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May 21, 2010

Did the US Army help spread Morgellons and other diseases?

by Hank P. Albarelli Jr. & Zoe Martell

Last week's Voltaire Network article concerning the mysterious spread of a fungus disease in the Northwest United States provoked a number of readers to contact Mr. H. P. Albarelli Jr., the author of both these articles, with new information concerning strange diseases and the U.S. Army's covert biological warfare activities which involve the use of chemical and biological weapons against human beings. There is a history of U.S. secret human experimentation. In this case, it is unsuspecting U.S. citizens that are the victims.
I went to put some of the medicated salve on the lesions on my face and when I put the salve near them the filaments beneath my skin moved into a group and then moved away from the area I was going to treat. I was dumbstruck. I didn't know what to think. I screamed for my husband to come Š the damn things beneath my skin were alive; they moved to avoid treatment.
Morgellons victim, Vermont, May 2010.
One reader, former military scientist, Dr. Hanley Watson, revealed that the Army, "from 1950 to at least mid-1976" conducted "numerous experiments simulating biological or germ warfare attacks in dozens of locations across the country." Said Watson, "Previously these experiments were downplayed by the Pentagon as 'harmless tests' occurring in about 8 areas in the US and employing benign substances, but this couldn't be further from the truth."

Watson was referring to a 1976 Pentagon press conference during which an Army spokesman revealed that researchers with the Army's Fort Detrick and Edgewood Arsenal, both in Maryland, conducted "simulated germ warfare attacks, using nondisease [sic] causing biological substances in 8 areas of the US." Among these experiments were a 1950 operation off the coast of San Francisco; a 1966 biological warfare experiment in Manhattan in which "the vulnerability of the New York subway system was tested"; and at least three experiments conducted in Pennsylvania, Fort McClellan, Alabama, and California with "fungal substances" to "perform field evaluations to determine vulnerability to enemy biological attack."

As widely reported in the mid-1970s, the San Francisco experiment resulted in the death of at least one person. Additionally, the 1952 Alabama experiments resulted in a doubling of pneumonia cases in the surrounding areas. Nonetheless, Army officials stated, "There is nothing we have that shows any links between these tests and any outbreak of infection or any deaths."

Army officials went on in defending themselves and the experiments by stating that the substance the Army used in many of the experiments was Serratia marcescens, which they maintained is harmless. Said the Pentagon, "The substance is present throughout the environment and is considered not to cause disease." But other physicians said this claim is simply wrong. Several responsible physicians pointed out that Serratia marcescens does cause infection in humans; and is commonly found in bathrooms and public rest rooms. Doctors also state that some strains of the bacterium are resistant to multiple antibiotics.

Eventually in 1976, the Pentagon amended its position, stating: "For some individuals who lack a capability to develop immunity to most disease Serratia marcescens could conceivably act as an opportunist and produce an infection." Assumably, the Pentagon was not referring to AIDS patients, however, it is interesting to note that 1976 was about 6 years into its research on a disease that sounded remarkably like AIDS. Also, apparently the Pentagon was unaware of a 1946 Fort Detrick medical journal paper by Dr. Tom F. Paine, which detailed an Army experiment with Serratia marcescens that resulted in illness and infection in 4 subjects exposed to the bacterium delivered in aerosol form.

Explained Watson further, "The experiments conducted from the early 1950s through 1976 were many more in number than officially stated, and they were conducted in many more locations than the reported eight." Added Watson, "In the 1950s and 1960s alone there were easily about two dozen experiments conducted in the New England area." One of the larger experiments, as detailed in my book, A Terrible Mistake: The Murder of Frank Olson and the CIA's Secret Cold War Experiments [1], is the strange, and allegedly coincidental, experiment at a Manchester, New Hampshire woolen mill that resulted in the anthrax-related tragic deaths of 4 mill employees. In September 1957, at the same time the outbreak took place, biochemists from Fort Detrick just happened to be on site at the mill performing tests with an anthrax vaccine. Fort Detrick researcher Dr. George G. Wright had developed the prototype vaccine being tested at the mill. Wright's vaccine is essentially the same controversial serum administered today to American troops.

Watson also cited a number of Army experiments conducted during the same time period and later with spore-borne diseases. One of these experiments was conducted in Mechanicsburg, Pennsylvania. There the Army used a fungal substance known as aspergillus fumigatus. Watson said that this fungal substance could result in disease and severe infection in humans. In addition to the aspergillus fungus, Watson and a former Fort Detrick microbiologist said the Army, through the Special Operation Division (SO) at Fort Detrick, experimented with several other fungus substances including spore-borne C. gattii from Australia, and with a "substance very much like Morgellons disease in its effects."

