Download PDF copy (39 pp.) here.
--------------------------------------
10:09 - 10:24; 10:33 - 13:04
Major General Albert N. Stubblebine III (U.S. Army, Retired)
On his radio show, "The Hour of the Time," recorded on
June 28, 2001, William Cooper uncannily predicted 9/11
and the blaming of Osama Bin Laden.
Noble Lie: a myth or untruth knowingly told by the elite to
maintain social harmony, or the social position of that elite.
The Windsor Tower was engulfed in flames and burned for 20 hours, but did not
collapse. World Trade Center towers and World Trade Center 7 (never hit by plane)
collapsed on their footings. Is this because of black magic or brand new bombs ?
------------------------- Subject: Re: How long will you keep quiet, Noam?
Date: Sat, 26 Jan 2013 14:34:35 +0200
Message-ID:
<CAM7EkxnUiBa1tNCeu=ngYKmwXwTAKBETQAnPG9KFC8=zryLW5Q@mail.gmail.com>
From: Dimi Chakalov <dchakalov@gmail.com>
To: Noam Chomsky <chomsky@mit.edu>
Cc: Michael Moore <mmflint@michaelmoore.com>
On Fri, 25 Jan 2013 23:12:06 -0500,
Message-ID: <012d01cdfb7b$4ed00fe0$ec702fa0$@mit.edu> ,
Noam Chomsky <chomsky@MIT.EDU> wrote:
>
> You're mistaken. Whenever I've been asked about this I've responded.
I do know what you responded, Noam. People need just *one* fact, which
(i) can be immediately verified, because it was documented in the
official video documentary from 9/11, and (ii) does *not* require any
special knowledge nor logical deduction or inference.
Just 1 (one) fact is enough -- see the photo (bubbler.jpg) attached.
You cannot see the central steel columns *during* the collapse, simply
because they were evaporated *before* the building began to collapse at
10:28 AM on 9/11.
Computer simulation of the damage of the central steel columns at 08:46 AM.
A few seconds after the blast at 10:28 AM, all of the central steel columns
from ground zero to the hole (see above) were evaporated.
Now, you have two alternative options to respond: either acknowledge that
100,000 tons of steel were *evaporated within seconds* prior to the collapse
at 10:28 AM on 9/11, or keep quiet. And of course you will choose to keep quiet, as
always.
Please don't tell me that this indisputable fact were some "divisive issue"
(Michael Moore), so it's better to shut up.
Do you know how many people, women and kids included, lost their lives in
your country on 9/11 and later, during the wars in Iraq and Afghanistan?
They all had the unalienable rights for Life, Liberty, and the pursuit of
Happiness (Thomas Jefferson, The Declaration of Independence, July 4, 1776).
Do you know that the killing continues even now, as we speak?
Of course you do, but will keep dead quiet, pretending that 'whatever
happened, didn't happen'. My petition 'What could possibly evaporate
100.000 tons of steel ?' expired on July 25, 2012. For three months, it was
signed by only 88 people.
You didn't.
D. Chakalov
-------------The hottest places in Hell are reserved for those who,
in times of great moral crises, maintain their neutrality.
Dante Alighieri
>
>
>
>
>
-----Original Message----From: Dimi Chakalov [mailto:dchakalov@gmail.com]
Sent: Friday, January 25, 2013 7:26 PM
To: Noam Chomsky
Subject: How long will you keep quiet, Noam?
>
> http://tinyurl.com/steel-evaporation
>
> Just think about it. Of course you won't reply, and I know why.
>
> D.C.
>
=======================================
Subject: Re: How long will you keep quiet, Noam?
Date: Sat, 26 Jan 2013 21:06:40 +0200
Message-ID:
<CAM7EkxkvHfPFhvVYxDkUfzX255p9qGizosV1DeJgLL54TP7JfQ@mail.gmail.com>
In-Reply-To: <027301cdfbd1$6f7e3090$4e7a91b0$@mit.edu>
From: Dimi Chakalov <dchakalov@gmail.com>
To: Noam Chomsky <chomsky@mit.edu>
Cc: Michael Moore <mmflint@michaelmoore.com>
On Sat, 26 Jan 2013 09:28:38 -0500,
Noam Chomsky <chomsky@MIT.EDU> wrote:
>
> On that specific question I will indeed keep quiet, because I do not know enough
> to say.
But now you know. All you needed was to look at the photo, which is what you did,
so now you know everything you need to know: the core steel columns were actually
NOT there. That's all.
You have absolutely no excuse to keep quiet anymore.
The same applied to Michael Moore.
D.C.
======================================================
Subject: World Trade Center bombing, 1993
Message-ID:
<CAM7EkxmnXwp0a5=W+tX-BdwzSPuC+RL-3D2zCT69FPrDfHxSrQ@mail.gmail.com>
Date: Tue, 16 Apr 2013 14:39:53 +0300
From: Dimi Chakalov <dchakalov@gmail.com>
To: Bruce Green <bgreen@law.fordham.edu>
Dear Dr. Green,
I noticed that twenty years ago you couldn't do your job,
http://www.brasschecktv.com/page/3926.html
See the facts from 9/11 at
http://www.god-does-not-play-dice.net/Edelson.html
http://tinyurl.com/steel-evaporation
Would you still prefer to keep quiet?
Sincerely,
Dimi Chakalov
==================================================
David A. Stockman, NY Times, March 30, 2013
Congress Sells America Down the River to Avoid the Fiscal Cliff
Peter Schiff, January 2, 2013
Overdose: The Next Financial Crisis
Black Friday, November 2010
Alan K. Simpson, Extended Interview, Dec 5, 2012,
Pt. 3, 00:50 - 02:27
Marc Faber, 13 Nov 2012: "We will all be lucky if we still
have fifty percent of the asset values that we have today."
Will the Government Confiscate Your Gold?
Rich Checkan (Money Morning, 10 Dec 2012): "A much more likely concern is
exchange controls - a policy where the citizens of a country cannot purchase assets
outside the country and assets in any other currency than their base, domestic
currency. Why? Forcing citizens to invest in assets denominated in the domestic
currency creates artificial demand, which can drive the currency up in the short term.
