شبكة الإستخبارات الإسلامية

"They plot and plan but ALLAH also plans and ALLAH is the best of Planners." Qur’an VIII – 30

‘’ويمكرون ويمكر الله والله خير الماكرين ‘’: قال الله عزَّ وجل

سورة الأنفال

رضيت بالله ربا و بالإسلام دينا و بمحمد صلى الله عليه و سلم نبيا رسولا لا إلـه إلا اللـه ... محمد رسـول اللـه

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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Thursday, June 14, 2012

Will the Europe zone and the USA be destroyed by a bankster 911 financial attack in the coming days?



URGENT : En cas de sortie de la Grèce, l'Espagne ce dimanche de l'Eurozone, les retraits aux distributeurs seront immédiatement limités et les accords de Schengen suspendus... les banques vous voleront votre argent en Grece, Espagne, Portugal, Irelande, Italie, France, Pays Bas etc... Les banques run ont deja lieu en France, tous les retraits sont limites a 300 euros par jour comme en Angleterre. Pour les Musulmans ayant de l'argent dans les banques francaises au Maghreb et en Afrique, retirez votre argent immediatement ou vous ne le reverrez jamais, toutes les banques francaises sont en totales faillites. Achetez des dinars islamique d'or et dinars d'argent, disponible sur le marche. Voir ici et la 

"Due To The Extreme Volatility Some Market Analysts Foresee..."


Helmet time.
From Oanda
Due to the extreme volatility some market analysts foresee could result in the coming days, OANDA fxTrade will not accept any trading activity from 6:00 AM EST until approximately 3:00 PM EST, on Sunday, June 17, 2012. OANDA believes the convergence of a major market event during off-market hours represents a potential trading risk and has taken this rare step to protect traders from excessive rate fluctuations.

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Thursday, April 12, 2012

The invasion and destruction of Libya, now Algeria and the iranian oil embarguo will push the Eurozone into total chaos this summer. Mossadnik Sarkozy told secretly to the Libyan NCT last year that Algeria and Egypt will be dismantled in 2012 and that Iran will be attacked in 2014


Iran cuts oil supplies to Germany

Azerbaijan, Baku, April 11 / Trend D.Khatinoglu /

Iran cut oil export to Germany after halting crude oil supplies to Spain and Greece in recent days, Press TV reported.

According to the U.S. Energy Information Administration Statistics, Germany imported about 18 000 barrels of oil per day from Iran during the second half of 2011.

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Thursday, March 08, 2012

Arab opinion index: 75% of Arabs favor a unified Arab monetary system


Arab Center for Research and Policy Studies publishes the preliminary findings of the Arab Opinion Index report

The Arab Center for Research and Policy Studies (ACRPS) recently published the Arab Opinion Index report for 2011. The Arab Opinion Index project is currently the largest of its kind. It covers 12 countries, representing 85 percent of the population of the Arab world. The Index compiles the findings of 16,173 face-to-face interviews with subjects who were drawn from a random, representative sampling of the populations of their countries of origin. An estimated 35,000 human work-hours were spent completing the surveys which will contribute to the final, detailed statistical report.

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Tuesday, March 06, 2012

The New Mediterranean Oil and Gas Bonanza

Part II: Rising energy tensions in the Aegean—Greece, Turkey, Cyprus, Syria 


Global Research, March 5, 2012

The discovery in late 2010 of the huge natural gas bonanza off Israel’s Mediterranean shores triggered other neighboring countries to look more closely at their own waters. The results revealed that the entire eastern Mediterranean is swimming in huge untapped oil and gas reserves. That discovery is having enormous political, geopolitical as well as economic consequences. It well may have potential military consequences too.

Preliminary exploration has confirmed similarly impressive reserves of gas and oil in the waters off Greece, Turkey, Cyprus and potentially, Syria.

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Monday, October 10, 2011

French economy on the brink of collapse - Think Tank Says Bailout Fund Will Need $6 Trillion And France Will Lose AAA Rating



Pardon while we chuckle, because $1 trillion, let alone $6 trillion, is never going to happen in Europe.  Where do they plan to get the money, Euro Claus?

Consisdering that the current proposal being voted on by all 17 Eurozone members calls for a fund of less than $500 billion, this new number, though more realistic in terms of the size needed to fix the problem, is a political impossibility, especially given the popular resistance among voters in France and Germany to bailouts for irresponsible neighboring countries.

