G20: Banks must hold on to Cash for coming Crisis

The International Crime Syndicate, better known as the G20, determined at its last meeting that the collapse and consolidation of the global economy will begin around 2012 and finish in 2016 with the liquidation of all countries who are in debt with the IMF and the World Bank.

By Luis Miranda
The Real Agenda
June 29, 2010

Bankers and G20 members have direct and indirect ways to speak to the public. At the end of the latest G20 meeting in Toronto, both

From right to left: Canadian Prime Minister Stephen Harper, UK Prime Minister David Cameron and U.S. President Barack Hussein Obama.

groups spoke very clearly about what they have in mind for the foreseeable future. First, they are all in the run to help the process of global consolidation. Second, they will extend the current depression by slowly cutting the available cash for lending. Third, they will continue their austerity programs in a country by country basis to slowly kill their economies and consolidate each nation. Fourth, now that they have robbed the people’s taxes through their rescue packages, they plan to rob shareholders by putting the burden of future rescues on them when the next crisis comes. Fifth, they are disingenuous or irresponsible by thinking that putting aside 130 billion pounds will create any security for the economy, given that only the derivative schemed debt ascends into the quadrillion of dollars. And lastly, they intend to seed and water the final implosion, which according to their communique, can come as soon as 2012.

If all these sounds confusing, please let me explain.

Let’s start by remembering that the G20, and mainly the G8 were the ones who caused the current financial crisis. They did it through their front companies e.g. banks, which implemented a series of corrupt schemes to bankrupt economies and whole countries through investment and betting into risky and sometimes nonexistent financial products e.g. derivatives. These schemes were allowed to exist given the fact that for the past two decades most of the regulations put in place to stop financial fraud were eliminated as an excuse to enable “free markets”. What deregulation effectively permitted was the creation of bogus investing plans which the banks later offered to countries, states and municipalities -often times through governments- and used them to acquire all their infrastructure and cash through the issuance of debt or fraudulent investment.

It has become clear that the G8 and the bankers are not interested in improving current economic conditions. They simply want to extend the crisis as long as they need to, in order to execute their final plan of global implosion. That is what emerges from the idea of cutting lending money and asking banks to hoard the cash for the next crisis, as the G20 communique says. Although 130 billion pounds is peanuts in comparison with the debt most G8 countries hold today, the action of keeping the cash in reserve paints a clear picture of what the ‘leaders’ have in mind. What they want is a slowly and painfully grind down the economies in order to cause the greatest damage. Such policy will assure them the consolidation of more resources before the final blow to the global economy is given.

One of the most important tools the bankers have used along the last 100 years is to create an artificial bubble of money abundance -Fiat money- in order to get the countries and the public to trust them. This is what many describe as economic booms. But given the fact that the global economy is based on debt and fractional reserve banking, the only goal the money bubbles had was to hook up the greatest amount of debt on consumers to then pull the cash off the markets. By doing this, the bankers accelerate their consolidation process. Along with the reduction in lending, G8 nations agreed to continue the austerity plans in each individual country. Austerity will be implanted on the working class by cutting services such as police, hospitals, school funding, and social programs. This will in turn cause civil unrest, which is what the bankers want in order to officially freely unleash their military and technological control grid. A preview of what this grid would look like was seen on the streets of Toronto during the last G20 meeting. It was also seen during Argentina’s collapse in 2001.

The infamous rescue packages glorified by the IMF and the World Bank as the best way to avoid a complete collapse of the global economy -which as explained before was caused by the bankers themselves- were the biggest transfer of money and resources in the history of the world. Only the United States gave the bankers around $25 trillion in tax payer money so Goldman Sachs, Iberia Bank, JP Morgan Chase, Bank of America and others could pay their shareholders their chunk of the loot. See a complete list of what banks got the cash here. But those $25 trillion were not enough, of course. Germany for example, voted to give 66% of its annual revenue to the banks. Going by the G20’s communique it is clear they are planning another big collapse, possibly the last one. It is also clear they will have to rob someone else this time and that is what the bankers and the ‘leaders’ have said. They will stick the next rescue package to the banks’ shareholders -not to the big ones, though-. So if you have investments in any bank, it is advised to rescue yourself out of it before the new banking package comes along. Shamelessly, they will obligate the banks to hold billions so when the next crisis comes, taxpayers will not be burdened as if we don’t know those billions are the same they stole last 2009. Now that they consolidated and stabilized their fraudulent financial system, it won’t matter if other banks fail, because they are all covered.

