Friday, November 19, 2010

HIV-AIDS was created to target gay men for Eugenics experiment, suggests U.S. doctor

Alan Cantwell, M.D. / The Canadian | March 30, 2008

There is no doubt that AIDS erupted in the U.S. shortly after government-sponsored hepatitis B vaccine experiments (1978-1981) using gay men as guinea pigs. The epidemic was caused by the “introduction” of a new retrovirus (the human immunodeficiency virus, or HIV for short); and the introduction of a new herpes-8 virus, the virus that causes Kaposi’s sarcoma, widely known as the “gay cancer” of AIDS. The taboo theory that AIDS is a man-made disease is largely based on research showing an intimate connection between government vaccine experiments and the outbreak of “the gay plague”

The widely accepted theory is that HIV/AIDS originated in a monkey or chimpanzee virus that “jumped species” in Africa. However, it is clear that the first AIDS cases were recorded in gay men in Manhattan in 1979, a few years before the epidemic was first noticed in Africa in 1982. It is now claimed that the human herpes-8 virus (also called the KS virus), discovered in 1994, also originated when a primate herpes virus jumped species in Africa. How two African species-jumping viruses ended up exclusively in gay men in Manhattan beginning in the late 1970s has never been satisfactorily explained.

Researchers who claim AIDS is a man-made disease believe it is much more likely that these two primate viruses were introduced and spread during the government’s recruitment of thousands of male homosexuals beginning in 1974.

Large numbers of gay men in Manhattan donated blood for the experimental hepatitis B vaccine trial, which took place at the New York Blood Center in Manhattan in 1978. Extensive evidence supporting the man-made theory of AIDS is easily found on the Internet by Googling: man-made origin of AIDS; and in my two books, “AIDS and the Doctors of Death” and “Queer Blood: The Secret AIDS Genocide Plot.”
Government interest in “gay health” before the AIDS epidemic

Beginning in the mid-1970s, government scientists became interested in the health of gay men, particularly in the realm of sexually-transmitted diseases, and specifically in the sexual transmission of the hepatitis B virus. The early 1970s was a time when large numbers of gays come out of the closet and identified themselves as homosexuals at government-sponsored health clinics. Organizations such as the Gay Men’s Health Project were formed at this time. Promiscuous gays were avidly sought as volunteers to test the efficacy of a newly-developed hepatitis B vaccine manufactured by Merck and the National Institutes of Health (NIH).

By 1977 over 13,000 Manhattan gays were screened to secure the final 1083 men who would serve as guinea pigs to test the hepatitis B vaccine. The vaccine was manufactured from the combined plasma of 30 highly selected gay men who carried the hepatitis B virus in their blood. Developed over a period of 65 weeks during 1977-1978 and tested for six months in chimpanzees (the primate in which HIV is thought to have originated), the first group of gay men were inoculated at the New York Blood Center in November 1978.

That same year a final cohort of 6875 homosexual men at the San Francisco City Clinic was assembled to study hepatitis B virus sexual transmission in that city. By the end of the decade gays in clinics in Los Angeles, Denver, Chicago, and St. Louis, also came under surveillance by the Centers for Disease Control. An additional 1402 volunteers were finally selected to participate in similar vaccine experiments in those cities beginning in March 1980.

Before 1978 there was no stored blood anywhere in the U.S. that tested positive for HIV or the KS virus. There were no cases of AIDS and no cases of “gay cancer” in young men.

The first cases of AIDS appeared shortly after the experiment began in Manhattan. In June 1981 the epidemic became official and was quickly labelled the “gay ­related immune deficiency syndrome”, later known as AIDS.

The gay community was the most hated minority in America. After the experiments ended, the gay community was decimated by the “gay plague.” In the first years of AIDS, the epidemic was largely ignored by the government (see Randy Shilt’s best-seller, And the Band Played On) and the disease was blamed on gay anal sex, drugs, and promiscuity. Gays were immediately labelled “high risk.”

In my view, what made gay men “high risk” was the fact that they were the exclusive volunteers for government medical experiments that undoubtedly put them at “high risk.” The evidence for this conclusion is outlined in this report. Further evidence can be obtained from abstracts of scientific reports available on the Internet at the PubMed website of the National Library of Medicine.



The experimental hepatitis B vaccine injected into gays was unlike any other vaccine previously made. As stated, it was developed in chimpanzees and manufactured in a year-long process of sterilization and purification of the pooled blood of 30 gay men who were hepatitis B virus carriers.

