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Friday, May 31, 2013

DHS Accosts @Project_Veritas after exposing CA Assemblyman 'Homeless Bil...

Presidential Psychopaths: Feeding the Insanity

Rubio Raises Eyebrows with Immigration Concerns

Rubio Raises Eyebrows with Immigration Concerns:

'via Blog this'

Bob Dole’s Delinquent Children | The American Conservative

Bob Dole’s Delinquent Children | The American Conservative:

'via Blog this'

Don’t Despair of Democracy | The American Conservative

Don’t Despair of Democracy | The American Conservative

Goldberg on IRS Scandal on IRS

Mish's Global Economic Trend Analysis: EU Requires Spain to Raise Vat

Mish's Global Economic Trend Analysis: EU Requires Spain to Raise Vat:

'via Blog this'

911 operator tells woman about to be raped that no police are coming: 'Ask rapist to go away'

911 operator tells woman about to be raped that no police are coming: 'Ask rapist to go away':

'via Blog this'

Remembering ‘many names’ on the Wall | The American Legion

Remembering ‘many names’ on the Wall | The American Legion:

'via Blog this'

TRIFECTA -- Paleo-Greens: As Earth Cools, Environmental Troglodytes Burn...

Thomas Sowell - Congressional Testimony

Holder Mixed Up in Ohio Voter Fraud?

Holder Mixed Up in Ohio Voter Fraud?:

'via Blog this'

Bloomy May Destroy Business for Selling Gun-Shaped Lighters (Nanny of th...

130531 – Accident? | The Hyper Report

130531 – Accident? | The Hyper Report

Top Democratic spokesman causes Twitter explosion with complaint about news organizations boycotting 'off the record' briefing with US attorney general | Mail Online

Top Democratic spokesman causes Twitter explosion with complaint about news organizations boycotting 'off the record' briefing with US attorney general | Mail Online

A Proxy War Is Raging In Syria | Washington's Blog

A Proxy War Is Raging In Syria | Washington's Blog

Syrian Rebels Turn on Their Political Leadership » CounterPunch: Tells the Facts, Names the Names

Syrian Rebels Turn on Their Political Leadership » CounterPunch: Tells the Facts, Names the Names

Rogue Monsanto Wheat Sprouts in Oregon | Mother Jones

Rogue Monsanto Wheat Sprouts in Oregon | Mother Jones

Thursday, May 30, 2013

Goldberg: Holder's Closed-Door Meeting 'Spin Operation,' 'Attempt to Buy...

Fund Urges for Special Counsel in IRS Investigation

Costa on 'Kudlow' on IRS

TRIFECTA -- Shock Poll for Liberals: People Want Less Government

Syrian Rebels Massacre Christian Village

Syrian Rebels Massacre Christian Village:

'via Blog this'

Syrian Rebels Massacre Christian Village

Syrian Rebels Massacre Christian Village:

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The Growing Importance of the Arctic Council | Stratfor

The Growing Importance of the Arctic Council | Stratfor:

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Geopolitical Journey: The Search for Belonging and Ballistic Missile Defense in Romania | Stratfor

Geopolitical Journey: The Search for Belonging and Ballistic Missile Defense in Romania | Stratfor:

'via Blog this'

HILARIOUS: Rand Paul Explains Obamacare - Home - The Daily Bail

HILARIOUS: Rand Paul Explains Obamacare - Home - The Daily Bail:

'via Blog this'

Eric Holder perjured himself in lie about AP - DOJ intimidation scheme

Eric Holder perjured himself in lie about AP - DOJ intimidation scheme:

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World Wide March against Monsanto was widely censored by mainstream media

World Wide March against Monsanto was widely censored by mainstream media

130530 – Nixon… Again! | The Hyper Report

130530 – Nixon… Again! | The Hyper Report

PJTV -- Islamic Terrorism: Why Is It So Hard For Liberals to Just Say It?

John Stossel - Restricting Competition Through Licensing

Pakistani Taliban pick new number two after drone strike: sources : The Fiscal Times

Pakistani Taliban pick new number two after drone strike: sources : The Fiscal Times:

'via Blog this'

It's Time for Eric Holder to Man Up and Step Down

It's Time for Eric Holder to Man Up and Step Down

Two Judges Told DOJ It Had To Disclose Spying On Journalist; DOJ Found A Third Judge Instead | Techdirt

Two Judges Told DOJ It Had To Disclose Spying On Journalist; DOJ Found A Third Judge Instead | Techdirt:

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Holder accused of misleading Congress over investigation into journalist leaks | World news | guardian.co.uk

Holder accused of misleading Congress over investigation into journalist leaks | World news | guardian.co.uk:

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Media Gets Targeted by Obama, Discovers No One Cares Except the Media » CounterPunch: Tells the Facts, Names the Names

Media Gets Targeted by Obama, Discovers No One Cares Except the Media » CounterPunch: Tells the Facts, Names the Names:

'via Blog this'

Genetically-engineered mosquitoes lose nose for humans

Genetically-engineered mosquitoes lose nose for humans:

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Finding Writers for Your Content Marketing [Digett]

Finding Writers for Your Content Marketing [Digett]

An Exclusive Look at the Objectivist Academic Center and the Junior Fell...

5/30/2013 -- Volcano Sakurajima Erupts -- Large eruption of lava/ash in ...

Save Us Chuck - Self-Serve Nation

Koch LA Times Buyout Enrages Protesters: What We Saw at the "Save Our Ne...

