Al Peia's Blog: January 5, 2011 posts

Business / Economic / Financial

[ This link to a somewhat more cumulative blog posts page will precede current days news since most all topics remain current in terms of impact and longer-term effect and can be searched by topical index term more easily. The same is provided since the blog site http://alpeiablog.blogspot.com has just been censored as to size by google which is typical for google as nsa / cia / gov’t shill as more are becoming aware of. The same is true for microsoft, another co. that’s seen their best days and relies on the government to maintain their monopoly. Up to now the better page http://www.scribd.com/alpeia is provided for ease of formatting and clarity thereby while the Washington Post page is the real deal but without formatting http://www.washingtonpost.com/wp-srv/community/mypost/index.html?plckPersonaPage=PersonaComments&plckUserId=alpeia&newspaperUserId=alpeia . The following is the cumulative archive of blog posts / topics for 2010 as the new year starts anew: http://albertpeia.com/December312010postsarchive.htm or PDF formatted version
http://albertpeia.com/December312010postsarchive.pdf ]

[video] ADP Data Still Fighting For Credibility [ Come on! Pervasively mob infested, corrupt jersey based ADP? There’s nothin’ left in desperation for those b.s. / b.e.(bad economics/finance) talking points and action to froth the market for the frauds on wall street. This is an especially great opportunity to sell / take profits because there’s nothin’ there, beyond the smoke and mirrors. This market’s way over-bought and way over-valued! ] NEW YORK (TheStreet) -- Alan Valdes of DME Securities says the market focused on the job revision data as ADP is still viewed with skepticism.

World Food Prices Rise: Get Ready for the Riots? [ Food Riots Next? FAO Says Food Prices Surpass Record Highs Seen During 2007-2008 Bubble infowars.com / prisonplanet.com The last time food prices hit ridiculous levels, the immediate outcome was global food riots in places such as Haiti and Bangladesh. ] Tradermark ‘As the 'financialization' of every commodity of earth continues at pace, and easy money pours out of almost every major central bank, we have now reached the point where food prices have surpassed the record levels of 2008. [Feb 12, 2008: Wheat is Being Ruined by ... what else... Hedge Funds and Speculators] [Apr 28, 2008: Wall Street Grain Hoarding Brings Farmers, Consumers Near Ruin] [Apr 6, 2008: Agflation Hits Rice - Prices Up 50% in 2 Weeks] What happened back then? Just some minor issues such as rioting in many '2nd' and '3rd' world countries. Looks like we need to prepare for another hot summer. And domestically those food stamps are not going to go quite so far as they used to. [Nov 10, 2009: Walmart Executive - "There are Families Not Eating at the End of the Month"]

Oh well, just consider it collateral damage in The Bernank's plan to make us (and Goldman, JPMorgan, et al) all rich via asset inflation. (I will stop by some local food banks to let them know they can make some mad money in the markets to offset the rising prices) Just remember to blame it all on China - that was a great excuse back in 08, even though we saw once leverage was taken out of the financial system prices of commodities suddenly crashed. This repeating epidemic has no relationship at all with financial speculation at all. Nope.

On a related note - a tip of the hat to Congress for the recent ethanol funding expansion, snuck in during the lame duck. If there is one thing that makes sense when we have the potential for global food crisis, it is putting inefficient corn in our cars. [Mar 27, 2008: WSJ - Farm Lobby Beats Back Assault on Subsidies] The main saving grace at this time is rice, which is massively important in the East. Too bad there is not a rice ETF or else ~~speculators with Ben's easy money~~ supply and demand dynamics could push it up much more quickly.

Via Bloomberg:

World food prices rose to a record in December on higher sugar, grain and oilseed costs, the United Nations said, exceeding levels reached in 2008 that sparked deadly riots from Haiti to Egypt.
An index of 55 food commodities tracked by the Food and Argiculture Organizartion gained for a sixth month to 214.7 points, above the previous all-time high of 213.5 in June 2008, the Rome-based UN agency said in a monthly report. The gauges for sugar and meat prices advanced to records.
Sugar climbed for a third year in a row in 2010, and corn jumped the most in four years in Chicago. Food prices may rise more unless the world grain crop increases “significantly” in 2011, the FAO said Nov. 17.

Last month’s year-on-year rise compares with the 43 percent jump in food costs in June 2008. Record fuel prices, weather- related crop problems, increasing demand from the growing Indian and Chinese middle classes, and the push to grow corn for ethanol fuel all contributed to the crisis that year.
“In 2008 we had rapid increases in petroleum prices, fertilizer prices and other inputs,” Abbassian said. “So far, those increases have been rather constrained. It doesn’t really reduce the fear about what could be in store in the coming weeks or months.”
In response to the 2008 crisis, countries from India and Egypt to Vietnam and Indonesia banned exports of rice, a staple for half the world. Skyrocketing food prices sparked protests and riots in almost three dozen poor nations including Haiti, Somalia, Burkina Faso and Cameroon.
Rough rice last traded at $13.90 per 100 pounds in Chicago, compared with $20.21 at the end of June 2008.
The surge in the FAO food index is principally on the back of rising costs for corn, sugar, vegetable oil and meat, which are less important than rice and wheat for food-insecure countries such as Ethiopia, Bangladesh and Haiti.’

Rising Asset Prices Cannibalize U.S. Growth Simon Maierhofer, On Wednesday January 5, 2011, 7:44 pm EST

‘Rising asset prices are bad for investors! At first glance this statement makes no sense at all. Upon closer examination, however, there is much truth to this statement. Bear with me for a couple of minutes and you'll see what I mean.

Rising Oil Prices - Good or Bad?

Perception seems to have a bigger influence on news coverage than facts. A recent Wall Street Journal front-page headline read that: 'Oil back at $90 as growth gains pace.'According to the WSJ reporter, 'the recovery in oil prices is an encouraging sign of world growth.' Wait a minute. Since when are rising oil prices (NYSEArca: USO - News) good for the economy?In early 2008, when oil prices were rising, economists were in agreement that the ripple effect of rising crude would sap the American consumer of precious discretionary funds.Obviously, the concept of cause and effect is subject to interpretation. The same cause (rising oil prices) had a different effect in 2008 than it has today. In 2008 it stifled the economy; in 2011 it's viewed as a sign of improvement.Because rising oil prices affect everybody, they are often compared to a flat tax - like a sales tax. More money spent on taxes means less money spent on items that help improve the economy. In fact, some economists argue that rising crude negates much or all of the monetary benefits of the tax cut extension.

