Published on Mar 14, 2014
Thanks to B.
Get inspired by Veronika, CEO and founder of The Empowerment Program, who empowers women to become more independent. #WomenInspire
Published on Mar 14, 2014
Thanks to B.
Get inspired by Veronika, CEO and founder of The Empowerment Program, who empowers women to become more independent. #WomenInspire
True terror is to wake up one morning,
and discover that your high school class
is running the country.
Men, it has been well said,
think in herds;
it will be seen they go
mad in herds,
while they only recover their senses
slowly, one by one.
Any intelligent fool can make things bigger,
and more violent.
It takes a touch of genius–
and a lot of courage–
to move in the opposite direction.
I believe everyone who reads my blog can understand this basic financial explanation of what we are beginning to see happen in the markets. Charles suggests that even though the markets seem to be back on track we shouldn’t be fooled, and he uses Austrian economics to explain himself. I’ve always felt Austrian economics is based in reality — and, therefore, really quite simple in principle: nothing comes ‘for free’, and eventually the piper must be paid. Charles suggests the piper is wanting payment, and we are about to experience the mother of all hangovers. . . ~J
That was quite a binge, quantitative easing was. A bender that went on for years.
Now comes the hangover.
Just like the Austrian school economists said.
In fact, the reason the Austrian Business Cycle Theory is sometimes called the Austrian “hangover” theory is becoming all too clear.
Interest rates are said to coordinate production across time. Normally in a free market when people choose to save more money, the lower rates that result incentivize businesses to carry out longer-term capital goods expenditures for future production.
On the other hand when rates rise, businesses, factoring in the higher borrowing costs, are less likely to engage in long-term expansion. That’s a good thing because the high rates mean that consumers — the final objective of all economic activity — don’t have the liquidity to afford all the new production of the expansion.
It is a natural and wholesome dynamic. High rates encourage the savings that the economy needs for longer-term production to eventually take place, while low rates normally reveal that consumers are not in a hurry to consume today.
The stock market is the most visible part of this biggest of all bubbles.
Businesses read the buildup of savings reflected by low rates as evidence that their longer-term production will be met by consumers whose saving will enable them to afford the new production.
But sometimes the central bank bartender steps in and spikes the punch bowl. It prints money electronically so that it can buy bonds and artificially drive rates lower.
Having drunk from the Fed’s spiked punch bowl, people become intoxicated. It affects their vision and their judgment. The party gets lively and businesses start wearing lampshades on their heads. In the raucous environment, homebuilders, high on cheap money, are likely to start building homes in the suburbs of desert cities like Las Vegas and Phoenix, far beyond the sustainable growth of the market or the means of people to pay for them all.
And that is exactly what happened.
If businesses, intoxicated by low rates, start wearing lampshades, markets can be described as swinging from the chandeliers. In the general inebriation the markets race higher, setting new records. But then the punch runs out and the hangover starts with the inevitable correction in prices.
And that is exactly what has happened over and over again with quantitative easing.
When QE I ended, the market sold off. After a 14 percent drop in the stock markets, the Fed bought drinks all around. A lot of drinks.
QE II was much bigger than QE I. But when it ended, the market sold off. Again.
QE III was the biggest bacchanalia of all. It has blown the Fed’s balance sheet up past $4 trillion.
One day in June 2013, Ben Bernanke threatened, not to take away the punch bowl all at once, but to just slowly begin watering down the QE III drinks. The Dow Industrials fell more than 200 points that day alone, while the S&P 500 fell even more as a percentage. Altogether that summer the Dow fell almost 1,000 points from its May high to its June low.
In December last year the Fed met again. This time it announced that it would reduce its liquidity operation by $10 billion a month beginning in January 2014.
The stock market threw a fit and the Dow fell more than 1,200 points from Dec. 31 to the beginning of February.
Now QE III is ending and the early signs of the hangover began appearing in the market selloff last week.
