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Thursday, June 23, 2011


Economic Cost of Weather May Total $485 Billion in US / ScienceDaily (June 22, 2011) — Everything has its price, even the weather. New research indicates that routine weather events such as rain and cooler-than-average days can add up to an annual economic impact of as much as $485 billion in the United States.
Yet the media keeps hying that the Economy is recovering. These are estimated costs of Climate disasters in 2011, and we are not yet halfway through the year. What will the cost be by the end of the year - 1 Trillion, 2 maybe? These costs are for the US only, factoring the costs pf Japan and the rest of the world, the cost is over a trillion already in 2011, is the media shouting from the rooftops about these unbearable costs? How long can this Elastic band economy keep getting stretched before it snaps and breaks?
“This has unraveled badly,” said Paul de Grauwe, an economics professor at the Catholic University of Leuven in Belgium and a two-time candidate for a European Central Bank post. “The most favorable scenario is that we can bridge the next six months. The less favorable scenario is this gets out of control.”
The 256 billion euros in aid committed to Greece, Ireland and Portugal have done little more than buy time against a looming default, says Andrew Balls, Pacific Investment Management Co.’s head of European portfolio management….

 Yet he further cautioned that weakness in the financial sector, and the continuing slump in the housing market, could also be holding back the economy - problems he said "may be stronger and more persistent than we thought"…. 

It’s amazing that the chairman of the Federal Reserve, the most powerful Central Bank in the world has to repeatedly make statements like the economic problems "may be stronger and more persistent than we thought". Since 2008 with the best tools available to man, have the Fed and the Government not been able to figure out how deep the problems run in the Economy? Is he going to come back in 6 months, when things will not have improved but will in fact be much worse, and say the same thing?

The job of the media is not to provide unbiased information but rather to obfuscate and present contradicting information as NEWS, so that the reader / viewer ends up confused rather than informed. Here is an example: These reports are both from BBC News but it seems that their reporters / editors cannot see the inherent contradiction in their reporting.

US growth will strengthen this year, says Bernanke / Speaking to a banking conference in Atlanta, he acknowledged that growth had been slower than expected this year but said momentum would build in the second half of the year.

US unemployment: The bad news the US jobs figures hide / Like all developed economies the United States has arrived at its method of counting the people who aren't working over many years and via some controversial choices.
As a consequence the new and distinctly improved headline unemployment rate of 8.8% is in fact rather a narrow measure. To be counted among the 8.8% you have to be out of work and have actively looked for a job in the past four weeks. Given up: What that means is that many people who have simply given up looking for work in a jobs markets worse than even their grandparents can remember, are not actually being counted as "unemployed".

From the above story, that government statistics are fraudulent; everyone knows that unemployment is much higher in the US than government figures show and even jobs that are being created are low paying McDonald’s type jobs, not high paying manufacturing jobs or high level managerial jobs.  So when Bernanke spouts more lies that the Economy is going to grow, no one in the media takes him to task and asks him how will it grow if no well-paying jobs are being added to the Economy? No media member take him to task and brings up his past record that he has been saying the same thing at every press conference, that the Economy will improve next quarter or in 6 months, yet things keep getting worse? Nobody from BBC or CNBC or CNN is calling for his removal for incompetence, they just repeat his clichés as if they were gospel truth! The media is complicit, with the government, in hiding truth from the public, and the public in turn is too dumb to question the media. This is why, even though we live in the so–called ‘Information Age’, the more appropriate term should be ‘Disinformation Age’, and the reason why the public is always misinformed not well informed. In the end it is public that pays the price in the form of higher taxes, less services and lower wages in some cases but all-out war, total destruction and utter destitution in other cases. In the case of the developed world, including America, the Middle Class is being systematically wiped out while in other parts of the world, wars and revolutions are brewing whose genesis can be traced clear back to the Economic policies of the US and Western Europe. Yet no one in the media seems to be able to add 2+2 to equal 4, and point the finger at the real culprits like Bernanke not some tin pot dictator in a third world country.

We’ve been quite clear about what we think is going to hap­pen in the com­ing months and years.  We expect either a US Gov­ern­ment and Euro­zone default, lead­ing to seri­ous reper­cus­sions in the west­ern world as enti­tle­ments, pen­sions and banks all col­lapse leav­ing tens of mil­lions des­ti­tute.  Or, the US dol­lar to be hyper­in­flated to worth­less­ness, bring­ing down every other fiat cur­rency in the world and caus­ing mas­sive prob­lems such as star­va­tion as mod­ern sys­tems of trade and trans­port break down. It is hard to keep track of all the protests, riots, large-scale mob fights and wars around the world.  It is even harder to keep track because You Tube is com­ply­ing with thou­sands of requests from gov­ern­ments to cen­sor and remove videos that show protests and other exam­ples of cit­i­zens sim­ply assert­ing their rights, while also delet­ing search terms by gov­ern­ment mandate. 

Just in the last few weeks, how­ever, there has been riots, protests and mob fights in at least the fol­low­ing cities and coun­tries: Miami (week­end war zone), Boston (more than 1,000 per­son gang fight),  Char­lotte Beach, NY (over 100 youths fight­ing), Van­cou­ver (10,000+ hockey riot), Greece (tens of thou­sands riot), Spain (thou­sands protest and riot), Yemen (tens of thou­sands protest, many shot), Syria (thou­sands protest, many shot), China (thou­sands riot for 3 days), Rus­sia (police crush protests in Moscow and St. Peters­burg) and count­less others…
I have heard of protests all over India and China but it is very hard to find information on the web about these protests. So it is very likely that a lot of these reports and videos are being prevented from reaching the internet by those in power.

On December 15, 2010, in the GEAB N°50, LEAP/E2020 anticipated the explosion of Western government debt (1) in the second half of 2011. We were then describing a process that would start with the European government debt crisis and then set fire to the heart of the global financial system, namely US federal debt (2). And here we are with this issue at the start of the second half of 2011, with a global economy in complete disarray (3), an increasingly unstable global monetary system (4) and financial centres in desperate straits (5), all this despite the thousands of billions of public money invested to avoid precisely this type of situation. The insolvency of the global financial system, and of the Western financial system in the first place, returns again to the front of the stage after just over a year of political cosmetics aimed at burying this fundamental problem under truckloads of cash…

The world economy is like a Hot Air Balloon that is being pumped full or more and more air. It may take the balloon higher for a little while longer but eventually it will blow up, and the higher it has gone, the greater will be its fall. The level of DEBT in the world today is so high that it could easily span several galaxies. So when the explosion comes, it will be of cosmic proportions; no nation on Earth will survive this explosion intact.

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