Criminal Politicians

Obamacare to usher in 100 to 400 percent insurance rate increases across the board

Obamacare to usher in 100 to 400 percent insurance rate increases across the board:

'via Blog this'

The Ongoing Fukushima Nuclear Disaster: Eyewitness Report | Center for Media and Democracy

The Ongoing Fukushima Nuclear Disaster: Eyewitness Report | Center for Media and Democracy

Krauthammer's Take: DOJ 'Ruse' to Pursue Rosen is 'Damning'

Yet Another Nullification Success Story | Tenth Amendment Center

Yet Another Nullification Success Story | Tenth Amendment Center

No Such Thing As An Endless War? Think Again.

No Such Thing As An Endless War? Think Again.:

'via Blog this'

Abandoned baby rescued from sewage pipe in China - Telegraph

Abandoned baby rescued from sewage pipe in China - Telegraph:

'via Blog this'

BBC News - GM salmon can breed with wild fish and pass on genes

BBC News - GM salmon can breed with wild fish and pass on genes:

'via Blog this'

Finding Writers for Your Content Marketing [Digett]

Finding Writers for Your Content Marketing [Digett]:

'via Blog this'

Wednesday, May 29, 2013

Milton Friedman - The Enemies Of School Choice

Save Us Chuck - New Email Virus

Foreign Affairs Committee Syria Legislation Markup- 5/21/2013

Geraghty on Tapper's "The Lead"

Who Decides How You Die? Inside Montana's Assisted Suicide Fight

ADAPTable Sensor System's First Flight

Old Retired Petty Officer: DOD Furlough Observation from Pinch Paisley

Old Retired Petty Officer: DOD Furlough Observation from Pinch Paisley: Bill Paisley had this up on his Facebook today. Shipmate, Blog Bud, Lexican and Friend. It is excellent. As one who is also going to be fur...

Fukushima Bottled Water Coming?

Russian Security Concerns After U.S. Leaves Afghanistan

CONCEALED CARRY NEWBIE?

130529 – Civil Disobedience | The Hyper Report

130529 – Civil Disobedience | The Hyper Report:

'via Blog this'

Obamacare Surprise

Hume: Holder Investigation: 'Howling Conflict of Interest'

Rand Paul: Due Process Isn't 'Flash Cards" on "Terror Tuesday" at the Wh...

Hume: 'Odd Quality' to President's Remarks

What Dis Channel Bout?

Gunnews.com Exclusive - R. Lee. Ermey The Gunny

Gunnews.com Exclusive - R. Lee. Ermey The Gunny:

'via Blog this'

Honda begins leasing Walking Assist Exoskeleton

Honda begins leasing Walking Assist Exoskeleton:

'via Blog this'

Gingrich: IRS Scandal is 'Major Educational Opportunity'

Russian Spy Games | Foreign Affairs

Russian Spy Games | Foreign Affairs:

'via Blog this'

Iran's Democracy of Small Differences | Foreign Affairs

Iran's Democracy of Small Differences | Foreign Affairs:

'via Blog this'

Reason-Rupe Poll: Congress Should Cut Spending, Forget Gun Control; 20% ...

Tuesday, May 28, 2013

'March Against Monsanto' Anti-GMO Protest in Los Angeles

Ayn Rand on Phil Donahue Show 1979

International Forecaster


THE INTERNATIONAL FORECASTER
Saturday, May 25, 2013
5/25/13 #8
E-MAIL ADDRESS
For correspondence to us:
CHECK OUT OUR WEBSITE

Please Remember ALL those who gave their lives for our freedom. Happy Memorial Day & Thank You.
Our thoughts and prayers are with the people of Oklahoma.


RADIO SHOWS
James Corbett with Dr. Stan “Origins of the Federal Reserve”
James Corbett is on with Dr. Stan on Mondays at 7pm Eastern – NO SHOW Monday, Memorial Day.

