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Monday, 17 September 2012

The Economy of the States of Jersey is in dire peril

It is once more my moral duty to report the truth about Jersey's economic situation in the face of a week long propaganda barrage by the States of Jersey and the JEP.
On the 14th September the JEP reported the following:
STATES finances are doing better than expected, with spending slightly down and income slightly up on forecasts. 
Figures released in the run-up to November’s debate on tax and spending plans for the next three years show that the States are performing well, with spending £8.2 million under budget and taxes £13.5 million over the forecast.
Firstly it should be noted that 'spending' only counts for those amounts required from the treasury department, it makes not account of the increase in the various fees charged by departments, such as Planning Fees, Social Rentals etc. - any increase in these is actually a 'saving' in government parlance.
Secondly, in every annual budget there is a line of expenditure termed 'contingency' this is 'planned spending' to cover unforeseen circumstances, this line on the budget is the source of these now annual 'under-spends'. In each and every year some of the 'contingency' is actually used which is in fact spending over-budget.
Thirdly, one must assess whether the initial forecasts were realistic, or whether they were prepared solely in order for the JEP to be able to report the above. In fact this compares unfavourably to previous years where we have been as much as £56 million better off than forecast (co-incidientally the year BEFORE GST was introduced, but after it had been sent to the Queen for assent. A cynical man might suggest that the forecast had been doctored specifically to give a reason to introduce GST to Jersey).
Finally we should examine not the actual amount of money spent, but what benefit the public has enjoyed from the expenditure of this money. 
The island seems to be worse now than it was the year before with poor road maintenance, inadequate health services, less than inflation increases in pensions and social benefits - so where has the increased expenditure gone to? Perhaps the appointment of several new 'directors' in the department of health and to the soon to be corporatised harbours and airports explains it.
This report does not of course deal with the growing problem of declining returns on the social security fund, which was already due to run out by 2030 and its lifespan is shortening all the the time.
Departments are asking for most of the unspent money to be carried forward to next year’s budgets, because it relates to projects or spending which have been delayed.
This of course means that much of the money which was intended to be spent will still be spent but just next year instead of this.
This morning’s figures have been welcomed by Treasury Minister Philip Ozouf, who said that the new report should give the public confidence in the state of public finances.
The report should give no one any confidence whatsoever in the state of the finances of the 'Island of Jersey and its Dependencies', the contraction in income has now got to such a level that the 'safety zone' or 'contingency' is now having to be utilised just to prevent everyone from realising that things are spinning out of control.
Two other stories were buried in the later pages of the paper this week (and not reprinted on the website), firstly that Retail Sales slumped 7% in the second quarter of 2012. Bear in mind that commodity inflation is running at around 20%, with food inflation running far higher and this should lead you to conclude that profitability of these businesses is being squeezed which will have the effect of increasing unemployment and decreasing tax revenues.
The Velocity of Money (the amount of times that the same money is exchanged in a time period) is falling indicating a decline in confidence in the future as people try to hold onto their wealth.
The only good thing is that this does not mean that everyone has yet reached the realisation that the value of money is falling so fast that they will buy anything in order to exchange their cash for physical assets... this will be almost the final sign of the financial apocalypse we are steaming towards.
The Second Story was that BANKING DEPOSITS AND ASSETS UNDER MANAGEMENT IN JERSEY FELL significantly, now bear in mind that the amount of money in the world has increased by 200% in the past four years (and if Jersey was doing well it would have received at least its equal share of these) and it is clear to see that Jersey is falling out of favour as a jurisdiction in which to park your wealth. The over-regulation and strangulation by government continues apace. The foreign minister is failing to win new business for Jersey and Jersey Finance is just not doing a good job, one might wonder why either exists.

Thursday, 13 September 2012

Max Keiser on Jersey with guest Leah McGrath Goodman

Well we have finally made it onto the Max Keiser show...

In this episode, Max Keiser and Stacy Herbert discuss the Paul Bunyan banks, which are too big to be true and all flow, no assets. They also discuss the Bermuda Triangle of Fraud and the London disease. In the second half of the show, Max Keiser talks to investigative journalist and author, Leah McGrath Goodman about her being banned from the UK for reporting on the Jersey sex and murder scandal. They discuss the $5 billion per square mile in laundered money that means Jersey rises, while Switzerland sinks.

