CRISIS COVERAGE REPORT
BAILOUTS, MERGERS, CORRUPTION
EXTENDED BREAKDOWN ANALYSIS
* Critical Tidbits
* Pattern of Major Disruptive Events
* Stock Market Plunge & Possible Heist
* Oil Volcano & Ecosystem Disaster
* Goldman Sachs Under Fire
* USTreasury Turmoil
* USFed Monetization Unmasked
/
HAT TRICK LETTER
Issue #74
Jim Willie CB,
“the Golden Jackass”
8 May 2010
"A government big enough to give you everything you want is a government big enough to take from you everything you have." -- Thomas Jefferson
"At its birth, America embodied the highest hopes of mankind, but is now a tragic caricature of those great ideals. As it enters the 21st century, America finds itself bankrupt morally as well as financially. Its ideals stood the test of time, but America did not." -- Darryl Robert Schoon
EDITOR NOTE: MICRO-CHIP STORY ERROR
In the May Crisis Coverage Report to the Hat Trick Letter, my description was that the Congressional Bill HR3200 has provisions to require human RFID chip implants for medical tracking. However, I stand corrected. The final Obama Admin Health Care Bill was HR3962, whose passage came after the original Bill submitted underwent alterations by three House Committees in the summer of 2009. The final version has no specific requirements of human RFID chip implants. Thanks to JoeA of Endicott New York for the correction, an important one. One should keep in mind that if the original drafted legislation contained RFID implant intentions, then the future path is extremely likely to head in that direction. The nitwits serving in the USCongress will probably not be alert enough to notice when the implant update is placed in a new Bill, like a vapid Jobs Bill or yet another War Appropriation Bill or a Social Security Bill to delay and reduce benefits.
In my view, Collectivist Democrats in the Executive are no better than the Fascist Republicans who exited in 2008. We have the Redcoats (fascists) battling with the Bluecoats (marxists) currently. What they have in common is the overlord class of narcotic barons melded with the defense contractors and banksters, who together control the media networks. It has been Game Over for well over a decade. Here is yet another indication of trend direction. The Democratic leadership in Congress has sparked alarm with a call for national ID cards. Democratic leaders have proposed requiring every worker in the nation to carry a national identification card with biometric information, such as a fingerprint, within the next six years, according to a draft of the measure. See The Hill article (CLICK HERE).
CRITICAL TIDBITS
◄$$$ MYSTERIOUS EVENTS HAVE OCCURRED RECENTLY, WITH POWERFUL IMPACT ON POLICY. SUSPICIONS GROW FOR A GROWING LIST, BUT ARE DIFFICULT TO PROVE. $$$
After a deadly coal mine explosion in West Virginia, the USGovt has announced its plans to impose greater control over the mining industry in general. Could they have plans to exert control over base metals and precious metals? Would supply be steered with more emphasis to military contractors? The USGovt has long been at odds with off-shore oil drilling. After the extreme disaster in progress with the oil rig explosion and massive leak off the Louisiana coast, the USGovt has announced a temporary ban on off-shore drilling. Big Oil firms enjoy the restrictions to limit production, since it reduces supply and keeps price high. They had more than the ear of President Bush II for most of the previous decade, if not outright control.
More events can be pointed to, and questions raised. Last year, the Japanese Govt ordered the USMilitary to shut down the giant Okinawa base, to exit, to vacate, at least one of the multiple bases. The directive has caused controversy and strain. Some months passed, and then Toyota suffered a major supply chain fiasco from its US manufacturing plants. Then another big one. The Toyota brand stands as one of the premier in all of Japan, now wounded. The Chinese Govt resisted the USGovt usage of Google in eavesdropping & espionage, although they did not say so specifically. The Chinese appear to have infiltrated Google to steal system software and place workers in key posts. Google resisted and exited the nation. Charges have swirled from one side to the other. Not much actual news is reported.
The global forces that resist the US-UK Axis of Fascism are real, powerful, and organized, and their methods will not be easily detected. The arsenal of the US-UK is itself powerful and formidable, with great reach. The Anglo bankers and corporate chieftains, with the firm reliable aid of the USMilitary, US security agencies, and global banker organizations like the Intl Monetary Fund and World Bank, have exerted great pressures for over two decades, inflicted much harm on allied nations and emerging economies, with scores of high level complaints, mostly unaddressed. Powerful opposition has grown to offset the Anglo array of non-standard weapons. They are working to unseat the USDollar and USGovt and USMilitary. They might be putting extraordinary pressure to prosecute Goldman Sachs so as to discredit them, and thereby dislodge a control center. One must wonder who runs the prosecutions, both from civil lawsuits and felony charge investigations. Like who made the final directive order to file the charges. Could the GSax official attacks be waged so that foreign creditors continue to purchase USTreasurys? Or perhaps so that foreign creditors do not begin high volume USTBond sales? Methinks yes.
Usually more is happening than ever meets the eye, but one can lose a grip in paranoia. It is useful at times to cast a suspicious view at events, especially big events with great significance. Examine potential motives and the impact. A Jackass motto has long been to expect no billion$ accidents, as the majority are planned events to exploit for either profit or power. Thanks to PatW in the Pacific Northwest for his contributions.
