WEEKLY EMAIL PRINTED EDITION

June 28, 2013 The world press is certainly enjoying the spectacle of seeing the US government fail to gets its way as China and Russia engage in diplomatic delays and word games to evade handing over NSA whistleblower Ed Snowden to the US for prosecution on espionage charges which is highly inappropriate at this stage. Snowden is not guilty of spying for any enemy of the USunless, of course, the US government considers us, the recipients of his revelations, as the enemy. As far as we know Snowden has only revealed illegal government acts to the free citizens of the world, which is a moral imperative not a crime. The real criminal is the US government and Europe is rightly outraged about being one of the victims of US spying. Germanys top political magazine, Der Spiegal, claimed that Europe Must Protect Itself From America..... Is Barack Obama a friend? Revelations about his governments vast spying program call that into doubt. The European Union must protect the Continent from Americas reach for omnipotence. We are being watched. All the time and everywhere. And it is the Americans who are doing the watching. On Tuesday, the head of the largest and most all-encompassing surveillance system ever invented is coming for a visit. If Barack Obama is our friend then we really dont need to be terribly worried about our enemies. Der Spiegel had nothing but derision for German Interior Minister Hans Peter Friedrich who rushed to the NSAs defense, saying: thats not how you treat friends. But as Paul Craig Roberts wrote,
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THIS WEEKS ANALYSIS:

Spy Scandal: Anti-Americanism Felt Worldwide Background on Booze Allen Is the Economy on the Edge of Collapse? NWO with China? Not so Fast Supreme Court Strikes Down DOMA and Prop 8 Obamas Attack on Coal Immigration Bill Steamrolled Through the Senate

SPY SCANDAL: ANTI-AMERICAN SENTIMENT FELT WORLDWIDE Although the revelations of near-total NSA snooping has prompted only moderate outrage among Americans, there is a palpable hatred and disgust rising in other countries for the US governments total disregard for privacy and sovereignty by spying on them in the same way. For decades, the US has claimed to be the defender of right in the world, invading and occupying countries in the name of democracy and acting as the worlds policeman. Foreigners have long viewed these US pretensions as arrogant and brazen hypocrisy after the many revelations of CIA manipulations, secret prisons, renditions, false pretenses in the phony war on terror and using NATO alliances to further the globalist agenda. Now, in the wake of the NSA spying scandal goodwill toward America has evaporated and many in Europe are even railing against their own governments for colluding with and covering for US covert agencies. The reason the Snowden case is so important is not the revelation that the NSA has been spying domestically for years, but that he has provided documents that prove it, undermining the governments normal denials and lies. If only the rest of the leaked material would be revealed we might get more action to stop this infringement on our privacy.

Friedrichs reaction is only paradoxical on the surface and can be explained by looking at geopolitical realities. The US is, for the time being, the only global power and as such it is the only truly sovereign state in existence. All others are dependent either as enemies or allies. And because most prefer to be allies, politicians Germanys included prefer to grin and bear it. Der Spiegel also decries the fact that Germany has become a vassal state of the Americans: German citizens should be able to expect that their government will protect them from spying by foreign governments. But the German interior minister says instead: We are grateful for the excellent cooperation with US secret services. Friedrich didnt even try to cover up his own incompetence on the surveillance issue. Everything we know about it, we have learned from the media, he said. The head of the countrys domestic intelligence agency, Hans-Georg Maassen, was not any more enlightened. I didnt know anything about it, he said. And Justice Minister Sabine LeutheusserSchnarrenberger was also apparently in the dark. These reports are extremely unsettling, she said. The German people are rightly upset with this kind of obsequious behavior from their government. While elsewhere, China and Russia were having a heyday playing havoc with US attempts to capture Snowden. ! Chinese-controlled Hong Kong delayed the processing of US extradition papers due to technical issues and by waiting until just before the deadline to pose additional
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questions about Snowdens full name. Even though the US revoked Snowdens passport, Hong Kong officials provided Snowden with exit papers necessary to board an Aeroflot plane to Moscow. ! Russia used the technical status of an airport transit area to claim Snowden wasnt on Russian soil so they could claim he wasnt under their jurisdiction. Many Americans visualize Snowden camping out on benches at the transit terminal much like Tom Hanks was forced to do in the movie The Terminal, a story about someone stranded for days in the airport. But unlike American airports, where everyone arriving from overseas has to pass through customs on their way to another airline flight, in many International airports, you can land and not enter the country while staying within the terminals that are designed with limited facilities for people in transit. In the Moscow Sheremetyevo airport there are Capsule Hotel rooms available in the transit terminaloversized sleeping cubicles like an overnight train compartment. While Snowden was observed trying to rent one such capsule the first night, he disappeared after booking a succession of flights to Havana which he didnt show up for. Dozens of reporters were on that first flight to Havana expecting to chronicle Snowdens flight or perhaps get an interview. When Snowden didnt show, they quickly jumped ship and are hanging out at the terminal waiting for his appearance. In short, theres no place for Snowden to hide in this public transit terminal unless the Russians are facilitating his hiding elsewhere. Russian President Vladimir Putin dismissed US threats and criticism for hiding Snowden as "ravings and rubbish." In any case, Putin was adamant that Russia would not deliver up Snowden to the US,

