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Friday, January 31, 2014

Spanish Soccer Players Refuse To Play Ball After Going Unpaid For Months | Zero Hedge

Spanish Soccer Players Refuse To Play Ball After Going Unpaid For Months | Zero Hedge

The players of Spain's Racing Santander soccer club have not been paid for several months. While recent 'plans' for Europe's youth unemployed being placed into 'slavery' may be popular among the European politicians, it seems the Spanish soccer players have drawn the line. As Euronews reports, In an incredible show of dissatisfaction at management - which fans call "cheats" - the entire team and coaching staff refused to play ball - standing stoically in the middle of the field as their King's Cup game began against big rival Real Sociedad...  

Football players of Spanish club Racing Santander declined to compete against Real Sociedad in the second leg of the quarter-final of the Copa Del Rey (King’s Cup) in protest at not having being paid for several months.
Racing’s manager as well as all members of the technical staff have also received no moneyfrom the club in that time.
Santander showed up for the game at its home ground, El Sardinero and the players warmed up as usual. Then, as soon as the referee had blown his whistle for kick-off, the Santander players gathered in the centre of the pitch and refused to participate in the match.
Sociedad’s players passed the ball around in their own half for a short while before one kicked the ball into touch. At that point the referee abandoned the game.
Racing’s fans were warned in advance about the players’ decision but many braved heavy rain and low temperatures; around 7,000 of them showed up in El Sardinero to stand by the players, applauding as the protest began.
Some had prepared large anti-management banners and had worked on a chant directed at the club’s management: “Go away cheats”.
Club chairman Angel Lavin did not show up at the match. Directors Leticia Vila, Jorge Madrazo and Lavin’s nephew, Jairo Lavin, were jeered as they entered the ground but failed to appear in the directors’ box.


On the bright side - at least if and when they get paid they won't have to pay 75% of it to the government like French soccer players...

Chief of Police Harassed by Feds After Signing Pledge to Uphold Constitution

New Google patent suggests automatically sending your videos and photos to law enforcement

New Google patent suggests automatically sending your videos and photos to law enforcement

We come across tons of interesting patents each and every day, but recently none have caused as much concern and curiosity as this one. Google recently filed a patent for a system that identifies when and where a “mob” event takes place and sends multimedia alerts to relevant parties. The patents are actually titled “Mob Source Phone Video Collaboration” and “Inferring Events Based On Mob Sourced Video“.
No… not that mob. In this case a “mob” is essentially an activity or event attracting an abnormal amount of attention in the form of video recording and picture taking. Here’s a quick blurb from the patent description:
Excerpt from US Patent #20140025755

“When there are at least a given number of video clips with similar time stamps and geolocation stamps uploaded to a repository, it is inferred that an event of interest has likely occurred, and a notification signal is transmitted (e.g., to a law enforcement agency, to a news organization, to a publisher of a periodical, to a public blog, etc.).”
fbi-badge2
The fact that “law enforcement agencies” and “news organization(s)” are the first two examples provided by Google themselves is our greatest cause for concern. Especially at a time when privacy issues seem to take center stage all too often in the worst way possible.
Much has been made about NSA snoopingprivacyFISAcivil liberties and much more over the past year, so to think Google filed this patent application with the idea of potentially and proactively feeding information to law enforcement is a bit unsettling.
We’ve already seen rudimentary examples of law enforcement using the public’s photos and videos to track down culprits. Look no further than the Boston Marathon bombing last year. The FBI used photos and video from attendees’ cell phones to help identify the parties responsible for that unfortunate event. With a system like this, they might not have had to procure the actual phones to get what they needed.

Third Banker, Former Fed Member, "Found Dead" Inside A Week | Zero Hedge

Third Banker, Former Fed Member, "Found Dead" Inside A Week | Zero Hedge


If the stock market were already crashing then it would be simple to blame the dismally sad rash of dead bankers in the last week on that - certainly that was reflected in 1929. However, for the third time in the last week, a senior financial executive has died in what appears to be a suicide. As Bloomberg reports, following the deaths of a JPMorgan senior manager (Tuesday) and a Deutsche Bank executive (Sunday), Russell Investments' Chief Economist (and former Fed economist) Mike Dueker was found dead at the side of a highway in Washington State. Police said the death appeared to be a suicide.
Mike Dueker, the chief economist at Russell Investments, was found dead at the side of a highway that leads to the Tacoma Narrows Bridge in Washington state, according to the Pierce County Sheriff’s Department. He was 50.