The idea that 130 billion pounds is a safety net for a future crisis, or double dip recession as they like to call it, is preposterous. Derivative-produced debt is, depending who you ask, between $600 trillion and $1 quadrillion. According to Robert Chapman, from the theinternationalforecaster.com, buying derivatives is not investing.  It is gambling, insurance and high stakes bookmaking.  Derivatives create nothing.” According to the Bank of International Settlements, the derivative bubble has grown exponentially to a point where the amounts negotiated under this scheme has long surpassed the world’s GDP. “Derivative trades have grown exponentially, until now they are larger than the entire global economy.”Credit default swaps (CDS) is the most common form of derivatives. CDS are bets between two parties on whether or not a company will default on its bonds. They are indeed illegal insurance policies, with no requirement to hold any asset. CDS are used to increase profits by gambling on market changes.

The WEB of DEBT in which the current economy was built throughout the past 100 years was the tool used in a process to reverse everything humans achieved. It was not unintended however, as this was the mechanism the globalist bankers planned on using from the beginning. Every time the world experienced a financial crisis like in 1929-1933, the grip of control tightened more and more. The measures to avoid a total collapse, as we were told, were not such. They were simply ways to postpone the imminent collapse.  But the measures the bankers implemented cannot be used forever. Sooner rather than later something will give in. The step by step, ad hoc and non-holistic approach of Fed and Treasury to crisis management has been a failure. . . . [P]lugging and filling one hole at [a] time is useless when the entire system of levies is collapsing in the perfect financial storm of the century. A much more radical, holistic and systemic approach to crisis management is now necessary,” says professor Nouriel Roubini. founder of Roubini Global Economics.

After turning the global economy into a service-based system, where no quality products are manufactured; after driving developing countries into massive debt while collapsing the economies of the western world, the bankers are ready for their last move: a one last crisis. According to the G20 communique, its members must cut their deficits by 2013, a process that already started. This process is supposed to end in 2016, when the nations should have stabilized their deficits. Cutting and then stabilizing deficits means that debtor countries will have to find a way to pay their debts in full to the IMF and World Bank according to the conditions imposed by those entities. Every country that does not pay in full will be liquidated and their resources will be automatically transferred to the globalist bankers. Imagine what happened to Argentina, Greece and Iceland in the last decade, but instead of being those countries, the debtors will be the United States, Spain, Portugal, England and Germany.

Mexican President: Disarm Everyone. Obama Nods Yes

Infowars.com

Mexican President Felipe Calderón called upon the United States Congress to re-enact the assault weapons ban in a bid to disarm the American people as they are integrated into theNorth American Union system. Further, he placed blame for fueling drug cartels and gang violence squarely on the United States and their supply of firearms.

Calderón made these outrageous and anti-American remarks from the floor of the U.S. Congress during an official visit, and also renewed attacks on the immigration legislation passed by Arizona.

President Obama joined in his cause, making the startling declaration that “We are not defined by our borders” during a press conference welcoming Calderón on the White House lawn. Such a statement with immigration AND “weapons” problems on the border? Whatever happened to the Robert Frost adage ‘Good fences make good neighbors‘?

Calderón told the United States that it must “regulate the sale of these weapons in the right way.” He continued:

“Many of these guns are not going to honest American hands. Instead, thousands are ending up in the hands of criminals.”

Calderón’s Call to Disarmament is particularly inappropriate before Congress, who are Constitutionally barred from making any law which would violate any part of the Bill of Rights– secured to the people and several states in balance against the power given to the Federal Government. Further, Calderón’s plan holds the same fallacy as other attempts at gun control. If carried out, banning “assault” weapons would empower– rather than restrict– narcotrafficking gangs and leave “good” people helpless. It would not, as he naively intends, curb cartel violence or dry out the tools of their intimidation.

Yet his proposals have long been advanced and supported by the likes of Barack Obama and Hillary Clinton, among others. President Obama voiced general support for a renewed ban last year, but acknowledged that it would be difficult to achieve politically. Moreover, Obama’s Attorney General Eric Holder has also expressed support for re-enacting a gun ban, but has shied away from it while the White House has kept it quiet purposely to avoid political damage to other parts of President Obama’s already wildly-radical agenda. Last year, Newsweek scolded Eric Holder for “backing away” from the ban issue and failing to support an issue ‘important to Mexican officials.’