This substance was referred to as "FD-CPX." Said the former Detrick scientist, who worked under project MK/NAOMI, a joint CIA-Army program for 6 years, "CPX was a problematic substance for us. We worked with it in mutated form, and a number of sub-contractors came down with the disease and that caused all sorts of additional problems. They were still working with it when I left the post. I don't know if SO ever got it right."

The Mechanicsburg experiment took place, according to Pentagon officials, "in a warehouse in the area" that "was completely closed off to others not participating in the tests." Said an Army spokesman, "The fungus was not released into the atmosphere outside the warehouse and presented no dangers to anyone unrelated to the activity."

In light of future developments in Mechanicsburg, following the experiment, this assertion is difficult to accept. Several years after the Army activities, scientists in Pennsylvania began to notice that an unusually large number of animals, including cats, dogs and horses that had become ill from the fungus infection. Reportedly, the number of animals that became ill increased for a number of years.

Dr. Watson, along with two other former Fort Detrick researchers, including the late Dr. Henry Eigelsbach, also revealed an odd experiment that took place in Pascagoula, Mississippi and produced one of the most puzzling UFO and strange entity cases on record in America. This was the incident, detailed in Albarelli's book, involving two local fishermen who claimed to have been abducted by aliens from a fishing pier in October 1973. Much overlooked in the case is that the pier was not far away from a former Fort Detrick research site, Horn Island. The barrier island was formally used from 1943 to 1945 by Army researchers, but former microbiologists with the military report that several experiments were conducted on the island, and other islands off the coast of Maryland, in the late-1960s and early1970s. Detrick microbiologists conducted intensive experiments on the islands "involving human research subjects" and a number "of natural hallucinogenics as well as advanced neuroscience techniques" aimed at the objection of producing "previously unexplored and unique psychological warfare methods." Some researchers maintain that these experiments were part of the Army's top-secret Operation Strange Man, which is said to have involved "mutated human subjects." As unbelievable as these reports seem, there have been unexplained sightings, some by law enforcement officials, of very odd humanoid creatures in several of the related locations over the years. Said one of Watson's former Detrick colleagues: "These were experiments involving human subjects that went way beyond what anyone could imagine. Some of the findings and technology was transferred to Southeast Asia during the later stages of the war there."

Besides Horn Island, the Army's Chemical Corps and Fort Detrick conducted numerous experiments at Plum Island off the coast of New York. Plum Island, originally known as Fort Terry, In the early 1950s it was under the command of the Army Chemical Corps, and then in 1954 it was nominally transferred to the jurisdiction of the U.S. Department of Agriculture, and the mission of its research was changed from "one which encompassed studies on various exotic animal diseases to determine both their offensive and defensive potentialities as biological warfare agents to one which pertains only to the defensive aspects of [animal diseases]," according to writer Michael Carroll, who wrote a book on Plum Island. Despite the changes made to the official record, research at Plum Island changed little in reality; diseases with the potential to be used as offensive agents continued, unhindered, and a close relationship remained in place between Plum Island and the Department of Defense.

Lyme disease is a tick-vectored spirochetal disease, which was identified in 1975 when a mysterious illness broke out among residents in Old Lyme, Connecticut. It rarely appears by itself in humans, with sufferers often testing positive for infection by several tick-borne diseases concurrently. The Plum Island animal diseases laboratory is located a mere twelve miles from the first identified cases of Lyme disease.

Research at the Plum Island facility is known to have included diseases carried by arthropods; in fact, Carroll describes in his book the historical presence of a large "tick colony" on the premises. Carroll's history of the testing done at the facility indicates that outdoor, field testing of diseases was done on and near Plum Island, and also details numerous breaches in safety procedures throughout the history of the laboratory's operation. In 1978, for example, a cattle disease called Hoof and Mouth disease escaped from the Plum Island, infecting cattle in neighboring areas.

According to declassified army documents, Fort Derick scientists also experimented widely with Venezuelan Equine Encephalomyelitis Virus (VEEV). Several documents cite that Fort Detrick assigned some its top researchers to efforts to weaponized the virus, but say nothing about the number of former Nazi biochemists who worked closely with Fort Detrick and Edgewood Arsenal researchers, including the much overlooked German scientist, Dr. Gernot Bergold.