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Saturday, October 08, 2011

The Deutsche Mark is coming, and Germany will still lead the European super-state

Patrick Henningsen
Infowars.com


Ever since the dawn of the European Union, it was clear that there was a power of three- France, Belelux and West Germany. Within these three continental economies is where you did find Europe’s power houses in innovation, manufacturing, agriculture and finance.

 

But a game-changer happened in 1990, what the Germans referred to as die Wende (The Turning Point)- the process where the German Democratic Republic (GDR/East Germany) joined the Federal Republic of Germany (FRG/West Germany).

Currently the EU is comprised of 27 member states, and after some 20 years of  German reunification, it is now the single strongest economy in Europe, and ranks among the top 5 in the world. It’s manufacturing sectors, tech industries and their export markets are consistent and solid, and the country also boasts a surplus in its current accounts for both unemployment and health benefits.

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Friday, September 30, 2011

Goldman Sachs and mossadnik Sarkozy are raping the French savers. PIMCO's CEO El 'Arian (translated from Arabic : the naked man) explains that French banks were attacked and have only 1 % in reality of the assets they are reporting. This is one of the reason Sarkozy attacked Libya, to steal the 250 Billions dollars assets of the Libyan people. We have now reports that Sarkozy asked Obama to help him to kill the Algerian puppet Bouteflika to help complete the hold up and steal up every single oil-gas penny. Double level strategy is at work here, one is to subdue the MENA region through faked revolutions to Israel, regionalise and divide in sub-entities North Africa, Caspian Sea, Turkey in the Model of Europe (see map) and destroy all the nation-states by creating engineered economical chaos to buy or colinisation stealing of every strategical assets in the West and the world for a penny on the dollar and then impose a centralised world government, controlled by Goldman Sachs and transnational companies led by the 'God's work' mad zionist dogs

 New Europe after the first phase of engineered economical chaos and split up of EU and then the US break down is following.

Collapse Of Entire Global Banking System Is Underway Signals CEO of World’s Largest Mutual Fund

 

PIMCO CEO signals the collapse of entire global banking system underway as a panic driven institutional bank run drains French banks of nearly all their capital.

PIMCO’s CEO tells the Financial Times that the institutional bank run on French Banks has left them with as little as 1% capital against the total assets reported on their balance sheets and institutional panic in the global financial system is underway

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Thursday, September 29, 2011

Wednesday, September 14, 2011

United States of Europe : 20 Signs Of Imminent Financial Collapse In Europe


Are we on the verge of a massive financial collapse in Europe?  Rumors of an imminent default by Greece are flying around all over the place and Greek government officials are openly admitting that they are running out of money.  Without more bailout funds it is absolutely certain that Greece will soon default on their debts.  But German officials are threatening to hold up more bailout payments until the Greeks “do what they agreed to do”.  

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Thursday, August 18, 2011

Hugo Chavez Nationalizes Venezuelan Gold Industry, Demands 211 Tons Be Returned From Abroad - JPMorgan, Bank Of England & ETFs Scramble For Physical Metal


This is the biggest story of the late day with implications for Jamie Dimon, precious metal ETFs, and central banks worldwide.  We'll start at the beginning.

Anyone holding gold miner Rusoro is panicking.

Details from Reuters

Toronto-listed Rusoro, owned by Russia's Agapov family, is the only large gold miner operating in Venezuela.  It produced 100,000 ounces last year.

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Monday, July 18, 2011

Goldman Sachs and Israel's 'work of God', destroying the nation-states in the US, EU to build the NWO, ruling the world from Jerusalem

650 Years Ago: How Bankers Rigged the First, and Worst, Global Financial Crash.

Six hundred and fifty years ago came the climax of the worst financial collapse in history to date. The 1930s Great Depression was a mild and brief episode, compared to the bank crash of the 1340s, which decimated the human population.

The crash, which peaked in 1345 A.D. when the world's biggest banks went under, "led'' by the Bardi and Peruzzi companies of Florence, Italy, was more than a bank crash -- it was a financial disintegration. Chroniclers reported, "all credit vanished together,'' most trade and exchange stopped, and a catastrophic drop of the world's population by famine and disease loomed."
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Friday, March 04, 2011

A MUST WATCH VIDEO : WHY THE BANKSTERS HATE ISLAM


And everything Old World

Tony Cartalucci, Contributing Writer
Activist Post

Of course, all aspects of the Old World are slated for elimination, as ancient values, be they of Christianity, Judaism, Buddhism, or even regional secular traditions, all pose a direct threat to the Anglo-American unipolar world government. Their world government is one of interdependence between the nation-states, who in turn are enslaved by servile dependence on "global institutions," most notably those involving a world-wide monetary system. Any tradition or value system that promotes independence, sovereignty, knowledge, and self-reliance represents a brick wall standing in the way of the corroding effects of the globalist agenda.
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Wednesday, February 02, 2011

End of the globalization as a Zionist system of domination : Revolutions to hit Italy, Spain, France, Germany, UK, Ireland, Portugal before summer 2011. People does not bow anymore to financial terrorist banksters backing Israel's wars and domination agenda...