He may have jumped over a 4-foot (1.2-meter) fence before falling down a 40- to 50-foot embankment, Pierce County Detective Ed Troyer said yesterday. He saidthe death appeared to be a suicide.

Dueker was reported missing on Jan. 29, and a group of friends had been searching for him along with law enforcement. Troyer said Dueker was having problems at work, without elaborating.

Dueker was in good standing at Russell, said Jennifer Tice, a company spokeswoman. She declined to comment on Troyer’s statement about Dueker’s work issues.
But as Michael Snyder noted recently, if the stock market was already crashing, it would be easy to blame the suicides on that.  The world certainly remembers what happened during the crash of 1929...
Historically, bankers have been stereotyped as the most likely to commit suicide. This has a lot to do with the famous 1929 stock market crash, which resulted in 1,616 banks failing and more than 20,000 businesses going bankrupt.

The number of bankers committing suicide directly after the crash is thought to have been only around 20, with another 100 people connected to the financial industry dying at their own hand within the year.
Dueker had also been a research economist at the St. Louis Fed:
He published dozens of research papers over the past two decades, many on monetary policy, according to the St. Louis Fed’s website, which ranks him among the top 5 percent of economists by number of works published. His most-cited work was a 1997 paper titled “Strengthening the case for the yield curve as a predictor of U.S. recessions,” published by the reserve bank while he was a researcher there.
So, with stocks a mere 4% off their highs, are so many high ranking and well respected bankers committing suicide?

Rising Allergies Triggered by GMO Ingredients In 80% of Groceries?

 



http://www.responsibletechnology.org/...
Since genetically modified foods hit the market in the 1990s, allergies have skyrocketed. Studies compiled by Jeffrey M. Smith, head of the Institute for Responsible Technology and author of "Genetic Roulette: The Documented Health Risks of Genetically Engineered Foods" show that common GM ingredients, in addition to synthetic chemical food additives, may be comprising the health of ordinary people in the United States and across the world. While simple food allergies have become more common or more intense over the past couple of decades, deadly reactions to wheat, corn and soy have prompted major avoidance strategies for sufferers of Crohn's Disease, IBS, Celiac's Disease, gluten intolerance, eczema, AH/HD and many more symptoms with common underlying digestive and gastrointestinal triggers. Are genetically modified foods to blame? Consider the research -- including the 65 documented health risks of GMO compiled by Jeffrey M. Smith... while the FDA and biotech industry insist that GMO foods are safe and "substantially equivalent" to traditional foods made without genetic engineering.

Original music by Melissa Melton (copyright Melissa Melton; used with permission)

http://www.responsibletechnology.org/...
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http://www.amazon.com/Genetic-Roulett...
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#SOTU? STFU! - #NewWorldNextWeek

 



Welcome to http://NewWorldNextWeek.com — the video series from Corbett Report and Media Monarchy that covers some of the most important developments in open source intelligence news. This week:

Story #1: Obama Misleads Nation on Iran Deal
http://ur1.ca/gj6ao
Obama Brought 60,000 Troops Home From Afghanistan, But Sent 50,000 There
http://ur1.ca/gj6bx
In State of the Union, Obama Silent on NSA Crypto Reform
http://ur1.ca/gj6c2
Nuclear Ambiguity: Israel's "Secret" Arsenal
http://ur1.ca/5jbp5

Story #2: Major Patent Expiration Could Spark a Second 3D Printing Revolution
http://ur1.ca/gj6cd
Key 3D printing patent expired yesterday
http://ur1.ca/gj0qj
Solutions: 3D Printing
http://ur1.ca/gj6ck

Story #3: First American Arrested With Help From Drone Is Sentenced
http://ur1.ca/gj6cr
NWNW Flashback: Drones Assist In Corralling North Dakota Cattle Rustlers (Dec 15, 2011)
http://ur1.ca/7z4q9
West Virginia Official Says Residents Breathing Cancer-Causing Agent After Chemical Spill
http://ur1.ca/gj6d1
Showering in Formaldehyde? Fresh Fears in West Virginia
http://ur1.ca/gj6d4

Visit http://NewWorldNextWeek.com to get previous episodes in various formats to download, burn and share. And as always, stay up-to-date by subscribing to the feeds from Corbett Reporthttp://ur1.ca/39obd and Media Monarchy http://ur1.ca/kuec Thank you.