(..) Do today what you may not be able to do tomorrow. In short, if you intend to
establish a financial foothold offshore, the time to so do is before the opportunity
vanishes."
The Fed's Cloak of Invisibility
Shah Gilani, Wall Street Insights and Indictments, December 13, 2012
It's simple: We are about to go over the so-called fiscal cliff. Why? Because Congress
can't figure out how to stop spending money it doesn't have. The spending scheme
has mushroomed by expanding (and paying sickeningly outrageous wages and
benefits) an ever-growing number of government workers. And by expanding
entitlements beyond what we are entitled to. And by expanding welfare and "social
programs." All that spending creates a class of people, a voting class. And, guess
what they vote for? Duh, that would be more free stuff.
Congress spends and doesn’t have the money to pay up. So it borrows. It borrows
from the Fed, people! If there was no Fed to print money and give it to Congress,
the crooks on the Hill wouldn’t get away with what they take for granted as their
political right, which is to spend money they don’t have to pay us to keep them in
office.
Yesterday, the Fed stripped off its cloak of invisibility and said they were going to
keep easing (how low can rates go?). In fact, they are going to step up their
Treasury bond buying spree. Our government doesn’t have any money, but needs
billions everyday, so the Fed simply winks at them, they issue debt in the form of
bonds, and the Fed buys them all up.
Revenue problem solved! About that inflation in our future, we’ll worry about it when
we get there. About that preserving the currency thing, we’ll worry about it when we
get there. The Fed only cares that its puppet masters (that would be the big banks
and maybe all the banks) have enough money to lend (to the government) to collect
their interest to enslave the population into paying them back by socializing America
to keep them fat.
You see, in capitalism, the banks would be allowed to fail. And fail they would. But in
a socialist world, failure is not an option. Starting to get it?
How Big Deficits Became the Norm
David Wessel, The Wall Street Journal, December 18, 2012, p. A8
The big money is in benefits, particularly health. If Mr. Obama's budget for the
current fiscal year had been adopted, annually appropriated spending per capita,
adjusted for inflation, would fall by 22% over the next decade, the White House
budget office says.
At the same time, per-capita spending on benefits of all sorts would rise 21%,
including a 42% increase in per-capita spending on Medicare for the elderly and
Medicaid for the poor. And that doesn't reflect added spending on baby boomers
who will become eligible for the programs.
Budget arithmetic is simple: When spending goes up and taxes don't, deficits widen.
(...) Washington has been cutting taxes while increasing spending for more than a
decade now. These changes to the tax code account for about a quarter of CBO's
$12 trillion miss.
A lousy economy, increased spending and tax cuts produce more borrowing. More
borrowing means more interest payments. (...) Lately, the interest tab has been held
down by extraordinarily low interest rates, the lowest in the history of the nation.
Still, the Treasury spent $222.5 billion on interest last year, 2½ times federal
spending on education, training and social services. Because interest rates are sure
to rise as the economy heals, and a fiscal-cliff deal will, at best, only slow the pace
of federal borrowing not eliminate it, the government's interest tab will continue to
rise even if there is an agreement soon.
Should we devaluate USD by 36 per cent?
Because America has never defaulted on its debt!
Subject: No, Virginia, there is no Santa Claus.
Date: Mon, 24 Dec 2012 15:19:14 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: Nick Timiraos <nick.timiraos@wsj.com>
Cc: bwatts@marketwatch.com,
sgelsi@marketwatch.com,
rschroeder@marketwatch.com,
Ilkellner@gmail.com,
capital@wsj.com,
davidignatius@washpost.com,
keith@moneymorning.com,
TheTell@marketwatch.com,
munchau@eurointelligence.com,
editors@barrons.com,
mail@barrons.com,
sdinan@washingtontimes.com,
jweisenthal@businessinsider.com
'Push for Cheaper Credit Hits Wall', WSJ, December 23, 2012, 8:51 p.m. ET
--------Dear Mr. Timiraos,
You acknowledged that "bank revenues are soaring but the broader economy isn't feeling the full
effect", and lenders are "reluctant to staff up given the prospect that any uptick in rates would
choke off refinancing, leaving them with lots of overhead but little new business."
One of your readers, Frank Anderson, asked a very simple question: "As every one who has a
pulse that the fed has been pushing on a string, why doesn't the idiot and his lackeys at the fed
get it?"
Instead, we're watching a battle over nothing,
http://blogs.marketwatch.com/election/2012/12/20/
the-trivial-difference-between-obama-and-boehner-in-one-chart/
I do hope you or some of your colleagues will connect the dots and put it in writings, because
raising the interest rates is inevitable and unavoidable.
More at
http://tinyurl.com/dollar-ratio
http://tinyurl.com/steel-evaporation
Wishing you and your colleagues a nice white Christmas,
Dimi Chakalov
The Great Betrayal of 2012
Hello, this is Larry Edelson, reporting from Shanghai, China.
........
So even if Beijing DOUBLED or TRIPLED the value of the yuan, Chinese products would still sell
for far less than U.S.-made products do: Boosting the yuan’s value would do little if anything to
help U.S. exporters!
So why does Washington really want to jack up the value of the Chinese yuan? What’s the truth
that Washington won’t tell you?
By RAISING the value of the Chinese yuan, Washington and China will automatically CRUSH the
value of the U.S. dollar ...
So Washington can repay its otherwise unpayable debts with cheaper dollars!
Look: The “official” U.S. national debt is now around $15.7 trillion — nearly three times more
than the most indebted nations in Europe ... COMBINED!
But when you add in the debts Washington owes to veterans, seniors and government
pensioners, the total amount is nearly ten times more: A staggering $145 trillion.
That’s nearly TEN TIMES the total value of the goods and services the U.S. economy produces ...
That’s far more debt than Washington can ever hope to pay.
In fact, Washington’s only hope of avoiding default is to destroy the value of its own currency,
then pay its debts back with dollars that are only a shadow of their former selves.
Plus, with a weak dollar and strong Chinese yuan, China can buy up even more of our debt and
protect the massive investment it has already made in America by helping Washington avoid
default.
