Infinite Unknown

Investors are fleeing from the U.S. stock market, Sending the Dow to Worst June Since Depression, looking for places to secure their wealth.

There is an unprecedented cash flow of ‘hot money’, which is usually defined as short-term global speculative funds moving among financial markets in search of the highest short-term return, moving into China:
Is China flooded with ‘hot money’ because of an expected meltdown in the U.S.?

Let’s further examine the prospects that we would experience a total crash of the entire financial system:

- Fortis Bank Predicts US Financial Market Meltdown Within Weeks

We have seen the Dow suffering it’s worst 1st half since ‘70 accompanied by a lot of bad news for the economy like:
- US: Big Trouble for General Motors, Crysler and Ford
- America’s Aviation System About To Collapse
- Starbucks to cut as many as 12,000 positions
And now the corporations are cheating you at the supermarkets: America’s Shrinking Groceries

The Dollar is being destroyed by the Federal Reserve, which has created in the last three years 4 Trillion Dollars of new money out of thin air: Ron Paul on Iran and Energy June 26, 2008

Ron Paul is further warning that: This coming crisis is bigger than the world has ever experienced
and that: We are at the beginning of a huge Dollar bubble.

The US Federal Reserve intentionally created inflation and that is why its credibility has fallen “below zero” and that is why Barclays warns of a financial storm as Federal Reserve’s credibility crumbles.

More dire warnings:
- RBS issues global stock and credit crash alert
- Morgan Stanley warns of ‘catastrophic event’ as ECB fights Federal Reserve
- Central bank body warns of Great Depression
- Credit crisis expands, hitting all kinds of consumer loans
- How Low Can The Dollar Go? Zero Value

Investors like Jim Rogers are telling us to “Avoid The Dollar At All Costs” and have told us that the Federal Reserve will fail and that Bernanke should be fired (alhough that isn’t possible because of his contract), because he has created the worst recession in the end and thats why he said: “Abolish the FED” on CNBC 2008.03.12.

The Fed is only doing good for the big corporations on Wall Street. If you would continuously come close to bankruptcy, because you have irresponsibly wasted your money, who will continuously give you billions of Dollars and bail you out, because you might fail? So I agree totally with Marc Faber: ‘Misleading’ Fed Should Let Banks Fail.

Well those corporations are said to be to “Big to Fail”, but they eventually will fail, because the entire system will fail and the Dollar is being destroyed in the process and so the people will end up with nothing, because their life savings are worthless paper. You are already paying the price for this policy, but maybe you haven’t looked at it that way:
The Price Of Food: 2007 - 2008
What inflation really is, is a taxation on monetary assets. And guess who is paying for all of that?

I just love this video. A must see:
The Stock Market and the Monetary System are on the verge of collapse!

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Tags: 9/11, airlines, bank failure, Barclays, Ben Bernanke, bubble, China, Citigroup, Condoleezza Rice, Constitution, crash, Credit Crisis, Dennis Kucinich, Depression, Dick Cheney, Dollar, Donald Rumsfeld, Dow Jones, ECB, Fed, Federal Reserve, Food Prices, G. W. Bush, General Motors, Gold, Government, Great Depression, Hyperinflationary Depression, IMF, Inflation, Iran, Meltdown, Monetary System, Morgan Stanley, mortgage crisis, Mortgages, New World Order, Oil, Oil Prices, Pentagon, Ron Paul, Silver, Starbucks, Stock Market, U.S., Wall Street, War

Related articles and videos:
- Ron Paul: This coming crisis is bigger than the world has ever experienced
- Dow suffers worst 1st half since ‘70
- Fortis Bank Predicts US Financial Market Meltdown Within Weeks
- Barclays warns of a financial storm as Federal Reserve’s credibility crumbles
- Jim Rogers: Avoid The Dollar At All Costs
- Ron Paul on Iran and Energy June 26, 2008
- Marc Faber: ‘Misleading’ Fed Should Let Banks Fail

BEIJING, July 1 (Xinhua) — China has taken a series of increasingly aggressive measures in the past several months to blunt the impact of so-called “hot money,” amid the explosive growth of its foreign exchange reserves, which have soared beyond what can be explained by trade and investment flows.

The inflows have been so massive as to raise alarms over the country’s financial security.

According to the State Administration of Foreign Exchange (SAFE), as of the end of May, forex reserves stood at 1.797 trillion U.S. dollars.

During the first five months of 2008, forex reserves increased by 18.7 percent year-on-year, or 268.7 billion U.S. dollars, SAFE figures showed.

Where is all that money coming from, and where is it going?

HOW MUCH IS “HOT MONEY”?

