And by the way, last week's European "terror threat", as mentioned in the U.S. press, was nothing people heard of in Europe! A very convenient smokescreen to divert people's attention from the REAL news: the orchestrated, "controlled demolition" of the U.S. dollar; and the Vatican Synod with its "Israel-demolishing" consequences.
Gold Price Bull Roars as Fed Signals Fresh QE
GOLD PRICE NEWS – The gold price renewed its advance Sunday night, vaulting to $1,355 per ounce and within 1% of its all-time high posted last week. COMEX gold futures rallied $10.10 in the overnight session as investors continued to place bets on higher gold prices. Commodity prices appear set to extend their gains after touching a two-year high last Friday, as measured by the Reuters-Jefferies CRB index. The weak U.S. dollar has fueled the rise in the gold price as well as stocks and commodities – driven by speculation that the U.S. Federal Reserve is on the verge of launching a new, aggressive quantitative easing campaign.
The world’s largest bond fund manager is suggesting that Fed Chairman Ben Bernanke do more of what he does best – print money. Bill Gross of PIMCO, in a “Bloomberg Surveillance” radio interview said that the September nonfarm payrolls report “is simply a signal, a strong, strong signal for Fed QE2.” He estimated that the Fed’s next asset purchase program will be comprised of $100 billion in government debt, to be announced at the next FOMC meeting in early November.
In terms of the implications of quantitative easing, Gross noted that “Both Japan and the U.S. and of course the U.K. to come, are engaged in this second and third rounds of quantitative easing. Now it’s a question of who is printing the most. The yen strengthened today under the assumption that the U.S. will print more than Japan on a relative basis.” Dollar-denominated gold prices have soared 16.5% over the past six months, while the price of gold has gained a mere 2.3% when measured against the Japanese yen.
Gross went on to discuss QE2 in light of the Federal Reserve’s efforts to target inflation, which it currently views as too low. He pointed to recent comments from New York Fed President William Dudley, who “spoke to 2% in terms of inflation target and he meant that the under level of inflation that we’ve been attaining for the past 12 to 18 months would have to be made up. In other words, he would be willing to accept more than 2% inflation for a 12- to 18- to 24- month period of time in order to get back to that target.”
As for the appropriate investment strategy in such an environment, Gross stated that “If and when we do that, then that’s a very favorable type of proposal for risk assets that wheel off inflation — in other words stocks.” As for U.S. Treasuries, Gross said that at the long end of the curve, “30 years are reflecting the potential impact of inflationary policies from QE2 and they are widening out.” While Gross did not discuss investments tied to the gold price, it is clear that further money printing by “Helicopter Ben” presents a favorable macro-economic backdrop for gold as an investment class.
'This is the biggest fraud in the history of the capital markets'
Ezra Klein: What’s happening here? Why are we suddenly faced with a crisis that wasn’t apparent two weeks ago?
Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it’s not something that happened last week. It happened when these loans were originated, in some cases years ago. Loans have representations and warranties that have to be met. In the past, you had a certain period of time, 60 to 90 days, where you sort through these loans and, if they’re bad, you kick them back. If the documentation wasn’t correct, you’d kick it back. If you found the incomes of the buyers had been overstated, or the houses had been appraised at twice their worth, you’d kick it back. But that didn’t happen here. And it turned out there were loan files that were missing required documentation. Part of putting the deal together is that the securitization professional, and in this case that’s banks like Goldman Sachs and JP Morgan, has to watch for this stuff. It’s called perfecting the security interest, and it’s not optional.
EK: And how much danger are the banks themselves in?
JT: When we had the financial crisis, the first thing the banks did was run to Congress and ask for accounting relief. They asked to be able to avoid pricing this stuff at the price where people would buy them. So no one can tell you the size of the hole in these balance sheets. We’ve thrown a lot of money at it. TARP was just the tip of the iceberg. We’ve given them guarantees on debts, low-cost funding from the Fed. But a lot of these mortgages just cannot be saved. Had we acknowledged this problem in 2005, we could’ve cleaned it up for a few hundred billion dollars. But we didn’t. Banks were lying and committing fraud, and our regulators were covering them and so a bad problem has become a hellacious one.
EK: My understanding is that this now pits the banks against the investors they sold these products too. The investors are going to court to argue that the products were flawed and the banks need to take them back.