using the limp excuse of having no extradition treaty with the US. It is my suspicion that Russia and China talked together about the Snowden dilemma while he was still in Hong Kong and decided to move him to Russia knowing that there would be significant delays in sorting out the asylum issue. Why else would Snowden fly to asylum in South America via Moscow, which is in the wrong direction? Because only Russia or China were big enough in stature and military prowess to defy the US and China had already done its part by getting Hong Kong to allow for Snowdens escape. The Asylum Issue Gets Sticky: So Russia is now acting the role of protector as Snowdens search for asylum drags on. This is not an easy decision. Not only does he have to find a country who wants to defy the US openly, and take the consequences in economic and trade sanctions, but it has to be a country that has a powerful enough secret police force to thwart US black ops attempts to come in and kidnap Snowden. Like Chip Tatum, Snowden has reams of secrets he has squirreled away in safe keeping with other WikiLeak types who will threaten to reveal them if the US tries to make Snowden disappear. But that kind of protection (reverse blackmail) doesnt always work with someone as powerful as the dark side of the US government. Chip Tatum worked for the dark side of the CIA during the 80s in the governments drugs, cash, and weapons pipeline during the Iran Contra affair. He and others like Barry Seal and Terry Reed were betrayed by the Agency but Tatum, anticipating this betrayal, had kept back a secret cache of embarrassing material documenting the CIA involvement, and bragged openly in interviews about how he was untouchable by government owing to the threat of the truths he held.
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But it only protected him for a little while. Tatum was eventually kidnapped by government contractors, tortured and forced to reveal where he kept the secrets. The secrets were vacuumed up and Tatums collaborators in truth were silenced. Then, Tatums body, badly mutilated from torture (he had no face) washed up on a Panama beachto send a message to others who would dare defy the evil empire. Glenn Greenwald, a US citizen living in Brazil (with his gay lover) is the reporter for the UK Guardian who broke this NSA scandal. After receiving top secret documents from Snowden he purportedly told his partner in Brazil he would send him copies. He never sent them but two days later his apartment was broken into and the partners laptop stolen. I doubt the computer had all of Snowdens stolen files, but its clear to all that the CIA can reach out anywhere and touch people. Of course Snowden isnt a former black ops guy and is capable of generating more public sympathy. This is probably his most effective deterrent against a government hit, owing to the embarrassment the US is already suffering. Its hard to think the US would be stupid enough to kill Snowden and cement its evil empire reputation even further. Unfortunately, the US has other ways of making life unbearable that dont involve killing. Snowden is actively seeking asylum in a country he thinks will not succumb to US pressure, such as Ecuador and Venezuela both with far Leftist presidents hostile to the US. But even that tactic is fraught with problems. Ecuador, according to its own internal laws, cannot grant asylum until the subject person is on Ecuadorian territory, either in Ecuador proper or being housed in one of the countrys embassies.

