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Wed, 12 Dec 2018
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Wonderland Economics: Bailouts balloon, markets crash, the dollar strengthens and gold does nothing

Summary: In a week defined by unprecedented government bailouts and collapsing stock markets all financial logic flew out of the window as the US dollar strengthened and gold hardly budged leading many to speculate as to the extent of the rigging of the global gold market in the face of its purported safe haven status.

The announcement, Monday 13th October, that the British government is to take substantial stakes in 2 major UK banks, HBOS and Royal Bank of Scotland and the proposal in the US that the Fed is to take similar stakes in US banks while providing guarantees of bank's senior debt, caused the markets to rally. This despite the fact that it should be clear to anybody that the US is going way beyond bailing banks out and is in fact transferring the future wealth, in the form of future labour and taxation, of ordinary American's into the hands of a tiny financial elite.

Additionally, following the G7 meeting at the weekend it was announced that central banks around the world would provide unlimited US dollar funding to the markets in order to ensure sufficient liquidity is available at all times.

Amid this turmoil the auction of Lehman Brothers bonds at just 8.825 cents on the dollar, resulting in Credit Default Swap payout this coming week of 91.375 cents on the dollar by all sellers of Lehman CDS's, a devastating payout for the sellers, passed almost silently.

Nuke

German's trial over Libya nuke program nears end

Stuttgart, Germany: A German engineer has acknowledged that he helped procure parts for a centrifuge system that authorities say was meant for Libya's now-abandoned nuclear weapons program, a court said Thursday.

Gotthard Lerch went on trial in June, accused of supplying Libya with sensitive technology in the knowledge that the country was seeking atomic weapons. Prosecutors have accused him of playing a key role in the network led by Pakistani scientist Abdul Qadeer Khan.

Comment: Mainstream journalism and media seem to continue spreading information that has long been cleared as lies:
The Pakistani scientist blamed for running a rogue network that sold nuclear secrets to North Korea, Iran and Libya has recanted his confession, telling ABC News the Pakistani government and President Perez Musharraf forced him to be a "scapegoat" for the "national interest."

"I don't stand by that," Dr. A.Q. Khan told ABC News in a 35-minute phone interview from his home in Islamabad, where he has been detained since "confessing" that he ran the nuclear network on his own, without the knowledge of the Pakistani government. The interview will be broadcast Friday on "World News With Charles Gibson."

It was his first interview with an American journalist in a series of telephone interviews he has granted this week, marking the 10th anniversary of Pakistan's first test of a nuclear bomb.

[...]

As to his widely publicized confession, Khan said he was told by Musharraf that it would get the United States "off our backs" and that he was promised he would be quickly pardoned. "Those people who were supposed to know knew it," Khan said about his activities.



Alarm Clock

Mossad's "Islamic Militants" Exposed In Yemen

The arrest in Yemen this week of a group of "Islamist militants" has provided more evidence that the Israeli government and its associated agencies are still hard at work fabricating "Islamic terrorism" for the enthrallment of the 'educated' masses back home and in the 'enlightened' West:
Yemen seizes 'Israel-linked' cell

Tuesday, 7 October 2008
BBC News

Yemeni President Ali Abdullah Saleh has said the security forces have arrested a group of alleged Islamist militants linked to Israeli intelligence.

Mr Saleh did not say what evidence had been found to show the group's links with Israel, a regional enemy of Yemen.

The arrests were connected with an attack on the US embassy in Sanaa last month which killed at least 18 people, official sources were quoted saying.

Israel's foreign ministry has rejected the accusation as "totally ridiculous".

"A terrorist cell was arrested and will be referred to the judicial authorities for its links with the Israeli intelligence services," Mr Saleh told a gathering at al-Mukalla University in Hadramawt province.

"Details of the trial will be announced later. You will hear about what goes on in the proceedings," he added.

The 17 September attack was the second to target the US embassy since April. Militants detonated car bombs before firing rockets at the heavily fortified building.

Mr Saleh did not identify the suspects, but official sources were quoted saying it was same cell - led by a militant called Abu al-Ghaith al-Yamani - whose arrest was announced a week after the attack.

An Israeli foreign ministry spokesman said the Yemeni president's statement was without foundation.

"To believe that Israel would create Islamist cells in Yemen is really far-fetched. This is yet another victory for the proponents of conspiracy theories," Igal Palmor said in remarks reported by AFP.
Is it really "far fetched" to believe that Israel would fabricate Islamic terrorist attacks? After all, is it not true that Islamic terrorism is Israel's 'bread and butter', without which Israel would stand naked, for all the world to see, as the brutal occupier that it is? And is the same not true of the US and British governments?

