“And what exactly is causing our economic problems? In short: inflation. Both the creation of new money unbacked by productive activity — literally, conjured up from nothing at the whim of a central banker — and the artificially low cost of borrowing to expand the amount of debt…again, thanks to central bankers buying government debt with the money they create in order to shove interest rates down.
Inflation erodes the value of savings. It causes middle-class wages to rise more slowly than prices over time. The well connected — mainly, commercial banks — get the money first and benefit, while their spending of the new money causes prices to rise. Everyone else has to beg and hope for cost-of-living increases to their wages.
Inflation also causes asset bubbles that tend to benefit the rich while wiping out the middle class and poor, who pile into bubbles just in time to be left holding the bag.
In other words, inflation is causing the things that have people revolting in the streets. And central banks cause inflation. “
“NextGov.com is reporting that the FBI will begin rolling out its Next Generation Identification (NGI) facial recognition service as early as this January. Once NGI is fully deployed and once each of its approximately 100 million records also includes photographs, it will become trivially easy to find and track Americans.
As we detailed in an earlier post, NGI expands the FBI’s IAFIS criminal and civil fingerprint database to include multimodal biometric identifiers such as iris scans, palm prints, photos, and voice data. The Bureau is planning to introduce each of these capabilities in phases (pdf, p.4) over the next two and a half years, starting with facial recognition in four states—Michigan, Washington, Florida, and North Carolina—this winter.”
Via Activist Post
“The first professional survey data about the protesters is out, and the information is pretty interesting. The thing that really jumped out at me, though, was the news that half of the protesters believe the big bank bailouts were necessary.
So let’s try to wrap our heads around this. They are angry that the banks got our money, so they’re protesting there. But a full half of the protesters believe it was necessary for the government to give billions and billions of dollars to the banks. How do their heads not explode from holding this contradiction inside?”
Via David McElroy
“The paradigm is shifting, and there is no turning back. The jobs bill won’t save us. More stimulus won’t save us. The worthless, counterproductive actions of our elected representatives have failed miserably – likely even made things worse.
The economic situation of this nation is dire. We’re well outside of short-term cyclical downturn territory here. There will be no meaningful growth 18 months from now, as this is not a recession. We’re talking deep depression levels of economic inactivity that may potentially span decades.
This may not sound feasible to some, but just look at history for guidance to put the reality of the situation into perspective. When paradigms shift, the reverberations affect some generations for their entire lifetimes. Many people will not be able to make the adjustment, and they may very well end up living the remainder of their lives in poverty and squalor. Simply look to recent historical accounts of the multi decade periods in which we saw the German Wiemar hyperinflation, the Great Depression in the U.S., and the countless examples of generational poverty throughout the world in just the last 100 years. It has happened before. It will happen again.”
Via SHTF Plan
“Most people have no idea that Wall Street has become a gigantic financial casino. The big Wall Street banks are making tens of billions of dollars a year in the derivatives market, and nobody in the financial community wants the party to end. The word “derivatives” sounds complicated and technical, but understanding them is really not that hard. A derivative is essentially a fancy way of saying that a bet has been made. Originally, these bets were designed to hedge risk, but today the derivatives market has mushroomed into a mountain of speculation unlike anything the world has ever seen before. Estimates of the notional value of the worldwide derivatives market go from $600 trillion all the way up to $1.5 quadrillion. Keep in mind that the GDP of the entire world is only somewhere in the neighborhood of $65 trillion. The danger to the global financial system posed by derivatives is so great that Warren Buffet once called them “financial weapons of mass destruction”. For now, the financial powers that be are trying to keep the casino rolling, but it is inevitable that at some point this entire mess is going to come crashing down. When it does, we are going to be facing a derivatives crisis that really could destroy the entire global financial system.”
“You may remember the Wall Street Insider from a previous interview in which he suggested that elements within the Obama administration were mobilizing to incite class and race conflicts across the United States. That report was made available in mid August of this year, just before the Occupy Wall Street movements began. As we can see, certain groups, some with direct White House ties, as well as thousands of communist sympathizers, are now very much moving in that direction – especially in terms of turning one income class of people against another.
The reason we mention this previous report is that the “Wall Street Insider” is an anonymous source who now makes regular appearances in interviews with The Ulsterman Report. Due to his request to maintain anonymity, it has been suggested by some that the Insider is not credible. However, as has been shown time and again, Ulsterman’s reporting with both, the Wall Street and White House insiders, has been way ahead of the curve.”
Via SHTF Plan
Jobless Claims: Eh, Nothing Doing Here
“Nothing really exciting here, but it should be noted…
In the week ending October 15, the advance figure for seasonally adjusted initial claims was 403,000, a decrease of 6,000 from the previous week’s revised figure of 409,000. The 4-week moving average was 403,000, a decrease of 6,250 from the previous week’s revised average of 409,250.
Still over “4″ – nothing changing here…”
Via Market Ticker
BLS Reports Two Sequential Initial Claims Misses In A Row In Claims: One Current And One Prior Revised
“When we discussed last week’s intiial claims number we said, “In today’s weekly dose of BS from the BLS, we get the previous week’s massive beat of 401K revised to 405K, cutting the 410K estimate beat in half. But what is important is that the expectation for this week of 405K was once again “massively beaten” by a whopping 1K at 404K. Of course, next week this number will be revised to 408K meaning the consensus was missed but no robots will care.” Sure enough, last week’s beat was enough for 5 ES points. And even surer enough, we were spot on: last week’s 404K “beat” was just revised to a 409K “miss.” “
Via Zero Hedge