Julian Assange, for example, has been holed up in Ecuadors London embassy for about a year. But he cant very well escape to Ecuador lest he risk arrest the minute he exits the embassy. There are also physical limitations to any countrys ability to house dissenters in embassies and they are reluctant to do that. Washington is already turning the screws on Ecuador by threatening Ecuadors duty free trade status with the US. Ecuadoran government spokesman Fernando Alvarado stiffly replied that "Ecuador bows to no pressure or threats," even though it would cost Ecuador dearly in lost agriculture and floral export revenue to the US. Venezuela could also be threatened with a boycott of oil exports to the US, but the US would be shooting itself in the foot and force Americans to pay even higher fuel prices. Besides, Ecuador and Venezuela would have no trouble marketing its oil elsewhere, especially to China. Snowden has thought of Iceland too, which successfully shafted the Big Banks by declaring a national default on its debt and is now rebuilding their economy without that huge debt. Of course, when you stick it to the globalists they have ways of taking revenge much later, so dont be surprised if you see Iceland suffer for their comeuppance in the future. Iceland is already host to Wikileaks homebase, and Wikileaks has submitted an asylum request there on Snowdens behalf and his actively guiding the flight of Snowden from US prosecution. He is accompanied by Wikileaks legal adviser, Briton Sarah Harrison during his travels. Julian Assange, the WikiLeaks founder whose group is assisting in Snowdens concealment, claimed on a conference call to know Snowden's location, but would only say that he is "healthy and safe."
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FoxNews said that, Assange and his colleagues accused the U.S. of trying to bully other nations into turning him over, claiming Snowden can potentially claim refugee status. Though the U.S. revoked Snowden's passport, Assange revealed that Snowden was supplied with a refugee document when he left Hong Kong by the Ecuadorian government, allowing him to travel. The Ecuadorian government has denied issuing Snowden any travel documents. 21st Century Wire commented on the relative merits of both nations when it wrote: Ecuadors foreign minister announced yesterday it could take months to decide on Snowdens asylum case, leaving him in limbo effectively, stuck in a Russian transit wing with an annulled and invalid US Passport. 21st Century Wire already indicated two days ago that Snowdens Plan A has always been Iceland, so its possible that this mystery jet which has landed in Reykjavk early this morning, might have well have been ferrying the NSA whistleblower extraordinaire to his new Wiki-bunker in Iceland. The plane was a Russian Sukhoi Super Jet 10095 chartered flight, whose nation of origin was removed from flight data on the airline tracking site FlightRadar24.com. That same site has also been known to omit identifying tags from US military Chemtrailing aircraft, so governments obviously have some control there. The question is now: Is Snowden actually at the Russian Airport awaiting asylum negotiations? I doubt it. The daily Telegraph published this report:

The Daily Telegraph and other media scoured Sheremetyevos three southern terminals on Wednesday but airport staff, receptionists at a capsule hotel, policemen, Russian consular officials and passengers all claimed they had not seen the American. There is a receptionist at a capsule hotel in the transit zone who said Snowden looked at the prices there on Sunday, then left. So where would he go, unless Russia has provided some safe house outside the airport? 21st Century Wire concludes, So no press have actually seen Ed Snowden in Moscow. It seems that this high-profile whistleblowers public status is still being managed by Icelandic based organization Wikileaks. It appears that Wikileaks is acting as a media liason of sort, giving press updates on Snowden alleged status in Moscow... Could Wikileaks be running the PR smoke and mirrors cover for their cyberhero Snowden, a potential asset and golden goose for the organization? Could all of the press flares be misdirection by Wikileaks in order to conceal his flight to Iceland? Anything is possible, but Ecuador is still in the running too. On Thursday, Ecuador formally renounced its trade pact with the US, paving the way to get out from under the US threat of termination. That could indicate that they intend to grant asylum. It would be doubtful they would take this step which is going to cost Ecuadorian business dearly, unless they were serious about defying the US. So, if Snowden is being kept safe by the Russians, is there any quid-pro-quo going on? WikiLeaks said on its Twitter feed Wednesday that Snowden is not collaborating with Russia's Federal Security Service, the FSB. That may be true for now, just to keep Snowden free of the
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espionage charge, but Im sure the Russians and the Chinese would love to know more about US spying capabilities. Sealing Its Reputation as the Bully of the World: All of this rise in anti-American feeling indicates a pent up frustration with US bullying. It is as if the world has long waited for someone to stand up to US economic hegemony and now theyre getting their chance. The US image has been stripped of its democratic pretenses and part of the dark side of its government operations is open for all to see. Margaret Kimberley writing in the Black Agenda Report said it all: No one likes a bully and no one likes a liar. The United States government is surely both because other nations have no problem openly treating it with the disdain it deserves. The saga of Edward Snowden provides the latest proof of the disrespect that America has brought upon itself. Its tantrums and rants mean little to anyone outside of the USA bubble. Russian president Vladimir Putin made all their points moot when he announced that Snowden will not be turned over... The Chinese government was equally dismissive. After Secretary of State John Kerry issued public warnings of negative consequences to U.S./China relations, Chinese government spokeswoman Hua Chunying also got in her digs and reminded the United States that Snowden revealed evidence of American espionage directed at China. Id like to advise these people to hold up a mirror, reflect and take care of their own situation first. It is striking that both China and Russia allowed Snowden to travel despite the governments very public requests to prevent him from doing so. Both countries were quite