A MESSAGE FOR ARIZONA

President Calderón also used the opportunity to amplify his criticism of Arizona’s immigration laws, a position which is hypocritical on several points. First, why would he have a voice among Mexican people who fled at all costs from the failing and violent narco-state which he heads? Furthermore, how can the Mexican President decry the efforts of Arizona to control its borders and maintain stability, when Mexico has considerably more severe laws against illegal immigration than that recently introduced by the under-pressure border state.

Though Calderón issued a tongue-in-cheek travel advisory to ‘visiting’ Mexican citizens warning them to be wary of the strict new attitude in Arizona, it is his own country which has grown wild with corruption, violence, drug cartels, authoritarian police and the unsustainable blow of mass exodus which has turned Mexico into a vacuum and failed state. While the United States has attempted to progress on issues of discrimination, Mexico continues to openly oppress its minority groups and stifle attempts at resistance. Despite this distinction, many sanctuary cities across the United States have joined with Calderón and proposed bans on Arizona of their own.

‘SOUTHBOUND FLOW OF ILLEGAL WEAPONS’ ISSUE RAISED TO PROMOTE NORTH AMERICAN INTEGRATION

Most of all, the two heads of state, Calderón and Obama, have demonstrated a reckless and uncaring attitude towards curbing illegal immigration– which threatens to wreck both countries. Yet they have pushed hard for amnesty and other provisions to legalize workers and prevented any attempts to impede the open flow of goods and people across the border.

They have both worked furiously to fast-track North American regional integration. They met in Guadalajara in August 2009alongside Canadian PM Stephen Harper to continue– largely in secret — the agenda announced under the Bush-era Security and Prosperity Partnership for North America agreement (talks included the hot-button issue of “illegal southbound flow of American guns and cash that helps fuel this extraordinary violence”).

President Obama– for someone who claimed ignorance about the North American Union during his 2008 campaign [video]– certainly has gone a long way in supporting the total destruction of United States sovereignty, all while embracing cheap globalist clichés, obliterating the economy and opening-up the floodgates to labor replacement from Mexico and other Latin American countries.

Politicians– through NAFTA, WTO, CAFTA and SPP agreements, among others– are ushering in a corporatist-controlled North American Union, alongside a longer-term global merger. Robert Pastor and other key architects from the Council on Foreign Relations clearly designed the North American Union to circumvent the confines of the U.S. Constitution, and such a system is unlikely (once in power) to allow or accept the resistance of an armed population.

More…

Who is Behind Mexico’s Drug War?

Eurasia Review

On Friday, two patrol cars were ambushed by armed gunman in downtown Ciudad Juarez. In the ensuing firefight, seven policemenmexican drug war were killed as well as a 17-year old boy who was caught in the crossfire. All of the assailants escaped uninjured fleeing the crime-scene in three SUVs. The bold attack was executed in broad daylight in one of the busiest areas of the city. According to the Associated Press:

“Hours after the attack, a painted message directed to top federal police commanders and claiming responsibility for the attack appeared on a wall in downtown Ciudad Juarez. It was apparently signed by La Linea gang, the enforcement arm of the Juarez drug cartel. The Juarez cartel has been locked in a bloody turf battle with the Sinaloa cartel, led by Joaquin “El Chapo” Guzman.

“This will happen to you … for being with El Chapo Guzman and to all the dirtbags who support him. Sincerely, La Linea,” the message read.” (“7 Mexican police officers killed in Ciudad Juarez”, Olivia Torres, AP)

The massacre in downtown Juarez is just the latest incident in Mexico’s bloody drug war. Between 5 to 6 more people will be killed on Saturday, and on every day thereafter with no end in sight. It’s a war that cannot be won, but that hasn’t stopped the Mexican government from sticking to its basic game-plan.

The experts and politicians disagree about the origins of the violence in Juarez, but no one disputes that 23,000 people have been killed since 2006 in a largely futile military operation initiated by Mexican president Felipe Calderon. Whether the killing is the result of the ongoing turf-war between the rival drug cartels or not, is irrelevant. The present policy is failing and needs to be changed. The militarization of the war on drugs has been a colossal disaster which has accelerated the pace of social disintegration. Mexico is quickly becoming a failed state, and Washington’s deeply-flawed Merida Initiative, which provides $1.4 billion in aid to the Calderon administration to intensify military operations, is largely to blame.