Rising Commodity Prices - Good or Bad?

If you've had your money in any single commodity like gold (NYSEArca: GLD - News), silver (NYSEArca: SLV - News), agriculture (NYSEArca: DBA - News) or broad commodity funds (NYSEArca: DBC - News), count yourself happy, but don't get greedy.Commodities had a great run, but similar to high oil prices, high commodity prices cannibalize economic growth. Why? The more money needed to spend on food staples, the more careful you have to be with your discretionary spending.In a still battered real estate market, homebuilders (NYSEArca: XHB - News) have to pass on the extra cost of rising timber, iron and copper prices. What this economy needs is an uptick in real estate prices, not a bigger price tag for building or remodeling homes.

Major Growth Engines in Trouble

Despite rising commodity prices, inflation has been a non-issue domestically, largely because retailers don't have much pricing power.According to Dr. Jim Walker, Founder of Asianomics Limited, higher commodity prices are already impoverishing large parts of emerging markets (NYSEArca: EEM - News) and are sucking the demand from the poor and middle-income class of society.Demand from the middle-class is the growth engine of a healthy economy. Stifling the growth of the world's largest consumer base - China (NYSEArca: FXI - News) - can't be good for business.

The 'New Economy'

Many readers remember a time when the U.S. was a production powerhouse, when General Electric earned profits with items of tangible value not TV stations and financial products; a time where GDP was built on ingenuity, hard work and sweat.The ingenuity portion of the equation is still alive, but look at its transition. The country's biggest and most successful company - Apple - manufactures and assembles nearly all of its products in China.The country's newest and most powerful companies - Groupon and Facebook - were created out of thin air. No disrespect to Mark Zuckerberg and Andrew Mason - they came up with the right concept at the right time - but what role does Facebook and Groupon play in the 'new economy?'Facebook is valued at $50 billion, that's more than triple the market cap of Alcoa. How and what does Facebook contribute to U.S. gross domestic products (GDP) and real organic economic growth? Yes, Facebook employs about a thousand people, but what else?How about Groupon? Groupon is an ingenious business model and has changed (or is about to change) the way Americans shop. Wall Street is cheering Groupon and can't wait for the IPO. However, the new way of buying nurtures frugality and robs restaurants and retail stores of their pricing power. Consumers just won't buy unless they get a 50%+ discount.Don't get me wrong, I have an above average appreciation for coupons - probably because there was no such thing when I grew up in Germany- but Groupon is the antidote to inflation. My guess is that even Bernanke would agree.

Air-pocket Protection

I often hear that technical indicators don't work in an environment where the Fed controls the market and inflates prices at will.If you believe the Fed is pumping up major indexes like the Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC) you must be wondering how long that will work. If this rally isn't value driven - which in my humble opinion it isn't - stocks have nowhere to go but down, eventually.In essence, the Fed is creating a new bubble in an attempt to mop up the spill left behind by the previous bust. It doesn't take an investment wizard to figure out that this bubble will also burst, eventually. When it does, it will probably get ugly.How do you invest in a market where another potential meltdown lurks behind every correction? You monitor the markets vital signs. How? Technical indicators are the best way.

Technical Analysis - More Valueable than Ever

Using purely technical gauges, the ETF Profit Strategy Newsletter has identified various long-risk entries (to the upside) since the S&P broke above its 200-day moving average (at the time at 1,115).Technical analysis includes, but is not limited to, interpreting the effect candle formations, chart patterns (such as the ascending triangle or W pattern), acceleration bands, Fibonacci levels, and trading brackets have on prices.A technical approach to the market takes the bias out of investing. Personally, I am bearish on the market, but have learned to trust technicals and wait for high probability set ups, long or short.Despite the recent sentiment extremes, which rivaled or exceeded readings recorded at the 2007 highs, the ETF Profit Strategy Newsletter has been expecting prices to reach 1,285 for the S&P. [chart]On December 12, the newsletter commented as follows on the W pattern: 'The W pattern (opposite of the bearish M pattern) is a bullish pattern. The upside target is calculated by the difference between the left side of the W and the bottom of the W (1,227 - 1,173 = 54). The difference is then added to the right breakout of 1,227 (1,227 + 54 = 1,281).'Markets tend to reverse around major resistance points, one of which surrounds the 1,281 area. What happens when stocks (or other asset classes) change direction from up to down? Will it be a temporary correction or a protracted decline?’

Stocks Get Lift From Financials and Economic Data - Midnight Trader 4:09 PM, Jan 5, 2011 – ‘

NYSE up 17.75 (+0.2%) to 8,039.93
DJIA up 31.71 (+0.3%) to 11,723
S&P 500 up 6.36 (+0.5%) to 1,277
Nasdaq up 20.95 (+0.8%) to 2,702

GLOBAL SENTIMENT

Hang Seng up 0.38%
Nikkei down 0.17%
FTSE up 0.5%

UPSIDE MOVERS
(+) ATHR sold to QCOM for $3.5 bln. QCOM up 1.7%.
(+) XING takes new mining stake.
(+) MOS continues evening gain that followed earnings beat.
(+) YOKU gains as Inception offered through premium service.
(+) PPHM starts study on pancreatic cancer treatment.
(+) OPXA to Pursue Phase 3 Clinical Study for Tovaxin in Multiple Sclerosis After Successful Meetings with FDA.
(+) WAG up after same-store sales figures.

DOWNSIDE MOVERS
(-) MTSN continues evening loss that followed earnings warning.
(-) TRID cuts outlook.
(-) DUK downgraded.

MARKET DIRECTION

Stock averages close near the top end of the day's range after a slippery start to the trading session. Gains for financial shares rallied the broader market from the choppy trade seen for much of Wednesday's session.

The S&P Financial index gained 1%. Shares of American International Group (AIG) set the tone. The insurance giant - which is in the process of selling assets to repay a U.S. bailout - said it received a $3 billion offer for its Taiwan unit, Nan Shan Life Insurance, Bloomberg reported. Yesterday, AIG shares declined after it received a proposal from a local Taiwan company to buy a stake in AIG's Taiwan unit. The proposal from home security company Taiwan Secom Group is seen as pleasing regulators but likely is contrary to AIG's interests.