What caught the attention of analysts was that forex reserves jumped at the same time as the current-account surplus and foreign direct investment (FDI) into the fixed-asset field declined year-on-year.

Set against the increased forex reserves in the first five months of this year, there was the 78.02 billion U.S. dollars represented by the trade surplus, which was down 8.6 percent year-on-year.

Another 42.78 billion U.S. dollars was connected with FDI in the first five months, which soared nearly 55 percent year-on-year. But FDI going into fixed assets (longer-term investment), actually fell 3.5 percent in the same period.

Jiang Zheng, a macro-economist at a Beijing-based securities firm, has closely tracked these figures and analyzed the data.

Deducting the trade surplus and the FDI, there was an unexplained 147.9 billion U.S. dollars in the forex reserve increase figure, which Jiang and numerous other analysts consider to be “hot money”, which is usually defined as short-term global speculative funds moving among financial markets in search of the highest short-term return.

The government doesn’t release official figures on this category of funds; in fact, it doesn’t even use the term “hot money”. So analysts can only make estimates.

Jiang said the “hot money” figures deduced by analysts might even be underestimates. “There is a tricky decline among the FDI figures, i.e. the drop of fixed-asset investment,” he explained.

“Foreign direct investment in the first five months soared about 55 percent. But strangely, fixed-asset FDI in the first five months fell 3.5 percent from last year’s figure,” Jiang said.

Jiang said it appeared that some speculative money had managed to move into China in the guise of FDI.

But there are many other channels for “hot money” to flow into China. These include falsified international trade with over-invoiced exports and underground private banks, according to Jiang.

Jiang and other analysts maintained that as much as 600 billion U.S. dollars in “hot money” had surged into the country, most of it after 2005.

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Tags: China, Dollar, Fed, Federal Reserve, financial crisis, Inflation, Meltdown, mortgage crisis, Mortgages, U.S.

July 2, 2008

Source: YouTube

Tags: Al-Qaeda, Al-Qaida, bailout, bankruptcy, bubble, Bush administration, China, CIA, Congress, Constitution, Dollar, Fed, Federal Reserve, G. W. Bush, General Motors, Government, Inflation, Iran, Israel, Military, Nuclear weapons, Oil, Oil Prices, Starbucks, U.S., Wall Street, War

Of course John McCain wants more military, it’s the only thing he knows about. - The Infinite Unknown

WASHINGTON (Reuters) - Republican presidential candidate John McCain wants the U.S. military to be much larger than current expansion plans envision, an adviser to the Arizona senator said this week.

The Bush administration has begun expanding the U.S. Army and Marine Corps to create a combined strength of around 750,000 active duty troops — a process backed by McCain’s Democratic rival, Sen. Barack Obama of Illinois.

But McCain believes an Army and Marine Corps with a combined strength of up to 900,000 troops is necessary, said Randy Scheunemann, an adviser to the candidate on foreign policy and national security.

“Sen. McCain feels the proposed increases are not sufficient. They need to be more, to fully address the challenges we face in the 21st century,” Scheunemann told Reuters in a telephone interview.

The U.S. Army and Marines have been severely strained by the wars in Iraq and Afghanistan. Many troops have served multiple tours in the war zones and currently spend only 12 months at home before they deploy again for another year.

As a member of the U.S. Senate’s armed services committee, McCain has built a reputation for scrutinizing the costs of big weapons programs and he has pledged to pursue that approach in the White House if he wins November’s election.

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Tags: Afghanistan, Barack Obama, Bush administration, G. W. Bush, Government, Iraq, John McCain, Military, NATO, Pentagon, U.S.

The following statement is written by Congressman Paul about the pending financial disaster.

He will introduce this statement as a special order and insert it into the Congressional Record next week. Fortunately, we have the opportunity to debut it first on the Campaign for Liberty blog. It reads as follows:

I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have days-growing more frequent all the time-when I’m convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed.

Though the world has long suffered from the senselessness of wars that should have been avoided, my greatest fear is that the course on which we find ourselves will bring even greater conflict and economic suffering to the innocent people of the world-unless we quickly change our ways.

America, with her traditions of free markets and property rights, led the way toward great wealth and progress throughout the world as well as at home. Since we have lost our confidence in the principles of liberty, self reliance, hard work and frugality, and instead took on empire building, financed through inflation and debt, all this has changed. This is indeed frightening and an historic event.

The problem we face is not new in history. Authoritarianism has been around a long time. For centuries, inflation and debt have been used by tyrants to hold power, promote aggression, and provide “bread and circuses” for the people. The notion that a country can afford “guns and butter” with no significant penalty existed even before the 1960s when it became a popular slogan. It was then, though, we were told the Vietnam War and a massive expansion of the welfare state were not problems. The seventies proved that assumption wrong.

