Good morning, worker drones: This Week In Mayhem

Project Mayhem's picture

Good morning, worker drones:  This Week In Mayhem

by Project Mayhem


Gold takes a hit to the chin, Nobel 'Peace Prize' winner Obama escalates in Afghanistan, doctored jobs report causes mayhem in sentient AI,  ECB to discuss Greece default,  Yahoo threatens Cryptome over leaked surveillance document.



Gold takes a hit after breaching $1200

this sad little gold bug is no longer worth $1200

Some commentary from this morning's free email:

"We start this week in the gold market with significant overnight losses (from $1160 to $1140).  This is principally due to weakening in the Euro and Yen, and thus strength in the USD.  These Euro and Yen are critical currencies to watch.  The Euro is hypothetically partially backed by gold, while the Yen historically trades at a strong inverse correlation to the US stock indices.


Predicting short-term moves is a fools' game.  But one thing we know for sure is nothing goes anywhere in a straight line.  In terms of where we see gold, we expect to see continued short-term weakness , possibly retesting strong support at $1100.  If this does not hold, there is strong support between $1000-$1050 which we expect to be the floor due to buying in Hong Kong. ("the China put").  After retest of support levels, assuming they hold, we expect to see further gains.  We are issuing a price target of $1600 or higher by August 2010." -PMR

Gold hits $1200 in overnight trading - PM - 12/01


Guest Post: Why The Big Drop In Gold?


2) Obama escalates in Afghanistan

In terms of the political implications of this event, it is obvious
we are witnessing an a serious and long-term escalation in Afghanistan
by yet another President obsessed by war and acting on behalf of banks
and defense contractors. But here, by 'Afghanistan', we implicitly mean
Pakistan, which must necessarily enter chaos in order to meet the
political objectives of Kissinger, Brzezinski, and others.  So when you hear Afghanistan, think Pakistan.

is now ravaged by CIA Predator drone attacks and in is on the brink of
civil war in the Pashtun regions.  But civil war appears this was
precisely the political objectives of those operating behind the scenes
in the Western political establishment -- to include the CFR and
Trilateral Commission.  We have known for some time that Brzezinski has
favored fracturing Afghanistan-Pakistan into a series of micro-states. 
There are four major political objectives here, which you will not hear
discussed outside of closed doors.

3) Doctored jobs report sends T-2000 computer hivemind into a tailspin

On Friday, the pretext for surprise AM dollar strength against the Euro and Yen was the bogus jobs report, supposedly showing wonderful gains in the economy, and supposedly happy days are here again.  Nothing could be further from the truth.  U-6 unemployment remains at 17.2%, and non-seasonally adjusted unemployment has hit another all-time high at 16.4%.  These numbers are terrible.  We feel sorry for anyone believing the crap on CNN or CNBC.  Just another day in the matrix.  Regardless, the reality is this jobs report is just another nail in the coffin of the US taxpayer  Nothing will turn around in this economy for years, if not decades, especially with the looming situation in Alt-A and CRE in 2010-2012.

Non-'seasonal adjusted' unemployment is rising.

Unemployment Drops Amazingly To 10%, NFP Down 11.000 Much Higher Than Consensus, 17.2% U-6 Unemployment

4) ECB To Discuss Greece's budget deficit on Dec 17: Press

White sandy beaches and sovereign debt default

With the more or less sovereign default of Dubai, the possible bankruptcy of nation-states should be on everyone's radar again.  Especially in the context of the New World financial system currently being constructed under the auspices of the IMF and BIS with the Copenhagen summit, which begins today.  Regardless whether the future system is based on SDRs, regional currencies, hallucinated carbon-debt units, or some combination thereof, it will be vital to watch for further sovereign defaults.  Greece is an excellent candidate.  So is Ukraine.  Another candidate are the Baltic states. Others include all the Club Med states for that matter, such as Italy and Spain.  What does this portend for the Euro?  Hard to say.  Germany is carrying the Eurozone, as usual, so it will be up to the policy wonks at ECB, and by that we mean Germany.

'What would happen anyhow if Greece did not repay its debt?" the unidentified Bundesbank board member was quoted in the article as saying. "The euro is strong enough to support that."

Is it , anonymous Bundesbank member?  In the words of James Bond, 'Can you afford to take that chance?'

5) Yahoo Threatens Cryptome Over Leaked Surveillance Document with DMCA

Here at PMR we have enormous respect for a man named John Young, who runs the intelligence whistleblower site  Many great patriots have leaked information to John Young over the past decade which has helped increase our understanding of the world, through the last bastion of free speech known as the Internets.  We are greatful to Cryptome for providing approximately 50% of our war photographs (the other half are provided by Uruknet).  However, now Yahoo is using DMCA to threaten for publishing details of how Yahoo spies on its customers.   Here's the scoop:



"Yahoo isn’t happy that a detailed menu of the spying services it provides law enforcement agencies has leaked onto the web.

