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Good morning, worker drones: This Week In Mayhem
- Afghanistan
- Bank of America
- Bank of America
- Bank of New York
- Bond
- Caspian Sea
- Corruption
- Deutsche Bank
- Fail
- FBI
- Federal Deposit Insurance Corporation
- Iran
- Japan
- Karl Denninger
- Kool-Aid
- Obama Administration
- Racketeering
- Reality
- Reuters
- Sheila Bair
- The Clearing House Association
- Turkey
- Turkmenistan
- United Kingdom
- Yen
Good morning, worker drones: This Week in Mayhem
by Project Mayhem
Project Mayhem reviews the most important financial and geopolitical news of the past week and takes a look at the week ahead.
LAST WEEK IN MAYHEM
Economic:
1. Racketeering 101: Bailed Out Banks Threaten Systemic Collapse If Fed Discloses Information.
And so the guns come out blazing. The Clearing House Association,
another name for all the banks that were bailed out over the past year
with the generous contributions from all of you, dear taxpayers, are
now threatening with another instance of complete
systemic collapse if Bloomberg's lawsuit is allowed to proceed
unchallenged, let alone if any of the "Audit The Fed" measures are
actually implemented.
As a reminder, The Clearing House
Association consists of ABN Amro, Bank Of America, The Bank Of New
York, Deutsche Bank, HSBC, JP Morgan Chase, US Bank and Wells Fargo
2. FDIC releases Q2 report. FDIC loses more money in Q2 -- DIF continues to become depleted. FDIC is probably broke now despite the vapid assurances of Sheila Bair. We will know 55 days after the end of Q3.
This is NOT an exponential curve -- Sheila Bair promises America ice cream and puppy dogs.
http://www.zerohedge.com/article/fdic-q2-2009-report-released
3. Japan's DPJ sweeps to power. Campaign Promise included a boycott of treasuries not denominated in Yen. Will they follow through, or was this hot air?
We obtained this exclusive photograph of a USTbond issued in Yen.
http://www.zerohedge.com/article/dpj-set-win-japan-election-may-issue-seppuku-bonds
4. The Denninger-Jim Willie fued escalates! We suggest a ZeroHege mediated poker match to settle this dispute.
"While I disagree with pretty much everything Jim Willie writes when it comes to metals and such, every squirrel finds a nut once in a while"
-Karl Denninger, 08/21/2009
"By the way, Karl Denninger needs a reality check. He does great
forensic analysis, but has not produced a single original thought or
global hypothesis in memory"
-Jim Willie, 08/27/2009
"Global hypothesis? You mean global conspiracy theory,
right? Why bother with those unless you're trying to drive someone
toward a paid "newsletter" in which one can push some "alternative"
that relies on something that "will happen tomorrow" - and when it
doesn't, well, we just got the day wrong, but it will happen tomorrow!"
-Karl Denninger, 08/29/2009
Bring on the lulz!!\ But seriously we read you both.
http://market-ticker.denninger.net/archives/1387-The-Problem-With-Hucksters.html
http://financialsense.com/fsu/editorials/willie/2009/0827.html
Geopolitical:
1. FBI whistleblower Sibel Edmonds exposes vast corruption in newly-released videotaped deposition. This includes the sale of US nuclear secrets to criminal and intelligence elements in Turkey and Pakistan. For those curious of those responsible, this included many members of Congress and the Executive Branch. One key figure was Marc Grossman, number 2 at State Department. Another was former House Speaker Dennis Hastert, who Edmonds accused of taking bribes. Deep corruption all around. ZeroHedge is following this, U.S. Congress Critters. Article coming once we finish analyzing the deposition.
“From my opinion, if I'm some of the current
members of Congress, I'd be very very worried about the information
that's going to come out of this. There are current members of Congress
that she has implicated in bribery, espionage. It's not good. It's
crazy, it's absolutely crazy. For people in power situations in the
United States, who know about this information, if they don't take
action against it, in my opinion, it's negligence.”
http://www.nowpublic.com/world/sibel-edmonds-deposition-deep-corruption-beneath-surface
http://video.brownpublishing.com/video/newsdemocrat/sibel/
2. DHS claims vast authority to seize electronic equipment without a warrant or suspicion at the borders, in latest documents published under the Obama administration. DHS: Expect your computer to be seized without suspicion.