Revolutionary Fervor to Spread
Beyond Arab States; Europe Next

By Gerald Celente
2-1-11
 
KINGSTON, NY, 1 February 2011 - When the Tunisian government toppled, the mass media and their stable of experts ­ who were blindsided by these events ­ quickly stepped in to proclaim the obvious: that citizens of other Arab nations would be emboldened to challenge autocratic and corrupt governments.
 
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Monday, November 22, 2010

Video: Max Keiser : Kill the real terrorists, the banksters with a silver bullet

International Soccer Star: Reclaim Your Power By Pulling Your Money Out of Your Bank on December 7th




 

Most Americans haven't heard of him, but Eric Cantona is a huge international soccer star known throughout Europe and much of the world.

Cantona is calling for Europeans to pull their money out of banks on December 7th:
I don't think we can be entirely happy seeing such misery around us. Unless you live in a pod. But then there is a chance... there is something to do. Nowadays what does it mean to be on the streets? To demonstrate? You swindle yourself. Anyway, that's not the way any more.We don't pick up weapons to kill people to start the revolution. The revolution is really easy to do these days. What's the system? The system is built on the power of the banks. So it must be destroyed through the banks.

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Thursday, May 20, 2010

The Israeli Role in the Plundering of Iceland

By Christopher Bollyn,

www.bollyn.com


May 20, 2010

9/11 - THE TRUTH IS OUT

The discovery of large amounts of Super-Thermite in the dust of the World Trade Center is solid scientific proof that the government and media version of 9-11 is nothing but a pack of treasonous lies. The evidence indicates that the Twin Towers were exploded using sophisticated nano-composite forms of Thermite and cutter charges. Thanks to the Internet, the truth about 9-11 is out and understood by millions of people across America and around the world.

Although it may come as an unpleasant surprise to some, it is a proven fact that the same network of Zionist Jews is behind the false-flag terrorism of 9-11 and the huge financial crimes of the past few years. Maurice "Hank" Greenberg, for example, the disgraced former CEO of the fraudulent A.I.G., is a member of this criminal network. The first airplane flew directly into the secure computer room of Marsh McClennan (MMC), a Greenberg-owned company (headed by his son Jeffrey) on 9-11. Another Greenberg-owned company, Kroll Security, was responsible for security at the World Trade Center.


Maurice Greenberg is involved in both 9-11 and the A.I.G. bail-out.

I have pointed out these connections in "The Architecture of Terror: Mapping the Network Behind 9-11", a key chapter of my book, Solving 9-11 – The Deception that Changed the World:

Kroll Associates was responsible for "revamping security at the World Trade Center after the 1993 terrorist bombing," Douglas Frantz of the New York Times reported in 1994. This is a crucial point because those who controlled security at the WTC are prime suspects in the demolition of the Twin Towers. It was directly into the computer room of Marsh (Kroll) USA in the North Tower that the first plane struck, or was precision-guided, on 9-11. The light orange flame and whitish smoke that exploded out of burning computer room of Marsh USA are indicative of a Thermite reaction. Burning jet fuel produces darker orange flames and blackish smoke.

John O'Neill, the former chief of counterterrorism with the FBI, who had investigated Al Qaida, was the head of security for the World Trade Center complex, and was reportedly killed on his first day of work - on 9-11. O'Neill had been appointed to this position by the managing director of the Kroll security company, Jerome M. Hauer. Evidently, Kroll continued to manage security for the WTC complex from 1993 until 9-11.


The first plane flew directly into the secure computer room of Greenberg's Marsh McClennan Company. The explosions and white smoke that accompanied the crash are indicative of Thermite having been preplaced in the computer room.

Later, Maurice Greenberg's fraudulent insurance company A.I.G. was the key player in the Bush-Obama bail-out of 2008-2009, receiving more than $180 billion in U.S. taxpayer funds. Much of the taxpayer money paid out to A.I.G. was then distributed to equally criminal private investment banks like Goldman Sachs, whose profits from dodgy financial schemes/instruments had been insured by A.I.G. Fear tactics were employed as the U.S. taxpayer was robbed while being told that the bail-out of the network of financial criminals was for the public good.