That’s a massive “win-win” for both Washington and Beijing:
Plus, a rising yuan will once and for all solve Beijing’s #1 economic problem: Rising domestic
inflation. As the yuan’s buying power rises, price inflation in China will decline dramatically.
More importantly, as the yuan’s purchasing power explodes, China will also be able to lock up
even more of the world’s supply of oil, coal, steel, copper, lumber and other natural resources ...
to take control of thousands more companies ... and to extend its economic control throughout
the world.
But why lie about their intentions?
Because if they told the truth, there would be hell to pay.
Just imagine how voters would react if the president stepped before the microphones and said ...
“My fellow Americans, we politicians have spent too much money and now, we can’t pay our
debts.
“The only way to avoid default is to destroy the value of your money and then repay our debt
with cheaper dollars.
“Of course, that means your cost of living will double and double again and most of you will be
reduced to poverty ...”
See what I mean? Telling the truth would be tantamount to political suicide.
Jump from the fiscal cliff: Do deficits really matter?
William H. Gross (October 2012): "We need to cut spending or raise taxes by 11% of
GDP and rather quickly over the next five to 10 years. An 11% “fiscal gap” in terms
of today’s economy speaks to a combination of spending cuts and taxes of $1.6
trillion per year!"
Compare it to Iceland.
Subject: Re: How long will it take to recover? "Five and a bit years from now"
(04:11-04:13)
Date: Thu, 18 Oct 2012 15:37:34 +0300
Message-ID:
<CAM7Ekxnk_HWdzMVdG5dRanQNu4idAOwHngrSVv5xm53UFcz3+A@mail.gmail.com>
From: Dimi Chakalov <dchakalov@gmail.com>
To: A Michael Spence <aspence@stern.nyu.edu>
Cc: dlevine@marketwatch.com,
jmagden@sageadvisory.com,
belkin@attglobal.net,
mbm@mpresearchinc.com,
editors@barrons.com,
mail@barrons.com,
Ilkellner@gmail.com,
TheTell@marketwatch.com,
Wolfgang Münchau <munchau@eurointelligence.com>,
Michael Woodford <michael.woodford@columbia.edu>,
info@speakerscorner.co.uk
P.S. May I offer three excerpts, supporting Bundesbank’s President Jens Weidmann:
Mephistopheles, he recalled, had used just such policies to create chaos and hyperinflation in
Goethe’s Faust.
1. Dallas Federal Reserve President Richard Fisher
Remarks before the Harvard Club of New York City
New York, N.Y., September 19, 2012
http://www.dallasfed.org/news/speeches/fisher/2012/fs120919.cfm
"The truth, however, is that nobody on the committee, nor on our staffs at the Board of
Governors and the 12 Banks, really knows what is holding back the economy. Nobody really
knows what will work to get the economy back on course. And nobody—in fact, no central bank
anywhere on the planet—has the experience of successfully navigating a return home from the
place in which we now find ourselves. No central bank—not, at least, the Federal Reserve—has
ever been on this cruise before."
2. Keith Fitz-Gerald, Chief Investment Strategist, Money Morning
QE Infinity Won't Work, But Here's What Will
October 18, 2012
http://moneymorning.com/2012/10/18/qe-infinity-wont-work-but-heres-what-will/
"... estimates suggest there's only one "real" dollar in the system for every $10 they've created.
...........
"Money created in a vacuum that is not backed by real savings and real assets creates false
economic signals. These false signals, in turn, lead directly to additional economic misallocations.
So yes, the stock market will rally in the short term, but as the weight of these debt burdens
becomes greater, the cumulative effect of each new round of stimulus lessens. And that's
precisely what's happening now. At some point in the future - a point that Fisher and his Fed
colleagues readily admit they can't identify - quantitative easing will fail to have any impact
whatsoever."
3. Robert P. Murphy, Inflation is the plan, September 25, 2012
http://www.youtube.com/watch?v=FpYSSBmh0b0
Should you or any of your colleagues disagree, please write me back and I will elaborate with
numbers and facts.
D.C.
On Wed, 17 Oct 2012 15:15:09 +0300, Dimi Chakalov <dchakalov@gmail.com> wrote:
>
> A. Michael Spence, 10/16/2012, 04:11-04:13
> http://live.wsj.com/video/spence-obama-economic-plan-better-than-romney/8C9233EE-E8874486-8CA8-5DA83D51F9D3.html
> ---------->
>
> Dear Dr. Spence,
>
> I cannot agree with your forecast -- see the larger context at
>
> http://tinyurl.com/steel-evaporation
>
> According to Murphy's Law, anything that can go wrong will go wrong.
> In the best possible scenario, Michael Belkin predicted a 40% stock
> market drop in the coming 12-15 months (10/15/2012),
>
> http://live.wsj.com/video/michael-belkin-predicts-40-stock-market-drop/A1C9660A-0321-4E82BA0E-EFD4CD092D40.html
>
> In simple words: go completely to cash,
> http://online.barrons.com/article/SB50001424053111903463204578044510228029662.html
>
> Which means silver & gold in Switzerland.
>
> If you and/or some of your colleagues disagree, please write me back
> and I will elaborate with specific facts.
>
> Sincerely,
>
> Dimi Chakalov
Comment: The last presidential debate on October 22nd, at which President Barack Obama and
Governor Mitt Romney hinted to their "plans" to fix the economy [Ref. 1], would have been
laughable, if it hadn't been a very sad story. In particular, two major problems were kept in dark.
Firstly, the 2008 promise of Barack Obama to close the prison at Guantanamo Bay was broken,
without any explanation nor tentative plan about the fate of this shameful violation of human
rights. This is not America as we know it.
Secondly, it is agonizingly clear that the math of both "plans" to revive the economy simply
doesn't sum up. The task is perfectly simple: define the ratio of 'borrowed dollars' to 'saved
dollars'. As a suggestion, for every 1 USD created from thin air, which adds to the federal deficit
and has to be paid back in the future, there have to be 3 USD from raising the revenue and
cutting federal and state spending. Then you elaborate on (i) the exact amount of money
scheduled to be borrowed in the next four years, and (ii) the exact amount of money that has to
be recovered from austerity measures, in 1-to-3 ratio.