Monday, 10 September 2012

The week ahead and the week just gone

In the coming week the German Constitutional Court will sit to decide if the ESM is compliant with the German constitution and polls show that 54% of Germans are hoping that it is not.
A no vote would severely cripple the European "make it up as you go along" bailout and leave Europe's peripheral nations with little recourse, and Spain with even less cash as it faces a wall of bond maturities in both October and 2013. (Zero Hedge).
Whilst the Wall Street Journal is reporting that 76% of Greeks believe the country is heading in the wrong direction, while 86% aren't satisfied with the coalition government's performance. The Golden Dawn, which was elected to the parliament for the first time during the last elections, would receive 12% of ballots and move up from being the fifth-largest to the third largest party.

China holds more gold than any other nation in the world, except the United States (and that is only what the US government tells you) and is well on the way to being afforded GLOBAL RESERVE CURRENCY status, it has imported 458 tons from Hong Kong so far this year which compares to the ECB's total holding of 501 tons. China last announced its gold holding in April 2009 at 1054 tons and previous reports have set a target of 10,000 tons by 2019.

Finally, Al Jazeera reports on the likely effects of this year's drought and the failure of the corn harvest.

Sunday, 9 September 2012

Remember, Remember the 6th November

Remember, Remember,
the 6th November.
I see no reason,
the government treason,
should ever be forgot.

I am often ask why I concentrate on the US, when it has nothing to do with Jersey. Well you could not be more wrong. The City of London is the unregulated 'offshore' finance centre for the United States and all the UK's wealth comes from the frauds and dodgy dealings that the large US companies don't want to do in their own backyard.

The UK is economically dependent on the US, Jersey is economically dependent on the UK. At times of direst need it would be a fool who would not expect the US to start to choke the UK and in turn for the UK to start to choke Jersey... it has already happened - no de minimus relief on imports from Jersey and expect more pressure to come on Jersey's financial services.

This will not affect the financial corporations of course as they will simply move away, but that would not be good for a bankrupt States of Jersey.

Yes the STATES OF JERSEY ARE BANKRUPT, they are unable to meet all their future liabilities, just like every other nation with a welfare state.

The US presidential election is looming on the 6th November this year and the desperate attempts of the Western elite to maintain the charade of economic stability is beginning to crack.

They are desperate to keep the ship steady so that the dimwits in the United States don't discover just how bad their future is likely to be.

The Hippocratic Oath dictates never to do harm to the patient. The central bankers instead take the Hypocritical Oath that dictates to cripple the patient, to drain the blood, to preserve power by tightening the straps, to erode buying power from hard work, and to render life savings a weak shell, while whispering lies in the ears on blame for what went badly wrong, against the background din of endorsed war themes.

The effectiveness of the latter oath is seen in the systemic failure of the USEconomy, whose financial and economic structure has been destroyed by bad economic policy, the poor paper financial foundation from the monetary system, corrupt bond market practices marred by $trillion frauds, and a marriage between the state and sanctioned large corporations whose only efficiency is seen in dark corners protected by criminal impunity.

The Fascist Business Model showed itself in bold terms in the 1990 decade, in the strengthened links between state and major corporations, where inefficiency, favoritism, and corruption produce the bitter fruit of a sclerotic financial structure and weakened body economic.

The Jackson Hole conference was another gathering of losers, stuck in apologist mode to explain their vast ongoing enduring failure.

This year, after two years of the drastic treatment reliant upon bond monetization (Quantitative Easing), the display revealed more vividly than in the past the gaggle of losers gone fishing. The Bernanke speech said nothing of substance, nothing. He is out of ideas, out of tools, out of credibility, holding a ruined balance sheet which will not be restored. The latest Bernanke stupidism is the continued bond monetization until a certain threshold of economic growth (GDP) is reached.

These loser bankers do not even attempt legitimate solutions, choosing instead their usual fare to work toward power preservation whose schemes are marred by yet more paper mache covering of toxic sores.

The financial markets look to clues on QE when it never ended, and thus its participants appear truly clueless. They appeal beseechingly like emaciated hound dogs seeking small food scraps from the fat bankers who never miss a $200 lunch, the tab always paid by the starving serfs and vassals that peer through the windows.

