US prepares for chaos - Obama's Emergency Executive Order on Resources 16/3/12 & JPM

The order signed on Friday by President Obama may be read here from this link to the White House.

Signs of growing economic stress were also available last night with this whistle blower's letter regarding JP Morgan, linked here. A quote:

It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out.

The sick political minds that would tap oil stocks during heightened Mid-East tensions

The Guardian reports, among other sources, that President Obama and PM Cameron "huddled" over a cost reduction use of strategic petroleum reserves yesterday. Translated this could only have been a US ploy to gain votes for the Democratic party nominee in the coming elections, Britain having no such reserves other than in the smallest conceivable quantities set aside strictly for defensive use.

The world runs on oil, to think that even one second's consideration could have been given to such a treacherous and outrageous notion at a time when the threat to safe navigation through the Straits of Hormuz has been under consideration for several weeks beggars belief. It comes close to signal an intent to abandon one's national defence for the gain of another term in office!

The self-serving and thoroughly disgusting opportunism of the two men presently in control of the supposed democracies of both Britain and America is a startling damnation of the principles and priorities of both their electorates.

Von Rompuy at the White House - Final Act for the EU?

It is nothing short of a miracle that the grotesque EU, with its corruption, decade of unaudited accounts, disdain for the truth and democracy of any type has survived so long!

But the disgraceful joke that is the appointed minion EU Council President Von Rompuy, being at the White House????? takes things too far. Surely the EU cannot now long survive this affront to common sense and decency?

No European citizen has ever cast a single vote for either of the two men, pictured in this link, sitting across from the US President Obama!

All Europeans, about to face destitution and complete economic collapse, should be appalled by this picture. The worst is that none of the european participants, including the joke that is Baroness Ashton, have the first idea of the real scale of the horror they have unleashed NOR what to even begin to do about it.

EU Crisis hits new depths!

Two of the EU's comedy team of multiple-presidents - Von Rompuy and Barroso are presently en-route, in flight, across the Atlantic Ocean, to meet with US President Obama, to discuss the EU crisis in Washington tomorrow. Read here.

Two appointees, fresh from the destruction of two democratic governments - one in Greece, the other in Italy, are to be greeted by the Head of State of the United States of America tomorrow, to discuss a crisis over which they hold no mandate, not one single vote, of any elector across the entire European Continent, to either administer, manage or control.

It will be a black day for democracy everywhere, if President Obama, demeans his own office, and the decency of the entire American electorate, should he decide to proceed with a meeting with these two men.

Obama's Worldwide QE Food Price Riots now hit Uganda

Ironic that the worldwide food riots, following the deliberate debasement of the US Dollar by the Obama administration as an attempt to cure the ills of the US economy, have now spread to Uganda, neighbour to Kenya, the birthplace of Obama's father.

The protest at the brutal clampdown, from the UN Rights chief in Geneva, is reported by Reuters, linked here, from which comes the following quote:

GENEVA, May 1 (Reuters) - The top U.N. human rights official urged Uganda on Sunday to halt "excessive force" against demonstrators, which she said had turned peaceful protests over food and fuel prices into a national crisis.




Even greater Irony may be enjoyed by those of us who remember the Carter Presidency, now only the second worst in history, when viewing a video clip from the BBC, bemoaning how the West is letting North Korean's starve. Just as long as good communists are OK, eh Jimmy? A Quote from President Carter from the BBC:

"One of the most important human rights is to have food to eat, and for South Korea and the US and others to deliberately withhold food aid to the North Korean people is really a human rights violation,"

Bankrupt USA now faces an army revolt!

It is now three years since the world realised that the credit crunch had arrived, although the general public generally only twigged somewhat later as Northern Rock faced collapse. Yet today our ruling elites clearly remain blissfully unaware of the depths of the disaster they have wrought. An economics Professor from Boston University has now spelt out the facts in the starkest terms for Bloomberg, as may be read in full from here, while the following quote carries the essence:

Herb Stein, chairman of the Council of Economic Advisers under U.S. President Richard Nixon, coined an oft-repeated phrase: “Something that can’t go on, will stop.” True enough. Uncle Sam’s Ponzi scheme will stop. But it will stop too late.

And it will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills.

Worse Than Greece

Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece.

