Blipits

[Bobby Lee Swagger]

Bahrain-Saudi Arabia union ‘meant to save US Navy base’
http://www.rt.com/news/bahrain-saudi-arabia-union-551/" onclick="window.open(this.href);return false;

Bahrain Warns Iran Against Interference
http://www.rferl.org/content/bahrain-wa ... 84429.html" onclick="window.open(this.href);return false;

Iranian protesters denounce Saudi-Bahrain union plan
http://www.reuters.com/article/2012/05/ ... 2G20120518" onclick="window.open(this.href);return false;

(Reuters) - Moody's Investor Service carried out a sweeping downgrade of 16 Spanish banks on Thursday, including Banco Santander, the euro zone's largest bank, citing a weak economy and the government's reduced ability to support troubled lenders.
http://www.reuters.com/article/2012/05/ ... GC20120518" onclick="window.open(this.href);return false;

Spanish Bad-Loans Ratio at 8.37 Percent, a 17-Year High; CDS at Record High; Bankia Suffers Huge Losses Purchasing 15.5 Million Its Own Shares to Stabilize Price; Spain Hires Goldman Sachs to Value Bankia
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

"The danger now is that panic will set in as the population races to get their money out resulting in the self-fulfilling prophecy of a 'run on the banks'. We witnessed this situation here in the UK back in 2008 when people queued for hours to withdraw cash from the doomed Northern Rock. The difference now is that a large number of banks and nations are affected and the risk of 'contagion' is acute."
http://www.portfolio-adviser.com/news/m ... ains-banks" onclick="window.open(this.href);return false;

Bankia was forced to deny a report customers had taken 1bn euros ($1.3bn; £800m) out of the bank, which is set to be part-nationalised, in the past week. Spain's economy minister denied reports of a surge in withdrawals from Bankia in recent days.
"It's not true that there is an exit of deposits at this moment from Bankia," said Fernando Jimenez Latorre. Later, the bank's chief executive said volumes had been "basically normal".

http://www.bbc.co.uk/news/business-18100049" onclick="window.open(this.href);return false;

A few days ago we suggested that this action by LCH.Clearnet was only a matter of time. Sure enough, as of minutes ago the bond clearer hiked margins on all Spanish bonds with a duration of more than 1.25 years. Net result: the Spanish Banks which by now are by far the largest single group holder of Spanish bonds, has to post even more collateral beginning May 25. Only problem with that: it very well may not have the collateral.
http://www.zerohedge.com/news/lch-hikes ... nish-bonds" onclick="window.open(this.href);return false;

Ireland may be forced into a second bailout by mounting loan losses in its banking system, according to Deutsche Bank AG.
http://www.bloomberg.com/news/2012-05-1 ... -says.html" onclick="window.open(this.href);return false;

ROME — Italy increased security Thursday at 14,000 sites, and assigned bodyguards to protect 550 individuals after a nuclear energy company official was shot and letter bombs directed to the tax collection agency.
http://www.ajc.com/news/nation-world/it ... news_82109" onclick="window.open(this.href);return false;

LONDON—Banco Santander SA's U.K. unit lost about £200 million of deposits on Friday as jittery customers worried about the lender's financial health, according to a senior executive.
http://online.wsj.com/article/SB1000142 ... 15970.html" onclick="window.open(this.href);return false;

China's yuan is on track to become the world's third international reserve currency
http://www.business-standard.com/india/ ... es/474401/" onclick="window.open(this.href);return false;

The fact that GM's "stunning" car sales have been in no small part driven exclusively by its eagerness to stuff dealers with unsold inventory, aka channel stuffing, is well known to Zero Hedge readers - we have been covering the subject for over a year now. What we did not know, yet what in retrospect is so glaringly obvious, is that the GM ploy of fooling the dumbest sellside analysts and investors all the time has now gone global. And while channel stuffing may have worked for a while, it is now starting to bite back. Bloomberg reports: "Chinese dealers are struggling with the rising number of unsold cars that’s threatening to deepen price cuts, according to the nation’s biggest automobile dealers’ association. Dealerships for Honda Motor Co., Chery Automobile Co., BYD Co. and Geely Automobile Holdings Ltd. carried more than 45 days of inventory as of the end of April, exceeding the threshold that foreshadows debilitating price cuts, Su Hui, vice president of the auto market division at the state-backed China Automobile Dealers Association, said in an interview yesterday. Unsold cars are crowding dealer lots in cities from Guangzhou in the south to Xi’an to the west,” Su said in a phone interview yesterday from Beijing. “It’s like a contagious disease that will spread." Wait, so Channel Stuffing is... bad? And if 45 days of inventory "foreshadows debilitating price cuts", then what should GM with its 86 days of full vehicle days supply in the US say?

And just in case one thought GM is not repeating its US mistakes elsewhere, guess again: "The warning signals that vehicle deliveries reported by companies, which have risen more than analysts’ estimates for the past two months, aren’t fully translating to consumer sales. Demand was the slowest in the first four months since 1998, weighing on automakers from General Motors Co. (GM) to Volkswagen AG (VOW), which are counting on the world’s largest auto market to offset slumping sales in Europe."

http://www.zerohedge.com/news/chinese-c ... uts-arrive" onclick="window.open(this.href);return false;

...deflation.

House Passes Stealth Legislation
http://original.antiwar.com/giraldi/201 ... gislation/" onclick="window.open(this.href);return false;

Volcano Sakurajima
http://www.youtube.com/watch?feature=pl ... wLnWzj-r20" onclick="window.open(this.href);return false;

Blasts Continue to Menace People Near Mexican Volcano
http://www.earthweek.com/2012/ew120518/ew120518d.html" onclick="window.open(this.href);return false;

[Bobby Lee Swagger]

When JPMorgan first announced that its CIO office had blundered into a huge trading loss, the number was pegged at $2 billion, though the company said it could go higher.

Then the loss was reported to be $3 billion.

And now....

$5 billion or more?

http://www.businessinsider.com/jpmorgan ... z1vUzpRQD2" onclick="window.open(this.href);return false;

Off the wires this morning, JP Morgan says it is "suspending" its share repurchase program.
http://market-ticker.org/akcs-www?singlepost=2944222" onclick="window.open(this.href);return false;

On US bank exposure in Europe, see “Jamie Dimon’s body language”. I have commented at length about the dearth of good collateral, so JPM potential exposure to this aspect should be no surprise. And don’t be surprised if they just do another “chaotic” money snatch MF Global style if it gets rough. Derivative contracts are dominated by Too Big To Saves like Deutsche Bank, Goldman Sachs and JP Morgan.

