The Liberty Beacon

The Liberty Beacon




It’s one thing for contrarian financial websites to accurately predict the transitory phase and housing price dead cat bounces which are only sustained by the unholy trinity of foreclosure bottlenecks (which are simply supply-side subsidies), offshore money laundering into US real estate (thanks to the NAR’s AML requirement exemption) and Wall Street-as-a-Landlord (through REO-to-Rent and other Fed-funded programs): after all the point of such correct analyses is to be ignored and blasted as conspiracy theories until they are proven, inevitably, correct.

But when a former Goldman executive and the previous head of its housing research team comes out with a shocking analysis so contrary to what the same individual would do in his “former life” when he would be extolling the inevitably rise of home prices from here to eternity and beyond, and also throw in an open letter to none other than president Obama, predicting at least a 15% crash in home prices in the next three years, a move which would without debt catalyze the next US recession, it is time for everyone to pay attention.

Meet Joshua Pollard, who in February 2009 took over coverage of US Housing at Goldman Sachs at the tender age of 24. We can only assume he was given the responsible position because everyone else in his team who had, bullishly, covered housing right into the Lehman crash, was fired.  But regardless of Pollard’s career and how he got to where he is now, what is more important is that in a report released today, the former Goldmanite has cautioned Obama on the economic impact of an imminent 15 % decline in home prices over the next three years.

In short. the former Goldmanite says that “House prices are 12% overvalued today. They have already started to decline. Today’s misvaluation matches the excess of 2006-07, just before the Great Recession… 5 of the last 7 US recessions were led by a weakening housing market… I am lamentably confident that home prices will fall by 15% within three years.” Or, as some may call it, crash.

* * *

While we provide his entire extended analysis of just how this crash will take place, here is the punchline, which incidentally is spot on: when all is said and done, it will be “never-before-seen public policy reactions that determine when and where prices eventually trough.

In other words, if the timing of Pollard’s forecast is correct, the last thing on anyone’s mind in mid-2015 will be a rate hike. Instead, what people will be talking about, if and when the housing market crash begins, is how to finally engage in Bernanke’s favorite para-dropping activity…

Here is how Pollard classifies the three stages of home price decline:

3 Stages of the home price declineUnless the calculus of history is a poor guide, there is a 60% chance that home values decline materially, in fact, the correction is already underway. This probability rises when new negative shocks emerges. The home price decline will be defined by 3 Stages:

Stage I: Hot to Cool: Active since Summer 2013*, Price growth is slides across the country as flippers lose money outright in the red-hot investor markets (NYC, San Francisco and Las Vegas); New home absorption rates – sales per community – are declining; investors slow their home purchases; total home sales decline year over year; developers lose pricing power, press outlets shift from positive to mixed about the health of the housing market.

Stage II: Demand to Supply: Small shocks convert demand pools into supply ripples. A first wave of investors begin trimming prices to get ahead of future declines; discounts increase to incentivize purchasers as purchasers increase their delays for better deals; developers reduce land budgets as cancellations tick up; major financial press outlets take a more negative tone toward housing lowering confidence overall.

Stage III: Deflation & Response: Falling home prices create a negative deflationary feedback loop that foreshadows a once-in-a-lifetime policy response. Deflationary economics take full hold; leveraged bets on real estate unwind in quarterly ripples due to the public reporting cycle & asset manager redemption schedules; willingness to lend shrinks; the broader consumer finally understands it is a bad time to buy a home, a shrinking housing market negatively impacts jobs causing recession; the estimated effects of never-before-seen public policy reactions determine when and where prices eventually trough.

Some details on timing and where we are now:

Rates & Shocks

We are 16 months into Stage I. A sooner-than-expected rise in mortgage rates – or other adverse shocks – will domino the decline into Stage II unintentionally. Because financial markets rely heavily on Federal Open Market Committee (FOMC) communication and the fed funds rate is near zero, “forward guidance” shifts have as much impact as yesteryear’s rate increases. To that end, two recent policy communications raise immense concern that Stage II of the home price decline could be incited soon: the first public speech of Loretta Mester and a recent letter from the ranks of the Federal Reserve Bank of San Francisco.

September 5, 2014: Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland, in her first public address since becoming a FOMC voting member welcomed and expects increased volatility following future Fed guidance and rate changes. Mrs. Mester, the FOMC’s newest communication sub-committee appointee, described volatility as a “necessary part of price discovery.” Her personal view is that forward guidance should be tied to actual progress, anticipated progress and the speed at which progress is being achieved (volatility); progress toward full employment and 2% inflation has occurred faster than she and the Fed expected. While stock market volatility has hovered near all-time lows during the Fed’s most recent communication expansion, home price volatility is at extremely elevated levels.

September 8, 2014: A letter from Jens Christensen, a senior economist at the Federal Reserve Bank of San Francisco, highlighted a concerning expectation gap between investors and the Federal Reserve regarding future interest rates. In the letter titled Assessing Expectations of Monetary Policy, the author showed that public investors are expecting a more rate-accommodative policy than the Federal Reserve and these investors are more confident than the Fed in this stance.

As public policy makers debate seminal decisions on “forward guidance” and unconventional monetary stimulus we note that each 1% increase in mortgage rates drops home values by 4%. At a 2% fed funds rate, where Fed officials and investors expect to be by the end of 2016, today’s over-valuation of 12% grows to 20%. Respectfully, the United States can not afford another housing driven recession.

With home price volatility at an all time high, the escalation from Stage II to Stage III is difficult to predict today. At Stage III, the virtuous cycle of housing, a unique mix of causal financial and social relationships, breaks. At these points in history unique governmental intervention provided the only spark that reignites demand. Price discovery is volatile around each new catalyst of information, and the trough will emerge as consumer and investor confidence rebuilds at lower prices. I believe confidence rebuilds at 15% lower valuations without premptive positive shocks.

Unless, of course, the momentum ignition mentality, made so prevalent in capital markets thanks to HFTs in recent years, takes over and the 15% threshold to “rebuild confidence” and BTFD is really 30%, or 40% or more…

Taking a step back, here is the analysis that Pollard uses to base his opinion that housing is due for a 15% crash within three years:

House prices are 12% overvalued today. They have already started to decline. Today’s misvaluation matches the excess of 2006-07, just before the Great Recession. Since World War II home prices have been tightly correlated to income and mortgage rates (R2 = 96%). Investors/cash purchasers, which make up 50% of home sales, have driven real estate volatility to unrivaled levels in trackable history. As public policy makers debate seminal decisions on “forward guidance” and  unconventional monetary stimulus we note that each 1% increase in rates drops home valuations by another 4%; at a 2% fed funds rate, where fed ocials and investors expect to be by the end of 2016, the overvaluation equals 20%. Respectfully, the United States can not aord another housing driven recession. The facts and correlations – the tenets of probabilities – suggest it is more likely than not that home prices fall 15% in the next three years.


Drilling down into Pollard’s “three stages:”

The home price decline will occur in three distinct stages: I. Hot to Cool, II. Demand to Supply and III. Deflation & Response.

Stage I, “Hot to Cool”, has been underway for 16 months, ignited by a Summer 2013 interest rate spike while prices were rising double digit percentages. Another rate shock, driven by unexpectedly hawkish Fed language, would likely stoke the decline from Stage I to Stage II.

Homebuilder absorption rates precede a home price decline

Homebuilder absorption rates have been a unique leading predictor of new and existing home prices. Changes in gross absorption rates – the number of homes sold per community for the largest homebuilders – have historically led home prices by four quarters. Gross absorption rates have been declining for four quarters in a row.


Home price growth slows with outright drops in some places

As of June 2014 prices are already falling outright in 7 of the 10 largest markets. In standardly quoted stats home prices are up 8% over last year, but with the most recent sequential price drops price will be down 1% yoy if prices simply stay the same until next year. Downward pressure is more likely to continue than not given the 12% overvaluation and home price autocorrelation.


Investor demand slows

The number of homes flipped in the US has declined 50% in the last four quarters alongside slowing home price growth. In fact for the first time since the Great Recession home flippers lost money, before taking re-hab costs into account, in some of the largest real estate markets in the country, namely Las Vegas, New York and San Francisco. Generally, investor demand is only a complement to larger trends in home-buying, however, with all-cash sales being roughly half of total closed sales their impact has been magnified.


Negative homebuilder absorption rates, in conjunction with slowing average selling prices are the clearest signs of a weakening housing environment in Stage I. Economists and management teams acknowledge these early weaknesses but remain positive until a “trend” emerges because the data is volatile. When the “trend” properly surfaces we are already in Stage II

* * *

In Stage II investors stop buying and immediately start selling. This activity increases inventory and home prices fall year-over-year. Recent buyers are remorseful. Negotiating buyers begin waiting to see if better prices are ahead until prices slide and cause Stage III to begin.

Because home price values drop 4% for every interest rate point increase, there are not many shocks as powerful as unexpected interest rate lifts. In a concerning letter from economists at the Federal Reserve Bank of San Francisco, Jen Christensen shows that investors are more optimistic than the Federal Reserve Board of Governors about the path of interest rates. Over the last 25 years home sales have never increased when mortgage rates rise by more than 50 basis points in a month. In 2 out every 3 such cases volumes declined by 3-4% that same month. Interest rate shocks this deep into Stage I have the highest probability of forcing Stage II.