The final group of 1083 selected for the first experiment at the Blood Center were inoculated from November 1978 until October 1979. At one point, there was great concern that the vaccine might be contaminated. 
According to June Goodfield’s Quest for the Killers, p 86, “This was no theoretical fear, contamination having been suspected in one batch made by the National Institutes of Health, though never in Merck’s.” Each gay man was given three inoculations of the vaccine over a period of three months. The vaccine proved successful with 96% of the men developing protective antibodies against the hepatitis B virus.

It has been assumed by some that these men might have been already immunosuppressed due to promiscuity and venereal disease. Although the young men in the study were indeed “promiscuous” (this was a requirement for entrance into the study), they were in excellent health. Despite many previous sexual partners, these volunteers had never been infected with the hepatitis B virus, which was a requirement for participation in the experiment. Furthermore, the 96% success rate would not have been accomplished if the men were immunosuppressed, because such people often do not respond to the vaccine.

When Robert Gallo’s blood test for HIV became available in the mid-1980s, the New York Blood Center’s stored gay blood specimens were re-examined. Most astonishing is the fact that 20% of the gay men who volunteered for the hepatitis B experiment in Manhattan were discovered to be HIV-positive in 1980 (one year before the AIDS epidemic became “official” in 1981). This signifies that Manhattan gays in 1980 had the highest incidence of HIV anywhere in the world, including Africa, the supposed birthplace of HIV and AIDS. In addition, we now know that one out of five gay men (20%) tested positive for the new KS herpes-8 virus in 1982 when stored blood samples from an AIDS trial in New York City were re-examined by epidemiologists at the NCI in 1999.

Never mentioned by AIDS historians is the fact that the New York Blood Center established a chimp virus laboratory for viral vaccine research in West Africa in 1974. One of the purposes of VILAB II, in Robertsfield, Liberia, was to develop the hepatitis B vaccine in chimps. The lab also prides itself by releasing “rehabilitated” (but virus-infected) chimps back into the wild, perhaps accounting for some of the ancestors of HIV and the KS virus found in the jungle by some government researchers. The Virus Cancer Program and the birth of AIDS,

In the decade before AIDS the Virus Cancer Program (1968-1980), sponsored by the National Institutes of Health, attempted to prove that viruses caused human cancer. Ultimately the Program was unsuccessful in providing proof, yet it succeeded in building up the field of animal retrovirology, which led to a more complete understanding of how cancer-causing and immunosuppressive viruses in animals might cause disease in humans. The VCP was also the birthplace of genetic engineering, molecular biology, and the human genome project. As the VCP was winding down in the late 1970s, the gay experiments began in New York City.
The introduction of HIV and the KS herpes virus into gay men during this period (along with some “novel” and now-patented mycoplasmas discovered at the Armed Forces Institute of Pathology) miraculously revived the career of Robert Gallo and made him the most famous virologist in the world. And, of course, turned the “failure” of the VCP into a triumph by providing proof that these primate-derived viruses could cause disease in humans.







The fear of the hepatitis B vaccine

When AIDS began there were scattered reports in the medical journals questioning whether the “gay plague” might have its origin in the hepatitis B experiments. It was well-known in medical circles that the vaccine was made from the pooled plasma of gay men – and there was fear that the AIDS agent might be in the vaccine. As a result, when the hepatitis B commercial vaccine became available in July 1982, many people refused to be injected with it.

The fear of the vaccine was readily admitted by the CDC. Nevertheless, in detailed reports the CDC concluded that the vaccine was safe. Although it was clear the hepatitis B vaccine eliminated all “known” viruses, this obviously did not apply to “unknown” viruses at the time, such as HIV and the KS virus.

After HIV was discovered in 1984 some of the vaccine was retested and declared free of HIV. Of course, it was impossible to say whether the vaccine contained the KS virus, because this virus was undiscovered until 1994. I am unaware of any subsequent testing of the vaccine for this herpes KS virus.

Possible contamination problems with the hepatitis vaccine was the impetus that led Luc Montagnier to hunt for a virus in the new gay disease in the autumn of 1982. He began testing batches of human plasma for “reverse transcriptase activity”, a biochemical sign indicating the possible presence of a retrovirus. (See page 46 of his book “Virus”). Montagnier’s research eventually led to the first discovery of the AIDS virus at the Pasteur Institute in Paris.