"Clarifying the existing law, both sets of guidelines reiterated the
department's policy created during the previous administration: Agents
may seize, detain, and/or retain individuals' PCs and media without
having reason to suspect that those people or those machines and
devices are connected with a crime."
http://www.betanews.com/article/DHS-Expect-your-computer-to-be-seized-without-suspicion/1251488759
3. Missing ship Arctic Sea was likely carrying weapons systems for sale according to Russian general. Some may remember the 'missing ship' story. There was much disinformation on this story and still is. The most likely explanation is that the ship was carrying weapons systems. What weapons -- and their destination -- is the subject of debate. A senior Russian Navy general has claimed these were anti-air and anti-ship weapons en route to Iran. This story, however, does not make much sense unless the weapons were stolen by criminal elements within the Russian government. Indeed this is precisely the claim of the Russian naval general.
The word on the street is that these were stolen S-300 or X-25 missile systems bound for Iran, a country in which Russia has substantial economic interests. Why they were shipped through the Mediterranean is the part that does not make sense -- as it seems it would have been much simpler to smuggle these weapons across the Caspian Sea or via Turkmenistan if they were destined for Iran. Perhaps the destination was Syria, as Russia is building a deep-water port in Tartus. The other possibility is that these were simply stolen weapons and were destined for the black market. Project Mayhem suspects the latter. We will continue to follow this story if there are new developments.
http://kp.ru/daily/24342.4/532424/
THIS WEEK IN MAYHEM
Economic:
1. We are entering September as of Tuesday... The consensus at Zero Hedge is either the bond market or the stock market is wrong. Which is it?
http://www.zerohedge.com/article/long-term-treasury-yields-someone-going-be-wrong
2. Chinese equities kick off the week down 6%. Shall we make bets on this weeks equity performance? Or has Skynet become self-aware?
http://www.bloomberg.com/apps/news?pid=20601100&sid=adSivGAJoKH8
2. ISM coming up on Tuesday. Will this report be a big fat fail whale? Or are we back to drinking government statistical Kool-Aid?
This Kool-Aid has Zerohedge brand vodka in it!
Geopolitical
1. Georgia naval blockade situation silently escalates without mention from the
MSM. Russia says it will protect vessels in Abkazia from Georgia.
Georgia threatens to continue a naval blockade and will regard actions
of Russian coast guard as acts of piracy. Where is the lapdog media?
Russian FSB to protect vessels in water area of Abkhazia from Georgia
The
coast guard of the Federal Security Service (FSB) of the Russian
Federation will help the border guards of Georgia’s breakaway republic
of Abkhazia to provide safety of the vessels coming into territorial
waters of Abkhazia, online paper Lenta.ru reports. The Russian and
Abkhazian boats will be protected from detention by the Georgian border
guards, according to the deputy head of the FSB of Russia Border Guard
Service Yevgeny Inchin, news agency RIA Novosti reports.
According
to Inchin, joint actions are stipulated by the agreement between the
Russian Federation and Abkhazia on border protection. Russian side
names preparation for the Olympic games in Sochi as one of the reasons
for such measures, Lenta.ru marks. Inchin has assured that
inviolability of vessels will be provided "effectively and
productively", online paper says.
The Georgian Minister of
Reintegration Affairs Temur Yakobashvili has already commented on
Inchin’s statement, saying that Tbilisi will regard actions of the
Russian coast guard as piracy, Lenta.ru adds.
http://www.axisglobe.com/article.asp?article=1895
2. Af-Pak continues to destabilize. This is another spot to watch. No surprise here considering Zbigniew Brzezinski is behind the scenes, no doubt interested in fracturing Af-pak into a series of micro-states. Predator drones firing Hellfire missiles into weddings have a tendency to cause such instability. Well , whatever is best for the banks and oil companies!
The NATO tankers got exploded. Who could it be? Osama Bin Deceased did it from his cave while hooked up to a dialysis machine.
16 dead in Pakistan blast at Police Training Session
http://www.philly.com/inquirer/world_us/20090831_16_dead_in_Pakistan_blast.html
Nato tankers blown up in Pakistan
http://news.bbc.co.uk/2/hi/south_asia/8230030.stm
August deadliest month for US in Afghanistan
http://www.google.com/hostednews/ap/article/ALeqM5hvWEqwq3CrRvaQCmt21MfoYhjZJQD9AC3PMO0
U.S. commander says Afghanistan situation "serious"
http://www.reuters.com/article/politicsNews/idUSTRE57U22C20090831
Intimidation and Fraud Observed in Afghan Election
http://www.nytimes.com/2009/08/23/world/asia/23afghan.html?em
3. Watch the situation in Japan this week for clues on foreign policy, in particular future USTbond purchases.
"If you don't claim your humanity you will become a statistic."