happy to give America a very public comeuppance. It isnt actually very surprising considering the belligerence with which our government has behaved. In 2011 the United States connived and got both China and Russia to agree to a no fly zone in Libya, only to turn the measure into a license to overthrow Gaddafi and have him killed. Both countries were made to look like fools but like all bullies the United States hopes that they wont mind getting fooled twice and will go along with a similar scenario in Syria or any other place on earth where America chooses to act like a gangster nation. Former Asst. Sec. of the Treasury Paul Craig Roberts tells how bad the US is looking because of their bullying other nations. He makes common references to similarities between our NSA and the East German Stasi (Stats Polizei State Secret Police): With Hong Kong, China, Russia, Ecuador, and Cuba refusing to obey the Stasis orders, Washington is flailing around making a total fool of itself and its media prostitutes. Secretary of State John Kerry has been issuing warnings hand over fist. He has threatened Russia, China, Ecuador, and every country that aids and abets Snowdens escape from the Washington Stasi. Those who dont do Washingtons bidding, Kerry declared, will suffer adverse impacts on their relationship with the US. What a stupid thing for Kerry to say. Here is a guy who once was for peace but who has been turned by NSA spying on his personal affairs into an asset for the NSA. Well, its not that simple, and I doubt Kerry was ever really for peace. Yes, the government does gather dirt on lots of people, in order to control
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them, but they also prefer to use predictable yesmen. They resort to blackmail and death threats only when necessary. They prefer willing accomplices to whom they dont have to explain much. Natural News posted this relative to the recent revelations of another NSA whistleblower who verified the NSA uses its surveillance for blackmail: Russ Tice, a Bush-era NSA analyst-turnedwhistleblower has sounded the alarm on the true depth of the NSA's surveillance abuses. In an interview on the Boiling Frogs Podcast, Tice stated: They went after -- and I know this because I had my hands literally on the paperwork for these sort of things -- they went after highranking military officers; they went after members of Congress, both Senate and the House, especially on the intelligence committees and on the armed services committees and some of the -- and judicial... They went after lawyers and law firms. All kinds of -- heaps of lawyers and law firms. They went after judges. One of the judges is now sitting on the Supreme Court that I had his wiretap information in my hand. Two are former FISA court judges. They went after State Department officials. They went after people in the executive service that were part of the White House -- their own people. Naively, NaturalNews comes to the erroneous conclusion that We must now assume the NSA is in charge, not elected representatives. Rodney Stich after cataloging all of the black operations of the government during the 1980s came to a similar and erroneous conclusion that the CIA runs the government. Neither the NSA nor the CIA control government, but they play essential roles in the

dark side of government. The hierarchy of the globalists controls the dark sides of these agencies---so essential are secret surveillance mechanisms and covert operations to their ability to protect the shadow government and control others. But the NSA and CIA get their actual control and direction from aboveand its not the president. Hes always a puppet of the controllers and his handler is usually the National Security Advisor. Roberts concludes with, The world is enjoying Washingtons humiliation at the hands of Hong Kong. A mere city state gave Washington the bird. In its official statement, Hong Kong shifted the focus from Snowden to his message and asked the US government to explain its illegal hacking of Hong Kongs information systems. Chinas state newspaper, The Peoples Daily, wrote: The United States has gone from a model of human rights to an eavesdropper on personal privacy, the manipulator of the centralized power over the international internet, and the mad invader of other countries networks. . . The world will remember Edward Snowden. It was his fearlessness that tore off Washingtons sanctimonious mask. Chinas official Xinhua news agency reported that Snowdens revelations had placed Washington in a really awkward situation. They demonstrate that the United States, which has long been trying to play innocent as a victim of cyber attacks, has turned out to be the biggest villain in our age. The world has been growing increasingly sick of Washington for a long time. The bullying, the constant stream of lies, the
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gratuitous wars and destruction have destroyed the image hyped by Washington of the US as a light unto the world. The world sees the US as a plague upon the world. Thats my point: The NSA scandal has boosted the US reputation as the Bully of the World, and has accelerated the probability of a nuclear WWIII by handing to Russia and China a major propaganda victory that will allow them to someday justify their planned attack on the West. It has long been my theory that the main reason for US intervention around the world, under the guise of democracy, is to antagonize the world so as to facilitate this war against the Evil Empire. While I do not believe Snowden is a plant doing their bidding, the negative fallout from this scandal has certainly, if not unwittingly, accelerated the globalist plan to demonize our own nation and lay us open for a future attack. In response to all this negative publicity against the US, the Obama handlers have been forced to downplay the Snowden affairs. On Obamas boondoggle trip to Africa (costing taxpayers a whopping $100 million) he said, "I'm not going to have one case of a suspect who we're trying to extradite suddenly being elevated to the point where I've got to start doing wheeling and dealing and trading on a whole host of other issues simply to get a guy extradited." But thats exactly what the US is doing, though they will try and keep it out of the press. Government Clamping Down hard on Leakers: As Doug McKelway of FoxNews.com writes, the spy scandal has put a major chill on peoples willingness to talk about government misdeeds. It was exacerbated this week by an Obama executive order threatening federal

