“Former money manager Ann Barnhardt, who in November of 2011 made the decision to cease operations of her brokerage firm and return funds to her customers citing “systemic” problems within the entire financial industry, has issued a new warning about the stability of US banks and the safety of individual deposit accounts.
The warning, stemming from a recent federal appeals court ruling surrounding customer funds lost during the 2007 collapse of Chicago futures broker Sentinel, indicates that individuals who lose deposited funds because a financial institution improperly manages that money, even if those funds are supposed to be “segregated” from other operations of the firm, are essentially left with no recourse if the firm goes belly-up. According to the court, a misallocation of those customer funds, “is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud’ its customers.””
Via SHTF Plan
“The deconstruction of the United States is nearing completion.
Plans set in motion decades ago are now beginning to become a reality. Everything we were, or thought we were, has been carefully and strategically taken apart and reassembled as part of the United Nations plantation. The UN is the headquarters for the burgeoning world government and for decades our elected officials, unelected bureaucrats and other shadowy figures that slither about the halls of what was our government, have worked tirelessly to bring about our end. We are just about there.”
Via Alt Market
“I have an eerie feeling that the elite control freaks are preparing something big to make all of their sinister dreams come true in one shot. We know they want war with Iran, control over the Internet, and economic collapse on their own terms. So what would be the one act that could make all this happen?
There is one event that can bring all of this about: a false flag cyber attack on Western banking institutions that they can pin on Iran.
They would be able to blame an economic crash on this attack instead of the problems inherent in the system, while getting all the motive they need to impose draconian Internet controls and justifying war on Iran. It’s a triple whammy.
A few recent items in the news have sparked this line of thinking. First, the empire’s ‘war on terror’ paradigm is crumbling fast since they can no longer cover up their support for Al Qaeda. They desperately need a distraction from this realization before the masses catch wind of this betrayal. And certainly if they fail to gain support for ousting Assad in Syria, there is no hope of preemptively attacking Iran without irrevocably losing the public’s trust.”
Via Activist Post
“On 9 Aug 2012, the Department of Commerce, for the National Oceanic and Atmospheric Administration by way of the National Weather Service, put out a solicitation for a small variety of ammunition.
The solicitation breaks down the requirements:
-16,000 rounds of ammunition for semiautomatic pistols to be factory-loaded .40 S&W caliber, 180-grain jacketed hollow point (JHP).
-6,000 rounds of frangible, 125-grain CFRHT .40 caliber.
-24,000 rounds of ammunition for semiautomatic pistols to be factory-loaded .40 S&W caliber, 180-grain jacketed hollow point (JHP).”
Via Activist Post
Good news, America, even in these partisan times, most of us can agree on one thing: The political media is horrible. (Wait, that doesn’t sound like good news at all….)
A new Daily Kos/SEIU poll conducted by the Democratic-leaning Public Policy Polling found that nearly 8 in 10 people (78 percent) hold an unfavorable view of the political media. Just 10 percent, meanwhile, had good things to say about the outlets producing political journalism. Or, in the words of the Daily Kos: “Everyone agrees—the political media sucks.”
In only three demographic blocks did approval rating for political news sources break out of the teens, and the highest was among those who did not complete high school, at a still rather meager 25 percent.”
“Something really strange appears to be happening. All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse. Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us. Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either. Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America “to develop plans for staving off collapse” for the last two years. By itself, that wouldn’t be that big of a deal. But when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge. Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and I have been personally told that a significant number of Wall Street bankers have been shopping for “prepper properties” in rural communities this summer. Meanwhile, there have been reports that the U.S. government has been stockpiling food and ammunition, and Barack Obama has been signing a whole bunch of executive orders that would potentially be implemented in the event of a major meltdown of society. So what does all of this mean? It could mean something or it could mean nothing. What we do know is that a financial collapse is coming at some point. Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars. That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.”
“A report from the Agriculture Department’s Inspector General has revealed some stunning examples of financial waste in the Department’s nascent technology security efforts, which have mismanaged about $63 million in taxpayer funding.
Among the IG’s findings: the USDA spent more than $2 million on an internship program that only hired one full-time intern, $3 million on technology hardware that was never used, and $235,000 on a project that was later canceled due to redundancy.
The office of USDA’s chief information officer, which was the subject of the report, “had not established internal control procedures, such as monitoring and oversight, for project management, and did not adequately plan its projects or how it would utilize resources,” the IG noted in explaining the underlying causes of financial mismanagement.”
Deep Fried Black Swan Lands As China Admits It Has A Food Inflation Problem, Releases Corn, Rice From Reserves
“Last week we wrote an article that to many was anathema: namely an explanation why everyone is deluding themselves in their expectation that the PBOC would ease, soft, hard, or just right landing notwithstanding. The reason? The threat that food inflation is about to read its ugly head which is “Why The Fate Of The Global Equity Rally May Rest In The Hands Of Soybeans.” This was merely a continuation of our observations from a month ago that as a result of the Black Swan being “deep fried” in 2012, that the threat of food inflation will keep key BRIC central banks in check for a long time. As of today the threat has become fact, because as China Daily reports “China will release corn and rice from state reserves to help tame inflation and reduce imports as the worst US drought in half a century pushes corn prices to global records, creating fears of a world food crisis…The release may prompt Chinese importers to cancel shipments in the near term and take some pressure off international corn prices, which set a new all-time high on Friday as the US government slashed its estimate of the size of the crop in the world’s top grain exporter.” Sure, as every other short-termist measure the world over, it may help with prices in the short-term, but will merely expose China, and thus everyone, to the threat of a much greater price spike in the future. Because just as the strategic petroleum reserve release did nothing to help gas prices, nor the short selling ban in the US and Europe did anything to help the underlying broken financial system, so this will merely force the local population to scramble and ration whatever food they can get asap, now that the government has admitted there is, indeed, a food inflationary problem.”
Via Zero Hedge
“With less than three months to go, the outcome of the November election remains highly uncertain. SocGen notes that, as always, economic performance over the coming months will be a key determinant of who wins and who loses. If the elections were held today, the most likely outcome would be a Republican win in both Congressional races and a Democratic win in the race for the White House. This means that any new significant legislation will almost certainly have to be a product of compromise. In this sense, we may very well be looking at a status quo in terms of bipartisanship and gridlock which have dominated Washington politics over the past few years. This would be bad news at a time when the country faces a number of serious challenges with significant long-term implications. From the economy to long-term fiscal health, and from the debt-ceiling to Housing, Healthcare, and energy policy differences, the following provides a succinct review.”
Via Zero Hedge
“The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM’s stock price was $22.20 a share.
On Monday, GM stock fell $0.07, or 0.3 percent, to $20.47. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout. At the current price, the Treasury would lose more than $16 billion on its GM bailout.
The steep decline in GM’s stock price has indefinitely delayed the Treasury’s sale of its remaining 26 percent stake in GM. No sale will take place before the November election.”
Via The Detroit News