We then find the same Zionist criminal network behind the Bernard Madoff scam in which tens of billions of dollars disappeared into thin air. The fact that Madoff's business partner Sy Syms was also a director of a private Israeli bank called Israel Discount Bank (New York), a bank with a documented history of money laundering and a branch in Switzerland, did not seem to interest Lev Dassin, the Zionist prosecutor. Most remarkably, Dassin, the prosecutor of Madoff, failed to even file charges of conspiracy in a financial criminal case in which more than $26 billion is reported to have disappeared.

Behind all of these mega-crimes we find one common denominator: a network of individuals connected to Israeli intelligence, the Mossad. The Israelis are well known to have a penchant for audacity. Seemingly immune from prosecution, the Mossad's crimes have only become more audacious. The evidence of Israeli involvement in these crimes is clear and indisputable. The only reason the Israelis get away with their outrageous crimes is because there is no political will to prosecute them.

PLUNDERING ICELAND

The looting of much of the wealth of Iceland is one such mega-crime in which we find Israelis involved at the highest level. The First Lady of Iceland, Dorrit Moussaieff, is an Israeli Jew, which adds a significant wrinkle to the whole plot.



The Israeli Dorrit Moussaieff is the "fabulously wealthy socialite wife of the President of Iceland." So why did a "fabulously wealthy" Israeli Jew marry the president of a small Nordic nation in the North Atlantic?

Iceland recently arrested several former executives of the former Kaupthing bank, the largest Icelandic bank involved in the collapse of the Icelandic economy in the fall of 2008. Kaupthing and a couple other banks were responsible for the looting of much of the wealth of Iceland (and other nations). Two of the former executives of the bank were recently held in solitary confinement to facilitate the Icelandic investigation.

Iceland's special prosecutor is investigating a number of former Kaupthing executives for alleged market manipulation and forgery. Before its collapse, Kaupthing lent more than $12 billion in shady deals that were "if not illegal, completely unethical," Prime Minister Johanna Sigurdardottir said. When Kaupthing, Glitnir Bank, and Landsbanki Islands collapsed in October 2008 they had amassed debts equivalent to 12 times Island’s gross domestic product. After taking control of the three banks, the government was forced to seek a $4.6 billion International Monetary Fund-led loan to stay afloat. If an intelligence agency of a foreign government were involved in bankrupting Iceland, a member of NATO, it should be considered an act of war.

Kaupthing's loan book (leaked on the Internet) shows that around one third of its $20 billion in corporate loans went to a small elite connected to the bank's owners and management. One of Kaupthing's owners and the bank's largest debtor when it collapsed is an Iraqi-Iranian Jew named Robert Tchenguiz (pronounced like Genghis, as in Khan). The bank's leaked loan book shows that Tchenguiz borrowed some $3 billion from the bank to finance his private investments. Tchenguiz and his brother Vincent are London-based business tycoons. Robert was an owner of Kaupthing as one of the largest shareholders in Exista, a company that was the largest shareholder of the bank.


Robert Tchenguiz - "I can't comment on what Hrediar did or didn't do. It is very difficult for me to discuss this. I don't know why he was arrested. I don't know anything about the case."


Tchenguiz siblings Vincent and Lisa

Tchenguiz claims that he lost everything with the bank's collapse. "I lost all my money with the collapse of Kaupthing and I am suing the bank so I have to watch what I say," he said recently. High-profile "losers" like the Tchenguiz brothers, who lose billions of dollars, are typical of Mossad financial scams. Like Bernard Madoff, the Tchenguiz brothers claim to have lost billions of dollars, but where did the money really go?

As I pointed out in the Madoff scam, the missing billions probably went to secret Zionist-controlled bank accounts, for example at the Swiss branch of Israel Discount Bank where Madoff's friend and business partner Sy Syms (a.k.a. Seymour Merinsky) was a long-time director. In the Tchenguiz case, the Israeli partner-in-crime was probably his father, Victor, whose original surname is reported to be Kedourie Molaaem, and who has lived in Israel since at least 2003.

Victor Tchenguiz, an Iraqi Jew from Baghdad, has evidently worked with the Israeli Mossad for decades, and was reported in the British press in 2003 to be "the brains" behind the Tchenguiz business empire: "One reason that Victor Tchenguiz was long supposed to be the brains behind Rotch was that his Ferrari-driving sons didn't seem to spend much time at their desks," Conal Walsh wrote in the Observer of May 25, 2003.