workers with an insider threat detection system. Amid the furor in Washington over government leaks and media exposs, a littleknown executive order signed by President Obama in October of 2011 could fuel the paranoia. It requires government agencies to "implement an insider threat detection and prevention program" -- in effect, ordering all government employees, regardless of security clearances or the sensitivity of their work, to police fellow workers as potential security threats, and report the suspicious behavior to superiors. Naturally, the CIA is getting in on the act. Andrea Germanos, staff writer for commondreams.org writes, A CIA memo detailing the agency's plans to crush leaks has itself been leaked. The Associated Press reported Wednesday evening that it had obtained a memo written by CIA director John Brennana man tied to leaks of his owndescribing a new campaign to keep CIA officials from leaking information to the media. The campaign is called "Honor the Oath," the news agency reports, and aims to "reinforce [the CIA's] corporate culture of secrecy." The broader Obama order applies to all government agencies, even those with no involvement in national security matters. So from now on, everyone in Washington is expected to report any other workers behavior that might indicate a willingness to betray the government, even by expressing critical views. Now, thats The Big Chill! The Obama administration's crackdown on leaks has already had a chilling effect on the flow of news. In an appearance at the National Press Club last week, Associated
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Press boss Gary Pruitt said, "Some of our longtime trusted sources have become nervous and anxious about talking to us, even on stories that aren't about national security." Pruitt, whose organization's phones records were seized by the Department of Justice in a leak probe, added, "Government employees that we once checked in with regularly will no longer speak to us by phone." Zaid said a larger problem is that most government agencies have no place where workers with legitimate grievances can go within the organization, without fear of being branded a malcontent -- or worse, a potential national security threat. BACKGROUND ON BOOZE ALLEN Tommy Paine writing for the Activist Post points out how the firm of Booze Allen Hamilton has a long pedigree with the dark side of government. Lost in the Edward Snowden debate is a critical look at his former employer, the company doing the spying on Americans in the first place: Booz Allen Hamilton. Booz Allen Hamilton is a government contractor, with 99% of its revenue coming from the US government. Not only does it receive money from the NSA, but also the US Army, US Navy, US Air Force, US Marine Corps, Department of Defense, Department of Homeland Security, the FBI and ... the IRS. In addition, Booz Allen is heavily connected to the CIA. Among the individuals involved in running the company, we have: James Clapper current Director of National Intelligence (DNI), head of NSA, the man who lied to Congress about the fat that NSA is actively spying on Americans, is a former executive

Mike McConnell - a current executive of the company, had Clapper's job (DNI) during George W. Bush's administration (keep it in the family, eh?) -- he worked for Booz Allen before Bush, then worked for Bush, then back to Booz Allen after Bush James Woolsey - former CIA Director, current executive Melissa Hathaway - former executive, also worked for McConnell during the Bush administration. Ian Brzezinski - former executive, son of Zbigniew Brzezinski, co-founder of the Trilateral Commission with David Rockefeller, central figure in the NWO crowd, and mastermind of Operation Cyclone Dov Zakheim - Part of the neocon Project for a New American Century, he is co-author of "Rebuilding America's Defenses," in which he is credited with the infamous line, "... some catastrophic and catalyzing event like a new Pearl Harbor." He goes to work for Booze Allen in 2004 The worst part is that Booz Allen Hamilton is owned by the Carlyle Group. The CEO of the Carlyle Group is Frank Carlucci. Mr. Carlucci was Deputy Director of the CIA during the Carter administration and former National Security Advisor and Secretary of Defense. Donald Rumsfeld is a Carlucci protg. He is or has been with the Project for a New American Century and a member of the Board of Trustees for the RAND Corporationa CIA front that develops policies that the Military Industrial Complex then carries out. IS THE ECONOMY ON THE EDGE OF COLLAPSE?
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I dont think so, although I was predicted several weeks ago that the speculative markets were going to suffer a correction, and not just the stock market. The exit from the bond market is beginning to look like a stampede as the NY Times noted this week: Ben Bernanke, the Fed chief, has spoken of slowing bond purchases [QE-3]. Wall Street never thought it would be this bad. Over the last two months, and particularly over the last two weeks, investors have been exiting their bond investments with unexpected ferocity, moves that continued through Monday. A bond sell-off has been anticipated for years, given the long run of popularity that corporate and government bonds have enjoyed. But most strategists expected that investors would slowly transfer out of bonds, allowing interest rates to slowly drift up. And, those interest rates hikes are starting to show up in the housing market this week, which is bound to slow down the housing price recovering, but not stop it. Instead, since the Federal Reserve chairman, Ben S. Bernanke, recently suggested that the strength of the economic recovery might allow the Fed to slow down its bond-buying program, waves of selling have convulsed the markets. The recent pain has spilled over into stock markets, pushing the Standard & Poors 500stock index down an additional 1.2 percent on Monday. But the real pressure has been felt in the bigger and more closely watched bond market. The value of outstanding United States government 10-year notes has fallen 10 percent since a high in early May. The anxiety has been heightened by recent instability in the Chinese banking sector,