But hope springs eternal and it only took a comment from one Fed official to convince the market that the liquor would not stop flowing. It was “hair of the dog” time! Another drink and all will be well!
It is not pleasant, but it’s time to face reality. The economy and markets have been intoxicated. In fact they are chronically drunk and the Fed is their enabler. They must get into detox. Unsustainable projects must stop. Malinvestments must be liquidated. Markets must return to normal — it’s called a “correction” for a reason.
The monetary manipulation must end, and the malinvestments must be confronted so that resources again move to sustainable economic activities.
This is why the economy has never really recovered, despite the unprecedented creation of trillions of dollars and zero interest rate policies. The Fed’s activity interferes with crucial price signals so that investors are misled and capital is misallocated. It interferes with long-term economic planning, encourages speculative activity at the expense of productive investment even as it penalizes the risk-averse investor, typically the elderly.
Will the Fed break open the liquor cabinets again? Bank of America/Merrill Lynch speculates that a ten percent sell-off would be sufficiently painful for the Fed to turn to the bottle again. Others disagree.
I have spelled out my own view in the Freedom and Prosperity Letter. For reasons having to do with criticism from both the Bank for International Settlements and the International Monetary Fund, as well as having to do with the Fed’s credibility and the credibility of the dollar itself, I suspect the Fed will not be so quick to start up another round.
It is an interesting debate, but we cannot know the answer for sure. Fed officials are divided among themselves and they don’t know what to do. They are making it all up as they go along.
But there are some things we can know. And that brings us back to capital goods: Machinery, buildings, raw materials used in production, plants and equipment.
Consumer spending can turn on a dime. A decision to spend a week at an expensive new luxury resort or to buy a new car can be made on a weekend. But expanding that resort to accommodate all the new guests, or expanding the new car plant to keep up with the added demand created by artificially low rates, those things require longer term planning and commitments. Then, if consumer spending patterns change — too bad!
The intoxicant of loose money since 2009 has been spiking capital goods orders. This is an indication to many that a real recovery may at long last finally be at hand.
But Austrian school economist Frank Shostak, writing recently in Mises Daily, warns that even bubble activities, “like any non-bubble activity, also require tools and machinery (i.e., capital goods).”
Shostak’s analysis is that “a down-trend in the growth momentum of the money supply since October 2011 is currently on the verge of asserting its dominance. This means that various bubble activities are likely to come under pressure. Slower monetary growth is going to slow down the diversion of real wealth to them from wealth generating activities.
“Consequently capital goods orders are going to come under pressure in the months ahead. The build-up of a wrong infrastructure is going to slow down — and fewer pyramids will be built.”
If Shostak is right, it means that the United States will soon join in the economic slowdown that is taking place in China and the recessions that are growing in Europe and Japan.
That means that just as the prior dot com and housing bubbles eventually popped, the air is beginning to come out of the QE bubble. When this process begins, no amount of money printing and not even a few good stiff drinks from Janet Yellen will be able to stop it or to re-inflate the bubble.
The stock market is the most visible part of this biggest of all bubbles.
It could prove to be the biggest of all hangovers.
Published time: October 22, 2014 14:53
Edited time: October 23, 2014 06:40
Ukraine plans to buy $770 million worth of gas (2 billion cubic meters) from Russia this winter to keep the heat on, but before that, they must pay off $1.45 billion in debt.
All three parties, Russia, the EU, and Ukraine met in Brussels on Tuesday and confirmed Kiev will pay $385 per 1,000 cubic meters of Russian supplied gas through the end of March. Before Ukraine can start purchasing gas, they need to pay off $1.45 billion in debt.
“There’s one obstacle: Ukraine failed to pay for Russian-supplied gas for seven months,” Oettinger said Tuesday. It will be difficult for Ukraine to find a benefactor, since, as Oettinger pointed out, its credit history is less than stellar. The economy is in ruin and may already need extra IMF money to stay afloat.
So where should Ukraine get the money from?
“If Naftogaz can’t pay, another European company may buy Russian gas and then resell it.”