Even EuroCB chief witch doctor Draghi decided not to attend the conference, perhaps unwilling to be tarnished by a broad inept banker brush, or to find himself impaled by a fishing hook.

The banker losers will continue to ply their trade, to print more money and avoid the Gold Standard. They will find ways to justify more propping of the giant insolvent banks, whose business model has been wrecked, whose balance sheets have been wrecked, whose executives live large despite the wreckage.

The dangerous dastardly desperate concoctions with hidden derivative platforms and cables erected by the big banks in the 1990 and 2000 decades bought them more time, but did not avert the mutually assured destruction.

The central bankers have no solutions.


Discussion of growth targets has turned absurd, since the recession is accelerating in speed. Discussion of bond buying shell game specifics has turned absurd, since the USFed has been buyer of over 80% of USGovt debt since 2010 during a foreign buyer strike.

Discussion of inflation considerations and the ordinary deceptions has turned absurd, since the CPI has been over 7% or 8% for years on end. Discussion of the stimulative effects of 0% has turned absurd, since it is a giant wet blanket that shrinks profits and kills capital through retirement of equipment in unprofitable business enterprise.

Current monetary policy assures a greater and faster economic decline, where GDP minimum limits will not be reached. Discussion of the benefits of more printed money has turned absurd, as the nation slowly becomes wise to the sham and counterfeit to wealth. If dispensed money is not earned, the hangover arrives the next year or next decade, whose tab is due now.

Discussion of the urgently needed spending restrictions imposed upon the USCongress has turned absurd, since they are deadlocked and should be disbanded as an ineffective temple of beggars to banks and industry, whose main function has been to raise funds and win the next election.

Discussion that relies upon keywords laced throughout commentary has turned absurd, since the entire vocabulary has suffered from propaganda in a vast dumbing down of the American people.

The national hive is in its sunset and twilight phase, long past the point of remedy, due to two decades of ransacking the asset base and capital base. The nation no longer comprehends the basic concepts of capitalism. Instead it embraces socialism and carries out fascism against a constant drumbeat of war, which even features appearances of military symbols at signature sporting events.

The Euro Central Bank has announced its own vapid stupid pointless monetary policy to enforce a cap on sovereign bonds. The absurdity runs parallel with the inept US counterpart. The USFed will buy bonds until an economic growth level is attained, never to be attained. The EuroCB will buy bonds to prevent the sovereign bond yields from reaching a dangerous level, which will always be pressured. No bond market can claim legitimacy when an imposed limit is enforced on bond yields. Harken back to the USFed buying TIPS bonds, like icing down the thermometer that measures fever levels.

The failure is stark and clear. Monetary policy has gone amok. They have no solutions, so they press harder in the same reckless direction.

What the world is witnessing is the official institutionalized ruin of sovereign bond markets in the United States and Europe, which serve as foundations for the USDollar and Euro currencies.Both currencies are doomed to the dustbin of history, all in time. Central bankers have lost all credibility, cornered without options in a public way. Central banker appear writhing flailing wiggling as they apologize for lack of solutions, while their integrity vanishes like an oily mist off an overused printing press. Central banks are presiding over wrecked bond markets, wrecked currency markets, and a divergence gold market (paper versus physical). They are at the helm of giant vessels, which are sinking from their own ordered liquidity measures, taking on water, unable to negotiate around icebergs.


No solutions are being pursued by the central bankers, their partners at the giant banks, and their subordinate henchmen that occupy key government posts. The path to remedy is not complicated. Liquidations must provide the foundation of solutions, not amplified liquidity. The broken structures cannot be puffed up. Rather they must be dissolved, something abhorrent to the ruling elite. No viable solutions are being pursued, only preservation of the power structure at all costs. Any valid meaningful legitimate remedy must begin with six important planks. My Jackass planks are simple. Nobody can deny a constructive theme to my harshly critical analysis. None of the six planks will be introduced, since all interfere, even collide, with the priorities of the syndicate. No options remain except valid solutions, which are becoming obvious:
  • liquidate the big US banks
  • liquidate the US housing market
  • return factories to US shores
  • reform the tax structure to lower corporate tax and to encourage factory return
  • end the wars to secure oil and narcotics supply
  • re-impose the Gold Standard.
They must liquidate the big banks, since they are insolvent entities that cannot function as either credit engines to the economy nor capital investment nurseries in which to nurture new formation of businesses. The big banks are vast constructions configured to speculate like casinos, loaded with structural cable lines long ago broken, designed to support the system, to compensate for past errors, and to cover their giant cracks and holes in supporting platforms.