Although the CDC and the New York Blood Center claimed it was safe, many health professionals refused the hepatitis B vaccine. In 1985, only 23 out of 162 Rhode Island dentists agreed to take the vaccine because of concerns about AIDS. As late as 1990, 13 out of 14 black nurses at a university hospital refused to take the vaccine for the same reason.

The fate of the gay men in the gay experiments

The purpose of the gay experiments was to test a vaccine that could immunize people against hepatitis B virus. Infection with this virus could lead to severe liver disease and sometimes to liver cancer. Ironically, an unprecedented explosion of cancer took place in male homosexuals after the experiment. Reports of the fate of these men attest to the fact that participating in the government’s experiments was clearly injurious to the health of gay men.

Significantly, there were no reported blood specimens anywhere in the U.S. that were HIV-positive prior to the epidemic in 1979, except in the samples stored at the NYBC.

In a May 12, 1983, letter to the editor of The New England Journal of Medicine, Cladd Stevens (who supervised the NYBC experiment) wrote : “No cases haves occurred in the vaccine recipients from populations at low risk of AIDS, and there is no excess incidence in the high-risk population.” But this proved to be incorrect in later reports co-authored by Stevens.

In a 1985 report Cladd Stevens et al. claimed that seven men (out of 1083) were HIV-positive before they received either vaccine or placebo. If true, this indicates that HIV (and possibly the KS virus) was already present in the blood of Manhattan homosexuals and could have contaminated the pooled blood of gays whose plasma was used to make the vaccine in 1977.

As stated previously, a 1986 report in JAMA showed 20% of the men in the experiment were already infected with HIV by the end of 1981; and by 1984, more than 40% of the men were HIV-positive and doomed to death.

Another follow-up study of 8,906 gay men who donated blood for the hepatitis experiments in Manhattan was released in 1992. Statistical analysis of this group showed that mortality rates for men aged 25-44 began to rise in the 1980s, with AIDS the leading cause of death among young men in New York City. Remarkably, “The all-cause mortality in this cohort in 1988 was 24 times higher that the mortality rate in the cohort before the beginning of the AIDS epidemic.”

Was the hepatitis B vaccine contaminated with HIV and the KS virus?

Largely forgotten in AIDS history is the hepatitis B vaccine trial that also took place with 685 gay Dutch volunteers in Amsterdam between November 1980 and December 1981. Unlike the American vaccine makers, the Dutch researchers heated their experimental hepatitis B vaccine for added safety.

A 1986 report of the trial clearly states the AIDS virus “was not transmitted by the heat inactivated hepatitis B vaccine.” Of the 685 participants, five were already infected with HIV when the trial began. The researchers theorized that HIV entered the Dutch gay population at the end of the 1970s.

Another follow-up Dutch report of this trial in 1993 again suggests the efficacy of heating the vaccine for safety. (The experimental vaccine was not heated in the U.S. until after all the gay experiments were completed.) At the end of 1982, one year after the Dutch experiment had ended, only As stated previously, a 1986 report in JAMA showed 20% of the men in the experiment were already infected with HIV by the end of 1981; and by 1984, more than 40% of the men were HIV-positive and doomed to death.

7.5% of the Amsterdam men were infected. In contrast, 26.8% of the men in the New York experiment were HIV-positive; and a whopping 42.6% of the San Francisco men were HIV-positive. These statistics showing many men infected in the American trials in 1982 further prove that Cladd Stevens of the NYBC, and the CDC, were incorrect in declaring there was no excess incidence of AIDS in the “high-risk” gay male population.


The fate of all the men who participated in the hepatitis B vaccine trials in six U.S cities has never been revealed. However, it is likely from the statistics presented in JAMA in 1986 that many, if not most, of the men eventually died of AIDS. The actual number of AIDS deaths has never been revealed, nor have the individual medical records been studied. Attempts to secure this information have been rebuffed by the Blood Center, due to the “confidential” nature of the experiment.

“Gay Cancer” and the origin of AIDS

After the introduction of HIV and the KS virus into the U.S. gay male population in the late 1970s, the incidence of KS skyrocketed.

A 1989 report by Biggar found no cases of KS in young men in New York City during the years 1973-1976. But by 1985 the incidence of KS in “never-married men” in Manhattan had increased 1850 times. In San Francisco the rate of KS increased over 2000 times!