Shortly after Threat Level reported this week that Yahoo had blocked the FOIA release
of its law enforcement and intelligence price list, someone provided a
copy of the company’s spying guide to the whistleblower site Cryptome."

"The 17 page guide describes Yahoo’s data retention policies and the surveillance capabilities it offers law enforcement. The guide reveals how Yahoo retains the IP addresses from users who login to its site for a year. Yahoo instant message logs are retained for 45 to 60 days and include an account holder’s friends list and the date and times the user communicated with them, according to Kim Zetter of Wired."


1) Calendar

Looks like Benny is going to run his mouth today.  Rejoice at our fearless leaders!  Japan PPI comes Wednesday .  Mish is sure to post something about deflation.  Jobless claims comes Thursday, and we will be watching this one carefully.  Gold will remain under the microscope, as usual.  And we will watch for war and rumors of war.


by John / PM Research / Zerohedge / NYC



Project Mayhem Research (PMR) is a DC/Baltimore-based grassroots think tank dedicated to exposing corruption worldwide. PMR is affiliated with, a popular and growing anti-corruption site, through contribution of free articles for the public. Topics include the politics of war and weapons systems, unexpected applications of cybernetics, the growing international surveillance state, global warming 'deindustrialization' economics, broad systemic international corruption , in-depth policy analysis of studies from bank and military funded research groups, genetic analysis and surveillance of pandemic influenza, corruption in the international gold market, the power structure and history of the global elite, and analysis of their political objectives expressed through monopolistic international finance capital (read: powerful banks) between now and 2050.

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Anonymous's picture

From one of Canada's two National newspapers i.e. the mains stream media and their

"The real inconvenient truth
The whole world needs to adopt China's one-child policy
by Dianne Francis*

The "inconvenient truth" overhanging the UN's Copenhagen conference is not that the climate is warming or cooling, but that humans are overpopulating the world...

For those who balk at the notion that governments should control family sizes, just wait until the growing human population turns twice as much pastureland into desert as is now the case, or when the Amazon is gone, the elephants disappear for good and wars erupt over water, scarce resources and spatial needs..."


Jestocost's picture

Project Mayhem:

Having difficulty signing up for the Project.

Confirmation email keeps getting kicked back.  "Probelm with my address"???

I have disabled pop-up protector and still no luck.





JR's picture

Surging Into Disaster by Eric Margolis | December 8, 2009


The ugly, messy conflict Obama inherited from George W. Bush now fully belongs to the "peace president" and his unhappy party.

President Obama faced a choice between guns – $1 trillion for the next decade of warfare in Afghanistan – or butter – his $1 trillion national health plan.

The Nobel Peace Prize Laureate chose guns…

…There is also concern that when Obama targets al-Qaida, his real target may be Pakistan. Pakistanis sourly joke that the US long ago killed Osama bin Laden and is keeping his spectral image alive to justify occupying Afghanistan.

…Most Pakistanis support Taliban, see US occupation of Afghanistan as driven by lust for oil and gas, and increasingly fear the US intends to tear their unstable nation apart in order to seize its nuclear arsenal.  

…A grimmer view is that Obama has fallen under the influence of conservative military-financial interests, and Washington’s rabid neocons who seek permanent war against the Muslim world.

Eric Margolis is contributing foreign editor for Sun National Media Canada. He is the author of War at the Top of the World and the new book, American Raj: Liberation or Domination?: Resolving the Conflict Between the West and the Muslim World. See his website.

Invisible Hand's picture

On the recurring theme of tungsten bars--any brilliant radiation physicist (of which group I humbly am a member) could design a non-invasive, non-destructive, analyzer that could identify gold-plated tungsten bars costing low $10K dollars.  We could even automate with a small conveyor belt so it could be as simple as running your laptop through airport security (I know, not a pleasant experience but very quick).

If this really is a concern for anyone who handles gold bars, post a reply and I will contact you.  I even have an friend that can build the device for you if you like.  Any repository of gold that doesn't have one of these devices (assuming that substituting tungsten bars for gold is as simple as everyone seems to think--I admit I haven't really researched if that is possible, but I assume it is) is negligent in the extreme.

Hephasteus's picture

If you mean complicent then yes they are negligent.

Hephasteus's picture

Google regularly crawls every website as well as Microsofts web bots.