where lending has shown signs of freezing up. That led Chinese stocks down particularly sharply, with the Shanghai composite index ending Monday down 5.3 percent. Now, the Times addresses the cause of this speculative bubblecheap money by the FED. The money the Fed spends on bonds is supposed to bolster the economy, but the cheap money coming from the Fed has also made it less expensive and easier for investors to make large, increasingly speculative bets on bond prices. The Feds unusual bond purchases have given it far more influence over the market than at past turning points for interest rates. Thats Peter Schiffs point of view as well: The Fed is trying to reflate a phony economy... For the better part of six years the FOMC has been doing its best to give away money. [but only to insider, big banks who have been investing only in the speculative markets] On an institutional level money is essentially free. The notion driving this Federal Reserve largesse was the idea that free money would get spent, thus stimulating the economy. There should be inflation right now. Instead the economy is listless, almost sedated. If market participants seem on edge it's only because everything they once believed to be true is either being shown to be utterly false or the delay between cause and effect is so long that the theory is pointless. Traders and economists are being forced to rethink models, investments and philosophies in real time. If there is inflation it's not measurable. If unemployment is falling it's all but imperceptible pace.
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The headlines about the Fed's subtle change in policy is bunk. Ben Bernanke's position has never changed. He will stimulate until inflation as measured by the Fed gets too heated up or unemployment falls to levels obviating the need for artificially low rates. Those predicting the imminent collapse of the economy were cheering the sudden fall of the stock market as a harbinger of collapse to come. Eric King of King World News led the charge that The World Is Now On The Edge Of Total Collapse. But like many others he doesnt understand the Powers That Be (PTB) that still have a lot more they can do to inflate and keep things bailed out. The claims from his experts may be true, but Kings dire conclusions that the conditions described must lead to imminent collapse are not necessarily true. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this powerful interview. Eric, the whole world is panicking over Bernankes hint that the Fed might start tapering QE. Before we look at why that will be impossible for the Fed to do for any period of time in the US [True, but returning to buying the Treasurys debt doesnt necessarily mean collapse or hyperinflation]. Fitch just came out and said that Chinas credit model is falling apart. [Untrue. Fitch said The liquidity in China is under tremendous pressure which is different than collapse]. The shadow banking system is now at $2 trillion and 50% of debt is rolled over every 3 months, and 75% of Chinas debt is rolled over every 3 to 6 months. [and, they can keep doing that for a long time]