◄$$$ CHINA SHOWS INCREDIBLE MOXEY & COURAGE TO REQUIRE ALL ENCRYPTION SOFTWARE TO BE OPEN SOURCED. THE RESULT WOULD BE AN OPEN PROCESS FOR SUPPLIERS TO PROVE EFFECTIVENESS, AND LIKELY APPLY PRESSURE TOWARD AN INTERNATIONAL MOVEMENT OF LIKE KIND. THE CHINESE WOULD BE HATED FOR THIS DIRECTIVE BY THE POWERS THAT CONTROL THE U.S. AND U.K. AS WELL AS WESTERN EUROPE. TREMENDOUS ABUSE FOR EAVESDROPPING BY U.S. VENDORS IS THE HIDDEN TOPIC OF SCRUTINY. $$$
The Chinese Govt rules came into force at the beginning of May, rules that require security vendors to disclose encryption information. The regulations mean that suppliers of six categories of products, including smart cards, firewall, and routers, will need to submit trade secrets to a government panel in order to receive a license to sell software products inside China. So far the strongest response has come from European Union officials, who have described the move as both protectionist and of high risk commercially. At issue is the unwanted disclosure of trade secrets and expertise from the government panel to local firms.
"[Sharing encryption information is] something companies cannot and will not do," said president of the European Union Chamber of Commerce Jorg Wuttke. The contrary position is much the same with US commerce officials. Details of the requirements are unclear. At issue is whether general encryption techniques must be disclosed, such as Advanced Encryption Standards, which are publicly documented, or whether a much greater level of disclosure is required, like of actual cryptographic keys used to encrypt and decrypt. Some past episodes of conflict have centered upon malware samples demanded by Chinese officials, before they allowed anti-virus vendors to sell sophisticated software technology into their country. The virus detection area is precisely where devious games are employed, often breaching security ethics. See the UK Register article (CLICK HERE).
A global consulting contact shared his opinion on the matter. He wrote, "China shows its courage by doing the Right Thing. Chinese government rules are due to obligate security vendors to disclose encryption information. The USA/EU will absolutely hate China for this one, but it is certainly a step in the right direction! If a vendor purports that its crypto-product is safe and secure, then they ought to prove it. By that is meant open source it and allow its implementation to be peer reviewed! That would be the effective result if China puts some real teeth behind this regulation. While the mandatory disclosure of cryptographic keys would have a really negative impact on industry, the disclosure of implementation source code would finally force the myriad of bad vendors in this space to raise the bar and actually design good software that will stand the test of open scrutiny or die. The encryption products space is littered with really bad programmers who implement a lot of stupid code. The big name software developers are not exempt from this list either. Time and time again, IT guys at our firm find that most developers do not even understand the basics, like how to properly seed a random number generator."
My personal background in the computer industry for 13 years enabled a better than average comprehension, although mine was not an engineering expertise. When in graduate school, an entire summer was spent in studying simulation, and conducting some research on certain advanced statistical techniques. The random number generator was either rubbish or great, depending upon whether the seed was a sufficiently large prime number and had other important traits. Some seeds tested were good, some were ridiculously bad. The impact on the legitimacy of an entire simulation study was huge and leveraged upon the generator itself. Few researchers bother to check the generator before moving quickly to the results of the simulation. Much more scrutiny to the root generator should be standard. Tests of generator uniformity were simple to conduct. As a probability pro, my love came from studying the methods to produce streams from the bivariate normal, Poisson, negative binomial, the multi-server exponential MMx models, and more.
Huge implications on the Chinese open source encryption would be like a great onrush of fresh air, quite welcome to the industry. It would be great to see Intel exposed as having built in requisite back doors on all Pentium chips for the CIA to monitor PC activity on internet commerce. All pre-Pentium chips like Motorola x86 did not have such monitor features. It would be great to see Microsoft exposed for having built in requisite reverse monitors on all its McAfee anti-virus software to permit reverse downloads during disk scans. The same goes for AVG and other free anti-virus software. The devious nature of technology nowadays is alarming. What has occurred with telephone technology is duplicated with computer technology.
◄$$$ A CHINESE EMBASSY INCIDENT, WITH A DIPLOMAT ALLEGEDLY BEATEN BY THE POLICE IN HOUSTON TEXAS. FOREIGN DIPLOMATS ARE TREATED TO WHAT TYPICAL AMERICANS CONTEND WITH ON A REGULAR BASIS. $$$
The Chinese Govt reported in mid-April that a Chinese diplomat in the United States was beaten and injured by Houston police. They urged an investigation to prevent further violations of diplomatic norms. The USDept State took the matter seriously, promising that findings of the investigation would be shared with Chinese officials promptly. The statement from China's Foreign Ministry claimed that police harassed and beat a deputy consul general while he was driving to the Chinese Consulate in Houston. According to a CBS News report, Houston police last Saturday tried to stop a car which was missing a license plate. When the car failed to stop, they pursued it into a garage without realizing the garage belonged to the Chinese Consulate. Police handcuffed and arrested the driver, and in the process injured him, not realizing their were on Chinese soil. Under international practice, the premises of foreign embassies and consulates are outside the jurisdiction of local law enforcement, where diplomats have legal immunity. See the Globe & Mail article (CLICK HERE).