Related articles and videos:
- Dow suffers worst 1st half since ‘70
- Fortis Bank Predicts US Financial Market Meltdown Within Weeks
- Barclays warns of a financial storm as Federal Reserve’s credibility crumbles
- Jim Rogers: Avoid The Dollar At All Costs
- Ron Paul on Iran and Energy June 26, 2008
- Marc Faber: ‘Misleading’ Fed Should Let Banks Fail

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Tags: Alan Greenspan, bubble, civil liberties, Congress, crash, Depression, Dollar, Fed, Federal Reserve, financial crisis, Gold, Government, Hyperinflationary Depression, Inflation, Meltdown, Military, Monetary System, Recession, Ron Paul, Stagflation, Stock Market, U.S., Unemployment, Wall Street

Related articles:
- Floods may boost world food prices for years
- Floods wipe out US crops
- The Best Farmland in the U.S. Is Flooded; Most Americans Are Too Stupid to Panic
- The Price Of Food: 2007 - 2008
- The U.S. Has No Remaining Grain Reserves
- Nine meals from anarchy - how Britain is facing a very real food crisis
- Time to Stockpile Food?
- Food Riots are Coming to the U.S.
- UN alert: One-fourth of world’s wheat at risk from new fungus
- THE FOUR HORSEMEN APPROACH - FAMINE IS IN THE AIR

A catastrophe for Iowa farmers will not be just a catastrophe for Midwestern Americans. In the Iowa floods, we’ll see more evidence of how the problems of weird weather (climate change) combine and ramify the problems associated with Peak Oil. In this particular case they lead to an inflection point sometime around the 2008 harvest season, which will also be our time of political harvest.

These are not your daddy’s or granddaddy’s floods. These are 500-year floods, events not seen before non-Indian people started living out on that stretch of the North American prairie. The vast majority of homeowners in Eastern Iowa did not have flood insurance because the likelihood of being affected above the 500-year-line was so miniscule - their insurance agents actually advised them against getting it.

The personal ruin out there will be comprehensive and profound, a wet version of the 1930s Dust Bowl, with families facing total loss and perhaps migrating elsewhere in the nation because they have no home to go back to.

Iowa in 2008 will be an even slower-motion disaster than Hurricane Katrina in 2005. Beyond the troubles of 25,000 people who have lost all their material possessions is a world whose grain reserves stand at record lows. The crop losses in Iowa will aggravate what is already a pretty dire situation. So far, the US public has experienced the world grain situation mainly in higher supermarket prices.

Cheap corn is behind the magic of the American processed food industry - all those pizza pockets and juicy-juice boxes that frantic Americans resort to because they have no time between two jobs and family-chauffeur duties to actually cook (note: reheating is not cooking).

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Tags: biofuel, climate change, corn, Disaster, erath changes, flood, Food, Food Prices, Food Riots, Food shortages, Grain, Iowa, Oil, Oil Prices, U.S.

Related video: - Why America deserves G. W. Bush

When President Bush announced his economic stimulus in January, he bragged that his package was the “right size” and would “boost” the economy:

I am pleased that this agreement meets the criterion that I set forth last week to provide an effective, robust, and temporary set of incentives that will boost our economy and encourage job creation. This package has the right set of policies and is the right size. The incentives in this package will lead to higher consumer spending and increased business investment this year.

It sure has led to “higher consumer spending,” but not where Bush had probably hoped. The adult pornography industry reports that has seen a huge uptick in business thanks to Bush’s package. According to a press release from the Adult Internet Market Research Company:

An independent market-research firm, AIMRCo (Adult Internet Market Research Company), has discovered that many websites focused on adult or erotic material have experienced an upswing in sales in the recent weeks since checks have appeared in millions of Americans’ mailboxes across the country.

According to Kirk Mishkin, Head Research Consultant for AIMRCo, “Many of the sites we surveyed have reported 20-30% growth in membership rates since mid-May when the checks were first sent out, and typically the summer is a slow period for this market.”

Jillian Fox of LSGmodels.com (nsfw) said that in a survey to its members, “thirty two percent of respondents referenced the recent stimulus package as part of their decision to either become a new member, or renew an existing membership.”

The Bush administration has attempted to wage an aggressive fight in the War on Porn. In fact, cracking down on “manufacturers and purveyors” of pornography was “one of the top priorities” of Alberto Gonzales while he was Attorney General, often coming before terrorism prosecutions.

Ironically, the porn industry is now thanking Bush for his policies. “Getting more people to buy porn was probably the last thing Bush had on his mind when he came up with his ’stimulus package,’ but we’ll take it,” said Fox.

