffered in his crucifixion) needed medical treatment in the United States, Stanford flew him on his private plane.


"That was a major personal event in my life," Stanford said. "It was truly an out-of-this-world experience, a supernatural experience." Indeed, Stanford still carries with him congealed fluids that drained from the priest's foot.

You see, where I come from, people who carry around a jar of congealed priest foot-juice? You keep an eye on them. As it turns out, however, Stanford didn't begin to attract attention until he started injecting himself into the formulation of Antigua's banking laws. Ivanovich fleshes out the timeline:

Antigua's offshore sector became more worrisome as individuals believed to have ties to Russian organized crime moved in.


In October 1997, the Antiguan-based European Union Bank collapsed, with its Russian founders suspected of absconding with $ 10 million in depositors' money. In May 1998, the U.S. Customs Service accused the Caribbean American Bank of Antigua and eight individuals of bilking hundreds of investors out of $ 60 million.


Last fall, the Antiguan government accused Pavlo Lazarenko, the former prime minister of Ukraine, of laundering more than $ 80 million through an institution on the island.


As the island's reputation began to deteriorate, Prime Minister Bird asked Stanford in 1996 to spearhead an effort to revise Antigua's banking laws, clean up the offshore sector and expand the industry.


At Stanford's urging, Bird named Stanford's attorney, Carlos Loumiet, an international law and banking expert, to a special advisory board. The panel included former officials from the Drug Enforcement Administration, the Federal Bureau of Investigation and U.S. Customs.


Two other members of Loumiet's firm, including Pat O'Brien, a former U.S. Customs special agent for South Florida, joined the effort.


Stanford was the "driving force" behind the movement, O'Brien said. Stanford Financial's Bank of Antigua, the company's commercial bank serving the local Antiguan population, loaned the government the money to pay for the project.

At the time, Stanford's bank was "Antigua's largest bank serving offshore customers." For some reason, no one seemed to be bothered by the fact that he was the 'driving force" behind a rewriting of the laws that would govern his business. Maybe that's because initially, there seemed to be little reason for concern. Many "of the changes were to the liking of countries such as the United States and Britain," especially the mandate for greater transparency: "Individuals, for instance, could no longer obscure their connections to offshore accounts by depositing funds in the name of an anonymous corporation."

Soon enough, however, a rather substantial conflict of interest emerged:

As part of the changes, the government created an agency to regulate the offshore sector, the International Financial Sector Authority.

[...]


Stanford said his appointment to the board was "an interim step" to help get the program under way.

So what happened in the interim? Well, the International Financial Sector Authority did a bang-up job, kneecapping all of Stanford's competition:

While the United States and Antigua were wrangling over the legal changes, the country's new regulatory authority began cracking down on the offshore sector.


The Financial Sector Authority was empowered to close institutions that were short of capital, had not been properly audited, or that were engaged in fraud or money laundering.


The authority shuttered dozens of institutions, paring the number of offshore banks operating in Antigua from 57 down to 18.


[...]

Go figure. I'll have you know, however, that Ivanovich had me wanting to bait a hook as soon as I read about that terrifying foot-juice stuff. This forgotten article bears a striking semblance to Ocrant's take on Madoff -- a distant early warning of corruption to come. You'd think that brewing up conflicts of interest, placing yourself in charge of your own regulation, and running afoul of major government agencies would earn you a special red flag with organizations tasked with policing and preserving our financial interests. You'd be wrong!--

The "Oligarch's Neocon Escape Plans" from congressional hearings, indictments and justice....

The "Oligarch's Neocon Escape Plans" from congressional hearings, indictments and justice....

I expect April to be pretty rough ...- perhaps even more so if shock doctrinaires want to get us "in the mood" for an assault on Iran in April...?

Right now I am long crude oil which has been battered. I suspect the slide in oil prices is part of the "economic war" happening now between Putin and the Israeli-Russian mafia. Recall how Putin put Yukos out of business and imprisoned the billionaire owner. I suspect the next move by the Illuminati in light of the "financial crisis" will be to drive up the price of fuel again. Surely, this shall be the demise of the USA as we know it particularly in light of the new trend to raise taxes on the state level, see California...