KS is now 20,000 times more common in AIDS patients than in the general population. A 1985 autopsy study by Lee Moskowitz of 52 AIDS cases (23 Haitians, 19 gays, 5 intravenous drug abusers, 2 hemophiliacs, and 3 persons at unknown risk) showed that 94% of AIDS patients from the various risk groups had internal KS. The CDC claims KS now occurs in only 15% of gay men (down from 30% at the beginning of the epidemic), but these statistics are not based on current autopsy studies
KS was never a sexually-transmitted disease before the introduction of HIV into gays. For a century after the first reported KS cases were discovered in Vienna in 1872, there was no evidence that KS could be transmitted from person-to-person.

By 1950, a more aggressive “endemic” form of KS was uncovered in African blacks. Still, there was no evidence the disease was transmissible or contagious. Suddenly with the introduction of HIV into the homosexual community, scientists began to view KS as a contagious “gay cancer” out of Africa.
The new KS virus is closely related to a monkey tumour virus, known as herpes virus saimiri, that was extensively studied by researchers in the VCP in the decade before the epidemic. Initially found only in KS from AIDS patients, the new KS virus has also been found in non-AIDS-related KS tumours and in other forms of cancer, such as lymphoma and multiple myeloma.

HIV is a cancer-causing virus. Infection with HIV (with or without the KS virus) has resulted in a noticeable increase in various forms of cancer. A 2005 study of over 4000 AIDS patients showed higher rates of melanoma, basal and squamous cell skin carcinomas, anal carcinoma, prostate carcinoma, and Hodgkin disease, when compared with age-adjusted rates for the general United States population.

The KS virus is now in the U.S. blood supply; and blood is not screened routinely for this virus. A 2001 study indicated that 15% of normal Texas blood donors showed evidence of KS virus infection in the blood. A 2002 study of healthy children (ages 4-13) in South Texas showed that 26% had antibodies to the KS virus in their blood.

Is AIDS a man-made disease?

How did these two viruses of primate origin get into the gay male population to cause AIDS and a contagious form of cancer? AIDS experts blame monkeys and chimps in the African jungle. My research indicates it is much more likely these viruses were introduced during government-sponsored hepatitis B experiments using gays as unsuspecting guinea pigs. Extensive documentation of past “secret medical experiments” by the government can be found on Google. A recent BBC news report (30 Nov 2004) uncovering unauthorized and dangerous HIV drug experiments on infants and children in New York City orphanages can be found by “Googling“: BBC + guinea pig kids.

Until proven otherwise, a “new” HIV retrovirus and a “new” KS virus could easily have been developed in a laboratory as part of the Virus Cancer Program. In the decade before AIDS it was common to transfer and adapt primate retroviruses and herpes viruses into human cells in genetic engineering experiments. Such viruses were deemed potential “candidate human viruses,” as clearly stated in the annual progress reports of the VCP. For further details on the relationship of the VCP to the introduction of HIV, Google: virus cancer program + AIDS.

The connection between the hepatitis experiments and the AIDS epidemic was quickly dismissed by government authorities two decades ago. However, it is clear from a review of the scientific literature that the “gay plague” began immediately after the government experiments; and the experiments permanently damaged the health of the gay community, and led to continuing spread of HIV into the “general population.”
Are we to believe that all this is merely a coincidence -and that AIDS in America resulted simply from two viruses jumping species in the African jungle? Or is the origin of HIV and AIDS -and the KS virus- related to secret medical research and covert human testing, as suggested here.

About the writer:

Dr. Alan Cantwell is an author of diverse books on the man-made origin of AIDS and the infectious origin of cancer, all published by Aries Rising Press, PO Box 29532, Los Angeles, CA 90029.

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Veterans Agency Made Secret Deal Over Benefits

David Evans
Bloomberg
September 14, 2010

The U.S. Department of Veterans Affairs failed to inform 6 million soldiers and their families of an agreement enabling Prudential Financial Inc. to withhold lump-sum payments of life insurance benefits for survivors of fallen service members, according to records made public through a Freedom of Information request.

The amendment to Prudential’s contract is the first document to show how VA officials sanctioned a payment practice that has spurred investigations by lawmakers and regulators. Since 1999, Prudential has used so-called retained-asset accounts, which allow the company to withhold lump sum payments due to survivors and earn investment income on the money for itself.


The Sept. 1, 2009, amendment to Prudential’s contract with the VA ratified another unpublicized deal that had been struck between the insurer and the government 10 years earlier — one that was never put into writing, Bloomberg Markets magazine reports in its November issue. This verbal agreement in 1999 provoked concern among top insurance officials of the agency, the documents released in the FOIA request show.