WORLD MARKET 
Bitcoin: Hope, Hype and the Space in Between
James Corbett
For the most part I've held off throwing my hat into (or keeping it out of) the ring during the recent bout of Bitcoin-mania. This isn't out of ignorance of the currency. Back in May 2011, before most people had even heard of the crypto-currency, I interviewed a man calling himself “The Real Plato” claiming to be on “the world's first Bitcoin road trip” traveling across America paying his way exclusively in Bitcoin. No, it's not ignorance that has kept me out of the Bitcoin arena up until this point; it's ambivalence.
If ambivalence were a power I'd be a superhero. For the longest time I've had the most uncanny ability to see both the potential good and the potential bad in a new idea simultaneously, often in equal measure. Ambivalence is either my fatal flaw or my saving grace. I haven't decided yet.
When it comes to Bitcoin, this ambivalence of mine has left me particularly on the fence. The debate that has taken place in recent months seems, from my perspective, to have played out on the far poles of opinion on the matter. All we have heard are arguments between the currency's ardent defenders—who seem too strident, too ardent, too zealous for my liking—and its staunch opponents—who seem too categorical, too unimaginative, too closed-minded. This is the nature of debate: it presents us with two categorically opposed viewpoints, asking us to choose one side or another. But often these debates leave me feeling like an excluded middle. What if I am not willing to convert my life savings to Bitcoin and vow never to spend another dollar again? And what if I have no wish to condemn this currency experiment as the spawn of the devil? Where does that leave me?
I suspect I am not alone in this. I imagine there are many people, who, like me, remain cautiously optimistic that Bitcoin (or Bitcoin-like currencies) may offer one alternative in what could be a future marketplace that allows for payments in multiple mediums of exchange. In this age where discussion seems to devolve so readily into debate, and the loudest voices are encouraged to become ever-louder for the entertainment of the audience, is there space any more for a calm, rational examination of the strengths and weaknesses of an idea without hyperbole or spectacle? 
Proceeding on the bold assumption that there is indeed space for such a conversation, let's attempt to do just that. In my own humble effort to present some of the pros and cons of the Bitcoin idea, I've broken the subject down into some of the areas where I see room for cautious optimism and areas where the claims seem to fall short of reality. I call them the hopes and hypes of Bitcoin, and I hope that, whatever position you have on the subject, you might gain something of value in studying them.
But before we begin the discussion proper, it might behoove us to start with an overview of what Bitcoin is for those out there who are still fuzzy on the details. Bitcoin is a peer-to-peer electronic currency that originated from an idea in a 2008 white paper. It is referred to as a “crypto-currency” because it operates on an open source cryptographic protocol meaning that there is no central authority creating, distributing or maintaining it. Instead, Bitcoins are created via a process called “mining” which, in layman's terms, involves getting computers to crack increasingly complicated mathematical “puzzles.” Bitcoins are generated as “rewards” for that “work” and distributed to the “miners” according to how much “work” they did in solving the “puzzle.” (To replace all of those quotation marks with more technically accurate language, check out the Wiki entry on Bitcoin mining.) Each time new Bitcoins are created, the number of new Bitcoins generated is halved. This process converges on the year 2140, where the total (pre-determined) limit of 21 million Bitcoins will be in circulation.
The heart and soul of this unusual currency is the block chain, a global ledger of all Bitcoins and their current ownership. Owners are identified by “addresses” that consist of an unintelligible string of numbers and letters. Although all Bitcoin transactions are part of this global (and globally distributed) ledger, the idea is that if someone manages their account wisely they could never be personally identified by their address, giving users the promise of anonymity.
So with that (admittedly bare bones) summary under out belts, let's examine some of the hope and hype surrounding the Bitcoin phenomenon.
Hope: Bitcoins are not fiat
Although precious metal investors remain (for the most part) highly skeptical of the entire Bitcoin idea, there is one aspect of the currency that should appeal to gold bugs: like the shiny yellow metal, Bitcoins cannot be printed off on a press at the whim of a politician. It was this analogy that no doubt led Bitcoin to adopt the terminology of “mining” for new “coin.” With gold, physical metal is being mined from the ground; with Bitcoin, computer processing power is being used to solve mathematical puzzles. Unlike in our funny money Federal Reserve QE Infinity fiat paradigm, the creation of Bitcoin (like the discovery of gold) is not the result of any politician's itchy printing finger. The total number of Bitcoins (like the total amount of physical gold) cannot be manipulated or controlled by political or private interests.
Of course, the analogy is not a perfect one. The discovery of new gold is essentially random, and while there is a finite amount of gold in the world no one knows what that number is or when it will be completely mined. Bitcoin, on the other hand, is not randomly generated. The creation of Bitcoin is following a pre-defined growth curve, and while there is some randomness over when Bitcoin-generating puzzles will be solved, the final result of the process (21 million Bitcoin by 2140) is a pre-determined outcome.
This means that, unlike Federal Reserve Notes which are injected into the economy whenever Ben Bernanke and the Fed gangsters feel like it, the supply of Bitcoin is relatively predictable. It also means that there is no particular worry about inflation. In fact, assuming a steady growth curve in adoption and usage of the currency, deflation is baked into the Bitcoin cake. This goes some way toward insuring that the value of Bitcoins is tied to their utility in facilitating transactions, not speculating on growth or contraction in its supply. One would think that this would mean that Bitcoin would not lend itself to being treated as a commodity to be speculated on so much as a tool to use for conducting trade...
Hype: The speculative bubble
As anyone who has been watching the BTC-USD valuation will be able to attest, the Bitcoin market is exceptionally volatile. Large one-day swings in price either upward or downward are still commonplace. Partly this is due to the relatively small size of the market and the kinks that are still being worked out of the system. Events like the 2011 hacking of Mt.Gox – one of the largest Bitcoin exchanges – can cause sudden drops in the value of the currency. Conversely, mainstream news coverage that brings new users to the Bitcoin fold can cause value to rise. Essentially, these events cause huge waves in what is still a relatively small pond.