I suspect the Euro will go to zero once the EU breaks apart blaming each other on the currency problems...

The dollar is strong at the moment because the rest of the world's currencies are so weak. Don't for a minute think the dollar is strong on its own merits. Make sure you have your stops set. As you know, your stops will not work in a huge gap down.

Brzezinski warns of riots in US

Zbigniew Brzezinski, a former national security adviser, has warned that the US could witness riots if economy continues its downward spiral.

"There's going to be growing conflict between the classes and if people are unemployed and really hurting, hell, there could be even riots!" said Brzezinski, President Jimmy Carter's national security adviser, in a recent interview with NBC.

"In 1907, when we had a massive banking crisis, when banks were beginning to collapse, there were going to be riots in the streets," he added.

At least 3.6 million jobs have been wiped out throughout the US since the recession began in December 2007. The jobless rate officially reached a 16-year high of 7.6% (11.6 million people) last month.

Earlier this week, a new Federal Reserve report said that US unemployment could increase to 8.8%, causing the economy to contract for a full calendar year for the first time since 1991, when a contraction of 0.2% was registered.

The Obama White House has put forward an array of measures, including a $787 billion stimulus package, in the hopes of reviving the flagging economy.

Brzezinski, meanwhile, made some recommendations to the young administration.

He proposed the creation of a voluntary national solidarity fund, whose contributors would be those who became wealthy in recent times.

"Where is the moneyed class today? Why aren't they doing something: the people who made billions, millions. I'm sort of thinking of Paulson, of Rubin [former treasury secretaries]. Why don't they get together, and why don't they organize a national solidarity fund in which they call on all of those who made these extraordinary amounts of money to kick some back?" he argued.

"I was worrying about it because we're going to have millions and millions of unemployed, people really facing dire straits. And we're going to be having that for some period of time before things hopefully improve," said Brzezinski.

they are manipulating the markets to create the crises, so there will be riots, so they can crack down on skulls, use those tasers and of course, use those prisoncamps built by Halliburton.

Money is made by war, so you have to have a war all the time. Some times the elitists criminal class has a war on the people, sometimes on the people of color, sometimes on the poor, sometimes on the people of other nations. But sometimes they have a war on the middle class. And now that is what they are doing.

I think they picked Obama, because he was black, and will blame him for their planned failure. The banking crises was started with exposing Madoff's schemes, what perfect timing, when Obama was running for president, and not elected.

The great treasury robbery left the country broke, with the Bush-Israelis Neocons-Cheney-Enron's starting the wars, and stealing all the war profits and the Pentagon trillions.

And then they did the Economic Hitmen-Shock Doctrine game that have done in Argentina and so many other countries, they broke the bank after they stole it empty of future funds, and plan these food crises, just like they planned the oil crises.

Crooks who don't care if millions die, and they HOPE we riot. Then they can employ all those out of work prisoners and white supremacists in Israel and the South and from the Ukraine and Africa that we hired as mercenaries, drug runners and arms dealers to herd innocent Americans into work camps.

It is planned.....The "Oligarch's Escape Plan" from hearings, indictments and justice....

http://www.nsarchive.org

http://www.youtube.com/watch?v=HsUkMN2TIQg&e

http://www.youtube.com/watch?v=XMU7OZKRlXw&e

We have been sent this by one of our volunteers and it is being investigated as we write this email. This is certainly a "Flash-Point" and may require volunteers to assemble to support the Texas Guard.

Currently we are making arrangements and gathering information as it becomes available. The purpose of this notification is to make everyone getting this email to become aware of the situation (which seems to be blocked-out for follow-up responses from the Obama administration by national media sources) and to ask not only for information but the consideration of voluntary support should it become necessary.

If this situation deteriorates into a forced warfare on Texas soil, it should be expected (as an original Confederate State) to be able to gather support from across the country. This in-turn may lead to bigger issues such as "Secession" of various States etc.,(perhaps the reasoning for the media black-out/down-play).

