Gerald Celente the disintegration of Empire America

GM’s lengthy plant closures will ripple out

General Motors’ decision to shut down 13 assembly plants for up to 11 weeks this summer will disrupt far more than the lives of nearly 24,000 workers, rippling out to damage part suppliers, local businesses and state economies.

The Detroit automaker had little choice. GM, surviving on $13.4 billion in federal loans, must steady itself, slash costs and align production levels with the shrunken demand if it wants to live much longer. The announcement Thursday comes as GM races the government’s June 1 deadline to squeeze deeper concessions from bondholders and the United Auto Workers union.

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Too big to fail? 5 biggest banks are ‘dead men walking’

America’s five largest banks, which already have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show.

Citibank, Bank of America , HSBC Bank USA , Wells Fargo Bank and J.P. Morgan Chase reported that their “current” net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31 . Buried in end-of-the-year regulatory reports that McClatchy has reviewed, the figures reflect a jump of 49 percent in just 90 days.

The disclosures underscore the challenges that the banks face as they struggle to navigate through a deepening recession in which all types of loan defaults are soaring.

The banks’ potentially huge losses, which could be contained if the economy quickly recovers, also shed new light on the hurdles that President Barack Obama’s economic team must overcome to save institutions it deems too big to fail.

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NH patriots refuse to recognize new charges

A couple convicted of tax evasion said Thursday that the federal government has no right to bring 11 new charges against them, including gun violations and obstruction of justice.

Ed and Elaine Brown and at least four co-conspirators stockpiled explosives and firearms at the couple’s home for possible use against law enforcement, according to the indictment.

Officials entered not guilty pleas on the Browns’ behalf at a hearing Thursday in U.S. District Court in Concord.

They were convicted in January 2007 of failing to pay taxes on $1.9 million of income over eight years. The couple claims the federal income tax is not legitimate. Their argument — repeatedly rejected by courts — is that no law authorizes the federal income tax and that the 1913 constitutional amendment permitting it was never properly ratified.

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‘ Worst economic collapse ever’

Government Regulators Aided IndyMac Cover-Up, Maybe Others

A brewing fraud scandal at the Treasury Department may be worse than officials originally thought.

Investigators probing how Treasury regulators allowed a bank to falsify financial records hiding its ill health have found at least three other instances of similar apparent fraud, sources tell ABC News.

In at least one instance, investigators say, banking regulators actually approached the bank with the suggestion of falsifying deposit dates to satisfy banking rules — even if it disguised the bank’s health to the public.

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Financial Disaster Will Lead to Civil Disorder in 2009 or 2010, Says Secret Citibank Memo

An internal memo from a top Citibank analyst reveals what the banks really think about the global financial situation, and the outlook is grim.

“The world is not going back to normal after the magnitude of what they have done. When the dust settles this will either work, and the money they have pushed into the system will feed through into an inflation shock,” wrote Tom Fitzpatrick, Citibank’s chief technical strategist.

He goes on to explain that the massive money creation efforts by the Federal Reserve and other central banks will end with one of two things: A resurgence of inflation, or a fall into “depression, civil disorder and possibly wars.” Either outcome, he says, will cause the price of gold to skyrocket. Gold will push to well over $2,000 per ounce, he explains.

The timing on all this? Sometime in either 2009 or 2010, said the analyst.

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Russian prof says economic meltdown will break up U.S.

MOSCOW – A professor at the diplomatic academy of Russia’s Ministry of Foreign Affairs said the U.S. will break into six parts because of the nation’s financial crisis.

“The dollar isn’t secured by anything,” Igor Panarin said in an interview transcribed by Russian newspaper Izvestia Monday.

“The country’s foreign debt has grown like an avalanche; this is a pyramid, which has to collapse.”

Panarin said the financial crisis will worsen, unemployment will rise and people will lose their savings — factors that will cause the country’s breakup.

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Circuit City Files for Chapter 11 Bankruptcy

Hurt by competition from Best Buy Co. and Wal-Mart Stores Inc. and by pressure from the downturn in the economy that led shoppers to cut back on discretionary purchases, the 59-year old Circuit City Stores Inc. on Monday filed for Chapter 11 bankruptcy protection.

The Richmond, Va.-based consumer-electronics retailer, which has seen its shares tumbling 99% from a 52-week high of $8.24, negotiated a commitment for a $1.1 billion debtor-in-possession revolving credit line that will allow it to pay vendors and operate business as usual. The credit line replaced its $1.3 billion asset-based credit line provided by the same lenders. Circuit City said in the filing, made through the United States Bankruptcy Court for the Eastern District of Virginia, that it plans to emerge from the bankruptcy protection in the first half of 2009.

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Making Financial Sense of the Coming Energy Crisis

Bailout Plan Up in the Air After House Rejects Bill

Democratic leaders pledged to try to put together another financial rescue bill, but it was unclear whether there was enough support for even a revised plan.

Congressional staffers told CNBC that there wouldn’t be any votes on a new bailout proposal until Thursday at the earliest.

In a statement following the vote, U.S. Treasury Secretary Henry Paulson said he was “very disappointed” at the result of the vote but pledged to continue working with Congress to forge a rescue.

“I will continue to work with Congressional leaders to find a forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy,” Paulson said. “We’ve got much work to do, and this is much too important to simply let fail.”

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Night of the Living Debt

Close your eyes and picture your children, grandchildren and great-grandchildren, all alone and scared, in an old, abandoned graveyard. The moon disappears behind one of the gathering storm clouds. Lurching forms begin to emerge from behind tilting gravestones.