Previous Episode: Who Is Behind the Ukraine Riots?
http://www.youtube.com/watch?v=ZdTDdY...

Bus plows through flood water in Rome as heavy rains slam Italy

 



The capital Rome also experienced heavy rain, especially in the north of the city where at least one subway stop was closed for flooding and where traffic was snarled by rising water and fallen tree limbs.

Futures Tumble As "Deflation Monster" Rages In Europe; EMs Continue To Rumble | Zero Hedge

Futures Tumble As "Deflation Monster" Rages In Europe; EMs Continue To Rumble | Zero Hedge

The wild volatility continues, with markets set to open well in the negative wiping out all of yesterday's gains and then some, only this time the catalyst is not emerging market crashing and burning (at least not yet even though moments ago the ZAR weakened to a new 5 year low against the USD and the USDTRY is reaching back for the 2.30 level) but European inflation, where the CPI printed at 0.70%, dropping once again from 0.8%, remaining under 1% for the fourth straight month and missing estimates of a pick up to 0.9%. Perhaps only economists are surprised at this reading considering last night Japan reported its highest (energy and food-driven) inflation print in years: so to explain it once again for the cheap seats - Japan is exporting its "deflation monster", Europe is importing it. It also means Mario Draghi is again in a corner and this time will probably have to come up with some emergency tool to boost European inflation or otherwise the ECB will promptly start to lose credibility - is the long awaited unsterilized QE from the ECB finally imminent?
European equities have traded in the red from the get-go with underperformance in financials, after being put under pressure by Banco Popular in Spain, whose bad loan ratio soared further, compounding fears of a weak credit market in the periphery after recent M3 data showed private sector credit contracting at the fastest pace on record.
The latest Eurozone CPI release came in at 0.70% vs. Exp. 0.90% and has presented ECB President Draghi with a headache, raising the prospect of more policy easing by the ECB. This led to a bull flattening of the Euribor curve and downward pressure on EUR/JPY and USD/JPY despite earlier support being provided for EUR through monthended buying by the Buba in EUR/GBP. Elsewhere, Bunds have been provided support following the CPI reading and month-end buying.
Looking at the day ahead, the focus comes back to the data beginning with  Eurozone inflation for January which may have some bearing ahead of next week’s ECB meeting. The consensus is that the headline will print at 0.9% YoY (vs 0.8% previous) while the core estimate will be slightly lower at 0.8%. Euroarea unemployment data for December will also be released today. In the US the focus will be on the Chicago PMI ahead of next week’s ISM. Personal income/spending and the final Univ of Michigan consumer confidence reading round out this week’s US data calendar. Note that China’s official manufacturing PMI will be released early on Saturday morning (London 1am) – consensus is expecting a print of 50.5. This will be closely watched following the deceleration suggested by the HSBC manufacturing PMI (49.5). Mastercard and Simon Property Group will report earnings prior to the US market open today.
Overnight Headine Bulletin from Bloomberg and RanSquawk
  • European equities have remained in the red from the open after being put under pressure by financials following Banco Popular's pre-market update.
  • The latest Eurozone CPI release came in softer than expected and has consequently raised the prospect of further ECB policy easing.
  • Looking ahead for the session there is the release of Canadian GDP, US Personal Income, PCE Deflator, Chicago PMI and Univ. of Michigan Confidence.
  • Treasuries gain for fifth day, 10Y yield falls to new low since Nov. overnight, headed for biggest monthly gain in a year as selloff in EM currencies resumes.
  • Euro-area consumer prices rose 0.7% in Jan., the fourth straight reading below 1%; ECB’s target for inflation is just under 2%
  • Japan’s inflation accelerated in December, industrial output gained and a measure of demand for workers strengthened, signaling gains for Abe’s campaign to end two decades of stagnation
  • The largest banks in Europe will have to show their capital won’t dip below 5.5% of assets in an economic crisis, the European Union’s top banking regulator said
  • Ukraine’s opposition accused President Viktor Yanukovych of foul play as he took sick leave and his Defense Ministry asked for “urgent” steps to counter what it said was an escalation the nation’s political crisis
  • Sovereign yields decline. EU peripheral spreads widen. Asian equity markets mixed, with Nikkei and Shanghai lower, European  markets and U.S. stock-index futures fall. WTI crude and copper lower; gold higher
US Data Docket
  • 8:30am: Employment Cost Index, 4Q, est. 0.4% (prior 0.4%)
  • 8:30am: Personal Income, Dec., est. 0.2% (prior 0.2%); Personal Spending, Dec., est. 0.2% (prior 0.5%); PCE Deflator m/m, Dec., est. 0.2% (prior 0.0%)
  • 9:45am: Chicago Purchasing Managers, Jan., est. 59 (prior 59.1, revision 60.8)
  • 9:55am: UofMich. Confidence, Jan. Final, est. 81.0 (prior 80.4)
  • 11:00am: Fed to purchase $3.75b-$4.75b in 2018 sector