The importance of furthering the information and gathering and sharing Intel on this matter is of a paramount value currently. Please take any steps to spread this information and to gather and share more as we prepare to meet the possible needs of our Liberty supporters throughout Texas.
Respectfully, / LIBERTY GUARD LIBERTY GUARD Staff

****!!!!! State Senator Dan Patrick... "TEXAS NATIONAL GUARD ON ALERT"!!!!!****

Texas State Senator, Dan Patrick, was on FoxNews this morning at 8:45am. He said he had some "breaking news to share". Boy was it!!! The Texas State Legislature had been trying very hard to get the Obama Administration to respond to a critical situation on the Texas Border. The Administration had not gotten back with Texas as of last night. So, the State of Texas told Washington D.C. basically they could go jump, and "we'll take care of Texas!". As of last night... the Texas National Guard has been put on High Alert!!! This is the first time in history! Texas tried, desperately to get Washington's approval... but when they could not get it... they acted on their own. Which I say.... it's about damn time!!! I personally applaud the guts it took to defy the Fed's and act in our best interest! In case you are unaware of what the problems are .... Sen. Dan Patrick spelled it out nicely!

1) 100's of PRO-DRUG CARTEL Mexicans were blocking the entrance to the United States, yesterday and today, banging cars, shouting and holding signs. 10 people were killed Wed. and 12 more yesterday at the border (5 of which were children!!!)
2) They aren't sure ... but they think the Drug Cartel is paying the demonstrators to do what they're doing.
3) This will spill over into the States! Mr. Patrick, and the other State officials,. are convinced that road-side bombs and car bombs will make it across the border and WILL NOT allow that to happen!!
4) Mexico is breaking out in Civil War in the western part of the border and they expect it to spread the entire border with no end in sight.
5) The National Guard will be activated as the scenario worsens and is on Alert now and will remain so until (and IF) Washington does something to end the danger on the border (Yeah... like that's going happen!).

FoxNews has yet to put this on their website which absolutely ticks me off!!!! I will post it IF they get the stones to do what's right!

For now... here's a link that will take you to a story on Feb. 12th that will help explain a lot. CLICK HERE!

Let's pray it doesn't come to this.... but in reality... Texas could be in a Civil War
(actually it would be an international incident) with Mexico very soon if this isn't quelled. Just so you folks know.... the four Militia Groups that are here in Texas will be put on alert this evening. This has gotten REAL, REALLY FAST!

God help us... as we do what is necessary.....

http://www.counterpunch.org/hudson02172009.html

http://www.youtube.com/watch?v=9SbSqe9Me_c&eurl=http://www.waynemadsenreport.com/articles/20090220_2&feature=player_embedded

http://www.youtube.com/watch?v=XMU7OZKRlXw&e

http://www.law.umkc.edu/faculty/projects/ftrials/mcveigh/mcveighaccount.html

Lebanon's central bank chief got it right on sub-prime mortgages and fancy synthetic CDOs etc., but a note of caution to ALL Lebanese

A note of Caution

Lebanon's central bank chief got it right on sub-prime mortgages and fancy synthetic CDOs etc., but a note of caution to ALL Lebanese and to Riad T. Salame....

• Lebanon’s debt problem, in Executive magazine.
• On default debt indicators.
  

Much more needs to be done in terms of regulating and controlling investments of the Lebanese banks as well, since the 5/6 % offered by the Lebanese banks nowadays are unsustainable in today's interest rates environment worldwide... Some Lebanese Banks are also practicing some of MADOFF's tricks and PONZI schemes, regardless what Salame and others have been saying..., which needs to be purged and forbidden immediately... Failing to do that quickly, we might face dire and insurmountable consequences ...Furthermore, Salame cannot wash his hands from the enormous Bank Al-Madina orchestrated debacle...., which he failed to do anything about... in order to avoid it, despite his claim for command, control and the communicated balance sheets of the Lebanese Banks....and tight regulations. On top of that, the astronomical costs associated with the Lebanese treasury bills in the 1990s are not something to be very proud of either, a direct result of the atrocious Siniora/Hariristan policies to bankrupt the nation.