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CONFIRMED: Psychiatric Manual DSM-IV-TR Labels free Thinkers, non conformers as Mentally Ill

Author: Brian D. Hill

It is now confirmed by USWGO News that the DSM-IV-TR Manual labels free thinkers, non conformers, civil disobedient advocates, those that question authority, and people considered hostile toward the government (aka Oath keepers and local militias) as mentally ill with the illness titled “oppositional defiant disorder” or ODD.

It was reported on October 8 2010 from OffTheGrid News that anybody who is disobedient, defiant,  a free thinker, or even considered hostile toward authority was to be labeled by psychiatrists as ‘Mentally Ill’.
Now I have got my hands on a ebook version of the year 2000 version of the ‘Diagnostic and Statistical Manual of Mental  Disorders DSM-IV-TR Fourth Edition (Text Revision) By the American Psychiatric Association version DSM-TV-TR (The non TR Version was said to be older and so I got the newer one which had the information that Off The Grid News warned about).

Now as I search up the keywords “oppositional defiant disorder” on adobe reader I found exactly what Off The Grid News was talking about. So it is now Confirmed basically that anyone who disobeys authority or even questions authority is now considered mentally ill and can be thrown in a prison-like mental institution under tax payers dollars.
3 Pages of the eBook of ‘Diagnostic and Statistical Manual of Mental Disorders DSM-IV-TR Fourth Edition’
So lets just get to the basics of what this is talking about for those that don’t exactly understand what this is saying:
So now according to the ebook it states that:
The essential feature of Oppositional Defiant Disorder is a recurrent pattern of negativistic,
defiant, disobedient. and hostile behavior toward authority figures that persists
for at least 6 months
So in other words if a student gives out 9/11 truth fliers and a teacher says “You don’t have a Constitutional right to give out fliers good buddy” then non compliance is considered hostile or disobedient. Also if I am with the Oath Keepers that refuse to obey unlawful orders from authorities then that also fits them and me as disruptive and hostile towards authority. If the psychiatrists use the ODD illness on regular adults then I am sure many disgruntled tax paying Americans and those that no longer consent to be governed would be forcefully medicated, forced to accept being a slave to society, or stay in a mental prison institution complex for the rest of their days. That seems to be where this manual is getting at according to the fact I was able to obtain the full copy of the psychiatric manual.
Negativistic and defiant behaviors are expressed by persistent Stubbornness, resis·
tance to directions, and unwillingness to compromise, give in, or negotiate with
adults or peers. Defiance may also include deliberate or persistent testing of limits,
usually by ignoring orders, arguing, and failing to accept blame for misdeeds. Hostility
can be directed at adults or peers and is shown by deliberately annoying others
or by verbal aggression (usually without the more serious physical aggression seen
in Conduct Disorder).
So in other words it is okay to compromise with those that commit treason to this country and those that disobey their Oath to the Constitution. The day we start accepting and compromising with those that wish to take away our freedoms then that is the path to start losing all of our freedoms and rights for good. Also this manual speaks against any anti-social behavior so that means that if your not in a organized religion, not being social enough in society, and may have viewpoints that are unpopular then you will also be labeled as having ODD.
Defiance may also include deliberate or persistent testing of limits,
usually by ignoring orders, arguing, and failing to accept blame for misdeeds
So if I was a active duty soldier and was told to confiscate peoples guns, assassinate American citizens, and start silencing dissent and I refuse those orders plus argue with the commander in chief regarding the illegal orders then that makes me mentally ill and the Unconstitutional treasonous monsters the hero.

So it is now confirmed that psychiatrists will start targeting brave people like George Washington, anti Federal Reserve activists, activists, and even those against tyranny with mental illnesses such as “oppositional defiant disorder” as we head into more of a Military Dictatorship where freedom does not exist and all functions of society must function like a cold hard machine and any who feel the need to be away from this machine society will not be tolerated by the Police State minions and will either be killed or pumped up with so much drugs that the person will feel like a zombie.

Also what are free thinkers anyways, Free thinkers are those that feel they should have the right to live the way they choose freely as long as they don’t harm anybody, don’t harm the persons property, and don’t harm other peoples rights. A free thinker is a person that believes they should have the rights to think freely without any risk of persecution.