The surge in narcotics trafficking and drug addiction go hand-in-hand with destructive free trade policies which have fueled their growth. NAFTA, in particular, has triggered a massive migration of people who have been pushed off the land because they couldn’t compete with heavily-subsidized agricultural products from the US. Many of these people drifted north to towns like Juarez which became a manufacturing hub in the 1990s. But Juarez’s fortunes took a turn for the worse a few years later when competition from the Far East grew fiercer. Now most of the plants and factories have been boarded up and the work has been outsourced to China where subsistence wages are the norm. Naturally, young men have turned to the cartels as the only visible means of employment and upward mobility. That means that free trade has not only had a ruinous effect on the economy, but has also created an inexhaustible pool of recruits for the drug trade.

Washington’s Merida Initiative–which provides $1.4 billion in aid to the Calderon administration to intensify military operations–has only made matters worse. The public’s demand for jobs, security and social programs, has been answered with check-points, crackdowns and state repression. The response from Washington hasn’t been much better. Obama hasn’t veered from the policies of the prior administration. He is as committed to a military solution as his predecessor, George W. Bush.

But the need for change is urgent. Mexico is unraveling and, as the oil wells run dry, the prospect of a failed state run by drug kingpins and paramilitaries on US’s southern border becomes more and more probable. The drug war is merely a symptom of deeper social problems; widespread political corruption, grinding poverty, soaring unemployment, and the erosion of confidence in public institutions. But these issues are brushed aside, so the government can pursue its one-size-fits-all military strategy without second-guessing or remorse. Meanwhile, the country continues to fall apart.
THE CLASHING CARTELS

The big cartels are engaged in a ferocious battle for the drug corridors around Juarez. The Sinaloa, Gulf and La Familia cartels have formed an alliance against the upstart Los Zetas gang. Critics allege that the Calderon administration has close ties with the Sinaloa cartel and refuses to arrest its members. Here’s an excerpt from an Al Jazeera video which points to collusion between Sinaloa and the government.

“The US Treasury identifies at least 20 front companies that are laundering drug money for the Sinaloa cartel…There are allegations that the Mexican government is “favoring” the cartel. According to Diego Enrique Osorno, investigative journalist and author of the “The Sinaloa Cartel”:
“There are no important detentions of Sinaloa cartel members. But the government is hunting down adversary groups, new players in the world of drug trafficking.”
International Security Expert, Edgardo Buscaglia, says that “of over 50,000 drug related arrests, only a very small percentage have been Sinaloa cartel members, and no cartel leaders. Dating back to 2003, law enforcement data shows objectively that the government has been hitting the weakest organized crime groups in Mexico, but they have not been hitting the main crime group, the Sinaloa Federation, that’s responsible for 45% of the drug trade in this country.” (Al Jazeera)

There’s no way to verify whether the Calderon administration is in bed with the Sinaloa cartel, but Al Jazeera’s report is pretty damning. A similar report appeared in the Los Angeles Times which revealed that the government had diverted funds that were earmarked for struggling farmers (who’d been hurt by NAFTA) “to the families of notorious drug traffickers and several senior government officials, including the agriculture minister.” Here’s an excerpt from the Los Angeles Times:
“According to several academic studies, as much as 80% of the money went to just 20% of the registered farmers…Among the most eyebrow-raising recipients were three siblings of billionaire drug lord Joaquin “El Chapo” Guzman, head of the powerful Sinaloa cartel, and the brother of Guzman’s onetime partner, Arturo Beltran Leyva”. (“Mexico farm subsidies are going astray”, Tracy Wilkinson, Los Angeles Times)

There’s no doubt that if the LA Times knows about the circular flow of state money to drug traffickers, than the Obama administration knows too. So why does the administration persist with the same policy and continue to support the people they pretend to be fighting?

In forty years, US drug policy has never changed. The same “hunt them down, bust them, and lock them up” philosophy continues to this day. That’s why many critics believe that the drug war is really about control, not eradication. It’s a matter of who’s in line to rake in the profits; small-time pushers who run their own operations or politically-connected kingfish who have agents in the banks, the intelligence agencies, the military and the government. Currently, in Juarez, the small fries’ are getting wiped out while the big-players are getting stronger. In a year or so, the Sinaloa cartel will control the streets, the drug corridors, and the border. The violence will die down and the government will proclaim “victory”, but the flow of drugs into the US will increase while the situation for ordinary Mexicans will continue to deteriorate.