 The big banks would never be liquidated, since they control the power of the USGovt, especially after the key events in September 2001 when the control levers changed hands more formally to Wall Street firms. Leaders rarely ever relinquish power, especially when the corruption is deeply engrained. The entire liquidation process would let go of power in obvious ways, but it would also open the door for revelations of past criminal activity whose prosecution could not be prevented or controlled.

The keys to the tainted kingdom remain part and parcel in the form of control of the USDollar printing press and USTreasury Bond complex. The breakdown of the Bretton Woods Gold Accord had a motive, to create new independent control of the USDollar printing press. It was coveted. It has been exploited. It will be preserved and defended at all costs, even if with wider war.

They must liquidate the housing inventory, both held by the big banks and by Fannie Mae vat under the USGovt aegis. No market ever recovers without clearing the inventory in an orderly process. This required step cannot be done either. The obvious outcome would be a housing market where home prices would plunge to 30% to 40% lower.

The crippling effect to the USEconomy could set off a chain reaction where even lower prices could arrive, far below construction prices, long thought to serve as price floor.

See Nevada and other locations, where home prices have been 25% to 35% below construction prices for over two years, in order to smash that thin veneer masquerading as theory. A relentless flood of inventory directed by the big banks would result in a yearlong nightmare. Their REO inventory of unsold homes seized by foreclosure is much larger than widely regarded or estimated, like 8 to 10 million homes. They use Fannie Mae, Freddie Mac, and the entire Federal Housing Admin channels to conceal the size of the problem.

A much bigger motive obstructs the liquidation, a deep criminality lodged in Fannie Mae itself. It has served for 20 years as the clearing house for federal fraud rings, often called the Role Programs. Not the least of criminal deeds was the theft from Fannie funds by presidents between 1988 and 2000 to the tune of $1.5 trillion, well documented by Catherine Fitts as auditor.

Many records were lost in Oklahoma City during another mysterious event. Her work resulted in banishment and attempted murders via arsenic poison. She still kicks sand, but in more subtle manner. The liquidation of the housing market would expose a much broader fraud streak in the mortgage bonds, where bond fraud and counterfeit worked side by side. The practice of using one home's income stream from monthly payments in multiple bonds securitized to that stream would be exposed.

The MERS title database has already been exposed in prima facie, but its deeper exposure would show the titles devoted to multiple mortgage bonds in obvious ways not desired by the bankers who designed the clever tool for speed and fraud efficiency. The Powers in office do not want a full disclosure of the vast Fannie Mae corruption that laces across two dozen federal offices and agencies.

The Powers do not wish to expose much worse mortgage bond fraud, which might tempt millions of home owners to stop making monthly payments altogether. The Gold price responds to the refusal to liquidate the housing market and the horrendous effects imposed on the USEconomy from an archipelago of shell households impaired to participate. The long enduring consumerism chapter is coming to an end finally, as the home ATM card has been taken away.

They must bring back US factories from Asia. From the 1980 decade to a climax in the 2000 decade, the factories went eastward to find roots in Asia, all across Asia from Korea and Japan to Taiwan to Hong Kong to Singapore to Malaysia to Thailand, then lastly to China.

The motive was simple, the lower cost labor, but also to avoid the union pressures on cost. The underlying factors are less simple. The trend of outsourcing industry to Asia stands as the most serious and lethal factor in the degradation of the USEconomy, manifested in the decline in real income, the growth of debt, and the newfound dependence upon asset inflation within the entire national system. By dispatching, forfeiting, and relocating factories to Asia, the USEconomy lost its core in legitimate income.

The key to survival of any economy is that it must produce its own steel (for structures) and vehicles (for transportation). The US for two to three decades has not done either. The steel mills that have survived in small scale, given the name mini-mills. The car industry is dominated by Asia and Europe. The truck industry remains solid, although the components are often Asian and the small trucks are Asian. The point by the elder economic statesman was that industry must be domestically produced, with domestic income from production, in order for a domestic economy to flourish.

