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Archive for October 11th, 2010

Iran Geo-Political Chess Game By Invoking 9/11 A US Checkmate?

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October 11, 2010: Eric Blair / Activist Post – October 11, 2010

Let’s set up the geopolitical chess board for a moment. Iran is a rogue nation according to the Western world. Which basically means that they sit on a sea of oil and don’t comply with the demands of the Western-based multinational oil firms. Iran has also made strong alliances with America’s oil-thirsty quasi-enemies China and Russia, while finding a partner-in-rogue in Venezuela.

To further aggravate the West’s agenda for global dominance, Iran’s banking system is not compliant with the private international banking cartel, therefore they can’t be enslaved by debt — the preferred method of ensuring nonviolent compliance. However, the West has recently captured a banking pawn by blacklisting the Iran-owned German-based EHI Bank under the authority of economic sanctions and accusations of benefiting from “weapons proliferation.”

Oh, and you may have also heard that Iran has achieved nuclear power against the will of the West — which seems to be the only storyline we’re allowed to discuss in the mainstream media — when will they have a nuclear weapon and how, when, and what is Israel and the West going to do to stop them?

Saturday’s Associated Press release summarized the current situation which is unfolding more like a spicy espionage novel everyday with embedded spies, highly developed computer viruses, and CIA kidnapped defectors refusing to be spies and much more diabolical intrigue:

“In recent weeks, Iran has announced the arrest of several nuclear spies and battled a computer worm that it says is part of a covert Western plot to derail its nuclear program. And in July, a nuclear scientist who Iran says was kidnapped by U.S. agents returned home in mysterious circumstances, with the U.S. saying he was a willing defector who was offered $5 million by the CIA but then changed his mind.

“The United States and its allies have vigorously sought to slow Iran’s nuclear advances through U.N. and other sanctions out of suspicion that Tehran intends to use a civil program as cover for developing weapons. Iran denies any such aim and says it only wants to generate nuclear power.”

Although Iran has always maintained that its nuclear program is for civilian energy purposes, it seems that if you’re a country who possesses natural resources like oil and wish to remain a sovereign nation, you must at least give the appearance of being capable of defending against outside threats — much like Saddam’s apparent illusiveness but actual impotence regarding Iraq’s WMDs. Ultimately, the West wanted Saddam’s resources, so they just took them by force.  And now, the West’s oil companies are being “awarded” with rich drilling contracts. In other words, checkmate.

The AP article also made breaking news that Iran has agreed to nuclear talks with the U.S. and other U.N security council countries:

“Tehran said Saturday that it was ready to hold nuclear talks with the five permanent members of the U.N. Security Council – the U.S., Britain, France, Russia, China – as well as Germany in late October or early November. Foreign Minister Manouchehr Mottaki said the precise date was being discussed by the sides.”

Why is Iran now willing to have open discussions with the U.S. and the security council? Could it be that Iran finally feels like they have their foe’s king in check? It seems the move that puts them in this new found power position was Ahmadinejad using the grand U.N. stage to question the official events of 9-11, thus the pretext to invade Muslim lands. He laid out the following three scenarios about 9-11 which prompted the U.S. delegation to walk out in protest:

1 – That a “powerful and complex terrorist group” penetrated U.S. intelligence and defenses.

2 – “That some segments within the U.S. government orchestrated the attack to reverse the declining American economy and its grips on the Middle East in order also to save the Zionist regime. The majority of the American people as well as other nations and politicians agree with this view.”

3 – And, that the attack was the work of “a terrorist group but the American government supported and took advantage of the situation.”

It appeared that the establishment media didn’t really know how to handle Ahmadinejad’s comments. Of course they did their best to attack and label him as a conspiracy theorist, but they didn’t want the story to get too loud.  Since the media blackballs any guests that question 9-11 and violently shouts down anyone who dares bring up the subject, they’ve been able to essentially ignore and shape the topic as ludicrous.

Obama did his part to discredit Ahmadinejad’s statements by calling them “hateful” and “offensive.” Finally, the establishment media also tried to create the absurd impression that, “If you want further investigation into the biggest terror event ever, you must be with the terrorists and Ahmadinejad.” It seems that they are desperately running out of moves.

In turn, the problem for the establishment’s version of events is that the polls show Ahmadinejad to be correct that the majority of the global population now questions 9-11. One does not have to necessarily believe in any of the competing “conspiracy” theories to be 100% sure the official account is bogus. That’s precisely what gives Iran power. A power they used again recently when a spokesman for the Iran Foreign Ministry reiterated the claim that more than fifty percent of Westerners were now “suspicious” of the “dubious” nature of the 9-11 event, as reported by Press TV:

“Iranian Foreign Ministry Spokesman Ramin Mehmanparast says half of people in Europe and America are suspicious of the September 11 events in the United States.

“’Many in the West blame the US government in the occurrence of the September 11 incident,’” IRNA reported Mehmanparast as saying at a press conference in the Iranian city of Isfahan on Thursday.