»
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It is amazing how denial and desensitization are so interlinked.
The Ministry of Truth has just congratulated the people on having their chocolate ration increased from 200gr/week to 100gr/week!
Indeed
lol
Zerohedge brand vodka, great idea.
I was thinking the same thing.
Great overview....Japan is important just now as the new govt is inexperienced and the bench for cabinet is thin.
The key to the market now is in the ted spread. NO action there, no action in the stockmarket to worry about just now.
Jim Wilie is on a different planet while Karl lives in reality. Wilie ranted about a bank holiday after the FDIC released its most recent report. Did that happen? NO. I just read part of a Hat Trick letter a friend sent me from the beginning of August. Wilie at best, infrequently cites any source. Its all "friend of a friend" or "some source in the military" blah-blah-blah. He is nothing but a inflationist school gold bug who is pushing gold.
We see thru you here, buddy.
Thanks PM for the good article.
For those who don't see it, here is what was sent to me about JW's "news" letter. I post ONLY b/c my fellow readers can see what I mean and we can all use a good cuckle.
Breaking Jim Willie on September/October
The following is an excerpt from the third part of the August edition of the Hat Trick Letter, copyright by Jim Willie CB. www.goldenjackass.com
These are several snips I have made, so flow and punctuation may not be perfect:
Early snips
The US bankers have put together a nasty cocktail. They expect to force foreign creditors to drink it, but those who developed on Wall Street and the US government ministries will have to drink it themselves." - Petr from Germany (a banker und subscriber).
A deflation cocktail backfire is in the works. The preoccupation with falling prices of products and assets has distracted attention from the colossal monetary inflation and credit creation in USTreasury debt. A declining money velocity again ignores the bank sector. Prepare for price inflation.
John williams provides a theory on the path to hyper-inflation from falling demand for money. A pictorial sequence tells the story sure to lead to powerful political pressures. The call to produce price inflation will become a loud scream soon. Pressure is relentless to turn on the inflation spigot full blast. The process is well along without much further push. Apparent stability precedes hyper-inflation, as floodgates are gradually opened over time, actively or passively.
?$$$ MARTIN ARMSTRONG IS A FINANCIAL MARKET ANALYST, JAILED FOR KNOWING TOO MUCH ABOUT INNER WORKING WALL STREET CORRUPTION. HE IS PRESCIENT, AND GIVES FURTHER WARNINGS.
$$$ The latest analysis by Martin Armstrong has found its way from his prison bars. He cannot be totally silenced. He warns in an August 7th release entitled "Cycles & Pattern Projections" of a consolidation stage soon to end that lifts the gold price to triple its current level, first from a global monetary crisis, then a follow through due to the arrival of price inflation.
Armstrong wrote, "Gold continues to consolidate below $1000. This is a critical sign that confidence is swinging away from the government. Just as China is concerned for the dollar, they speak the truth, unlike the BS from Washington. They are speaking from self-interest and so is Washington. China is concerned about its holding in dollars and has been reducing the maturity of their holdings. The Washington crowd has been speaking out of their self-interest insofar as they do not want to face reality. They keep telling everyone 'don't worry-be happy.' It appears that gold is building a base from which a rally up to $2500 to $3000 area is very likely. There is even a possible rise to the $5000 level, but that is the most extreme projection. This is suggesting that confidence in the dollar is declining. This is not the classic inflation nonsense, but a collapse in currency value consequence." See the Scribd article (CLICK HERE).
A CLIMAX OF EVENTS IS IN PROGRESS, AS SIGNALS MOUNT, AND CLIMAX SEEMS NIGH. $$$ A close friend of a close friend has numerous connected contacts within the power structure. He passed along a note that caught my attention, when not many personal notes do so. It follows with his descriptions, and only minor edits. His points will be summarized without quote, with much gratitude for his shared message.
Several key events are lined up simultaneously, enough to warrant greater perceived likelihood of at least a declaration of state of emergency in the United States. It could result easily in martial law.
He pointed out astutely that the Chinese stock market is under pressure, so the Chinese might have political cover (an excuse) to call some money home and withhold on some credit supply to the hapless flailing out of control Americans. They might deliver a 'Ripple Effect' passively or a 'Direct Message' more actively, as they call money home, or as he says remove chips from the tables.
