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July 19, 2009
Issue 54  -  A Matter of Control
There is an old saying that says, "reality is nothing, perception is everything."  This is about as true a statement as has ever been uttered.  If one can control someone's inputs, then he owns the thoughts and actions of the controlled.  The main stream media is a master at this and none more so than the financial press.   Take last weeks headline about an ultra bear:
"U.S. Stocks Rise as Roubini Reiterates That Recession Is Ending
  By Whitney Kisling

July 16 (Bloomberg) -- U.S. stocks rose for a fourth day, the longest streak in six weeks, as economist Nouriel Roubinisaid the worst of the financial crisis is over and reiterated that the recession may end this year, while takeover speculation lifted commodity shares.

This is indeed what happened, as far the market goes.  However, it wasn't  true.  Roubini didn't say what they said he did.  In fact he issued a statement shortly after the Bloomberg piece hit the wires which partly read:
"It has been widely reported today that I have stated that the recession will be over 'this year' and that I have 'improved' my economic outlook," Roubini said in a prepared statement. "Despite those reports ... my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context."
Of course this statement was not mentioned on the CNBC type of shows.  It's all about perceptions.  Bread and circuses.  Keep them fooled and entertained long enough to pick their pocket.  Any reputable journalist organization would quickly retract a story that had a rebuttal from the supposed main source of the article, but the Bloomberg article is still on the Bloomberg site.  Do you think that is an oversight?  No, it's deliberate.  Deviously deliberate.  The whole system must be kept together bar anything.  The show must go on!  Dam the peasants to hell.  I've got to get my bonus.  Speaking of which, how about Goldman Sacs awarding huge bonuses:
"Goldman compensation: $1 mln per employee in sight
* Goldman sets aside $226,156 per employee in 2nd quarter

* Compensation, benefits surge 75 percent per employee

NEW YORK, July 14 (Reuters) - The average Goldman Sachs Group Inc employee is within striking distance of $1 million in compensation and benefits this year, just nine months after the bank received a $10 billion U.S. government bailout.

The figure will likely fuel criticism of the politically connected bank, especially amind the widening recession and rising unemployment. In addition to the bailout, Wall Street's biggest surviving securities firm also benefited from several other government schemes during the depths of last year's financial crisis.

Goldman on Tuesday said money set aside for pay surged 75 percent in the second quarter. Compensation and benefits costs were $6.65 billion, up 47 percent from the equivalent quarter in 2008.

Given a 16 percent reduction in staff from last year, to 29,400, the bank set aside an average $226,156 per employee in the second quarter, up from $129,200 in a year ago.

If the quarterly figure is annualized, it comes to $904,624 per employee."
Now these bastards took 10 billion in government handouts (that we know of, it's probably much, much more) and they have the NERVE to hand out bonuses which bring the AVERAGE employee compensation to a million bucks!!  Are we as Americans that stupid, that interested in Big Brother 9?  All this while foreclosures rose 15%:

Foreclosures up 15% in the first half of 2009

July 16, 10:05 AM 

Foreclosure filings continued to rise in the first half of 2009, including in June, giving marketwatchers less hope for a broadbased recovery in the housing market.

 According to RealtyTrac, foreclosure filings were down 30 percent in the District, making it one of the strongest states in the index. Filings rose 3 and 4 percent in Maryland and Virginia, well below the national average.

'June was the fourth consecutive month that foreclosure filings surpassed 300,000, RealtyTrac says, and the number of properties receiving one or more filings in the second quarter totaled 889,829 — the highest since RealtyTrac began issuing its report in 2005.'

Americans are being thrown out of their homes left and right and these guys are giving away money like the good times are back again.  These guys are robbing us blind, and no one says a word on the main television stations.  When will enough be enough?  Probably when it's too late. 
But, not to worry, there are "green shoots."  This term was chosen very carefully.  It insinuates a better time to come, but it can be delayed without concern.  This is all part of the hypnosis, the control, and the managing of expectations.  This statement can hold for as long as they can pull out a statistic that is not "as bad as expected,"
How bad is it really?  Look around, you can tell.  How about the "solved" bank crisis?  This from 

"Bank Closings Pass Three Thousand Offices

As happens on Friday's, the FDIC posted the latest evidence of the Second Depression after the market closed...a total of five banks, but representing 32 offices in all were shotgun married off:

