(News &Editorial/ Tick…tick…tick…tick…)

A.  McGrath: “If You Think the Crisis of 2008 is Over, Then You’re Falling Right Into the Game Plan”
25 Sep 2013, SHTFplan.com, by Mac Slavo
Pasted from: http://www.shtfplan.com/headline-news/mcgrath-if-you-think-the-crisis-of-2008-is-over-then-youre-falling-right-into-the-game-plan_09252013

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The game is rigged, the pain is coming, and we’re all about to become victims of greed and government once again.

Charlie McGrath of Wide Awake News explains why:
If you think the crisis of 2008 is over, then you’re falling right into the game plan of The Powers That Be.
Washington D.C., the Federal Reserve, any business analyst that can get in front of a camera… wants you to believe that any coming crisis financially is not related to 2008. It’s going to be a new event altogether. And they’re going to blame it on you… the American people.
If you believe that then you have been duped.

The crisis of 2008 never ended. It got far, far worse. We haven’t fixed any of the problems. We’ve made them more systemic. We’ve made them more powerful and more in control of this economy.
Out of the top 25 companies that were heavy into sub-prime mortgages… the leaders and CEO’s of these corporations, to a man and woman, are back in the lending business.
They’re back in the game… You would think some of these guys would be in prison; they’re not. They’re back working at this exact same thing that tanked this country in 2008.

YouTubeSee Financial Betrayal – Collapse Assured video at YouTube:

As Charlie notes, these exact same people, the ones who engineered the sub-prime debacle that wiped out the wealth of millions of Americans, are now doing exactly what they were doing before. They’re lending money to unqualified borrowers to the tune of tens of billions of dollars because they say they, “want to help.”

But, as before, they are luring American borrowers into taking on interest-only loans that will lead to more foreclosures and defaults as soon as the payments on the those mortgages reset.
This isn’t about helping Americans. This is about money, plain and simple.
Will we never learn?
The honest answer: no.
There is only one way this is going to end and it’s going to be horrific for 99% of us.

McGrath continues…
Before you think I am just sounding bitter because these wealthy people [bank leaders] managed to hold on to their money while so many people in this nation saw their standard of living fall, saw their number one investment tank, and saw their future basically be throw into the air in the form of sovereign debt, I’m not.

 I’m telling you all this because it’s going to happen again.
A story came out just yesterday showing that the Federal Reserve, this institution that bent over backwards to save the aforementioned individuals and institutions that they work for, now holds more debt… than was ever created in this nation from George Washington through Bill Clinton… $3.4 trillion they now own.
You might think that’s great. You stick them with the bill and walk away.
But that’s not the way it’s going to work.
With this holding of debt they also hold the power over this economy.

Our leaders must understand that this private institution, that is not federal and that has no reserves, is running roughshod over this economy and they’re serving their financial special interest masters on Wall Street because that’s what they’re made up of.
And at the end of the day when this comes crashing down they will be the ones holding all the power.
We need to realize this because this crisis is not over. A far worse crisis is yet to come.

We live in a nation of people who will not step out of their perceived reality, and they are going to pay the price for their ignorance.
In a previous commentary Charlie McGrath warned about the disaster that will soon come our way.

We’re talking about the potential for an absolute credit freeze that will make the situation in New York spread across this country almost overnight.
Ask yourself this question: Are you prepared to take care of yourself?
If you cannot answer that question with the affirmative it is time to stop just listening to alternative media and thinking of it as entertainment, but taking the advice seriously and considering if you have a plan to take care of yourself and loved ones if the situation arises.
Because if you look around this world, if you look at the mainstream media, they’re forewarning you about what’s coming.
There is a disaster coming. Get ready for it. Make sure you are mentally and physically prepared for what is coming.
From Charlie McGrath of Wide Awake News

When the credit markets froze in 2008, then Secretary of the Treasury Henry Paulson warned members of Congress that if something wasn’t done there would be tanks on the streets of America.
Some would laugh at that notion. But this is no conjecture.

YouTubeSee Rep. Brad Sherman speech re. Martial Law threat at:

Guess what folks… this next go ’round there will be no bail out, no saving the system, and no relief coming.
What’s coming is what the U.S. government has been simulating for the last half decade: A total collapse of our financial system, civil unrest, and the very real possibility of a lock-down of the United States of America in its entirety.