Early economic data supported stock gains. The ADP Employer Services survey showed a rise in private payrolls in December of 297,000, nearly triple the number forecast by economists. The report came two days before the government's employment report, and more evidence of improvement in the still weak job market could support multiyear highs for stock averages.

Also reported, the Institute for Supply Management reported the vast U.S. services sector grew in December at its fastest pace in more than four years.

The December ISM non-manufacturing gauge came in at 57.1, up 2.1 points from November and better than MarketWatch-compiled consensus expectation among economists for 55.6. The employment sub-index decreased 2.2 percentage points to 50.5, indicating growth in employment for the fourth consecutive month, but at a slower rate.

Commodities finished mixed as crude futures gained, natural gas plummeted and gold futures ended at a three-week low.

Crude oil for February delivery finished up $0.92, or 1%, to $90.30 a barrel. In other energy futures, heating oil was up 1.43% to $2.54 a gallon while natural gas was plummeted by 4.11% to $4.47 per million British thermal units.

Meanwhile, gold futures dipped to their lowest level in three weeks. Bullion contracts came off lows though as investors bought on the decline.

Gold for February delivery finished down $5.10 to $1,373.70 an ounce. In other metal futures, silver was down 4.8% to $29.64 a troy ounce while copper rose 0.69% to $4.39 a pound.

The U.S. dollar index (DXY) is up 1.1% to $80.32.’

Municipal Debt Threatens U.S. Economy Lim ‘The debt crisis that has taken down banks, and even countries, threatens more than 100 American municipalities this year. According to Meredith Whitney, who works as a US research analyst, local and state debts are the biggest concerns to the US economy today. It is large enough to derail economic recovery.

She said that,

There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults.

American states and cities have a total debt load of around $2 trillion.

New Jersey government Chris Christie summarized it clearly,

We spent too much on everything. We spent money we didn’t have. We borrowed money just crazily. The credit card’s maxed out, and it’s over. We now have to get to the business of climbing out of the hole. We’ve been digging it for a decade or more. We’ve got to climb now, and a climb is harder.

Cities from Madrid to Detroit are struggling to pay off even just basic services such as street cleaning. Ms. Whitney’s comments are likely to put focus on municipal bonds. She is ranked as one of the most influential women in American business. While working for Oppenheimer, a New York investment bank, she predicted that Citibank will cut its dividends. Although she suffered from a lot of criticisms then, her analysis proved to be correct as the bank was forced to seek government bail-out. Ms. Whitney has since started her own consulting firm.

Deficit Already Affecting Public Spending

American states have spent almost $500 billion more than tax revenues. In addition, they face another $1 trillion hole in pension funds. Already, Detroit is cutting road repairs, cleaning services, police, and lighting expenditures which affects 20% of the population. The city has suffered from nearly two decades of decline due to US auto outsourcing. It no longer generates enough wealth to provide services to its 900,000 inhabitants. Meanwhile, Illinois is suffering from similar ills after spending twice as much as it generated in tax. It is already six months behind on creditor payments. It owes $400 million to the University of Illinois alone and has 21% chances of defaulting on its debts. According to CMA Datavision which is a derivatives information company, this percentage is more than any other state. Other states such as California and Arizona are also taking steps to solve their debt problems. California has raised university tuition fees by 32% while Arizona sold its Supreme Court and state capitol buildings before leasing them back. Florida is another state that may be hit by a default; this state is the center of a real estate boom that went best recently.

Philip Brown, the managing director of Citigroup in London said that,

It’s all part of the same parcel: public sector indebtedness needs to be cut, it needs a lot of austerity and it hit the central government first, and now is hitting local bodies.

Unlike banks and other financial institutions, “cities are their own”. According to Andres Rodriguez-Pose, a professor of economic geography at the London School of Economics, “cities will have to pay for their debts, and in some cases they will have to carry out dramatic cuts, such as Detroit’s.” If there is a city that best symbolizes distressed local finances, it is Vallejo in California. Vallejo is a former US navy town located near San Francisco. It has entered into Chapter Nine bankruptcy protection in 2008 and the effects are still resonating up to this day. The city is trying to negotiate with the unions, which has refused to accept a plan to cut salary two years ago. Vallejo has a population of around 120,000 but it carries $195 million in unfunded pension obligations. The town does not have enough local industry to sustain its finances; property tax collection dropped dramatically upon the collapse of the real estate market. Vallejo is given a C rating by Standard & Poor, the lowest level. US cities are more susceptible to defaults than their European counterparts because it relies mainly on municipal bonds while European towns depend on government bailouts and bank loans.

Gold Expectations for 2011

Now, let’s take a look at long-term gold chart (courtesy of StockCharts.com) to see how bullion fared this week:

[chart] For some time, gold has tried to break the upper border of the rising trend channel. Gold prices have been wavering from $1,340 to $1,423 since October 5 with a general upward slope. It has often just fallen by a fraction below the rising trend line. There are signs that a break-out could be seen soon. We take into account that gold is quite bullish at the onset of a new year. The $1,600 target still seems realistic for the early part of 2011. 2010 ended on a high note for precious metals. Gold ended the year at $1,421 an ounce while silver is at $30.91 an ounce. Overall, gold prices rose by 30% in 2010 while silver leaped 80%. Prognostications abound in 2011. These forecasts consider the outlook for currencies, inflation, and interest rates in the world’s largest economies. We’ll examine some of the trends that may influence gold prices:Gold prices tend to rise in times of projected or actual inflation due to the bullion’s status as a “safe haven” asset. Investors who are seeking an asset that reacts favorably to currency devaluation and inflation typically move some of their wealth into gold. Right now, the Fed is more concerned about deflation rather than inflation. As such, they show little reluctance to flood the US economy with dollars. Meanwhile, countries such as India and China want stronger economic growth. The result of this is higher inflation. China’s prices are now 5.1% higher compared to a year ago while India projects an inflation of 5.5% by March 2011. But the correlation between high inflation and high gold prices isn’t set in stone. Although more inflation will initially favor high gold prices, the countervailing policy of keeping interest rates to control inflation sometimes makes interest-bearing instruments more attractive. As of now, however, rates are not high enough to have an impact on gold prices. Historically, the first two months of the year are good for gold. Buyers seek back the gold positions they shed going into the New Year. The continuing inflationary concerns can further support prices in 2011. The Reserve Bank of India said that inflation is not slowing down as quickly as desired. In the US, there are reports that companies are experiencing higher costs for staffing and/or materials, but these costs are not yet being felt by the customers. According to Frank Holmes, the CEO of US Global Investors, “The two pillars of gold are, in any country’s currency, are negative real interest rate and deficit spending.” Mr. Holmes believes that low interest rates won’t go away anytime soon as this would be “catastrophic” to the financial system.’