JT: Many investors now are waking up to the fact that they were defrauded. Even sophisticated investors. If you did your due diligence but material information was withheld, you can recover. It’ll be a case-by-by-case basis.
EK: Given that our financial system is still fragile, isn’t that a disaster for the economy? Will credit freeze again?
JT: I disagree. In order to make the financial system healthy, we need to recognize the extent of our losses and begin facing the fraud. Then the market will be trustworthy again and people will start to participate.
EK: It sounds almost like you’re saying we still need to go through the end of our financial crisis.
JT: Yes, but I wouldn’t say crisis. This can be done with a resolution trust corporation, the way we cleaned up the S&Ls. The system got back on its feet faster because we grappled with the problems. The shareholders would be wiped out and the debt holders would have to take a discount on their debt and they’d get a debt-for-equity swap. Instead we poured TARP money into a pit and meanwhile the banks are paying huge bonuses to some people who should be made accountable for fraud. The financial crisis was a product of our irrational reaction, which protected crony capitalism rather than capitalism. In capitalism, the shareholders who took the risk would be wiped out and the debt holders would take a discount but banking would go on.
As a reminder:
And read other links with the label: " Vatican schemes and lies".
-Here is the link to the show, quite a lively and interesting discussion! -
In the same vein, notice this other important piece of news:
- Palestinians celebrate Jericho's 10,000th anniversary
The festivities included a special cabinet meeting chaired by prime minister Salam Fayyad that was to be followed by a 4.5 kilometre (2.8 mile) foot race, a military band and fireworks.
"This occasion is not only a celebration, but is part of a national project to complete the building and preparation of the Palestinian state," Fayyad said at the opening of the ceremony.
Residents had complained ahead of the fete that the low-key celebrations would not do justice to the occasion, which has been planned since 2007.
And local officials said many important infrastructure projects that were supposed to have been completed by the anniversary were stalled by Israeli restrictions and lack of international funding.
The date chosen for the anniversary -- 10/10/2010 -- was mostly symbolic.
The oasis town near the Dead Sea is one of the oldest cities in the world, with evidence of settlement dating back to 9000 BC and urban fortifications dating back to 7000 BC, predating Egypt's pyramids by 4,000 years.
Jericho is the second most popular Palestinian tourist destination after Bethlehem and has seen a surge of visitors in recent years as security in the West Bank has improved following the devastating 2000 Palestinian uprising.
(I am aware this is a Christian site, but it showcases Jericho's Biblical narrative very nicely)
ERETZ YISRAEL LE'AM YISRAEL!
THE LAND OF ISRAEL BELONGS TO THE PEOPLE OF ISRAEL!
If you have any doubt, check the deed: it is recorded in the Bible.
The buildup to the Barcelona Conference of the Mediterranean Union, which has promised to bring everlasting peace to the Middle East its way, is a synod taking place right now in the Vatican. First, let's look at how the Jewish ignoramuses view the event in their signature news outlet. I refuse to quote the piece. It hurts too much:
Now let's look at a far more complex report:
The Synod Begins
The Catholic Church's special "Synod on the Middle East" opened today in Rome with a Mass in St. Peter's Basilica. The purpose is mainly pastoral: to consider how the Church can better live her mission in that region of the world. But the problematic political tensions in the region are also a concern...
"Salvation is universal, but it passes through a specific historical mediation: the mediation of the people of Israel, which goes on to become that of Jesus Christ and the Church." Pope Benedict XVI, Homily, Opening Mass of the Synod on the Middle East, St. Peter's Basilica, Sunday, October 10, 2010
And, the Pope continued, the way is not simply to be understood as the possession of an earthly territory, an earthly homeland, an earthly "Promised Land."
This 'land' is not of this world; the whole of the divine plan goes beyond history, but the Lord wants to build it with men, for men and in men, beginning with the coordinates of space and time in which they live and which He Himself gave them."
This, in a sense, is the central message of this Synod, already stated beforehand by the Pope in this opening homily.
The message is that the "Promised Land" of freedom and peace to which God wishes to lead "His" people is, yes, "not of this world," for, as the Pope says, "the whole of the divine plan goes beyond history."
And yet, at the same time, "the Lord wishes to build it [the Promised Land] with men, for men and in men, beginning with the coordinates of space and time in which they live and which He Himself gave them."