B. The Missing Story from the New York Post’s Obama Unemployment Fraud
19 Nov 2013, by John Galt
Pasted from: http://johngaltfla.com/wordpress/2013/11/19/the-missing-story-from-the-new-york-posts-obama-unemployment-fraud/

The biggest question ignored by every website, conservative talk show host, and blogger that I could find online about the major controversy about the falsification of the monthly unemployment reports apparently manipulated before the election and of course, allegedly since that time, is this:

If one is to believe this report, originated by the United States Census Bureau, then how can one believe any of the data over the past five years for GDP (Gross Domestic Product), Personal Income, trade data, housing, retail sales, wholesale sales, investment, and construction spending?

There are other more disturbing questions that beg answers:

1) Do we suspend reality and believe the inventory accumulation numbers reported in last quarter’s GDP report then state the unemployment or service industry data is accurate?

2) Do we assume that the government would never lie about data this critical to the investment and maintenance of the U.S. economy and its reputation thus dismissing any reports to the contrary?

3) Are the political elites within the administration using the Plunger Protection Team (PPT) to purchase stocks, bonds, and other investment instruments, up to and including shorting commodities to ensure a perpetual bull market to provide the illusion of economic expansion via the good old reliable Dow Jones Industrial Average and other investment indices?

The answer to the last three questions is a resounding “YES” however the most important question above those is still open for interpretation. If an administration is willing to kill an Ambassador to cover its illegal activities, would it be a stretch to expect the worst possible outcome from this still emerging story?

The United States of America is at a major crossroads; we could become like every banana republic the Progressives demanded we control with our military throughout history or worse, evolve into a Mussolini or Chinese Communist crony quasi-capitalist state where every action in favor of the original Constitution is met with hostile force for the “greater good” of the masses. That crossroads is where we stand at this very moment in history and there are no bystanders or people proclaiming ignorance of the events we are engulfed upon.

The largest example of the fraud committed not under the unemployment lie of 2012 but the GDP lie of 2013 was exhibited in the article titles “US GDP Will Be Revised Higher By $500 Billion Following Addition Of  “Intangibles” To Economy” from the excellent economic website, ZeroHedge. From that posting this excerpt sums it up:
Those who have been following the US debt to GDP ratio now that the US officially does not have a debt ceiling indefinitely, may have had the occasional panic attack seeing how this country’s leverage ratio is rapidly approaching that of a Troika case study of a PIIG in complete failure. And at 107% debt/GDP no explanations are necessary. Luckily, the official gatekeepers of America’s economic growth (with decimal point precision), the Bureau of Economic Analysis have a plan on how to make the US economy, which is now growing at an abysmal 1.5% annualized pace, or about 5 times slower than US debt growing at 7.5% annually, catch up: magically make up a number out of thin air, and add it to the total. And it literally is out of thin air: according to the FT the addition will constitute of a one-time addition of intangibles, amounting to 3% of total US GDP, or more than the size of Belgium at $500 billion, to the US economy.

From FT(the Financial Times):
The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.
Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output.
Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.
We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.
What exactly will constitute GDP growth going forward? In a word, intangibles: films, books, magazines and iTunes songs.
“We’re capitalising research and development and also this category referred to as entertainment, literary and artistic originals, which would be things like motion picture originals, long-lasting television programmes, books and sound recordings,” said Mr Moulton.
At present, R&D counts as a cost of doing business, so the final output of Apple iPads is included in GDP but the research done to create them is not. R&D will now count as an investment, adding a bit more than 2 per cent to the measured size of the economy.

Nothing like adding intangibles in the fluid, ever-changing definition of what constitutes an economy.

Naturally, the only reason for this artificial “boost” to the US economy which apparently can be any old arbitrary number agreed upon by a few accountants, and which always goes up post revision, never down, is to make US debt/GDP under 100% once again, if only very briefly. Surely a few months later something else can be “added” to GDP making the US economy appear better than it is once more.

Finally, all of the above is a distraction for idiots.

Gee, did Mr. Tyler Durden strike a nerve?

Sadly, not just on ZH but other factually based websites, the analysis of the “cool, super modern, ultimate revised historical GDP analysis” provided a series of attacks on so called “conspiracy websites” of course, which allegedly promoted false economic theories and reporting. The usual suspects showed up again today with the report from John Cruedele being attacked by the usual extremist leftist suspects at Democrat Underground and Business Insider who insist on ignoring or defaming anyone who criticizes or publishes any negative reports on Obama or their precious fictional recovery as reported by the designated government propaganda sources.