Small shocks have outsized impact with high investor demand and high valuations. Investors are naturally unemotional about assets, focused squarely on cash returns. An investor buyer of 100 homes (demand) can quickly become a seller of 100 homes (supply) without having to solve for speed-limiting consumer issues like finding another place to live, switching school districts or missing neighbors.

If investors reduce their demand by 50% and put half of last year’s purchases on the market, which is not unreasonable when home prices fall, total months of supply jump to 7.5 months from a healthy 5-6 months today. Similarly if 15% of aggregate demand converts to supply a comparable increase in the months supply can occur. 5 of the last 7 US recessions were led by a weakening housing market, with greater than 8 months of supply.


The velocity of Stage II is extremely difficult to predict. Home prices (if you think about them like living things) mock what they see. “If Billy across the street goes up $50,000 then Bobby down the block wants to go up $50,000.” In statistics-speak home prices are autocorrelated in the short term partially because the US appraisal system forces Billy and Bobby to stay close. The transition from Stage II to Stage III is set up to happen quicker than ever because Billy and Bobby (individual home prices) go up and down two times faster than normal.

A material financial imbalance is aggravated when home prices decline. Homes make up 24%, or $23 trillion, of consumers’ total assets. An uneven 69% of consumers’ liabilities are the mortgages tied to those same homes. This tilted financial position means a 5% reduction in home prices equates to a 8.6% decline in consumer net worth. At 15% home price deflation consumers‘ real estate net worth drops 26% or $3.4 trillion.

$3.4 trillion of wealth destruction impacts homeowners financially and future buyers psychologically. Unfortunately the Millenials early-adulthood real estate appetite was handicapped by the Great Recession. With a 45% underemployment rate for recent college graduates, elevated student debt and increased home price volatility the willingness/ability to own will likely shrink among the country’s next major wave of consumership.

* * *

The drivers of housing are structurally recursive. The shift from a good market to a bad market occurs quickly, exaggerated by the circular currents of confidence from consumers, investors and lenders in unison. When unnatural levels of demand or supply impact the market prices are pushed in lockstep.

Unnatural demand from investors has created a mismatch relative to long term drivers – income and rates. Arguably, the upward price movement driven by investor demand has helped to restore the confidence of consumers and lenders in housing as an asset class, however, this shifts quickly. Home prices are already declining and the probability of a more severe decline becomes too high to ignore if new negative shocks force Stage II and Stage III of home price declines.


* * *

With all that said, what are Pollard’s suggestions and/or recommendations to offset what will surely be the catalyst for the next recession? He has three:

Public policy suggestions:

Formulate and preemptively communicate a forward-looking monetary policy that balances the risk of raising interest rates from a very low base six years into an economic cycle. If the impact of “forward guidance” changes cause housing weakness and a reduction in corporate profits how will monetary policy spur a weakening economy? Does language simply reverse? Because we are near the end of monetary easing with rates near 0%, will new monetary stimulus be more likely? Could rates be lifted while the stimulus is being increased? Are shadow rates worth considering? An early address of the new cyclical policy toolkit will ease investor volatility when economic slowdowns eventually occur.

Create a skilled trade externship program for the laborers that lose jobs because of lower housing investments. This will lower the multiplier effect of a housing downturn by directly supporting the things that the laborers drive in booms and crash in busts. Simultaneously use this program to train younger Americans in specialized trades while boosting the infrastructure in the country.

Forcefully rebalance number of homes to the number of households. Reduce new builds: Have federal and state regulators reclaim building permit powers from municipalities and localities and limit building to some reasonable percentage of expected household growth. Demolition: Shrink the number homes that can force prices down, particularly those that are already vacant, unsafe and expensive to rehabilitate. Increase migration to the country with a preference toward household headship.

Of course, none of these will be taken seriously until it is too late. And furthermore, one can wonder if it will even be too late: after all some can say that all Pollard is trying to do is pitch his latest company, now that he has left the sell and buy-side: what better way to do that than with a loud call for a housing crash by a former member of the status quo establishment and a letter to Obama.

None of that, however, diminishes the validity of Pollard’s observations and forecasts, and if anything, he is likely optimistic as to the severity of the coming housing crash. Then again, if and when housing has finally tumbled, it will mean that the Fed’s loss of control of its micromanagement experiment in central-planning is now official. Which will also mean that that far greater repository of household wealth, financial assets, which is where nearly $70 trillion of US assets are parked, will be on its way to a long-overdue “fair value”, ex-Fed repricing.

When that happens, whether a 15% or 51% drop in US housing, will be the least of anyone’s concerns.

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Special interests?

Whose special interests?

Could we be referring to SELF interests that are often euphemistically called SPECIAL interests by those mysterious few who form public opinion in their exercise of human domination?

By: J. Speer-Williams

Yes! Mass public opinion in America is molded by the work of a highly paid thousand people, under the direction of better paid hundreds, ordered by a secret few, who have repeatedly proven to be enemies of mankind. And, special (self) interest groups are often the vehicles used to accomplish depraved purposes.

Such is the story of the world’s most deadly self-interest group: the nuclear power industry.

Of all the international bankers’ hundreds of special (self) interest groups receiving preferential treatment and vast sums of money from our government, the most dangerous to mankind is the nuclear power industry.

In spite of nuclear energy’s monstrous risks and unreasonable costs, the anti-life nuclear junta, and their loyal sycophants, continue to vilify coal as a fuel to produce electricity.

An American special interest group is a pressure group that works to advance its own interests by gaining governmental favoritism, regardless of how it effects the general US welfare.

These self-interest groups are secretly organized and funded by those oligarchs who would enlarge the scope and power of the federal government they have for decades controlled.

These radical fringe groups never protest, campaign, or lobby for freedoms from US despotism, but for more authoritarian controls in the forms of favoritism, biased laws/regulations, and large financial subsidies for themselves.

Our elected politicians and appointed bureaucrats, alike, care remarkably little what their constituents need or want; it is what the lobbyists promise or threaten them with that matters most. At one end of that promised/threaten scale lay riches, while the other end is political death, or perhaps one’s own death.

We can easily see that if a special interest group is to be successful in gaining huge  government favors, it must be sponsored, promoted, and financed by the foreign bankers and their mega-corporate media.

By the Controllers’ use of their major-media, the demands of their self-interest groups are publicized, are made to appear justified (or at least reasonable), and then portrayed as the wishes of the majority of the American people.

This tactic appears to be the wondrous workings of a democratic society when, in fact, it destroys democracy in favor of the statism of fascism.

From the corporate media we continually hear that the burning of coal produces carbon and thus global warming. But can you remember when your television set told you that nuclear power plants cause leaking radiation that produces cancer?

So we are left to decide between the questionable dangers of carbon (and global warming), or the assured dangers of radiation (cancer and death).

First of all, the long promoted myth of anthropogenic (man-made) global warming has no basis in scientific fact.

The bankers, with control over their media and science, would have you believe otherwise. These grand shysters think nothing of using their mainstream media to broadcast fraudulent reports, trying to prove anthropogenic warming does occur, and then calling the hoax a consensus of all the world’s greatest scientists.

In time, it became obvious that much of the world was getting colder, rather than hotter, so the tag line global warming had to go the way American prosperity has gone – to nothing. And the brand new tag offered to the bankers by public relations experts was climate change.

The catchphrase climate change was an excellent choice, as the earth’s climate is always changing. In this way, no matter what kind of inclement weather we might experience, the governmental authorities could say Americans were causing it and needed to be taxed in order to stop it. And, they plan to stop it with something they are calling carbon credits.

And guess where this new heavy stream of tax revenue will end up. Those who say, “in the pockets of the banking oligarchs,” have been paying attention.

More importantly to the furtive bankers, however, is their mysterious Agenda 21, sponsored by the United Nations. Yes, the banker influence extends from our federal government to the United Nations and beyond.

Along with population control, the US/UN Agenda 21 goals are to massively reduce private property, homes, farms, resorts,  and vehicles in order to produce a more sustainable environment.

The feel-good buzzword sustainable has been used so often by the Controllers that the word has become an easy tip-off for deceptions of magnitude.

In short, the government/media attack on coal is all part of the implementation of the Controllers’ insane Agenda 21 plan.

And why have the Controllers built for themselves hundreds of nuclear power plants around the world?

The answer everyone can agree with is they did it for the hundreds of billions of dollars they receive from these absurdly expensive to build and maintain facilities.

The main reason, however, is not so easily believed. They built these nuclear power plants to reduce the world’s population, a key element of the Agenda 21 scheme.

And how do the bankers plan to live when the earth is covered with radiation, whose half-life is around 4.5 billion years?

Do not try to track with the thinking of psychotics, lest you too go insane. The fact that they are committing an insanity with their nuclear power plants is, regardless of why, uncontestable.