Oil Continues Steady Climb Kurt Nimmo | Oil exec predicted $5 per gallon gas prices within two years.

Russia-China oil pipeline opens BBC News | The first oil pipeline linking the world’s biggest oil producer, Russia, and the world’s biggest consumer of energy, China, has begun operating.

Oil Continues Climb In Line With Lindsey Williams’ Prediction On December 16, Lindsey Williams told Alex Jones the price of crude oil will soon hit $150-200 per barrel and this would translate into gas prices in the range of $4-5 per gallon. Williams, an ordained Baptist minister who went to Alaska in 1971 as a missionary, was told about the price increase by insiders in the oil industry he had befriended.

Everything Is Falling Apart: America’s Decaying Infrastructure If you haven’t noticed lately, America is literally falling apart all around us. Decaying infrastructure is everywhere. Our roads and bridges are crumbling and are full of holes.

When States Default: 2011, Meet 1841 Land values soared. States splurged on new programs. Then it all went bust, bringing down banks and state governments with them.

Oil Prices Enter The Danger Zone High oil prices threaten to derail the fragile economic recovery among developed nations this year, the leading energy watchdog has warned, putting pressure on the Opec oil cartel to increase production.

World Food Prices Rise to Record on Sugar, Meat Costs World food prices rose to a record in December on higher sugar and meat costs, the United Nations said, exceeding levels reached in 2008 that sparked deadly riots from Haiti to Egypt.

Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Then Ever The financial collapse that so many of us have been anticipating is seemingly closer then ever. Over the past several weeks, there have been a host of ominous signs for the U.S. economy.

The Economic Collapse
Dec 17, 2010

The financial collapse that so many of us have been anticipating is seemingly closer then ever. Over the past several weeks, there have been a host of ominous signs for the U.S. economy. Yields on U.S. Treasuries have moved up rapidly and Moody’s is publicly warning that it may have to cut the rating on U.S. government debt soon. Mortgage rates are also moving up aggressively. The euro and the U.S. dollar both look incredibly shaky. Jobs continue to be shipped out of the United States at a blistering pace as our politicians stand by and do nothing. Confidence in U.S. government debt around the globe continues to decline. State and local governments that are drowning in debt across the United States are savagely cutting back on even essential social services and are coming up with increasingly “creative” ways of getting more money out of all of us. Meanwhile, tremor after tremor continues to strike the world financial system. So does this mean that we have almost reached a tipping point? Is the world on the verge of a major financial collapse?

Let’s hope not, but with each passing week the financial news just seems to get eve worse. Not only is U.S. government debt spinning wildly toward a breaking point, but many U.S. states (such as California) are in such horrific financial condition that they are beginning to resemble banana republics.

But it is not just the United States that is in trouble. Nightmarish debt problems in Greece, Spain, Portugal, Ireland, Italy, Belgium and several other European nations threaten to crash the euro at any time. In fact, many economists are now openly debating which will collapse first – the euro or the U.S. dollar.

Sadly, this is the inevitable result of constructing a global financial system on debt. All debt bubbles eventually collapse. Currently we are living in the biggest debt bubble in the history of the world, and when this one bursts it is going to be a disaster of truly historic proportions.

So will we reach a tipping point soon? Well, the following are 25 signs that the financial collapse is rapidly getting closer….

#1 The official U.S. unemployment rate has not been beneath 9 percent since April 2009.

#2 According to the U.S. Census Bureau, there are currently 6.3 million vacant homes in the United States that are either for sale or for rent.

#3 It is being projected that the U.S. trade deficit with China could hit 270 billion dollars for the entire year of 2010.

#4 Back in 2000, 7.2 percent of blue collar workers were either unemployed or underemployed. Today that figure is up to 19.5 percent.

#5 The Chinese government has accumulated approximately $2.65 trillion in total foreign exchange reserves. They have drained this wealth from the economies of other nations (such as the United States) and instead of reinvesting all of it they are just sitting on much of it. This is creating tremendous imbalances in the global economy.

#6 Since the year 2000, we have lost 10% of our middle class jobs. In the year 2000 there were approximately 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.

#7 The United States now employs about the same number of people in manufacturing as it did back in 1940. Considering the fact that we had 132 million people living in this country in 1940 and that we have well over 300 million people living in this country today, that is a very sobering statistic.

#8 According to CoreLogic, U.S. housing prices have now declined for three months in a row.

#9 The average rate on a 30 year fixed rate mortgage soared 11 basis points just this past week. As mortgage rates continue to push higher it is going to make it even more difficult for American families to afford homes.

#10 22.5 percent of all residential mortgages in the United States were in negative equity as of the end of the third quarter of 2010.

#11 The U.S. monetary base has more than doubled since the beginning of the most recent recession.

#12 U.S. Treasury yields have been rising steadily during the 4th quarter of 2010 and recently hit a six-month high.

#13 Incoming governor Jerry Brown is scrambling to find $29 billion more to cut from the California state budget. The following quote from Brown about the desperate condition of California state finances is not going to do much to inspire confidence in California’s financial situation around the globe….

“We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”

#14 24.3 percent of the residents of El Centro, California are currently unemployed.

#15 The average home in Merced, California has declined in value by 63 percent over the past four years.

#16 Detroit Mayor Dave Bing has come up with a new way to save money. He wants to cut 20 percent of Detroit off from essential social services such as road repairs, police patrols, functioning street lights and garbage collection.

#17 The second most dangerous city in the United States – Camden, New Jersey – is about to lay off about half its police in a desperate attempt to save money.

#18 In 2010, 55 percent of Americans between the ages of 60 and 64 were in the labor market. Ten years ago, that number was just 47 percent. More older Americans than ever find that they have to keep working just to survive.

#19 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#20 The U.S. government budget deficit increased to a whopping $150.4 billion last month, which represented the biggest November budget deficit on record.