The missing story is not just about the fictional GDP revisions and the unemployment hilarity which continues to unravel as I type this article. The larger issue is a matter of trust. Can any data points release in now over five years, ten years, or even twenty be trusted? Revisions to measurement and reporting criteria began under President George H.W. Bush, yet both parties claim that the information the various government agencies controlled by their own appointees is sacred and cannot be discounted nor corrupted. Of course the Iraq War, Obamacare nightmare, and the number of convictions after the 2007-2009 financial crisis might just discount anyone’s rational faith in political leadership in our nation.

Thankfully, operation BS&P 1700+ worked from the election forward to distract the economically ignorant and PStupids within our population:

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What this really means is that the United States economy no longer has a rational matrix for determining its actual condition nor the validity of earnings by its corporations, tax collections, actual inflation, etc. Can anyone believe corporate earnings when the government has yet to prosecute any major corporation for providing obviously fictional earning reports despite the so-called “law of the land” and other such nonsense? Is there any network or newspaper willing to risk their advertisers to report on how the Federal Reserve is buying sub-prime if not outright sub-par MBS to maintain the survival of its member banks in violation of the law and the original charter? Are there any politicians which are not for sale now, including Rand Paul (R-KY) or other so-called Tea Party elites?

This has happened before in history and sadly it did not end well for those nations who are now in the dustbin of history. Of course, some are still swimming in the dirt, like Zimbabwe and Argentina; just ask anyone in those countries today how a corrupted government works within an economic framework.

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C.  Cyprus-Style Wealth Confiscation Is Now Starting To Happen All Over The Globe
24 Sep 2013, TheEconomicCollapseBlog.com, by Michael Snyder
Pasted from: http://theeconomiccollapseblog.com/archives/cyprus-style-wealth-confiscation-is-now-happening-all-over-the-globe

Now that “bail-ins” have become accepted practice all over the planet, no bank account and no pension fund will ever be 100% safe again.  In fact, Cyprus-style wealth confiscation is already starting to happen all around the world.  As you will read about below, private pension funds were just raided by the government in Poland, and a “bail-in” is being organized for one of the largest banks in Italy.  Unfortunately, this is just the beginning.  The precedent that was set in Cyprus is being used as a template for establishing bail-in procedures in New Zealand, Canada and all over Europe.  It is only a matter of time before we see this exact same type of thing happen in the United States as well.  From now on, anyone that keeps a large amount of money in any single bank account or retirement fund is being incredibly foolish.
Let’s take a look at a few of the examples of how Cyprus-style wealth confiscation is now moving forward all over the globe…

For years, there have been rumors that someday the U.S. government would raid private pension funds.
Well, in Poland it just happened.
According to Reuters, private pension funds were raided in order to reduce the size of the government debt…
Poland said on Wednesday it will transfer to the state many of the assets held by private pension funds, slashing public debt but putting in doubt the future of the multi-billion-euro funds, many of them foreign-owned.

The Polish government is doing the best that it can to make this sound like some sort of complicated legal maneuver, but the truth is that what they have done is stolen private assets without giving any compensation in return…
The Polish pension funds’ organisation said the changes may be unconstitutional because the government is taking private assets away from them without offering any compensation.
Announcing the long-awaited overhaul of state-guaranteed pensions, Prime Minister Donald Tusk said private funds within the state-guaranteed system would have their bond holdings transferred to a state pension vehicle, but keep their equity holdings.
He said that what remained in citizens’ pension pots in the private funds will be gradually transferred into the state vehicle over the last 10 years before savers hit retirement age.

For years, Iceland has been applauded for how they handled the last financial crisis.  But now it is being proposed that the “blanket guarantee” that currently applies to all bank accounts should be reduced to 100,000 euros.  Will this open the door for “haircuts” to be applied to bank account balances above that amount?…

Following the crisis in October 2008, Iceland’s government declared all deposits in domestic financial institutions were ‘blanket’ guaranteed – an Emergency Act that was reafrmed twice since. However, according to RUV, the finance minister is proposing to restrict this guarantee to only deposits less-than-EUR100,000. While some might see the removal of an ’emergency’ measure as a positive, it is of course sadly reminiscent of the European Union “template” to haircut large depositors. This is coincidental (threatening) timing given the current stagnation of talks between Iceland bank creditors and the government over haircuts and lifting capital controls – which have restricted the outflows of around $8 billion.