And just like with any other market that's prone to big swings, it isn't long before speculators come along hoping to buy low and sell high in order to make a quick buck. The phenomenal run-up and precipitous drop-off in the value of Bitcoin in April of this year has to be seen in these terms. Nothing drastically changed in the underlying market; there was no major innovation in the technology or change in the Bitcoin supply that would have justified such a surge in price (because no such innovation or change is really possible in an algorithmically controlled crypto-currency). The hype and buzz generated by mainstream reporting on Bitcoin started a feedback loop. As more people learned about it, more became interested in purchasing Bitcoin on an exchange. As more purchased it, prices rose. And as prices rose, more stories were generated about the Bitcoin bull market, thus attracting more new users and feeding into the cycle.
And as with all such bull markets, circuit breakers eventually kicked in to send the currency back down to a more realistic valuation. Speculators sold off to realize their profits and the sell off prompted those who were merely dipping their toe in the market to get out. A story about one of the largest exchanges halting trading didn't help matters either.
What happened in April goes to show that the proponents of Bitcoin are wrong to say that the currency is immune to the volatility one expects in the fiat money world. If it can be traded, it can be speculated on, just like any other commodity. And when people pile on hoping to catch a wave, especially in what has hitherto been a relatively niche market, it can upset the balance for all of the regular users.
Hope: Agorism wins!
There has always been a problem for the more anarchic libertarians out there in using a central bank-generated fiat money to conduct their transactions. Namely that every such transaction can be tracked by the government and taxed. Or at least every legal transaction...
This is where Samuel Konkin comes in. In the 1970s he developed a theory of radical libertarianism called 'agorism' founded on an idea of “counter-economics.” He believed that the only way to really undermine the presumed authority of the state was to grow the “underground economy” (i.e. black market) as much as possible. This minimizes opportunity for government intervention in the marketplace and reduces their tax base, thus restricting their size and ability to act.
But opportunities to participate in this underground economy have always been limited. Such transactions can only take place in cash, generally in face-to-face transactions. But with Bitcoin, the possibility for instantaneous, worldwide, anonymized transactions makes the agorist dream of a worldwide underground economy one step closer to reality.
Indeed, to many Bitcoin proponents it seems almost inevitable that the marketplace of the future will be one dominated by anonymous transactions that completely skirt the would-be regulators of our current nation-state system. After all, what could the governments of the world possibly do about it?
Hype: Where there's a will, there's a government
The idea that Bitcoins lie totally outside the realm of government intervention has been one of the currencies big selling points. As a globally distributed, decentralized, peer-to-peer currency, after all, there is no way for a government to perform a Cyprus-style bail-in or a Venezuela-style devaluation of Bitcoin to suit their political ends, and no one participating in one-on-one Bitcoin transactions will find their Bitcoins being used to fund taxpayer bailouts of too-big-to-fails.
But the idea that Bitcoin is completely untouchable is unwarranted. Aside from speculation about where the currency really originated (the author/authors of the original Bitcoin white paper, going by the pseudonym “Satoshi Nakamoto,” has still never been identified) and its connection to the American intelligence establishment (Bitcoin client developer Gavin Anderson was invited to present on the currency to the CIA's venture capital firm, In-Q-Tel, back in 2011), there are still questions about how governments around the world can/will step in to attempt to regulate Bitcoin transactions.
In fact, the crackdown may already have begun. Earlier this month the US Department of Homeland Security initiated legal action to stop payments company Dwolla from sending money to Mt.Gox, the main Bitcoin exchange. The DHS filing accused Mt.Gox of misrepresenting its activities when it set up a US based account for accepting Dwolla deposits in 2011. Now, the Bitcoin acolytes will (correctly) point out that this is not a threat to Bitcoin itself; Mt.Gox is just one exchange, Dwolla is just one payment service, and other US-based exchanges which are properly registered as “Money Service Businesses” in their filings will continue operating as usual. But still, it does send a message: exchanges that want to facilitate transactions in the US better have their paperwork in order. They are not beyond the grip of Uncle Sam.
“But what about individual transactions?” the Bitcoiners protest. They remain anonymous and completely beyond the grasp of any government to oversee or regulate. Theoretically, this is the case. But the idea of Bitcoin's anonymity has been oversold. Firstly, only tech-savvy users will have any idea how to keep their anonymous address truly separate from the rest of their online activity and how to access and facilitate online transactions in an “anonymous” way (using the TOR router, for instance). To even achieve the hope of being beyond the ability of a persistent government agency from tracking one's activities requires a lot of technical know-how.
And even then, there is a real question about whether online anonymity is really possible at all. There have been potential serious flaws discovered in the TOR system that lead some to the conclusion that the supposedly “anonymizing” online service is in fact an intelligence-designed honeypot...or at least can be used as such. And as veteran cryptographer John Young of Cryptome.org told me in an interview on my website years ago, the idea of online anonymity is “a pipe dream.”
In Conclusion: There is no conclusion
There's a lot to consider when it comes to a new, relatively unproven idea for digital currency like Bitcoin, including much that we haven't covered here. But I hope at the very least that I've given you an indication why I'm not selling the farm and plowing it into Bitcoin quite yet...but why I do have a Bitcoin donation button on my homepage.
Ultimately, I think Bitcoin is not a financial savior nor yet a financial demon. It's merely a tool, albeit one whose utility is currently rather limited. It may be theoretically possible to conduct all of the transactions necessary for one's daily existence using Bitcoin, but it would be exceedingly difficult to do so at this point. And so I will remain cautiously optimistic that Bitcoin (or some other crypto-currency) might be a useful arrow in the quiver of monetary tools for use in the marketplace of the future. While Bitcoin remains useful for facilitating one-on-one transactions across borders, there is still a place for local alternative currencies (mutual credit systems and exchange trading systems, for example) and precious metals in that basket of monetary tools, too.
For those of you who are more prone to conclusive judgments, I hope some of this discussion has helped flesh out your own thoughts on the matter. And for those of you who are prone, like me, to sitting on the fence, I've saved a spot for you there right next to me. I don't see why I have to decide one way or the other yet, anyway.