He cited the 'Investment Banker' scuffle taking place in Europe with Porsche/VW, but that seems minor.
The endless skirmishes between the crude oil hedge versus the beleaguered USDollar speaks volumes when clearly demand has fallen and supply has risen. The smart money is hedging against the US$ clearly. The effects of both the criminally administered TARP Funds and the mindlessly vacant Stimulus Plan have run their course, unable to give any further assist to the USDollar.
His USMilitary intell contacts have suddenly turned silent at a time when the Pentagon has let it be known of a need for 400 thousand troops to keep the peace inside the United States. Rumors fly that the Pentagon want all 'ready by the end of August' without anything to refute.
In the USMilitary command for Afghanistan, a major change has begun. And in Iraq, an Army General has said 'all significant troops out by the end of August and back home in America.' Rumors also report how another False Flag Attack is en route, in the planning stage. This attack is mentioned by a certain source as aimed for WashingtonDC on October 19th.
A sage contact who forewarned of the September 2008 sequence of failures and crisis almost one year ago sent a message of update this weekend. He said, "We are in the middle of the breakdown. Just watch the US budget disaster that is killing all and everything. Things are coming apart at the seams since the entire global banking system is breaking down. Trade is breaking down as well due to banks being in shock freeze. This shock freeze will not go away, it will destroy the system. Different systems will soon spring up to facilitate trade. We shall see the tail end of the financial economic political hurricane touch down sometime at end of August and early September with an never ending downward spiral that will destroy assets on a grand scale. I still expect the breakdown to be in the time frame we have been discussing. The pump and dump market manipulations by the BOYZ are fascinating to witness. Its like watching a head kill shot in slow motion. Only real hard assets will survive, Gold, Silver and a basket of essential commodities grouped around this precious metal core."
Notice the anticipated timeframe, an anniversary of the crisis last year. My response to him was brief and simple, but to the point. "I notice tectonic shifts in the currencies in the last two weeks. The USDollar is stuck in a tight range, soon to exit in unstable fashion. The British Pound Sterling moves up and down with much volatility. More US banks are falling. Big ones like Colonial and Guaranty just died. Soon much bigger ones will fail. The types of credit losses are soon to broaden into Commercial and Prime Option ARM mortgages. Banks are still in a nightmarish situation, unprepared, while clown leaders proclaim an end to the storm."
HUGE SCARY FOREX DISCOUNT IS BEING USED RIGHT NOW BY MARKET INTERMEDIARIES FOR CASH CURRENCY TRANSACTIONS. THIS IS A CLEAR LOUD PREVIEW OF FUTURE US$ AND BRITISH POUND STERLING DEVALUATION. THE DISCOUNTS PROBABLY OCCUR ON GRAND ACQUISITIONS, SPENDING US & UK DEBT, IN CONVERSION TO HARD ASSETS.
$$$ Last week, my email INBOX was abuzz. A query came from me to a reliable regular banker contact with connections to Europe, Asia, and the Persian Gulf. My query specifically commented on the frenetic British Pound Sterling, which has risen or fallen by almost 200 basis points on a several days in the last week or more. It shows great instability, my point, likely a prelude such as any initial tremors before a big earthquake. What came back was a shock, as news of actual liquidation activity have come his way.
***He wrote, "Really substantial transactions in buying USDollar are done at a 38% discount, and British Pound Sterling are done at a 42% discount. The big off market transaction guys are already factoring in the coming devaluation. Hundreds of billions are involved, including outright cash transactions where those discounts are being applied." ***WOW!! He had mentioned just days before in another exchange that a big event comes on the near horizon having to do with angry USGovt creditors. They have run out of patience. They feel the USGovt pays no heed to their concerns, in displayed arrogance.
The global banker said a coordinated group of foreign creditors are planning to sell several hundred billion in USTreasurys in the months of September and October. If executed, then a US bank holiday is assured, and a significant devaluation of the USDollar comes. We might even see the first hint of a temporary USTreasury default.