“He also made a reference to the recent visit of the Iranian President Mahmoud Ahmadinejad to New York for a United Nations General Assembly session on the UN’s Millennium Development Goals (MDGs) and said President Ahmadinejad’s ‘trip to the UN was a good opportunity to set forth Iran’s public diplomacy, which conveyed Iran’s message to the world.’”

“The spokesperson further pointed to the ‘dubious’ nature of the 9/11 event and said, ‘The US government needs to allow for the clarification of ambiguities regarding the incident and to refrain from jumping into hasty conclusions.’”

So, the more the establishment media continues to forcefully squash any legitimate questions about the greatest crime in modern history, the more guilty they appear of a cover-up.  Protecting their fictional account that was used to justify endless preemptive wars, torture, and the illegal surveillance of American citizens is becoming an impossible defense tactic. And Iran, armed with the truth that the official story is clearly untrue, now seems to have a stronger board position.

It will be interesting to watch if the West makes any concessions in the coming nuclear talks, and if Iran quits stoking the 9-11 truth debate — “we’ll keep quiet about 9-11 if you loosen some of the draconian sanctions on our country.”

CNN: Ahmadinejad’s UN Speech – September 23, 2010

The Tonka Report Editor’s Note: Whatever you think about Ahmadinejad, this was a brilliant move! – SJH 

Link to original article below…

http://www.activistpost.com/2010/10/is-iran-playing-geopolitical-chess-with.html

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America’s Columbus Day: The True Legacy Of Murder And Slavery!

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October 11, 2010: Eric Kasum / The Huffington Post – October 11, 2010

Once again, it’s time to celebrate Columbus Day. Yet, the stunning truth is: If Christopher Columbus were alive today, he would be put on trial for crimes against humanity. Columbus’ reign of terror, as documented by noted historians, was so bloody, his legacy so unspeakably cruel, that Columbus makes a modern villain like Saddam Hussein look like a pale codfish.

Question: Why do we honor a man who, if he were alive today, would almost certainly be sitting on Death Row awaiting execution? If you’d like to know the true story about Christopher Columbus, please read on. But I warn you, it’s not for the faint of heart.

Here’s the basics. On the second Monday in October each year, we celebrate Columbus Day (this year, it’s on October 11th). We teach our school kids a cute little song that goes: “In 1492, Columbus sailed the ocean blue.” It’s an American tradition, as American as pizza pie. Or is it? Surprisingly, the true story of Christopher Columbus has very little in common with the myth we all learned in school.

Columbus Day, as we know it in the United States, was invented by the Knights of Columbus, a Catholic fraternal service organization. Back in the 1930s, they were looking for a Catholic hero as a role-model their kids could look up to. In 1934, as a result of lobbying by the Knights of Columbus, Congress and President Franklin Roosevelt signed Columbus Day into law as a federal holiday to honor this courageous explorer. Or so we thought.

There are several problems with this. First of all, Columbus wasn’t the first European to discover America. As we all know, the Viking, Leif Ericson probably founded a Norse village on Newfoundland some 500 years earlier. So, hat’s off to Leif. But if you think about it, the whole concept of discovering America is, well, arrogant. After all, the Native Americans discovered North America about 14,000 years before Columbus was even born! Surprisingly, DNA evidence now suggests that courageous Polynesian adventurers sailed dugout canoes across the Pacific and settled in South America long before the Vikings.

Second, Columbus wasn’t a hero. When he set foot on that sandy beach in the Bahamas on October 12, 1492, Columbus discovered that the islands were inhabited by friendly, peaceful people called the Lucayans, Taínos and Arawaks. Writing in his diary, Columbus said they were a handsome, smart and kind people. He noted that the gentle Arawaks were remarkable for their hospitality. “They offered to share with anyone and when you ask for something, they never say no,” he said.

The Arawaks had no weapons; their society had neither criminals, prisons nor prisoners. They were so kind-hearted that Columbus noted in his diary that on the day the Santa Maria was shipwrecked, the Arawaks labored for hours to save his crew and cargo. The native people were so honest that not one thing was missing.

Columbus was so impressed with the hard work of these gentle islanders, that he immediately seized their land for Spain and enslaved them to work in his brutal gold mines. Within only two years, 125,000 (half of the population) of the original natives on the island were dead. If I were a Native American, I would mark October 12, 1492, as a black day on my calendar.

Shockingly, Columbus supervised the selling of native girls into sexual slavery. Young girls of the ages 9 to 10 were the most desired by his men. In 1500, Columbus casually wrote about it in his log. He said: “A hundred castellanoes are as easily obtained for a woman as for a farm, and it is very general and there are plenty of dealers who go about looking for girls; those from nine to ten are now in demand.”

He forced these peaceful natives work in his gold mines until they died of exhaustion. If an “Indian” worker did not deliver his full quota of gold dust by Columbus’ deadline, soldiers would cut off the man’s hands and tie them around his neck to send a message. Slavery was so intolerable for these sweet, gentle island people that at one point, 100 of them committed mass suicide. Catholic law forbade the enslavement of Christians, but Columbus solved this problem. He simply refused to baptize the native people of Hispaniola.