The Tchenguiz kids, Vincent, Lisa, and Robert are well known for living high on other people's money. As the Observer noted in 2003: "The [Iranian Jewish] community is also legendary when it comes to shopping and partying. One reason that Victor Tchenguiz was long supposed to be the brains behind Rotch was that his Ferrari-driving sons didn't seem to spend much time at their desks."

About the Israeli connection with the Tchenguiz family, Walsh wrote:

Victor Tchenguiz, 80 and now living in Israel, is a larger-than-life figure who apparently traded in his original surname of Kedorie for Tchenguiz, Persian for 'Genghis', in honour of the great Mongol warlord.

An Iraqi-born Jew, he reportedly fled Baghdad to avoid persecution in 1948, landing in Iran and swiftly becoming a favourite of the Shah. How Victor did this is unclear - Robert has hinted that he married well - but by the Seventies he was jeweller to Iran's royal family and, it has been reported, in charge of the royal mint. When the Shah was deposed in 1979, Victor fled to London, with his fortune seemingly intact.

The British press seems to be quite clueless about Victor Tchenguiz's high-level connections to the Shah of Iran and how he got there, as Chris Blackhurst wrote in his MT interview with Robert Tchenguiz:

Somehow, despite being a foreigner, Victor became a member of the Shah's inner circle, becoming the royal jeweller and also head of the country's mint. The family were in the elite of Iranian society - the children were pupils at the International School in Tehran and the sons went to university abroad - Robert to Pepperdine in California.

Then the Shah fell. Victor moved the family to London, again displaying enormous dexterity by managing to bring their money over as well.

While the press reports are quite sketchy, the name suggests that the Tchenguiz family may originally be Iranian Jews, perhaps named Molayem (i.e. soft), which would fit the unusual "Molaaem" spelling of the family name. Although Victor and Violet met in Baghdad, they were married in Iran after a very short courtship, apparently in 1955 according to a 2009 interview with their daughter Lisa. There would be no reason for Iraqi Jews to be married in Iran if they did not have family there:

Lisa's own parents, who are both Iraqi Jews by origin, had a semi-arranged marriage. Her father spotted her mother walking beside the canal in Baghdad, and introduced himself to her father at a café. Several coffees later, the deal was done. 'My mother was at home when her mother came in and told her that she was having an engagement party the following week.' The couple 'dated' for five days, heavily chaperoned, then married in Iran.

Fifty-four years later, they are still together and, says Lisa, happily so.

It is well known that the Mossad, Israel's intelligence agency, played a key role in supporting the Shah of Iran and his secret police, the SAVAK, as the Wikipedia article on the Mossad notes:

Prior to the Iranian Revolution of 1978–79, SAVAK (Organization of National Security and Information), the Iranian secret police and intelligence service was created under the guidance of United States and Israeli intelligence officers in 1957 to protect the regime of the shah by arresting, torturing, and executing the dissidents (especially Leftists). After security relations between the United States and Iran grew more distant in the early 1960s which led the CIA training team to leave Iran, Mossad became increasingly active in Iran, "training SAVAK personnel and carrying out a broad variety of joint operations with SAVAK."

As the Jew who headed the Iranian mint and served as court jeweller for the Shah, Victor Tchenguiz would have worked closely with the Mossad. The Mossad connection would explain why Victor lives in Israel while his "billionaire" children and grandchildren all live in Britain. Why would Victor leave his family and home to retire in a country where he has never lived? The evidence suggests that Victor is indeed "the brains" behind the looting of Iceland and probably needed to be in Israel - close to his Israeli partners-in-crime - to pull off the mega-heist.

Sources and Recommended Reading:
"Robert Tchenguiz: I lost everything with Kaupthing", by Jóna Ann Pétursdóttir, Pressan (Island) May 7, 2010
"Persian playboy goes shopping", by Conal Walsh, The Observer, May 25, 2003
http://www.guardian.co.uk/business/2003/may/25/theobserver.observerbusiness6

"The Tchenguiz sister", by Lydia Slater, London Evening Standard (U.K.), May 15, 2009
http://www.thisislondon.co.uk/lifestyle/article-23691957-the-tchenguiz-sister.do
Wikipedia article on Mossad
http://en.wikipedia.org/wiki/Mossad
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Tuesday, March 16, 2010

The Lehman Scam and Fuld's Mossad Connection

By Christopher Bollyn,
www.bollyn.com

Dylan Ratigan of MSNBC explains how the Lehman scam worked. In this 10-minute video he explains the fraud at Richard S. Fuld's company and who was responsible. Eliot Spitzer calls for "handcuffs" and criminal prosecution of those who were in the responsible positions at the Fed, namely Timothy Geithner and Ben Shalom Bernanke. As I wrote more than a year ago, the A.I.G. and Lehman meltdowns were not accidental - they were carefully designed crimes. Richard S. Fuld and Maurice Greenberg of A.I.G. are criminals, as are the people at the Federal Reserve who allowed their criminal conduct and then bailed them out - with taxpayer funds. Will Geithner and Bernanke face criminal charges?