#21 The U.S. government is somehow going to have to roll over existing debt and finance new debt that is equivalent to 27.8 percent of GDP in 2011.

#22 The United States had been the leading consumer of energy on the globe for about 100 years, but this past summer China took over the number one spot.

#23 According to an absolutely stunning new poll, 40 percent of all U.S. doctors plan to bail out of the profession over the next three years.

#24 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer. Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#25 All over the United States, local governments have begun instituting “police response fees”. For example, New York Mayor Michael Bloomberg has come up with a plan under which a fee of $365 would be charged if police are called to respond to an automobile accident where no injuries are involved. If there are injuries as a result of the crash that is going to cost extra.

16 Nightmarish Economic Trends To Watch Carefully In 2011 The American Dream Dec 15, 2010 ‘If you only watch the “economic pundits” on television, it can be very confusing to figure out exactly what is happening with the U.S. economy. One pundit will pull out a couple statistics that got a little bit better over the past month and claim that we have entered a time of solid recovery. Another pundit will pull out a couple statistics that got a little worse over the past month and claim that we are headed for trouble. So what is the truth? Well, if you really want to get a clear idea of what is really going on you have to look at the long-term trends. There are some economic trends which just keep getting worse year after year after year, and it is those trends that tell the real story of the decline of our economic system.

As you examine the long-term trends, you quickly come to realize that the U.S. is trapped in an endless spiral of debt, the middle class is being wiped out, the U.S. dollar is being destroyed and America is rapidly becoming a post-industrial wasteland.

Posted below are 16 nightmarish economic trends to watch carefully in 2011. It is becoming exceedingly apparent that unless something is done rapidly we are heading for an economic collapse of unprecedented magnitude….

#1 Do you want to see something scary? Just check out the chart below. Since the beginning of the economic downturn, the U.S. monetary base has more than doubled. But don’t worry – Federal Reserve Chairman Ben Bernanke has promised us that this could never cause inflation. In fact, Bernanke says that we need to inject even more dollars into the economy. So if you are alarmed by the chart below, you are just being irrational according to Bernanke….

[chart]

#2 Thousands of our factories, millions of our jobs and hundreds of billions of dollars of our national wealth continue to be shipped overseas. In 1985, the U.S. trade deficit with China was 6 million dollars for the entire year. In the month of August alone, the U.S. trade deficit with China was over 28 billion dollars. Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.

#3 The United States is rapidly becoming a post-industrial wasteland. Back in 1959, manufacturing represented 28 percent of all U.S. economic output. In 2008, it represented only 11.5 percent and it continues to fall. Sadly, the truth is that America is being deindustrialized. As of the end of 2009, less than 12 million Americans worked in manufacturing. The last time that less than 12 million Americans were employed in manufacturing was in 1941.

#4 The number of Americans that have been out of work for an extended period of time has absolutely exploded over the last few years. As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer. Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#5 The middle class continues to be squeezed out of existence. According to a poll taken in 2009, 61 percent of Americans ”always or usually” live paycheck to paycheck. That was up substantially from 49 percent in 2008 and 43 percent in 2007.

#6 The number of Americans living in poverty is absolutely skyrocketing. 42.9 million Americans are now on food stamps, and one out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government. Unfortunately, many of those that have been hardest hit by this economic downturn have been children. According to one new study, approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.

#7 Many American families have been pushed beyond the breaking point during this economic downturn. Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008. The final number for 2010 is expected to be even higher.

#8 The U.S. real estate market continues to stagnate. During the third quarter of 2010, 67 percent of mortgages in Nevada were “underwater”, 49 percent of mortgages in Arizona were “underwater” and 46 percent of mortgages in Florida were “underwater”. So what happens if home prices go down even more?

#9 More elderly Americans than ever are being forced to put off retirement and continue working. In 2010, 55 percent of Americans between the ages of 60 and 64 were in the labor market. Ten years ago, that number was just 47 percent. Unfortunately, it looks like this problem will only get worse in the years ahead. In America today, approximately half of all workers have less than $2000 saved up for retirement.

#10 In the United States today, there are simply far too many retirees and not nearly enough workers to support them. Back in 1950 each retiree’s Social Security benefit was paid for by 16 workers. Today, each retiree’s Social Security benefit is paid for by approximately 3.3 workers. By 2025 it is projected that there will be approximately two workers for each retiree.

#11 Financial assets continue to become concentrated in fewer and fewer hands. For example, the “big four” U.S. banks (Citigroup, JPMorgan Chase, Bank of America and Wells Fargo) had approximately 22 percent of all deposits in FDIC-insured institutions back in 2000. As of the middle of 2009 that figure was up to 39 percent.

#12 The Federal Reserve has been destroying the value of the U.S. dollar for decades. Since the Federal Reserve was created in 1913, the U.S. dollar has lost over 95 percent of its purchasing power. An item that cost $20.00 in 1970 would cost you $112.35 today. An item that cost $20.00 in 1913 would cost you $440.33 today.

#13 Commodity prices continue to soar into the stratosphere. Ten years ago, the price of a barrel of oil hovered around 20 to 30 dollars most of the time. Today, the price of oil is rapidly closing in on 100 dollars a barrel and there are now fears that it could soon go much higher than that.

#14 Federal government spending is completely and totally out of control. The U.S. government budget deficit increased to a whopping $150.4 billion last month, which represented the biggest November deficit on record. But our politicians can’t seem to break their addiction to debt. In fact, Democrats are trying to ram through a 1,924 page, 1.1 trillion dollar spending bill in the final days of the lame-duck session of Congress before the Republicans take control of the House of Representatives next year.

#15 The U.S. national debt is rapidly closing in on 14 trillion dollars. It is more than 13 times larger than it was just 30 short years ago. According to an official U.S. Treasury Department report to Congress, the U.S. national debt is projected to climb to an estimated $19.6 trillion by 2015.

#16 Unfortunately, the official government numbers grossly understate the horrific nature of the crisis we are facing. John Williams of Shadow Government Statistics has calculated that if the federal government would have used GAAP accounting standards to measure the federal budget deficit for 2009, it would have been approximately 8.8 trillion dollars. Not only that, but John Williams now says that U.S. government debt is so wildly out of control that it is mathematically impossible for us to “grow” our way out of it….

The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis. In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit. Further, the U.S. has no potential way to grow out of this shortfall.