The scenario for the UK remains almost identical to that which the Professor cites for the USA, yet no action is forthcoming from the Coalition Government and none is proposed bar an announcement in October of reported severe spending cuts. Meantime the next downward plunge in the property price collapse looms in the wings. On 30th August 2007 in this blog in a posting titled "Britain's economic abyss" I concluded with the following: .... An Australian hedge fund went under yesterday and even the usually cheerful local SW news 'Spotlight' had a gloomy item on the looming house price bust. Not much of any of this in the morning press, but Camilla Cavendish in The Times has a good column, , from which comes this quote: Which just goes to show, I suppose, that idiocy is no more a bar to promotion in the City than anywhere else. People who complimented themselves on their brilliance at inventing ever more complex financial instruments with which to spread risk had started to act as though risk had been abolished. The problem is that the actions of the US Federal Reserve and Britain's Treasury under Gordon Brown, effectively achieved just that- indicating they would always underpin the fantasy world which they themselves had created. Until some major casualties are allowed to reap the consequences of their profligacy the final crunch will just be that much worse. A recent gushing report on the record price of 222 million dollars for a flat in London, also reported in the US as the most expensive real estate deal ever, indicates the opposite to that being reported, namely as a sign of house price strength; rather I would suggest it is a sign of amazing dollar weakness, and as goes the dollar so too will follow the pound, the euro, the yen and even the RMB! If 222 million dollars today, why not 222 billion in three years time, everything else seems to be going that way. Surely the fact that an individual can spend such a sum on a six bedroomed flat in the middle of a city bodes ill for the value of the dollar in the ordinary worker's billfold? What price a loaf of bread in Mayfair or within a stone's throw of Central Park in New York in such a world? Indeed will there then be loaves of bread in our cities for such individuals to buy and will these elites still retain the connection between mouth and stomach to make such consumption even necessary let alone worthwhile? This blog has frequently put forward suggestions (eg here and here) as to one way to avoid the continuing house price collapse where all the misplaced wealth of the nation now rests. As ever such advice is ignored and the crazyiness continues. In March 2009 this blog suggested to avoid the depression Bernanke be dropped from a helicopter, last week he unnerved the markets where junior traders with their bosses presumably on vacation sensed the looming chaos, by dedicating virtually non-existing mortgage assets assumed from Fannie Mae and Freddie Mac to purchase long term US Treasury debt thus further depleting interest yields. Is worthless money worth paying interest on at all? Perhaps as long as fools exist to barter flats for hundreds of millions of dollars I guess the answer to that still remains (but IMO not for very much longer) yes! One small exception to this refusal to face up to facts and realities, I choose to presume, came from Britain's Defence Minister last week when he reportedly insisted that the battle over who will pay for Trident was an ongoing discussion. He said: "Ultimately, all our defence capabilities have to be paid for. Which bits are paid, over what timescale, is part of the discussions we are having and I'm not going to entertain them in public. I have enough time entertaining them in private." I will take that as all the reply I am likely to get to my open letter to Dr. Liam Fox posted on this blog last week. The complete silence on any matter of significance to the future security of the nation from the co-addressee of that latter, Foreign Secretary William Hague, can be assumed to continue to be the case unless I post to the contrary on this blog. While the economic disaster in the USA and Britain seem very similar on Defence and Afghanistan at least Cameron's stand-in mannequin Nick Clegg will not have an army revolt to face over the next couple of weeks. The gauntlet thrown down by General Petraeus to his Commander in Chief on the influential Meet the Press TV programme yesterday, portends a deeper crisis to come. Britain's depleted, under-resourced and ongoingly uselessly sacrificed service personnel regrettably seem in no state to challenge the utter dross who for so long have been negligently governing what was once the United Kingdom.

A different view on Obama

Peter Hitchens puts in print some of the mostly unspoken concerns many of us feel about the new President-elect and his sparse record of achievement, linked here.

Barack in Berlin

It occurred to me watching the speech of Barack Obama yesterday in Berlin how desperate Europeans were becoming to find a politician who might hold out the possibility for both hope and change. The result in yesterday's by-election in Britain's Glasgow East constituency indicated huge disgust with the present Labour Government, but also surely the political machines of all the main parties. It was the hugely efficient Clinton controlled US Democratic Party political machine that Obama effectively destroyed to win his party's nomination. The spectacle of the EU leaders being prepared to dump the reduction of EU Commissioners from 27 to 18 (or two thirds the EU membership) after 2014 to salvage the Lisbon Treaty from the Irish defeat - when they have repeatedly stated the necessity for the various constitutional treaties as for increased efficiency from a streamlined Commission - does not just demean the political party Leaders presently in power but the ratifying National Parliaments and many other politicians who have gone along with this sordid deception. When the EU disintegrates, as it now so surely must, the likely effects seem increasingly likely to also shatter the previously existing order especially if there are to be no national leaders to be found who the European electorates can turn to or trust. Belgium is falling asunder, Britain is both bankrupted (partly by the grotesque size of its payments to the corrupt and repeatedly unaudited EU) and splitting apart on a wave of nationalism as witnessed yesterday in Glasgow East. Neither of which events would be possible without the sham alternative government of the EU hovering in the shadows. If (or when) the EU self-destructs how will the fractured nation states then manage to recover, will Belgium and the UK be the only ones to face other nationalist pressures as they struggle to form a new consensus? Other strains seem certain to appear if there continues to be not one single politician of note and repute to step up and expose the Lisbon process for the disgusting conspiracy it really is, scrapping the reduction of EU Commissioners even if just contemplated is surely now evidence enough of the true nature of those behind this EU project.