Riad Toufic Salame bucked pressure in 2005 and kept Lebanese banks from investing in mortgage-backed securities. Now the sector is prospering amid the global downturn.

Reporting from Beirut -- Throughout history, men braved the odds to perform great feats. Outmatched generals snatched victory from the jaws of defeat. Titans of industry gambled on bold innovations to reap jackpots. Athletes tested the limits of human endurance in quests for glory.

Riad Toufic Salame, the governor of Lebanon's central bank, is not one of those men.

Instead, the silver-haired banker became a hero by playing it very, very safe. In 2005, he defied pressure from the Lebanese business community and bucked international trends to issue what now looks like a prophetic decree: a blanket order barring any bank in his country from investing in mortgage-backed securities, which contributed to the most dramatic collapse of financial institutions since the Great Depression.

So as major banks in America and Europe were shuttered or partly nationalized and thousands of people in the U.S. financial sector were laid off, Lebanon's banks had one of their best years ever.

Billions in cash continue to pour in to the relative safety of Lebanese savings accounts, with comfy but not extravagant yields of 6%. A nation shunned for years as the quintessential failed state has become a pretty safe bet, or as safe a bet as investors are likely to find in this climate.

"Being able to survive and to do well in this crisis," Salame said, savoring a deep sigh. "I can tell you I was proud of this achievement."

Most outsiders associate Lebanon with one of two extremes: machine-gun-wielding militants in fatigues firing weapons into the air or scantily clad merrymakers downing cocktails until dawn.

But a more sedate and moderate segment of the Lebanese population has also emerged from the political and economic wreckage of the last few decades. They are engineers and dentists, lawyers and bankers. They envision their country as neither hedonistic nirvana nor capital of mayhem, but as a safe harbor for low-key, middle-class ambitions. They have begun to quietly assert themselves.

Salame, who is Lebanon's equivalent of the Federal Reserve chairman, exemplifies such geeks. He toiled for nearly two decades as an investment banker at Merrill Lynch before taking over as central bank governor 15 years ago. He's a man of few extravagances, indulging in pricey Cuban cigars he pulls out of a wooden humidor in his spacious office. Unlike most Lebanese bigwigs, he drives himself to work, albeit in an armored BMW.

The country's bankers adore him, speaking of him in glowing terms. He was once short-listed as a potential candidate for Lebanon's presidency, a post that traditionally goes to members of his Christian Maronite community.

"We are very proud of him," said Nassib Ghobril, head of research at Lebanon's Byblos Bank. "He's a very smart guy, and the regulations of the banking sector here have been kept up to international standards. It's very tightly regulated."

In a country known for windbag politicians prone to soaring oratory, Salame favors mundane technical facts as he describes the effort of growing Lebanon's banking sector from $7 billion in assets in the early 1990s to $91 billion today.

That meant tightening regulations and banking requirements so much that 35 banks were driven out of business. They just couldn't meet Salame's conservative balance-sheet requirements, including a rule that bars banks from lending more than 70% of deposits.

It meant changing transparency rules to do away with Lebanon's reputation as a money-laundering hub.

And it meant resisting temptation for easy money.

"We had criticism and some were saying that Lebanon could have bigger growth in its economy if there was not such regulation for credit," Salame recalled. "We were criticized for putting too much regulation."

When the real estate boom crested this decade and investors began bundling debt into nebulous financial instruments fueled by easy credit, the pressure was on for Salame to let banks take advantage of the high yields.

But Salame steadfastly refused.

He says the mortgage-backed securities worried him from the start. He watched curiously as investment bankers engaged in what he calls "rituals" to please the credit ratings agencies and got back such safe assessments of their products. He didn't get it. Why were these considered safe investments? They were just too complicated. They went against a major tradition in Lebanese and Middle Eastern banking: Know to whom you're fronting cash and who's going to pay you back.

"We could not really sense who would be responsible in the end to collect these loans," he said. "And we do not perceive banking as being a place to speculate on financial instruments that are not really concrete."