Gernot H. Bergold (1911-2003)
The U.S. Army's Project Paperclip [2] secretly brought Bergold to the United States after the war. In America, Dr. Bergold, who under Hitler's Third Reich headed the Nazi's Entomological Department and the Department of Insect Vectors of the Division of Virus Research, secretly worked on the VEE virus for the military at Fort Detrick, and then at a military-sponsored facility in Sault Ste. Marie, Michigan. Psychologist Dr. Karen Cronick, who now works in Venezuela, reports that in the 1970s, at about the same time Bergold was conducting his work with VEE, there was an outbreak of the virus in Michigan. This outbreak has been virtually blacked out by the media and state officials.

Dr. Cronick states, "The coincidence of these events has always troubled me. A tropical disease that was researched in Michigan suddenly appeared there in the general population. There is no way the insect vector that transmits the disease could get so far north by any normal migration. Could the Michigan outbreak have been a controlled experiment? It is the perfect place to carry one out: the Great Lakes and winter are natural limits to any unrestrained expansion of infected vectors."

As reported in an earlier Voltaire Network [3] by this author, Morgellons disease, which was experimented with by Fort Detrick in the 1960s and beyond, has recently been reported as a "disease of high-level concern" in certain areas of the country, including Vermont, and Florida, Texas and California. For reasons thus far unknown, Morgellons seems to be wide spread among Vermont's small population of 600,000.

Some doctors in Chittenden County, Vermont's most populated region estimate that about 300 people in the state have the disease.

According to a number of organizations dedicated to the study of Morgellons, there are about 15,000 people in the US suffering from the disease. Included in this number are many well-known names, singer Joni Mitchell, baseball player Billy Koch, and others.
Natasha Cebek, 44, who lives in Vermont with her 3 children, reported that she has had Morgellons disease for about 3 years. "I don't really know how I contracted the disease," she said in an interview this week. "I came to Vermont years ago to live in a clean, natural environment free from pollution and environmental assaults and never imagined anything like this would happen to me."

Cebek says she has been to several physicians nearly all of whom "gave me a Stepford wives-type smile. One even offered to send me to a psychotherapist. That made me quite angry; I had been healthy all my life; I had taken special care to eat properly and live a quality life and to teach my children to do the same. I didn't need psychological attention; I needed medical care; quality, expert care."

Cebek states, "There's no comfort in numbers. I've learned that well over a hundred people have sought treatment for this disease at the same facilities I've visited. That's a major outbreak in my view; that's a major public health problem, but health officials here don't speak about it publicly."
One form of Mogellons disease.
Kathleen Vanoudenallen, a registered nurse who is a close friend of Cebek's, and who has intensively studied Morgellons for years, and first diagnosed Cebek, stated this week, "I don't think there's much doubt that Morgellons looks like something that has been altered, something not natural that may have been created in a lab, something weaponized. Some former military researchers say they worked on just such a disease years ago. How it got out into the general population is anyone's guess. Nobody wants to go the record with information about the government's work with the disease."

Recounted Cebek, "When I learned that this disease could possibly be a result of covert biological warfare work performed by our government I was outraged. I wanted to scream, to smash the wall. How dare they do this to unsuspecting citizens? How dare they use people like this? What gives them the right? Who the hell do they think they are?"
Hank P. Albarelli Jr.
Investigative journalist and writer who lives in Florida and Vermont. Last book published : « A Terrible Mistake : The murder of Frank Olson and the CIA's secret Cold War Experiments ». Albarelli's forthcoming 2011 book from TrineDay is entitled: The Secret Order: An Exploration of the High Strangeness and Synchronicities of the JFK Assassination.

Zoe Martell
Lecturer in psychology at San Francisco State University; much of her work has focused on the experiences of people suffering from chronic illnesses. She is also an artist, and is currently working toward a dual master's degree at San Francisco Art Institute.

Unproportional representation


Factoid of the day. Just another coincidence, of course.

“Proportional Representation” is a big buzz-word in the UK these days. It implies fairer voting and fairer government. It is claimed to give minorities a better chance of being heard and therefore, they say, it should be incorporated into the “new politics” our shiny new coalition government has promised us.

But one minority group needs no help in that direction.

The 
Jewish Chronicle has published a list of Jewish MPs in Britain's parliament. It names 24 – Conservatives 12, Labour 10 and Liberal Democrats two.

I thought it was more. But let us for the sake of argument accept the
Jewish Chronicle’s figures.

The Jewish population in the UK is 280,000 or 0.46 per cent. There are 650 seats in the House of Commons so, as a proportion, Jewish entitlement is only three seats.

With 24 seats they are eight times over-represented. Which means, of course, that other groups must be under-represented, including Muslims.
All hell would break loose.The UK's Muslim population is 2.4 million or 3.93 per cent. Their proportional entitlement is 25 seats but they have only eight – a serious shortfall. If Muslims were over-represented to the same extent as the Jews (i.e. eight times) they’d have 200 seats.