The seminal event took place in 1984 for Intel, when it announcing a move of its production facilities to the Pacific Rim. It came as a shock, when at the time the Jackass was a viable peg in a marketing research outfit at Digital Equipment Corp in Maynard Massachusetts, the site of numerous wonderful memories. The following decades saw an army of high tech firms relocate manufacturing sites in the Pacific Rim.

The offshoring and outsourcing trend continued in the 1990 decade, as almost every high tech and PC firm used Asian factories. For instance, the Apple i-Pods, i-Phones, i-Pads, and other products are manufactured for Apple by Foxconn, a Taiwan-based company. The firm's official name is Hon Hai Precision Industry Co. The Apple family of products are mostly manufactured in Shenzen China. However, Foxconn maintains factories in countries across the world including Thailand, Malaysia, the Czech Republic, South Korea, Singapore, and the Philippines. This is an American success story that does not involve value added by US workers, only US investors in the wildly successful stock. The Apple story is indicative as to the distortions within the USEconomy.

Unless and until much of the vast array of factories is returned to US shores, the USEconomy cannot recover. The nation needs the income. The experiment to rely upon the financial sector remains one of the greatest deceptions and tragedies to hit the nation. Legitimate income from work to add value in the building of things has been abandoned, except in the housing industry where it went completely insane in support of a grand destructive bubble. Imagine any sensible rational clear thinking economist in the 1960 or 1970 decade actually suggesting that the USEconomy should send its manufacturing base to Asia, then rely upon the rising prices of housing market assets for the consumption within the nation. The concept would be laughed out of any Economics Dept faculty gathering, in particular any defense of an indefensible doctoral thesis. That is what America did in a grand travesty. But it had many factors at work.

The USEconomy desperately requires the return of jobs from the factories sent to Asia. The nation clamors for job growth, but seems ignorant in an absurd display that the source of jobs is the same factories sent to China after 1999. The USEconomy urgently requires the legitimate income from industry. It is a glaring missing piece to any solution. Instead the drain of capital continues, which had its most spectacular display in the home equity extraction of funds to continue and perpetuate the consumer mentality of the nation, until the foreclosures hit critical levels. The households burned their furniture in a sense in order to keep spending, often on silly things like boats but also on essentials like education.

The Gold price responds to the refusal to return value added industry and the horrendous effects imposed on the USEconomy from an entire system grossly dependent upon bad sources of funds. It continues to extract funds from assets, whether home equity or stock accounts or pension funds or business assets, or even government handouts. In fact, those handouts have come in a hidden sinister form, from tax rebates, clunker car rebates, home purchase rebates, or other absurd inept programs.


The battle for the minds of Americans continues in perverse fashion. The central bankers realize they fight engrained problems of insolvency with tools designed to provide vast liquidity. Imagine giving a steak & potatoes dinner with a side of cherry pie and a glass of milk chaser to a man who is dying of thirst. It has not worked. It does not work. It will not work.

In their conferences, they struggle to justify the continued application of extreme liquidity treatment like utter morons, although increasingly recognized as futile. The newest wrinkle in the mad professor scheme is the continue bond purchase to reach a minimum GDP, given minimal details by Bernanke.

Perhaps his PhD degree be revoked, as he has proven in his five years as USFed Chairman that liquidity does not provide remedy to an insolvent system today, nor did it provide the basis for remedy to emerge from the Great Depression. Instead, as contradictory thesis to the vapid treatise that supports his PhD degree in revisionist history style, it was the Gold Standard that permitted emergence from the Great Depression.

The absent standard nowadays makes impossible any recovery today, since the new money is like spinning the gears in a broken locomotive that heads over the cliff. The Gold Standard would enforce traction, along with industry long ago forfeited to Asia. The nation neither has sound money nor factory income. The artificially cheap money helps business to expand their overseas operations, which has been seen.

The twisted irony of the new gambit, more like a new plank in the propaganda platform, is that the continued ZIRP monetary policy assures a continued decline in the USEconomy.