July 02, 2008

Source: Think Progress

Tags: Bush administration, Economy, G. W. Bush, pornography, Sex, U.S.

A frame from a video obtained by the Heraldo de Leon newspaper shows a torture session.

MEXICO CITY, Mexico (AP) — Videos showing Leon police practicing torture techniques on a fellow officer and dragging another through vomit at the instruction of a U.S. adviser created an uproar Tuesday in Mexico, which has struggled to eliminate torture in law enforcement.

Two of the videos — broadcast by national television networks and displayed on newspaper Internet sites — showed what Leon city Police Chief Carlos Tornero described as training for an elite unit that must face “real-life, high-stress situations,” such as kidnapping and torture by organized crime groups.

But many Mexicans saw a sinister side, especially at a moment when police and soldiers across the country are struggling with scandals over alleged abuses.

“They are teaching police … to torture!” read the headline in the Mexico City newspaper Reforma.

Human rights investigators in Guanajuato state, where Leon is located, are looking into the tapes, and the National Human Rights Commission also expressed concern.

“It’s very worrisome that there may be training courses that teach people to torture,” said Raul Plascencia, one of the commission’s top inspectors.

One of the videos, first obtained by the newspaper El Heraldo de Leon, shows police appearing to squirt water up a man’s nose — a technique once notorious among Mexican police. Then they dunk his head in a hole said to be full of excrement and rats. The man gasps for air and moans repeatedly.

(George Orwell 1984 - The Infinite Unknown)

In another video, an unidentified English-speaking trainer has an exhausted agent roll into his own vomit. Other officers then drag him through the mess.

“These are no more than training exercises for certain situations, but I want to stress that we are not showing people how to use these methods,” Tornero said.

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Tags: G. W. Bush, George Orwell, human rights, interrogation, Mexico, Police, Police State, torture, U.S.

WASHINGTON - The Pentagon is considering a plan to ship deadly chemical weapons to military sites in four states to accelerate the destruction of the munitions, a new report to Congress says.

The idea of transporting such lethal agents along routes such as from Colorado to Oregon is prompting opposition from Congress and watchdog groups.

They say the plan exposes the American public to unnecessary risks as the U.S. government is concerned about terrorist attacks.

To honor a 1997 treaty banning chemical weapons, Congress has ordered the military to destroy all its munitions by the end of 2017.

In an unpublicized report delivered to lawmakers last week, the Pentagon said it probably could not meet that deadline unless it ships nerve agents and mustard gas to additional sites for destruction.

Even adding more people and working around the clock at the two sites with complicated dismantling requirements in Kentucky and Colorado may not help the military meet the 2017 deadline, the report said.

Work would be speeded up if some weapons at Kentucky’s Blue Grass Army Depot are moved to sites in Alabama and Arkansas, the report said, while some at the Pueblo, Colo., site are sent to Utah and Oregon.

Congress would have to change laws that forbid moving the weapons, the report said.

That prospect is uncertain. While chemical weapons have been destroyed safely at the Anniston Army Depot in Alabama, it is too risky to ship more there, Sen. Richard Shelby, R-Ala., said in a statement.

“It’s shocking and irresponsible for the Department of Defense to even propose to ship large volumes of weapons of mass destruction across the highways of the United States considering the risks and atmosphere of terrorist threats,” said Craig Williams, director of the Chemical Weapons Working Group, a Kentucky citizens organization.

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Tags: chemical weapons, Congress, Government, Pentagon, terrorism, terrorists, U.S., WMDs

Related articles and videos:

- Fortis Bank Predicts US Financial Market Meltdown Within Weeks

- Barclays warns of a financial storm as Federal Reserve’s credibility crumbles

- Jim Rogers: Avoid The Dollar At All Costs

- Ron Paul on Iran and Energy June 26, 2008

- Marc Faber: ‘Misleading’ Fed Should Let Banks Fail

NEW YORK (Reuters) - The Dow and S&P 500 were little changed on Monday on the final trading day of the second quarter as record oil boosted energy shares, offsetting weak financial stocks amid nagging concerns of further credit losses.

But even with the pause on Monday, the Dow and S&P posted their worst one-month drop since September 2002. The Dow also suffered its worst first half since 1970.

The Nasdaq ended the session lower, hurt by a drop in the shares of Yahoo as it battles with shareholders after takeover talks with Microsoft fell apart.

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Tags: Citigroup, Dow Jones, financial crisis, Lehman Brothers, Meltdown, Morgan Stanley, Mortgages, Oil, Oil Prices, Recession, Stock Market, U.S.