Oso's picture


Bank of Korea Sees ‘Illusion’ in Gold, No Cash Return (Update1)

By Kim Kyoungwha

Dec. 8 (Bloomberg) -- The Bank of Korea, diversifying foreign-exchange reserves away from a falling dollar, said that additional gold holdings aren’t attractive as most other central banks aren’t buying and the metal offers no cash returns.

“There’s an illusion in gold,” Lee Eung Baek, head of the bank’s reserve-management department, said in an interview. “We follow the big trend. Gold isn’t the trend. Out of more than 200 nations, how many countries have bought bullion?”

Gold surged to a record this month after central banks including India added more of the metal to reserves, while funds and individuals boosted purchases to protect their wealth against the weaker dollar and potential increase in inflation.

“Holding gold as part of reserves makes sense in terms of diversification, but I don’t think many central banks want to balloon their holdings with it,” said Jerry Yoshikoshi, a senior economist with Sumitomo Mitsui Banking Corp.

Gold for immediate delivery, on course for a ninth annual gain, touched an all-time high of $1,226.56 an ounce on Dec. 3, and has gained 32 percent this year as the dollar has dropped 6.9 percent against a basket of six currencies. The metal traded at $1,161.90 an ounce at 10:43 a.m. in Singapore.

South Korea’s reserves -- the world’s sixth-largest after China, Japan, Russia, Taiwan and India -- rose to a record $270.9 billion in November as the central bank intervened in the foreign-exchange market. Central banks intervene by arranging purchases or sales of foreign exchange.

‘No Cash Returns’

“Like other central banks, we have been increasing the types of currencies consisting of the reserves outside the dollar,” Lee said yesterday by phone, without identifying the currencies. Gold “offers little value,” with “no cash returns,” he said.

The Asian nation holds 14.4 metric tons of gold, equivalent to 0.03 percent of total reserves, according to figures from the Bank of Korea. That compares with the average of 10.2 percent held by central banks worldwide, according to data from INTL Commodities DMCC in October.

The dollar has weakened this year as the Federal Reserve kept benchmark interest rates near zero percent since December 2008 to revive lending after the worst financial crisis since World War II. Record U.S. government borrowing has also driven investor concern that the currency may be debased.

‘Slim Chance’

“Since India and Russia with large reserves bought gold, there’s speculation that Korea might buy it too,” Lee said. “But we are not classified in the same category. There’s a slim chance that we will buy gold” from the IMF, he said.

Since the end of September, India, Mauritius and Sri Lanka bought more than half of the 403.3 tons of gold that the International Monetary Fund plans to sell to bolster its balance sheet. Bank Rossii, Russia’s central bank, also increased its gold holdings by 2.6 percent in October.

“The volatility on gold is too big,” Lee said. “And once gold is purchased, it’s just kept in a safe and is not put up for sale even if prices rise.”

Many central banks “remember bullion’s ultra-bearish trend in the nineties,” Sumitomo Mitsui’s Yoshikoshi said. Gold tumbled as low as $251.95 an ounce during the decade, in August 1999. “The recent rally is, for me, too much in an environment where aggravated inflation is hardly expected in the coming years,” he said.

South Korea has reduced its holdings of Treasuries to $38.8 billion at the end of September from as high as $72.8 billion in February 2006, according to U.S. Department of Treasury data. This year, its holdings climbed $7.5 billion as the nation’s reserves increased.

Apocalypse Now's picture

PM - Another item is Columbia/Venezuela, Russia just supplied missiles to Venezuela


heatbarrier's picture

Second Kurtz' suggestion on Venezuela-Colombia, PM. Venezuela CDS are flagging trouble,

My nightmare scenario is an Israeli attack on Iran with a simultaneous attack on Venezuela, part of the "Iran-Venezuela Axis". Persian Gulf would be blocked by Iran, US and Colombia proxy seize Venezuela oil fields, Mexico and Brazil may also be destabilized.  Justification: a  (9/11)**2 event.

The Emerging Axis of Iran and Venezuela -WSJ

The prospect of Iranian missiles in South America should not be dismissed.

According to a report published by the Carnegie Endowment for International Peace in December of last year, Venezuela has an estimated 50,000 tons of unmined uranium. There is speculation in the Carnegie report that Venezuela could be mining uranium for Iran.

My office has been told that that over the past three years a number of Iranian-owned and controlled factories have sprung up in remote and undeveloped parts of Venezuela—ideal locations for the illicit production of weapons.

That means two of the world's most dangerous regimes, the self-described "axis of unity," will be acting together in our backyard on the development of nuclear and missile technology. And it seems that terrorist groups have found the perfect operating ground for training and planning, and financing their activities through narco-trafficking.