Thus, the amount of borrowed money is dictated by your ability to save money and produce
jobs, given the requirements to pay back the accumulated debt -- every 1 USD borrowed money
must match 3 USD savings.
As David Vessel tried to explain, "the U.S. government is borrowing more than $3 billion every
weekday and paying the lowest interest rates in history", while "spending on promised benefits
will far exceed anticipated tax revenue even after the economy recovers" in the future.
But the economy cannot in principle recover with unbalanced spending & revenue. Neither now
nor in the future: watch Peter Schiff and recall the Keynesian broken window fallacy.
"No matter how much money the Federal Reserve feeds banks via QE4-ever, enough so they
could pay off their bailout loans, pay themselves big bonuses again, pay trumped-up dividends to
entice equity investors, and continue buying Treasuries with no-interest financing, their balance
sheets are still laden with derivatives, stale mortgages and sickeningly more government debt
that's about to get downgraded", says Shah Gilani.
Notice that 'time to recover' is crucial parameter: if you are socialist or prefer a Keynesian ratio,
you may lower the difference between the two parameters above and recover (eventually) next
century, but will have to live in an island, away from the world. On the other hand, if you choose
a steeper ratio, the recovery may be faster (say, by 2032), but far too harsh and practically
impossible.
And finally, explain the constraints from the current and future legislation (don't forget the $648
trillion from derivatives), which must constrain all financial operations by the Federal Reserve
and U.S. banks, aimed at increasing (i) but under the 1-to-3 rule.
In simple words, we have to reverse the course of action in order to break even some day in
the future, because 'more of the same' will ultimately make the task insoluble. The whole
economy will shift into meta-stable state, and even a small disturbance will act like the last straw
that breaks the camel's back. The crash cannot be controlled and will explode within a few days
or less. Unlike Iceland, we didn't repair our problems but did exactly the opposite, and in the
past four years these problems have been growing like cancer tumor. We must prevent our
economic suicide, as soon as possible.
Unfortunately, these two unsolved problems are taboos: “whereof we cannot speak, thereof we
must keep silent” (Ludwig Wittgenstein).
So be it. Only this isn't America as we know it.
D. Chakalov
October 23, 2012
Last updated: November 9, 2012
[Ref. 1] Joseph E. Stiglitz, The Anatomy of a Murder: Who Killed America's Economy? Critical
Review, Vol. 21, No. 2-3, 13 July 2009, pp. 329-340.
==========================
Addendum
For the sake of the argument, recall the official "plans" of President Barack Obama and Governor
Mitt Romney. Both are dangerously unclear; the main difference is in the Keynesian approach of
the second candidate, but the joint message is simple: there's tough work ahead, but the future
is bright.
Really? How come the difference between borrowed money created from thin air, and real
money obtained from income collected after taxes, doesn't matter? How come the escalating
financial problems of the Eurozone don't matter?
Can we avoid cascading inflation and the upcoming gold scandal?
G. Edward Griffin, The Creature from Jekyll Island, Amer Media, 1998
Let's get into the shoes of Ben Bernanke and see America from his perspective. The idea is also
very simple. For example, if his income is very low but he wants to build a very expensive
house, he will reject all austerity measures which will burden his very low income, and will
instead take a very big loan to be paid back with very high interest in the future, hoping that
his income will very, very much increase in the bright future.
Thus, Helicopter Ben will reject all 'bridge too far' considerations and the 1-to-3 ratio above,
and will instead argue for some tremendous opportunities for economy growth: factories operate
with nearly 70 per cent of their actual capacity, millions of people are waiting to get jobs, house
prices are incredibly attractive, banks and large corporations sit on trillions of cash, waiting to
invest and get richer, so where's da problem? All you need is unlimited supply of (i) borrowed
money to boost the house market, called QE3: $40 billion per month, each and every month, for
as long as it takes, until the housing market is revived and unemployment gets down to the
healthy value of a sustained economic growth. Instead of (ii) saving, we need to boost the
economy by creating many more jobs, such that in some observable future (when?) the future
value of all products and services will neutralize the deficit accumulated by this future point, and
we'll come clean. Contrary to the 1-to-3 ratio proposed above, we will create more (i) borrowed
money than (ii) saved money to supercharge the economy and balance the deficit in the future,
and place the gambling with $648 trillion from derivatives under control also in the future.
The rising debt (Lou Dobbs) doesn't matter in the future, as long as the Treasury bonds are
considered 'safe heaven', compared to the Yuan and other rival currencies.
In simple words, at some point in the future the sum of what we have already borrowed in the
past plus our ongoing expenditure, compared to that enormous future GDP, will become
negligible debt, and the economy will be finally balanced, without raising inflation. Once the
economy starts growing (no fiscal cliff), people will regain confidence, and trillions of borrowed
dollars will poor into economy but will not raise prices and trigger inflation, so America will keep
printing the world's reserve currency and China will keep purchasing Treasury bonds, because
the future is bright [Ref. 1].
All we need is to base the economy on the bright future, correct?
No, Virginia, there is no Santa Claus.
The only way to make ends meet is to devaluate the dollar overnight, and then pay the $145
trillion debt back "with dollars that are only a shadow of their former selves".
D. Chakalov
October 25, 2012
Last updated: November 14, 2012
[Ref. 1] Keith Fitz-Gerald on Fox Business' Varney & Co., November 12, 2012
Will the Fed go after the retirement assets, such as tax deductable IRA's and 401 K's (Keith FitzGerald, 03:10-03:33) ?
‘Financial WMDs’ debase dollar, risk inflation
By Satyajit Das, MarketWatch, October 24, 2012
“The USA lived off credit for too long, inflated its financial sector massively and neglected its
industrial base.” Such was the sobering assessment that German finance minister Wolfgang
Schäuble gave the Wall Street Journal in November 2010.
.........
Given the lack of political will to deal with the problem of debt and public finances, the U.S. is
now deploying its FMDs — weapons of financial mass destruction — to finance its
requirements.
These include “financial extortion,” “monetization” and “devaluation.”
........