Below is an excerpt from one of my novels. It features Rebecca Silverthorne’s email to two twin sisters, Leslie and Lindsay.

Ms. Silverthorne is an ex-economics professor at Williams College, in the small town of Williamstown, Massachusetts.

We pick up the message about midway in her email.

Our planet is suffering from massive and purposely caused governmental and corporate pollution, much of it radioactive in nature.

Our great landmasses are being turned into irradiated deserts, bound by poisonous seas, meant to cause our DNA structures to mutate and regress.

That’s the reason, I believe, for all of the continuous atomic testing, the use of DU (depleting uranium) in warfare, and the building of nuclear power plants. Atomic testing has lasted long beyond what was needed to test bombs – after all, the US  military has tested its bombs on millions of noncombatants all over the Middle East.

Atomic testing continues in order to get  ionizing radiation into the trade winds and jet streams so as to attack every DNA on earth.

DU is not a good military weapon because it reduces the efficiency of (and eventually kills) one’s own troops. Worse yet, DU attacks the DNA of mankind as it circles the globe.

My sources tell me that the American armed forces have expended over 1,800 tons of DU in Iraq and Afghanistan, alone. That is the rough radiation equivalent of over 14,000 Hiroshima atomic bombs. That has placed our ground troops, along with Arabs and Jews in the Middle East, among the walking dead, plus turned the entire region into a radioactive wasteland for about 4.5 billion years. Sadly, there’s no known way to clean up DU.

Already, there’s a growing mass of valid research pointing to the decline in the quality of Israeli male sperm. This serious evidence was boasted by a study conducted at the Hadassah University Hospital, Mt. Scopus, which found a fifteen-year decline in the viability of the semen donated by Israeli students.

All this while my ignorant relatives in Israel cheer their use of DU weaponry in Gaza and Lebanon. Do those idiots think  that their DU radiation respects national boundaries and therefore won’t cross into Israel? Talk about ignorance.

But ignorance is not isolated in Israel. Not so long ago, a large sign crossed the main street of a city in the prefecture in Japan where the Fukushima nuclear power plant was located.

The sign carried an ominous and fatal omen:

   Nuclear Energy: Our City’s Future!

Their future has proven to be massive premature deaths with many more to come.

Prior to the Fukushima disaster, the nation of Japan enjoyed the lowest incidence of cancer in the world, probably due to their usual diet being from the sea – plants and fish. Today, no thanks to the nuclear power industry, Japan is the most radiated nation on earth.

Cancer is the engineered Black Plague of modern times; and the Banking Cartel is ensuring that their governmental agencies are keeping it that way with many atomic power plants all over the world.

To have forced the construction of fifty-five nuclear power plants, with another twelve in various stages of development, in Japan, the most seismically active piece of real estate on earth, is more sinister than a mere combination of utter ignorance and arrogance. It is nothing short of a deadly, covert attack by the power structure on and against the family of man.

Nuclear power plants are an extremely costly, dirty way to produce power. But this is exactly what the Controllers have their owned and controlled media and political minions say about our coal-powered plants and other alternative ways of safely and cheaply creating electrical power.

Fact is, the 440 nuclear power plants around the world all off-gas tremendous amounts of radionuclides, even when they are operating without problems. Two of these radionuclides are strontium-90 and tritium.

Some of our nuclear power plants are over forty years old, some twenty years older than their planned lifespan, and they leak badly.

A much bigger problem is that our federal government has never found safe storage methods to protect us from their highly radioactive nuclear waste, in the form of spent nuclear fuel rods. This absolute and terrible omission ranks as one of the most irresponsible acts of a government that is well known for its irresponsible actions.

We now have over 66,000 metric tons of spent fuel rods, inadequately stored at 77 sites around the country, all radiating our citizens while they benightedly watch their television sets.

David Lockbaum, the Director of the Nuclear Safety Project for the Union of Concerned Scientists said, “The federal government has failed the American people by not dealing with spent nuclear fuel for decades. The next nuclear facility built in the United States should be a depository rather than more nuclear power plants that contribute more spent nuclear fuel to the waste we have not been able to solve for decades.”

Plans to make Yucca Valley in Nevada a long-term storage site were scuttled by the Obama administration in 2010, after twenty years of planning, at an expense of $14 billion.

Does Mr. Obama have a better idea? If so, tell us, Mr. Change-we-can-believe-in.

Currently, 2,000 metric tons of spent nuclear rods are added to our storage problem each year. This is crowding our existing storage tanks and making them less efficient at reducing our deadly exposure to them.

To shut down coal-fueled power plants (as often proposed by Mr. Obama) instead adding scrubbers to them, making them safe for our environment, is well beyond ignorance. It demonstrates a concerted covert effort to damage human DNA and shorten lives, as is occurring daily around most of the Northern Hemisphere from the Fukushima disaster.

The Fukushima catastrophe was not an event that came and went, as much as it was the Controllers’ media continually  trying to convince you that the danger has passed in order to prevent a mass uprising against the criminals of the nuclear power industry.

The Fukushima disaster is a game changer. It is a worldwide, day-to-day, year-to-year, decade-to-decade cataclysm, which may continue for a long time to come.

Following the atmospheric jet stream, radiation from Fukushima is continuously traversing our world, blanketing America, Canada, Europe, and even migrating into the Southern Hemisphere.

It is already estimated that the radioactive fallout in the Northern Hemisphere from the destroyed Fukushima reactors is more than what would have been generated from 70,000 Hiroshima atomic bombs, with  much more coming our way.

Is this some kind of divine payback for the two completely unnecessary atomic bombs we dropped on a defeated Japan?

The amounts of cesium-137, alone, being continuously released from Japan and circling our globe is well beyond our best calculations. The Fukushima disaster could increase our worldwide cancer epidemic ten times, without many people ever knowing why so many of us are being so stricken.

The 440 nuclear reactors around the world only produce about seventeen percent of man’s electricity, thus creating far more problems than they solve.

We certainly don’t need any more nuclear powered plants. The people of Earth should demand that the nuclear power industry be shut down forever and the key proponents of the industry be indicted for their crimes against humanity.

Well, enough of all that. But keep in mind, your mere knowledge of potential dangers offers a degree of protection.

So, stay protected.

Love, Rebecca

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By TLB Contributor: Dave Hodges

Known globalist, Henry Kissinger, served as national security adviser and Secretary of State under Presidents Nixon and Ford, has written a book entitled “World Order”. The book is to be published Sept. 9 by the Penguin Press. Among many statements that would be objectionable to most Americans, Kissinger stated that “The search for world order has long been defined almost exclusively by the concepts of Western societies…progress toward it will need to be sustained through a series of intermediary stages”.

Kissinger's quote is important because he was tasked with implementing the insane genocidal policies contained in NSSM 200.

Kissinger is correct on a number fronts. The intermediate steps that he speaks of are ubiquitous and have already happened. The establishment of regional government, such as the European Union, is a move towards the consolidation of major governments. The free trade agreements have obliterated national boundaries in favor of an international system of trade designed to benefit multi-national corporate interests at the expense of individual citizens. Further, the erasure of the national boundaries of Western countries, through contrived illegal immigration scenarios, has served to destroy national identities and cultures. The IMF controls the relative wealth of national currencies. The establishment of the Council on Foreign Relations, the Trilateral Commission and the Bilderberg has presented an informal system of international governance to the western democracies.  Through predatory loan practices, the World Bank has subjugated the infrastructure of emerging second and third world nations by taking control of their food and water delivery systems. As Kissinger has so boldly stated in the past, if you control food, you control nations.

The world is indeed marching towards the New World Order. However, the process of monetary and political manipulation has taken the globalists as far they are going to go with regard to the establishment of a draconian system of international governance. The final step on the path towards the New World Order must involve an entire reorganization the planet, its institutions and system of governance. In order to accomplish this goal, the globalists must tear down the old and build the new (i.e. “Out of chaos, comes order”).

What Kissinger means the world must be torn down by war or by a pandemic. Certainly, the present Ebola crisis could be used for this purpose. However, the globalists are well-known for their desire to maximize profits while facilitating their international system of governance. Therefore, a war is far more likely. Wars are profitable for the bankers and an end goal would be realized through a war and that would be a tremendous reduction in the numbers of what Kissinger called “the useless eaters”. The world will soon be going to war.

It Takes Two to Tango

putinThe globalists have two willing dance partners needed to participant in the upcoming holocaust which will kill billions of people. Russia has expressed their enthusiasm for participating in WW III with a thinly veiled warning recently issued by Vladimir Putin.

“I’ll remind you that Russia is one of the largest nuclear powers. These are not just words, this is reality and, moreover, we are strengthening our powers of nuclear restraint. We are boosting our armed forces, they are actually becoming more compact and more effective. They are really becoming more modern from the point of view of being equipped with modern systems of weaponry. We will continue increasing this potential, and we will do this,” Vladamir Putin recently stated.

On a number of occasions, Putin has threatened to “nuke” the United States if it dares attack either Syria or Iran. China has echoed the same sentiment. This has led to the rise of the BRICS and their deliberate undermining of the Petrodollar by purchasing Iranian oil with gold and forsaking the dollar as the medium of exchange in the purchasing of oil. The BRICS are trying stay as solvent as possible by running from the doomed dollar.