FULD'S MOSSAD CONNECTION

It should be noted that Richard S. Fuld is closely tied to Menachem Atzmon, the Israeli Mossadnik who owned the passenger-screening/airport security company that was behind getting the 19 Arab hijackers on the planes of 9-11. Uzi Ruskin, Menachem Atzmon, and his Mossad-funded comrades took over the failing United Merchants & Manufacturers, Inc. in 1993 - from Fuld's uncle, Martin Schwab, Richard's mother's brother.


Sources:

New York Times Obituary for Jacob W. Schwab, Richard S. Fuld's maternal grandfather
http://www.nytimes.com/1982/03/30/obituaries/jacob-w-schwab-89-textile-manufacturer.html

United Merchants & Manufacturers, Inc. - Company History
http://www.fundinguniverse.com/company-histories/United-Merchants-amp;-Manufacturers-Inc-Company-History.html

"Clunker in possession", Brigid McMenamin, Forbes, April 5, 1999
http://www.forbes.com/forbes/1999/0405/6307115a_print.html

Bollyn, Christopher, "Who is Bernard Madoff - The Man Behind the $50 Billion Fraud?", December 12, 2008
http://www.nogw.com/download2/%5E8_who_is_madoff.pdf

Menachem J. Atzmon, Chairman of the Board, ICTS
http://www.icts-int.com/content7429.html?id=15

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Tuesday, September 08, 2009

Collapse of the USA, False Flag Terrorism from the israelis in the coming days


Four Signs That China Is Moving Out Of The Dollar


There are 3 recent signs that China is moving out of the dollar.

First, in June, China was a net seller of U.S. Treasury bonds (and shorter term notes) for the first time ever. As Mike Larson writes:


A few days ago, the U.S. Treasury Department revealed that China actually REDUCED its note and bond holdings by $25 billion in June. Although China did NOT sell shorter-term Treasury bills — and isn’t expected to — it’s still the largest amount of Treasuries China has ever sold in a single month.Second, China will issue a non-Dollar denominated Renminbi bond sale on September 28th (6 Billion Renminbi worth).Third, China has agreed to purchase $5o billion dollars worth of IMF bonds (denominated in the IMF Special Drawing Rights currency).


And fourth, the former vice-chairman of China's Politburo Standing Committee (the highest and most powerful decision-making body in China) - Cheng Siwei - recently said:


We will diversify incremental reserves into euros, yen, and other currencies. Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets.


As Edward Harrison correctly notes:


To be sure, there are other voices in Chinese officialdom that are striking a less alarmist tone. One cannot rely on the words of one Chinese official to represent policy makers in China. And Cheng never said the Chinese are now actively diversifying away from the U.S. dollar. Nevertheless, Chinese officials have been talking along this dollar bearish line for months now and I tend to believe their words will lead to action.


That is, at a minimum, bullish for Gold and bearish for the U.S. Dollar.


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Monday, September 15, 2008

America 's Financial Apocalypse Heralds Decade Long Depression


But Greenspan and Bernanke have not been alone in what will surely be remembered as America 's Financial Apocalypse - the eventful period ushering in a decade-long depression, as predicted in my 2006 book by the same title. Certainly, President Bush did not create these trends. But his financial irresponsibility has accelerated their magnitude. In less than eight years, he has managed to increase the national debt by 90%. As the data shows, not only has he led the worst recovery since the post-WWII era, he has also positioned his successor with budget shortfalls for many years to come due to Part D Medicare, the Iraq War, and his tax cuts for the wealthy.


Combined with the staggering deficits for Medicare and Social Security , America 's economy will be in the gutter for many years to come even after the banking and real estate troubles cool down. No one else is talking about these issues because they're wrapped up in the daily drama. But save this article and others I've written because I've been mentioning the longer-term problems ever since writing my book. In a few years, more people will begin to address these issues once they are transformed into daily drama.