So this Swissie trade could be described as a catch up bet against the last Ponzi in the race to the bottom sweepstakes. The risk is that the Euro breaks down against the USD and the Swiss squander billions trying to keep up. That event is what the speculators have already gone heavily offside betting on (see second chart).

http://forums.wallstreetexaminer.com/to ... tle-minds/" onclick="window.open(this.href);return false;

Multinationals sweep euros from accounts on daily basis
http://www.telegraph.co.uk/finance/comm ... basis.html" onclick="window.open(this.href);return false;

One chart is all it takes to prove a full-fledged European bank run on the banks is well underway in the Club-Med countries and Ireland.
http://blogs.ft.com/gavyndavies/2012/05 ... z1vSKCiBSS" onclick="window.open(this.href);return false;
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

European Capital (Out)flows And Another €215 Billion In Spanish Deposit Flight
http://www.zerohedge.com/news/elephant- ... sit-flight" onclick="window.open(this.href);return false;

Germans Just Say No To Greek Tourism, As Holiday Bookings Plunge By 30%
http://www.zerohedge.com/news/germans-j ... -plunge-30" onclick="window.open(this.href);return false;

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
http://www.rollingstone.com/politics/bl ... g-20120515" onclick="window.open(this.href);return false;

The NY Fed will carry out the auction of $1.67B of CDO's from Maiden Lane III on Thursday after delaying the sale last week because of additional information that hadn't "been made available to the bidders." The auction is one of two planned sales from Maiden Lane III.
http://seekingalpha.com/currents/post/3 ... ource=feed" onclick="window.open(this.href);return false;

Earlier this week, I ranted a bit on how countries like Australia and Canada have only been able to keep their housing/banking sectors over-inflated throughout this whole global mess by the good graces of artificially high commodity prices. These high prices keep their mining industries profitably expanding and producing jobs, bringing in overseas capital investment, supporting the export sector, generating tax revenues, and, of course, propping up a very fragile banking system. The latter occurs indirectly through the buffering of otherwise saturated demand in property markets, as well as directly through investments in the mining sector.

Sites like TAE, aided by the insights of analysts like Australian economist Dr. Steve Keen, have said that these trends cannot last for much longer. In an era of systemic credit contraction, every industry will eventually suffer, no matter how resilient it has seemed to be in the past. It now seems like the world's largest mining company, BHP Billiton (based in Australia), also agrees that the ever-important mining industry will come under a lot of pressure in the near future as commodity prices bounce off against their peaks, due to plummeting demand in Europe and slightly-less plummeting demand in China (the largest source of demand).

What that implies for the fate of the massive housing bubble in Australia and associated banks/businesses/households is, in short, NOT good. Without all those jobs, investment capital, revenues and taxes flowing in and through the economy, there is nothing left to insulate the Australians from the Big Bad Credit Monster. And if you don't trust the word of a megalithic corporation such as BHP, I don't really blame you, but you can still see these concerns clearly reflected in their actions.

http://theautomaticearth.org/Finance/ca ... thers.html" onclick="window.open(this.href);return false;

Chinese Buyers Defaulting On Commodity Shipments As Prices Plunge
http://www.zerohedge.com/news/chinese-b ... ces-plunge" onclick="window.open(this.href);return false;

These Are The Colleges That Will Be Screwed When The Student Loan Bubble Pops
http://www.businessinsider.com/student- ... ail-2012-5" onclick="window.open(this.href);return false;

Government tyranny: Illinois Department of Agriculture secretly destroys beekeeper's bees and 15 years of research proving Monsanto's Roundup kills bees
http://www.naturalnews.com/035920_beeke ... _raid.html" onclick="window.open(this.href);return false;

As the first chart below shows, the primary cost center associated with the obese conditions - diabetes - has certainly gripped a substantial portion of the US population, at last count affecting at least 10% of the population. Yet as chart #2 shows, America, with its $23.7 million diabetes cases, actually has it good. Because when compared to countries without a social safety net, such as China and India, the US diabetes problem is child's play. With 90 million diabetes cases in China, and 61.3 million in India, or nearly half of the total 346 million worldwide diabetes cases, perhaps it is time for the developing world to worry how they plan on funding the billions of associated costs, as they assimilate more and more of the worst American habits. Because as the International Diabetes Foundation says, "In developing countries, the looming costs in human lives, healthcare expenditure and lost productivity threatens to undo recent economic gains."

http://www.zerohedge.com/news/global-di ... as-it-good" onclick="window.open(this.href);return false;

“The United States is taking active moves aimed at developing military cooperation with the countries of the Asia - Pacific region - stationing troops in Australia, building a base in the Philippines. And starting from the next year the US Navy ships will be permanently based in Singapore, i.e. in the narrowest place of the Strait of Malacca, which can be easily blocked off in case of an aggravation of the conflict and thus China will be almost completely cut off from the deliveries of hydrocarbons from the countries of the Middle East and Africa.

http://indrus.in/articles/2012/05/16/co ... 15782.html" onclick="window.open(this.href);return false;

(CNN) -- China's Dalian Wanda Group and AMC Entertainment announced Monday a $2.6 billion deal to take over the U.S. theater group, forming the world's largest cinema chain, according to a new release on the deal.
http://www.cnn.com/2012/05/21/business/ ... ?hpt=hp_t3" onclick="window.open(this.href);return false;

Although the United States has toned down accusations about China's military expansion in its report released on Friday, some judgments made by the Pentagon might still further disrupt rocky Sino-US military ties, some analysts have said.

In its annual report on the development of China's military, the US Department of Defense said China is pursuing fast military modernization to help expand its economic and diplomatic interests around the world, including the possible construction of China's first domestically built aircraft-carrier.

It also claimed China was carrying out aggressive cyber espionage. It further pointed out that many of the cases of global cyber intrusion and data theft in 2011 originated within China, and it said the Chinese government is using cyber technology to collect strategic intelligence from the US government and private companies. Beijing expressed its "firm opposition" to the findings of the annual assessment.

The release of the report was also coupled with an action in the US House of Representatives, which voted to force President Barack Obama's administration to authorize the sale of 66 new fighter jets to Taiwan, which China considers to be historically part of its territory.

However, the measure, part of the National Defense Authorization Act, is not likely to get further approval from the Senate, according to US media.

http://usa.chinadaily.com.cn/world/2012 ... 341752.htm" onclick="window.open(this.href);return false;

The Treasury, apparently dissatisfied with the speed of indirect bank and/or Fed-inspired monetization of its exponentially rising debt-load at ever-cheaper costs of funds, decided in June 2011 to allow the Chinese, with their equally large bucket of USDs to bid directly for US Treasuries. As Reuters reports, China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government.

http://www.zerohedge.com/news/china-can ... t-directly" onclick="window.open(this.href);return false;

....control the money and you control the nation!