We are seeing the same thing in the US. Both China and the US are printing more and more money and not getting any return for it. So this is becoming a much more dangerous situation, and because of this liquidity squeeze in China, the entire global financial system could become unhinged. All of this will lead to more money printing and pressure on the currencies. But regardless, China is certainly dealing with a very high rate of inflation at this point. Wrong again, Chinas rate of inflation is barely over 10% but thats hardly hyper inflation. It creates bad incentives within an economy and lots of hardship for those who cant raise their incomes fast enough, but it doesnt mean imminent collapse. Of course Japan is even worse. You have collapsing balance of payments and collapsing savings. You also have a population which is collapsing. Population will go from 125 million to 90 million over the next 35 years. There wont be enough young people to pay for the old. And you have falling bond markets, which will eventually collapse in Japan. All of this will ultimately lead to a collapse of the Japanese yen... the problems in Japan cannot be solved, and this will eventually lead to a problem for the whole world. Not necessarily true, especially in the short term. 35 years is NOT imminent collapse. Im in agreement that these are insurmountable problems, but King and others underestimate the PTBs ability to prolong things through keeping inflation under 10%. If we move to Europe, we have the Greek bond market plunging again and now the IMF is saying they are going to pull the plug. Germany, the strongest nation, is now finding
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itself under economic pressure. There are enough problems in the rest of the world that will necessitate printing by the Fed because we are talking about a totally interconnected system. So even if the Fed thinks they wont have to print for the US, as the rest of the world implodes the US will be forced to print whether they want to or not. Yes, Greek bonds are down around 22% and the coalition government is once again failing to hold things together. But, they predicted collapse before, and it didnt happen. I keep saying that the EU will do whatever it takes to keep the EU together. After all, this is the world showplace of globalism and they wont take failure for an answer. The EU did create a new framework for bank bailouts in anticipation of more tough times in Europe. As CNN reported, the Cyprus solution is going to apply across the entire continent. The new framework requires bondholders, shareholders and large depositors with over 100,000 euros to be first to suffer losses when banks fail. Depositors with less than 100,000 euros will be protected. Taxpayer funds would be used only as a last resort. What King exaggerates is that FED monetary creation must necessarily lead to a quick implosion. It does not. They bailed Europe out without hyperinflation, and they can do it again. Yes, eventually, the system does threaten to collapse but they can keep it going along for much longer than these pundits predict. If we move to the United States, just the hint of ending QE lead to massive stock and bond market falls worldwide. The bottom line is if the Fed stops printing the world financial system will collapse.

True, if that is what the FED really does. But it isnt. Its cutting back on QE, specifically because inflation is picking up and they have to curb it. They arent cutting back money creationjust slowing it down and showing every sign that they intend to manage these crises in order to prolong any collapse until a world war can give them coverthat way, they walk away without the blame, and have an excuse to create another fiat currency under a global government. In short, when the entire investment world is primed to watch the FED for signals of inflation or deflation, the markets these speculators dominate are going to react negatively as we have seen this week. But its not the end. Dont make decisions based upon the imminent collapse scenario. It could only happen if the FED pulled the plug and I see no signs of them doing that. If they did, they would get all the blame and that would risk causing an outcry for ending the FED. They arent that stupid, so I think youll see the march to a mild inflationary, but false, recovery will continue. NWO WITH CHINA? NOT SO FAST Kurt Nimmo of infowars.com writes this week about Kissingers remark indicating that the globalists would like to manage the world together with China. Im not buying it. The challenge is, Kissinger told the Asia Society last week, how to build a world order for the first time in history on a global basis. We talk a lot about world community but the fact is there has never been a world community before and he then suggested China and the U.S. collaborate on such an effort. Kissinger has been secretly boosting China ever since he negotiated secret terms in the Paris Peace talks to end the war in Vietnam
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including promising China US recognition, entrance into the UN Security Council and allowing China to conquer South Vietnam, saying, in essence, just give us a few years before you do it so it doesnt look like we betrayed them. The globalists who Kissinger represents are simply building up enemies for a future nuclear third world war. Collaboration with China is all the rage in Washington military circlesbecause its a command imperative coming out of globalist think tanks. But in the end, the Anglo American globalists know that China isnt going to cooperate. China wants it allnot just a piece of the action dominated by the US. SUPREME COURT STRIKE DOWN DOMA AND PROP 8 This weeks double ruling by the Supreme Court gave a huge boost to the homosexual cause and gays were out in force celebrating around the world. The Supreme Court voted to overturn the key portion of the federal Defense of Marriage Act (DOMA) which denied federal marriage benefits to gay couplesthe court ruled it was discriminatory. They also let stand a lower court ruling overturning California's Proposition 8, claiming they had no authority to rule since it was a state issue. Justice Kennedy, often the court's swing vote in close decisions, voted with the majority, allowing Chief Justice John Roberts (who many suspect is bi-sexual) and Justice Antonin Scalia to stay on the dissenting side. This is typical of how they use their control over justices. They leaned on Roberts to sustain Obamacare, but allowed him to stay on the conservative side for this onehoping to preserve conservatives faith in him as on their side. Roberts should never be trusted.