President Bush's attempts at a recovery have been so horrendous they've actually led to the current recession, which will turn out to be the worst in decades. I would venture to guess he is desperately pleading with officials to come up with even more gimmicks to hide the full realities of the economy so the worst will be reported only after he leaves office. But I will guarantee you if Washington and the Fed continue this reckless game of applying band aids instead of letting things play out, we will see a much bigger crisis down the road, similar to what happened after Greenspan tried to mitigate the dotcom collapse. You can bet this is going to happen because Washington does not understand the meaning of preemption.


Altogether, we have had eight years of no gains in real median wages, flat stock market returns, and minimal net new jobs. Despite what you have heard, after adjusting for debt spending, population growth and realistic adjustments to the GDP deflator, there have only been 3 or 4 quarters of GDP growth since 2005. If you adjust for military, government and minimum wage positions – i.e. jobs funded by tax payers and jobs that don't pay anything - there have been absolutely no net new jobs. Bush's largest gains have been with inflation, oil and food prices, debt, trade deficits, bankruptcies, foreclosures, and healthcare costs. If an assembly of the world's leading economic strategists were to design the most destructive economic disaster possible, they could not match the results of Bush's tenure. Even the most loyal Bush supporters will admit he has been an absolute disaster – that is if they're being honest. America is now more dependent on foreign nations than ever – not only for oil, but also credit and manufactured goods.


America 's “Resilient” Economy


Many of the pundits flood the propaganda networks with repeated denials of the problems, boasting how resilient the U.S. economy is. You know who they are. I'm not quite sure what they've been smoking. But it appears to be some sort of hallucinogen because they seem to expect Superman to bend the economy back into shape. Ladies and Gentlemen, in case mommy never told you, there is no Santa Claus and there is no Superman. And if you think Bernanke's printing presses have an endless supply of ink and paper, just wait until the real crisis appears. So you had better get ready because it's coming. It is virtually inescapable. And it's going to cause devastation around the globe. Of course I'm taking about the likely implosion of the CDS market.


Let's take a look at America 's “resilient economy.” Let's see…the entire financial system is in the process of blowing up. Already there have been over $500 billion in bank losses, with over $1 trillion more to come. Over one dozen banks have failed, with hundreds on deck. A handful of large hedge funds have blown up, with hundreds more on the way. Already, over $1 trillion has been transferred from the Fed to the banking cartel. But I estimate another $1.5 trillion will be needed to maintain liquidity as banks de-leverage over the next few years. Unemployment is now over 6% and inflation is over 5%, even with Washington 's manipulation of the data. Virtually every metric in the housing market is at multi-decade lows, except for foreclosures which are hitting new highs.


Taxpayers are now on the hook for billions of dollars of potentially worthless debt held by Fannie and Freddie. It's now official. America 's free market economy is really a socialist system for corporations. One could argue this to be a form of Fascism. My best estimate for losses due to the Fannie and Freddie taxpayer bailout are between $200 to $500 billion. The worst case scenario would be $800 billion. If this economy is resilient, I can't wait to see how it magically bounces back. When Superman fails to show up, Washington might consider giving David Copperfield a call. But this would be one illusion he won't be able to pull off. Get the popcorn ready.


The Economy Under a Microscope


Let's take a closer look at the economy. America imports oil, credit, and manufactured goods, while exporting jobs, junk bonds and inflation (via the dollar-oil link – see http://www.marketoracle.co.uk/Article5414.htmlfor an explanation). That doesn't sound like the type of trade policy that would support claims of a superpower, unless you're only counting the number of nukes. Surely Washington is beginning to wonder how much longer Asia and Europe will continue fueling America 's credit bubble. They've already faced massive losses from sub-prime securities with much more carnage to come.


China holds about $1.4 trillion in U.S. Treasuries, but only due to their its surplus with the U.S. It can't dump Treasuries yet because the Yuan remains greatly undervalued. China pegged it to the dollar back in 2001, knowing the dollar would plummet so they'd lure dollars from U.S. consumers looking for bargains. What most people don't realize is that China 's support for U.S. Treasuries helps finance Bush's irresponsible spending sprees. By financing up to 90% of each annual deficit, China helps keep interest rates low in the U.S., which facilitates credit expansion for consumers to buy more imports - mainly from China (due to the low cost items created by China's currency peg).