He felt vindicated when he received a call from abroad last year after the collapse of Lehman Bros. It was a super-rich Lebanese investor living overseas.

"He was always skeptical about the stability here," Salame recalled. "But he told me, 'I sent all my money to Beirut now to the banks. You were right.' "

US Wars and PNAC's reckless looting of our planet.

US Wars and PNAC's reckless looting of our planet.

The "official communiqués published by the Pentagon, NATO and IDF have progressively liberated themselves from the constraints of truth... since the early 1950s..."

The labyrinthine path between a secure world and global conflagration, meant to impose a chaos of "constantly shifting alliances" of thousands of Tribes with Flags, throughout ASIA and Africa, runs right through Pakistan....

Notwithstanding the presumptuous bravado in the American corridors of power, the power behind the power in USA runs the show like clock-work, ever since the tragic assassination of JFK.

Benazir Bhutto's assassination by the infamous White House Murder INC, and the crisis in Pakistan, are only the beginning....of the street... to international geo-political alliances, of the neo-hegemonic demons of the PNAC killers, in order to redraw the world into a collection of constantly shifting "groupings..." of hundreds of Tribes with Flags...thereby diffusing and eliminating the possibility of the emergence or re-emergence of an "attractively equal" superpower....The obvious target is CHINA...India, all of ASIA, AFRICA etc. will suffer the dramatic consequences of such callous systematic policy of Washington, since the early 1970s, regardless the consecutive "administrations" in USA. By ricochet, in time, Latin America will suffer the same fate, Russia will be unable to garner any meaningful alliance in Asia with IRAN...

Back to the "American self-inflicted Virus..."

The self generated PNAC intrinsic American metastased fatal disease....

The disease is that the American people allow their bamboozled futile
government to impose on them two fundamentally bad assumptions on

how our society should work, assumptions which are neither sustainable,
nor affordable in the long run...., except when the real intrinsic aims are

what I described above...a systematic looting of the world's resources.

These two big "bad" assumptions....sustained by a media frenzy...., the

infamous FDDC....and the notorious disinformation machine for CIA....

which spews daily doctored, semi-factual garbage, Stratfor, which is the

joint of George Friedman, Texas funded and Texas based...in order to

create the conditions for the biggest and fattest "criminal diversion, and

a very noisy diversion" for a specific aim...are:

1) Our national security interests lie as far and wide as the earth
will take us to, and by extension, as far and wide as the space will
take us to. Ergo, we must fight to have troops and forward bases all
over the world and spend any amount of money needed to support that
fight, even if you have to make people starve and homeless across
America.

2) Our economy runs on credits which requires and encourages everyone
to borrow, and borrow, to receive the money you need. Corollary: You
will remain poor if you don't borrow but you can leverage to death in
order to become a billionaire.

But who does this Ponzi scheme of credit-driven economy benefit the
most: the top of the money chain, the bankers, the investment bankers
and financiers. Investment always means figuring a way to get more
money by borrowing more money than you already owe. Financiers are
leverage investors cum scam artists by another name.

And who does the far-flung US national security interest assumption
benefit? The investment bankers and financiers again....and the ultimate

power behind the power in USA and the various stooges.... The latter,
through their direct political connections and campaign contributions
(which is but a fraction of a percent of their outlandish profits from
multi-billion post-destruction..... construction projects in war zones),
are war profiteers. And the investment bankers always make a fat cut
when there are large projects to finance. (They always have money to
lend because the Fed is behind them with the lowest rate on this land.)

But both assumptions are unsustainable and ultimately unaffordable.

Of course, you know who are actually paying for the war expenditure
and the credit-driven economy. The taxpayers, of course. You might
ask how the taxpayers are financing the credit-driven economy. Well,
how much interest you must pay to borrow from the Bank of America or
Wa-Mu? And then how much interest you think the Bank of America is
required to pay for the money it borrows from the Federal Reserve
Banks? Now you know the difference comes from the US Treasury.