Here’s a clip from an article in the Independent by veteran journalist Hugh O’Shaughnessy:

“The outlawing and criminalizing of drugs and consequent surge in prices has produced a bonanza for producers everywhere, from Kabul to Bogota, but, at the Mexican border, where an estimated $39,000m in narcotics enter the rich US market every year, a veritable tsunami of cash has been created. The narcotraficantes, or drug dealers, can buy the murder of many, and the loyalty of nearly everyone. They can acquire whatever weapons they need from the free market in firearms north of the border and bring them into Mexico with appropriate payment to any official who holds his hand out.” (“The US-Mexico border: where the drugs war has soaked the ground blood red”, Hugh O’Shaughnessy The Independent)

It’s no coincidence that Kabul and Bogota are the the de facto capitals of the drug universe. US political support is strong in both places, as is the involvement of US intelligence agencies. But does that suggest that the CIA is at work in Mexico, too? Or, to put it differently: Why is the US supporting a client that appears to be allied to the most powerful drug cartel in Mexico? That’s the question.   More…

Framing people just got easier: IBM, Police Using Pre-crime Predictive Software

Did anyone say Minority Report?

IBM

Armonk– – 14 Apr 2010: SPSS, an IBM (NYSE: IBM) Company, today announced that the Florida State Department of Juvenile pre-crime predictive softwareJustice selected IBM predictive analytics software to better understand, predict behaviors and properly assign rehabilitation programs for the state’s juvenile justice system.

More than 85,000 youth enter the juvenile justice system in Florida each year for varying degrees of offenses – from drug abuse to robbery or property crimes. As each youth enters the system for a different reason and with varying backgrounds, the best program for positive rehabilitation is very specific – what may work for one juvenile may not work for another. The goal of the collaboration with IBM is to apply analysis to predict the best programs and rehabilitation for each juvenile offender based on their crime and background.

Mark Greenwald, chief of research and planning at the Florida Department of Juvenile Justice, said, “The State of Florida believes that if youth are rehabilitated with effective prevention, intervention and treatment services early in life, juveniles will not enter the adult corrections system. Our goal is to ensure juveniles do not return to the system. IBM SPSS predictive analytics will allow our organization to refine our current practice and better intervene in juvenile lives earlier to help them become — and stay — law abiding citizens.”

The organization selected IBM predictive analytics to improve its existing screening and placement process. With the new analytics system in place, Florida Department of Juvenile Justice will analyze key predictors such as past offense history, home life environment, gang affiliation and peer associations to better understand and predict which youths have a higher likelihood to reoffend.

With that information, the organization can more effectively place specific segments of juveniles into the best programs for rehabilitation. For example, juveniles identified as having a higher likelihood for re-offense can be placed in a more focused program, such as one that addresses issues on substance abuse or mental health, if appropriate to the need. Additionally, the organization will direct those youth with a lower chance of re-offense to a less restrictive program, again providing services better tailored to meet their rehabilitative needs.

Prior to predictive analytics, the organization used Excel for basic analysis on projections for the number of delinquency cases they would take in, which had limited functionality. They selected IBM SPSS predictive analytics due to the ease of use and the advanced analytic capabilities.

The organization will now utilize the new predictive analytics system as a component in many of the performance measurement analyses conducted and distributed to agency staff throughout the year. These reports assess the future of delinquency cases to evaluate what juvenile crime trends may look like in the immediate future. This information will help the organization to better plan and project staffing and other resource needs.

IBM recently also announced that the Ministry of Justice in the United Kingdom uses predictive analytics to assess the likelihood of prisoners reoffending upon their release to help improve public safety. With predictive technology from IBM, the Ministry of Justice is analyzing hidden trends and patterns within the data. IBM SPSS predictive analytics has helped identify whether offenders with specific problems such as drug and alcohol misuse are more likely to reoffend than other prisoners.

Deepak Advani, vice president of predictive analytics at IBM, said, “Predictive analytics gives government organizations worldwide a highly-sophisticated and intelligent source to create safer communities by identifying, predicting, responding to and preventing criminal activities. It gives the criminal justice system the ability to draw upon the wealth of data available to detect patterns, make reliable projections and then take the appropriate action in real time to combat crime and protect citizens.”

IBM has invested more than $12 billion to build an analytics portfolio which includes organic innovation and acquisitions. In addition, IBM has assembled 4,000 analytics consultants with industry expertise, and opened a network of seven analytics centers of excellence. Today, IBM is working with more than 250,000 clients worldwide on predictive analytics, including 22 of the top 24 global commercial banks, 18 of the world’s top 22 telecommunication carriers and 11 of the top 12 U.S. specialty retailers.