On his second trip to the New World, Columbus brought cannons and attack dogs. If a native resisted slavery, he would cut off a nose or an ear. If slaves tried to escape, Columbus had them burned alive. Other times, he sent attack dogs to hunt them down, and the dogs would tear off the arms and legs of the screaming natives while they were still alive. If the Spaniards ran short of meat to feed the dogs, Arawak babies were killed for dog food.

Columbus’ acts of cruelty were so unspeakable and so legendary – even in his own day – that Governor Francisco De Bobadilla arrested Columbus and his two brothers, slapped them into chains, and shipped them off to Spain to answer for their crimes against the Arawaks. But the King and Queen of Spain, their treasury filling up with gold, pardoned Columbus and let him go free.

One of Columbus’ men, Bartolome De Las Casas, was so mortified by Columbus’ brutal atrocities against the native peoples, that he quit working for Columbus and became a Catholic priest. He described how the Spaniards under Columbus’ command cut off the legs of children who ran from them, to test the sharpness of their blades. According to De Las Casas, the men made bets as to who, with one sweep of his sword, could cut a person in half. He says that Columbus’ men poured people full of boiling soap. In a single day, De Las Casas was an eye witness as the Spanish soldiers dismembered, beheaded, or raped 3000 native people. “Such inhumanities and barbarisms were committed in my sight as no age can parallel,” De Las Casas wrote. “My eyes have seen these acts so foreign to human nature that now I tremble as I write.”

De Las Casas spent the rest of his life trying to protect the helpless native people. But after a while, there were no more natives to protect. Experts generally agree that before 1492, the population on the island of Hispaniola probably numbered above 3 million. Within 20 years of Spanish arrival, it was reduced to only 60,000. Within 50 years, not a single original native inhabitant could be found.

In 1516, Spanish historian Peter Martyr wrote: “… a ship without compass, chart, or guide, but only following the trail of dead Indians who had been thrown from the ships could find its way from the Bahamas to Hispaniola.”

Christopher Columbus derived most of his income from slavery, De Las Casas noted. In fact, Columbus was the first slave trader in the Americas. As the native slaves died off, they were replaced with black slaves. Columbus’ son became the first African slave trader in 1505.

Are you surprised you never learned about any of this in school? I am too. Why do we have this extraordinary gap in our American ethos? Columbus himself kept detailed diaries, as did some of his men including De Las Casas and Michele de Cuneo. (If you don’t believe me, just Google the words Columbus, sex slave, and gold mine.)

Columbus’ reign of terror is one of the darkest chapters in our history. The REAL question is: Why do we celebrate a holiday in honor of this man? (Take three deep breaths. If you’re like me, your stomach is heaving at this point. I’m sorry. Sometimes the truth hurts. That said, I’d like to turn in a more positive direction.)

Call me crazy, but I think holidays ought to honor people who are worthy of our admiration, true heroes who are positive role models for our children. If we’re looking for heroes we can truly admire, I’d like to offer a few candidates. Foremost among them are school kids.

Let me tell you about some school kids who are changing the world. I think they are worthy of a holiday. My friend Nan Peterson is the director of the Blake School, a K-12 school in Minnesota. She recently visited Kenya. Nan says there are 33 million people in Kenya… and 11 million of them are orphans! Can you imagine that? She went to Kibera, the slum outside Nairobi, and a boy walked up to her and handed her a baby. He said: My father died. My mother died… and I’m not feeling so good myself. Here, take my sister. If I die, they will throw her into the street to die.

There are so many orphans in Kenya, the baby girls are throwaways! Nan visited an orphanage for girls. The girls were starving to death. They had one old cow that only gave one cup of milk a day. So each girl only got ONE TEASPOON of milk a day!

After this heartbreaking experience, Nan went home to her school in Minnesota and asked the kids… what can we do? The kids got the idea to make homemade paper and sell it to buy a cow. So they made a bunch of paper, and sold the paper, and when they were done they had enough money to buy… FOUR COWS! And enough food to feed all of the cows for ONE FULL YEAR! These are kids… from 6 years old to 18… saving the lives of kids halfway around the world. And I thought: If a 6-year-old could do that… what could I do?

At Casady School in Oklahoma City, Oklahoma, seemingly “average” school kids raised $20,000 to dig clean water wells for children in Ethiopia. These kids are heroes. Why don’t we celebrate “Kids Who Are Changing the Planet” Day? Let me ask you a question: Would we celebrate Columbus Day if the story of Christopher Columbus were told from the point-of-view of his victims? No way!

The truth about Columbus is going to be a hard pill for some folks to swallow. Please, don’t think I’m picking on Catholics. All the Catholics I know are wonderful people. I don’t want to take away their holiday or their hero. But if we’re looking for a Catholic our kids can admire, the Catholic church has many, many amazing people we could name a holiday after. How about Mother Teresa day? Or St. Francis of Assisi day? Or Betty Williams day (another Catholic Nobel Peace Prize winner). These men and women are truly heroes of peace, not just for Catholics, but for all of us.

Let’s come clean. Let’s tell the truth about Christopher Columbus. Let’s boycott this outrageous holiday because it honors a mass murderer. If we skip the cute song about “In 1492 Columbus sailed the ocean blue,” I don’t think our first graders will miss it much, do you? True, Columbus’ brutal treatment of peaceful Native Americans was so horrific… maybe we should hide the truth about Columbus until our kids reach at least High School age. Let’s teach it to them about the same time we tell them about the Nazi death camps.

While we’re at it, let’s rewrite our history books. From now on, instead of glorifying the exploits of mass murderers like Alexander the Great, Julius Caesar, Genghis Khan, and Napoleon Bonaparte, let’s teach our kids about true heroes, men and women of courage and kindness who devoted their lives to the good of others.

There’s a long list, starting with Florence Nightingale, Mahatma Gandhi, Rev. Martin Luther King, and John F. Kennedy. These people were not adventurers who “discovered” an island in the Caribbean. They were noble souls who discovered what is best in the human spirit. Why don’t we create a holiday to replace Columbus Day? Let’s call it Heroes of Peace Day.

The Tonka Report Editor’s Note: Because the government relishes the celebration of a mass murderer who is cut from the same cloth as they. Do 1,000,000 dead Iraqi’s ring a bell?! 

The oil painting above done of Christopher Columbus by Sabastiano del Piombo in 1519, depicts Columbus flashing the cabalistic hand sign indicating the left-handed path of the initiate of either the Knights Templar, Freemasons, some other secret society or a combination of said Luciferian organizations, all with deep roots hidden within the catacombs and history of the Vatican.

Also, it was the Knights of Columbus who were the handlers of John Wilkes Booth as agents for the Rothschild banks who was ultimately duped into assassinating Abraham Lincoln because Lincoln had the audacity to print the greenback, costing the Bank of England millions in lost interest revenue during the Civil War…

Happy Columbus Day, America! – SJH

Link to original article below…

http://www.huffingtonpost.com/eric-kasum/columbus-day-a-bad-idea_b_742708.html

Inflation Could Make All Americans Billionaires By The Year 2020!

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October 11, 2010: NIA Editors / National Inflation Association – October 6, 2010

One of the Federal Reserve’s original stated purposes was to manage the nation’s money supply through monetary policy that provides for stable prices without inflation or deflation. Shocking just about the whole world except for NIA members, the Federal Reserve this past week shifted its purpose from being an inflation fighter to now being an inflation advocate.

Charles Evans, President of the Federal Reserve Bank of Chicago, is now saying that inflation in the U.S. is too low and the Federal Reserve needs to publicly declare a new goal of having inflation that is much higher than its informal 2% target. William Dudley, President of the New York Federal Reserve, is calling current low levels of U.S. inflation “a problem” because “it means slower nominal income growth”.

Dudley believes “slower nominal income growth” is unacceptable because it “means that less of the needed adjustment in household debt-to-income ratios will come from rising incomes. This puts more of the adjustment burden on paying down debt.” In other words, he wants to monetize our debts by printing so much money that all Americans are earning enough income to pay back their debts. NIA fears that one of the unintended consequences of such a policy will be an insurmountable currency crisis; this will lead to a U.S. societal collapse with class warfare, millions of Americans starving to death, and a return to a barter based system that will last until we can come up with a new form of workable government based on sound money that is backed by gold and silver.

When our government creates inflation with the goal of generating higher incomes, the real incomes of Americans always decline dramatically. Inflation never creates wealth, but instead misallocates resources that would have went towards productive purposes if the free market was allowed to operate. During periods of high inflation, no matter how fast incomes rise nominally, they never keep pace with rising gold prices. (Try to picture Zimbabwean President Robert Mugabe trying to keep pace in a race against Olympic gold medalist Usain Bolt.)

Back in 1970, the median family income in the U.S. was $9,870. During the next decade, the U.S. government created unprecedented amounts of inflation, which led to the median family income rising in 1980 to $21,020 for a gain of 113%. Gold was only $35 per ounce in 1970, but rose to a high in 1980 of $850 per ounce for a gain of 2,329%. One year of income in 1970 would have bought 282 ounces of gold, but one year of income in 1980 would have only bought 25 ounces of gold. Priced in gold, families saw their real incomes decline during the 1970s by 91%.

On July 19th of this year, with everybody in the mainstream media warning Americans about the threat of deflation, NIA predicted that the Federal Reserve was, “quietly getting ready to implement ‘The Mother of All Quantitative Easing’”. NIA said that, “come this October, Bernanke is likely to shoot up his largest ever dose of quantitative easing.” Then on July 28th with gold down to $1,158 per ounce and silver down to $17.63 per ounce, NIA sent out an alert entitled, “Gold and Silver Capitulation is Near” in which we said, “The sentiment on gold and silver has abruptly changed to the negative like nothing we have ever seen before and to us this means the big move to the upside is right around the corner.”

NIA called the bottom on gold and silver perfectly. Since July 28th, gold and silver have both risen 34 out of 49 days, with gold rising by 16% and silver rising by 30%. Many people are asking us when precious metals are going to dip. Although gold and silver will make many dips in the years to come, NIA is never going to make an attempt to predict these short-term, temporary dips. It is far too risky and dangerous to sell gold and silver with the hope of buying back on a dip. Those who actively trade gold and silver, usually go long the U.S. dollar while they are waiting for a dip. There will come a time when the U.S. dollar crashes, with gold rising hundreds or even thousands of dollars in a day, and silver potentially doubling or tripling in value in a day. Trust us, you do not want to be on the wrong side of the trade on that day. NIA is focused on the long-term risk of hyperinflation and is not concerned about short-term volatility.

NIA believes that if the Federal Reserve doesn’t reverse course immediately, we are on a direct path to all Americans becoming billionaires by the year 2020, if not much sooner. Being a billionaire in dollars won’t mean anything. The wealth of Americans later this decade will be calculated based on how much gold and silver they own. We are at the beginning stages of a massive worldwide rush out of the U.S. dollar and into gold and silver.

Gold, at a new all time high of $1,344 per ounce, is still very undervalued. If gold’s total bull run from its 2001 low of $256 per ounce equals a percentage gain of 2,329% (just like the 1970s) we will see a gold price of $6,218 per ounce. Silver, at a new 30-year high of $23 per ounce, is still an absolute steal. Just like NIA predicted, the gold/silver ratio has declined in recent months from 70 down to 58, but is still well above the historical average of 16. In our opinion, because silver has been undervalued for so long with artificially high gold/silver ratios, once JP Morgan is forced to cover their naked short position in silver we could see the ratio decline to an artificially low level as low as 8. Therefore, if we see $6,218 per ounce gold, we wouldn’t be surprised to also see $777.25 per ounce silver.

Dudley’s solution to our current economic crisis is to “find ways to increase the amount of stimulus we currently provide via our balance sheet.” This is pure insanity. Bush’s $200 billion stimulus sent oil prices to $147 per barrel, Obama’s $800 billion stimulus prevented massive price deflation (that would have made cost of living in America a lot more affordable) during a period of rapidly rising unemployment, and now the Federal Reserve believes even greater stimulus will fix our economy. Dudley is calling for the Federal Reserve to purchase $500 billion in bonds, but the Federal Reserve’s real quantitative easing will be much greater. Dudley doesn’t want to steal the show from Bernanke. He must allow Bernanke to be the one who first suggests the “genius” idea of having quantitative easing of $1 trillion or more.

The truth is, the exact amount of the Federal Reserve’s short-term purchases is absolutely meaningless. Keep your eyes on the big picture and remember that if the Federal Reserve’s treasury purchases aren’t enough to create massive price inflation in the short-term, they will continue to unleash even larger doses of quantitative easing. Our gut feeling is that we are practically at the point where the U.S. economy is about to overdose on any further quantitative easing. A “Meltup” is currently taking place, exactly like NIA predicted in our documentary ‘Meltup’ that was released on May 13th (it has now been viewed by over 808,000 people).

We may be forced to soon change our hyperinflation forecast from the years 2014-2015 to as soon as the year 2012. NIA has long been predicting ever since its first documentary ‘Hyperinflation Nation’ that besides gold and silver, we would see inflation most in agricultural commodities. During the month of September alone we saw huge gains in agricultural commodities like soybeans +9.5%, rice +10%, corn +12%, orange juice +13%, cotton +17.5%, and sugar +19.3%.

All countries are now in a war with each other to have the weakest currency, with the false belief that having a strong currency destroys their export markets. When history looks back to the time period we are currently in, our world leaders (especially our elected representatives in Washington) will be considered the most incompetent and corrupt in world history. NIA’s new documentary being released later this month will expose the U.S. societal collapse from a perspective that has never been addressed before by anybody in the media. NIA’s co-founders are currently on their way to Kingston, NY, to interview Gerald Celente, the most accurate trends forecaster of all time. His interview in ‘Meltup’ was widely considered to be the most insightful and eye-opening economic interview to ever be a part of any documentary and his interview in our new documentary promises to be even better.

Meltup

The Tonka Report Editor’s Note: Why every American has not watched this yet is beyond me– SJH 

Link to original article below…

http://inflation.us/allamericansbillionaires.html

10 Things To Understand About The Latest US Economic Numbers

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October 11, 2010: The Economic Collapse Editors / The Economic Collapse – October 8, 2010

On Friday, headlines across the United States declared that “unemployment remains unchanged at 9.6%”. 

Many analysts rejoiced and heralded this announcement as a sign that we have hit bottom and that things will be turning around soon.  But is that the truth? 

A closer look at the unemployment numbers reveals some disturbing facts.  For example, according to the Bureau of Labor Statistics, a broader measure of unemployment that includes workers that have stopped looking for work rose sharply to 17.1%.  But that is not the only troubling sign from this past week.  Agricultural commodities continue to skyrocket, which means that food price increases are on the way.  The foreclosure “robo-signing” crisis continues to escalate, and that threatens to throw the entire mortgage industry into a state of absolute turmoil.  Meanwhile, the U.S. national debt continues to grow and wealth continues to leave the United States at a dizzying rate

So is there reason for optimism? No, not really. Even if the unemployment numbers had improved slightly, the longer-term trends for unemployment are extremely troubling as you will see from the statistics and the chart below…

At the same time when so many Americans are out of work or can barely get by on what they are currently making, there is every indication that prices are about to go up.  Wheat, corn and soybeans all jumped in price on Friday, and it is inevitable that at some point these price increases will be passed on to consumers.  And if that wasn’t bad enough, now some Federal Reserve officials are actually talking about purposely generating more inflation in order to “stimulate” the U.S. economy.  

Meanwhile, this “robo-signing” foreclosure crisis threatens to escalate totally out of control.  Will we soon see thousands of court cases popping up from coast to coast challenging the legitimacy of foreclosure paperwork?  Will title insurers start totally backing off from foreclosed properties?  Banks were already completely overwhelmed trying to process the massive backlog of foreclosures.  Is this going to make the situation a whole lot worse?

The truth is that more bad news for the U.S. economy comes out almost daily now.  The following are 10 things that you need to know about the latest economic numbers… 

1 – Gallup’s measure of unemployment, which is not adjusted for “seasonal factors”, showed a sharp increase in September.  According to Gallup, unemployment has increased from 8.9% in July to 9.3% in August and to 10.1% in September.

2 – The seasonally-adjusted Alternate Unemployment Rate compiled by Shadow Government Statistics shows that the real unemployment rate in the United States is worse than it has been ever since the economic downturn began.  The Alternate Unemployment Rate calculated by SGS reflects estimated “long-term discouraged workers”, which the U.S. government stopped keeping track of back in 1994.

3 – The number of Americans working part-time jobs “for economic reasons” is now the highest it has been in at least five decades.

4 – 15.8% of Americans between the ages of 18 and 29 were unemployed during the month of September.

5 – Agricultural commodities continued to move higher on Friday.  Wheat, corn and soybeans all saw their prices soar.  Unfortunately for American consumers, this is part of a broader trend of rising agricultural commodity prices.  As this continues, it is inevitable that we will all be seeing much higher food prices at our local grocery stores. 

6 – It is being reported that PNC Financial Services Group has suspended the sale of foreclosed homes for the next thirty days.  This is the fourth major lender to take dramatic action recently.  Will nearly all U.S. mortgage lenders eventually be caught up in this crisis before it is over?

7 – Bank of America announced on Friday that it is now going to suspend sales of foreclosed homes in all 50 U.S. states as it continues to evaluate internal foreclosure procedures.  This “foreclosure crisis” threatens to decimate the entire U.S. real estate industry.  What has happened is that millions of U.S. mortgages were sold and resold around the globe at lightning speed and the chain of ownership for many of these mortgages become muddied.  In addition, it is starting to emerge that many of these lenders used fraudulent loan documents during foreclosure proceedings and company officials often used “robo-signers” to sign important foreclosure documents.  So now mortgage lenders, title insurers and those buying or selling foreclosed homes will be facing years of gridlock and chaos as foreclosure-related lawsuits multiply exponentially.  All of this is going to have a dramatic effect on the U.S. real estate market.  In fact, it is being reported that U.S. home sales are already starting to be affected by this crisis. 

8 – The U.S. National debt just keep growing.  If you took the national debt and divided it up among all Americans, each American (including children) would owe approximately $42,000.  So, for an average family of four, their share of the national debt would be $168,000.

9 – Interest payments on the U.S. national debt increased 13% in the fiscal year that ended September 30th.  If interest payments continue to increase that rapidly each year they will bankrupt the U.S. government very quickly. 

10 – It appears that some weird games are being played with the national debt numbers.  Back on September 29th, the U.S. national debt was 13.466 trillion dollars.  On September 30th, the U.S. national debt soared to 13.561 trillion dollars.  Then on October 1st, the beginning of the new fiscal year for the federal government, the U.S. national debt jumped up to 13.610 trillion dollars.  So how in the world does the U.S. national debt jump by a whopping 144 billion dollars in just two days?  Somebody has some explaining to do for this kind of accounting.

The United States was once the wealthiest nation by far on the entire planet. But now we are in such a rapid decline that it is hard for most Americans to even comprehend it. We are like that one couple that almost every neighborhood seems to have that has two shiny new cars in their driveway, that dresses in designer clothes and that seems to have plenty of money to take vacations and yet is in debt up to their eyeballs.

The truth is that the United States keeps getting poorer every single month.  The term “trade deficit” is not very sexy, but it is critically important to understand if you want to comprehend what is happening to the U.S. economy.  Every month tens of billions of dollars more wealth goes out of the United States than comes into it.  We are continually getting poorer.

To cover up our declining national wealth, we have gone into staggering amounts of debt.  We have maintained our lavish standard of living by piling up staggering amounts of debt on the national, corporate and consumer levels.  The sad reality is that the U.S. government is not the wealthiest government in the world any longer.  Rather, it is the government that is the most in debt.  The U.S. national debt is the biggest debt that the world has ever seen, and it grows larger every single day.

We can’t keep up this charade forever.  At some point it is going to stop. When this house of cards does come tumbling down, do you think that the American people are going to be pleased to learn that our leaders have squandered our once great wealth and have destroyed the greatest economic machine that the world has ever known?

The Tonka Report Editor’s Note: They haven’t “squandered” it…They engineered it by design! – SJH 

Link to original article below…

http://theeconomiccollapseblog.com/archives/more-bad-news-10-things-you-should-know-about-the-latest-economic-numbers

U.S. Economy Is Faltering As Inflationary Depression Is In Progress

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October 11, 2010: Bob Chapman / Global Research – October 9, 2010

In spite of the disinformation, misdirection and outright propaganda, the economy is faltering without the addition of stimulus and quantitative easing.

The benefits of inventory accumulation over the past 17 months, which accounted for 60% of the strength in the economy is at an end. We either get more stimulus, either governmental or from the privately owned Fed, or growth is going to continue to drop.

We are looking at indexes that for the most part are at or near their lows. We see short reactive rallies but certainly nothing that leaves us to believe that any kind of a recovery is at hand. The longer we have to wait for Congress and the Fed to act, the more difficult it will be to regain upside momentum. It could be the plan is to simply go sideways for the next two years. The problem with that is that it will cost $5 trillion to accomplish.

Production is starting to fall with the exception of a temporary increase in automotive manufacturing. Inventory build is retracting and both the absence of further build, and production, should herald a 2-year low by year end. The administration had other priorities and they missed the boat on getting support. The Fed as usual was too far behind the curve. Consequently we are actually looking at the distinct possibility of economic crisis and higher unemployment soon.

Will the administration be able to get a lame duck Congress to approve $500 billion in spending? We won’t know until we get there and that is only two months away. The Fed is obviously waiting until the election is over before they open the floodgates of QE2. Will it be by $1.5 trillion? We’ll have to wait and see. If they do lend that sterilized float it will be monetized and it will hit higher inflation very quickly.

Will business spend the $3 trillion they have on hand? They’ll certainly spend some of it, but how much no one knows. Will our government continue to give us obviously bogus numbers? They probably will, but most professionals have finally caught on to their 3-card Monte game. Wait until the real ISM figures show up for September, after August’s blatantly bogus figures. All the recent statistics are at lows not seen for 1 1/2 years, including the ATA’s truck tonnage index that fell 2.8%. If there is a recovery the public doesn’t think so. All indications are that buyers are depressed.

The public realizes an inflationary depression is in progress and the QE1 policy only took the economy sideways for 18 months at the cost of the Fed tripling its balance sheet. As a result the public does not think the Fed will be anymore successful in QE2 than they were in QE1. Future expectations are that 2/3’s of consumers believe that economic conditions will be bad and only 25% believe they will be good. We know the public doesn’t understand what is happening, but we also can see that whatever leadership is providing is bad and it isn’t working.

China and Japan look to be the leaders in the new currency wars. As a result, the Fed on Tuesday dumped a larger than expected $5.19 billion of POMO into the market and the Dow obediently rose 193 points. This is how the Fed has been doing QE2 since June and in the process elevating the market. For four months the economy has done little. It is in a slow fade. This is part of the Illuminist program to keep the more pliable Democrats in office and to avoid having to pay the cost of paying off new congressional members.

The correlation between a strong stock market and political affinity is strong. It makes people forget when their wealth is increasing. The Fed, Treasury, administration, House and Senate are in a preservation mode. This could very well be your October surprise, a Dow at 11,700 or perhaps even at 14,200 – who knows. If we are correct, and we usually are, this could be a blatant attempt to keep incumbents in office to defy our demand, and to deny Republicans a majority in both houses and congress. The stakes are high for the elitists and their ilk for the further concentration of wealth and power. If these insiders lose, the economy could collapse.

As a result of this commentary and what the Fed is doing today we hark back to 1931 when the Fed and the NY Fed both increased credit and cut interest rates furiously, as they have done recently, until gold began to rise globally in the fall of 1931. Later in 1936, under the Smoot-Hawley Bill, they were able to monetize debt, as they are currently doing until the bond market reversed in 1936. That is what we have in our current future.

Incidentally, while the depression scam was being done in the US in the 1930s, these elitists were trying to put in power a fascist government in America, similar to that in Germany. These are the same people who were instrumental in financing the Third Reich. This is what history is all about, a repetition of the machinations of power and subjection.

We now have an economy where families shop when welfare or food stamps arrive as consumers spend less. We wonder what will happen when the welfare stops? Empty bellies make for revolutionary times, as monetary policy gets easier and easier. Remember, there is a limit to how long rates can fall. Personal disposable income rose 0.5%, but 70% of that was a huge retroactive emergency payment of jobless insurance checks, which boosted income 1.6%, or by $35 billion. Thus, consumer spending would have been up 0.1%, not 0.4%. That is a big difference that government and Wall Street conveniently overlooked.

This means there is no recovery in sight. It is very disconcerting when government accounts for 20% of disposable income. That means 50% of the recovery since 2009 came via stimulus. In August alone 70% of growth in income came from government. Even auto sales gains in September were overstated due to Labor Day. Sales should be 50% higher due to low financing costs and the same is true with housing, but that is not happening. That means household debt is still too onerous to allow increased spending.