In short, and this did not take great analytic powers, the Pope has announced that Israel doesn't exist. It's just a question of time and "mediation" until Israel realizes this. Then those pesky Jews will covert to "Jesus Christ and the Church." Unless I misread his Mass, the pope actually said that, though claiming he was referring not to Jews but to salvation.
A major planner of this synod has been at the head of the destroy-Israel movement for two decades, David Jaeger. While Oslo was being negotiated in 1994, another part of the "peace" agreement was also being negotiated; The Vatican-Israel Treaty. In fact, Oslo and Vatican were being negotiated together and for the same destructive purposes. The Israeli negotiators of the Vatican deal were Shimon Peres and Yossi Beilin. The Vatican's chief negotiator was Father David Jaeger:
Temple Mount yes, Mount Sinai no
Dr. David Jaeger, the Vatican's legal advisor in negotiations with Israel, presented an interesting fact pertaining to the status of holy sites: According to the United Nations resolution on November 29, 1947, Jerusalem is considered a "corpus separatum" that belongs neither to the Jewish or Palestinian state. Therefore, the Jordanian occupation of Jerusalem after the Israeli War of Independence was considered, like the Israeli occupation after the Six-Day War, to be "illegal."
The Reuters news agency on Thursday, October 7, ran an interview with Franciscan Father David Jaeger, a convert from Judaism who became a Roman Catholic priest in 1986, and who is a respected canon lawyer. He was part of the Vatican team that negotiated diplomatic relations with Israel in 1994 and is part of the Vatican team that is still ironing out the details of that accord. He was asked, "Do you fear that Israel may become the whipping boy at the synod?"
Father Jaeger: I reject this whole way of looking at the Synod. The Synod is not there to take positions on any political questions, for or against any country. The Church is not there for that in the first place, least of all the Holy See. The Holy See and the assemblies it convenes, such as the Synod, and the pronouncements of the Pope do not intervene, by their very nature, in temporal disputes between nations and states. They give moral judgments on the moral dimensions of temporal issues, in the name of God.
And what is God's judgement? Well strangely, it's the same as the Vatican's. Israel is not in the same theocratic ballpark.
ONWARD TO THE MEDITERRANEAN UNION CONFERENCE:
The MU was hatched with President Peres', speaking for all Israelis, enthusiastic support:
Peres supports ‘100 percent’ Sarkozy’s plan for Mediterranean Union
"I support 100 percent the plan," Peres, who is on a five-day state visit to France, said in an interview with French radio Europe 1. "The entire (Israeli) government is in favour of Sarkozy’s initiative of course," he added. "North Europe countries, the Maghreb countries in the south and the Arab countries in the middle, why not cooperate on what is possible?," he asked, recalling that Europe started with a union on coal and steel.
But current prime minister Netanyahu is right on board, vowing to meet the actor assigned the part of Palestinian president, Mahmud Abbas, in Paris, a month before the MU meet, to sort through details. You see, until the US mid-term elections are finished, five days before the MU conference, Pres. Obama dares not lift the whip to Israel. So Netanyahu is building and Abbas is stalling. It is up to the MU to handle the flogging:
French Foreign Minister Bernard Kouchner and Spanish Foreign Minister Miguel Moratinos are to arrive in Israel Sunday to move ahead President Nicolas Sarkozy's idea of a summit in Paris later this month between Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas.
According to French diplomats and officials in Netanyahu's bureau, the two leaders have expressed willingness to take part in a summit, planned for October 21. However, implementation would depend on the decision of the Arab League summit on Friday and on a solution to the crisis over the end of the construction freeze in the settlements. Sarkozy's "excuse" for the Paris meeting is the need to prepare for the summit of the Mediterranean Union, scheduled for late November in Barcelona.
A senior Israeli official said Sarkozy would like to use a summit in Paris and the Barcelona conference to give France a more central role in the Israeli-Palestinian peace process.
Guess who's coming to Barcelona? Why it's Pope Ratzinger of the Wehrmacht. And the celebrations in Barcelona have just begun for him:
Israeli, Palestinian Politicians Continue Dialogue
BARCELONA, Spain, OCT. 5, 2010 (Zenit.org).- The founder of the Community of Sant'Egidio is affirming that although reconciliation in the Middle East is difficult, once accomplished it will be a sign of a new era.