The stuck 0% interest rate attacks capital, increases costs, hurts profit margins, neglects savers, and slows economy, a grand wet blanket prescription for hyper monetary inflation as official policy in a veritable cyclone.

The immediate effect of artificially cheap money is to increase investment in commodities as a hedge from the hyper inflation policy itself. The rising cost structure reduces profit margins. The affected business segments, whether entire businesses or elements to a corporate structure, must shut down, which retires capital equipment, cuts jobs, and discontinues income streams for the company and workers alike.

Amazingly, the inept bungling maladroit collection of US economists are blind to this basic phenomenon of capital destruction. Greenspan was aware of it though. They were badly edumacated to be sure, taught by professors receiving grants and subsidies from the US Federal Reserve itself.

A vicious cycle has been institutionalized, dictated by ZIRP, the zero percent interest rate policy. The hapless clueless wayward USFed has decreed that bond monetization will continue until the USEconomy grows above some empty-headed decreed level.

This is death by decree by a myopic professor whose doctoral degree is losing stock with each passing month of no recovery. If the 0% rate assured a slow erosion of capital, then the overall economy will continue to decline in large part from the artificially low interest rate.

The effect of ZIRP is to guarantee a systemic failure if extended indefinitely, like it is now. Blame can be placed upon Europe, but in reality they are committing the same cardinal sin to price money as the United States and England.

The universal culprit is central bank policy and the 0% mantra. It does not stimulate. It smothers capital and entire economies. The tragedy is that the nation, led by its devious bankers, no longer comprehends capitalism. Or else, their power goes at odds with capitalism since it is built upon fascism.

The Gold price responds to the installation of hyper monetary inflation engines, the extreme dependence upon them, their amplified usage after previous failures in their application, and the absent comprehension of the extreme detrimental effect on capital.

As Weimar features are kept in place, the Gold price will eventually be released when the funnels of printed money spew more freely into the system. As the big banks and central banks exhaust their supply of widget plugs (short-term USTBills, commercial paper, money market funds), the flow of new money will enter the Main Street economy. That time draws near.


A Pearl Harbor event is coming. It is near. It can be smelled. To the alert and adept, it can be foreseen. Morgan Stanley has been the designated hitter on Interest Rate Swaps, taking on over 95% of the interest rate management risk by Wall Street banks.

Their role appears to have set them up to fail, another Lehman-like black hole to exploit, their failure used to consolidate the last survivors of Wall Street, and to reveal the real power centers in JPMorgan and Goldman Sachs. The great awakening for the American public, in all likelihood in Western Europe also, will be the failure of major sprawling financial firms.

Morgan Stanley will not fail alone. They will be joined, according to my best European banker source, by Deutsche Bank in Germany and by Credit Agricole in France. Expect more failures in London city.

A progression of private account vanishing acts is at work. The most vulnerable have been the futures brokerage accounts. Although private and segregated, these accounts were pilfered by MFGlobal and Peregrine Financial Group (PFG-Best).

The US Appellate court sanctioned the private account pilferage with its blessing. Despite bankruptcy law being clear that private segregated accounts are last in line for dissolution, the courts permitted the brokerage houses to be treated as big financial firms instead, the private accounts rifled and stolen, put first in line for losses. They were not segregated, as stipulated by law. The US financial laws are being violated in ripe stark fashion, more climax bitter fruit of the Fascist Business Model tree and its ghoulish gardeners.

A Pearl Harbor is event coming, deemed inexorable, which will overcome the media empty messages that lacking warning. The US public population will not awaken unless and until hundreds of thousand of private accounts are stolen.

The word RE-HYPOTHECATED has been added to the financial lexicon to replace the word STOLEN in clever style. Do not be fooled. Ordinary citizens cannot use their employer's offices and equipment as collateral in loans for second homes, children college tuition, private yachts, or swimming pools. That would be declared illegal.

A home foreclosure would result in attached re-hypothecated losses to corporate office buildings and scores of computers and network devices. The thought is absurd and lunatic. But that is what happened with MFGlobal and PFG-Best.

If Morgan Stanley has over 17 thousand brokers at work, and they have an industry average of 200 private stock accounts per broker, the result is 3.5 million private accounts. The possible vanishing act in the wake of a Morgan Stanley failure and bankruptcy could lead to over 200 thousand, or 300 thousand, or 400 thousand private accounts going missing.