How the Banksters Put the Petrodollar in Jeopardy

Since the end of WW II, the globalists created a system of economics predicated on making the U.S. dollar the reserve currency of the world. Now the BRICS are openly defying this banker created edict, why? The world is hopelessly in debt because of the credit swap derivatives which was no more than a ponzi scheme which infiltrated the futures market. The venture was created by the controllers of the world’s central banks, the Bank of International Settlements (BIS).


The Bank of International Settlments

The central banks and their subsidiaries were wildly successful with this ponzi scheme, at first. However, like a crack addict, the central banks and their minions (e.g. Goldman Sachs), predictably could not resist participating and like all ponzi schemes, the bottom fell out. Only this time, the banks and other financial houses went with them because they were used to insure and underwrite the entire process. This led to the need to create the bailouts to help the central banks stay one step ahead of the burning bridge. There was first bailout, then there was the second, the third and now we basically have QE unlimited in which these thieves help themselves to the “people’s” money whenever they want. Members of the Federal Reserve have hinted that bail-ins are coming this fall. If you are unfamiliar with the term, that means that the banks are going to steal your money and give it back to you for pennies on the dollar. This also means that your pension, social security and 401 K accounts are next to be confiscated by the globalist bankers. Why? Because the central bankers are desperately to stay afloat after being devastated by the derivatives debacle. There can be doubt about it that the BIS put its central banks on “death’s ground” and the end game is World War III and the establishment of a New World Order.


The entire wealth of the planet is estimated to be 96 trillion dollars on the high end of the estimate. The United States share of the debt owed by derivatives debt is estimated to be one to 1.5 quadrillion dollars. This debt can never be paid off. The only way to erase this debt is to begin to engage in wars of conquest and asset acquisition. Then and only then will globalists such as Kissinger realize their dream of a large scale world war designed to consolidate all power on the planet and then place that power under the control of the bankers.

This entire scenario was made possible by the BIS when they created the concept of the derivatives and got their member central banks hopelessly hooked on the process. The BIS in the pursuit of global governance has the world right where it wants it, on the very edge of Armageddon.

Every war has a trigger event for conflict. ISIS, a CIA creation, has provided the trigger event for World War III by entering into Syria. This event has provided the United States with the pretext to move into Syria to stop ISIS. Russia will then make good on its promise to oppose such a move and World War III will have begun in earnest.

Part III of this series,  will examine the very likely chronology and unfolding of event in the course of fighting World War III.

Read part one of this series here: The Blueprint for World War III

About the Author

Dave Hodges is the host of the popular radio talk show, which airs from 9 PM to Midnight (Central). The show can be heard by clicking the following icon in the upper right hand corner of The Common Sense Show.

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kissinger-useless-eaters 2

By TLB Contributor:

The cost of food has been steadily increasing in places like Thailand and Venezuela as evidenced by the fact that since the beginning of 2014, riots are occurring in countries that are suffering through extreme food shortages.  These mass protests movements may all have one thing in common, increasing food prices are the cause of the civil unrest.


According to Dr. Yaneer Bar-Yam and his research colleagues at the New England Complex Systems Institute (NECSI), they are collectively stating that civil unrest, spurred by food shortages. may be anticipated for their effect by a mathematical model that correlates the variables of rising food costs, diminished and that are related to income and civil unrest. The present data suggests that America is ripe for the same kinds of civil disruption that we are witnessing in Thailand and Venezuela. How bad could the civil unrest become?  Nobody can be certain except to say that America is entering into uncharted waters.

If one uses the violent civil unrest in Ferguson, MO. as a barometer of severity of the act of rioting, we need to realize that people are protesting the shooting death of one young man by a local police officer. Imagine how much more vitriolic these protests would become, how much more looting would take place and how many more people would be killed and injured if people and their children were facing starvation and these riots were food riots. The people of the United States are almost at the point of no return with regard to the coming food riots.

Inflation Related to Food Prices

In calculating the overall inflation rate, the government does not count the price of food. However, there are several reliable food inflation figures and the food inflation rate is estimated to be between 19% to 22%.

food inflation
In the article, “Food Price Inflation Scares the Fed” the commodity food costs were exploding on the upside. Calculation of the food inflation rate, given the lag in commodity costs impacting prices on grocery store shelves, we find that the annual U.S. food inflation rate is now running at a staggering +22% and the rate is increasing with no end in sight to the escalation.

The real and specific cause for food inflation is the $940 billion of additional monetary stimulus from the United States Federal Reserve’s quantitative (bail out) easing over the last twelve months.  Both the cost of food and gasoline inflation rates are awakening the variables associated with hyperinflation. Please note that the $940 billion of giveaway bailout money is nearly half of what we take in as a country in taxes. If you truly want to be accurate about America’s economic future, repeat the accurate mantra, “There will be no economic recovery” and “Many Americans are going to starve to death”.

A Snapshot of America’s Food Vulnerability

Almost beyond belief, a full 79 percent of the people that use food banks purchase typically buy cheap, unhealthy food and still just have enough to feed their children.  The price of food continues to quickly out-pace the paychecks of most middle class families.  For example, the average price of ground beef has just hit a brand new all-time record high of $3.88 per pound! There are nearly 50 million Americans that are dealing with food insecurity in various degrees of distress. Just over one out of seven Americans rely on obtaining food from various banks at one point or another and these food banks are beginning to experience record shortages.

In a case of “defend the nation and starve”, military families are feeling even more stress  from not being able to obtain sufficient quantities of food as 25% of America military families require outside assistance in getting enough to eat. What does this say about an administration which uses our soldiers to defend the nation and then kicks them to the curb by denying their VA  health benefits as the government also starves their families because they cannot survive on what we pay our soldiers? This is disgraceful, but it is the Obama fundamental transformation of American way!

 America Has No Way to Keep Up with Food Inflation

According to the New York Times, the typical American family is now worth 36% less than it was worth only 10 years ago!  Shockingly, one out of every six men, ranging in ages from 25 to 54, are not employed. Median family income in the United States is 7% lower than it was in 2000. The United States is now in 19th place in the world and falling. There is no way that the majority of American families can keep pace with food inflation as the wages of Americans are now inversely correlated with the rising food prices. This is a prescription for disaster. The most vulnerable to starvation within the present economic climate are the children as an amazing twenty six percent of all children are living below the poverty level.With these kind of distressing statistics, a significant number of Americans are vulnerable to politically motivated “food blackmail” in these  times of economic distress.

There is historical evidence that food vulnerability may have been planned for a long time by elements of the U.S. government.

The US Government and Its Food Deprivation Policies

food is not a weaponThe use of food as a political manipulation tool,  by the U.S. government, has been a matter of official U.S. governmental covert policy since 1974-1975.

In December, 1974, National Security Council directed by Henry Kissinger completed a classified study entitled, National Security Study Memorandum 200: Implications of Worldwide Population Growth for U.S. Security and Overseas Interests. The study was based upon the unproven claims that population growth in Lesser Developed Countries (LDC) constituted a serious risk to America’s national security.

In November 1975 President Ford, based upon the tenets of NSSM 200 outlined a classified plan to forcibly reduce population growth in LDC countries through birth control, war and famine. Ford’s new national security adviser, Brent Scowcroft, in conjunction with then CIA  Director, George H. W. Bush, were tasked with implementing the plan and the secretaries of state, treasury, defense, and agriculture assisted in the implementation of these insane genocidal plans.

kissinger useless eatersNSSM 200 formally raised the question, “Would food be considered an instrument of national power? Is the U.S. prepared to accept food rationing to help people who can’t/won’t control their population growth?” Kissinger has answered these questions when he stated that he was predicting a series of contrived famines, created by mandatory programs and this would make exclusive reliance on birth control programs unnecessary in this modern day application of eugenics in a scheme that would allow Henry to have his cake and eat it too in that the world would finally be rid of the “useless eaters!”

Third world population control, using food as one of the primary weapons, has long been a matter of official covert national policy and a portion of President Obama’s Executive Order 13603 (EO), National Defense Resources Preparedness is a continuation of that policy. Only now, the intended targets are not the LDC’s, but are instead, the American people and after Obama declares martial law, food will undoubtedly be used to subjugate the more resistant regions of our country.

The lessons of history clearly demonstrate that dictatorial regimes, whether they be Socialists, Communists, and Marxists will not hesitate to use food as a weapon against their own people in order to solidify power and impose absolute autocratic control. Food can be withheld from the masses by preventing it from being grown and harvested, by contaminating it and rendering it unfit for human consumption or by simply preventing food from being distributed to a targeted population. And there is a third strategy that the government can employ when subjugating a population by withholding food, that would be food which has a long shelf life. And this is exactly what we see, the Federal government is stockpiling survival food with a long shelf life.

The Feds Have Been Preparing for the Coming Food Shortages Since 2008

As far back as 2008, I can find evidence that the government was attempting to stockpile as much survival food as possible. These events prompted prominent brokers and key media members to advise the public to begin storing food as long as six years ago in anticipation of what is about ready to happen.