These are the full list of who all will be targeted by this new disorder created by the American Psychiatric Association:
  1. Free Thinkers – Because they get in the way of the police state and become a obstacle to authority
  2. Non conformers – Because they will cause civil disobedience which will make things harder on authorities
  3. Oath Keepers – Because they will actively refuse any orders from higher ups to shoot American citizens, confiscate Americans guns when this action conflicts with the 2nd amendment, follow illegal orders aka orders that conflict with the Constitution and the laws legally passed. Oath keepers teach people to be disobedient to any authority that breaks the Constitution.
  4. Highly creative artists – Because they are wasting time in the police state society and so they must also work like clockwork to be a good slave in society or risk being thrown in a mental institution.
  5. Anyone that questions authority – Because the authority is god and anybody that questions authority must be a troublemaker that wishes to destabilize a society and commit acts of terrorism.
So there we have it the American Psychiatric Association is putting in their Diagnostic and Statistical Manual of Mental  Disorders DSM-IV series that free thinkers, civil disobedient advocates, and Oath keepers are all mentally ill that are anti-social and may cause behavior problems in our modern society.

The Constitution is at risk again as the fascists keep finding ways to indoctrinate the youth and finding new ways to make people conform to the new Unconstitutional ways of society. We are being incrementally prepared to accept the new treasonous Unconstitutional takeover.

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Monday, November 8, 2010

Banks spying on your bills, rent payments, paychecks: report

The age of the plain old credit score is gone, says a report at the Wall Street Journal, and it's been replaced by ever more intrusive efforts by banks and credit agencies to gauge exactly what you're worth, and what you can pay.

To that end, financial firms are now tracking their customers' bank deposits, rent payments or home values, and even utility bills to figure out who may soon become a financial risk, reports WSJ's Karen Blumenthal.
So, for example, if your employer pays you through direct deposits and those deposits stop, financial institutions can now have warning that your money situation is likely to tighten, and may deny you credit on that basis.

But the efforts don't end there. A new area of research, income estimation, "took off earlier this year," WSJ reports, and involves financial firms collecting information about mortgages, personal loans and credit history to determine how much an individual makes and how much credit they should be given.

In this new era of deep data-mining, even your utility bills and rent check aren't out of bounds.

Full Article

Saturday, November 6, 2010

9 Reasons Why Quantitative Easing Is Bad For The U.S. Economy

Buckle up and hold on - a new round of quantitative easing is here and things could start getting very ugly in the financial world over the coming months.  The truth is that many economists fear that an out of control Federal Reserve is "crossing the Rubicon" by announcing another wave of quantitative easing.  Have we now reached a point where the Federal Reserve is simply going to fire up the printing presses and shower massive wads of cash into the financial system whenever the U.S. economy is not growing fast enough?  If so, what does the mean for inflation, the stability of the world financial system and the future of the U.S. dollar?  The Fed says that the plan is to purchase $600 billion of U.S. Treasury securities by the middle of 2011.  In addition, the Federal Reserve has announced that it will be "reinvesting" an additional $250 billion to $300 billion from the proceeds of its mortgage portfolio in U.S. Treasury securities over the same time period.  So that is a total injection of about $900 billion.  Perhaps the Fed thought that number would sound a little less ominous than $1 trillion.  In any event, the Federal Reserve seems convinced that quantitative easing is going to work this time.  So should we believe the Federal Reserve?


The truth is that the Federal Reserve has tried this before.  In November 2008, the Federal Reserve announced a $600 billion quantitative easing program.  Four months later the Fed felt that even more cash was necessary, so they upped the total to $1.8 trillion.

So did quantitative easing work then?

No, not really.  It may have helped stabilize the economy in the short-term, but unemployment is still staggeringly high.  Monthly U.S. home sales continue to come in at close to record low levels.  Businesses are borrowing less money.  Individuals are borrowing less money.  Stores are closing left and right.

The Fed is desperate to crank the debt spiral that our economic system is now based upon back up again.  The Fed thinks that somehow if it can just pump enough nearly free liquidity into the banking system, the banks will turn around and lend it out at a markup and that this will get the debt spiral cranking again.

The sad truth is that the Federal Reserve is not trying to build an economic recovery on solid financial principles.  Rather, what the Federal Reserve envisions is an "economic recovery" based on new debt creation.

So will $900 billion be enough to get the debt spiral cranked up again?

No.