“It is also possible that the Russian gas transit tariff can be used as gas payments,” Oettinger said.Russia sends more than 80 billion cubic meters of gas to Europe through Ukraine, and each entry/exit point has a different tariff, ranging from $14 to $45 per 1,000 cubic meters. The question of payment for Russian gas remains key, according to Oettinger.
“We will not sell gas to Ukraine through a third party.”
Miller said Europe cannot resell gas to Ukraine, since all gas is supplied under specific contracts with each country, and enters at different delivery points.
“We are ready to make an advance payment, but we haven’t yet settled the way to pay our $3.1 billion debt.”
Naftogaz, Ukraine’s national oil and gas company, owes Gazprom $4.5 billion in total, at least $3.1 billion before the new year, and $1.45 billion before they can start buying gas again.
“Possible sources include guarantees from first-class European banks, bridging loans, funds from the European Bank for Reconstruction and Development, or the European Commission.”
Novak says Kiev will purchase 2 billion cubic meters of gas, or $770 million worth from Russia, as well as another 2 billion from neighboring European states.
“If Europe gives them the money, then gas will flow,” Novak said at an energy forum in Moscow Wednesday.
The last stumbling block in the negotiations is simply a matter of money. According to Novak, the deal could have been signed on Tuesday if Kiev could show they are financially solvent enough to pay for future deliveries and debt.
“In this situation, our European partners must give Ukraine a shoulder to lean on, and help.”
“Everyone must contribute.”
Including Slovakia, the Chancellor said after a meeting in Bratislava. Germany depends on Russian gas for 25 percent of its energy needs, and Slovakia gets more than 80 percent of its natural gas from Russia. Slovakia has been pumping reverse flows to Ukraine to make up for the Russian shortage, and may pump another 1-2 billion cubic meters this winter, according to Prodan.
Both Russian energy officials and Gazprom heads have warned against the illegality of reverse flows, as they violate Gazprom contracts, which don’t allow a country to re-export gas.
“We have several options, ranging from International Monetary Fund finance to international financial organizations that could support the deficit of Naftogaz.”
The next meeting is scheduled for October 29 and EU Energy Minister Gunther Oettinger expects an agreement to be inked.
New Moon Phase: emergence
Moon in Libra/Scorpio
Ruling Mahavidya: Kamala (The Goddess Who Assures Humanity)
Skill: ease into the switch of the energy
Negative Imprint: alienation, naïve, disconnected, escaping responsibilities, over-reliance on the past, stuck, suspicion, obsession, criticism, fear, distrust
Positive Imprint: groups, observation, recollection of memories, calmness, thoughtfulness, following intuition, ceremonies, open-mindedness, celebration
Welcome to a new lunar month, the Scorpio cycle, complete with a partial eclipse of a Sun that is churning with activity. The eclipse will be most visible to those in the Eastern and Central time zones of North America. It happens at sunset, with mega-sunspot 2192 (which is now the size of Jupiter!) also visible.
Sunspot 2192 is extremely active and releasing flares (an X-flare yesterday!), but no coronal mass ejections so far.
The recording of the overview for what’s ahead, entitled “To Boldy Go…,” is posted on the homepage of www.oraclereport.com. I go in-depth into the signs of the times for this month.
I titled this recording “To Boldly Go…” because the Sabian symbol for the month, “a sight-seeing bus filled with tourists,” in combination with the energies of the other planets find us in new territory this month. As the new world order’s plans collapse and tumble from its own weight, those ways begin to dissolve. We glimpse life without control by the matrix.
But, the Sabian symbol tells us that in the process of the fall of the matrix, things look and feel very different. This produces an uneasy, anxious feeling because it is new, and what is new is unfamiliar, which makes us humans guarded. We find ourselves feeling like we need to “tiptoe” into the energy.
What we see this month may be very difficult to fathom or understand.