In 2011, FEMA issued a “Request for information” (RFI), in which they inquired about the availability for 140 million emergency meal kits with a shelf life of 36 months along with blankets. Please read the FEMA document, listed below in the Appendix, and then I defy the reader to not be concerned about the long-standing pattern of this government in acquiring vast amounts of food.

Collision Course with Disaster

One can hope to survive if the government allows the banks to use the MERS mortgage fraud to seize your home. One can hope to survive if this administration seizes your guns. However, food inflation coupled with declining wages is a prescription for disaster. I do not think it is possible to overstate the dangers covered in this article. America needs to prepare to defend themselves. Buy survival food, store it and hide it!


FEMA  Solicitation Number:



Added: Jan 20, 2011 11:54 am

The Federal Emergency Management Agency (FEMA) procures and stores pre-packaged commercial meals to support readiness capability for immediate distribution to disaster  survivors routinely. The purpose of this Request for Information is to identify sources of supply for meals in support of disaster relief efforts based on a catastrophic disaster event within the New Madrid Fault System for a survivor population of 7M to be utilized for the sustainment of life during a 10-day period of operations. FEMA is considering the following specifications (14M meals per day):

- Serving Size – 12 ounce (entree not to exceed 480 calorie count); – Maximum calories – 1200 and/or 1165 per meal; – Protein parameters – 29g-37g kit; – Trans Fat – 0; – Saturated Fat – 13 grams (9 calories per gram); – Total Fat – 47 grams (less than 10% calories); – Maximum sodium – 800-930 mg;

Requested Menus to include snacks (i.e. fruit mix, candy, chocolate/peanut butter squeezers, drink mix, condiments, and utensils). All meals/kits must have 36 months of remaining shelf life upon delivery. Packaging should be environmentally friendly.

- Homestyle Chicken Noodles – Potatoes – Vegetarian Pasta – Green Pepper Steak w/Rice – BBQ sauce w/Beef and diced – Chicken w/Rice and Beans – Chicken Pasta The following questions are put forward to interested parties: 1. Please specify the type of organization responding to the questions (i.e. small business, large business, industry association, etc.) If a small business, please specify all Small Business Administration socioeconomic programs under which your organization qualifies. 2. Does your organization have a product available that meets all the specifications above? If the answer is “Yes:” What is the country of origin? If the answer is “No:” (a) Can your organization produce such a product? (b) What would be the product lead time? (c) What country are the manufacturing plants located in?

3. Can your organization delivery the product to a specified location within a 24 hour period?

4. Please provide an implementation plan for critical delivery orders and delivery surge orders.

5. What states do you already have contracts in place with to provide these types of products?

6. Please detail the type of meals and quantities you can provide for each day following a disaster.

7. Please provide alternatives to the meal specifications that your organization can provide.

8. What type of delivery schedule would your organization recommend for the meals

9. Does your organization have the capabilities to deliver products directly to FEMA’s CONUS Distributions Centers

10. Can your organization track deliveries from point of origin to point of delivery?

11. What is your lead time for delivery once FEMA has placed an order?

Interested parties may also provide brochures, web links, or other literature about their cots available for the specified users. Responses to this RFI are not considered offers and cannot be accepted by the Government to form a binding contract.

Vendors are encouraged to ask the Government questions regarding this potential requirement. Questions must be submitted in writing to Julieann L. Phillips at not later than 2:00PM, 26 January 2011 to be answered. Responses to questions will be provided not later than 2:00PM, 03 February 2011. Request for Information closing date is 03 February 2011.

Contracting Office Address:

500 C Street SW Patriots Plaza — 5th Floor Washington, District of Columbia 20472

Primary Point of Contact.:

Julieann L. Phillips,


Phone: 202-646-3234

Fax: 202.646.1765

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Last week the United States and the European Union completed their sixth round of talks on a transatlantic trade deal, with both sides saying that they are on track for the “ambitious and comprehensive” trade pact that they have been seeking in the shadows for the last two years. Unlike the Trans Pacific Partnership whose progress has been temporarily stalled in the U.S. Congress and which apparently faces stiff resistance from a handful of Asian nations, the Transatlantic Trade and Investment Treaty appears to be set on a smooth course toward consummation.

But who’s actually driving the agenda of this highly secretive trade treaty that threatens to remake the market rules and regulations governing the world’s two biggest markets? According to a report by Corporate Europe Observatory (CEO), the answer is as predictable as it is depressing – corporate lobbyists:

Of the 560 lobby encounters that DG Trade [The European Commission’s Trade Department] held to prepare the negotiations, 520 (92%) were with business lobbyists, while only 26 (4%) were with public interest groups. So, for every encounter with a trade union or consumer group, there were 20 with companies and industry federations.

No sector has lobbied the European Commission more aggressively than the agribusiness sector. Food multinationals, agri-traders and seed producers have had more contacts with the Commission’s trade department (DG Trade) than lobbyists from the pharmaceutical, chemical, financial and car industry combined.

As with any bilateral trade deal, agribusiness behemoths such as Monsanto, Nestlé, Kraft Foods, and Syngenta, who already control a significant chunk of the global food chain, have a great deal to gain (or lose) from the eventual outcome of the negotiations. Here’s a little taster of what’s potentially up for grabs if they get their way:

  • Watered down European food safety standards. Both the pesticide and GMO industry have strongly pushed their agenda via the TTIP negotiations, with the aim of undermining current EU food regulations. Trade tools such as “mutual recognition” and “regulatory co-operation” are likely to lead to an erosion of food safety standards in the long run.
  • An end to the “precautionary principle.” US negotiators on behalf of industry are doing all in their power to undermine the precautionary principle, a cornerstone of EU policymaking, calling it “unscientific.” The precautionary principle is based on the idea that manufacturers need to be able to demonstrate that there is no risk before they can put something on the market. In the US, the opposite is true – you need to be able to prove that something is hazardous before it is taken off the shelf.
  • The end of “buy local” initiatives in the U.S. According to the European Commission, local preference legislation is discriminatory and acts as “localisation barriers to trade.” As such, it should be minimised, if not banned outright.
  • “Harmonised” regulatory standards. Harmonised is a nice-sounding word. After all, it’s the adjectival derivative of the word “harmony” and what could be nicer than a bit of harmony? Well, actually, quite a lot, at least when it comes to regulatory standards set in the exclusive interest of the world’s largest transnational corporations. As CEO warns, harmonisation is just the beginning; regulatory cooperation is the end goal – meaning the ongoing joint review of existing rules or standards that are seen as barriers to trade, and preventing any new ones in the future.

A Who’s Who of Corporate Europe

Taken together, the groups that have seemed to have enjoyed the most influence over EU trade negotiations reads like a who’s who of the Transatlantic Corporatocracy. They include:

  • Telecommunications and IT, including giant corporations such as Nokia and Ericsson as well as industry lobby groups like Digital Europe (whose members include all the big IT names, like Apple, Blackberry, IBM, and Microsoft).
  • Automotive lobbies, representing some of the most powerful car brands (Ford, Daimler, BMW…) and automotive suppliers.
  • Engineering and machinery, including manufacturing behemoths such as Siemens and Alstom as well as industry federations such as Orgalime (lobbying for the mechanical, electrical and metalworking sectors) and the German Engineering Federation VDMA.
  • Chemicals, including CEFIC, the EU’s biggest chemical industry lobby group (representing BASF, Bayer, Dow & Co), its US counterpart ACC (also lobbying for BASF, Bayer, Dow, and others) and the Germany industry federation (VCI).
  • Finance, with lobbying by some of the world’s largest banks and insurers (Morgan Stanley, Allianz, Citigroup…) and powerful financial sector lobby groups such as the Association of German Banks (BDB) and Insurance Europe (Europe’s main insurance lobby).

The list goes on and on, and includes lobbies for audiovisuals, media, healthcare and pharmaceuticals. Conspicuously absent from the meetings were groups representing the economies of Europe’s Southern and Eastern periphery. Indeed, CEO could not find a single lobby encounter between DG Trade and businesses from Greece and large parts of Eastern Europe (Poland, Bulgaria, Hungary, Czech Republic, Slovenia, Estonia, Lithuania, Latvia).

This revelation merely compounds fears that peripheral economies – especially those in the East – will bear the brunt of the social costs of TTIP. With US export interests targeting mainly those sectors where the European periphery has defensive interests – such as agriculture – the opening up of the EU to more transatlantic competition seems destined to exacerbate the divide between the EU’s economic core and its periphery.

A Lobbyist’s Paradise

That lobbies representing the world’s biggest businesses and finance institutions wield such influence over the trade agenda of the US and EU should hardly come as a surprise. Brussels is now home to roughly 3,000 powerful industry lobby structures (and 30,000 individual lobbyists), making the city the second biggest lobby industry in the world, just behind Washington.