The Iranian nuclear and long-range missile threats, and creeping Iranian influence in the Western Hemisphere, cannot be overlooked. My office and other law-enforcement agencies can help ensure that money laundering, terror financing, and sanctions violations are not ignored, and that criminals and the banks that aid Iran will be discovered and prosecuted. But U.S. law enforcement alone is not enough to counter the threat.

US Fourth Fleet reestablished,

Jim in MN's picture

More tidbits--Asia Times has stated that the Predator drone campaign has been approved to move into Balochistan.  No idea how correct this is but a significant and dangerous escalation if true.

Do you think the drones may start getting hit there?  Or just a lot of serious blowback in other areas?  The Balochis have a whole different mindset and better arms suppliers than the gangs in the 'Tribal Areas'. 

 Edit: NY Times story just ran too, saying we're still engaging in brinksmanship on this:

anynonmous's picture

hey Mayhem


Peter Sullivan from Resolute Mining (Gold) just now 6:38pm Dec 7, 2009 New York time on Bloomberg TV Asia

Bernie Lo from Bloomberg Asia (ASIA MORNING CALL) questions Peter Sullivan on Tungsten (fake Gold) in Africa

(note Bernie Lo was not suggesting or implying that Resolute was involved but he just wanted an expert position)

Sullivan's response was, how shall I say ...awkward.  His eyes started blinking rapidly  and he mumbled something  (but then I don't know Sullivan)

Unfortunately Bloomberg usually does not include this program in its clips

Project Mayhem's picture



Great find!  Maybe Kirby is right about the tungsten bars.   There are definitely alot of strange happenings in the gold market, with US mint shutting down, the scandal in Canada, etc.


Cistercian's picture

 I was wondering when cryptome would get mentioned here.Don't explore the matrix without it!Good work PM.I really like the weekly mayhem features...most excellent work.

Anonymous's picture

come on mayheim. we have enough "think tanks" in the dc area, thank you very much....:)

Project Mayhem's picture

They actually put up American Enterprise Institute think tank dorms across the street from my old house, lol


AnonymousMonetarist's picture


Discrepancy between taxes collected and 'tax-paying' jobs is showing the glitch in the Matrix.

I've got red pills, waiting for the lady in red.

Anonymous's picture

Last week rocked this week cocks.

You even used some of the same stuff from last week. weak.

Gunther's picture

To gold:

How often have we seen similar moves downward and a while later the POG was up?

I lost count. That is typical bull market action.


The next attac on warming, hat tip

Lord Christopher Monckton Speaking in St. Paul

anynonmous's picture

Google's Schmidt on privacy

Google CEO: Secrets Are for Filthy People

"Eric Schmidt suggests you alter your scandalous behavior before you complain about his company invading your privacy. That's what the Google CEO told Maria Bartiromo during CNBC's big Google special last night, an extraordinary pronouncement for such a secretive guy.


The generous explanation for Schmidt's statement is that he's revolutionized his thinking since 2005, ..."


Gordon_Gekko's picture

Is that an opium poppy field that is being guarded by the US marine? Who knew the US Government was involved in the drug trafficking business? (hurry! act surprised everyone! ROTFL).

delacroix's picture

we wouldnt want to disrupt free trade in afganistan, they might find that offensive

Anonymous's picture

As usual you open your mouth without knowing of what you speak of. It is obvious from the helmet, it is not an American soldier.

Mad Max's picture

The helmet and camo look like UK.

Gordon_Gekko's picture

Is there ANY difference between the two countries? They are practically the same goddamn nation.

Project Mayhem's picture

Well if he's not an American he's part of ISAF right?   That' s basically NATO + a couple of extra countries.

dark pools of soros's picture

and the Taliban was terrible how??


oh thats right they stopped the crops for 4 years

Mr Shush's picture

That and their unimpeachable women's rights record. And gay rights record. And stellar handling of the economy. And commitment to free speech and representation of the will of the majority. Yeah, those guys were great.

Anonymous's picture

Kind of like our "good" ally, Saudi Arabia....yeah, let's
Bomb them too? (Only bomb the guys who aren't
with our program)

WaterWings's picture

The humanitarian US of A realizes that even if 49% of the local population is lost due to freedom fighting it is still a victory. We must save the Afghan women from the Afghan men.

"We Kill for Peace."

Excellent documentary: Afghanistan's Opium Trail:

Gordon_Gekko's picture

Well, it's not like the US Govt. is any better.

