By the Balls...





















401(k)s Hit by Withdrawal Freezes: Wall Street Journal

Out of work? At least you can liquidate your 401(k) to survive for a year or so, right? Yeah, you have to pay a 10% penalty to the government. And you have to pay taxes based on this income plus everything that you may have made up until now this year. But at least you can rest assured that this money that had voluntarily... and sometimes involuntarily (i.e., mandatory deduction) been taken from your paycheck is yours, right?

Guess again.

The American public has lost its balls. Here is a quote from a man in exactly the situation I mentioned from this article who has been informed that he cannot withdraw his cash:

"I hate to be whiny, but it is my money," Mr. Dursky said.

Whiny? Why not furious?

And it gets worse. The money isn't there because it was gambled.

So while the tax payer is being fleeced to the tune of trillions of dollars and generations of debt for no good reason, a hard working person trying to get a mere 12K out of her retirement account is left hanging.

Some investors have lost hope of recovering their money. Judith Sterner, a 69-year-old part-time nurse, had more than $12,000 in the fund when she tried to transfer that balance to a money market last fall. But her transfer was denied, and her stake has since declined to less than $10,000.

"This $12,000 represents a year of my retirement money that I don't have," said Ms. Sterner, of Morton Grove, Ill.


It is amazing that a population can get fleeced wholesale like this but they resort en-mass to wishful thinking, a defunct nationalism, cultural myths, etc. in order not to see the truth that is right around the corner.



True Traitors


According to the Christian Science Monitor a recently published book on the Bush family:

Family of Secrets by Russ Baker is an essential book for anyone seeking to understand the connections between the unseen forces of money and power that have brought the nation to the brink. Meticulously researched and thoroughly documented, Baker’s book delves into the Bush political dynasty like no other book of its kind. Baker is a serious investigative journalist who writes with clarity and precision. His book should be read by anyone seeking to understand the current national downturn and how the Bush family and its operatives have undermined democracy. ”

For those of us who have been hip to the Bush families history we know that the elder Bush's grandfather was convicted of trading with the enemy (Hitler) in WWII and that each son has been a member the ultra-elite Skull and Bones society at Yale.  

For an excellent introduction to this material please consult an interview with the author, Russ Baker, here.  The interviewer said that after reading this book he got physically sick.

Hysteria




Some of the more interesting sources trying to explain why the death rate in Mexico is higher than the rest of the world from this hyped-flu claim that (1.) it may be weaponized and (2.) in a race specific manner.

Before you reject the idea of race specific bio-weapons you might want to consider that you would have to consider at least some of the following people as conspiracy freaks:

Project for a New American Century (PNAC)

"PROJECT PARTICIPANTS
Roger Barnett
U.S. Naval War College
Alvin Bernstein
National Defense University
Stephen Cambone
National Defense University
Eliot Cohen
Nitze School of Advanced International
Studies, Johns Hopkins University
Devon Gaffney Cross
Donors' Forum for International Affairs
Thomas Donnelly
Project for the New American Century
David Epstein
Office of Secretary of Defense,
Net Assessment
David Fautua
Lt. Col., U.S. Army
Dan Goure
Center for Strategic and International Studies
Donald Kagan
Yale University
Fred Kagan
U. S. Military Academy at West Point
Robert Kagan
Carnegie Endowment for International Peace
Robert Killebrew
Col., USA (Ret.)
William Kristol
The Weekly Standard
Mark Lagon
Senate Foreign Relations Committee
James Lasswell
GAMA Corporation
I. Lewis Libby
Dechert Price & Rhoads
Robert Martinage
Center for Strategic and Budgetary
Assessment
Phil Meilinger
U.S. Naval War College
Mackubin Owens
U.S. Naval War College
Steve Rosen
Harvard University
Gary Schmitt
Project for the New American Century
Abram Shulsky
The RAND Corporation
Michael Vickers
Center for Strategic and Budgetary
Assessment
Barry Watts
Northrop Grumman Corporation
Paul Wolfowitz
Nitze School of Advanced International
Studies, Johns Hopkins University
Dov Zakheim
System Planning Corporation

The above list of individuals participated in at least one project meeting or contributed a paper for discussion. The report is a product solely of the Project for the New American Century and does not necessarily represent the views of the project participants or their affiliated institutions."


From the PNAC document "Rebuilding America's Defenses":

"...[A]vanced forms of biological warfare that can "target" specific genotypes may transform biological warfare from the realm of terror to a politically useful tool."

Food Security


In the latest edition of the Futurist in an article entitled "The Disappearance of Food: The Next Global Wild Card?" no less than John Rockefeller writes:

Driving costs down and profits up is well and good, but not when we fail to attend to the safety or sustainability of local supplies. We need to consider the consequences of an interruption in the global food supply chain. Since our sources of food are primarily a shrinking number of centralized and distant corporations, rather than numerous and widely distributed suppliers, our food-supply system is inherently fragile. A single failure would engender a large market interruption. Add political and financial uncertainty into this mix, and the risk increases exponentially...

A single failure in our food production and distribution chains could eliminate a large percentage of our available foods, while driving costs up on the remaining food source options. In this situation, the attraction of reduced consumers’ costs in the short run has set up as much of a risk as did subprime mortgages. Unlike losing a home, however, where we have alternative supplies locally (renting a temporary apartment, staying with friends or family), losing a singular, centralized food supply with no alternative sources available locally would mean widespread hunger and hardship. Therefore, I see an urgent need to bolster local food sources.

As we learned from the economic collapse of 2008, risk management was a game being played with a stacked deck by profit-seeking entities, without regard to economic realities. To avoid a similar outcome in the food sector, we need full and accurate information on the consolidation, vertical integration, and contingency plans for producing and distributing food to consumers in the event of a disruption. This is a global imperative.