This ruling does NOT threaten any state laws that refuse to recognize gay marriage, but it will certainly boost efforts by gay and lesbian proponents to push for other states to recognize gay marriage. Sadly, there is a going-along-withthe-floor mentality among many mainstream politicians that will induce them to vote for what they incorrectly view as a wave of public support for homosexuality. Currently, 12 states and the District of Columbia authorize same-sex marriages. Im opposed to recognition of gay marriage because governments only legitimate role in having a say in even heterosexual marriage is to protect the rights of children from abuse or neglect, and gay couples cannot engender children. Even those that do via artificial insemination or via prior marriage should be treated as single parentsbecause, in fact, they are the only parent of the child. Government intervention in families must be carefully defined so as not to allow government to intrude on parental prerogatives on health and education and discipline of children that do not constitute physical abuse. Gays complain that this is a matter of fundamental right for them to be married. Thats only partly true. Yes, everyone has a right to make voluntary contracts between one another, but there is no inherent right to force other individuals nor even government to recognize those voluntary contracts. That would violate other peoples right to disassociate with those they disagree with. Whenever gays do get recognized status, they use that status to demand that public schools teach children about homosexuality as a normal alternative to marriage. No one in public schools is then allowed to speak out in condemnation or criticism of homosexuality. OBAMAS ATTACK ON COAL
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Once again the Obama administration is legislating by executive orders to the EPA. CNN reported that, President Barack Obama unveiled an aggressive new climate change strategy on Tuesday that would limit pollution from existing coal-fired power plants, and he made clear that approval of the Keystone XL pipeline depended on the project not increasing overall greenhouse gas emissions. The EPA intends to clamp down on pollution until they make it nearly impossible for the industry to comply, forcing most coal plants to shut down and destroying an entire industry. One thing coal plants are powerless to eliminate is naturally beneficial carbon dioxide emissions which the EPA is falsely calling a pollutant. If coal plants shut down, electricity bills will double in parts of the nation. IMMIGRATION BILL STEAMROLLED THROUGH THE SENATE The Washington Times summarized what happened: It took some heavy lifting, but after weeks of negotiating, fighting back the likes of Alabama Sen. Jeff Sessions (R), arm-twisting, and lots of horse-trading, the Senate passed landmark legislation, immigration reform by 68-32. Every Democrat voted for the bill as did 14 Republicans, including Gang of Eight member and 2016 presidential hopeful, Florida Sen. Marco Rubio. The other likely GOP presidential candidates Texas Sen. Ted Cruz and Kentucky Sen. Rand Paul voted no, as did the entire Republican Senate leadership.

Now the bill moves to the House where it is unlikely to pass given the current mood of Congress. Most House Republicans are strongly opposed to granting legal status to the millions of illegal immigrants, whether they overstayed visas or sneaked across the borders. House Speaker John Boehner (R-Ohio) already has said that any immigration legislation, much less a conference report with the Senate, must first win the support of a majority of the majority, following the socalled Hastert rule. There is actually a strong anti-immigration reform sentiment in the Republicancontrolled House with many of them alarmed that nearly seven million undocumented immigrants would be allowed to live here legally and on the path to citizenship. [Its not seven million, or even ten million. Its twenty to thirty million] They reflect the thinking of Sen. Sessions who claims that we cannot afford to have illegal immigrants come out of the shadows and join society, insisting that they will drive down wages and sink the GDP for more than 25 years. And, it will sink the Republicans ability to win an election, evermore, unless of course they continue the road to compromise until they no longer stand for anything conservative. The government had to make 8 million votes disappear via electronic vote fraud to help elect Obama this last election, but if amnesty ever passes, the Democrats will have an eternal majority and the nation is toast. Lastly, the latest trick toward smuggling drugs across the southern border is to use ultralight aircraft which cant easily be detected by radar. The Washington Examiner reports that
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In one California border town, at least four drug-laden, ultralight airplanes from Mexico land each night on U.S. soil, dropping off hundreds of pounds of narcotics then flying back to Mexico, all the while eluding a $100 million dollar detection system funded by American taxpayers. The U.S. Border Patrols inability to find and catch these planes, operated by the Mexican drug cartels and sometimes piloted by armed dealers, is among the emerging border security threats a House Oversight and Government Reform Committee hearing will tackle on June 27. Border patrol agents told Rep. Jason Chaffetz that despite the hefty price tag paid last year to the New York technology firm SRCTec, the sensor devises they provided are not helping agents stop the ultralights. The planes land in border towns all along the Mexican border, including El Centro, California, where multiple air drops happen every night. Success rates at detecting and capturing the planes, one border agent reported, are very low. So much for the promise of high tech border security! CORRECTION: ONLY 450 MINUTEMAN MISSILES LEFT Last week, I incorrectly stated there were 500 nuclear land based missiles in our arsenal. However, a subscriber in the know corrected that and said there are only 450 remaining. And, not all of them have multiple warheads installed. So, already the government is disarming our last nuclear deterrent. [END]