And that's why a stimulus first benefits the bankers by the fattest share
before the guys who are hungry and homeless on Main Street get their
crumbs.

Obama is not a socialist but rather a servant to the capitalists who
wish to govern the 300 million plus Americans....and the ones aiming for

the big loot of the 21st century....... when money is made.....tight.

Obama can't help himself but appears to be seduced by the thought of
being a nice guy to everybody, especially the fatcats on Wall Street....

And his stimulus program is nothing but an extension of George Bush's
stimulus program administered by Hank Paulson called the TARP.

And whoever's stimulus remains a net outflow of money, especially the
money which goes to finance infrastructure projects because when
factories are not producing anything valuable but only bombs, tanks,
and missiles, they don't bring money back into the treasury. And the
bailing out of the toxic-mortgages and the companies which carry them
is to put good money into bad, like they all say nowadays. And all
economists agree that the stimulus we've seen are helping to create
and sustain a ``zombie'' economy, whether the speaker is Ben Stein,
Joe Stieglitz, or Paul Krugman. (Some of these economists have been
labeled one way and others the other way, but they all agree on the
effect of the current stimulus program being to keep alive a zombie
industry.)

All these discussions demonstrate one thing: that is that the two
fundamental policy assumptions on how our government should operate
are unsustainable and ultimately unaffordable, as we are seeing it
happen now....and the only way to reverse engineer the outlandish war

creatures on a Global scale, is to foment a real popular revolution in the

USA...by the people, for the people...and it has already began with the

advent of the likes of the Populist Party....in USA ?

The well-respected economist Joseph Stieglitz told the NYT at the start
of this year:

I've been a bit astonished that all the discussion around the
private-sector stimulus has centered on infrastructure, . . .?

Bailouts, too, are aimed at correcting mistakes of the past, so they
are backward-looking. We would be much better off spending our

money forward-looking. If we spend $700 billion on new technology

and innovation, we'd have a stronger, new, real economy. Up to now,

the discussion has focused on the sectors that have been mismanaged
rather than the sectors that are creating our future.

Of course, investing on new technologies, or innovations, takes time
and concentration to see results. We can't focus on wars and expect a
few scientists to have great bright profitable ideas about how to make
new things....because the policy of the power elites never changed since

the early 1960s....

Sustaining the wars and sustaining the US credit-driven financial
system are both projects which put good money into bad, as well as
focus-diverting....from the real PNAC dream of Global domination and

utter looting of the world's resources, by militarizing energy and controlling

all the trading routes of the world and the lifelines/pipelines....

And unfortunately, there are people who are the Armlets of the Bush
war years who fired dozens of disinformation a day in the global media,

just to drown out criticisms of the administration's policy. They repeated
their statements like Bush and Condoleezza Rice, as if by repeating
them enough they become true. And to add volume to their shouts, they
made ad hominem attacks on anti-war messengers. Now, Obama's machine
cannot try to stop this nonsense real quick before it loses the good
will and support of the people who brought him to power in the first
place....because OBAMA is the quintessential creation of the same forces

at play here, the power behind the power in USA and the Siamese twins

of the evil Nexus of CIA/MOSSAD/MI6/CIA2.....

The only way to stop this evil enterprise is that one must storm the

Temple in order to reclaim it from the sullied hands of the nexus of evils

and so thereby expel those usurpers illegitimately occupying it, forcefully

pushing them and their fellow-travelers out by the proverbial sword -

going for the jugular, as it were - thereby constraining them forever to

heel for the Good of All whilst the Truth sheds its Light erasing the

shadowy darkness that they are and have always been....

CIA plans to split India and CHINA by 2015 ..."Selective" investment in emerging markets will be crucial from now on...

CIA plans to split India and CHINA by 2015 ...

http://militarystrat.wordpress.com/2010/09/04/indias-balkanization-predicted/

http://www.dalitvoice.org/Templates/march2010/editorial.htm

"Selective" investment in emerging markets will be crucial from now on...

Reveals a serving Indian army officer, who is one of the 452 witnesses in the September 29 Malegaon blast case...

In a shocking revelation, an Indian army officer, one of the 452 witnesses in the September 29 Malegaon blast case, has revealed in his statement that the Central Intelligence Agency (CIA) had a grand design to split India into smaller independent countries by 2015.

According the statement, the officer had attended one of the meetings held by the Malegaon blast accused on April 12, 2008 at the Ram temple in Bhopal. The officer from the Army Education Corps said that he was shocked by the proceedings.

He added that an ex-Raw personnel, who was present in the meeting, divulged these sinister plans of splitting the nation, based on a similar operation in the USSR (Union of Soviet Socialist Republics).

The witness added that the ex-Raw official also revealed that the CIA had managed to penetrate several departments in India. The officer cautioned the witness that the meeting was being observed by the Intelligence Bureau.

Sinister plans

The officer met Lt Col Shrikant Purohit in an official dinner at the Officers' Mess of AEC training college and centre in the second week of December 2007 at Deolali. He told Purohit about a plan to take premature retirement to develop his village, and establish an old age home.

On January 26, 2008, Purohit asked him to come to Faridabad and meet a few people for his project. There he was introduced to Sameer Kulkarni and the other accused in the Malegaon blast case. Then on April 12, 2008, Purohit called him for a meeting at Ram Mandir. He met all the Malegaon accused and another 20 people, along with the ex-Raw officer and the IB source.

The former RAW officer spoke about the USSR and Purohit spoke about his plans to bring Abhinav Bharat to the fore. Purohit also spoke about Hindu fundamentals and his contacts in Israel and Thailand....

...And everything goes according to CIA/MOSSAD/MI6 plans...????

http://news.yahoo.com/s/ap/20110220/ap_on_re_as/as_china_jasmine_revolution

Here, http://www.puppet99.com/?p=126

via http://nominedeus.wordpress.com/2011/02/20/arab-democracy-or-banker-hegemony/

is an article claiming that the 'revolutions' sweeping the Moslem world are motivated by Rothschild/Soros interests which want to prevent Islamic banking from getting a bigger share of increasingly lucrative markets....

Elsewhere it was reported that the American airforce has bought software which makes it easy to handle multiple false personas on electronic media, so a few spooks can appear to be a vast crowd of indignant people....

Here's a reference for the fake people story....

http://theintelhub.com/2011/02/19/revealed-air-force-ordered-software-to-manage-army-of-fake-virtual-people/

Hu Says CIA and the Zioconned West are Trying to Divide China by Using Ideology, Cultural Weapons....

The West is using cultural means to divide China (PRCH), which needs to be alert to this threat, President Hu Jintao said in a Communist Party magazine.

“International forces are trying to Westernize and divide us by using ideology and culture,” Hu wrote in an article in Qiushi. “We need to realize this and be alert to this danger.”

Many countries, especially Western powers, are attempting to expand their influence through cultural hegemony, and China must deepen and promote its own values of “socialism with Chinese characteristics,” Hu wrote in the article, which was published on the government’s website on Jan 1. China needs to strengthen its cultural values as it faces possible challenges from the West, he said.

Hu’s comments are part of a wider push by the party to reassert its influence over Chinese culture and society, including in television and the arts. China’s leaders are grappling with the best way to manage Twitter-like social-media sites such as Sina Corp (SINA).’s Weibo service that are hard for government censors to control.

The Communist Party’s Central Committee said it will supervise the world’s biggest online community more closely, promote “constructive” websites and punish the spread of “harmful information,” according to a communique from its Oct. 15-18 meeting released by the official Xinhua News Agency.

Members of the party’s Politburo visited web companies after a deadly train crash in July. Internet users criticized the government’s handling of the crash and spread commentary and photos of the accident at odds with the official line.

Competitive Edge

The Central Committee’s communique also focused on television, with the Communist Party vowing to “promote more fine literary and artistic works” in fields such as television, movies and photography.

That coincided with an announcement that new limits would be imposed on the number of “overly entertaining and vulgar” reality and talent shows aired on television. Starting this year, the nation’s 34 satellite channels must limit themselves to two such programs every week, according to an Oct. 25 statement on China’s State Administration of Radio, Film and Television’s website.

In a globalized world in which people are exposed to many ideologies and values, the country with the most cultural influence will gain a competitive advantage, Hu wrote....

Inflation re-engineering !

http://visar.csustan.edu/aaba/TimKnight.pdf

http://www.intentblog.com/


http://soli.inav.net/~catalyst/Humor/inflate.htm




http://www.americanbanker.com/printthis.html?id=20080929C4VN8N2E&btn=true

--The chaos theory, a phenomenon sensitive to initial plans. A small change in initial conditions, drastically changes long-term behavior of a Covert Operation.A small difference , might turn exponential noise, an inaccuracy of the criminal MIND. Such is made in the most isolated CIA Stations... 22 deliberate murders, meant to "oil" the Rogue operation, make it FEARLESS, self-assured, with a sense of Untouchables, the final result is entirely different from "A" system of smoke and mirrors...--

The O'ctober Surprise... Take $3 M$ and Reverse re-engineering.

The main "trick" is to know what, when and where to look for the cruCIAl information,
with a direct bearing on the subject matter here....

I am Bullish on the US economy, on the US Markets, some emerging and some European markets, except for China... which is a whole different ball-game at play in a different
league... because the PNAC crowds are still at it, trying to socio-engineer all of ASIA,
including CHINA... by militarizing energy security for the PNAC ivy league of nations...
and by fomenting trouble for the thousands of Tribes with Flags in doing so, blatantly.

This O'ctober surprise is like no other, but it's under control by the power behind the
power in USA.... Do not be fooled, because I know what they are trying to "usher"
before the BULLS come back in droves... They have a MAJOR hurdle to overcome
in the US....before moving along quite nicely again.... The "hurdle" is tough and
requires a lot of skill from the new Commander in Chief.... Markets are well under
control for now, moving within a narrow band, up or down 300 points, give or take
a few....despite the catastrophic language used repeatedly by the "Heil" the elite
Chief's.... crowds, which ominously resembles the WMD and Anthrax US shenanigans....
and all false flag ops. before and after 9/11...and the hegemonic wars.
Timing the markets is of the essence, timing is everything here, and mistakes can
be very costly indeed....
There will be a tremendous amount of suffering and misery, brought upon the
American People and many other peoples, unnecessarily.... in order to achieve
their "objective".... Shame on them, for they have no mercy...no scruples, just
greed and false pretenses....

"He who controls the present, controls the past... He who controls the past, controls the futures..."

"The US Government is corrupt beyond redemption!"

The Bohemian Club and the Magic Mirror; foreshadowing of man's relationship—past, present, and future—to the Known, but camouflaged unknowns… ”

http://video.filestube.com/video,676f683242af740803ea.html

“Awe struck we entered a high-vaulted, endless corridor of polished bone-white marble veined exquisitely with PNAC blood. From some distant shadow ICC alcove, a sagacious voice chanted the chronicles

http://www.marketoracle.co.uk/Article297.html

Truth, like a coin, has an obverse and a reverse side. One is a platitude, the other a Quadrillion paradox...

Strange pleasures are known to him who flaunts the "office's"
impressible purple of treachery before the color-blind...

http://deepinthemoney.wordpress.com/

“I have filled out the post 9/11 "style-sheet" with such annotations and details concerning Tsanteleina'uri, as I am at present able to furnish all of the market's futures and parallel timings' CCC, L3 Conundrum...."

http://www.youtube.com/watch?v=de67OBbFWGA&eurl=http://video.filestube.com/video,676f683242af740803ea.html&feature=player_embedded

A commonplace idea when well told is more acceptable than a brilliant thought poorly expressed...?

The Vapor from the Void of the Stinging Trillions' Flame..., will usher in the "new..."

http://bigpicture.typepad.com/

http://images.google.ch/images?gbv=2&hl=en&q=I+am+bullish+on+the+markets+and+wall+street+and+the+economy&start=20&sa=N&ndsp=20