Andrea Riccardi stated this at the 25th International Meeting of Prayer for Peace, an annual gathering held as a continuation of the first interreligious and intercultural meeting called in 1986 in Assisi by Pope John Paul II
The three-day meeting, promoted by the Sant'Egidio Community, ended today in Barcelona. This year's event focused in a particular way on the situation in the Middle East, with the theme "Coexistence in a Time of Crisis: Family of Peoples, Family of God."
Papal link: The meeting began on Sunday morning with a Mass presided over by the archbishop of Barcelona, Cardinal Lluís Martínez Sistach.During the Mass, a message from Benedict XVI to the meeting participants was read. Cardinal Sistach noted that this global summit of religions and cultures is tied to the visit the Pontiff will make to Barcelona next month. In a press conference preceding the peace gathering, the cardinal affirmed, "Meeting here during these days is a family of peoples, which is the family of God, and it is something much desired by Benedict XVI, as is the dialogue between religions."
With the MU composed of five Catholic states and five Muslim nations, the odds are stacked a bit heavily against Israel. To usher in the MU conference, look what a nice thing Spain and its king, Juan Carlos, has done for the Palestinians. For those who find significance in dates, November 20/10 will be the 35th anniversary of Gen. Franco's death, followed by Prince Juan Carlos becoming the King of Spain. Maybe that is significant, we may never know:
MADRID, Sep 10, 2010 (AFP) - Spain's government said Friday it plans to upgrade the Palestinian diplomatic mission in Madrid due to the prospect of an eventual "creation and recognition of a Palestinian state." The "General Delegation of Palestine" that has been in the Spanish capital since 1986 will henceforth be called the "Palestine diplomatic mission," the foreign ministry said in a statement. It said the head of the mission will have the status of ambassador, and will be formally accredited in a ceremony by King Juan Carlos. Spain said the decision "reaffirms the friendship and solidarity that unites the Spanish people and the Palestinian people."
As far as I've found, only one pro-Israel source was outraged by Spain unilaterally recognizing the new state of Palestine. All the Jews were otherwise anesthetized or buying new clothes for the November gala in Barcelona:
He will encourage others to follow in preparation for the coming declaration of independence."
We have been keeping you informed of the growing movement to legitimize a Palestinian State outside the normal international framework of the creation of a State. Spain's action is a big step toward establishing such an entity. It completely sidelines Israel on this issue, so it is not dependent on Israel's approval. By ignoring Israel it sets the stage for the international community to recognize a Palestinian State along the 1967 boundaries. The Palestinians do not have to agree to anything to get this "prize." Therefore their demands for the so called right of return, their demands for Jerusalem to be their capital, and their refusal to recognize Israel as a Jewish State will be granted to them and they will be asked for nothing in return.
Spain, as a major state in the European Union, is providing political cover for several other states that are vehement opponents of Israel. This development is a very serious.
And now all the pieces are in place for the checkmate of Israel next month in Barcelona. As for the Jews who will lose their homes and sovereignty...they're too busy blaming Arabs and Iran to bother noticing who really controls Israel's destiny. Or they think, it'll be okay, God will intervene. They don't see the essential message of their Torah. God does not intervene, He helps.
Spain - Press conference with the President of the Government and the Prime Minister of the Palestinian National Authority following the high-level meeting between Spain and the Palestinian National Authority
Quote President of the Government:
This is our opinion as the Government of Spain, and this is the opinion that we are going to convey to the European institutions, and of course to the North American Administration and that we have conveyed to the Palestinian Authority. The Union for the Mediterranean Summit will be held... for those members of the Union for the Mediterranean, the parties and countries that form a part of this important forum that can contribute to the peace process.
- Contributed by Anonymous after the fact, thank you:
Friday, 6 Nov 2009 - The dollar will get "utterly destroyed" and become "virtually worthless", said Damon Vickers, chief investment officer of Nine Points Capital Partners. Due to the huge wage disparities between the United States and emerging markets like China, Vickers said that may resolve itself in some type of a global currency crisis.
"If the global currency crisis unfolds, then inevitably you get an alignment of a global world government. A new global currency and a new world order, so we may be moving towards that," he said.
- Comment by SHmuel: