The year of transformation

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The year of transformation

Dear reader I hope you started into the new year in an excellent way. One again, I wish you all the best for 2010. I hope that the new year may bring you all you wish and give you the strength to sail through rough waters and to adapt to an environment which in my opinion will change enormously (troubles with the FED, government defaults etc.). In the first part of this post you find my musings about 2010. What do I believe will happen in 2010. Furthermore you will find the following information.


Economy
-We're Screwed! (interview with John Williams from www.shadowstats.com)
-Cash-strapped US running out of unemployment money
-food stamps (some more info)
-James Turk: Will Sovereign Debt Defaults Bring the End of Socialism?

Gold
-gold hit with a bear raid
-The Fractional Reserve Aspects of Gold ETFs
-Eric deCarbonel with an excellent Gold market analysis
-Grandich comments
-Embry: Gold bull has many years and thousands of dollars to go

Banks and banksters
-Former Managing Director of Goldman Sachs: Accounting Fraud of the Too Big to Fails May Be Worse Than Enron
-Banks with political ties got bailouts, study shows
-Comments on Citi’s loanbook and their auditors

Equity
-After hour manipulation

USD
-Renminbi

Bonds
-My musings
-Eric Sprott: Is it all just a Ponzi scheme?

Derivatives
-even Harvard University, so far one of the top managed endorsements, has troubles keeping risks related to derivatives under control

Global warming/climagate
-global warming is a hoax, it is business nothing else. Very interesting information indeed

Food
-Eric deCarbonel with his food analysis



2010

What will this year bring us? Of course nobody really knows for sure but to me it looks like some scenarios are already in the cards. Which ones will it be? Let’s see how I do see the near future
First of all I do believe that the elites already know that the Titanic (Economy and especially the financial system) will sink soon. They are preparing themselves for this event. They have already taken or are taking possession of the life boats/vests. Why are they doing it? Let’s see what the different reasons might be.



Banks: The big banks are still extremely overleveraged and therefore a huge risk. Big accidents can happen anytime and possibly will happen soon. We might soon hear about big banks getting out of business and a declaration of banking holidays. The risk of banking holidays increases by the day. Therefore I will stay course and will avoid investments in the big financials and the exposure to the counterparty risk of the big financial companies . For those readers who started to read the musings on a regular basis recently, please find following a link with information of an interview of a US congressman explaining that the US was hours from declaring banking holidays in 2007. So writing or expecting banking holidays is not completely out of the blue.
http://zerohedge.blogspot.com/2009/02/how-world-almost-came-to-end-at-2pm-on.html

USD: 2010 will be the year that will, in the future history books, be indicated as the year when hyperinflation in the US and possibly in Europe started. The tipping point should be reached soon. The USD is on it’s path to the graveyard and might be history soon. Maybe the USD will not yet disappear in 2010 but 2010 will most probably be the trigger year. However the USD is already on its death bed. A patient that practically has almost passed away.

Gold: The essential value of gold does not change and has not changed over the years. The value remains the same the only thing that changes is the value of everything else fluctuating AROUND GOLD. Gold is the basic unit of wealth.
Although Central Banks try to manage (control the rise) of gold, we will see in 2010 an ounce of gold with a price tag of USD 1,650.—at least. I personally do not have any doubts that we will see much higher prices over the next 5 years. Don’t believe those perma bears telling you that we are in a bubble and that the gold price will fall to USD 500.--. These guys have been wrong for the last 9 years and most probably will be equally wrong for some more time. How can an item that most people do not understand and therefore do not want to buy be in a bubble? How can an item that most people try to sell be in a bubble? How can an item with a history of 6,000 years of adapting to inflation and still being nowhere near its inflation-adjusted high, be in a bubble? Have you ever heard of a bubble where real prices did not reach uncharted territory? There are many other arguments that show me that fundamentally nothing has changed comparing today’s situation to the situation back in 2001. The only thing that has changed is the price. In my opinion, from a technical analysis point of view, we entered the second up leg and as mentioned in a previous post I do believe that the 1,000 mark is now the support (possibly it is 1,080). I doubt that we will see prices below the 1,000 mark ever again. Gold at a price below 1,100 is cheap and therefore a bargain, Silver at a price of 17 even more so. Both will be the asset classes to hold for the next 5 to 10 years until we will see a Gold/DJI ration of 1 to 1.



Economies: The US economy and many other economies will not recover in 2010 and it will take years until we will see these economies recover. Before recovering we will go further down. Unemployment is still increasing and this trend will not change in 2010. On the contrary the unemployment rate will rather increase. The economies of the commodity producing countries which so far did quite well, will start to suffer in 2010 too. Even countries like Brazil will have to face a recession. Looking at the statistics of www.shadowstats.com, which in my opinion are very realistic, we can say that today’s situation is far worse than what the press wants us to believe. Folks let’s face it, they are lying to us. The truth looks different. The real picture is not as rosy as the spinmasters want us to believe. Just ask all those without a job or all those who need food stamps or social security in order to survive. They will give you the real picture.

Bonds: Did you know that the FED itself is lately buying basically almost 100% of the Treasuries offered during the last auctions? This is no joke! This is pure monetization (Quantitative Easing). Once again, another sign of being on the way to the graveyard. In this post you find a link to an excellent analysis from Sprott Asset Management which explains in an excellent way how the FED is buying the Treasuries. I only like to add that the purchases of the Primary Dealers, which still are counted as Foreign Central Banks buying, is in fact bought by the FED as well. The FED bought these Treasuries from the Primary dealers a couple of days after each auction. Why? Well because the Primary Dealers had to buy the Treasuries in order to keep their status. However unlike in the past, they were not able to sell the “junk” they bought to the Central Banks because there was no demand from their side. Therefore in order to hide this fact from the public the FED bought the Treasuries from the Primary Dealers. So if you go through the analysis from Sprott, keep that in mind. Keeping that fact in mind it really seems like the FED actually is buying almost all offered Treasuries. Nobody really wants to buy Treasuries anymore. This fact is no secret anymore. So what shall we expect? Maybe higher yields don’t you believe so?

Derivatives: Don’t be surprised in case you hear about major accidents in 2010 because counterparties will not and cannot comply with their part of the contracts. The quadrillion of outstanding derivatives is simply a situation that is not sustainable. To me it seems like thousands of market participants being packed in a small room with only one exit. In the middle of the room is an elephant that does not move yet. However once this elephant moves everybody wants to get out of the room at the same time but there is only a small tiny exit door. What do you think will happen?

Government defaults: Government defaults is a fact we will have to get used to in 2010. I am not talking about some countries like Dubai, Greece or Banana Republics. I am talking about countries like the US, France, UK, Spain, Italy and others. Talking about Banana Republics, do be honest some of the latter do seem more Banana Republic than the countries that some brand as Banana Republics.

FED: The biggest Ponzi scheme ever, called FED, a privately owned bank (yes that is correct, if you don’t believe it, check the internet and you certainly will find information about the real owners or maybe you read the book “The creature from Jekyll Island”) will fail. Will it be in 2010 or maybe later? Well it is without doubt difficult to foresee exactly when it will happen but that it will happen, to me seems to be a sure thing.

Food: Food has not been in the spotlight in 2009 but most probably will be in the spotlight again in 2010. World population is growing and food production is decreasing. The trend is clear. Weather conditions were not really favorable in 2009. The impact of these adverse weather conditions will be felt in 2010 in the form of shortages. Therefore, as mentioned a couple of times, I do recommend to hold a stock of food covering the need of at least 6 months. Food prices most probably will be higher soon anyway. Therefore buying now, will safe you a couple of bucks. Buy now, don’t wait. If something happens the supermarkets and shops will be empty in hours not days. You don’t want to be in the masses fighting for food and water. Once again, I do truly hope that it will not happen. If it does not happen you still can use your food later.

Free energy: Free energy does exist. There have been many inventions using free energy. Why can we not use these inventions yet? Who are those who have no interest at all that we use free energy? Yes exactly those. What are they doing in order to avoid that we move from traditional energy to free energy? If you google free energy you will find a lot of information about free energy and you could as well find the stories of the tactics used by those who want to avoid the usage of free energy. So what does free energy has to do with 2010. Well if the financial system really changes and the power groups that so far controlled the financial system will change too, we will have a fair chance to hear more about free energy in 2010. This is without doubt positive news unless you are a producer of traditional energy.

Well it seems like 2010 will be a very interesting year indeed. Many of my comments above might not sound very motivating but don’t forget that not all is bad. There are many opportunities out there. Some folks will take advantage of these opportunities. Let’s try to be amongst them. Furthermore we can hope that some of those that know what is coming have enough time to organize a system change that will not be dramatic. Within the big 3 power groups there seems to be one that is trying to avoid chaos and the good news is that it seems that this power group is getting more and more influence. Although we most probably will have to face a change of the financial system we might only see and feel considerable disorder but maybe not a total chaos and brake down.



Following another forecast.
James Turks forecast for 2010
He believes that gold could hit USD 2,000 and silver a price of USD 44
http://www.fgmr.com/january-2-2010-outlook-for-2010.html


Now let’s go to the news overview


Economy

We're Screwed!
ShadowStats.com founder John Williams explains the risk of hyperinflation. Worst-case scenario? Rioting in the streets and devolution to a bartering system.
Do you believe everything the government tells you? Economist and statistician John Williams sure doesn't. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government's economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.
http://www.fairfieldweekly.com/article.cfm?aid=16014




Cash-strapped US running out of unemployment money
Twenty-five US states are running out of federal funds to pay unemployment benefits to jobless Americans.

According to The Washington Post, currently 25 states have been forced to borrow USD 25 billion from the federal government to keep their unemployed a float.

The Department of Labor estimates that by 2011 some 40 states will have run out of employment money and will be in need of borrowing USD 90 billion from the federal government
http://www.presstv.ir/detail.aspx?id=114769§ionid=3510203


Food stamps
In my last post I mentioned that every eighth American receives food stamps. This information is correct although incredible. Interesting and this as an additional piece of information, is the trend. The number of 37 million Americans receiving food stamps is up from 30 million 6 months ago. It seems like this trend is increasing rapidly and certainly shows that the economic recovery in the US is just a media hype.

James Turk: Hyperinflation Watch
Contrary to common belief, hyperinflation does not arise from too much bank lending. The sole cause of hyperinflation is always too much government spending
http://www.fgmr.com/december-23-2009-what-causes-hyperinflation.html


James Turk: Will Sovereign Debt Defaults Bring the End of Socialism?
Socialism has come to mean many different things to many people, but regardless how it is defined, in the months immediately ahead it will be put to a rigorous test. The test will be visible to everyone as countries around the globe run out of money and confront overwhelming debts that cannot be repaid as well as other wide-ranging financial promises that can no longer be met. In short, the ideological bankruptcy of socialism will be laid bare by government insolvency.
http://www.fgmr.com/will-sovereign-debt-defaults-bring-the-end-of-socialism.html


Gold

Although we have seen a minor correction over the past days, the price of one ounce of gold compared to USD still has gone up 24.9% in 2009 which in my opinion is not that bad at all. My guess is that the uptrend will reassume in January 2010.

Gold Hit with a Bear Raid Yesterday - Memories of Citi's Eurobond Manipulation
If the longs had been exiting the market, the open interest would have declined.

These big plunges in price look to be driven by short selling, with weak hands being driven out, and then short covering or determined buyers stepping back in to maintain the overall number of contracts at a relatively steady level.

Recall the case in the Euro bond market, wherein Citi came in and sold an enormous volume precipitously, running the stops and driving the price down sharply. The Citi trader came back in and covered his shorts, pocketing the difference in his market disruption based on size. Citi Fined for Euro Bond Trades By British Regulator; Italy Indicts Citi Traders; Citi Haunted by Dr. Evil Trades in Europe;

The Citi traders were incredulous, because that is how they would do things in the States, running the stops and using outsized positions to perform short term price manipulation. It has become quite notorious around key market events, such as option expiration. It is so prevalent that it has its own momentum among traders.....



Following a must read about gold ETF’s holding paper (GLD)
The Fractional Reserve Aspects of Gold ETFs
According to ShortSqueeze.com, 21.6 million shares of GLD have been sold short. This means that 2.1 million ounces of gold are double-owned.
So even if all the gold supposedly backing each share of GLD is properly accounted and really exists, to the extent that GLD is sold short, it is a fractional reserve scheme. It is therefore paper-gold, not real gold. GLD is a financial asset; it is not a tangible asset.
http://www.fgmr.com/fractional-reserve-aspects-of-gold-etfs.html

Eric deCarbonel with an excellent Gold market analysis
Gold is becoming money once again. The market for the standard gold one-ounce coin is no longer fragmented. Both the ugliest and the most beautiful gold coins are traded strictly by the quantity and quality of metal content, disregarding the outward appearance of the coin. Even Indian gold buyers, who, for years, considered buying jewellery to be the best investment option, are shifting from buying gold jewellery to gold coins.
http://www.marketskeptics.com/2009/10/gold-market-reaching-breaking-point.html

Grandich
http://grandich.agoracom.com/2009/12/gold-alert-1001000-may-the-riskreward-be-with-you/has never explained

John Embry:
Gold bull has many years and thousands of dollars to go
http://www.sprott.com/Docs/InvestorsDigest/2009/12_24_2009%20Gold%20bull%20has%20many%20years,%20thousands%20of%20dollars%20to%20go.pdf





Banks and Banksters





The housing crisis was a brutal reminder of what too much of anything can do to an economy. In this case it was too much easy money and the one real solution would have been to write off debt. Instead the administration chose to take some of the bad debt and put it into the Fed balance sheet at face value and change the accounting rules, so the rest of the bad debt remaining on bank balance sheets could reflect some fictional inflated value. In short, the administration simply legalized the abuses and threw a pile of fiat currency on top of it.

Former Managing Director of Goldman Sachs: Accounting Fraud of the Too Big to Fails May Be Worse Than Enron
former managing director of Goldman Sachs and head of the international analytics group at Bear Stearns in London - is saying the same thing that financial bloggers have been saying: The giant banks are manipulating their books to make themselves look profitable.

opinion
Indeed, financial writers (like Reggie Middleton, Mike Shedlock, Tyler Durden, Karl Denninger and others) who have dug deep and analyzed the underlying data say that the giant banks are totally insolvent. This wouldn't be the first time that the biggest banks went bust and then covered it up over a period of many years.
http://www.washingtonsblog.com/2009/12/former-managing-director-of-goldman.html


The following information does certainly not come as a surprise
Banks with political ties got bailouts, study shows
U.S. banks that spent more money on lobbying were more likely to get government bailout money, according to a study released
http://www.reuters.com/article/idCNN2124009320091221?rpc=44

The Wall Street Journal Finally Catches Up On Its "Jonathan Weil" Reading
Two months ago Bloomberg's Jonathan Weil brought up the very relevant topic of fair value divergences on bank balance sheets courtesy of SFAS 107 and lax accounting firm standards (some more lax than others). Zero Hedge immediately followed up on this theme and presented a comparative analysis of various bank asset shortfalls, speculating that certain accounting firms are doing their best to do an Arthur Andersen redux for Generation Bailout. On October 15 we said: "Just what about the economic environment has given Citi auditors KPMG the flawed idea that the bank's loan can be easily offloaded with virtually no discount? And just how much managerial whispering has gone into this particular decision. If one assumes a comparable deterioration for the Citi loan book as for the other big 4 firms, and extrapolates the 2.8% getting worse by the average 1.5% decline, one would end up with a 4.2% Book-to-FV deterioration. On $602 billion of loan at Q2, this implies a major $25 billion haircut. Yet this much more realistic number is completely ignored courtesy of some very flexible interpretation of fair value accounting rules at KPMG
http://www.zerohedge.com/article/wall-street-journal-finally-catches-its-jonathan-weil-reading


Equity

After hour manipulation
Anyone looking at their 401(k) portfolio performance since the end of August will undoubtedly be very happy (and extremely surprised), as the market has climbed steadily higher despite i) increasingly declining trading volume and ii) consistent and material withdrawals from domestic equity mutual funds. Furthermore, if anyone was merely looking at the trading action in regular hours, one would think there was absolutely no profit made since early September. The reason for that: all the upside since September 14th has come exclusively from after hours action
http://www.zerohedge.com/article/three-month-flat-market-yesif-you-exclude-constant-after-hours-manipulation


USD




The following information is from a person who claims to have received important information from whistleblowers and having seer capabilities

China quietly introduces new financial system

China has stealthily introduced a new financial system based on the renminbi, which is well on its way to becoming fully convertible -- according to a high-level Chinese source.

In addition, China is purchasing 10,000 tons of gold to back up the
The fund will be based outside of China, and will be controlled by prominent members of the Chinese overseas community.

The gold purchase will take some time because of the logistics of transporting it -- and the Chinese wish to test it thoroughly. The Chinese government now confirm reports that much of the gold sold by the Federal Reserve Board over the past decade is in fact gold-plated tungsten.

For its part, the renminbi is now convertible with South American currencies, the rouble, Middle-Eastern currencies, the yen, South East Asian currencies and African currencies.

“We will slowly introduce our new financial system in parallel with the old one and hope that people steadily migrate towards it,” the Chinese official says.

Meanwhile, the latest G20 meeting ended in acrimony and chaos.

The leadership of the West is in total disarray, and will remain so until the Federal Reserve Board’s bankruptcy becomes visible even to the most brainwashed section of the Western public.

This is now expected by January or February.

A senior Chinese government source now predicts the collapse of the Federal Reserve dollar by that time.


Bonds

Looks like 2010 will be a difficult year. Why? Because the federal deficits are running into the trillions of dollars. The roll-over of debt coming up in the next two years defies comprehension. For instance, in the next two years the US must roll over $2.5 trillion. Worldwide, banks during the coming two years will have to roll over $7 trillion. On top of that commercial real estate in the US has $750 billion to roll over. Whether all this debt can be successfully rolled over is doubtful. What seems to be clear is that interest rates will go up.

Eric Sprott from Sprott Asset Management
Is it all just a Ponzi scheme?
http://www.zerohedge.com/sites/default/files/Sprott%20December.pdf


Derivatives

Harvard Swaps Are So Toxic Even Summers Won’t Explain
a bond attorney at one of Boston’s oldest law firms, on Oct. 31 last year relayed an urgent message from Harvard University, her client and alma mater, to the head of a Massachusetts state agency that sells bonds. The oldest and richest academic institution in America needed help getting a loan right away
http://www.bloomberg.com/apps/news?pid=20601109&sid=abvB2xzkNEyI&pos=10
(interesting to see who was involved in approving the deal. More interesting is to see that there are still folks who trust this guy who has screwed up in many places now. My question is what group is he working for? What is the agenda he has to follow in order to keep his masters happy? This agenda seems to me like trouble for the underlings)



Derivatives Casino
The derivative casino will be bankrupt.
Derivatives are essentially bets (about future value of commodities, currencies, bonds, etc). Like gambling at casinos, to make money in derivative markets requires meeting two conditions:

1) Being on the winning side of the bet.

2) Being able to collect on the bet.


The point here is that it doesn't matter how many chips are won if the casino goes bankrupt before they can be traded in.


There is about $14 Trillion collateral behind listed/OTC derivative markets, and this collateral is invested in short term dollar-denominated debt. As the dollar and credit markets collapse, this collateral will lose all value (the equivalent of a casino going bankrupt). Investors trying to collect on profitable bets (ie: call options on gold) will find their derivative contracts backed by insolvent counterparties and worthless debt.


Structured products

Please be careful with investing in structured products. Holding a structured product you have to bear the full counterparty risk of the issuer. Those banks that issue these products are far away from being safe. I do not see any reason to take such high counterparty risks if you can buy the underlying investment directly. Once again, I’d like to stress that these banks are far away from being safe. Holding a structured product you bet on a counterparty that is in trouble. What seems to make many structured products interesting is an apparently higher interest or yield. Careful, this means that a kind of derivative is used. With the derivative you not only have to bear the counterparty risk but as well the risks of a bubble market.


Global Warming or Climagate

Well dear reader those of you who know me know that I am absolutely in favor of protecting our environment. That I am shocked at the way we, the people, treat our mother earth. That I truly believe that the way we destroy our environment has to be stopped immediately. On the other hand I am as well a person who loves the truth and therefore I do not like the games played by so many untruthful parties. I am absolutely of the opinion that we do destroy our environment and that it is high time to stop this behavior. But I must say, although many of you might not believe it, Global warming is a hoax. Yes it is. The statistics, as always, are managed in a way to give some the opportunity to makes some profits. Some hackers were able to get into the official data on global warming or with other words the statistics on temperatures. What they found out recently was made public but as the press is managed, controlled by those who have a special agenda, the facts that these hackers found out was of course not published. The truth is that there is NO global warming. (http://www.youtube.com/watch?v=lgIEQqLokL8) Yes glaciers are shrinking but history shows that there were many phases where that happened before and that was not due to us, the people influencing these shrinking. Of course I would love and do like measures to reduce toxic waste, air pollution and so on but again and although clean air is to our benefit, the air pollution is not the causing effect of a global warming that is not happening. Al Gore who is traveling around the world to save our world is doing it for economical reasons. I certainly never have and never will trust this guy. Once again, global warming is not happening, it is a lie. In fact average temperatures worldwide are going down. Maybe now many of you will say, oh yes in fact over the past years winters were colder. In the places where snow falls you might just now think “yes the past 3 years we had a lot more snow than before”. Well dear reader world temperatures depend more on the sun activity than on us and the sun activity over the past months has been below average and that is a reason why average temperatures are lower. If there is no real global warming then why this hype about global warming. Why do we have so many important people tell us that we have to do something. For some it is simply to be on board of a wave and make money with it (Al Gore) It is business, another way to make money and nothing else. As I write constantly about banksters, guess who has a huge interest in this particular business? It is THE financial institution that is always present when there is a chance to manipulate markets or governments or whatever else, as long as it is to their benefit.

Following some more information about Climagate
Glenn Beck of FoxNews speaks out exposing ClimateGate, the man-made global warming climate scam that is fast becoming a proven conspiracy in partial view. The major media in no way exposes the truth on this story, as only the internet news sources do. See his YouTube video (http://www.youtube.com/watch?v=DNbxYVa2VjA). The climate change scandal deepens as a British Broadcast Corp expert claims he was sent leaked emails of a seriously undermines the political movement and its integrity. See his Daily Mail article (http://www.dailymail.co.uk/news/article-1230943/Climate-change-scandal-BBC-expert-sent-cover-emails-month-public.html). Some overlap might exist, but Alex Jones paints the billboard in his unique style concerning the same emails that expose the scam. In his words, he says "THE E-MAILS ARE REAL!!!" Some hackers hacked into a United Nations database where the main climate global warming analysts and proponents email each other. They discussed how to suppress the truth that the earth is cooling. Jones regards this to be a major scandal exposing the One World Order plan. See the YouTube video (http://www.youtube.com/watch?v=Yis2loKSLFY). The UK Guardian runs with the same story, and puts its own imprint on it, like a seal of approval toward the legitimacy of the story itself in exposing the fraud. Global warming is rigged too? They wrote, "the damning email that confirms that the entire science of global warming is indeed a scam." See the UK Guardian article (http://www.guardian.co.uk/commentisfree/cif-green/2009/nov/23/global-warming-leaked-email-climate-scientists).



Following a comment found on www.lemetropolecafe.com
quote
The connection between not only GS and this pending legislation, as Matt Taibbi has pointed out in Rolling Stone, but that of Al Gore, who is supposedly trying to save the world, purely from his philanthropic posture, is ably pointed out by Sandy Franks of Taipan Publishing today:
"**Cap and trade could move to Wall Street. If the bill passes the Senate, Wall Street will be celebrating. Political analysts suspect amendments to the bill could create investment vehicles similar to credit default swaps.
In fact, in a recent Rolling Stone article, staff writer Matt Taibbi argues that one of the main beneficiaries would be none other than Goldman Sachs. Matt writes, "The new game in town, the next bubble, is in carbon credits – a booming trillion dollar market that barely even exists yet, but will if the Democratic Party that Goldman gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an ‘environmental plan,’ called cap-and-trade."
An article in Newsweek suggests the U.S. cap-and-trade market "could balloon to anywhere from $300 billion to $1 trillion."
Basically, if a company or an industry emits more than the allowed amount of carbon set by the government, it must "trade" and or buy permission from someone else that produces less carbon.
**Another bubble in the making? Exchanges have been set up to handle these transactions, such as the Chicago Climate Exchange (CCX). The CCX bills itself as "North America's only cap -and trade system for all six greenhouse gases, with global affiliates and projects worldwide."
The exchanges would make money on the transactions, but so would major Wall Street institutions, such as Goldman Sachs. What would happen is that companies like Goldman Sachs will create derivatives and options markets from the cap-and-trade permits.
There’s no doubt they know how to make money out of thin air. Look what happened with the mortgage-backed securities. All of a sudden they became one of the biggest moneymakers on Wall Street. And just as suddenly, yet more violently, they became Wall Street’s downfall.
**Al Gore and Goldman Sachs. Of course, this is all conjecture. The bill has to pass the Senate for cap-and-trade emissions to become the next asset bubble on Wall Street. But then again, consider one of the bill’s biggest backers: Al Gore.
Al Gore is an investor in the venture capital group Kleiner Perkins Caufield & Byers. The firm has invested about $1 billion in 40 companies that would benefit from the proposed cap-and-trade legislation.
Gore is also co-founder of Generation Investment Management, which sells carbon offsets. The other founder is former Goldman Sachs partner David Blood. See the connection here?"
The "do gooder" image of Mr. Gore appears a little sooty.
Unquote
http://www.fourwinds10.com/siterun_data/education/public/news.php?q=1260901976


Food : A must read



Eric deCarbonel: 2010 Food crisis for dummies
If you read any economic, financial, or political analysis for 2010 that doesn’t mention the food shortage looming next year, throw it in the trash, as it is worthless. There is overwhelming, undeniable evidence that the world will run out of food next year. When this happens, the resulting triple digit food inflation will lead panicking central banks around the world to dump their foreign reserves to appreciate their currencies and lower the cost of food imports, causing the collapse of the dollar, the treasury market, derivative markets, and the global financial system. The US will experience economic disintegration.
http://www.marketskeptics.com/2009/12/2010-food-crisis-for-dummies.html

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