You see, Wall Street needs your money.

They are broke and desperate, given license to steal private accounts. The theft progression will be seen from private futures brokerage accounts, to private stock brokerage accounts, to private bank accounts and private certificates of deposit at banks.

Credit unions will probably escape the damage, since privately administered and very conservative. Like with the progression of attacks on junk bonds, then mortgage bonds, then municipal bonds, then corporate bonds, finally sovereign government bonds, the losses appear according to ranked risks.

The vanishing of several hundred thousand private stock accounts, that include 401k and IRA and Keough accounts, will awaken the US population. It is not desired, but like next autumn's hurricane, it can be both expected and forecasted.

Bankers know they are finished, and are cutting deals to avoid prison
JPMorgan is losing control of the USTBond & Interest Rate Swap structures
Every year another $1+ trillion in greater USGovt debt, more impossible to control
Control structures are breaking down in accelerated fashion
Anti-US$ campaign is unstoppable with trade partners worldwide signing accords
An entire non-US$ system for trade is ready for installation, awaiting the collapse
Some strange unexpected curve balls are coming, like the Fall of the Saudi regime
A suspended Petro-Dollar defacto standard will cripple the USDollar
Little comprehension that financial crises began with Bretton Woods and Vietnam War
The destructive Fascist Business Model is in its final chapter, the climax
Lost concept of US Constitution and clear language of Gold & Silver
A major bank scandal is brewing, from illegal usage of Allocated Gold accounts.


All hail August and September, the months to kick precious metals into gear. The year's bottom was seen in May around the $1550/oz level. The upward movement began at end July and early August. The momentum picked up in late August, and has gained additional vigor in early September. Rumors of a weakened JPMorgan monster have yet to come to light, or be seen in the gold price from their relaxed heavy hand. No limit of naked shorting gold futures is being enforced. The criminality of the currency regime is complete, total, and profound. However, the daily chart shows some new life in a rather impressive reversal in progress. It has much more to run. The $1700 level should be breached very soon with confidence. There might be no looking back. The ruined banks, the ruined sovereign bonds, the ruinous wars, the struggles with mine output, the splendid citizen demand, it all adds up to aggravated price structures pointing to higher prices. See the daily price pattern.

The constant hyper monetary inflation applied by the USFed, the EuroCB, the Bank of England, the Bank of Japan, and the Swiss National Bank, it adds up to aggravated price structures pointing to higher prices. The cracking global trade payment system, the frequent anti-US$ workarounds, and the eventual fall of the Petro-Dollar standard, it adds up to aggravated price structures pointing to higher prices. At hand is the end of a yearlong consolidation in price. Keep foremost in the mind that no solutions are being pursued. Many are cited, but they are mere ruses in an endless charade to preserve power. The banks control the USGovt, and the privilege to control the US Printing Pre$ should never be lost sight of. Asian buyers are back, helping to build the floor in May, June, and July. Watch the current breakout, in an early phase. Tests of the $1780 level, if successful, will attract a lot of attention. The magnificent debasement and ruin of money is a committed path. As the elite preserve power, they must endure a massive upward thrust in gold. To be sure, Gold will respond, Silver also. By the time the Allocated Gold account banker scandal hits, the Gold price will have significant momentum to fly past $2000 and head to $5000. All in time.

Thursday, 6 September 2012

The Candy Man Can

OK I admit I do not have the patience for Photoshop and probably lack the requisite talents too.

The fact is that at the last election all manner of promises, good intentions and assurances were trotted out by the usual suspects. Now I am not going to say that they had any intention of lying, deceiving, manipulating or otherwise trying to gain an unfair advantage and in any case the problem is that those who vote simply are not interested in hearing anything other than that which they most want to hear.
That some one has told them that everything is going to be all right and if he does not deliver on that promise then there is always the opportunity to vote him out at the next election. But of course everything that is said is true and you need not waste time looking to your own ends, the government has it all in hand.

There has been more good news recently, it has been confirmed that:

Doctors have found a cure for death, all it will take is the expenditure of a few more million pounds and as if by magic the laws of entropy will be overcome, and if you spend a few million more we can give you a brand shiny new hospital in which you will never have to set foot.