Monetization is inexorably linked to devaluation of the U.S. dollar. The now officially confirmed
zero-interest-rate policy and debt monetization is designed to weaken the dollar.
The major benefit is in relation to debt owned by foreigners. As almost all U.S. government debt
is denominated in dollars, devaluation reduces the value of its outstanding debt, making it easier
for the U.S. to service its debt.
.........
Major investors in U.S. government bonds now find themselves in the position that John Maynard
Keynes identified: “Owe your banker £1000 and you are at his mercy; owe him £1 million and
the position is reversed.”
Valery Giscard d’Estaing, French Finance Minister under President Charles de Gaulle, famously
used the term “exorbitant privilege” to describe the advantages to America of the role of the
U.S. dollar as a reserve currency and its central role in global trade. That privilege now is not
only “exorbitant” but “extortionate.”
How long the rest of world will allow the U.S. to exercise this “extortionate privilege” is
uncertain.
==========================
"It's not only taxes on the upper brackets that go up, it's taxes on nearly all taxpayers from
the bottom to the top–about $330 billion worth in fiscal year 2013 (which ends Sept. 30, 2012)
and $420 billion worth in 2014. We're talking, according to the Congressional Budget Office,
something on the order of 1.5% of gross domestic product, a huge hit in an economy growing
at roughly at 2% rate."
David Wessel, WSJ, November 13, 2012
"Here's a heads-up for you: The biggest "cliff" we have to worry about is the market
falling. After all, the market has been the primary instrument of interest and intention, as far as
the Federal Reserve's articulated policy of pumping it up with cheap money (that's also known as
leverage, people), so we all feel good about our pensions and 401(k)s and all our investments.
Then, when we're brimming with confidence, we will all go out and consume again, and again,
and again, and borrow to do it - kind of exactly like what our government does."
Shah Gilani, Wall Street Insights and Indictments, November 15, 2012
"The problem today with the FHA is that they are supposed to keep a 2% "reserve" as a safety
net against defaulting borrowers whose mortgages they have insured. They haven't had
anywhere near that amount in their reserves in over four years. With $1.1 trillion in outstanding
guarantees, a 2% reserve would be $20 billion. But the FHA only has about $600 million, which
it is burning through daily. And it's getting worse..."
Shah Gilani, Wall Street Insights and Indictments, November 21, 2012
According to Paul Krugman (August 14, 2011), an
invasion by aliens could end the current recession.
Subject: The Anatomy of a Murder: Who killed America's economy and WHY ?
Date: Mon, 5 Nov 2012 14:59:06 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: Joseph E Stiglitz <jes322@columbia.edu>
Cc: John B Taylor <JohnBTaylor@stanford.edu>,
Kenneth Rogoff <krogoff@harvard.edu>,
Laurence J Kotlikoff <kotlikoff@gmail.com>,
Robert Shiller <robert.shiller@yale.edu>,
Jeremy Siegel <siegel@wharton.upenn.edu>,
Alan S Blinder <blinder@princeton.edu>,
Carol Osler <cosler@brandeis.edu>,
Barry Eichengreen <eichengr@econ.berkeley.edu>,
Olivier Blanchard <oblanchard@imf.org>,
Paolo Mauro <pmauro@imf.org>,
sdinan@washingtontimes.com,
jweisenthal@businessinsider.com,
david.smith@sunday-times.co.uk,
etfs@pimco.com
Dear Dr. Stiglitz,
In your interview with Reuters about the reappointment of Ben Bernanke (October 24, 2012) and
your 2009 article 'The Anatomy of a Murder', you didn't touch the obvious question: WHY ?
A possible answer is posted at
http://tinyurl.com/dollar-ratio
Details at
http://tinyurl.com/steel-evaporation
Your comments and the opinions of your colleagues will be highly appreciated.
Regards,
Dimi Chakalov
=======================================
Peter Schiff: Thanks to QE3, We're All Screwed
Peter Schiff, Yahoo Finance's Breakout, November 7, 2012
Explanatory note
Back in 1945, my late Dad took a very big loan to build our house in Sofia (BG), which turned
out to be 90 per cent of his income at these days. He had to take three jobs and often was
working overnight. Eventually he and my Mom managed to pay back the loan in 1961. At that
time I was nine-year old but vividly remember the 'liberation' day, as well as the poor life we
had. It was indeed horrible.
But imagine that my Dad could print money in the cellar to pay for the loan: we would be very
lucky, correct? That's America. Only it is not a small closed system like Zimbabwe, but can
export its inflation abroad in terms of 'hot money' made of (i) borrowed dollars.
Which is why we all are, to some extent, Americans: the global economy may be ruined very
soon. There will be no isolated islands immune from the devaluation of US dollar, which can
only happen overnight, as Britons did on the night of November 19, 1967.
But when will the stuff hit the fan? Here's the crucial condition from Expectedreturnsblog,
November 19, 2012 3:16 AM:
"The majority of the national debt at this point is composed of accrued interest payments. Even
if our government magically closed the deficit of over $1 trillion annually (unlikely), interest
payments would continue to compound. Given current interest rates, the annual interest
payments on our debt will rise to roughly $500 billion in 2017. And this is assuming record low
interest rates. To put that in perspective, interest payments on our debt by 2016 will outstrip the
combined spending in: The Department of Education, Department of Homeland Security,
Department of Energy, Department of Justice, Department of Agriculture, Department of
Transportation, Department of Interior, and Department of Commerce. (...) The point is that
even with a modest rise in interest rates, the interest payment alone will consume the majority
of our tax revenue. Game over."
Then Ron Paul may choose to run as an Independent or Libertarian, and people would be
inclined to listen. In other words, perhaps we can be optimistic: the winter is coming, so the
spring cannot be far behind.
D. Chakalov
October 27, 2012
Last update: November 21, 2012
===========================
Subject: 'Thomas Jefferson: The Art of Power', by Jon Meacham
Date: Thu, 15 Nov 2012 14:35:28 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: [snip]
Dear Dr. Meacham,
I think your latest book is a treasure, and I like your interview very much,
http://www.thedailyshow.com/full-episodes/wed-november-14-2012-jon-meacham
Perhaps Thomas Jefferson wasn't understood because people needed to pass through a real
problem, such as the Civil War. In other words, perhaps we can be optimistic -- if the winter
comes,
http://tinyurl.com/dollar-ratio
http://tinyurl.com/steel-evaporation
... the spring cannot be far behind (Phil Marlowe).