The more one examines the U.S. economic situation, the more depressing it becomes. The U.S. financial system is trapped inside a horrific debt spiral and we are headed straight for economic oblivion.

If our leaders attempt to interrupt the debt spiral it will plunge our economy into a depression. If our leaders attempt to keep the debt spiral going for several more years it will just make the eventual crash even worse. Either way, we are headed for a financial implosion that will be truly historic.

The debt-fueled good times that we have been enjoying for the last several decades are rapidly coming to an end. Unfortunately for the tens of millions of Americans that are already suffering, our economic problems are only going to get worse in the years ahead.’

Jobless Recovery?: 25 Unemployment Statistics That Are Almost Too Depressing To Read ‘… Unemployment is up again! That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher. So are you enjoying the jobless recovery? Economic Collapse Blog Dec 4, 2010 ‘Guess what? Unemployment is up again! That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher ... Times are really, really tough and unfortunately the long-term outlook is very bleak. We should have compassion on those who are out of work right now, because soon many of us may join them.

The following are 25 unemployment statistics that are almost too depressing to read….

#1 According to the Bureau of Labor Statistics, the U.S. unemployment rate for November was 9.8 percent. This was up from 9.6 percent in October, and it continues a trend of depressingly high unemployment rates. The official unemployment number has been at 9.5 percent or higher for well over a year at this point.

#2 In November 2006, the “official” U.S. unemployment rate was just 4.5 percent.

#3 Most economists had been expecting the U.S. economy to add about 150,000 jobs in November. Instead, it only added 39,000.

#4 In the United States today, there are over 15 million people who are “officially” considered to be unemployed for statistical purposes. But everyone knows that the “real” number is even much larger than that.

#5 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer. Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#6 The number of “persons not in the labor force” in the United States recently set another new all-time record.

#7 It now takes the average unemployed American over 33 weeks to find a job.

#8 When you throw in “discouraged workers” and “underemployed workers”, the “real” unemployment rate in the state of California is actually about 22 percent.

#9 In America today there are not nearly enough jobs for everyone. In fact, there are now approximately 5 unemployed Americans for every single job opening.

#10 According to The New York Times, Americans that have been unemployed for five weeks or less are three times more likely to find a new job in the coming month than Americans that have been unemployed for over a year.

#11 The U.S. economy would need to create 235,120 new jobs a month to get the unemployment rate down to pre-recession levels by 2016. Does anyone think that there is even a prayer that is going to happen?

#12 There are 9 million Americans that are working part-time for “economic reasons”. In other words, those Americans would gladly take full-time jobs if they could get them, but all they have been able to find is part-time work.

#13 In 2009, total wages, median wages, and average wages all declined in the United States.

#14 As of the end of 2009, less than 12 million Americans worked in manufacturing. The last time that less than 12 million Americans were employed in manufacturing was in 1941.

#15 The United States has lost at least 7.5 million jobs since the recession began.

#16 Today, only about 40 percent of Ford Motor Company’s 178,000 workers are employed in North America, and a big percentage of those jobs are in Canada and Mexico.

#17 In 1959, manufacturing represented 28 percent of U.S. economic output. In 2008, it represented 11.5 percent.

#18 Earlier this year, one poll found that 28% of all American households had at least one member that was looking for a full-time job.

#19 In the United States today, over 18,000 parking lot attendants have college degrees.

#20 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#21 As the employment situation continues to stagnate, millions of American families have decided to cut back on things such as insurance coverage. For example, the percentage of American households that have life insurance coverage is at its lowest level in 50 years.

#22 Unless Congress acts, and there is no indication that is going to happen, approximately 2 million Americans will stop receiving unemployment checks over the next couple of months.

#23 A poll that was released by the Pew Research Center back in June discovered that an astounding 55 percent of the U.S. labor force has experienced either unemployment, a pay decrease, a reduction in hours or an involuntary move to part-time work since the economic downturn began.

#24 According to Richard McCormack, the United States has lost over 42,000 factories (and counting) since 2001.

#25 In the United States today, 317,000 waiters and waitresses have college degrees.

But this is what we get for creating the biggest debt bubble in the history of the world. For decades we have been digging a deeper hole for ourselves by going into increasingly larger amounts of debt. In America today, our entire economy is based on debt. Even our money is debt. We were fools if we ever thought this could go on forever. Just think about it. Have you ever gone out and run up a bunch of debt? It can be a lot of fun sitting behind the wheel of a new car, running your credit cards up to the limit and buying a beautiful big house that you cannot afford. But in the end what happens? It always catches up with you. Well, our collective debt is starting to catch up with us. There is a sea of red ink on every level of American society. It is only a matter of time before it destroys our economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT. THINGS ARE GOING TO GET A WHOLE LOT WORSE. A HORRIFIC ECONOMIC COLLAPSE IS COMING, AND IT IS GOING TO BE VERY, VERY PAINFUL.’

Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!" 11-25-10 ‘The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at altask@yahoo.com’

Timid Tuesday: Is it Safe? Davis ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘

17 Things Worrying Investors Lloyd's Wall of Worry

Worry Count: 17

CHINA: 1,330,044,605 people can’t be wrong.

The PIIGS: Fasten your seatbelts. It’s gonna be a long, bumpy, expensive, weird, (insert your own adjective here) freak show of a ride.

CALIFORNIA AND THE OTHER 49 STATES: Not yet as dire as “The PIIGS”. Might I suggest the classier moniker of “The Prosciuttos” for the American basket-case states?

QE II: Gobble?

U.S. ECONOMY: The “Punky Brewster” of the global economic landscape.

UNEMPLOYMENT: Only thing worse than losing your job, losing your unemployment check. At least there’s the holiday season to cheer everyone up (read: heavy sarcasm).

TAXES: Praying to the Financial Market Gods that we don’t have another TARP-like vote fiasco.

OBAMA ADMINISTRATION PART II: Still two years before the Pres. election and the peanut gallery is already pleading for a Hail Mary Pass to get them back in the game.

HFT: Instead of beating up these liquidity supplying traders, let’s honor them with their very own stock exchange. But wait -- with no retail saps to pick-off they will never get that Day 1 opening bell tick. Perfect.

XMAS 2010: As my professor friend Nick says, “Nowadays Americans are dining off of two menus – The Million Dollar and the $0.99 Cent.” And both are pissed about it.

CURRENCIES: Poor Mr. Greenback. Does someone need a hug?