And unlike Washington, which strengthened its lobbying laws after the Jack Abramoff scandal of 2005-6, Brussels does not even have a mandatory lobby register. Instead, it has a voluntary one whose members supposedly benefit from greater ease of access to Parliament – but apparently not to the EU’s executive branch, the Commission. To gain access to the Commission all you need is the right business card, as illustrated by the fact that more than 30% (94 out of 269) of the private sector interest groups that have lobbied DG Trade on TTIP are absent from the EU’s Transparency Register. They include companies such as Walmart, Walt Disney, General Motors, France Telecom and Maersk.

Given the acute lack of meaningful accountability, transparency or democratic legitimacy at the heart of its governance institutions, the EU makes the perfect paradise for lobbyists. Granted, in the U.S. lobbies have deeper roots and arguably a more pervasive influence, thanks largely to the fact that virtually all forms of political bribery are now effectively legal. But at least most of the racket is out in the open these days. What’s more, the government still has a few semi-functional democratic checks and balances in place – hence Obama’s difficulty (for now!) in fast-tracking the TPP through congress.


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Don Quijones, freelance writer, translator in Barcelona, Spain. Raging Bull-Shit is his modest attempt to challenge the wishful thinking and scrub away the lathers of soft soap peddled by political and business leaders and their loyal mainstream media.





So much for the “Russia is becoming increasingly isolated” meme that the West would like many to believe. As Russia continues to sign de-dollarization deals and trade agreements with its BRICS allies while pushing ahead with retaliatory actions against the US and Europe, it appears the ‘sanctioned’ friends of Putin are taking matters into their own hands. Billionaire oligarch Gennady Timchenko, among the first to be hit by travel bans and asset freezes by the US, has decided to tear up his Visa and Mastercard, shifting all his credit cards to China’s UnionPay, noting that “in some ways it is more secure than Visa – at least the Americans can’t reach it.”

The Western meme goes something like this…

Russia risks becoming a pariah state if it does not behave properly,” U.K. Foreign Secretary Philip Hammond said on Sky news this week.

However, after various deals with BRICS and Middle East nations, it appears Russia can find plenty of ‘friends’.

And now the sanctioned oligarchs and de-dollarizing… (via ITAR-TASS Google Translate)

Russian businessman Gennady Timchenko, because of the U.S. sanctions imposed against him in March 2014 after the annexation of the Crimea to the Russian Federation, has replaced by Visa and MasterCard for card payment system China Union Pay and wallet with cash.

Timchenko March 20 was included in the U.S. Treasury list of persons with whom the U.S. companies and citizens have the right to maintain the business relationship, including U.S. registered Visa and MasterCard.

Businessman said that stopped using these cards payment systems. “We’ll have to, as before, to carry a purse with cash,” – complained Timchenko, adding that also enjoys card Chinese Union Pay.

“As the sanctions imposed, it immediately issued,” – he said. “Excellent work! And accept card in many places. In some ways more secure than Visa. At least Americans will not reach” – said Timchenko.

Inclusion of a businessman in the U.S. sanctions list created trouble for the payments and for his wife. “Wife Gennady Timchenko had the surgery and could not even pay for it, because it was blocked accounts and cards,” – said Russian President Vladimir Putin on April 17 during his “straight line”, describing the incident as a violation of human rights.

Putin learned about this case, held after the announcement of sanctions meeting of the Russian Geographical Society, co-trustee of which is Timchenko. “Vladimir Putin asked how we feel ourselves to new realities. I said, well, all right, but there are nuances. And he told the story that President then mentioned,” – said the businessman.

*  *  *

While Obama hopes that pressure on the oligarchs will create some civil strife for Putin, we worry that it will merely corner him into survival mode with significant repercussions for the west.

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poverty 2

By TLB Contributor: Dave Hodges.

Recently, a friend asked me what would I recommend his daughter major in as she begins college this fall.  I thought for a moment and answered “welfare”.  The father was quite taken back as I took out my IPAD and forwarded him some of my files which contains our recent economic statistics.

There are 35 states in this country in which it is better to accept welfare than work at an entry level job. Much like crack cocaine or heroin addicts, much of our nation is hopelessly addicted to living in the welfare state. This has real implications for the emotional and even spiritual health of our nation. The most distressing aspect of the present economic conditions we find ourselves mired in, is the fact that we are allowing our young people to have their dreams and their very sense of hope stolen away from them. Fear monger, naysayer, doomsday profit are terms ascribed to people who dare to criticize the existing economic system and speak about the real implications for our people. I dare the most liberal of you to read the following facts, engage in your own fact checking and then not to be able to conclude that the American dream, for most of our people, is dead and buried.

The Average American Is Taking a Beating

It is not just our nation that is taking a beating, our individual financial situations in this country have grown to a crisis level. America is no longer just in a depression. We have entered third world status, a kind of permanent depression, if you will. Yes, we have skyscrapers and modern technology, but only the elite control these resources and the average Americana’ standard of living is in a state of economic free fall.


According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income”. Stunningly, more than 100 million Americans are enrolled in at least one welfare program run by the federal government, not including the massive entitlement programs of Social Security or Medicare. The number of people on food stamps has grown to 47.79 million Americans. In 2008, when Obama first took office, only 32 million Americans were on food stamps. Approximately, 20.2 million Americans spend more than half of their incomes on housing, which represents a 46% increase from 2001. Parents under the age of 30 experience poverty rates consisting of 37 percent. The number of Americans living in poverty has grown to one out of every six US citizens. Can you say “turn out the lights, the party is over.”

It No Longer Pays To Go To Work

Of all the facts that serve to describe the economic chaos, there is one fact that stands out among all others.


Ninety million unemployed Americans are no longer even looking for work. The next time you go into DMV, please realize that you are subsidizing a driver’s license for about a third of the people. You are also paying for their health care, food stamps and shelter. And many of these lower class, poverty-stricken “Americans” are living a higher standard of living than you are and this is by design courtesy of Obama’s policies of Marxian social justice and wealth redistribution. If you are a liberal, you are probably fine with giving away your paycheck to people who will not work. If you are over 40, possess common sense, have an IQ higher than room temperature, then you realize that this is national suicide to keep doing what we are doing. 

The Numbers Do Lie

Wayne Emmerich found that the family breadwinner who works only one week a month at minimum wage makes 92% as much as the breadwinner  grossing $60,000 a year.Emmerich’s stats demonstrate that by working only one week a month  can save a lot of money in child care expense. But topping the list is Medicaid, which is accessible to minimum wage earners and the program has very low deductibles and co-pays. In short, by working only one week a month at a minimum wage job, a minimum wage earner is able to get total medical coverage for next to nothing courtesy of you and me.

The middle class is not as  lucky as the $60,000 breadwinner pays out approximately $12,000 per year in health insurance costs with an addition $4,500 in co-pays. And if anyone in the part-time minimum wage earning family is disabled, SSI pays out an additional $8,088 per year. When one begins to calculate the expenses incurred by a typical breadwinner making $60,000 per year, compared to the part time minimum wage worker, coupled with minimum wage earners tax supported federal bailouts for these freeloaders, the poor have more discretionary income than those who pay the taxes that run the country. And if the part time minimum wage worker is willing to cheat and participate in the underground economy, they will have significantly more discretionary income than their hard-working $60,000 per year counterpart who actually works for a living. In short, if you are a full-time employee making above minimum wage, you paying for your own economic demise. The numbers here suggest that we’d be better off staying home and living off of the labors of what’s left of the middle class.

In short, for most industrious Americans, it no longer pays to go to work. This system is catapulting our country towards an economic Armageddon. Welfare pays and pays well, until the government turns off the faucet. Then we will have a revolution inspired by the 146 million Americans who can longer support themselves.

What do you think Obama’s “Myra” account is for? It is about handing over all 401K’s to the federal government. Why are banks installing capital controls which are making it increasingly difficult get your money out of the banks? What is the MERS mortgage fraud complete with robo-signers about? It is all about stealing any and every asset and opportunity in this country. The present policies of the Obama administration are creating a slave class of welfare-dependent junkies who have no hope, no pride, no internal locus of control m, no work ethic and no future.

Take a look at the following economic chart created by the Cato Institute. There are , in America, 35 states who pay welfare recipients better than retail clerks, factory workers and fast food employees. This is a world turned upside down and only the twisted communist-based economic policies of this present administration would think that this is acceptable. And before you welfare recipients fire up your computer to write to me and tell me how evil I am for printing this, I would remind you that what the government can give you, the government can take away from you.

My wife started out her professional career working at McDonalds serving hamburgers at the age of 16.  Twenty years later and after several promotions, she was in charge of all of the corporate owned McDonalds in Arizona. On a national level, she ran the food concessions for the NBA All-Star weekend as well as the NFL Superbowl held in Phoenix. Under the present economic climate and policies, what would have been her motivation to work her way to the top before retiring? Today, our country has robbed its citizens of its most precious resource, hope!



Our Children Have a Bleak Economic Future

If there is a compelling reason to leave America, it would be to provide our children with a future which is much brighter than the future that they will be burdened with in the United States.

Even if there are not any severe political/military disruptions in America’s immediate future, most of our children have a dismal future and the numbers do not lie.