All the best,
Dimi Chakalov
===================================================
Subject: Re: New Video Blog Posted - Debt Ceiling & the Fiscal Cliff
Date: Tue, 4 Dec 2012 09:32:19 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: contact@europac.xxx, schiff@europac.xxx
Cc: [snip]
On Mon, 3 Dec 2012 20:21:44 -0500 (EST), Peter Schiff/Euro Pacific <contact@europac.xxx>
wrote:
>
> Debt Ceiling & the Fiscal Cliff
> Dear Investor,
>
> I have just posted a new recording to my Video Blog. Please click here to
> watch it.
http://www.europac.net/media/video_blog/debt_ceiling_fiscal_cliff
Thank you. I provided link to it at
http://www.god-does-not-play-dice.net/Edelson.html
But how can the US dollar crash? With bank runs; see Murray N. Rothbard at
http://www.lewrockwell.com/rothbard/rothbard163.html
"The answer lies in the nature of our banking system, in the fact that both commercial banks and
thrift banks (mutual-savings and savings-and-loan) have been systematically engaging in
fractional-reserve banking: that is, they have far less cash on hand than there are demand
claims to cash outstanding. For commercial banks, the reserve fraction is now about 10 percent;
for the thrifts it is far less.
"This means that the depositor who thinks he has $10,000 in a bank is misled; in a proportionate
sense, there is only, say, $1,000 or less there. And yet, both the checking depositor and the
savings depositor think that they can withdraw their money at any time on demand. Obviously,
such a system, which is considered fraud when practiced by other businesses, rests on a
confidence trick: that is, it can only work so long as the bulk of depositors do not catch on to
the scare and try to get their money out. The confidence is essential, and also misguided. That is
why once the public catches on, and bank runs begin, they are irresistible and cannot be
stopped."
But when will people run the US banks? At the moment you can answer this question, it will be
too late to escape.
Best regards,
Dimi Chakalov
===========================================
Subject: Network topology: Too-Interconnected-to-Fail ?
Date: Thu, 10 Jan 2013 07:11:18 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: Sheri Markose <scher@essex.ac.uk>
Cc: Serena Sordi <sordi@unisi.it>,
Andreas Krause <mnsak@bath.ac.uk>,
Simone Giansante <sg473@bath.ac.uk>,
Ali Rais Shaghaghi <araiss@essex.ac.uk>,
Laura Kodres <lkodres@imf.org>,
Aditya Narain <anarain@imf.org>,
Olivier Blanchard <oblanchard@imf.org>,
Xavier Gabaix <xgabaix@stern.nyu.edu>,
Jeremy Siegel <siegel@wharton.upenn.edu>,
Robert Shiller <robert.shiller@yale.edu>,
John B Taylor <JohnBTaylor@stanford.edu>,
Laurence J Kotlikoff <kotlikoff@gmail.com>,
Kenneth Rogoff <krogoff@harvard.edu>,
Barry Eichengreen <eichengr@econ.berkeley.edu>,
Carol Osler <cosler@brandeis.edu>,
Alan S Blinder <blinder@princeton.edu>,
etfs@pimco.com
Re: Sheri M. Markose, Systemic Risk from Global Financial Derivatives, WP/12/282, 30 November
2012
http://www.imf.org/external/pubs/ft/wp/2012/wp12282.pdf
---------Dear Dr. Markose,
I strongly support your opinion that the "interconnected hubs often suffer self-annihilation" (p.
26). Since your research paper was published by IMF "to elicit comments and to further debate",
may I comment on your conclusion (p. 47):
"The global derivatives markets in the post Lehman period, despite considerable compression of
bilateral positions, are unstable and they can bring about catastrophic failure. Quite simply, a
threat of failure to any of the SIFIs is an immediate threat to the others. The network topology
where the very high percentage of exposures is concentrated among a few highly interconnected
banks implies that they will stand and fall together."
The longer they stand together, the stronger self-annihilation will produce. The catch phase 'TooInterconnected-to-Fail' should be changed to 'Too-Interconnected-to-Survive', simply because the
collapse of US dollar is inevitable:
http://tinyurl.com/dollar-ratio
http://tinyurl.com/steel-evaporation
Your comments, as well as the opinion of your colleagues, will be highly appreciated.
Kind regards,
Dimi Chakalov
-------------
Note: Let me comment on two recent articles.
The United States of China
By Steve Christ, The Money Map Report, January 2013
http://pro.moneymappress.com/MMRSCHIFF2YCHNMMP/EMMRP122/
We've just had the lowest interest rates in the history of our country last year, at
1.53%. My parents in their retirement used to supplement their income with the
interest they got from CDs. With rates at 1.87% today, that's a losing proposition.
The highest interest rates have ever reached is 15.32%. But here's the thing: The
mean rate is 4.64%. In essence, that's the average rate of interest over time.
What I'd like people to know is this: While Bernanke has artificially kept rates low to
cater to his banking friends and help them make money, they cannot be manipulated
in this Madoff-style Ponzi scheme for much longer. When they hit the mean, at
4.64%, the interest payments of the U.S. government will increase by 148%, more
than one and a half times what they are now. At current projections for 2020, that
would take the interest payments on U.S. debt to $1.3 trillion a year.
But here's the thing: Our current total tax revenue stands at just $1.4 trillion.
While we have the lowest interest rates in history, the debt we owe to China and our
other creditors is still increasing at an exponential rate every year.
When interest rates rise, the Federal Debt cannot be paid off. Ever.
---------------------
Why There's No Real Inflation (Yet)
By Martin Hutchinson, MoneyMorning, January 30, 2013
http://moneymorning.com/2013/01/30/why-theres-no-real-inflation-yet
Every central bank in the Western world is holding interest rates down, and almost all
of them are printing money like it's going out of style. Five years ago, nearly every
economist in the world would have told you this would cause inflation to skyrocket,
and the big deficits governments were running would make matters even worse.