Syncretism With Santos Bonacci - Our True Value - First radio show after being released from jail

 




Bundestag stimmt für Zulassung von Gen-Mais 1507 | DEUTSCHE WIRTSCHAFTS NACHRICHTEN

Bundestag stimmt für Zulassung von Gen-Mais 1507 | DEUTSCHE WIRTSCHAFTS NACHRICHTEN

Die Abgeordneten im Bundestag befürworten eine Zulassung von Mais 1507. Als Lebens- und Futtermittel ist der Gen-Mais von DuPont bereits zugelassen. Im Februar wird im EU-Ministerrat über die Anbau-Genehmigung abgestimmt.
Die Abgeordneten im Bundestag sind für eine Zulassung von Genmais 1507. Kritiker sehen in einem EU-weiten Mais-Anbau eine Gefahr für Mensch und Natur. (Foto: dpa)
Die Abgeordneten im Bundestag sind für eine Zulassung von Genmais 1507. Kritiker sehen in einem EU-weiten Mais-Anbau eine Gefahr für Mensch und Natur. (Foto: dpa)
Der Bundestag hat sich in einer Abstimmung für den Anbau von Mais 1507 ausgesprochen. Ein entsprechender Antrag der Grünengegen die Zulassung zu stimmen, wurdeabgelehnt.
Die Grünen hatten eine Beschlussempfehlung und den Bericht des Ausschusses für Ernährung und Landwirtschaft vorgelegt. Die Opposition hatte das Parlament aufgefordert, die Regierung zu veranlassen, gegen den Mais 1507 zu stimmen.
Union und SPD stimmten fast einstimmig gegen den Antrag (451 Ja-Stimmen, 5 Nein-Stimmen, 18 Enthaltungen). Linke und Grüne stimmten geschlossen dafür, die EU-weite Zulassung zu verhindern.
Die SPD hatte am Parteitag am vergangenen Wochenende noch gegen eine Zulassung plädiert. „Die Menschen in Deutschland und Europa wollen keine Gentechnik in ihren Lebensmitteln“, erklärte das SPD-Präsidiumsmitglied Ute Vogt nach dem Parteitagsbeschluss. Sie verwies auf den Koalitionsvertrag, in dem sich Union und SPD verpflichtet hätten, „dieVorbehalte der Bevölkerung gegenüber der grünen Gentechnik anzuerkennen“. Die Bundesregierung müsse die Vorbehalte ernst nehmen und gegen Edie Zulassung stimmen.
Verboten werden kann der Anbau auf EU-Ebene nur noch, wenn ein EU-Rat vor dem 12. Februar das Genehmigungsverfahren stoppt. Der eigentlich zuständige Agrarministerrattagt demnach erst wieder am 16. Februar und damit zu spät, um noch ein Verbot zu beschließen. (mehr hier).
Die gegen bestimmte Pflanzenschutzmittel und Mottenlarven resistente Pflanze wurde von DuPont und Dow Chemical entwickelt und soll nach dem Wunsch der Agrarriesen in der EU zum Anbau zugelassen werden. Wenn sich bis zum 12. Februar im Ministerrat der EU keine qualifizierte Mehrheit gegen den Gen-Mais bildet, wird die Gen-Pflanze automatisch zugelassen.