If 1.8 trillion dollars didn't work before, why does the Federal Reserve think that 900 billion dollars is going to work now?  This new round of quantitative easing will create more inflation and will cause speculative asset bubbles, but it is not going to fix what is wrong with the economy.  The damage is just too vast as Charles Hugh Smith recently explained....
Anyone who believes a meager one or two trillion dollars in pump-priming can overcome $15-$20 trillion in overpriced assets and $10 trillion in uncollectible debt may well be disappointed.
In fact, economists over at Goldman Sachs estimate that it would take a staggering $4 trillion in quantitative easing to get the economy rolling again.

Of course that may eventually be what happens.  The Fed may be starting at $900 billion just to get the door open.  With these kinds of bureaucrats, once you give them an inch they usually end up taking a mile.

So why should we be concerned about quantitative easing?  The following are 9 reasons why quantitative easing is bad for the U.S. economy....

#1 Quantitative Easing Will Damage The Value Of The U.S. Dollar
Each time you add a new dollar to the system, it decreases the value of each existing dollar by just a little bit.  Now the Federal Reserve is pumping 900 billion dollars into the system and that is going to have a significant impact.  Bill Gross, the manager of the largest mutual fund in the entire world, said on Monday that he believes that more quantitative easing could result in a decline of the U.S. dollar of up to 20 percent....
"I think a 20 percent decline in the dollar is possible."
#2 Inflation Is Going To Hit Already Struggling U.S. Consumers Really Hard
Already, investors have been fleeing from the U.S. dollar and other paper currencies and have been flocking to commodities, precious metals and oil.  That means that the price of food is going to go up.  The price of gasoline is also going to go up.  American families are going to find their budgets stretched even more in the months ahead.

#3 Once An Inflationary Spiral Gets Going It Is Really Hard To Stop
The Federal Reserve is playing a very dangerous game by flirting with inflation.  Once an inflationary spiral gets going, it is really difficult to stop.  Just ask anyone who lived through the Weimar Republic or anyone who lives in Zimbabwe today.  If the Federal Reserve is now going to be dumping hundreds of billions of fresh dollars into the system whenever the economy gets into trouble it is inevitable that we will see rampant inflation at some point.

#4 Inflation Is A Hidden Tax On Every American
Tens of millions of Americans have worked incredibly hard to save up a little bit of money.  These Americans are counting on that money to pay for a home, or to pay for retirement or to pay for the education of their children.  Well, inflation is like a hidden tax on all of those savings.  In fact, inflation is a hidden tax on every single dollar that all of us own.  We have been taxed more than enough - we certainly don't need the Federal Reserve imposing another hidden tax on all of us.

#5 The Solution To The Housing Bubble Is Not Another Housing Bubble
Today, approximately a third of all U.S. real estate is estimated to have negative equity.  The Federal Reserve apparently believes that by flooding the system with gigantic sacks of cash banks will start making home loans like crazy again and home prices will rise substantially once again - thus wiping out most of that negative equity.

But the solution to the housing bubble is not another housing bubble.  The kinds of crazy home loans that were made back in the middle of the decade should never be made again.  Market forces should be allowed to bring the housing market to a new equilibrium where ordinary Americans can actually afford to purchase homes.  But that is not how our system works anymore.  Today, everything has to be manipulated.

#6 More Quantitative Easing Threatens To Destabilize The Global Financial System
We have already entered a time of increasing global financial instability, and the Federal Reserve is not going to help things by introducing hundreds of billions of new dollars into the game.  Over the past two decades, bubble after bubble has caused tremendous economic problems, and now all of this new money could give rise to new bubbles.  Already, we see financial institutions and investors pumping up carry trade bubbles, engaging in currency speculation and driving up commodity prices to ridiculous levels.

#7 Quantitative Easing Is An Aggressive Move In A World Already On The Verge Of A Currency War
Quantitative easing will likely help U.S. exporters by causing the value of the U.S. dollar to sink.  However, this gain by U.S. exporters will come at the expense of foreigners.  It is essentially a "zero sum" game.  So all of those exporting countries that are already upset with us will become even more furious as the U.S. dollar declines.  Could we witness the first all-out "global currency war" in 2011?  

#8 Quantitative Easing Threatens The Status Of The Dollar As The World Reserve Currency
As the Federal Reserve continues to play games with the U.S. dollar, quite a few nations around the globe will start evaluating whether or not they want to continue to trade with the U.S. dollar and use it as a reserve currency.