In the same line of exchanged communications, that also involved a couple other fellows who are respected, questions came as to when this charade would end. The US$ had bounced yet again on vaporous news and heavy interventions. My comment was simple: GOLD WILL RISE AND THE USDOLLAR WILL FALL, IN A POWERFUL WAY, WHEN CHINA DICTATES IT, WHEN CHINA IS READY, WHEN CHINA DECIDES IT. My connected banker contact agreed totally. Furthermore, Chinese agency organizations have been gathering considerable information from the Gold Anti-Trust Action committee, probably to make the case that the USDollar is not legitimate even on US Constitutional terms. When they slam the US$, they will likely make the case for an illegitimate USDollar operating as the currency by a financial sector ripe with corruption and fraud.
Jim Willie made a prediction of a banking failure a year ago for sept/oct 08.
It did not come true, but it came very close; only it did not get reported on time.
After Christmas in the review of the year a secret bank run in Germany and Switzerland was admitted. "We were at the abyss, at the abyss of monetary economy." 3:16 (in german, my translation)
http://www.tagesschau.de/multimedia/video/video427070_bcId-_ply-internal...
Did they already try this on Sept 18th...a run on money market accounts that was just flat out denied. If it is successful then were in some deep shit. Although it may be that they plan to make the sale gradually as to just have the stock market deflate into the bond market. Another part of their play must be puts on SPY.
Personally I have deep respect for both Jim Willie and Karl Denninger.
I believe Martial law remains a possibility. In October of last year, Hank Paulson threatened Congress with economic collapse and martial law if the $700bn bailout was not passed...
Rep. Brad Sherman Martial Law (D-CA) - October 02, 2008
http://www.youtube.com/watch?v=HaG9d_4zij8
Keep in mind that any sort of bank runs, dollar collapse, swine flu pandemic, would all be suitable pretext for the declaration of a 'catastrophic emergency' , a semantic designation that activates HSPD 20 and NSPD 51. Both these executive orders remain classified, and even members of Congress were denied access. Obama has not repealed them.
"
After receiving concerned communications from constituents, in July 2007 U.S. Representative and Homeland Security Committee member Peter DeFazio (D-OR) made an official request to examine the classified Continuity Annexes [of HSPD 20 and NSPD 51] in a secure "bubbleroom" in the United States Capitol, but his request was denied by the White House, which cited "national security concerns"
http://nospintv.net/Link_1907.html
Recently -- on August 12th 2009 -- Rep. Paul Broun (R-GA) warned at a town hall meeting with his constituents of the possibility of martial law this fall.
[Broun] also spoke of a “socialistic elite” – Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid – who might use a pandemic disease or natural disaster as an excuse to declare martial law.
“They’re trying to develop an environment where they can take over,” he said. “We’ve seen that historically.”
http://www.blacklistednews.com/news-5190-0-15-15--.html
Unfortunately -- despite Jim Willie's colorful language -- I don't think it is just conjecture.
Been reading up on stuff you have posted and other related items for the last few months. It looks like alot of contingency planning is going on with the emphasis on a heavy hand, rights be damned. For the first time in my life today, I had this thought, "Should the US government lose control, I could see the military having a plan to stage a coup." If I was presented with that idea last year, I would of called it sheer madness.
It blows my mind. I reckon the massive military excercise at the end of July was exactly about this.
HR8791 - Classified
http://www.youtube.com/watch?v=9Rh7tews1qw
PM - Remember that the government has claimed the ability to examine mail & parcels entering the country for years. The gathering of personally retained electronic data is built upon this premise. Many folks to not appreciate that domestic USPS or commercial mail cn be routed out of the country and examined without warrant upon reentry. The same holds true for telephone and electronic communications. Almost all of these are routed through an international communications nexus or satellite thereby making their collection and examination without warrant or probable cause permissible.
Just so ya know.
Treasuries are up and rates have been declining since June/July, with the 30yr now down to 4.21%, even as equities roared higher.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Examined without warrant is not quite the same as having your property seized indefinitely.
The slicing and dicing is on the interpretation of indefinitely. 100 years in not indefinite according to the government. Many folks have had their hard drives forensically copied at a port of entry and returned immediately and others got their computers and I-Pods confiscated months ago and are in limbo giving the government the ability to review at their leisure while citizens are having their ability to engage in commerce and personal affairs limited. Remember that a fair portion of the systems and facilities that retain the data that is collected are run on contract and is not held by the government at all.
I think the only way the USPS seizes anything indefinitely is via their incompetence, no offense postal workers.
Always remember to properly address your packages. I worked a brief stint at UPS and if the destination of a package is in any way unclear the first step is to open it up and determine the address from the contents.
Customs and other interested agencies inspects, USPS just processes.