Your Source for Freeze Dried Food in an Uncertain World.
(866) 404-3663 or email: fdg@FreezeDryGuy.com
US MARKETS

Let’s Talk Methods…
By Bob Rinear
Being in the public doing radio shows and running an Internet company, I am often asked questions about how certain things work. Most often the question really doesn’t come in the form of a question as much as it comes in the form of a statement “questioning” my reasoning. Let me give you an example of what I mean…
I got an email just Thursday evening from a gent that sent a letter like this: Bob, you say that the market gains are all because of Federal Reserve money, but I’ve been reading that Companies are so flush with cash they’re buying back their stock and pushing prices up. So what’s the Fed got to do with that? 
So I figured that it might be helpful for people to understand the myriad ways that Federal Reserve money makes its way into stock prices, just so you understand the big picture.  Sometimes it isn’t plainly evident how seemingly disconnected concepts are actually joined at the hip.  You are all aware of the fact that Bernanke is literally printing 85 billion dollars a month and using it to buy up Treasuries and Mortgaged backed securities. By being the buyer of last resort, they have driven interest rates to virtually zero.  Please remember that, it will become key in a few minutes. 
Buying up MBS’s does a couple things. 1) it lets banks off the hook. 2) it helps lower the desire for these things in the “real market” and thus interest rates don’t have to go up to entice folks.  Okay, so how does it help out the banks? Well, if you remember a huge portion of the big melt  down was because banks got caught with all these tranches of mortgages and 70% of them weren’t worth the powder to blow them to hell. They were chock full of mortgages where the folks lied to get the mortgage. People with Fico scores lower than their already dubious IQ’s were buying 350K dollar houses. People working at McDonalds were qualified to buy 3000 square foot Mcmansions.  The mortgages were junk and the banks were stuck with them. 
So, one of Bernanke’s first jobs in 2009 was to relieve the poor banks from all those trashy MBS’s. But, not only did they buy them up, thus freeing the bank from any more problems concerning deadbeat borrowers they did so at “par” which was really quite amazing. In other words, because they were so full of garbage loans, the whole “tranche” might have been worth 39 cents on the dollar, but the Fed was giving them the full dollar. So, the banks took in all those fees for processing and what have you, only to have the Fed take away the risk. The banks still had billions of trashy MBS’s on hand, but Uncle Benny was ready and willing to buy them up. 
This is why the banks were then free to post these glorious “earnings reports”. If you’re taking in billions on fees and doing IPO’s and front running their book, and they don’t have to report any losses on their garbage MBS holdings, they get all manner of money to go out and play cowboy with. Time and time again we’d see JPM or GS go an entire quarter without ONE LOSING TRADE. 
Next up we get the outright Treasury purchases themselves. When Bernanke buys Treasuries to the tune of 45 billion a month, it too bashes down interest rates. But it also does something else, it hands money over to the primary dealer banks.  Remember, Bernanke doesn’t just walk down the hall in DC and buy Treasuries from the Treasury Secretary. Oh no, then the banks wouldn’t get their cut. No, he’s got to buy them through the 18 Primary dealer banks. So they get their money from him sucking up lousy MBS’s and by paying them for Treasuries. 
Well, if the banks cannot get any return on interest rates, and they get their money for “free” and it is virtually risk free, where will they place it? IN Risk assets. Stocks. High returns. Trading desks. Prop Desks. Currency swaps. “stuff”. 
Okay, so on one hand we have the banking system taking in massive amounts of Fed cash, with no place to put it so they play cowboy in the market, on the other hand because of the insanely artificial low interest rates, Companies have realized they have the perfect Ponzi scam they can work by buying back their own stock.  Follow along…
Let’s suppose you’ve cut expenses to the bone. You have removed every other light bulb in the halls, made people wear parkas instead of turning up the heat, laid off every one that could possibly be laid off, and still you are missing the revenue (top line) estimates. How on earth are you going to boost your image? Well, the simple answer is to reduce your float. IN other words, earnings are based on your profits divided by how many shares are out in the float. If you cut down the amount of shares “out there”, then the exact same amount of “profit” creates bigger “earnings per share” since there’s less shares to “share it with”.  Well, they’ve taken it to a new level again. 
Back in 2007, companies went on a buy back binge like never seen before to try and keep the 2005 – 2007 market rally alive. Well, now in 2013 they are certainly trying to exceed that.  This year, big U.S. companies have given the go-ahead for $286 billion of buybacks, up 88 percent from the same period last year. In fact, get a load of this….in total, U.S. companies, not even counting banks and other financial firms, have bought more than $1 trillion of stock in the five years through 2012. 
Hello, did you see that? Companies have bolstered their “earnings per share” by buying back stock and taking shares out of the float. They’ve bought more than a trillion dollars worth in just five years. We’re almost close to breaking the all time record. But there’s a major catch!  They’ve BORROWED the money to do it!!!!!!
This is how we go all the way back to the readers question about how can the Fed be responsible for the waves of buy backs?? Easy.  If Corporations couldn’t borrow money for basically “free” they wouldn’t be buying back stock. On top of that,  The Fed’s ZIRP ( sero interest rate policy) has allowed them to sell bonds, for a couple percent higher than treasuries and take the money from that and buy back their own stocks.  If you look at the buy back announcements you’ll find something very interesting in almost every one of them. They aren’t using the companies “savings” to buy back stock, they’re issuing debt to buy back stock.  They are NOT expanding, or hiring employees. They aren’t retooling. They’re buying back stock, goosing the EPS.  
Listen to this number folks and let it sink in. Companies are buying approximately 3 BILLION dollars per day of their own stock. Again, they aren’t hiring you. They aren’t expanding. They aren’t increasing production. They are simply leveraging up their balance sheets and selling debt. Now do you understand why the stock market has no bearing on the economic fundamentals???
None of these insane distortions could happen without the Fed pushing a trillion dollars a year into the system. None of these companies could be offering up buy backs if interest rates were anywhere near “normal” levels because they wouldn’t want the risk of trying to pay out 6.5 or 7 or 8% interest on a couple billion dollars.  So, between handing the banks big bucks for MBS’s and Treasuries, Bernankie’s interest rate policy has pushed companies into playing the “get all we can while it’s hot” game. 
This is why just the rumor that the Fed might some day, one day, sorta, kinda, might taper off the juice sends the market into spasms of selling. Imagine what happens when it really hits? When companies won’t be doing their trillion in buy backs. When Banks are stuck with non performing loans. When trading desks don’t have Treasury purchase money to plow into stocks.  I suggest it won’t be pretty. This is why Bernanke’s so trapped in the box. If he stops his insanity, we crash. If he doesn’t stop, the distortions become so huge, we implode from within. 
Look at Japan. They’ve had to halt their bond market 9 times in the past week. The Yen injections are tossing their entire system into spasms and this is getting quite dangerous. As every Central bank on earth cuts interest rates in their currency wars, the fall out of all that is causing distortions that are not easily fixed. When Japan announced their big monetary push, their market gained like 40% in just weeks. Is that normal?  Of course not. Just like here in the US, the Central bank money always finds its way into the stock markets. 
Things look stressed. It smells like each day the distortions are bigger, the feeling of panic stronger.  We don’t know how long they can keep the wheels from falling off but it “feels “ like we’re getting closer all the time, and this is a global phenomenon.  So, with all that in mind, just keep your head about you. Don’t buy into the hypes. Don’t let your guard down.  Take advantage of it when you can, but understand this is all going to change.  Do the Boy Scout thing…be prepared. 
I want to wish you all a very wonderful Memorial Day Holiday, and hope you spend it with great family and friends, some good food and drink and remember those that sacrificed so that you can. 
Take care.