Lawyers are NOT just interested in fleecing you of all your money whilst listening to you whine and whinge about whatever travesty has crossed your path, of course you should seek justice. When that bill lands on the mat it will all have been worthwhile and NOT just for the lawyers.

Banksters are reputable and trustworthy, they will look after your money much better than you can. They would never lie, cheat or steal. They would never sell you something that you did not need.

The government does not make the rules just so that these industries can legally steal from every man, woman and child, after all they deserve to earn more than you because they are putting your interests ahead of their own.

Guest of the Cardiff Business Development Team

Where are the fire-fighters trying to prevent Jersey
 from going up in flames? The States are acting
more like arsonists 
The economic future for Jersey is looking bleaker by the day, when the JEP has to report the 'creation' of 50 new jobs in the hospitality industry to replace the 50 jobs that the previous businesses who occupied those premises before they went bankrupt lost, you know things are bad.

AIB is going in January and taking with it over 200 REAL jobs with wages above the minimum and I find it highly unlikely that the States are going to cut the 50 MAKE-WORK jobs in various departments which the loss of the tax revenue from those workers will necessitate.

Despite the best efforts of our local hoteliers, tourism in Jersey is rapidly declining. It is not for any other reason than we have lost our unique selling point; we are no longer a low-tax jurisdiction. The idea of budget hotels is foreign to Jersey, the taxes and landing charges also act to dissuade people from coming. Not good at a time when banks and governments are squeezing every last penny they can from the people they are supposed to serve.

And so I am recently returned from a trip to Wales where I am considering re-locating a business to. The differences are quite shocking.

Cardiff is a dream of a city, centred around a massive, and I mean massive CAR PARK. I was astounded that the simple realisation that shoppers like to drive to and from the shops and park for free without having to constantly panic about being fined for overstaying their pre-paid time. The roads in and out of the centre are wide, direct and well signposted.

That is like the States building a multi-storey car park where we really need one... on the Royal Court and Royal Square.

The shopping centres back onto the main retail pedestrian area with the Victorian Arcades and Georgian Market leading onto Cardiff Castle and vast open parks. The Cardiff Bay area has recently been developed as another retail area and the space between the two retail areas is offices. Regular buses operate the road between the two areas or for those with more time to spare the water bus operates regularly between the Castle and the Bay. The City is serviced by three train stations. It is easy to get to, pleasant to shop in and easy to leave. No wonder it is growing so fast.

There were a few to let signs in the shopping streets of Cardiff but nothing like Jersey where it seems everything is up for sale or let, including at least three office blocks on the edge of the proposed six-storey tombstone to the Jersey Finance Industry planned for the Waterfront.

Wednesday, 5 September 2012

Thinking of joining the Civil Service? What you should know.

I have been imagining what I would do in the position that many of those who are employed by the States of Jersey find themselves:

  • Limited intellect and ability
  • Poorly educated by the States of Jersey
  • Narrow minded without worldly experience of life
  • Frightened of hard work
  • Offered a 'job' which pays a ridiculous amount of money whilst requiring no actual effort
  • No opportunity to fail whilst having no opportunity to succeed either
  • Content to let my life slip away without making any recognisable contribution to humanity
  • The opportunity to abuse the little authority granted to them and make others lives a misery whilst compensating for their own sense of self-worthlessness
I can see that these small people who have lived there entire lives in fear of the truth about them being discovered might find such an opportunity appealing.

The saddest part is that it is people like these who make up the majority of the Western world.

For the collective self-delusion to continue it is imperative that anyone who would dare to think or act differently be removed from sight lest they awaken some of the sheeple to the reality in which they exist.

I can accept that it is a logical decision to make for those with no ambition greater than to live, expend precious resources pointlessly and then die. Unfortunately some Civil Servants it seems want more than this, they actually want to 'do' something and this is when the problems occur.

Unfortunately they want their cake and to eat it, and what does it matter the taxpayer is footing the bill?

I have no problem with Civil Servants as long as they recognise that they are simply on better 'benefits' than the people who don't even want to have to turn up to an office and throw paper planes at each other.

If you want to succeed however, you must succeed in spite of government, no one has ever succeeded because of it.