A more significant storm is newly-formed Tropical Depression 2-E in the Eastern Pacific, off the coast of Mexico. The depression is taking its time getting organized today due to its large size, as seen on satellite loops. But with favorable SSTs of 29 - 30°C and light to moderate wind shear in the 5 - 15 knot range expected along its path, TD 2-E should steadily organize on Tuesday and Wednesday, and become Hurricane Bud by Thursday. A trough of low pressure is expected to swing north of the storm late this week, turning TD 2-E to the north to a landfall between Manzanillo and Acapulco, Mexico on Friday. This storm has the potential to be a dangerous hurricane for the Mexican coast.
http://www.wunderground.com/blog/JeffMa ... rynum=2099" onclick="window.open(this.href);return false;

Ailments Spread Among Refugees of Sirung Eruption
http://www.thejakartaglobe.com/home/ail ... ion/519153" onclick="window.open(this.href);return false;

Is an eruption at Costa Rica’s Turrialba Volcano imminent?
http://www.ticotimes.net/Current-Editio ... ay-20-2012" onclick="window.open(this.href);return false;

May 19 (Reuters) - Guatemala's Fuego volcano belched burning lava and black ash into the sky early Saturday, leading the government to issue an airplane advisory and close sections of highway.
http://www.reuters.com/article/2012/05/ ... 0420120519" onclick="window.open(this.href);return false;

Italy quake kills 7; survivors huddle in tents, cars
http://www.cnn.com/2012/05/20/world/eur ... topstories" onclick="window.open(this.href);return false;

Death toll rises after Italy quake
http://www.abc.net.au/news/2012-05-21/d ... ke/4022720" onclick="window.open(this.href);return false;

[Bobby Lee Swagger]

Hurricane Bud heads towards Mexico
Hurricane Bud finally took advantage of its favorable environment of low wind shear and warm ocean temperatures and became a Category 2 hurricane this morning. Recent satellite loops show a well-organized storm with a prominent eye, cold eyewall cloud tops, and good low-level spiral banding. It is possible that Bud could attain Category 3 status later today. An Air Force hurricane hunter aircraft will investigate Bud this afternoon to gauge Bud's strength. Hurricanes are uncommon in the Eastern Pacific in May; there have been just twelve since record keeping began in 1949--an average of one May hurricane every five years. The earliest Eastern Pacific hurricane was Hurricane Alma of 1990, which became a hurricane on May 15. There have been only two major Category 3 or stronger May hurricanes. Here is a list of the twelve May hurricanes in the Eastern Pacific:

Forecast for Bud
Bud will continue towards the coast of Mexico the next two days, pulled northwards by a trough of low pressure moving across the U.S. This trough will lift out and a ridge of high pressure will build in its place, and most of the computer models predict Bud will stall just offshore--or get pulled apart so that its low level center stays offshore, and its mid-level center moves inland. NHC is currently basing its track forecast on the ECMWF and GFS models, which were the two best performing models in both 2010 and 2011. An outer spiral band of Bud is already bringing a few heavy rain showers to the coast of Mexico near Manzanillo, and rains will increase in intensity on Friday and Saturday. The hurricane is expected to encounter more hostile condition--dry air, cooler SSTs, and higher wind shear--that will weaken the storm on Friday and Saturday. This should decrease the winds enough so that heavy rain will be the main threat from Bud. The coast where Bud is headed towards is very mountainous, and flash floods and dangerous mudslides will be a concern there. The region was not under drought conditions as of the end of April, but a number of wildfires are currently burning in the area, so Bud's rains may also do some good, by extinguishing these fires.

http://www.wunderground.com/blog/JeffMa ... rynum=2102" onclick="window.open(this.href);return false;

5/24/2012 -- Large Explosive eruption at Sakurajima Volcano - South
http://www.youtube.com/watch?feature=pl ... algguzv4bM" onclick="window.open(this.href);return false;

Officials alert residents near Costa Rican volcano
http://www.thehindu.com/news/article3451209.ece" onclick="window.open(this.href);return false;

In The Arabian Sea...
http://www.zerohedge.com/news/and-meanwhile-arabian-sea" onclick="window.open(this.href);return false;

Kucinich: US 'sanction warfare' makes real Iran war inevitable
http://www.youtube.com/watch?v=SjSGFQYZ ... r_embedded" onclick="window.open(this.href);return false;

U.S. Joint Chiefs of Staff commander General Martin Dempsey visited Colombia on March 29 to announce that within weeks U.S. military personnel will operate from a military base there with the newly formed Vulcan Task Force.

The Vulcan Task Force, which was established in December 2011, has 10,000 soldiers, three mobile brigades and one fixed brigade, operating from a base in Tibú, in the Catatumbo region (North Santander), just two miles from the Venezuela border.'

http://upsidedownworld.org/main/news-br ... o-colombia" onclick="window.open(this.href);return false;

DERIVATIVES: Fed data expose US$100bn JP Morgan blunder
http://www.ifre.com/derivatives-fed-dat ... 78.article" onclick="window.open(this.href);return false;

Nearly one-third (31.4 percent) of U.S. homeowners with mortgages - or 15.7 million - were underwater on their mortgage in the first quarter of 2012, despite rising home values, according to the first quarter Zillow® Negative Equity Report[1]. Collectively, underwater homeowners owed $1.2 trillion more than their homes were worth. Negative equity rose slightly from 31.1 percent in the fourth quarter, and declined from 32.4 percent one year ago.'
http://www.marketwatch.com/story/despit ... 2012-05-24" onclick="window.open(this.href);return false;

Detroit racks up eight killings, 33 shootings in last five days
http://www.detroitnews.com/article/2012 ... |FRONTPAGE" onclick="window.open(this.href);return false;

Cash Crunch Hits Greece, Government Stops Paying Pharmacies, In Turn Pharmacies Make Patients Pay Full Cost
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

China Manufacturing PMI Softens Again, In Contraction For 6 Months; Defaults and Deferrals on Commodity Contracts; As Long As Pigs Have Wings
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

Containment Theory Blows Sky High: German Manufacturing PMI Plunges to 45; French Manufacturing PMI Plunges to 44.4, Sharpest Contraction in 3 Years
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

Misc: Kansas City Fed manufacturing index "Rebounds", "Flash PMI" shows slower expansion, Mortgage Rates at record low
http://www.calculatedriskblog.com/2012/ ... ed+Risk%29" onclick="window.open(this.href);return false;

[Bobby Lee Swagger]

Police urge Greeks to keep money in bank
http://www.guardian.co.uk/world/2012/ma ... CMP=twt_fd" onclick="window.open(this.href);return false;

Morning business round-up: Spain's Bankia shares suspended
http://www.bbc.co.uk/news/business-18206977" onclick="window.open(this.href);return false;

Spain looks set to inject another €19B into Bankia, giving the government about a 90% ownership stake in the troubled lender. This is in addition to €4.5B in preferred shares the government owned and flipped into common 2 weeks ago. The new capital will go towards upping provisions against losses in the bank's real estate portfolio.
http://seekingalpha.com/currents/post/3 ... ource=feed" onclick="window.open(this.href);return false;