Temecula Valley Bank
Vineyard Bank
First Piedmont Bank
Bank of Wyoming
If you are counting bank offices closed since last July 11th's IndyMac Bank closing, that's 3001 offices that have been reorganized and 80-institutions, again counting from IndyMac which marketed best I can figure the beginning of Bank Roulette."
So there have been 3 thousand bank outlets closed or reorganized and everything is OK?  I don't think so. 
The President recently said that the employment picture was getting better.  Does this chart from show an improvement?:
If you read the text on the chart and we are still in a recession than this employment thing is no where near getting better.  What you can also see is that the length of unemployment is the highest in 60 years!  How is that good?  How are we getting better?  This is a game of cat and mouse and we are the mice.  Heading towards the trap unfortunately, while the powers that be sing us lullabies of how good the cheese is.  Most Americans have no idea a speeding piece of metal is heading for their head.  Soon they will find out, the hard way. 
Another one from
So our wage growth is negative for the first time since 1959!  But things are getting better?  Hmmmmm...  I don't think so.  Do you?  How can the economy "recover" if people have less money?  It can't.  You believe me, right?  Or, do you believe them?  Before you decide, read this from
"Port Disaster Growing

The latest figures will be filtering out over the next couple of days from the rest of the ports, but already the Port of Lang Beach has released its June import and export report.  It shows that inbound cargo from overseas is down 28.4% compared with June a year ago and that on a year to date basis, imports are down 23.5% overall.


On the export side, things were even worse in June with exports down 28.8% compared with year ago levels and that means exports for the year to date are down 26.9%."
So imports are down 28% from last year and things are better?  This is a joke, right?  People aren't THAT stupid?  Yes, they are.  Forty years of public school programming has left most people unable to think, unable to be logical or make complicated assessments of data.  Why?  Because they have been conditioned to think that the, "the government will save me if things get too bad."  And it's all a grand plan of deceit.  And we sit idly by, doing nothing.  Hell, I'm not talking about offensively, most aren't even doing anything defensively.  This while the government receipts collapse:
This is an incredible chart.  This is the INCOME of the U.S. Government!  And it's collapsing!  And what's our answer!  SPEND MORE!  When someone is stuck in a hole with a shovel, do you tell them to, "just keep digging, you'll be fine?"  So why, why, why?   What's going on here?  Why do the talking heads act like it's ok?  Read another one from
"California At the Wall

Which gets us to the story in the Christian Science Monitor of "Clock's ticking for California budget talks" is worth reading.  Especially if you understand the larger game in play by the PowersThatBe.  In case you've forgotten, here's how it works:

  • A out of state rich people (in Greenwich, Ct, for example) buy a small handful of California bonds.  $50-million maybe, or even $100-million.

  • Then through offshore funds, they effectively short California debt hundreds of times over.  About 100-offshore funds, or so, is all that need to play.  They buy billions in insurance hedge bets.

  • Then since the out of state slimeballs ontrol the offshore hedge funds that stand to reap huge payoffs when California defaults, they pour some of their out of state money through various fronts into California to block any meaningful solutions.

  • (Which is why there's a groundswell in the PowersThatBe to press for 'super-majority' legislation nationally because who needs a new housing type bubble to burst when there's a whole government with unlimited deep pockets to go after?  This is like the crack-addicts wet dream.)

  • Then the hedging slime  sit back and profit as their bond insurance bets pay off when California defaults and they make billions, which they then dribble back into their US checking accounts as small to medium-sized wire transfers claiming near zero-percent taxable rates from offshore - long term gains, ostensibly, not the high crimes against the people that it really is....

  • And then they bitch & moan about maximum income tax rates on long term capital gains they'll tell you should be lowered and "Woe be to us poor bond holders".  Ask them to open their books to see how they had hedged that risk, they'll scream bloody frigging murder about 'rights to privacy"."

Is that a scam or what?  As I've said countless times, they are robbing us!  They are looting this country and they don't care what the consequences.  More, more, more!  Enough isn't enough to these guys.  They think they are playing a game.  Too bad it's with the very fiscal heath of the country.  Maybe the country itself.  As I said it's all a plan and its being played out on schedule.  Things aren't getting better, trust me.  One last chart today from GATA:
As you can see we are well on our way to matching the great depression stock performance.  You wouldn't know that from watching our politicians or financial talking heads would you?  I wonder why.....hmmmmmm.  Oh that's right, they are screwing us over.  Please don't be a patsy.  Get some hard, solid insurance.  Gold and silver.  But gold has been selling in the $900s for a while.  It's plentiful.  It will never go up.  Then why this:
"Toni Straka, editor of the Prudent Investor Weblog, reports that the U.S. Mint again has suspended production or delayed delivery of some popular gold coins. You can find the report here:
If gold is so "plentiful" why are mints shutting down production?  Don't they want to sell their product?  If they don't have any gold, why is the price down?  Because that's the plan.  The bottom line is nobody is looking out for you, but you.  Don't count on anyone else to bail your arse out of the fire.  Grab a bucket of water and do it yourself.  You won't be sorry.  Remember if you need help, email me at  Have a great week!