Nidal Hasan, Fort Hood Shooting Suspect, Has Received $278,000 In Salary Since Arrest
By Nick Wing
Nidal Malik Hasan, the U.S. Army major accused of killing 13 and injuring 32 more in a mass shooting at Fort Hood in Texas on Nov. 5, 2009, has been receiving salary payments totaling $278,000 in the three-and-a-half years since being arrested, NBC Dallas-Fort Worth reported Tuesday.
A spokesperson for the Department of Defense confirmed its continued payments to Hasan, according to NBC, and said the department can't suspend his salary until he has been proven guilty.
Fed’s Dudley: Can’t be sure next QE move will be up or down
By Adam Button 
  • ¥ Expects to taper QE ‘at some point’
  • ¥ Important to see how well economy weathers fiscal drag
  • ¥ Fiscal drag to US economy is ‘significant’
  • ¥ Expects ‘at some point’ to see enough jobs market improvement to reduce asset purchases
  • ¥ Might adjust pace of bond purchases as labor and inflation outlook change ‘in material way’
  • ¥ May need to adjust exit strategy
These are dovish comments and the US dollar is, rightfully, selling off. It would be rare for Bernanke to meaningfully depart from something Dudley said so this could only be the stat of a bout of US dollar weakness.

Ben Bernanke meets privately with Darrell Issa
By Jon Prior
Federal Reserve Chairman Ben Bernanke met privately last week with House Oversight and Government Reform Committee Chairman Darrell Issa and other lawmakers to discuss the central bank’s efforts to stimulate the economy and how it could exit this strategy in the future, according to people who attended the meeting.
The meeting followed a letter that Issa (R-Calif.) and Rep. Jim Jordan (R-Ohio) sent Bernanke in April expressing dismay that the Fed was not providing lawmakers with more information about how in the future it plans to wind down its bond portfolio, which has grown to more than $3.3 trillion as a result of the Fed’s efforts to boost economic growth.

Top IRS official will invoke 5th Amendment
By Richard Simon and Joseph Tanfani
A top IRS official in the division that reviews nonprofit groups will invoke the 5th Amendment and refuse to answer questions before a House committee investigating the agency’s improper screening of conservative nonprofit groups.
Lois Lerner, the head of the exempt organizations division of the IRS, won’t answer questions about what she knew about the improper screening — or why she didn’t disclose it to Congress, according to a letter from her defense lawyer, William W. Taylor III. Lerner was scheduled to appear before the House Oversight Committee on Wednesday.
“She has not committed any crime or made any misrepresentation but under the circumstances she has no choice but to take this course,” said a letter by Taylor to committee Chairman Darrell Issa (R-Vista). The letter, sent Monday, was obtained Tuesday by the Los Angeles Times.

Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever
By Tyler Durden
Two years ago, Zero Hedge first made the observation that the bulk of Fed reserves (also known simply as "cash created out of thin air" because money is first and foremost fungible no matter what textbook theoreticians may claim, and the only cash allocation preference is the capital allocation IRR analysis) had been parked not with US banks, but with foreign banks with US-based operations. We followed that with more analyses, showing explicitly how the Fed was providing a constant cash injection to foreign banks courtesy of the rate on overnight reserves which is the amount Fed pays to banks that hold reserves with it, as the bulk of reserves continued to end up with foreign banks - a situation set to become a huge political storm some time in 2014-2015 when the IOER has to rise and the Fed is "found" to have injected tens of billions of "interest" not into US banks but in foreign banks operating in the US, and which then can upstream the "profits" to insolvent offshore domiciled holding companies.
So it was our expectation that while if not slowing down its rate of money-creation (i.e., reserve-production) - something that won't happen for a long time as it would crash the stock market - the Fed's reserves would at least revert to being accumulated at US-based banks. No such luck. In fact as the latest H.8 report demonstrates, as of the most recently weekly data, the Fed's policies have led to foreign banks operating in the US holding an all time high amount of reserves, surpassing $1 trillion for the first time, or $1,033 billion to be precise.

Fed Winddown Strategy Will Test Economy’s Reaction and Adjust
By Jon Hilsenrath
When the Fed ended a buying program in 2011, it shut it off all at once. When it shut off another bond buying program in 2009 and 2010, it did it in predetermined, predictable and “tapered” steps. When the Fed raised short-term interest rates from 2003 to 2006, it raised them in gradual and very predictable steps.
This time, when the Fed shuts off bond buying, it won’t be abrupt and it won’t be predictable. The term “tapering” — which implies a predictable gradual process — probably doesn’t describe the plan very well any more, and you’re unlikely to hear Fed officials describing it like that. Instead, the Fed will take a step and then see what happens. Officials also want to avoid the market blowup that happened in 1994, when it took one step and the market assumed that meant a succession of additional steps.
“A step to reduce the flow of purchases would not be an automatic, mechanistic process to end the program,” Mr. Bernanke said. In other words, if the Fed takes a step to reduce the program and the economy falters, it could sit still for a while or even dial purchases back up.