California church leader accused of hiding ex-trustee’s sexual abuse of employee

California church leader accused of hiding ex-trustee’s sexual abuse of employee (via Raw Story )
The head of a San Francisco church is accused of covering up one of his former trustees’ sexual abuse toward an employee, including paddlings and coerced sexual activities, KGO-TV reported on Thursday. “Many of these sex acts and demands and the…

French Surveillance Programs Eerily Echo The NSA's, Right Down To Codifying Unconstitutional Collections

French Surveillance Programs Eerily Echo The NSA's, Right Down To Codifying Unconstitutional Collections (via Techdirt)
As the NSA leaks have expanded to detail spying activities in other countries, those governments affected have had a variety of reactions. In some cases, legitimately questionable tactics were exposed (potential economic espionage in Brazil, tapping…

PROJECT CAMELOT: LIVE WITH (White Hat) PALADIN ON BITCOIN & SUPERBOWL

 



Kerry Cassidy talks with Paladin from the White Hats (currently a columnist here on the Camelot site), all about BITCOIN..why it differs from fiat currency and the efforts of the PTB to stop it from replacing our monetary system. Paladin is uniquely qualified to weigh in on this topic as a forensic financial investigator with a background in corporate and government agency contracts. As a member of the website responsible for the investigation and publishing of a number of reports following the money into black projects and down the rabbit hole (http://tdarkcabal.blogspot.com/ ) his views of this current challenge to the corrupt monetary system should be fascinating and enlightening to those who will take the time to listen.

UPDATE: 

We will also be discussing the recent Terror Bowl letter that has been circulating around the internet for the last few days regarding a possible false flag event. There are some interesting nuances with this that again, Kerry and I have discussed in the past and the synchronicity of this letter demands that we discuss them. --Paladin

Keshe on cleaning up Fukushima

Unfortunately the video cannot be shared, to watch the video click here:
https://www.youtube.com/watch?v=4f02CcnHjSk

Clandestine Weapons Against Ordinary People

Here is an excerpt of this research:



SPECIAL SERVICES AGAINST THE ORDINARY PEOPLE

By Vadim V. Baranov, Tatyana A. Baranova (ne'e Spryskova), Sergei V. Baranov.


In the end of the 1970s, as we became the objects of close attention of the KGB/MVD, we suspected that we were subjected to application of substances impairing our health. The clinical picture coincided with that of chemical weapons applied in non lethal doses. This our assumption could be regarded as an extremely wild if it had not been confirmed by unofficial information received from the Ivanovo KGB and MVD officers: lieutenant-colonel Melnik Vadim Nikolaevich and junior lieutenant of the interior service Kolbashova (Kolchugina) Natalya Nikolaevna and others in the end of 1970-s and beginning of 1980-s regarding the use of chemical weapons against individuals.
This information served as a stimulus for a prolonged professional medical monitoring. The picture of this monitoring for the period of 1981-1996 showed that the scale in which special services apply substances that impair human health surpassed the worst expectations. It correlates with a demographic situation of Russian Federation (Genocide of Russian Population).
The results of these prolonged observations gave us possibility to conduct analysis and make some generalizations.
The material represented in this article is based, first of all, on our personal experience as persecuted victims, on our observations and also on information from open sources.
As to special services, their own destructive activity is regarded by themselves as top-secret.



In a democratic society, or a society that has a democratic appearance, the spectrum of traditional methods of pressure on the members of the society is inevitably narrowed, giving way to clandestine means of individual terror known as (Rus: "sistema vnesudebnogo presledovaniya") "the system of outlawed persecution".

As it follows from the open publications, the most powerful weapons of this system, so called "special means", were and continue to be the weapons developed since the time of Vladimir Lenin in the notorious "Special Office" (Rus: "Spetsialny Kabinet"), which later transformed into top secret toxicological "Laboratory X" of professor Mairanovsky, bacteriological laboratory of academician Muromtsev and so on... Subsequently the weapons were elevated by the modern followers to the qualitatively new level opening a possibility to organize an individual terror on a massive scale.

The methods elaborated by special services for the limited purposes of "special operations" are on massive scale transferred to peaceful population in order to create artificial unhealthiness with the aim of:

  • behavior modification;
  • reduction of social and political activity of competitors and opponents;
  • suppression of any non sanctioned initiative in any sphere of life beginning from a domestic one;
  • and more often merely against unwanted persons.
The "artificial unhealthiness" of targeted victims is achieved by clandestine application of the widest spectrum of chemical or biological substances - "special means" which cause deterioration of mental or physical health (or both) of various degree and duration. It should be emphasized that such sort of actions in any case cause artificial decline of life quality, accelerate biological aging, artificially shorten life expectancy. The same practice extended to it's lethal extreme makes it possible to carry out mass purges camouflaging them under social and economic difficulties. 