The question that must be asked when entrusting survival to a small group of profit-based mechanisms is, What happens if profit disappears? Are there structures and fail-safes in place that will provide safety in times of crisis? What are the contingency plans for supplying food in the event of economic and political crises?


A well documented but largely unknown fact is that the world's food supply is now almost completely controlled by five multi-national corporations.  This is placing an inordianate amount of power in the hands of a few.  As Henry Kissinger said, "Control oil and you control nations; control food and you control the people" (from the 1974 National Security Study Memorandum 200: Implications of Worldwide Population Growth for U.S. Security and Overseas Interests).

The crazy thing about this is that aside from creating large profits for a few it is not clear what good any of this mass-produced and largely genetically modified food is doing.  Its main selling points were increased yields at a lower price with no adverse health consequences.  According to the Union of Concerned Scientists:

Agricultural biotechnology is basically an industry that develops products, often expensive products, priced to cover the costs of research and development. In general, new products are of minor importance to sustainable agriculture. Moreover, such products may pose risks, some unique, to human health and the environment.


This is accurate and an understatement.  For an excellent and well-documented book on this see William F. Engdahl's Seeds of Destruction: The Hidden Adjenda of Genetic Manipulation.

As a side note, shouldn't soverign nations get to decide if they'd like to roll the dice on this issue? Monsanto doesn't think so.

Mind Control




The most elementary form of mind control, obvious to any of us who have had a basic exposure to Roman history, is: divide and conquor.

Why do we throw our towels in with an Obama or a Bush?  Why do we feel an emotial pang when someone questions our "candidate"?  Put differently, why do we invest our self-identities with strangers?

The Black Hole!


It can be fun to gamble.  But at least have the decency to gamble with your own money...  Or the Casino's own money (that is, comps)!

Thanks to the lack of global regulation on the financial market our entire planet has been waged against paper wealth. 

What is the total outstanding set of wagers?  According to this article 1 quadrillion is on the line. That is 190K for every person on the planet!

Now as the article notes, and people who are responsibly reporting this issue, this is merely the notional value which can be much less than the actual value. But still... if this is reduced to a small percent of the total risk it still seems crazy.

The virtue of the article just quoted is that is spells out how certain possible scenarios would result in a global economic explosion that would make the current crisis, apparently based merely on bad loans, look like a walk through the rose garden.

Here is the author's conclusion:

In the context of the USD 700 billion rescue plan -- still being finalised in Washington, DC -- the following is worth considering step by step. Decision makers are rightly concerned about alleviating immediate pressure points in the global financial system, such as, the mortgage crisis, decline in consumer spending and the looming loss of confidence in financial institutions. However, whilst these problems are grave, they are acting as a catalyst to another more massive challenge which may have to be tackled across many nation states simultaneously. As money flows slow down sharply, confidence levels would decline across the globe, and trust would be broken asymmetrically, ie, the time taken to repair it would be much longer. Unless there is government action in concert, this could ignite a chain-reaction which would swiftly purge trillions and trillions of dollars in over-leveraged risky bets. Within the context of over-leverage, the biggest problem of all is to do with "Derivatives", of which CDSs are a minor subset. Warren Buffett has said the derivatives neutron bomb has the potential to destroy the entire world economy, and is a "disaster waiting to happen." He has also referred to derivatives as Weapons of Mass Destruction (WMD). Counting one dollar per second, it would take 32 million years to count to one Quadrillion. The numbers we are dealing with are absolutely astronomical and from the realms of super computing we have stepped into global economics. There is a sense of no sustainability and lack of longevity in the "Invisible One Quadrillion Dollar Equation" of the derivatives market especially with attendant Black Swan variables causing multiple implosions amongst financial institutions and counterparties! The only way out, albeit painful, is via discretionary case-by-case government intervention on an unprecedented scale. Securing the savings and assets of ordinary citizens ought to be the number one concern in directing such policy.

Real Unemployment


Typically cited unemployment rates failt to take into account (1.) discouraged workers who are not longer actively seeking jobs and (2.) the underemployed who may work a few hours a week and are thus counted as employed.

If these people are added to the count the number of people unemployed is about one in six (15.6%) according to the U.S. departments of labors March figure.

But it is really even worse than that (quoting from this article at MSM Money):


Even the Department of Labor's expanded unemployment measure doesn't fully capture how difficult the job market is for American workers. It doesn't include self-employed workers whose incomes have shriveled. It doesn't look at former full-time staff employees who have accepted short-term contracts, without benefits, and at a fraction of their former salaries. And it doesn't count the many would-be workers who are going back to school, taking on more debt, in hopes that an advanced degree will improve their chances of landing a job.

Here's another way to look at the unemployment figures: More than 5 million people have lost their jobs since the start of the recession in December 2007. And more than 13 million people are unemployed. That's the highest number the U.S. has seen since it began tracking unemployment after World War II. For every job out there, more than four people are competing for it, says Boushey.


The article goes on to point out that lawyers are now taking paralegal jobs and Ivy League professionals are taking contract jobs.  This blog has a link to an interview with a former CEO who is now delivering pizza.  

And it is hard to see how things will get better anytime soon.  To put it simply; the United States economy is now (1.) predicated on consumer spending rather than manufacturing and (2.) dependent on foreigners buying up our fiat confetti.  As people loose jobs, consumer spending dries up, lending contracts and this results in a negative feedback loop as more and more jobs are shed. Combine this with the dollar becoming increasingly unattractive due to its recent and continuing dilution and the IMF development an alternate world currency...  You do the math.