Will It Be Inflation Or Deflation? The Answer May Surprise You
By Michael Snyder
Is the coming financial collapse going to be inflationary or deflationary?  Are we headed for rampant inflation or crippling deflation?  This is a subject that is hotly debated by economists all over the country. Some insist that the wild money printing that the Federal Reserve is doing combined with out of control government spending will eventually result in hyperinflation.  Others point to all of the deflationary factors in our economy and argue that we will experience tremendous deflation when the bubble economy that we are currently living in bursts.  So what is the truth?
Well, for the reasons listed below, I believe that we will see both.  The next major financial panic will cause a substantial deflationary wave first, and after that we will see unprecedented inflation as the central bankers and our politicians respond to the financial crisis.  This will happen so quickly that many will get "financial whiplash" as they try to figure out what to do with their money.  We are moving toward a time of extreme financial instability, and different strategies will be called for at different times. 
So why will we see deflation first?  The following are some of the major deflationary forces that are affecting our economy right now...

My UK Friend's Perspective

Awaken the Sheeple, Monsanto protests makes more people aware of this NWO Monstrosity which is directly behind the deaths of Bees which is very very important to the ecology!  Precious metals wants to form a bottom, sentiment is very negative which is usually a good sign! Most people are appalled of the blatant murder of the U.K. soldier by 2 nut cases that has done more harm to the Muslim Community in the U.K. Global elite also has a hand in this with their invasions in the Middle-Eastern countries for more power and greed for oil etc.! It' called blow-back! Violence begets violence, neither justified! More protests across Europe, job losses continues unabated! After the summer, expect much more sharper down turn!

Lt Col Allen West - Liberal Compassion

Mucus found to harbor a previously unknown human immune system

Mucus found to harbor a previously unknown human immune system:

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Kdybych chtěl, aby se USA zhroutily, tak bych kopíroval EU

Chapter 3 Excerpt Black Man Down

Goldberg on Holder: 'He's Been Disastrous Attorney General For a Really ...

U.S. Dominance in Drone Technology

Gender Bender Day At School

Reason Mag: Sex in Arab World, Drug Courts, Real Jackie Robinson

130528 – Pelosi Can’t Help It! | The Hyper Report

130528 – Pelosi Can’t Help It! | The Hyper Report:

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Save Us Chuck - Memorial Day

Police Peddle "Stolen" iPhones, Arrest Buyers: Don't Cops Have Better Th...

Sen. Paul Appears on ABC's This Week With George Stephanopoulos- 5/26/2013

Schieffer: 'President Needs to Rethink His Entire Communications Policy'

Mother of Benghazi Victim on Fox

John Stossel - Too Many Laws

ObamaCare Clusterfuck: If you're over 55 and forced into Medicaid, Medicaid is a collateral loan, and a death tax on your estate | Corrente

ObamaCare Clusterfuck: If you're over 55 and forced into Medicaid, Medicaid is a collateral loan, and a death tax on your estate | Corrente

Obama Makes More Empty Promises … Lays Groundwork for Expanded Warfare | Washington's Blog

Obama Makes More Empty Promises … Lays Groundwork for Expanded Warfare | Washington's Blog:

'via Blog this'

From Crisis to Crisis in Baghdad » CounterPunch: Tells the Facts, Names the Names

From Crisis to Crisis in Baghdad » CounterPunch: Tells the Facts, Names the Names:

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By Inserting Itself Into Syrian War, Hezbollah Makes Historic Gamble - NYTimes.com

By Inserting Itself Into Syrian War, Hezbollah Makes Historic Gamble - NYTimes.com:

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Kafka, meet Orwell: peek behind the scenes of the modern surveillance state - Boing Boing

Kafka, meet Orwell: peek behind the scenes of the modern surveillance state - Boing Boing:

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Fire breaks out aboard Royal Caribbean cruise ship - Yahoo! News

Fire breaks out aboard Royal Caribbean cruise ship - Yahoo! News:

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Support the Troops

War in Niger

PJTV: Stop Drinking the Haterade: There's No Separating Faith And Politics

Tenther News 05-27-13: Local and State Nullification Efforts Advance

White House witch hunt of journalists spearheaded by CIA head John Brennan, says leaked email

White House witch hunt of journalists spearheaded by CIA head John Brennan, says leaked email

Monday, May 27, 2013

Memorial Day Poppies | The Big Picture

Memorial Day Poppies | The Big Picture:

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Benghazi Scandal Investigation Widening

Benghazi Scandal Investigation Widening:

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DHS Caught Spying on Veterans

DHS Caught Spying on Veterans:

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Fund Details Latest in D.C. Scandals, the Bureaucrats Behind Them, and T...

Rand Paul’s Bold Stand Against Arming Islamist Syrian Rebels | FrontPage Magazine

Rand Paul’s Bold Stand Against Arming Islamist Syrian Rebels | FrontPage Magazine:

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Stupid: Even historical museum guns are banned from public display in Chicago

Stupid: Even historical museum guns are banned from public display in Chicago:

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130527 – Defending the Indefensible | The Hyper Report

130527 – Defending the Indefensible | The Hyper Report:

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Friday, May 24, 2013

Syria: Outside Patronage and a New Offensive for the Regime | Stratfor

Syria: Outside Patronage and a New Offensive for the Regime | Stratfor:

'via Blog this'

Department of Justice Meets Snuggly the Security Bear!

Ron Paul's Texas Straight Talk 5/20/13: The IRS's Job Is To Violate Our ...