To continue: http://www.baranovfamily.org/

US Intel Suggests An Attack On American Soil Is Now Intensifying

 



Get economic collapse news throughout the day visithttp://x22report.com
More news visit http://thepeoplesnewz.com

Unemployment big miss we are now back to levels 6 months ago. Home sales are continuing to plunge, less people signed contracts for existing homes. The hedge fund and flippers are having a problem unloading the homes at this time. President Obama pushing Executive Orders to disarm the American people, if the next event does not push the gun bills through the senate the President will do it on his own. As the geneva II talks break down the US government says military option still on the table. US intel suggests that an al-Qaeda terrorist attack is now intensifying. Be prepared for a false flag.

Why is the Federal Reserve Tapering the Gold Market? | Global Research

Why is the Federal Reserve Tapering the Gold Market? | Global Research


gold
On January 17, 2014, we explained “The Hows and Whys of Gold Price Manipulation.”
In former times, the rise in the gold price was held down by central banks selling gold or leasing gold to bullion dealers who sold the gold. The supply added in this way to the market absorbed some of the demand, thus holding down the rise in the gold price.
As the supply of physical gold on hand diminished, increasingly recourse was taken to selling gold short in the paper futures market. We illustrated a recent episode in our article. Below we illustrate the uncovered short-selling that took the gold price down today (January 30, 2014).
When the Comex trading floor opened January 30 at 8:20AM NY time, the price of gold inexplicably plunged $17 over the next 30 minutes. The price plunge was triggered when sell orders flooded the Comex trading floor. Over the course of the previous 23 hours of trading, an average of 202 gold contracts per minute had traded. But starting at the 8:20AM Comex, there were four 1-minute windows of trading here’s what happened:
8:21AM: 1766 contracts sold
8:22AM: 5172 contracts sold
8:31AM: 3242 contracts sold
8:47AM: 3515 contracts sold

image

Over those four minutes of trading, an average of 3,424 contracts per minute traded, or 17 times the average per minute volume of the previous 23 hours, including yesterday’s Comex trading session.
The yellow arrow indicates when the Comex floor opened for gold futures trading. There was not any news events or related market events that would have triggered a sell-off like this in gold. If an entity holding many contracts wanted to sell down its position, it would accomplish this by slowly feeding its position to the market over the course of the entire trading day in order to avoid disturbing the price or “telegraphing” its intent to sell to the market.
Instead, today’s selling was designed to flood the Comex trading floor with a high volume of sell orders in rapid succession in order to drive the price of gold as low as possible before buyers stepped in.
The reason for this is two-fold: Driving down the price of gold assists the Fed in its efforts to support the dollar, and the Comex is running out of physical gold available to be delivered to those who decide to take delivery of gold instead of cash settlement.
The February gold contract is subject to delivery starting on January 31st. As of January 29th, 2 days before the delivery period starts, there were 2,223,000 ounces of gold futures open against 375,000 ounces of gold available to be to be delivered. The primary banks who trade Comex gold (JP Morgan, HSBC, Bank Nova Scotia) are the primary entities who are short those Comex contracts.
Typically toward the end of a delivery month, these banks drive the price of gold lower for the purpose of coercing holders of the contracts to sell. This avoids the problem of having a shortage of gold available to deliver to the entities who decide to take delivery. With an enormous amount of physical gold moving from the western bank vaults to the large Asian buyers of gold, the Comex ultimately does not have enough gold to honor delivery obligations should the day arrive when a fifth or a fourth of the contracts are presented for delivery. Prior to a delivery period or due date on the contracts, manipulation is used to drive the Comex price of gold as low as possible in order to induce enough selling to avoid a possible default on gold delivery.
Following the taper announcement on January 29, the gold price rose $14 to $1270, and the Dow Jones Index dropped 100 points, closing down 74 points from its trading level at the time the tapering was announced. These reactions might have surprised the Fed, leading to the stock market support and gold price suppression on January 30.
Manipulation of the gold price is a foregone conclusion. The question is: why is the Fed tapering?
The official reason is that the recovery is now strong enough not to need the stimulus. There are two problems with the official explanation. One is that the purpose of QE has always been to support the prices of the debt-related derivatives on the balance sheets of the banks too big to fail. The other is that the Fed has enough economists and statisticians to know that the recovery is a statistical artifact of deflating GDP with an understated measure of inflation. No other indicator–employment, labor force participation, real median family income, real retail sales, or new construction–indicates economic recovery. Moreover, if in fact the economy has been in recovery since June 2009, after 4.5 years of recovery it is time for a new recession.
One possible explanation for the tapering is that the Fed has created enough new dollars with which to purchase the worst part of the banks’ balance sheet problems and transfer them to the Fed’s balance sheet, while in other ways enhancing the banks’ profits. With the job done, the Fed can slowly back off.
The problem with this explanation is that the liquidity that the Fed has created found its way into the stock and bond markets and into emerging economies. Curtailing the flow of liquidity crashes the markets, bringing on a new financial crisis.
We offer two explanations for the tapering. One is technical, and one is strategic.
First the technical explanation. The Fed’s bond purchases and the banks’ interest rate swap derivatives have made a dent in the supply of Treasuries. With income tax payments starting to flow in, fewer Treasuries are being issued to put pressure on interest rates. This permits the Fed to make a show of doing the right thing and reduce bond purchases. As a weakening economy becomes apparent as the year progresses, calls for the Fed to support the economy will permit the Fed to broaden the array of instruments that it purchases.
A strategic explanation for tapering is that the growth of US debt and money creation is causing the world to turn a jaundiced eye toward the US dollar and toward its role as world reserve currency.
Currently the Russian Duma is discussing legislation that would eliminate the dollar’s use and presence in Russia. Other countries are moving away from the dollar. Recently the Nigerian central bank reduced its dollar reserves and increased its holdings of Chinese yuan. Zimbabwe, which was using the US dollar as its own currency, switched to Chinese yuan. The former chief economist of the World Bank recently called for terminating the use of the dollar as world reserve currency. He said that “the dominance of the greenback is the root cause of global financial and economic crises.” Moreover, the Federal Reserve is very much aware of the flight away from the dollar into gold, because it is this flight that causes the Fed to manipulate the gold price in order to hold it down and in order to be able to free up gold for delivery.
The Fed knows that the ability of the US to pay its bills in its own currency is the reason it can stand its large trade imbalance and is the basis for US power. If the dollar loses the reserve currency role, the US becomes just another country with balance of payments and currency problems and an inability to sell its bonds in order to finance its budget deficits.
In other words, perhaps the Fed understands that a dollar crisis is a bigger crisis than a bank crisis and that its bailout of the banks is undermining the dollar. The question is: will the Fed let the banks go in order to save the dollar?
Paul Craig Roberts is a former Assistant Secretary of the US Treasury for Economic Policy.
Dave Kranzler traded high yield bonds for Bankers Trust for a decade. As a co-founder and principal of Golden Returns Capital LLC, he manages the Precious Metals Opportunity Fund.