In fact, a recent article on The Market Oracle website explained how this is already happening....
In September, China supported a Russian proposal to start direct trading using the yuan and the ruble rather than pricing their trade or taking payment in U.S. dollars or other foreign currencies. China then negotiated a similar deal with Brazil. And on the eve of the IMF meetings in Washington on Friday, Premier Wen stopped off in Istanbul to reach agreement with Turkish Prime Minister Erdogan to use their own currencies in a planned tripling Turkish-Chinese trade to $50 billion over the next five years, effectively excluding the dollar.
#9 It Is Going To Become More Expensive For The U.S. Government To Borrow Money
Right now, the U.S. government has been able to borrow money at ridiculously low interest rates.  But as the Federal Reserve keeps buying up hundreds of billions in U.S. Treasuries, the rest of the world is going to start refusing to participate in the ongoing Ponzi scheme.

Peter Schiff, the CEO of Euro Pacific Capital, says that one of the big reasons for more quantitative easing is because the U.S. government is already starting to have difficulty finding enough people to borrow from....
At the end of the day, all this deflation talk is a red herring. The true purpose of QE 2 is to disguise the decreasing ability of the Treasury to finance its debts. As global demand for dollar-denominated debt falls, the Fed is looking for an excuse to pick up the slack. By announcing QE 2, it can monetize government debt without the markets perceiving a funding problem.
But the truth is that foreigners are not stupid.  They can see the shell game that is being played.  As Bill Gross noted on Monday, U.S. government debt will soon become a lot less attractive to foreign investors....
QEII not only produces more dollars but it also lowers the yield that investors earn on them and makes foreigners, which is the key link to the currencies, it makes foreigners less willing to hold dollars in current form or at current prices.
As foreigners begin to balk at all of this nonsense, the U.S. government will either have to start paying higher interest rates on government debt in order to attract enough investors, or the Federal Reserve will just have to drop all pretense and permanently start buying up most of the debt.  Either way, once faith has been lost in U.S. Treasuries the financial world will never, ever be the same.

Most Americans have absolutely no idea how fragile the world financial system is right now.  Once the rest of the world loses faith in the U.S. dollar and in U.S. Treasuries this entire thing could completely unravel very quickly. 

The Federal Reserve is playing a very dangerous game.  They are openly threatening the delicate balance of the world financial system.

Once the toothpaste is out of the tube, it is really hard to put it back in again.  Cross your fingers and hold on tight, because things are going to get really bumpy ahead.

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Friday, November 5, 2010

The World Bank Is Quietly Funding a Massive Corporate Water Grab

By Scott Thill, AlterNet
Posted on November 2, 2010, Printed on November 5, 2010
http://www.alternet.org/story/148700/

Billions have been spent allowing corporations to profit from public water sources even though water privatization has been an epic failure in Latin America, Southeast Asia, North America, Africa and everywhere else it's been tried. But don't tell that to controversial loan-sharks at the World Bank. Last month, its private-sector funding arm International Finance Corporation (IFC) quietly dropped a cool 100 million euros ($139 million US) on Veolia Voda, the Eastern European subsidiary of Veolia, the world's largest private water corporation. Its latest target? Privatization of Eastern Europe's water resources.

"Veolia has made it clear that their business model is based on maximizing profits, not long-term investment," Joby Gelbspan, senior program coordinator for private-sector watchdog Corporate Accountability International, told AlterNet. "Both the World Bank and the transnational water companies like Veolia have clearly acknowledged they don't want to invest in the infrastructure necessary to improve water access in Eastern Europe. That's why this 100 million euro investment in Veolia Voda by the World Bank's private investment arm over the summer is so alarming. It's further evidence that the World Bank remains committed to water privatization, despite all evidence that this approach will not solve the world's water crisis."

All the evidence Veolia needs that water grabs are doomed exercises can be found in its birthplace of France, more popularly known as the heartland of water privatization. In June, the municipal administration of Paris reclaimed the City of Light's water services from both of its homegrown multinationals Veolia and Suez, after a torrent of controversy. That's just one of 40 re-municipilazations in France alone, which can be added to those in Africa, Asia, Latin America, North America and more in hopes of painting a not-so-pretty picture: Water privatization is ultimately both a horrific concept and a failed project.

"It's outrageous that the World Bank's IFC would continue to invest in corporate water privatizations when they are failing all over the world," Maude Barlow, chairwoman of Food and Water Watch and the author of Blue Covenant: The Global Water Crisis and the Fight for the Right to Water, told AlterNet. "A similar IFC investment in the Philippines is an unmitigated disaster. Local communities and their governments around the world are canceling their contracts with companies like Veolia because of cost overruns, worker layoffs and substandard service."

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