Potential for civil unrest in California, Ohio, and Michigan

January 21, 2009

If you have never heard of Life After The Oil Crash, it’s a site that is worth checking out. They have a great “Breaking News” section.

They don’t create news, they simply gather headlines from major AP papers and put them in a feed.

If you have been paying attention to the news, States are feeling the pressure of state budgets.

Most notable is California with their $41 billion short fall. They just announce they will not return income tax to people who over paid last year.

But Michigan and Ohio are getting a lot of press because of the collapsing economy. The auto collapse has devastated Detroit, average home prices are $18,000!

And now Ohio is feeling the heat. The Cleveland Plain Dealer reported Ohio State Employees Union Stunned and Aghast at $250 Million in Concessions, Prospect of Layoffs.

I wrote last week Here, about Ohio’s unemployment fund being broke, and now rumors that welfare will be bankrupt in a couple of weeks.

Mike Ruppert who is a long time blogger and founder of “From the Wilderness” blog has written some really tough stuff about Ohio.

CIVIL UNREST IN THE UNITED STATES

This is little more than hunch at the moment. The three likeliest states to have civil unrest first are Michigan, California and Ohio.

These are the states hardest hit by job cuts. Ohio is of most concern to me. California is just huge and fragmented. The “fires” here would be rapidly “extinguished” by a state that has well-developed and longstanding historical plans for civil unrest going back to the 1960s. There are really probably five states in California and the fire is unlikely to spread from one “region” to another because each region has a different economic base and a different culture. Michigan is geographically off to the side of the board and already something of a “wasteland”. There are no densely-packed masses of dry kindling nearby.

But Ohio is entirely different. Already devastated by auto layoffs and other massive corporate failures, Ohio’s industrial areas border and are in close proximity to Kentucky, West Virginia, Indiana and Pennsylvania. Lots of kindling in those states. At the same time as Ohio is devastated by DHL, auto and other layoffs, much of the nation’s high-tech wind turbine industry in Ohio is also shutting down at the same time… just when we need it. The snake eats its own tail for nutrition. It is the way money works… for now.
Interesting stuff.



It’s Clear By Now .. The Financial System Is Being Collapsed In Manageable Stages

January 21, 2009

Bob Chapman the International Forecaster, has said it plainly in his new article.

The answer is clear and we saw this year’s ago. The financial system is to be collapsed in stages that are manageable.

For those not familiar with Chapman, He spent three years in the U. S. Army Counterintelligence, mostly in Europe. He speaks German and French and is conversant in Spanish. He lived in Europe for six years, off and on, three years in Africa, a year in Canada and a year in the Bahamas.

Mr. Chapman became a stockbroker in 1960 and retired in 1988. For 18 of those years he owned his own brokerage firm. He was probably the largest gold and silver stockbroker in the world during that period. When he retired he had over 6,000 clients.

Chapman believes that we have allowed our government and the Fed via our elected representatives to use money and credit to control our financial system. These deficits and guarantees will not be sufficient to stabilize and save our current financial system. Hyperinflation will rage and depression will ensue. Out of this the elitists hope to create their World Government while the world is financially and economically on its knees.

It will take $2 to $5 trillion to bail out America’s banking system and in the process nationalize it.

As the New York Times reported on January 15. The government is slowly getting us comfortable with the idea that government is going to nationalize all our banks.



Bank of America post first loss in 18 years, paid dividend of only $.01

January 21, 2009

the largest U.S. bank by assets, Bank of America’s posted a quarterly loss of $1.79 billion last week, its first since 1991, and received $138 billion in emergency government funds.

That doesn’t count the $15.3 billion deficit at Merrill Lynch & Co, that they acquired last year.

To make matters worse, the company cut its quarterly dividend from $.32 to $.01.

Bank of America is in real trouble, the media is doing their best to not let out the truth about their financial situation. But consider this, Bank of America received $25 billion in aid last year, and the that wasn’t enough to keep them from reporting Q4 losses.

Jeff Davis, director of equity research at Howe Barnes Hoefer & Arnett, said:

“Merrill has a noose around its neck in the form of the Merrill balance sheet. There’s a creeping concern that Citigroup and Bank of America, at least from a common shareholders perspective, may be headed down the path of nationalization.”


The U.S. banking system is effectively insolvent

January 20, 2009
Bloomberg, January 20, 2009

Nouriel Roubini, nicknamed Dr. Doom for his gloomy economic predicts has stated that he believes the Unites States is insolvent.

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,”

Roubini said at a conference in Dubai .

“If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.”

Read Original Article


Ron Paul Says Israel Created Hamas

January 11, 2009

I wish everyone in congress knew history like Ron Paul.

It drives me crazy that the media spins Paul as a corky loner Congressman, when he’s more conservative then the entire Republican Party.


99% of the Common Flu is Resistant To Tamiflu

January 10, 2009
reported by New York Times

Virtually all the dominant strain of flu in the United States this season is resistant to the leading antiviral drug Tamiflu, and scientists and health officials are trying to figure out why.

This season 99 percent of throat swabs from patients with the most common type of flu that were sent to the Centers for Disease Control and Prevention for genetic typing showed a Tamiflu-resistant strain.

A interesting note is that Tamiflu is the only FDA approved for Bird Flu.


The London Times Wants Government To Tax Bank Deposit!

January 10, 2009

How should we save the economy? Save more money and hope our financial thriftiness saves us, or spend more money and hope borrowing can fuel consumerism?

The London Times suggest that spending is the way out of this. Both The British and United States Governments are doing everything they can to discourage savings right now. Other then publicly announcing that they don’t want you to save.

“borrowing our way out of debt”, paradoxical as it sounds, is exactly the right prescription for our present problems.

In the article Kaletsky says:

The next logical step, although it may be politically controversial, would be to do the opposite of what the Tories suggest. Instead of reducing taxes on interest payments, the Government could tax all bank deposits and other risk-free savings. This would create a negative risk-free interest rate, encouraging savers either to invest in property, shares and other productive assets – or simply to save less and consume more.

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Reported by London Times
“Punish savers and make them spend money” by , January 8, 2009


U.S. Army Recruiting With Video Games!

January 9, 2009

The U.S. Army Experience Center at the Franklin Mills shopping mall

In order to keep enlistment numbers up, the army has decide to abandon traditional recruiting centers, and are testing an experimental center northeast of Philadelphia.

60 personal computers loaded with military video games, 19 Xbox 360 video game controllers and a series of interactive screens describing military bases and career options in great detail. Potential recruits can even hang out on couches and listen to rock music.

Iraq Veterans Against the War are claiming the center glamorizes war, Jesse Hamilton a former Army staff segeant in Iraq says it’s:

“very deceiving and very far from realistic.”

___________________

Reported by Reuters

“U.S. Army recruiting at the mall with video games” By Jon Hurdle, Fri Jan 9, 2009 4:08am EST


The End of The Super Highway, At Least For Now.

January 7, 2009

Reported by Reuters

In a bit of good news, it seems the plans for the Trans Texas Corridor are dead for now. The corridor was a $180 billion plan to build a giant system of toll roads and commuter rails criss-crossing the state. Many feared it would be the start of the rumored NAFTA Super Highway. A system of national transit lines that would connect Mexican ports to the heartland in the  United States, and push all the  way up to Canada.

Which of course would further promote the out-sourcing of companies over seas, as whats left of any economy would be unable to compete with Chinese goods being shipped directly inland.

So it’s dead for now, which means they will wait a little while and come back with a smaller plan that is less intrusive. Like they announced in the Reuters article, the focus is now on ” smaller infrastructure projects”


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