At this point in time, about half of all recent college graduates are working at jobs that do not even require a college degree. The number of Americans in the 16 to 29 year old age bracket with a job declined by 18 percent between 2000 and 2010. Incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation since the year 2000. In the United States today, 317,000 waiters and waitresses have college degrees. One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents. Overall, approximately 25 million American adults are living with their parents according to Time Magazine.

America is no longer the land of opportunity as the United States is not even in the top ten. In fact, the United States only ranks 20th in terms of overall gross pay! Yet, what we do have is a plethora of young people hopelessly mired in student loan debt when they graduate and a federal government that is more than happy to garnish their wages and, in some cases, even SWAT team them for nonpayment.

Every business professor should be required to teach these statistics to their freshman classes in college. There are some, but very few good jobs left in America. Why? There is little money left for investment as the banksters stole most of our liquid capital during the bailouts and these bailouts are still continuing today. This negative assessment is also true because 25 years ago, we committed national suicide when we enacted the first of several free trade agreements which led to the mass exodus of jobs to overseas cheap labor markets. The United States people have been economically raped to the point that the only thing left to steal are homes, bank accounts and retirement funds, and that is beginning to happen as well (e.g. MF Global). If a professor was truly going to be honest with their students, they would tell them “Get up out of your seats, go get your passports, apply for a Visa and move to Norway, Finland, Sweden, Switzerland, Germany, etc.)”. But no, we keep selling our young people on the notion that there is still something called the American dream! Actually, there are some good  job opportunities left in America, but only a small percentage will realize their professional and economic dreams under this present set of conditions.

Please allow me to save the worst for last. Our national deficit is $17 trillion dollars. Our unfunded liabilities are $242 trillions dollars (e.g. Social Security, Medicare, etc.). Our credit swap derivatives, Ponzi scheme debt which was passed onto the American people during the bailouts is $1.5 quadrillion dollars. The entire estimate wealth of the planet is $96 trillion dollars at the high end of the estimate. Our government collects about $2 trillion dollars in taxes each year and the economy is contracting. Where is the logic in the hope that we can overcome these financial obstacles with simple austerity? Our descendants will be paying off these debts, while mired in economic slavery well into the 30th century.

I have a question for all liberals who are still drinking from the Obama Kool-Aid; do you really think the banksters are ever going to allow the people to repudiate these debts without a war or the implementation of some  extreme form of martial law crackdown against resistance to the present status quo?

Consistently, this column has proven its dedication to reform and change through nonviolent means. However, the small group of central bankers who have enslaved nearly every country on this planet with insurmountable debt will never let go of this control without a fight. This is why I am advocating for not participating in their bankster controlled institutions (e.g. Bank of America, WalMart, etc.). However, at the end of the day, the obvious bankster counter would be the well known, much anticipated practice of accepting the mark and you will not be able to buy and sell without it. Ultimately, at its root, this is a spiritual war between good and evil.

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Corporatocracy 1

By Don Quijones

Quietly, subtly, almost imperceptibly, the rules governing global trade and financial markets are changing. It is not happening by accident, but by wilful design. Despite the enormous impact it will have on all our lives, the public is not being consulted on any aspects of the process. Most people are not even aware it is happening.

The main driver of this change are the bilateral and multilateral trade and investment treaties being negotiated in complete secrecy and behind closed doors between corporate lobbyists, free trade activists and our own elected “representatives” (a term I use in the loosest possible sense, especially given the context). The ultimate goal of these treaties is to reconfigure the legal apparatus and superstructures that govern national, regional and global trade and business – for the primary, if not exclusive, benefit of the world’s largest multinational corporations.

Corporations have long been powerful economic and political entities, but in recent decades some have grown to dwarf even middling-sized national economies. According to a ranking published by Global Trends, 58 percent of the world’s biggest 150 economic entities in 2012 were corporations. They include oil, natural gas, and mining majors, banks and insurance firms, telecommunications giants, supermarket behemoths, car manufacturers, and pharmaceutical companies.

Changing the Law

Right now, the representatives of many of these firms are engaged in late-stage negotiations with the U.S. and European political leaders that would make it financially calamitous for a nation-state to take any actions against the interest of corporations. If passed — and at this rate, it almost certainly will be — it will be the biggest bilateral trade deal in the history of mankind.

What’s up for grabs in the innocuously named “Transatlantic Trade and Investment Partnership” (TTIP) is nothing short of the control and ownership of virtually every economic sector and public service in both Europe and the U.S. – with the exception, at the insistence of the U.S. government, of the financial services industry. Unbeknownst to almost all Europeans, the European Commission has shown a keen interest in opening up all public services to foreign corporate ownership, from health care to education, pensions to water provision.

Wikileaks also revealed that a group of 50 nations, fronting themselves as “Really Good Friends of Services” (who said lobbyists don’t have a sense of humour?), is secretly negotiating the Trade in Services Agreement (TISA). The countries taking part in negotiations include the U.S., the member nations of the EU (who are naturally leading the proceedings), and U.S.-aligned nations of Australia, Canada, Chile, Costa Rica, Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Panama, Peru, South Korea, and Switzerland. Conspicuously absent from the list are the five BRICS nations Brazil, Russia, India, China, and South Africa and Latin American members of Mercosur.

Based on the draft copy recently released by Wikileaks, the treaty seeks to (among many other things):

  • “Lock in” the privatisations of services – even in cases where private service delivery has failed – meaning governments can never return water, energy, health, education or other services to public hands.
  • Restrict a government’s right to regulate stronger standards in the public’s interest. For example, it will affect environmental regulations, licensing of health facilities and laboratories, waste disposal centres, power plants, school and university accreditation and broadcast licenses.
  • Specifically limit the ability of governments to regulate the financial services industry at exactly the time when the global economy is still recovering from a crisis caused by financial deregulation.

The trade treaties are not just about rewriting laws; they are also about enforcing them. As the author of Debt Generation, David Malone, explained in a recent talk on bilateral and multilateral trade agreements (essential viewing for anyone interested in the subject), what gives trade treaties such as TTIP and TISA their “claws and teeth” is the inclusion of an innocuous-sounding provision called the “investor-state dispute settlement.” This effectively allows private companies to sue entire nations if they feel that a law lost them money on their investment.

No Trial, No Judge, No Jury

Say, for example, a newly elected government decides — not unreasonably — that the involvement of price-gouging U.S. firms in the nation’s health service is not such a good idea after all. Each and every one of those U.S. firms will now be able to launch expensive legal battles, potentially for billions of pounds, in the name of foregone profits.

The case would not be heard in a court of law, under the scrutiny of a judge and jury, but rather in front of arbitration panels made up of three professional arbitrators — one representing the company, one representing the country and the other chosen by the first two to sit as president of the panel. None of these arbitrators are trained judges; they are private individuals often representing some of the biggest international corporate law firms, mostly from the U.S. and Europe.

The secrecy of the arbitration process is, in Malone’s words, “mind-blowing.” No citizen of any affected country can demand leverage or accountability over the proceedings. The arbitrators meet behind closed doors and do not even need to inform the people of a country that their government has been taken to arbitration.

Advocates of the system claim that international arbitration is needed because national courts are not sufficiently neutral. While there may be some truth in that, investment arbitrators themselves are hardly neutral guardians, as Corporate Europe reports:

Arbitrators, to a far greater degree than judges, have a financial and professional stake in the system. They earn handsome rewards for their services. Unlike judges, there is no flat salary, no cap on financial remuneration.

Arbitrators’ fees can range from $375 to $700 per hour depending on where the arbitration takes place. How much an arbitrator earns per case will depend on the case’s length and complexity, but for a $100 million dispute, arbitrators could earn on average up to $350,000. It can be far more. The presiding arbitrator in the case between Chevron and Texaco v. Ecuador, received $939,000…

Evidence shows that many of the arbitrators enjoy close links with the corporate world and share businesses’ viewpoint in relation to the importance of protecting investors’ profits. Given the one-sided nature of the system, where only investors can sue and only states are sued, a pro-business outlook could be interpreted as a strategic choice for an ambitious investment lawyer keen to make a lucrative living.

Revolving Doors, Conflicts of Interests

The arbitration industry, very much like our political systems, is rife with conflicts of interest and revolving doors. To wit, from the Transnational Institute:

  • Arbitrators tend to defend private investor rights above public interest, revealing an inherent pro-corporate bias. Several prominent arbitrators have been members of the board of major multinational corporations, including those which have filed cases against developing nations.
  • Law firms with specialised arbitration departments seek out every opportunity to sue countries – encouraging lawsuits against governments in crisis, most recently Greece and Libya, and promoting use of multiple investment treaties to secure the best advantages for corporations… In short, investment lawyers have become the new international ‘ambulance chasers’, in a similar way to lawyers who chase hospital wagons to the emergency room in search for legal clients.
  • Arbitration law firms as well as elite arbitrators have used positions of influence to actively lobby against any reforms to the international investment regime, notably in the US and the EU. Their actions, backed by corporations, succeeded in preventing changes that would enhance government’s policy space to regulate in the US investment treaties that had been proposed by US President Barack Obama when he came to office.