Taken together, monetary and fiscal policies are far more extreme than they have
ever been.
Yet, inflation has remained rather tame at 2%. In Friedman's world that just wouldn't
be possible. What does it all mean?....
.........
The central equation of Friedman's monetary theory is M*V=P*Y, where M is the
money supply, Y is Gross Domestic Product, P is the price level and V is the
"velocity" of money, thought of intuitively as the speed at which money moves
around the economy.
.........
Again, growth in those five years has been below 2%, and five years is longer than
anyone thinks the lag should be. So why isn't inflation at least 5% not 2%?
Monetarists would explain that by telling you that monetary velocity has declined over
the last five years. That's obvious from the equation, but what is monetary velocity
and why has it declined?
The velocity of money is simply the average frequency with which a unit of money is
spent in a specific period of time. And in our day-to-day activities, it's obvious that
monetary velocity has in fact increased. More people are using debit cards, which
cause transactions to move instantaneously from the bank account to the merchant,
and many people are using Internet banking, which similarly increases the speed of
transactions, reducing both the amount of physical cash carried and the time that
old-fashioned checks spend sitting in storage at the U.S. Postal Service.
So what is the problem?
Monetarists will tell you that the decline in monetary velocity is due to the massive
balances, over $1 trillion, which the banks have on deposit with the Fed, which just
sit there and do nothing.
That's probably correct since while the deposits exist, the ordinary mechanisms of
monetary movement simply don't work, since that money has no velocity. As a
result, Bernanke and his overseas cohorts have succeeded in saving themselves from
being hindered by a surge in inflation.
The Japanese experience over the last 20 years suggests that this position, with a
huge money supply and no inflation, may continue for 20 years or more.
In short, thanks to the banks, Freidman's monetary theory has simply stopped
working.
.........
In Japan, the politicians have even decided to print more money and do still more
deficit spending. Since Japan has debt of 230% of GDP this will almost certainly
produce a crisis of confidence, in which buyers stop buying Japan Government Bonds.
That will cause the government to default and will more or less shut down the
Japanese economy - the worst possible outcome.
Since politicians hate periods of liquidation, they could encourage the same behavior
here, in which case growth will continue at current sluggish rates until the Federal
deficit becomes so great that nobody will buy U.S. Treasuries.
Again, without a Treasury market, there will be an economic collapse. At that point,
you're likely to get all the inflation you want - it's basically what happened in the
German Weimar Republic in 1923.
The point is, Bernanke has created something of a new monetary ground, increasing
the money supply rapidly without getting inflation. But it won't last.
At some point we'll get hyperinflation and probably a Treasury default.
For investors the action to take is obvious: Buy gold. At some point fairly soon, you'll
need it.
Three things. Firstly, the loss of confidence in U.S. Treasuries can be caused by combination of
various factors, such as the perpetual increase of Federal deficit, combined with raising interest
payments to China and other creditors of the Federal debt. Since 2009, China has been openly
accumulating gold, as large gold reserves are essential for establishing the yuan as an alternative
global reserve currency, once the combination of the two factors above reaches its inevitable and
destructive maximum.
Secondly, the most imminent factor here is the unstoppable real inflation, caused by raising cost
of commodities in a sluggish economy. Ben Bernanke may have created "something of a new
monetary ground, increasing the money supply rapidly without getting inflation", but this
magic policy cannot cope with the real inflation from food and energy bills, plus medical and
social benefits. Which is why such policy requires more and more money created from thin air,
and at the end of the day "it won't last": 'more of the same' leads only to 'much more of the
same'. Nothing, not even Bernanke's monetary magic and all smart bankers on Wall Street, can
substitute the absence of real things, which in turn cause the real inflation.
And thirdly, people may think that bank runs would be impossible if banks sit on trillions of cash
and the staggering $648 trillion in derivatives, but even if one of the "big" bank crashes, it will
unleash self-annihilation (Sheri Markose) of the whole banking system. And here comes the
tipping point -- if an immediate release of cash to particular ailing bank cannot calm down
people anymore, because all too-big-to-fail banks are now in danger, it will be impossible to
save the banks.
The latter can happen within hours, and on the next day, when you drink your morning coffee,
you'll find out the the U.S. dollar has been quietly devaluated overnight. Why?
Because America has never defaulted on its debt!
NB: Bring all your gold in a safe place -- now.
D. Chakalov
January 30, 2013, 23:45 GMT
========================================
Subject: Network topology: Too-Interconnected-to-Survive
Date: Thu, 17 Jan 2013 15:25:25 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: Jeannette Neumann <jeannette.neumann@wsj.com>
Cc: David Riley <david.riley@fitchratings.com>,
Chris Pryce <chris.pryce@fitchratings.com>,
Therese Feng <therese.feng@fitchratings.com>,
Ai Ling Ngiam <ailing.ngiam@fitchratings.com>,
Frank Laurents <frank.laurents@fitchratings.com>,
Jens Schmidt-Burgel <jens.schmidtburgel@fitchratings.com>,
Matias Torrellas <matias.torrellas@fitchratings.com>,
ratingsdesk@fitchratings.com,
editor@china.org.cn,
contribution@china.org.cn,
munchau@eurointelligence.com,
grobb@marketwatch.com
Dear Ms. Neumann,
May I try to explain the difference between two opinions.
In the online version of your recent article, you reported that David Riley from Fitch Ratings has
warned about yet another "self-inflicted crisis" (Jeannette Neumann, WSJ, 15 Jan 2013), but one
of your readers, Gary Wraughton, described his opinion more succinctly:
"God has turned America over to a depraved mind (Romans 1). It should be obvious to anyone
with common sense that we are permanently in the TRILLION dollar deficit era and will remain
there until our economy collapses."
In my opinion, Gary Wraughton is right, firstly because of the interconnectedness and mutual
dependence of major too-big-to-fail banks,
http://www.god-does-not-play-dice.net/Edelson.html#Markose
According to Dallas Federal Reserve Bank President Richard Fisher, banks are not lending but
rebuilding their balance sheets in the wake of the financial crisis, despite the fact that the third
round of asset purchases is pouring $85 billion 'hot money' every month: $40 billion a month in
mortgage-backed securities plus $45 billion a month in purchases of Treasurys (Greg Robb,
MarketWatch, 16 Jan 2013).