India's Central Bank Governor: "International Monetary Cooperation Has Broken Down" | Zero Hedge

India's Central Bank Governor: "International Monetary Cooperation Has Broken Down" | Zero Hedge


India's recently crowned central bank head (and predecessor of the IMF's Nostradamal Olivier Blanchard), Raghuram Rajan, has not had it easy since taking over India's printer: with inflation through the roof, and only so much scapegoating of gold as the root of all of India's evils, Rajan announced an unexpected 50 bps interest rate hike two days ago in an attempt to preempt the massive EM capital flight that has roundhoused Turkey, South Africa, Hungary, Argentina and most other current account deficit emerging markets. Whether he succeeds in keeping India away from the EM maelstrom will be unveiled in the coming days, although if last summer is any indication, the INR has a long way to fall.
Hinting that the worst is yet to come, was none other than Rajan himself, who yesterday in an interview in Mumbai with Bloomberg TV India, said that "international monetary cooperation has broken down." Of course, when the Fed was monetizing $85 billion each and every month and stocks could only go up, nobody had a complaint about any cooperation, be it monetary or international. However, a 4% drop in the S&P from its all time high... and everyone begins to panic.
The reason for Rajan's displeasure is because he believes that the DMs owe the EMs a favor: "Industrial countries have to play a part in restoring that, and they can’t at this point wash their hands off and say we’ll do what we need to and you do the adjustment."Sorry Raghu - Bernanke hightailed it out of here and as Citi's Steven Englander pointed out yesterday, left you "to twist in the wind." Feel free to submit your thoughts on the matter in the overflowing complaint box in the Marriner Eccles lobby.
Instead of doing this, however, Rajan continued complaining to Bloomberg:
“Fortunately the IMF has stopped giving this as its mantra, but you hear from the industrial countries: We’ll do what we have to do, the markets will adjust and you can decide what you want to do,” Rajan said. “We need better cooperation and unfortunately that’s not been forthcoming so far.”
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Rajan said yesterday developed countries might not like adjustments emerging markets take to cope with the outflows, without elaborating on specific measures. His surprise Jan. 28 move to raise the benchmark repurchase rate by a quarter point - - adding to increases of 50 basis points since he took over the Reserve Bank of India in September -- was to stem consumer-price inflation running at close to 10 percent, he said.