PATTERN OF MAJOR DISRUPTIVE EVENTS
◄$$$ THE CONFLUENCE OF MAJOR DISRUPTIVE FACTORS AND POWERFUL EVENTS HAS BECOME A STORY NOT TOLD. THE LIST SEEMS TO GROW EVERY FEW WEEKS, WITH A NEW EVENT OF GLOBAL SIGNIFICANT AND THREAT POTENTIAL. THE GLOBAL FINANCIAL STRUCTURE IS UNDER RISING STRAIN, TO THE POINT OF POTENTIAL BREAKDOWN. $$$
1)Zero Interest Rate Policy & Quantitative Easing (*)
2)TARP Fund disbursement and lack of disclosure (*)
3)US Federal Reserve audit initiatives and disclosure
4)Greek Govt debt crisis and spread across Southern Europe
5)Goldman Sachs & JPMorgan investigations and prosecutions
6)Gulf of Mexico oil volcano explosion and marine ecosystem damage
7)Wall Street flash trading, computer trading, and market chaos
8)CFTC hearings and JPMorgan gold & silver market rigging
9)Commercial Mortgage Backed Security loss impact as second shoe (X)
The list is made with two introductory events marked with asterisks (*) to denote that they are not of recent news vintage. They are over a year old. The rest are daily news items. The last item is included in order to preview the next shock event, marked with (X). It is next to strike, as powerfully as the subprime mortgages did in the summer 2007. That was the origin of this so-called credit crisis which has morphed into a global bond debacle, precisely as the Jackass forecasted long ago. It was called an absolute bond crisis over two years ago here.
STOCK MARKET PLUNGE & POSSIBLE HEIST
◄$$$ THE TUMULTUOUS PERILOUS FRIGHTENING PLUNGE ON THURSDAY MAY 6TH SERVES AS A REMINDER THAT THE STOCK MARKET IS RIGGED, PROPPED BY INTERVENTION MEANS, AND DOMINATED BY FLASH TRADING. THE EVENT COULD EASILY BE REPEATED OFTEN. THE POSSIBILITY OF MAJOR FRAUD HEIST IN ATTACKS OF STOP ORDERS IS VERY REAL. $$$
Think of a professional football squad nearly killing an amateur group of weekend warrior players on a football field, easily winning but inflicting great bodily injury. Many reasons have been offered for the huge 1000-point decline and sudden recovery on Thursday May 6th in the US stock market. Reports circulated, surely nonsense, that someone at a Citigroup trading desk entered 'Billion' instead of 'Million' on an order. They call it the Fat Finger. Rubbish! Then a more credible report circulated on the internet, surely not on the US press networks, that at least one hedge funds was liquidated due to European redemption requests, which spun out of control to trigger a series of program trades in milliseconds. Maybe, but doubtful! The reality is that the US financial markets are broken. They have been broken for a couple years. They will not recover until significant reform comes to eliminate flash trading and insider front running trading like what Goldman Sachs specializes in. More proprietary advanced trading programs lurk and rip daily damage than USFed liquidity facilities, each equally destructive to financial market systems. Read the list as High Frequency Trading, Flash orders, Predatory Algorithms, Sigma X, Sonar, Market Topology, Liquidity Providers, Supplementary Liquidity Providers, and many other variations.
The inescapable truth is that the stock market has been trading chronically with thin volume and high participation by computer systems, and has been heavily dependent on the Working Group for Financial Markets (aka Plunge Protection Team) for support and late day rescues. The stock market also trades under the phony premises of an USEconomy recovery underway, and stability returned to the US financial sector. Both are patently false, as insolvency is rampant like a cancer. Claims of higher volume being a signal of quickly restored health or stability are total deceptions. The volume during bounces and recoveries is dominated by short covering, exits by the public (retail investors), and maybe more pension funds than will be admitted. For a good summary, including the list of flash trading names, see the Zero Hedge article (CLICK HERE). It includes a reference to his warning last month of extreme risk of market shock waves due to sudden loss of liquidity. The official props have turned unreliable.
The NYSE tells of 55% to 60% of volume emanating from programmed trades. My sources tell of 75% to 80% and probably higher, a grand circle jerk festivity. The Wall Street parasites have fed off each other, killed a few players, gobbled up others in mergers, the results of which have left three firms standing. Goldman Sachs, JPMorgan, and Citigroup remain, although Citi is a shell of its former self. The easy conclusion is that an earthquake just occurred. Financial markets should heed the warning for a series of breakdown events. This is warning. It will be ignored by the multitudes, denied by the analysts, and exploited by the professionals. The investigations might actually make these accidents more vulnerable to occurrence. Wall Street firms might be more motivated to kickstart their damaging programs as exercises in vengeance to those investigations.