Andrei Vyshinsky's picture

Your analysis of the objectives of the Afghanistan/Pakistan aggression overlooks one of the more obvious: Making the world safe for Israel. You should add AIPAC to the list of lobbies you rightly indict for this outrage. If you aren't aware of it already, here's a link to a paper making the connection for you:

What possible hope is there now to avoid war with Iran, surrounded as it now is on all side by the divisions of this latter day Wehrmacht? The torrent of abuse to which these people have been subjected, particularly since the Bush Regime, makes Hitler's abuse of Poland immediately preceeding the onset of hostilities in 1939 look tame by comparison.

Project Mayhem's picture

I'm not overlooking anything.  I agree -- Isreal associated hawks such as Netanyahu want a strike on Iran.  If there is war in Pakistan, there is war in Iran.  The two will go together.  


Yes I understand Isreal policy planners are way infiltrated into the government etc etc that much is well known here in DC.  There is a spying scandal involving Isreal every other week, more or less.  Look at who does all the US survellience such as Amdocs and Comverse Infosys.  Isreali intelligence runs the phone systems, CALEA , tap and trace etc etc.  Old news.


In the sense that we are making 'the world safe for Isreal' I disagree.  The Isreali policy elites (as well as US elites) WANT war, the people do not.   The leaders of various nations, regardless of religion or creed,  trick their people into war.   Same shit the past 5000 years!



Dr Horace Manure's picture

"hallucinated carbon-debt units".  Priceless.

I'm getting the education of a lifetime here at ZH, and it's all free.

Btw, I rented "Fight Club" over the weekend and watched all 139 minutes of it.

Somebody here at ZH owes me $2.15 and 139 minutes.  Can I collect from you PM :)) 

Anonymous's picture

Now watch "Snatch", another great movie. :-)

Anonymous's picture

The tea leaves say you will find a bag containing 2.3 million dollars in unmarked bills in it in the street. Either that or you'll be gang raped by a dozen filthy bikers.

They're ambiguous like that.

Gordon_Gekko's picture


Hephasteus's picture

For fun a couple years ago. i used to completely block the entire nakatomi network. Just to fuck up yahoo. Then I'd get flooded with various packets from fake colleges and universities and then finally the Department Of Defense would come knocking. Haha. Unversity of California, Presidents Office my ass. ROFLMAO

anynonmous's picture

GG - Google, Yahoo, Bing (Microsoft) are one and the same - they track your IP; they store in perpetuity your searches; if you subscribe to one of their services such as the Google Tool Bar the tracking is that much more granular; if you are logged on to your Yahoo, Google or Microsoft account whilst you are conducting searches (unless you opted out) every single search is stored under the name of your account going back years and years; they have all caved to foreign governments vis a vis censorship; etc.

Make no mistake that there will come a time in America when for reasons of "public safety or security" your records will made available to the 'authorities'.  One challenge is your ISP who also has records of the sites you visit and the 'authorities' subpoenaing the ISP - that's tough to get around even using proxy servers.


Even our friends at ZH, if you read the T&C, will in certain and rare cases hand over your info (which begs the question why would ZH store that info?)



always clear your history, cookies etc

beware of super cookies that are attached to Flash player that need a special progam to delete (if you are using FireFox load Better Privacy - you will be shocked at what these super cookies have on you - again going back months and years)

Do not use Google Chrome,

Do not use Google, Yahoo etc Toolbars

Do not use Alexa

Never stay logged into your account whilst surfing the web

If you have a Google account - make sure that you opt out of something called Web History -

Ideally use as your search engine (they don't track your IP or compile your search history)

Try not to use a static IP

When posting on ZH or any other blog that requires registration  - don't use your regular email address - better still post "anynonmously"


of course if privacy matters are irrelevant to you please disregard all of the above


If you doubt anything I have said read the terms of use on Google etc - and read them carefully (with a lawyer).



gatopeich's picture

Good points.

But I would add:

  • Use all that shit for the 99% of your online doings that are not really sensible.
  • Use secure services for the other 1%.

This way, you will contribute a lot of enthropy (useless information) to the surveillance databases; while keeping your privacy high for the thing you really want it high.

The funny thing is that the more information they accumulate, the harder to keep and dig. Similar to the devaluation of the dollar by action of the printing press.

Mad Max's picture

It would also be great if someone had a little app that would generate random G to PG searches from your computer every 2-5 minutes.  Vastly increase the noise level.

dark pools of soros's picture

or dont give a shit and drive over the speedlimit like everyone else and let luck play itself out

Gordon_Gekko's picture

Yeah, I was talking more along the lines of, you know, let's make an example out of the POS - drive 'em to bankruptcy at least - so at least the other companies know that we won't take this kind of shit lying down.