Category 2 Hurricane Bud is weakening, but still presents a formidable rainfall threat as it continues north-northeast towards an expected landfall between Manzanillo and Puerto Vallarta, Mexico late Friday night. Thursday night at 11 pm EDT, Bud peaked at Category 3 status, with 115 mph winds, becoming the earliest Category 3 hurricane on record in the Eastern Pacific. Recent Satellite loops show that Bud has weakened, though. The eye has disappeared, and the cloud pattern has shrunk and appears squashed, due to an increase in dry air, wind shear, and cooler sea surface temperatures affecting the storm. These hostile conditions should continue to weaken Bud to a Category 1 hurricane or strong tropical storm by the time of landfall.
http://www.wunderground.com/blog/JeffMa ... rynum=2104" onclick="window.open(this.href);return false;

Introducing Iran’s Newest Attack Helos, Wait a Second.…
http://defensetech.org/2012/05/25/intro ... -a-second/" onclick="window.open(this.href);return false;

Mongolia's Dilemma: Who Gets The Water?
http://www.npr.org/2012/05/22/152698675 ... -the-water" onclick="window.open(this.href);return false;

Cash strapped Detroit has lost 60 percent of its population since 1950. What's left is a sprawling mass of vacant, worthless homes stripped of copper and anything else worthwhile.

Does it make sense to have streetlight in these areas? What about paving cracked sidewalks? What about other services? Is anything salvageable?

To save money, huge sections of the city will be left to the rats. Then again, 40% of Detroit's streetlights do not work already. By that measure, the city has long ago been left to the rats.

http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

Freddie Mac reported earlier today that 30 year mortgage rates had fallen to a record 3.78% in the PMMS®. And the MBA reported yesterday that refinance activity has been increasing again.
http://www.calculatedriskblog.com/2012/ ... ed+Risk%29" onclick="window.open(this.href);return false;

...time for everybody to refinance and monetize whatever equity they have in their homes to pay bills...

[Bobby Lee Swagger]

The Real Unemployment Rate
http://thenewamerican.com/economy/secto ... yment-rate" onclick="window.open(this.href);return false;

Europe Moves Closer to Banktatorship
http://www.counterpunch.org/2012/06/01/ ... tatorship/" onclick="window.open(this.href);return false;

JFK assassination documents offer surprising lessons about government secrecy -- and Obama's presidency
http://www.salon.com/2012/05/31/what_ge ... singleton/" onclick="window.open(this.href);return false;

Gila wildfire becomes biggest in New Mexico history
http://www.latimes.com/news/nation/nati ... 3255.story" onclick="window.open(this.href);return false;

Wildfire shatters record for largest in New Mexico
http://www.msnbc.msn.com/id/47614455/ns ... ew-mexico/" onclick="window.open(this.href);return false;

Biggest wildfire in New Mexico's history burns with only 15% containment
http://www.cnn.com/2012/06/02/us/new-me ... topstories" onclick="window.open(this.href);return false;

Volcano threatens millions in Mexico
http://www.bbc.co.uk/news/world-latin-america-18290809" onclick="window.open(this.href);return false;

Welcome to the month of June. This is also the month that Venus will pass between the Sun and Earth. The transit will take place starting on June 5th and will be the only chance (in our lifetime) to see this special event take place. Stay Tuned.
http://www.solarham.net/" onclick="window.open(this.href);return false;

Latest Palmoni Scroll with revised interpretation of timing
http://gigapan.com/gigapans/106673" onclick="window.open(this.href);return false;

[shadow]

Latest Palmoni Scroll with revised interpretation of timing
http://gigapan.com/gigapans/106673" onclick="window.open(this.href);return false;

Thank you!

[BroJones]

Europe Moves Closer to Banktatorship
http://www.counterpunch.org/2012/06/01/ ... tatorship/" onclick="window.open(this.href);return false;

...
Latest Palmoni Scroll with revised interpretation of timing
http://gigapan.com/gigapans/106673" onclick="window.open(this.href);return false;

The concept of "Banktatorship" ... interesting POV...

The eurozone’s permanent bailout fund, the ESM, has not yet been ratified by all 17 members and already the European Commission wants to change its mandate to include direct bailouts to banks. The direct funding of underwater banks is a blatant power-grab, an attempt to establish the primacy of banks in the same way that the TARP was used to create Too Big To Fail in the US. TBTF means that the banks have merged with the state and that taxpayers provide blanket guarantees for their survival. Europe is moving fast towards this same model.

And I looked at the Palmoni scroll -- looks like a prediction for major changes starting this month of June 2012:

[Jason]

Interesting times....should be few dull moments from here on out IF he's correct.

[Bobby Lee Swagger]

Bilderberg 2012: detailed member bios, UK Guardian’s video interview
http://www.dailycensored.com/2012/06/03 ... ensored%29" onclick="window.open(this.href);return false;

The Bank for International Settlements (BIS) said cross-border loans fell by $799bn (£520bn) in the fourth quarter of 2011, led by a broad retreat from Italy, Spain and the eurozone periphery.

Lending to banks in the eurozone fell $364bn or 5.9pc, with drastic reductions of 9.8pc in Italy and 8.7pc in Spain.

The BIS's quarterly report said the decline in lending was "largely driven by banks headquatered in the euro area facing pressures to reduce their leverage.''

http://www.telegraph.co.uk/finance/fina ... risis.html" onclick="window.open(this.href);return false;

Banks Cut Cross-Border Lending Most Since Lehman: BIS
http://www.businessweek.com/news/2012-0 ... =bloomberg" onclick="window.open(this.href);return false;

Investors Brace for Slowdown
http://online.wsj.com/article/SB1000142 ... lenews_wsj" onclick="window.open(this.href);return false;

BEIJING, June 4 (Xinhua) -- China's banking regulator has told major state lenders to check the quality of their loans to prevent bad loans from deteriorating as the economy softens, local media reported on Monday.
http://english.peopledaily.com.cn/90778/7835194.html" onclick="window.open(this.href);return false;

Japanese Stocks Hit 28-Year Low, 9 Straight Weeks of Losses, Longest Streak in 20 Years
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

The day the credit markets awake from a slumber – $1 trillion in consumer debt currently delinquent. Student debt continues to grow adding fuel to the higher education bubble.
http://www.mybudget360.com/credit-marke ... s-q1-2012/" onclick="window.open(this.href);return false;

The market seemed to be stunned that pending home sales fell in spite of mortgage rates being so low that they are essentially tracking inflation. Yet the narrow focus on financial liquidity still continues to miss the slow degradation of the American household balance sheet.
http://www.doctorhousingbubble.com/emer ... es-luxury/" onclick="window.open(this.href);return false;

Western banks 'reaping billions from Colombian cocaine trade'
http://www.guardian.co.uk/world/2012/ju ... CMP=twt_gu" onclick="window.open(this.href);return false;

Four Horsemen, CIA & the Colombian Coca Express
http://deanhenderson.wordpress.com/2012 ... a-express/" onclick="window.open(this.href);return false;

States explore new ways to tax motorists for road repair
http://www.usatoday.com/news/nation/sto ... 55367022/1" onclick="window.open(this.href);return false;

'Significant' rise in electric bills seen
http://money.cnn.com/2012/06/04/news/ec ... ?iid=HP_LN" onclick="window.open(this.href);return false;

There was an argument, brought forth by several bright people; that the odds of Inflation or Deflation were about in balance for the remainder of this year. I think the needle has swung though and that Deflation, and perhaps serious Deflation, is just ahead of us. Every country in Europe is in a Recession with the exception of Germany but I predict that they are going to be dragged into the Club in the next quarter. The aggregate demand for goods and services is markedly declining all across Europe and the Target2 remedy to finance purchases is no longer providing the desired effect as financing only helps when demand is present and once demand has declined it makes very little difference as to the cost or availability of funding.

http://www.zerohedge.com/news/deflation" onclick="window.open(this.href);return false;

....deflation has been the statu quo since 2008....

Wells Fargo Seizes Stockton California City Hall, Parking Garages; City Prepares Bankruptcy Contingency Plans; Bondholder Mediation Underway
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

City Council of North Las Vegas Unanimously Suspends Collectively Bargaining of Public Unions, Citing Emergency Statutes
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

As the 99% Movement Evolves, It’s Time to Go All In on Money Out
http://ampedstatus.org/as-the-99-moveme ... money-out/" onclick="window.open(this.href);return false;

South Korea Planning Major Increase in Missile Force
http://defense-update.com/20120604_sout ... +Update%29" onclick="window.open(this.href);return false;

Taiwan Deploys Cruise Missiles With Range to Reach Chinese Mainland
http://defense-update.com/20120604_taiw ... +Update%29" onclick="window.open(this.href);return false;

Israel fitting nuclear arms on German-supplied subs: report
http://ca.news.yahoo.com/israel-fitting ... 55787.html" onclick="window.open(this.href);return false;

Winter Hits Europe – Stockholm Has Coldest Day in 84 Years! Sweden Coldest Temperature In 20 Years!
http://notrickszone.com/2012/06/03/wint ... -20-years/" onclick="window.open(this.href);return false;

(Reuters) - High winds, heavy rains and six tornadoes have descended on the mid-Atlantic region, causing at least one serious injury but no deaths and damaging homes, businesses and boats, officials said on Saturday
http://www.reuters.com/article/2012/06/ ... GZ20120603" onclick="window.open(this.href);return false;

Solar activity has been fairly low with the exception of the impulsive M3.3 solar flare around Sunspot 1496 on Sunday afternoon. Somewhat of a Coronal Mass Ejection (CME) was generated but does not look to be Earth directed. There will continue to be a chance for C-Class flares on Monday.

The Bz component of the interplanetary magnetic field (IMF) tipped sharply south for long periods on Sunday and this allowed the solar wind to flow in. A minor G1 Level Geomagnetic Storm was observed at very high latitudes.

http://www.solarham.net/" onclick="window.open(this.href);return false;

Magnitude 6.4 - SOUTH OF PANAMA
http://earthquake.usgs.gov/earthquakes/ ... 00a66u.php" onclick="window.open(this.href);return false;

Magnitude 6.2 - SOUTH OF PANAMA
http://earthquake.usgs.gov/earthquakes/ ... 00a664.php" onclick="window.open(this.href);return false;

[Original_Intent]

I see Japan is working on turning "the lost decade" into "the lost century".....

[Thomas]

Bobby Lee Swagger said:
There was an argument, brought forth by several bright people; that the odds of Inflation or Deflation were about in balance for the remainder of this year. I think the needle has swung though and that Deflation, and perhaps serious Deflation, is just ahead of us. Every country in Europe is in a Recession with the exception of Germany but I predict that they are going to be dragged into the Club in the next quarter. The aggregate demand for goods and services is markedly declining all across Europe and the Target2 remedy to finance purchases is no longer providing the desired effect as financing only helps when demand is present and once demand has declined it makes very little difference as to the cost or availability of funding.

I think deflationary data is being driven by falling housing prices. Housing needed a big correction. It's painting a skewed picture, Pretty much everything else has risen in price since 2008. Food, cars, clothing and gas are way up. I shop for groceries with my wife, quite often. Prices are up by at least 40 percent since 2008. Demand may be down for housing and consumer luxury goods but prices for necessities are way up.

[Original_Intent]

Bobby Lee Swagger said:
There was an argument, brought forth by several bright people; that the odds of Inflation or Deflation were about in balance for the remainder of this year. I think the needle has swung though and that Deflation, and perhaps serious Deflation, is just ahead of us. Every country in Europe is in a Recession with the exception of Germany but I predict that they are going to be dragged into the Club in the next quarter. The aggregate demand for goods and services is markedly declining all across Europe and the Target2 remedy to finance purchases is no longer providing the desired effect as financing only helps when demand is present and once demand has declined it makes very little difference as to the cost or availability of funding.

I think deflationary data is being driven by falling housing prices. Housing needed a big correction. It's painting a skewed picture, Pretty much everything else has risen in price since 2008. Food, cars, clothing and gas are way up. I shop for groceries with my wife, quite often. Prices are up by at least 40 percent since 2008. Demand may be down for housing and consumer luxury goods but prices for necessities are way up.

Has the price of labor gone up 40% since 2008? Don't confuse price inflation with monetary inflation (or deflation).

We still live in a very Keynesian world, price supports of everything are seen as just about the greatest thing ever, even if it means destruction of goods to keep prices up. (burning crops or bulldozing "excess" homes.)

[Thomas]

Bobby Lee Swagger said:
There was an argument, brought forth by several bright people; that the odds of Inflation or Deflation were about in balance for the remainder of this year. I think the needle has swung though and that Deflation, and perhaps serious Deflation, is just ahead of us. Every country in Europe is in a Recession with the exception of Germany but I predict that they are going to be dragged into the Club in the next quarter. The aggregate demand for goods and services is markedly declining all across Europe and the Target2 remedy to finance purchases is no longer providing the desired effect as financing only helps when demand is present and once demand has declined it makes very little difference as to the cost or availability of funding.

I think deflationary data is being driven by falling housing prices. Housing needed a big correction. It's painting a skewed picture, Pretty much everything else has risen in price since 2008. Food, cars, clothing and gas are way up. I shop for groceries with my wife, quite often. Prices are up by at least 40 percent since 2008. Demand may be down for housing and consumer luxury goods but prices for necessities are way up.

Has the price of labor gone up 40% since 2008? Don't confuse price inflation with monetary inflation (or deflation).

We still live in a very Keynesian world, price supports of everything are seen as just about the greatest thing ever, even if it means destruction of goods to keep prices up. (burning crops or bulldozing "excess" homes.)

It matters little to those buying food or gasoline. The price of labor is down. I"ll believe deflation when gasoline goes back to 99cents a gallon. The markets are still betting on more QE. The price of gasoline is a good indicator of what's hapenning. Grocery stores are not going to sell food for less than it costs to ship and produce.

[Original_Intent]

So what is it called when you have price inflation and monetary deflation? I'd say it is a "target-rich environment" if you consider the banksters the hunters and the property of individuals the target.

You say you think deflationary indicators are being pushed by dropping home prices. No, home prices are not dropping that much, they are being supported aginst the market which would drive prices down if they could. But the banks won't allow it, they want to keep home prices high.

Some say that banks don't want to foreclose, they want mortgages being paid. Anyone that says so is either a shill or they have been fooled - TPTB want property, which is true capital.

(Not saying that is the case of your local bank, but it is at the top of the food chain.)

[Thomas]

So what is it called when you have price inflation and monetary deflation? I'd say it is a "target-rich environment" if you consider the banksters the hunters and the property of individuals the target.

You say you think deflationary indicators are being pushed by dropping home prices. No, home prices are not dropping that much, they are being supported aginst the market which would drive prices down if they could. But the banks won't allow it, they want to keep home prices high.

Some say that banks don't want to foreclose, they want mortgages being paid. Anyone that says so is either a shill or they have been fooled - TPTB want property, which is true capital.

(Not saying that is the case of your local bank, but it is at the top of the food chain.)

I agree, banks are not forclosing, in some areas, to prop up prices. Home prices have dropped quite a bit, inspite of this. There could be something more sinister going on with this. Drop a couple million homes on the market at the same time. That would kill the market.

Natural forces are not in charge of what's going down. I think we are being setup for a major event.

Things like labor costs are not always linked to the money supply, just like commodites are not always linked. We have no idea what the true money supply is. A flood of money could hit at any time.

[BroJones]

So what is it called when you have price inflation and monetary deflation? I'd say it is a "target-rich environment" if you consider the banksters the hunters and the property of individuals the target.
... TPTB want property, which is true capital.

Certainly can agree with that!
We see the Gadianton robbers in the Book of Mormon as parasites -- sucking the wealth out of the economy. It "reads like the morning newspaper" -- as President Hinckley said (Aug 2005 Ensign), speaking of the Gadiantons = "scheming leaders" (his term).

Finally, in 3 Nephi 3, the people awakened and "rebelled" and stopped feeding the Gadiantons! But shortly before that, we read in 3 Nephi 1:

for behold, they had many children who did grow up and began to wax strong in years, that they became for themselves, and were led away by some who were Zoramites, by their lyings and their flattering words, to join those Gadianton robbers.

Sigh...

[Col. Flagg]

That was a hard photograph to swallow and makes you want to :ymsick: .

[Jason]

Bobby Lee Swagger said:
There was an argument, brought forth by several bright people; that the odds of Inflation or Deflation were about in balance for the remainder of this year. I think the needle has swung though and that Deflation, and perhaps serious Deflation, is just ahead of us. Every country in Europe is in a Recession with the exception of Germany but I predict that they are going to be dragged into the Club in the next quarter. The aggregate demand for goods and services is markedly declining all across Europe and the Target2 remedy to finance purchases is no longer providing the desired effect as financing only helps when demand is present and once demand has declined it makes very little difference as to the cost or availability of funding.

I think deflationary data is being driven by falling housing prices. Housing needed a big correction. It's painting a skewed picture, Pretty much everything else has risen in price since 2008. Food, cars, clothing and gas are way up. I shop for groceries with my wife, quite often. Prices are up by at least 40 percent since 2008. Demand may be down for housing and consumer luxury goods but prices for necessities are way up.

Has the price of labor gone up 40% since 2008? Don't confuse price inflation with monetary inflation (or deflation).

We still live in a very Keynesian world, price supports of everything are seen as just about the greatest thing ever, even if it means destruction of goods to keep prices up. (burning crops or bulldozing "excess" homes.)

It matters little to those buying food or gasoline. The price of labor is down. I"ll believe deflation when gasoline goes back to 99cents a gallon. The markets are still betting on more QE. The price of gasoline is a good indicator of what's hapenning. Grocery stores are not going to sell food for less than it costs to ship and produce.

You'll be waiting awhile in this bank fueled speculative environment....meanwhile deflation will continue to grind down upon everyone while bank speculation drives up the price of commodities...

[Jason]

So what is it called when you have price inflation and monetary deflation? I'd say it is a "target-rich environment" if you consider the banksters the hunters and the property of individuals the target.

You say you think deflationary indicators are being pushed by dropping home prices. No, home prices are not dropping that much, they are being supported aginst the market which would drive prices down if they could. But the banks won't allow it, they want to keep home prices high.

Some say that banks don't want to foreclose, they want mortgages being paid. Anyone that says so is either a shill or they have been fooled - TPTB want property, which is true capital.

(Not saying that is the case of your local bank, but it is at the top of the food chain.)

I agree, banks are not forclosing, in some areas, to prop up prices. Home prices have dropped quite a bit, inspite of this. There could be something more sinister going on with this. Drop a couple million homes on the market at the same time. That would kill the market.

Natural forces are not in charge of what's going down. I think we are being setup for a major event.

Things like labor costs are not always linked to the money supply, just like commodites are not always linked. We have no idea what the true money supply is. A flood of money could hit at any time.

Not as long as its created by debt and that debt has to be paid back....with interest! No floods until the creation mechanism changes....and Europe is finding that out the hard way as the banks take over and enforce austerity (claim assets in lieu of debt that can't be paid back)!

[Jason]

The Hoarding Continues: China Purchases A Record 100 Tons Of Gold In April From Hong Kong
http://www.zerohedge.com/news/hoarding- ... -hong-kong" onclick="window.open(this.href);return false;

....hoarding or preparing for the new global currency based on gold???

[Thomas]

So what is it called when you have price inflation and monetary deflation? I'd say it is a "target-rich environment" if you consider the banksters the hunters and the property of individuals the target.

You say you think deflationary indicators are being pushed by dropping home prices. No, home prices are not dropping that much, they are being supported aginst the market which would drive prices down if they could. But the banks won't allow it, they want to keep home prices high.

Some say that banks don't want to foreclose, they want mortgages being paid. Anyone that says so is either a shill or they have been fooled - TPTB want property, which is true capital.

(Not saying that is the case of your local bank, but it is at the top of the food chain.)

I agree, banks are not forclosing, in some areas, to prop up prices. Home prices have dropped quite a bit, inspite of this. There could be something more sinister going on with this. Drop a couple million homes on the market at the same time. That would kill the market.

Natural forces are not in charge of what's going down. I think we are being setup for a major event.

Things like labor costs are not always linked to the money supply, just like commodites are not always linked. We have no idea what the true money supply is. A flood of money could hit at any time.

Not as long as its created by debt and that debt has to be paid back....with interest! No floods until the creation mechanism changes....and Europe is finding that out the hard way as the banks take over and enforce austerity (claim assets in lieu of debt that can't be paid back)!

That is if money is being created with debt attached to it. The fed can give money to anyone they want. They can play by their own rules. There is no oversite. They can give money to entities they own and control. There is some evidence this has been taking place, in the last few years. I may dig some up for you later. Some have said they will flood this money, at a certain time, to kill the dollar. This wouild take place after they have bought up whatever assets they want. I would say they already have much more than we realize.

[jonesde]

That is if money is being created with debt attached to it. The fed can give money to anyone they want. They can play by their own rules. There is no oversite. They can give money to entities they own and control. There is some evidence this has been taking place, in the last few years. I may dig some up for you later. Some have said they will flood this money, at a certain time, to kill the dollar. This wouild take place after they have bought up whatever assets they want. I would say they already have much more than we realize.

Good point Thomas. There are various ways that the Fed can push money into the market that don't involve an active loan.

One tricky thing I read about years ago was the Fed literally buying stocks and bonds. They can't legally buy them directly, but what they did is to loan money to investment banks and the investment banks would buy stocks and bonds, and then the investment banks would conveniently "default" on the loan and the Fed would repossess the paper assets... making them Fed property.

In theory you'll only get price inflation if monetary inflation outpaces increase of value in the economy, and the productivity of the economy. If paper assets (easy to create) and economic growth keep up with the increase in money supply, there is no need for the prices of goods to go up. In other words, if there are more "goods" then there can be more "money" without the price of those goods going up. Because of this the Fed can loan out massive amounts of money without risking near-term inflation... just create paper assets to balance things out. In the process those who tend to own lots of paper assets are the more wealthy, and they just grow in wealth.

About the idea that banks and wealthy folks want assets, that's true but only to a certain extent. They don't care about our stupid houses so much, unless those houses can be used to generate an income for them.

What they really want is to be able to get other people to do whatever they want. That is always the reason for corrupting government and economic systems... getting other people to do things. Getting other people to do things on a large scale is the only way to have massive houses, fancy transportation, friends on demand, any type of food you want, any type of training and personal assistance you want, endless free time and work that involves either manipulating people if that is your thing, or stomping around and demanding things if that is your style. Either way, it doesn't involve hard physical or mental work. For those really connected, it also doesn't involve risk... they set things up so that other people take the risk... not them.

[Jason]

That is if money is being created with debt attached to it. The fed can give money to anyone they want. They can play by their own rules. There is no oversite. They can give money to entities they own and control. There is some evidence this has been taking place, in the last few years. I may dig some up for you later. Some have said they will flood this money, at a certain time, to kill the dollar. This wouild take place after they have bought up whatever assets they want. I would say they already have much more than we realize.

Good point Thomas. There are various ways that the Fed can push money into the market that don't involve an active loan.

One tricky thing I read about years ago was the Fed literally buying stocks and bonds. They can't legally buy them directly, but what they did is to loan money to investment banks and the investment banks would buy stocks and bonds, and then the investment banks would conveniently "default" on the loan and the Fed would repossess the paper assets... making them Fed property.

In theory you'll only get price inflation if monetary inflation outpaces increase of value in the economy, and the productivity of the economy. If paper assets (easy to create) and economic growth keep up with the increase in money supply, there is no need for the prices of goods to go up. In other words, if there are more "goods" then there can be more "money" without the price of those goods going up. Because of this the Fed can loan out massive amounts of money without risking near-term inflation... just create paper assets to balance things out. In the process those who tend to own lots of paper assets are the more wealthy, and they just grow in wealth.

About the idea that banks and wealthy folks want assets, that's true but only to a certain extent. They don't care about our stupid houses so much, unless those houses can be used to generate an income for them.

What they really want is to be able to get other people to do whatever they want. That is always the reason for corrupting government and economic systems... getting other people to do things. Getting other people to do things on a large scale is the only way to have massive houses, fancy transportation, friends on demand, any type of food you want, any type of training and personal assistance you want, endless free time and work that involves either manipulating people if that is your thing, or stomping around and demanding things if that is your style. Either way, it doesn't involve hard physical or mental work. For those really connected, it also doesn't involve risk... they set things up so that other people take the risk... not them.

Yes good point. Of course in order to get rampant inflation (outside of speculation in commodities) you need to get that money out to the masses. How do you do it outside of the debt creation mechanism? Especially in a debt saturated society/economy?

I think they are out to destroy the dollar and working towards transitioning the world into a single currency with singular control points and power structure (probably based on gold or at least a digital derivative of it). I also think they are going to fall into the pit they are digging. How it will all work out and what the respective timing works out to be????? I don't know and I doubt anyone else does without divine guidance. I know the prophets have repetitively reiterated for multiple decades to stay out of debt or to get out of debt. If the currency is going to zero then it would be wise to bury oneself in debt....and I think they don't give unwise counsel. All those dollar loans have to be paid back in dollars or forfeiture of assets. Until I see free money (no debt strings attached) being dropped from helicopters to the masses (demand picks up, job creation, wage increases, etc)....I'm staying on the deflation prediction/assumption with the belief that commodity prices will ultimately fall as demand collapses and speculation runs come up short.

[Bobby Lee Swagger]

Oil Tanker Rates Lowest Since 1997 as Demand in Europe Plunges to 1996 Level, Production in US at 13-Year High; IMF Smoking Happy Dope
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

Risk is now being priced in across the European continent. Money is flowing out of one nation into another as those with funds quickly realize the unwinnable situation. Who better to understand than those on the ground in their respective economies? Bond spreads are back to crisis levels:
http://www.mybudget360.com/dark-financi ... ove-lower/" onclick="window.open(this.href);return false;

US productivity rate takes largest drop in a year
http://economywatch.msnbc.msn.com/_news ... -year?lite" onclick="window.open(this.href);return false;

The US Labor Market Is In A Full-Blown Depression
http://www.zerohedge.com/news/us-labor- ... depression" onclick="window.open(this.href);return false;

San Diego And San Jose Approve Pension Cuts In A Landslide Vote
http://www.businessinsider.com/san-dieg ... uts-2012-6" onclick="window.open(this.href);return false;

For this generation of young people, the future looks bleak. Only one in six is working full time. Three out of five live with their parents or other relatives. A large majority — 73 percent — think they need more education to find a successful career, but only half of those say they will definitely enroll in the next few years.
http://www.nytimes.com/2012/06/06/busin ... .html?_r=2" onclick="window.open(this.href);return false;

NEW YORK – In its latest Quarterly Report on Household Debt and Credit, the Federal Reserve Bank of New York today announced that student loan debt reported on consumer credit reports reached $904 billion in the first quarter of 2012, a $30 billion increase from the previous quarter.
http://www.declineoftheempire.com/2012/ ... dates.html" onclick="window.open(this.href);return false;

We are very near a deflationary implosion if the money printing doesn’t come soon. Spain said they could finance their own banks, and now they say they need 50 billion euros from the ECB. 50 billion euros is a drop in the ocean, Eric. We’re probably talking about hundreds of billions or maybe one trillion euros they need.
http://kingworldnews.com/kingworldnews/ ... lapse.html" onclick="window.open(this.href);return false;

I expect we will first see deflation and then inflation, but the key is the timing. Today we will examine that question in more detail, as we look at how interest rates could actually be negative (!!!) this week in German and Swiss bonds and why the US ten-year has dipped below 1.5%. The very poor May employment number needs some analysis, too, and we'll check the prospects of a synchronized global slowdown. Rarely have I come to a Friday with so much data that simply begs for a more thorough look, but we will try to hit at least the most important topics.
http://news.goldseek.com/MillenniumWave ... 711039.php" onclick="window.open(this.href);return false;

Predicting that we have another four years until the market absorbs all the excess housing supply, he said that Americans have finally reached an important realization that could change their views on homeownership in the future.

"People now realize, for the first time since 1937, that house prices can and do fall," Shilling said.

"The next event to watch is what happens in the next few quarters," he continued, arguing that major banks and the government "did not want the bad PR of a big wave of foreclosures" while they were mediating an end to the robo-signing crisis. "Now they're going to come back with a vengeance," he predicted.''

http://www.businessinsider.com/gary-shi ... ear-2012-6" onclick="window.open(this.href);return false;

2008 was a practice run, or a warning shot across the bow, compared to what is coming over the next few years.

2008 did not demonstrate what a liquidity crunch really means, but this time we are going to find out. As with many aspects of financial crisis, Greece is the canary in the coalmine, demonstrating what happens when liquidity disappears and it ceases to be possible to connect buyers and sellers or producers and consumers.

As we have said before, and for a long time now, money is the lubricant in the engine of the economy in the way that motor oil is the lubricant in the engine of your car, and you know what will happen to your car if you drive it with the oil warning light on.

Greece stands on the verge of an energy crisis caused not by lack of energy, but lack of money within the energy sector. This will become a common refrain throughout Europe and beyond in the coming months and years. Loss of liquidity has a cascading effect on supply chains, causing them to seize up.

For a long time, money will be the limiting factor, and finance will be the key driver to the downside, just as was the case in the Great Depression of the 1930s. Resources will remain available, at least initially, but no one will have the means to pay for them during a period of economic seizure.

http://theautomaticearth.org/Finance/cr ... ctice.html" onclick="window.open(this.href);return false;

UPDATE 8-Wisconsin's Walker makes history surviving recall election
http://www.reuters.com/article/2012/06/ ... QC20120606" onclick="window.open(this.href);return false;

Meet The Oil Shale Eighty Times Bigger Than The Bakken
http://www.forbes.com/sites/christopher ... shale-oil/" onclick="window.open(this.href);return false;

(Reuters) - Russian President Vladimir Putin said on Wednesday he will boost military cooperation with China, including holding more joint exercises, after the United States announced plans to shift most of its warships to the Asia-Pacific by 2020
http://www.reuters.com/article/2012/06/ ... BG20120606" onclick="window.open(this.href);return false;

President Vladimir Putin has said Russia will cement its military alliance with China, including an increase in joint exercises in the Asia-Pacific.
http://www.strategic-culture.org/news/2 ... drive.html" onclick="window.open(this.href);return false;

Pakistan tests 5th N-capable missile in just 45 days
http://timesofindia.indiatimes.com/worl ... 860444.cms" onclick="window.open(this.href);return false;

BALASORE (ODISHA): India on Wednesday successfully test-fired its indigenously developed surface-to-air 'Akash' missile of Air Force version from the Integrated Test Range at Chandipur near here, the fifth trial of the anti-aircraft system in the last fortnight.
http://timesofindia.indiatimes.com/indi ... 861771.cms" onclick="window.open(this.href);return false;

A nuclear war been India and Pakistan, even if it is limited in nature, would result in major climate disruptions and ultimately, global famine, according to a new study.
http://www.topnews.in/indopak-nuclear-w ... dy-2361440" onclick="window.open(this.href);return false;

GMOs and Glyphosate Linked to Infertility, Botulism and SIDS
http://farmwars.info/?p=8543&utm_source ... rm+Wars%29" onclick="window.open(this.href);return false;

The 2012 transit of Venus is now in the history books and unless Scientists are able to reverse the aging progress, we will never witness this particular event again within our lifetime. The following movies by SDO and GOES-15 Solar X-Ray Imager capture Venus as it passes in between the Sun and Earth.
http://www.solarham.net/" onclick="window.open(this.href);return false;

[Bobby Lee Swagger]

UPDATE 1-France eyes layoffs clampdown as unemployment climbs
http://in.reuters.com/article/2012/06/0 ... 0P20120607" onclick="window.open(this.href);return false;

China cuts interest rates
http://money.cnn.com/2012/06/07/news/ec ... m?iid=Lead" onclick="window.open(this.href);return false;

China Reduces Interest Rates for First Time Since 2008
http://www.bloomberg.com/news/2012-06-0 ... -2008.html" onclick="window.open(this.href);return false;

Mortgage rates sink to new record low
http://money.cnn.com/2012/06/07/real_es ... ?iid=HP_LN" onclick="window.open(this.href);return false;

The US Deleveraging Has Resumed
http://www.zerohedge.com/news/us-deleve ... as-resumed" onclick="window.open(this.href);return false;

But the most disturbing observation is that in one week alone, a whopping 104,600 people hit the 99-week cliff, and stopped collecting extended unemployment benefits, the most since December 2011
http://www.zerohedge.com/news/initial-c ... ed-enefits" onclick="window.open(this.href);return false;

3-Month Petroleum Usage Chart for March, April, May Shows 14 Years of Supply Demand Growth has Vanished
http://globaleconomicanalysis.blogspot. ... nalysis%29" onclick="window.open(this.href);return false;

Telephone records surfaced at former Goldman director Rajat Gupta's insider trading trial suggest he let Raj Rajaratnam listen in to a conference call among board members regarding an upcoming earnings announcement. At the call's end, Rajaratnam purchased 450K shares, making about $2M the next morning when Goldman announced an earnings beat.
http://seekingalpha.com/currents/post/3 ... ource=feed" onclick="window.open(this.href);return false;