A hand emerges from the earth and clutches at one of your children. They all begin screaming and dashing about, desperately seeking safety that does not exist.

Suddenly, one child shrieks in heart-rending agony as, set upon by three moldy corpses, her slender leg is bitten by one. As each child tries to help the other, he or she also is taken to the ground by slimy zombie-like creatures who begin to feed on the tiny forms.

Then you realize that you are one of the zombies, just as you sink your rotten teeth into the warm, gently yielding flesh of your offspring.

Hollywood “B” movie stuff? No. Reality? Not yet, but it’s coming, even if only euphemistically.

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Max Keiser – Special Liquidity Schemes, Gold and the Dollar

Radical bailout plan has a jawdropping price tag

Struggling to stave off financial catastrophe, the Bush administration on Friday laid out a radical bailout plan with a jawdropping price tag — a takeover of a half-trillion dollars or more in worthless mortgages and other bad debt held by tottering institutions.

Relieved investors sent stocks soaring on Wall Street and around the globe. The Dow-Jones industrials average rose 368 points after surging 410 points the day before on rumors the federal action was afoot.

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Precious Metal Shortage?

by John Ubele

Over the last several years I’ve been following precious metal prices almost religiously. One thing I’ve noticed is that every time or nearly every time there’s a dramatic dip in prices the retailers (brick and mortar and online) limit what they’ll sell to the public.

Yesterday I went on to Apmex’s website and found they had limited precious metal items available and I also noticed that they still have their silver eagles priced ridiculously high.

Today I read an article that stated the U.S. Mint has suspended gold eagle sales. Here’s a small snippet from that article.

A shortage of American Eagle bullion coins following a recent sharp retreat in gold prices has forced the U.S. Mint to suspend sales of the popular coins temporarily, dealers said on Thursday.

Rand LeShay, senior vice president of A-Mark Precious Metals, an authorized purchaser for the U.S. Mint, confirmed that the Mint told dealers in a memorandum it was halting all sales of American Eagles, a novel item among collectors and investors.

How exactly does a precious metal shortage effect the small investor who wants to take advantage of the low prices?

Unless the small investor is quick and well positioned he won’t be able to take advantage of the dip because big investors will beat him to the punch and clean the retailers out. So the only thing that the small investor is left with is to buy precious metal items at a higher price and hope the prices go back up.

Personally I think there are too many forces working against the dollar which dictate that silver, gold, oil and nearly all other commodities will continue to go up in price as the dollar’s buying power continues to fall. We can thank the most powerful private bank in the world, the Federal Reserve and its printing presses for destroying our dollar.


In this video Eustace Mullins does an excellent job discussing the origins of the Federal Reserve.

At this point in time the best advice I can give is to buy up as much silver and gold while you still can and hide it well.



How Washington is Fooling You: Manipulated Employment Data

Shell Game – The government and related agencies are responsible for reporting the nation’s economic data. Thus, they’re in the driver’s seat to manipulate this data, while dumping so much of it onto consumers that they can’t possibly analyze what’s really going on.

Each day, “critical” economic numbers are released by one or more agencies connected to Washington. And consumers look to Wall Street and the media to make heads or tails of this data. Of course, Wall Street is always going to paint a rosier picture for its own benefit. Meanwhile, the mainstream media merely serves as a puppet for Wall Street.

The main problem is that by the time this data has been reported it’s already been manipulated. And when Wall Street gets a hold of it they make matters worse, tugging and pulling on the meaning of the numbers as a way to create market volatility. And this generates a lot of trading commissions.

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The Real State of the US Economy

In an eerie echo of President Herbert Hoover in 1930, during a Presidential campaign against Roosevelt, following the stock market crash and collapse of numerous smaller banks, Paulson recently appeared on national TV to declare “our banking system is a safe and sound one.” He added that the list of “troubled” banks “is a very manageable situation.” In fact what he did not say was that the US bank deposit insurance fund, the Federal Deposit Insurance Corporation (FDIC) has a list of problem banks that numbers 90. Not included on that list are banks such as Citigroup, until recently the largest bank in the world.

The statement is hardly reassuring. The California savings bank, IndyMac Bank which was declared insolvent a month ago was not on the FDIC list a week before it collapsed. The reality is the crisis created by “securitizing” millions of home mortgages into new financial instruments and selling the packages to pension funds and investors is unfolding like a snowball rolling down the Swiss Alps.

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8,500 U.S. banks; many will die soon

I called the death of Indymac Bancorp on Monday, July 7th. The Federal Deposit Insurance Corporation seized Indymac on Friday, July 11th.

I called the implosion of the two Government Sponsored Entities in the mortgage business, Fannie Mae and Freddie Mac on Wednesday, July 9th. Sunday, July 13th the White House announced a bailout for them.

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Defenseless

Washington Mutual is in its death throws. Reeling from the $3 billion second quarter loss WaMu staggered exhausted, from its earnings report into swirling rumors of an investigation by one of its largest lenders and charges by a bank analyst so serious that even drained and likely to implode within the week, WaMu reflexively struck out.

As Wall Street was awash in rumors that WaMu also was being audited by the government-sponsored Federal Home Loan Bank, one of its largest lenders, Gimme Credit bank analyst Kathleen Shanley wrote that the institution may be seeing funds quietly being pulled out. That spells bank run, instant death, so WaMu’s assualt on Shanley was instinctive.

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FDIC takes over 2 more banks, closing 28 branches

The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.

The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

The FDIC said the takeover of the failed banks was the least costly resolution and all depositors — including those with funds in excess of FDIC insurance limits — will switch to Mutual of Omaha with “the full amount of their deposits.”

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