Hidden Imports


Keep in mind when you buy that Dell computer or Fossil watch, you're really buying imports. Dell and Fossil actually resemble distributors more than manufacturers because virtually all of their products originate overseas. The same is true for most U.S. companies that sell branded goods. In many cases, the same is also true for the service segment of the economy. Many American IT and software development firms outsource projects to India , Canada , and other nations so they can escape the costly retirement and healthcare benefits Americans expect.
By no means does it end there. For several years, U.S. banks, tax providers, telecommunications and several other industries have outsourced to Asia - so much for the “strength” of America 's service economy. If this service economy is so “strong” someone explain to me how Asia has been able to increase its living standard by leaps and bounds in such a short period. Before you answer, keep in mind that income and wealth are finite over short periods since they are limited by human and natural resources. Make sense? If not, let me know and I'll do a write-up explaining it next time.


Corporate America 's new trend is to outsource even lower on the food chain to nations like Argentina , as a way to find more desperate workers to enslave at a lower cost. While these jobs seem like a Godsend, foreign workers will soon see the longer-term effects of corporate globalization. Already, many U.S. corporations have finessed themselves into the hip-pocket of foreign politicians and other officials to discourage unions, ensuring wages remain low and benefits never materialize.


?? (See Ya' Later) Yankee


As the economy continues its downward spiral, it remains to be seen how much longer China keeps its currency undervalued once it realizes U.S. consumers have no more money to buy their goods. Once the verdict is out, China could begin to focus on internal growth as the recession spreads globally. The global effects are already surfacing, with inflation soaring, real estate plummeting and foreign banks scrambling as they wait for the next Bear Stearns. The Chinese government could encourage its consumers to spend domestically. This would prove as a great strategy to buoy its economy since Chinese have amble savings (they save 25% of household income). Thus, once China is convinced U.S. consumers are finished, there is a good chance it will begin a gradual sell-off of U.S. Treasury securities. And this is going to be a huge problem.


The Middle East also has a huge trade surplus with the U.S. But unlike China , it has no incentive to hold U.S. Treasuries. Instead, Middle Eastern investors use their petrodollars to buy hard assets – commercial real estate like the Chrysler building, businesses and other critical U.S. assets. Yet, they still can't seem to find enough things to buy, so many Middle Eastern cities are being gutted and turned into modern architectural wonders. In the recent past when U.S. banks have begged for mercy, Dubai , Kuwait and Saudi Arabia have handed over billions from their sovereign “oil extortion” funds. But they've learned their lesson, so I wouldn't expect anymore bailout money anytime soon. Never fear! The Fed and the U.S. Treasury are here!


The Federal Reserve Disaster


The Fed needs to let a real recession run its course to clear out the trash so the economy can begin a real recovery and expansion. They've been playing this boom-bust game for several years now. And all we have seen are illusions of growth followed by the realities of mismanagement and excess consumption. Running the printing presses in overdrive won't get America out of this mess. It hasn't helped in the past and it's not going to now. In fact, using the money supply to hold off a recession and prevent bank failures ensures there will an even more devastating crisis down the road . Greenspan tried the same move in response to the Internet meltdown. And as we all know, this led to the current real estate bubble and banking crisis.
But even shutting down the Fed's printing presses is insufficient for a lasting and real recovery. Washington absolutely must restructure free trade so that the playing field is level for all participant nations. This implies that America structure a universal healthcare system. And America 's badly broken free market system must be repaired, because as it stands today, it represents socialism for the wealthy.


As a result of the combined actions of Washington 's Three Stooges, the harsh effects of this corrective period will send America into its worst recession in several decades. Thereafter, a silent depression will persist for many years as Americans struggle to keep pace with inflation, job quality continues to decline and opportunities for the working class vanish into thin air. While U.S. living standards have been in decline for over two decades, the silent depression will accelerate and make these declines more permanent.


It's highly unlikely the rest of the world will be able to escape the pain caused by Washington 's Three Stooges because the dollar-oil link is used to hold every nation financial hostage. China will feel the effects as will India ; and yes, even Brazil . Unlike America 's fate, these developing nations will mount a full recovery. And the lessons learned could strengthen the pressure to dethrone the dollar as the universal currency. But don't expect Washington to take this lying down. In fact, it might eventually lead to a major war.


Perhaps the only region that will have some insulation from the meltdown will be select oil-rich nations in the Middle East . But they aren't likely to walk out of this completely unscathed due to contained oil demand. But let's not forget that OPEC has control over pricing. The payback period is going to affect virtually everyone. And for those who think they will avert the payback – namely those most responsible for this mess - like Washington 's Three Stooges and bank CEOs - their payback will last eternity because their role in America 's Financial Apocalypse will be recorded in history books.


By Mike Stathis

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