We have the best guide we could have this month, the facet of Gaia Sophia who is Kamala. Gaia Sophia steps her consciousness down into ten facets, ten goddesses known as the Mahavidyas, or Wisdom Goddesses. This is Sophia’s preferred method of direct interaction and instruction with individual humans.
I meant to weave discussion of Kamala into the audio when I reviewed Venus’ movement into Scorpio, which is quintessentially Kamala. Instead, she announces herself today.
Kamala is the Goddess Who Assures Humanity. Many of the Mahavidyas are associated with lotus blossoms, but Kamala’s energy best fits this, in my opinion. Lotuses form from the Earth, from the mud, and rise above it to bloom. Kamala is the most “human” or “worldly” of the Mahavidyas. In this I mean that her energy is best suited to understanding and resonating with us. She is mentioned as tenth or last in line, but this does not mean her powers are lesser. It means that she is closest to us and able to scoop up many humans for awakening.
In baseball terms, Kamala bats clean up and always rounds home base. She brings everyone in. She does this by attuning to OUR frequencies and lifting us up with assurance. Kamala is driving the sight-seeing bus and I am glad of that!
This month, as the things we observe happening in the world and in our lives look and feel foreign, we can always fall back into the arms of the Kamala, the Goddess of Assurance. You may already have been tuning into the incoming month’s energy with feeling surreal or like you are in the twilight zone. It will feel strange, so don’t personalize or take it on board the bus. Understand that a process of the end of one time and the beginning of another is happening, and that newness always is always a bit unsettling for us. We are creatures of habit and comfort and we generally don’t like change.
This is a good change, so we can welcome it, celebrate it, and LOVE it. The time that we’ve been waiting millennia for is happening. Can you catch the wave of excitement with it? Can you imagine the new things that will come of it? Can you see you in it? It’s the trip of a lifetime.
We need to ease in to this energy today, rested with assurance. You will definitely notice the shift, especially after the New Moon enters at 5:55 pm ET/ 9:55 pm UT. The Sun, Moon, and Venus are moving into Scorpio together, pulling us right along with them.
Say hello to Kamala as you climb onto the bus today. Set the intention of resting assured that you are going to be just fine this month – better than just fine. No fear. No meanness. No stinging others. This month is about sovereignty, kindness, and love. Result by the end of the month: deep healing and deep wisdom.
Thank you for supporting the Oracle Report. Blessings to all!
As warned, after multiple staged incidents used to ratchet up fear and paranoia in the build-up to US and its allies’ military intervention in Syria and Iraq, at least two live attacks have now been carried out in Canada – precisely as they were predicted.
The first attack involved a deadly hit-and-run that left one Canadian soldier dead. AP would report in its article, “Terrorist ideology blamed in Canada car attack,” that:
A young convert to Islam who killed a Canadian soldier in a hit-and-run had been on the radar of federal investigators, who feared he had jihadist ambitions and seized his passport when he tried to travel to Turkey, authorities said Tuesday.
The second, most recent attack, involved a shooting in Ottawa injuring several and killing another Canadian soldier on parliament Hill. RT in its article, “Ottawa gunman identified as recent Muslim convert, high-risk traveler,” would report that:
While the name of the Ottawa gunman is yet to be announced, a number of officials told numerous media that the shooter is believed to be Michael Zehaf-Bibeau, a recent Muslim convert, allegedly designated as a high-risk traveler.
Michael Zehaf-Bibeau was born in Quebec as Michael Joseph Hall north of Montreal, two US officials told Reuters, claiming that American law enforcement agencies have been advised that the attacker recently converted to Islam.
AP sources also identified the man to be Zehaf-Bibeau. A Twitter account associated with Islamic State militants tweeted a photo they identified as the Ottawa shooter. The Globe and Mail reports that the shooter was designated a high-risk traveler by the Canadian authorities with his passport seized.
Clearly, both suspects were under the watch of not only Canadian authorities, but also US investigators, before the attacks.