Thus, the situation is unsustainable: the raising of interest rates has already become inevitable,
after which the stock and bond bubbles will burst. The crash can be postponed (cf. the link
above), but will be even bigger.
I will be more than happy if you or any of your colleagues can offer a better forecast.
Thank you for your time and considerations.
Yours sincerely,
Dimi Chakalov
http://tinyurl.com/steel-evaporation
===============================================
Subject: Gen. Matti Peled
Date: Sun, 25 Nov 2012 21:01:25 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: Miko Peled <mikopeled@xxxx.xxx>
Cc: [snip]
Dear Mr. Peled,
I have great respect for your father. Probably many people would also fight for their country,
even with deep regrets from the 'double standards', as you put it in your recent talk in Atlanta,
GA,
http://www.brasschecktv.com/videos/israelpalestine/how-israel-came-to-be.html
Trouble is, the future doesn't look promising, because of people like Lyndon B. Johnson (USS
Liberty, 8 June 1967),
http://www.brasschecktv.com/videos/war-crimes-1/loss-of-liberty.html
The rebirth of Israel was indeed a miracle (Steven Weinberg), and miracles may be very
vulnerable to 'the unknown unknown' brought by the war on Iran and the devaluation of US
dollar,
http://tinyurl.com/dollar-ratio
http://tinyurl.com/steel-evaporation
And this is the ultimate threat to Israel.
People like you were the pioneers of interhuman ethics -- see Dr. Hajo Meyer,
http://www.youtube.com/watch?v=Xxa0grb4CNc
You represent the long standing tradition of justice and humanitarianism promoted by the real
Judaism. If you do not speak up and expose the facts, the very spirit of Israel may be severely
damaged.
I wish your father was here to help us.
With all good wishes,
Dimi Chakalov
-------------------The greatest miracle of our time is the rebirth of Israel in its ancient home.
Steven Weinberg, Lake Views: This World and the Universe, Belknap Press, 2010, p. 226
========================================
Subject: The *evaporation* of steel
Date: Sat, 1 Dec 2012 21:50:25 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: [snip]
Cc: Judy Wood [snip]
Dear colleagues,
Regarding the *evaporation* of steel shown at
http://drjudywood.com/articles/short/shortpics/bubbler.jpg
Please check out the facts at
http://tinyurl.com/steel-evaporation
http://tinyurl.com/dollar-ratio
Your professional comments will be highly appreciated.
Regards,
Dimi Chakalov
P.S. Ms Judy Wood cannot explain the *evaporation* of steel, and will never tell the truth, as she
never did in the past five years. Hope you will.
D.C.
Beirut, October 23, 1983
Question to President Obama
By John Nash
October 22, 2012 at 12:57 am
Dear Sir,
Concerning the Foreign Policy debate, I'd like to ask President Obama on the below topic:
Maybe you can help us VICTIMS of the 1983 Beirut Bombing, because our own President chooses
to support Iran instead of the American People.
We have suffered for 29 years already, and Obama has done NOTHING to assist, but everything
to screw us over.
I am a survivor of the Beirut Bombing of 1983 in which killed 241 Marines while were were
sleeping in our barracks on a Sunday morning.
To get straight to the point, the families of the Beirut bombing victims has sued Iran and won
$2.65B. All monies have been collected and are now in the NY treasury Dept.
Because of President Obama, we still have not received our money, because "Our President"
chooses to NOT give us authorization to get our payout because he has frozen the money and
placed a "Gag" order on the case because he says he is in friendly negotiations with the
president of Iran.
WE FEEL BETRAYED BY OUR OWN PRESIDENT AND SERIOUSLY QUESTION HIS LOYALTIES.
PRESIDENT OBAMA is the only reason why justice cannot be done, because he rather support
Iran vice American People, in which he is asking for our Vote.
Is there a way we can inform the America Population so they are aware of our presidents
priorities and loyalties?
Thank you!
v/r
John Nash
Subject: Gordon Duff (December 6, 2012): "There's no plane. There's a full video. There's no
plane. There's no plane."
Date: Fri, 4 Jan 2013 21:01:55 +0200
From: Dimi Chakalov <dchakalov@gmail.com>
To: Gordon Duff <gpduf@aol.com>
Cc: [skip]
http://www.forbiddenknowledgetv.com/videos/911/theres-no-plane.html
--------Dear Mr. Duff,
I suppose you were acting in line with Article 19 from The Universal Declaration of Human Rights,
adopted by the United Nations General Assembly on 10 December 1948: "Everyone has the right
to freedom of opinion and expression; this right includes freedom to hold opinions without
interference and to seek, receive and impart information and ideas through any media and
regardless of frontiers."
Please recall some bold facts about 9/11, which were recorded on the Internet in November
2001:
http://tinyurl.com/steel-evaporation
Current situation -- just the facts -- at
http://tinyurl.com/dollar-ratio
Would you say anything about these facts? You never responded to my previous email. Hope
now you will.
Kind regards,
Dimi Chakalov
================================
Those who cannot remember the past are condemned to repeat it.
George Santayana
Where were you when you heard about Kennedy's assassination?
Imagine America had there been no Vietnam War.
John Fitzgerald Kennedy, the 35th President of the United States, was assassinated on Friday, 22
November 1963 with a "magic bouncing" bullet.
The Intra-Administration War in Vietnam, by Arthur Krock
The New York Times, October 3, 1963
Where were you when you heard about 9/11?
Where will you be when you hear about the devaluation of US dollar?
D. Chakalov
November 21, 2012
http://www.scribd.com/doc/114068913/Aftershock
----------------FAIR USE NOTICE
The text and video material linked to this web page is provided exclusively for non-profit use. It
may contain copyrighted material the use of which has not been specifically authorized by the
copyright owner. We are making it available in our efforts to advance understanding of economic,
political, human rights, democracy, and social justice issues, and believe this constitutes a 'fair
use' of any such material.
Dimitar G. Chakalov
November 2012