Only 1/3rd of consumer de-leveraging has taken place. There is still at least $6 trillion to go. That is why Goldman’s chief economist said things are bad, very bad. In the midst of all this, FICO scores continue to fall leaving only 47% of the consumers with decent credit scores. The bottom line is this is all about government intervention and stimulus. The bottom line is if QE2 and government stimulus doesn’t occur the economy will collapse.

We do not see a bounce and support for the dollar on the USDX until it enters the 74 to 75 zone. We predicted this four months ago. The upward move on the euro and the other five currencies will run out of steam soon as economic contraction begins anew. The benefits of a cheap euro are over for now. Do not forget the eurozone still has plenty of problems, just as bad as those in the UK and US.

The beggar-thy-neighbor currency war continues unabated. The US subtly pushes QE2 via the repo market, as Japan and others lower their interest rates. Appreciation is a bad word when it comes to currencies. Whether you knew it or not currency wars are really trade wars. We are already seeing trade barriers on Chinese goods by the US and China has retaliated. As time goes on this will expand and official barriers will be erected.

In addition, the Fed chairman said recently that he supports further expansion of the Fed’s balance sheet and that means the money supply is about to be expanded. The only way to stop this subtle trade war is to officially declare tariffs, which includes a calculation on currency values.

As a result of this, gold and silver hit new highs each day against all currencies. As you can see in the end, gold and silver are the only real money. The rest are backed by empty promises. Quantitative easing does not add to household wealth; it causes inflation and higher prices, as you are currently seeing.

Due to current policies that are focused on bailing out elitist corporations, resurrection of employment is left in the dust. Even Fed member banks see a ½% increase in unemployment over the next eight months. We see a 1% increase to 23 5/8%, a new high. This problem is simply not being addressed at all.

Smedley Butler Exposes Fascist Coup During Depression

The Tonka Report Editor’s Note: The only way to save the American economy is to abolish the Federal Reserve! – SJH

Link to original article below…

http://www.globalresearch.ca/index.php?context=va&aid=21373

America’s Third World Economy: The End Of The American Dream

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October 11, 2010: Dr. Paul Craig Roberts / Infowars.com – October 10, 2010

For a number of years I reported on the monthly nonfarm payroll jobs data. The data did not support the praises economists were singing to the “New Economy.”

The “New Economy” consisted, allegedly, of financial services, innovation, and high-tech services. This economy was taking the place of the old “dirty fingernail” economy of industry and manufacturing. Education would retrain the workforce, and we would move on to a higher level of prosperity. Time after time I reported that there was no sign of the “New Economy” jobs, but that the old economy jobs were disappearing. The only net new jobs were in lowly paid domestic services such as waitresses and bartenders, retail clerks, health care and social assistance (mainly ambulatory health care services), and, before the bubble burst, construction.

The facts, issued monthly by the US Bureau of Labor Statistics, had no impact on the ”New Economy” propaganda. Economists continued to wax eloquently about how globalism was a boon for our future.

The millions of unemployed today are blamed on the popped real estate bubble and the subprime derivative financial crisis. However, the US economy has been losing jobs for a decade. As manufacturing, information technology, software engineering, research, development, and tradable professional services have been moved offshore, the American middle class has shriveled. The ladders of upward mobility that made America an “opportunity society” have been dismantled.

The wage and salary cost savings obtained by giving Americans’ jobs to Chinese and Indians have enriched corporate CEOs, shareholders, and Wall Street at the expense of the middle class and America’s consumer economy.

The loss of middle class jobs and incomes was covered up for years by the expansion of consumer debt to substitute for the lack of income growth. Americans refinanced their homes and spent the equity, and they maxed out their credit cards. Consumer debt expansion has run its course, and there is no possibility of continuing to drive the economy with additions to consumer debt.

Economists and policymakers continue to ignore the fact that all employment in tradable goods and services can be moved offshore (or filled by foreigners brought in on H-1b and L-1 visas). The only replacement jobs are in nontradable domestic services, that is, those jobs that require “hands-on” activity, such as ambulatory health services, barbers, cleaning services, waitresses and bartenders–jobs that describe the labor force of a third world country. Even many of these jobs are now filed with foreigners brought in on R-1 type visas from Russia, Ukraine, Thailand, Romania, and elsewhere.

The loss of American jobs and the compression of consumer income by low wages has removed consumer demand as the driving force of the economy. This is the reason expansionary monetary and fiscal policies are having no effect.

The latest jobs report issued today shows that America’s transformation into a third world economy continues. The economy lost 95,000 jobs in September, mainly due to cuts in local education and federal employment. Part of the loss of 159,000 government jobs was offset by 64,000 new private sector jobs.

Where are the new jobs? They are in nontradable lowly paid domestic services: 32,000 were in health care and social services, and 33,900 were in food services and drinking places. There you have it. That is America’s “New Economy.”

RT: Paul Craig Roberts – “Americans Betrayed By Their Government”

The Tonka Report Editor’s Note: The privately owned Federal Reserve system must be abolished! – SJH

Link to original article below…

http://www.infowars.com/americas-third-world-economy/