Canada’s Attacks Were Predictable – Western Security Agencies are Prime Suspects
It was warned last month after security agencies staged scares in both the US and Australia, that suspects under investigation, being walked through planned terrorist attacks by Western security agencies as part of “sting operations” would inevitably be switched to live terrorist attacks.
In mid-September A Rochester man, Mufid A. Elfgeeh, was accused by the FBI of attempting to provide material support to ISIS (undercover FBI agents), attempting to kill US soldiers, and possession of firearms and silencers (provided to him by the FBI). The FBI’s own official press release stated (emphasis added):
According to court records, Elfgeeh attempted to provide material support to ISIS in the form of personnel, namely three individuals, two of whom were cooperating with the FBI. Elfgeeh attempted to assist all three individuals in traveling to Syria to join and fight on behalf of ISIS. Elfgeeh also plotted to shoot and kill members of the United States military who had returned from Iraq. As part of the plan to kill soldiers, Elfgeeh purchased two handguns equipped with firearm silencers and ammunition from a confidential source. The handguns were made inoperable by the FBI before the confidential source gave them to Elfgeeh.
It was warned that only an inoperable firearm stood between Elfgeeh’s arrest and his successful execution of deadly plans hatched by him and his undercover FBI handlers. This script, written by the FBI to entrap Elfgeeh, would be followed almost to the letter in live attacks subsequently carried out in Canada resulting in the death of two Canadian soldiers. Conveniently, both suspects are now dead and little chance remains of ascertaining the truth of who they were in contact with and how they carried out their deadly attacks.
With both suspects having been on both US and Canadian watch lists – it is very likely undercover agents were involved in either one or both cases. While many possibilities exist, Western security agencies should be among the first suspects considered as potential collaborators.
A Modern-Day Operation Gladio – Inducing Fear, Obedience, and Control
Before Elfgeeh’s entrapment and later live attacks in Canada, US policymakers and pundits had begun in earnest setting the rhetorical stage for eventual staged attacks. With serial beheadings failing to raise Western public support necessary for an expedient intervention in Syria, more insidious provocations appeared to be in the works. Setting the stage, a CBS/Associated Press story titled, Former Deputy CIA Director: I Would Not Be Surprised If ISIS Member Shows Up To US Mall Tomorrow With AK-47, would claim immediately after the initial James Foley ISIS execution video that:
The short-term concern is the Americans that have gone to fight with ISIS and the west Europeans that have gone to fight with ISIS could be trained and directed by ISIS to come to the United States to conduct small-scale attacks, Morell stated. If an ISIS member showed up at a mall in the United States tomorrow with an AK-47 and killed a number of Americans, I would not be surprised.
Morell warned that over the long-term the extremist group could be planning for a 9/11-style attack that killed thousands of Americans.
The FBI has a long list of foiled terror plots of its own creation. More disturbingly are the plots they conceived but “accidentally” allowed to go “live.” One might recall the 1993 World Trade Center bombing. FBI agents, according to the New York Times, were indeed overseeing the bombers that detonated a device killing six and wounding many more at the World Trade Center.
In their article, “Tapes Depict Proposal to Thwart Bomb Used in Trade Center Blast,” NYT reported:
Law-enforcement officials were told that terrorists were building a bomb that was eventually used to blow up the World Trade Center, and they planned to thwart the plotters by secretly substituting harmless powder for the explosives, an informer said after the blast.
The informer was to have helped the plotters build the bomb and supply the fake powder, but the plan was called off by an F.B.I. supervisor who had other ideas about how the informer, Emad A. Salem, should be used, the informer said.
The account, which is given in the transcript of hundreds of hours of tape recordings Mr. Salem secretly made of his talks with law-enforcement agents, portrays the authorities as in a far better position than previously known to foil the Feb. 26 bombing of New York City’s tallest towers. The explosion left six people dead, more than 1,000 injured and damages in excess of half a billion dollars.