The rise of investor-state dispute settlements and the broad application of arbitration procedures are the ultimate victory in the global corporatocracy’s decades-long coup d’état. If allowed to take universal effect, the system will impose above you, me, and our governments a rigid framework of international corporate law designed to exclusively protect the interests of corporations, relieving them of all financial risk and social and environmental responsibility. From then on, every investment they make will effectively be backstopped by our governments (and by extension, you and me); it will be too-big-to-fail writ on an unimaginable scale.

And yet, in the most perverse of ironies, it is a system that appears to be almost universally endorsed by our political leaders. It is an irony that was not lost on the Spanish arbitrator Juan Fernandez-Armesto, who had the following to say:

When I wake up at night and think about arbitration, it never ceases to amaze me that sovereign states have agreed to investment arbitration at all […]. Three private individuals are entrusted with the power to review, without any restriction or appeal procedure, all actions of the government, all decisions of the courts, and all laws and regulations emanating from parliament.

As I warned in early November 2013, the global corporatocracy is almost fully operational. The intentions of those negotiating the multiple trade treaties are now crystal clear: to place complete power and control over our economies in the hands of the largest global corporations, many of which bear the lion’s share of responsibility for the economic and environmental mess we’re already in.

In the meantime, the clock continues to tick down. At any moment, a few quiet strokes of a pen behind the tightly closed doors of a luxury conference room could usher in a new age of corporate domination. With it will come a new kind of dystopia, bearing an uncanny likeness to the inverted totalitarianism foreseen by Sheldon Wolin. By Don Quijones, Raging Bull-Shit

Also by Don Quijones: The establishment, both inside and outside Spain, is alarmed at the scale and intensity of public anger in the country. Read…..  Spain’s Musical Thrones: Desperate Move by a Desperate Regime

Don Quijones, freelance writer and translator in Barcelona, Spain. Raging Bull-Shit is his modest attempt to challenge the wishful thinking and scrub away the lathers of soft soap peddled by our political and business leaders and their loyal mainstream media.

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See featured article and read comments here:



By: Bonnie Kristian,


Editorial comment: My take on this is that the government and banks are getting so paranoid about more and more people taking their money out of banks, that the law discussed here has been reincarnated to basically bully people out of draining their accounts and opting for safer solutions. What do you think?

Lucille Femine, Executive assistant for the TLB project

Here’s the article:

Suppose you decide to buy a used car from a guy on Craigslist. You’ve found the car you want, and you’re going to buy it outright. It’s only $4,000, and you decide to pay cash because it will be more convenient for both of you. So, on the day of the sale, you get the money and go to purchase the car.

On the way there, you roll through a stop sign. Bad luck—a cop saw you. He pulls you over, and while he’s writing up a ticket, catches a glimpse of your bank envelope in the passenger seat. Suddenly, he asks to search your car. You don’t have anything to hide, so what’s the harm, right?

The next thing you know, the officer is thumbing through your twenties. He grills you on why you’re carrying this much cash. It’s suspicious, he says. A check would have been easier if you’re really just buying a car.

“I’m going to have to confiscate this,” he finally concludes. You immediately protest: “On what charge? Am I being arrested? Can I call my lawyer?”

Nope. You’re not being arrested, and you can’t call your lawyer. In fact, you’re not being charged with any criminal activity.

This is called civil asset forfeiture—and you’re never going to see a dime of that money again.

“Civil asset forfeiture” sounds like some obscure legal thing. It’s not. In fact, it’s probably the biggest threat to private property you’ve never even heard of.

Here’s how it works: Civil asset forfeiture is basically a law which allows a police officer who finds you “suspicious” to just take your stuff.

Once your property has been confiscated, the burden of proof is on you, not the police, to show that you didn’t get it from any criminal activity. Even if you personally are cleared of all charges, that may not matter. As the Philadelphia City Paper reports, “Technically, it’s the property—not its owner—that’s being accused of criminality, which means the property can be subject to forfeiture whether or not its owner is ever convicted of a crime.”

In other words, they don’t have to charge you. They don’t have to present any evidence of illegal activity. In fact, you have no right to a lawyer and won’t get a day in court. In some jurisdictions, you actually have to pay thousands of dollars just to be able to contest the seizure.

And guess what? The police conveniently happen to consider large amounts of cash very suspicious indeed—but not too suspicious to dump it right into their own department coffers.

And we’re talking big money. “Between 2004 and 2009, Philadelphia collected some $36 million via civil forfeiture,” mainly from young, black men. Long Island police took in $31 million in a single year. The State of Virginia seized assets and cash worth more than $18 million in 2013 alone. In the same year, Michigan’s civil asset forfeiture profits topped $16 million, and the State of Texas took a whopping $106 million from its citizens.

For many, the forfeitures’ effects can be devastating. If our car buying hypothetical is difficult to believe, let me assure you that it’s not a creation of my imagination. It’s pretty much exactly what happened to Jennifer Boatright, a waitress from Texas who was buying a used car using cash she’d presumably saved up from tips.

Even though no evidence of drugs were found in her car, Boatright was told by police that she’d have to forfeit the cash she was carrying unless she wanted to be charged with money laundering and—even worse—see her two young children taken away and put in foster care. As any good mother would when faced with this kind of unthinkable extortion, she signed away her savings to keep her kids.

Stories like Boatright’s are sad and numerous:

When this “policing for profit” is legal, it gives police all the wrong incentives during their interactions with citizens.

And let’s be honest: “civil asset forfeiture” is too kind a term. This is theft.

bonnie kristian
Bonnie Kristian is a writer, editor and a Communications Consultant for Young Americans for Liberty. You can find more of her work at or follow her on Twitter @bonniekristian

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By: Christina Sarich

Monetary conspiracy? Global trade reset? Cabal inspired one world currency? What exactly is the World Bank and IMF up to?

A World Bank report just issued said that China’s economy was about to dwarf the US economy, and World Bank’s lawyer, Karen Hudes, who supposedly never left, but became a ‘whistleblower’ has been all over Youtube talking about high financial crimes and corruption, yet she was recently in Tokyo and sent messages to 70 different world leaders saying that Japan would supply the gold needed to create a new financial system, but many have denied this claim, and state that Hudes is nothing more than a misinformationist, spreading the lies of an infighting, and crumbling central banking system.

Others say copious gold rests in Indonesia, and some say it has all been stolen by the Cabal. Its anyone’s guess, but why in the world is a spokesperson for the World Bank, an institution known for being replete with liars, suddenly ‘truth telling.’ Just some of their tactics can be seen in the report titled “Lies, Damned Lies, and Statistics: The World Bank/ECA Structural Adjustment Controversy” and this report which discuses the World Bank lie about global poverty levels.

To add to the intrigue, the BRICS nations just met for their sixth summit to discuss ways to support emerging world economies, and essentially rid themselves of the their slave-ropes to the Cabal’s petrodollar.

“The Sixth Summit takes place at a crucial juncture, as the international community assesses how to address the challenges of strong economic recovery from the global financial crises, sustainable development, including climate change, while also formulating the post-2015 Development Agenda.”

The International Monetary Fund’s (IMF) Christina LaGarde also recently talked to the world press in a strange and cryptic way, saying that the ‘reset’ and the ‘new monetary system’ or the ‘structural reforms,’ i.e. ‘final reset’ were imminent, giving morse-code like numbers and dates for ‘those in the know’ to try to figure out. July 20 is supposedly the big reveal, but there have been other dates rumored in the recent past.

Interestingly, Swiss gold fund manager, Egon von Greyerz has said that the IMF’s rosy evaluation of the U.S. and U.K. economies is another big lie:

The other artificially strong sector in the U.K. is the financial industry in the City of London.  Worldwide money printing plus the rigging of markets have greatly benefitted the City of London and U.K. tax revenues.  But both the housing market and the financial sector in the U.K. are major bubbles that will eventually burst.

What about the other strong economy according to the IMF which is the U.S.?  This is a country that has increased debt from $8 trillion to $17 trillion in the last 8 years, and whose central bank has printed more than $3 trillion during the same 8-year period.  This is also a country that has been running budget and current account deficits for decades. 

Meanwhile, Morgan Stanley, one of the biggest ‘big banks’ profits for the second quarter of this year blossomed a healthy 131%. (Other known Cabal institutions – Citigroup, JP Morgan Chase, and Bank of America all experienced a downturn.)

Working wages have been falling in the US for over 50 years, Wells Fargo says housing is down 67% and while the World Bank and IMF can paint as rosy a picture as they like, it costs nothing for the central banks to print funny money on worthless paper.

As things heat up in Russia, the Ukraine, and in the Middle East with the CIA/NATO-funded ISIS situation, the IMF has also agreed to provide $18 million to the Ukraine – it’s target? To censure Russia who has also expressed interest in disposing of the petro-dollar for good.

The war machine is the only thing left propping up the Central Bank, and the ‘baby-banks’ that feed off its ill-gotten generosity. A world war is likely the only way it can keep itself in play, but fortunately, people are wise to the false flag events and scare mongering. Even with Hollywood’s support of this putrid institution, it will crumble. Few believe the World Bank and IMF lies being told all over the world.

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