HOUSING CRISIS: Price Stabilization – Are we there yet? Just a little bit more. Are we there yet? Just a little bit more. Are we there yet? Just a little bit more….

INFLATION/DEFLATION: Fed Chief Ben B. comes out swinging from his heels in defense of inflation promotion. Don’t punch yourself out as this one is likely to go the distance.

COMMODITIES: Corrected but still sky high; fortunately these prices are only affecting core, basic, life-sustaining necessities and sparing our electronic gadgets and plus-sized SUVs. Whew!

INSIDER TRADING: Another black eye for Hedge Funds. I estimate that makes black eye number 6,597.

INTEREST RATES: South Korea and China slowly turning up the dial to “11”. On the other hand the U.S. has removed the dial altogether. This never ends well….

NORTH KOREA: Here we go again.

Consumer confidence down, LiveLeak.com - Loonie closes above U.S. dollar … dollar for first time closes below parity on Canadian loonie … hey, hey, hey … 'Huge' stock decline — but not yet MarketWatch - Brimelow ‘Commentary: Adens … ‘mega trend’ looks grim … The Adens expect a hyperinflationary collapse … ‘ Oh come on! Manipulated dollar decline with inflated earnings, stock prices thereby, etc., … we’ve seen this all before … the last few crashes … Jobless rate jumps to 9.8% as hiring slows (Washington Post) [ The reality is not a mystery! The nation’s been thrown under the bus for the greater good (wealth) of the very few (frauds on wall street, etc.); wall street giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION: Come on! This is gettin’ even more downright ridiculous (if that’s even possible)! Pending home foreclosure / distress sales up, oil prices (and oil stocks) up, debased dollar down, plus a little familiar ‘better than expected’ thrown in along with prospects of a ‘no-recession bernanke’ market-frothing bull session on 60 minutes and, voila, suckers’ rally into the close to keep the suckers suckered! What’s good for the frauds on wall street is bad for just about everyone else which includes the vast majority of people and businesses, domestically and globally, as current dollar manipulation / debasement ultimately results in higher costs and loss of purchasing power (ie., oil, etc.). Clearly, this is one of those fraudulent wealth transfers to the frauds on wall street et als which will ultimately be paid for by those who least are in a position to afford it, courtesy of the ever more worthless Weimar dollar, etc., inflating earnings, eps, lowering p/e multiples, etc., see infra. This is an especially great time to sell / take profits while you can since there's much worse to come! Previous: Rosy numbers on consumer sentiment, unemployment (far better than private forecasts) from the government prior to the holiday so-called ‘shop till you drop’? How can anyone believe anything they say? Najerian interviewed by Motek chimes in with the reason for good retail cheer; viz., people have stopped paying their mortgages and are using the funds to purchase retail goods; while Davidowitz adds that with record numbers of americans on food stamps, real unemployment at 17+, and wall street giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION … the high end stores / jewelers will do well … daaaaah! And, with insiders and wall street frauds selling into the bubble as preceded last crash, this is an especially great opportunity to sell / take profits! Suckers’ rally on light volume, full moon, and government complicity (false data / reports) to keep suckers suckered (easy for the wall street frauds to do with just a mouse click / push of the button – and, they know all those technical trade lines that are easy to program in this current phase of the scam/fraud with the debased dollar). Keep in mind, the totally mindless blather from the ‘cottage industries’ of and fraudulent wall street itself in talking up lower P/E multiples when the same is a direct result of the debasement of the dollar and the consequent manipulation / translation (not real, see Davis, infra) which preceded the financial crisis / last crash. Unemployment, trade, deficit, etc., numbers continue decidedly worse than expected along with other negative data (and in the ‘wrong direction’, that spin accorded ‘down but not as bad as before’ b* s* ) yet the market has rallied like no tomorrow with used home foreclosure / distressed sales, though abated owing to ‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo lemmings of Europe have jumped on the fraudulent defacto bankrupt american crazy train propelled to the precipice also as if no tomorrow. This is about keeping the suckers sucked in with the help of a market-frothing pre-election debased dollar for favorable currency translation and paper (but not real when measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a bubble as in the last crisis to facilitate the churn-and-earn, particularly with computerized (and high frequency) trades and which commissions they’ll get again on the way down. There is nothing to support these overbought stock prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even wall street shill, the senile Buffett is saying we’re still in a recession (depression) [ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that 10% is the E that gets divided from the P and gives us a much better price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’ The bull market that never was / were beyond wall street b.s. when measured in gold ] This is a great opportunity to sell / take profits (these lower dollar, hyperinflationary currency manipulations / translations to froth paper stocks will end quite badly as in last crash)! This is a global depression. This is a secular bear market in a global depression. The past up moves were manipulated bull (s***) cycles (at best) in a secular bear market. This has been a typically manipulated bubble as has preceded the prior crashes with great regularity that the wall street frauds and insiders commission and sell into. This is a typical wall street ‘programmed computerized high-frequency churn and earn pass the hot potato scam / fraud as in prior crashes ( widely reported, high-frequency trading routinely accounts for more than 50% of daily U.S. equity trading volume and regularly approaches 70%. )’. This national decline, economic and otherwise, will not end until justice is served and the wall street frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed.The Stock Market's Long Decline Has Begun Smith ]

(1-5-11) Dow 11,722 +31 Nasdaq 2,702 +20 S&P 500 1,276 +6 [CLOSE- OIL $90.35 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.00 (reg. gas in LAND OF FRUITS AND NUTS $3.20 REG./ $3.29 MID-GRADE/ $3.39 PREM./ $3.79 DIESEL) / GOLD $1,376 (+24% for year 2009) / SILVER $29.35 (+47% for year 2009) PLATINUM $1,731 (+56% for year 2009) / DOLLAR= .76 EURO, 83 YEN, .64 POUND STERLING, ETC. (How low can you go - LOWER)/ http://www.federalreserve.gov/releases/h15/update 10 YR NOTE YIELD 3.48% …..… AP Business Highlights ...Yahoo Market Update... T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies - Domestic / International This Is a Secular Bear Market and The End of Buy and Hold … and Hope MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10 6 Theories On Why the Stock Market Has Rallied 3-9-10 [archived website file] Risks Lurk for ETF Investors The bull market that never was/were beyond wall street b.s. when measured in gold Property Values Projected to Fall 12% in 2010 Jan 31, 2010 The Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010 01-13-10 Forecast for 2010 from Seeking Alpha Contributor THE COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer (01-15-10) 11 Clear Signs Economy Sinking Economic Black Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover Current Economic / Fiscal Charts Trendsresearch.com forecast for 2009 1-7-10 Crash is coming! ‘WORST ECONOMIC COLLAPSE EVER’ Must Read Economic / Financial Data This Depression is just beginning The coming depression… thecomingdepression.net MUST READ: JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on the S&P) by TPC The Next Wave of Collapse is Coming Sooner than you think Sliding Back Into the Great Depression ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!