The Challenges for Iran's Next President | Stratfor

The Challenges for Iran's Next President | Stratfor:

'via Blog this'

Jon Stewart rips Obama for aggressive investigation of whistle-blowers instead of bankers | The Raw Story

Jon Stewart rips Obama for aggressive investigation of whistle-blowers instead of bankers | The Raw Story:

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Krauthammer's Take: Holder's 'Days Have to Be Numbered'

Ponnuru: Holder to Investigate. . .Holder

A Conversation on the Trans-Pacific Partnership

Ron Paul Tea Party Speech, Endorses Ted Cruz

3 More Reasons to Fear the IRS

Film — Political Earth, Operation Paul Revere

Are your children swimming in feces? If you're taking them to public pools, the answer is yes

Are your children swimming in feces? If you're taking them to public pools, the answer is yes

The Religion of Liberalism & the New Heretics | Crisis Magazine

The Religion of Liberalism & the New Heretics | Crisis Magazine

Thomas Sowell Discusses His Ideology

Sen. Rand Paul on Fox's Hannity with Eric Bolling - 5/23/13

Cruz: 'More Wacko Birds in the Senate than Suspected'

Honor & Remembrance | The American Legion

Honor & Remembrance | The American Legion

Honor & Remembrance | The American Legion

Honor & Remembrance | The American Legion

130524 – Inflation or Deflation? | The Hyper Report

130524 – Inflation or Deflation? | The Hyper Report:

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Forget Angelina Jolie: How Obamacare Endangers Your Breasts

Great Haste Made Great Waste at Hanford | Fairewinds Energy Education

Great Haste Made Great Waste at Hanford | Fairewinds Energy Education

Obama Nominates Benghazi Scapegoat for Promotion | Mother Jones

Obama Nominates Benghazi Scapegoat for Promotion | Mother Jones

(IBD) Now Gibson Guitar Raids Make Sense After IRS Tea Party Scandal - On Obama's Enemies List - True Conservatives on Twitter

(IBD) Now Gibson Guitar Raids Make Sense After IRS Tea Party Scandal - On Obama's Enemies List - True Conservatives on Twitter:

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Coincidence?… Obama Meets With IRS Union Chief – Union Chief Meets With Union Members – Members Target Conservatives – All in One Week | The Gateway Pundit

Coincidence?… Obama Meets With IRS Union Chief – Union Chief Meets With Union Members – Members Target Conservatives – All in One Week | The Gateway Pundit

Truly Serving The Poor

“At the Highest Levels of the U.S. Government” … Like the President? | emptywheel

“At the Highest Levels of the U.S. Government” … Like the President? | emptywheel

M of A - Syria: The Messed Up Neighborhood

M of A - Syria: The Messed Up Neighborhood

Woolwich attack: terror returns to Britain's streets - Telegraph

Woolwich attack: terror returns to Britain's streets - Telegraph:

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Wait, there are riots in Sweden? | FP Passport

Wait, there are riots in Sweden? | FP Passport

Dr. Jeff Masters' WunderBlog : NODATA | Weather Underground

Dr. Jeff Masters' WunderBlog : NODATA | Weather Underground

911 Dispatcher Tells Woman About To Be Sexually Assaulted There Are No Cops To Help Her Due To Budget Cuts « CBS Seattle

911 Dispatcher Tells Woman About To Be Sexually Assaulted There Are No Cops To Help Her Due To Budget Cuts « CBS Seattle:

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Thursday, May 23, 2013

Single Handed Barber promises an easier DIY do

Single Handed Barber promises an easier DIY do:

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What A Wonderful World By Arnaud Quercy (B. Thiele) - Month 41 Piano Jaz...

Legion launches Facebook page dedicated to honor | The American Legion

Legion launches Facebook page dedicated to honor | The American Legion:

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Obama’s ‘Iron Curtain’ Descends on America

Obama’s ‘Iron Curtain’ Descends on America:

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Spying in Russia: Decoding the Tradecraft

PJTV: Real People

John Stossel - Long Live The Porcupine

PJTV: Pat Robertson Is Wrong about Infidelity

Goldberg on IRS Targeting on Fox

Save Us Chuck - Largest Standing Army

130523 – Destraction For Amnesty | The Hyper Report

130523 – Destraction For Amnesty | The Hyper Report:

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Assange, Manning, and the End of Secrecy: Alex Gibney on "We Steal Secre...

Wednesday, May 22, 2013

Ayn Rand on Phil Donahue Show 1978

I Choose Not To See Michael Jackson That Way

130522 – Thugocracy | The Hyper Report

130522 – Thugocracy | The Hyper Report:

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Jordan on IRS: Agency in Charge of Obamacare Targeted Groups Opposing It

NPR's Cokie Roberts Blasts Obama Administration on Fox Spying

Issa: Lerner 'Critical' to IRS Hearing

TRIFECTA: IRS, AP, Fox & Benghazi Scandals Prove the Extreme Corruption ...

Why Aren't There More Storm Cellars in Oklahoma? - Megan Garber - The Atlantic

Why Aren't There More Storm Cellars in Oklahoma? - Megan Garber - The Atlantic:

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Thomas Sowell - Why The Left Wants Judicial Activists

Save Us Chuck - Govt. Data Center

Go Gay or Go Home / DOJ employees compelled to embrace gay lifestyle

Go Gay or Go Home / DOJ employees compelled to embrace gay lifestyle:

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SPOT reveals satellite phone for wilderness emergencies

SPOT reveals satellite phone for wilderness emergencies:

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Why We Should Mistrust the Government | Tenth Amendment Center

Why We Should Mistrust the Government | Tenth Amendment Center

Mexico Pushes for Energy Change

US government admits to killing four Americans with drones

Ft. Hood injustice

Hezbollah in Syrian War

Ayn Rand Institute Capitalism Saved