Lest we forget the past, and the very recent past at that, below are a collection of mainstream news reports that leave us in little doubt that Israel (closely followed by the US and UK) has its fingers all over "Islamic terrorism" in the Middle East.

Chalkboard

The Betrayal of Adam Smith

Adam Smith on a 20 pound bill
This is an excerpt from When Corporations Rule the World, 2nd Edition, by David C. Korten.

It is ironic that corporate libertarians regularly pay homage to Adam Smith as their intellectual patron saint, since it is obvious to even the most casual reader of his epic work The Wealth of Nations that Smith would have vigorously opposed most of their claims and policy positions.

For example, corporate libertarians fervently oppose any restraint on corporate size or power. Smith, on the other hand, opposed any form of economic concentration on the ground that it distorts the market's natural ability to establish a price that provides a fair return on land, labor, and capital; to produce a satisfactory outcome for both buyers and sellers; and to optimally allocate society's resources.

Through trade agreements, corporate libertarians press governments to provide absolute protection for the intellectual property rights of corporations. Smith was strongly opposed to trade secrets as contrary to market principles and would have vigorously opposed governments enforcing a person or corporation's claim to the right to monopolize a lifesaving drug or device and to charge whatever the market would bear.

Bizarro Earth

Update: Clear and Present Danger

denver mural
© Cassiopaea.org
The one thing that's been proven is the absolute fear-mongering that's being used to drive us is false. I've seen members turn to each other and say if we don't pass this bill, we're going to have martial law in the United States. -- Rep. Brad Sherman, October 1, 2008
We've had a bad feeling these past several years, as those of you who have read these pages may know, that the Iraq disaster wasn't so much a resource grab or to encircle Iran and Russia, nor just to protect Israel, but something more sinister: training soldiers to be mindless killers so that when they're brought back home they would have no problem killing their fellow citizens when martial law is declared and the cow pies really hit the fan.

Wall Street

Signs Economic Commentary for 6 October 2008

Image
Summary: The big financial bailout plan finally passed in the U.S. Congress Friday over the strong objections of the public. Will the bailout prevent the coming depression? Probably not. Mortgage securities are only a part of the problem.

The bailout plan is more than just a giveaway to the rich as represented by the big banks (although it is that). It probably is a panicked attempt to forestall the real potential crisis: a collapse of the huge, unregulated hedge funds based on derivatives and Credit Default Swaps (CDS).


Vader

NYT: Is Palin prepping to be the prez?

It's Sunday, so it's a good day to chew on esoteric stuff. It goes down easier.

Here's a provocative column from the New York Times' Frank Rich, who asks the question: Why is Sarah Palin acting like someone who believes she is going to be president very soon?

Comment: On the contrary, there is quite enough "paint on this canvas", for those who have eyes to see. The reader is encouraged to search SOTT page for articles related to Palin, dominionism and theocracy, to get a fair and extensive scoop on what she is about.


Heart

Ex-Mossad agent's daughter protests occupation

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Tamar Katz, Miya Tamarin and Omer Goldman - Israelis with a conscience
The daughter of an ex-Mossad deputy has refused to do military service because of Israel's killing of Palestinian civilians.

Omer Goldman, daughter of Natalin Granot, former deputy to the head of Mossad, was imprisoned on Tuesday after she, along with two other Israeli women, Miya Tamarin and Tamar Katz, refused to enter the army.

"I feel obligated morally, to refuse," Goldman said.

"I often traveled to the occupied territories, and saw with my own eyes, what the Israeli army is [doing] there are things [with] which I can not cooperate."

Pistol

Three Reasons JFK was Murdered

John F Kennedy_Caroline Kennedy
Like Rome, the US is forever scarred by murder. In our lifetimes, the best and brightest are snuffed before our very eyes by the cowardly, unseen, shadowy exercise of pure evil and rotten ambition. Those who benefited most from JFKs murder are most certainly guilty of it.

JFK tried to strip the power of the FED, abolish the Oil Depletion Allowance, and 'smash the CIA into a thousand pieces'. No President since has dared to piss off so many powerful and ruthless people. Qui bono?

Comment: Read also the SOTT exclusive JFK series, starting here.


Coffee

A bailout and a new world

The George W Bush administration's US$700 billion no-accountability scheme, globally, informally dubbed "cash for trash", is making all the headlines. Simultaneously, there's the small matter of the United Nations General Assembly sanctioning the troubled birth of a new, multipolar world. As a 21st-century counterpart to the Dadaist Manifesto, this chain of events is priceless.