National / World

Confirmed: Ventura’s Conspiracy Theory Episodes Disappearing from DVRs Kurt Nimmo | Concerted effort by TiVo, AT&T, Comcast to memory hole Police State FEMA show.

Choice Of A New World Order Jason Douglass | High fructose corn syrup is engineered to make you fat and unhealthy.

Recipe for a Successful 2011 Ron Paul | Will a new Congress elected on the energy of the Tea Party movement find the courage to change course?

Censored Jesse Ventura Show On FEMA Camps Survives On You Tube Infowars.com | During his last appearance on the Alex Jones Show, Jesse Ventura confirmed that TruTV was forced to pull the show from their schedule due to government threats.

Big Sis Responds In Lawsuit To Suspend TSA Scanners The DHS claims that the scanners are fully compliant with Constitutional requirements and that all other claims that the body imaging program is unlawful are “meritless”, “baseless” and “unfounded”.

Food Riots Next? FAO Says Food Prices Surpass Record Highs Seen During 2007-2008 Bubble The last time food prices hit ridiculous levels, the immediate outcome was global food riots in places such as Haiti and Bangladesh.

‘Disorientated and wearing just one shoe’: Bizarre last sighting of top White House aide found murdered and dumped in landfill The top Pentagon aide found dead at a landfill site was seen in a confused state 48 hours before his death wandering around the wrong car park and wearing only one shoe.

Oil Continues Climb In Line With Lindsey Williams’ Prediction On December 16, Lindsey Williams told Alex Jones the price of crude oil will soon hit $150-200 per barrel and this would translate into gas prices in the range of $4-5 per gallon. Williams, an ordained Baptist minister who went to Alaska in 1971 as a missionary, was told about the price increase by insiders in the oil industry he had befriended.

Mass Bird & Fish Die-Offs Go Global, Spark End Times Panic The mass bird and fish die-offs that have affected parts of the U.S. over the last week have now gone global, with Sweden, Brazil and New Zealand becoming the latest countries to experience a phenomena that has sparked both scientific intrigue and apocalyptic panic in equal measure.

Censored Jesse Ventura Show On FEMA Camps Survives On You Tube We urge you to watch the videos below because they might not be around for much longer. Jesse Ventura’s Conspiracy Theory show about the police state and FEMA camps, which TruTV never aired because of constant government harassment and pressure, has already been memory-holed and is now under threat of being removed from You Tube as well.

Israel said it would keep Gaza near collapse: WikiLeaks Israel told US officials in 2008 it would keep Gaza’s economy “on the brink of collapse” while avoiding a humanitarian crisis, according to U.S. diplomatic cables published by a Norwegian daily on Wednesday.

`Drudgereport: NATIONAL DEBT TOPS $14 TRILL DOLLAR FADE: World Bank issues 1st yuan bonds in Hong Kong... ...pushing use of Chinese currency in international markets Commodities outlook: $100 oil and $1,500 gold... OIL PRICE 'ENTERS DANGER ZONE'...FORTUNE: 2011: Year of the bank run?`
`World Food Prices Rise to Record on Sugar, Meat Costs...`
`19 Dems vote against Pelosi...`
`Worst showing for party nominee since 1923...`
`Angry crowd forces Netanyahu to halt speech...`
`THE BIG STINK: Rats Having Field Day In NYC after garbage mess... Canadian river mysteriously turns bright green...`
`Hundreds of dead birds in TX...`
`Thousands of dead fish in FL...`
`Swedish birds 'scared to death'...`
`40,000 crabs wash up on UK beaches...`
`MAP...`

Fed's bond-buying strategy looks likely to run its course (Washington Post) [ Neither rain, nor sleet, but only depletion of trees for current and prospective fiat paper currency printing can keep the no-recession-fed from their wall street obsessive market-frothing rounds (which will end quite badly … as such always has … and always will). ] Federal Reserve officials appear unlikely to stop their controversial strategy of buying Treasury bonds.

Agency extends Afghan food-supply contract for firm that hired former director (Washington Post) [ Almost, but not quite as bad as what I experienced with the pervasively corrupt american illegal system:

Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3^rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

October 15, 2010 (*see infra)

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

Dear Sir:

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [ ricosummarytoFBIunderpenaltyofperjury.pdf http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf ].

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as fbicorrespondencereyes.htm . With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the RICO VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case, inter alia,

A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which could be used for payment to creditors, Los Angeles, etc..
Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan’s failure to file anything whatsoever by the court’s deadline causing creditors and me substantial damages: [ Shiff Order of Dismissal With Prejudice on Coan’s Failure to File Page 1 Page 2 ]
Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s requested relief as to Coan but precluded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [ transcript in pertinent part - crossexamofcoanbypeia.pdf ]
Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3^rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

Sincerely,

Albert L. Peia

611 E. 5^th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).

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*The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same. ]

Protection bureau to hire general's wife (Washington Post) [ Wow! Sounds like a plan! Talk about insiders and concentrations of power. After all, would you argue with anything sweet Holly Polly Petraeus proffered with the full weight of the military behind her. Somehow, though I’m not goin’ to talk ‘bout smell tests here (you know, that ‘weight of the military thing’), there seems to be something amiss, not quite right here, ‘cause what and why Hollywood do this or that …’ ] Holly Petraeus will lead Consumer Financial Protection Bureau's Office for Service Member Affairs.

Regional unemployment edges down in November (Washington Post) [ No surprise there with the layer upon layer of bureaucracy, including the alphabet soup kitchens, viz., cia, nsa, dod, doj, etc., whose ranks can include loads of temps, gophers, waiters, ‘runners’, (you know, make-shift / make-work jobs, etc., to froth numbers, despite the nation’s defacto bankruptcy and reality beyond the bubble.