European finance ministers have agreed to a plan that would make “bail-ins” the standard procedure for rescuing “too big to fail” banks in the future.  The following is how CNN described this plan…
European Union finance ministers approved a plan Thursday for dealing with future bank bailouts, forcing bondholders and shareholders to take the hit for bank rescues ahead of taxpayers.
The new framework requires bondholders, shareholders and large depositors with over 100,000 euros to be first to suffer losses when banks fail. Depositors with less than 100,000 euros will be protected. Taxpayer funds would be used only as a last resort.
What this means is that if you have over 100,000 euros in a bank account in Europe, you could lose every single bit of the unprotected amount if your bank collapses.

As Zero Hedge reported on Tuesday, a “bail-in” is now being organized for the oldest bank in Italy…
Recall that three weeks ago we warned that “Monti Paschi Faces Bail-In As Capital Needs Point To Nationalization” although we left open the question of “who will get the haircut including senior bondholders and depositors…. given the small size of sub-debt in the capital structures.” Today, as many expected on the day following the German elections, the dominos are finally starting to wobble, and as we predicted, Monte Paschi, Italy’s oldest and according to many, most insolvent bank, quietly commenced a bondholder “bail in” after it said that it suspended interest payments on three hybrid notes following demands by European authorities that bondholders contribute to the restructuring of the bailed out Italian lender. Remember what Diesel-BOOM said about Cyprus – that it is a template? He wasn’t joking.

As Bloomberg reports, Monte Paschi “said in a statement that it won’t pay interest on about 481 million euros ($650 million) of outstanding hybrid notes issued through MPS Capital Trust II and Antonveneta Capital Trusts I and II.” Why these notes? Because hybrid bondholders have zero protections and zero recourse. Under the terms of the undated notes, the Siena, Italy-based lender is allowed to suspend interest without defaulting and doesn’t have to make up the missed coupons when payments resume.Then again hybrids, to quote the Dutchman, are just the template for the balance of the bank’s balance sheet.

Why is this happening now? Simple: the Merkel reelection is in the bag, and the EURUSD is too high (recall Adidas’ laments from last week). Furthermore, if the ECB proceeds with another LTRO as many believe it will, it will force the EURUSD even higher, surging from even more unwanted liquidity. So what to do? Why stage a small, contained crisis of course. Such as a bail in by a major Italian bank. The good news for now is that depositors are untouched. Unfortunately, with depositor cash on the wrong end of the (un)secured liability continuum it is only a matter of time before those with uninsured deposits share some of the Cypriot pain. After all, in the brave New Normal insolvent world, “it is only fair.”

Fortunately, it does not appear that this particular bail-in will hit private bank accounts (at least for now), but it does show that European officials are very serious about applying bail-in procedures when a major bank fails.

 New Zealand
The New Zealand government has been discussing implementing a “bail-in” system to deal with any future major bank failures.  The following comes from a New Zealand news source…
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will seesmall depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.
“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.”

Incredibly, even Canada is moving toward adopting these “bank bail-ins”.  In a previous article, I explained that “bail-ins” were even part of the new Canadian government budget…
Cyprus-style “bail-ins” are actually proposed in the new Canadian government budget.  When I first heard about this I was quite skeptical, so I went and looked it up for myself.  And guess what?  It is right there in black and white on pages 144 and 145 of “Economic Action Plan 2013” which the Harper government has already submitted to the House of Commons.  This new budget actually proposes “to implement a ‘bail-in’ regime for systemically important banks” in Canada.  “Economic Action Plan 2013” was submitted on March 21st, which means that this “bail-in regime” was likely being planned long before the crisis in Cyprus ever erupted.

So what does all of this mean for us?
It means that the governments of the world are eyeing our money as part of the solution to any future failures of major banks.
As a result, there is no longer any truly “safe” place to put your money.
One of the best ways to protect yourself is to spread your money around.  In other words, don’t put all of your eggs in one basket.
If you have your money a bunch of different places, it is going to be much harder for the government to grab it all.
But if you don’t listen to the warnings and you continue to keep all of your wealth in one giant pile somewhere, don’t be surprised when you get wiped out in a single moment someday.

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