Considering the 1993 bombing and the fact that the FBI literally oversaw the construction and deployment of a deadly bomb that killed 6, it is clear that the FBI can at any time through design or disastrous incompetence, turn one of their contrived entrapment cases into a live terror attack. One can only guess at how many similar FBI operations are currently taking place within the United States involving ISIS sympathizers – any one of which could be turned into a live terror attack provided the weapons handed over to potential terrorists are functioning, just as the bomb was in 1993 when it was driven into the lower levels of the World Trade Center.
It is very likely that the recent attacks in Canada involved at least one “informant” working for the FBI. Because the FBI uses confidential informants to handle suspects, if a plot is switched ”live,” the informant will be implicated as an accomplice and the FBI’s covert role will remain uncompromised.
Everything from a mass shooting to a bombing, and even an Operation Northwoods-style false flag attack involving aircraft could be employed to provide Wall Street and London with the support it needs to accelerate its long-stalled agenda of regime change and reordering in both Syria and across the Iranian arc of influence. Readers may recall Operation Northwoods, reported on in an ABC News article titled, “U.S. Military Wanted to Provoke War With Cuba,” which bluntly stated:
In the early 1960s, America’s top military leaders reportedly drafted plans to kill innocent people and commit acts of terrorism in U.S. cities to create public support for a war against Cuba.
Code named Operation Northwoods, the plans reportedly included the possible assassination of Cuban émigrés, sinking boats of Cuban refugees on the high seas, hijacking planes, blowing up a U.S. ship, and even orchestrating violent terrorism in U.S. cities.
In addition to Operation Northwoods, the public must also consider NATO’s Operation Gladio, and its larger “stay behind” networks established after World War II across Europe and at the center of multiple grisly assassinations, mass shootings, and terrorist bombings designed to demonize the Soviet Union as well as criminalize and crush support for left-leaning political parties growing in popularity in Western Europe. It would be determined that NATO’s own covert militant groups were killing innocent Western Europeans in order to effect a “strategy of tension” used to instill fear, obedience, and control over Western populations.
That the FBI and Australian authorities had coordinated staged security operations in tandem on opposite ends of the globe to terrify their respective populations into line behind an impending war with Syria, and now two highly suspicious attacks have been carried out using the very script Western security agencies were using to lead suspects through “sting operations,” suggests a new “Operation Northwoods” or “Operation Gladio” of sorts is already being executed.
Staged executions on cue by ISIS in the Middle East of US and British citizens at perfectly timed junctures of the West’s attempt to sell intervention both at home and abroad, and now live shootings just in time to heighten a new “strategy of tension” reek of staged mayhem for the sole purpose of provoking war. Could grander and ultimately more tragic mayhem be in store? As ABC News’ article on Operation Northwoods and the Military Channel’s documentary on Operation Gladio suggest, there is no line Western special interests will hesitate to cross.
With the West attempting to claim ISIS now has a “global” reach, the US and its partners’ attempts to obfuscate the very obvious state-sponsorship it is receiving will become exponentially more difficult. That the FBI is admittedly stringing along easily manipulated, malevolent patsies who at any time could be handed real weapons and sent on shooting sprees and/or bombings – and now apparently have been – Americans, Canadians, Europeans, and Australians would be foolish to conclude that their real enemy resides somewhere in Syria and not right beside them at home, upon the very seats of Western power.
Copyright © 2014 Global Research
Employees, leaving the building of the Parliament of Canada at the time of the shooting, Ottawa October 22, 2014
© East News/ The Canadian Press
MOSCOW, October 23 (RIA Novosti) – Three people, who were injured as a result of the shooting in Ottawa, Canada, have been discharged from hospital, the Ottawa Hospital stated.
“We can confirm that all three patients involved in today’s incident have been discharged. We wish them a speedy recovery,” the hospital announced through its Twitter account on Wednesday evening.
The Ottawa Hospital earlier reported that four people had been hospitalized as a result of the shooting in Ottawa. One of the injured, however, later died from the wounds received. The state of the other three patients was considered as stable.