“In an environment when there is external turmoil, we have to get our house in order and we can’t postpone that,” Rajan said. “So a collateral benefit of getting inflation down is that you also strengthen the belief in the value of the rupee.”
“When there is huge outside turmoil, even today post the Federal Reserve withdrawing stimulus further, it is extremely important that we both be seen on the same page."
You know - this is truly wonderful: for once a central banker admits that his peers are on the verge of losing control of the globe - of course not in those words as the result would be sheer panic upon the realization that central bankers are just as clueless as everyone else - because while conducting central planning in one country is somewhat feasible for a period of time, doing so across every country across currencies, and capital markets, is impossible. And the Indian knows this.
He also knows that in a worst case scenario, the Indian Rupee will crash and burn and make last year's record devaluation of the INR seem like breakfast at Gideon Gono's. Which means that doing the right thing would mean allowing the people - his people - to preserve their wealth in the only real currency that will withstand whatever Emerging Market collapse may be headed this way. Gold.
Instead, what did the Indian Central Bank do? This.
  • Jan 21 - The government raises the gold import duty by 2% to 6%.
  • Jan 22 - The government more than doubles the duty on raw gold to 5%.
  • Jan 30 - Finance Minister P. Chidambaram says there are no plans for additional taxes or curbs on gold imports.
  • Feb 1 - The Reserve Bank of India (RBI) plans to introduce three or four gold-linked products in the next few months.
  • Feb 6 - The RBI says it would consider imposing value and quantity restrictions on gold imports by banks.
  • Feb 14 - The central bank relaxes rules on gold deposit schemes offered by banks by allowing lenders to offer the products with shorter maturities.
  • Feb 20 - The Trade Ministry recommends suspending cheaper gold jewellery imports from Thailand.
  • Feb 28 - India keeps its gold import duty unchanged in its annual national budget, defying industry expectations.
  • Feb 28 - India proposes a transaction tax of 0.01% on nonagricultural futures contracts, including for precious metals.
  • March 1 - The Finance Minister appeals to people not to buy so much gold.
  • March 18 - The Reserve Bank of India says it is examining banks that sell gold coins and wealth management products to identify "systemic issues", with a view to closing any legal loopholes.
  • April 2 - The Finance Ministry suggests it is unlikely to raise the import tax on gold further to avoid smuggling and would instead introduce inflation-indexed instruments.
  • May 3 - The RBI restricts the import of gold on a consignment basis by banks.
  • June 3 - The Finance Minister says India cannot afford high levels of gold imports and may review its import policy.
  • June 5 - India hikes the gold import duty by a third, to 8%.
  • June 21 - Reliance Capital halts gold sales and investments in its gold-backed funds.
  • June 24 - India's biggest jewellers' association asks members to stop selling gold bars and coins, about 35% of their business.
  • July 10 - India's jewellers announce they might continue a voluntary ban on sales of gold coins and bars for six months.
  • July 22 - The RBI moves to tighten gold imports again, making them dependent on export volumes, but offers relief to domestic sellers by lifting restrictions on credit deals.
  • July 31 - India hopes to contain gold imports well below the 845 tonnes that were shipped last year, the Finance Minister says.
  • Aug 13 - India hikes the import duty on gold for a third time in 2013, to 10%. Duties for silver and platinum are also increased to 10%. The customs duty on gold ore bars, ore, and concentrate are increased to 8% from 6%.
  • Aug 14 - India turns the screws on gold buying again, banning imports of coins and medallions and making domestic buyers pay cash.
  • Aug 29 -  India considers plan to allow commercial banks to buy gold direct from ordinary citizens
  • Sept 19 - India hikes import duty on gold jewerly to 15%
And so on.
So thank you for your fake concern Raghuram, but if you really wanted to help your people when the hammer hits, you would lift all capital controls on gold now, and allow your population to preserve their wealth in the only way they have known for the past two thousand years - by converting it into the barabrous relic. And since you won't, enjoy reaping what you and your demented central-planning peers have sown.