Yes sir, in the name of fairness there’s plenty of work here for proportional representation. Bring it on!

Meanwhile two Jews – the Miliband brothers – are battling for the leadership of the beaten Labour Party. Ed Miliband (former energy secretary) is 40 and David Miliband (former foreign secretary) 44, both far too young to lead this country, especially when neither has achieved anything worthwhile in the real world outside politics.

It’s a reflection of the generally poor calibre of MP talent when such people, although academically gifted, can rise to the top. And indulging the young has had disastrous results. Think of Blair and the cult of arrogant youth he brought onto the political scene. Men of 40, especially politicians, think they know everything. They know nothing, as David Miliband (who backed the Iraq war) demonstrated in his blundering approach to the Middle East in Gordon Brown's government.

Jewish over-representation is only part of our problem. An even bigger worry is the huge number of non-Jew Zionists that have stealthily infiltrated every level of political and institutional life. They swell the pro-Israel lobby to such a phenomenal extent that it accounts for an enormous 80 per cent of the Conservative Party, which is now in power with the Liberal Democrats in tow as their junior coalition partner.
And still we are cursed with the cult of youth. Cameron, 43, had no significant achievement under his belt but was able to manoeuvre himself, with the help of Jewish backers, into Britain’s prime minister slot. He is also a self-declared Zionist and voted for the war in Iraq, so how can he be trusted?Too many pro-Israel MPs speak and act as if they would rather wave the Israeli flag than the Union Jack. These “Israel-firsters” refuse to condemn the illegal occupation, the racist policies and the war crimes. As Israel’s interest often clashes with Britain’s, their defence of the indefensible inevitably raises questions about loyalty, a deadly serious issue given the number of Zionists in public life.
William Hague, who has been a member of Conservative Friends of Israel since he was 15, is the new foreign secretary. Alistair Burt, an officer of the Parliamentary group of Conservative Friends of Israel, has been appointed Foreign Office minister for the Middle East, and David Lidington is now the Foreign Office minister for Europe. He has spoken of being a “staunch defender” of the State of Israel. So the stooges are safely installed and activated.

Nick Clegg, Cameron’s Liberal Democrat coalition partner, is also 43. He at least had a useful career before becoming an MP, as did his right-hand man Vince Cable, a person of more mature years and far greater stature than the two coalition leaders put together.

In their “programme for government” our new coalition has precious little to say about the stolen Holy Land except “We will push for peace in the Middle East, with a secure and universally recognized Israel living alongside a sovereign and viable Palestinian state”. Note it’s a secure Israel and only a viable Palestinian state, not the other way round or even equal status. And there’s no mention of action to end the Gaza blockade which Clegg 
called for in the Guardianlast December.

So, stooging for Israel has made the transition from Labour to the Conservative-led coalition with seamless smoothness. It is business as usual between Britain and the rogue state’s amoral thugs, as Sir Gerald Kaufman calls them.

Stuart Littlewood is author of the book Radio Free Palestine, which tells the plight of the Palestinians under occupation. For further information please visit www.radiofreepalestine.co.uk.

http://www.redress.cc/global/slittlewood20100521

Tedbits: The Policies of Insolvency, part III


Goldseek -- Friday, 21 May 2010 | | Source: GoldSeek.com

By: Ty Andros

Battle Stations

The greatest transfer of wealth from those who hold it in paper to those who don’t is underway; a Crack-up Boom looms.
It’s time to put on your battle gear and man your stations as the “when hope turns to fear” (see 2010 outlook in Tedbits archives) moment has arrived.  As the G7 financial systems lurch towards their demise, insanity is on plain display in the capitals of the developed world, with the purchasing power of all G7 currencies (Pounds, Swiss Francs, Euros and Dollars of all stripes) in free fall -- as measured in the only REAL currencies in the world:   GOLD and SILVER.  
“Gold is money, and nothing else”- JP Morgan, testifying under oath to the Pujo Commission 1913
Public servants and their central bank allies are in a struggle between truth and fiction.  The truth being that they are Insolvent; the fiction being that they are NOT.  Hardy har har. (Thank youwww.zerohedge.com for the wonderful quotes).  Euro zone public servants are decrying ratings agencies which can no longer present POLITICALLY correct and PRACTICALLY incorrect ratings.
“In some ways it’s a battle of the politicians against the markets.  That’s how I do see it.  But I’m determined to win this battle” --Angela Merkel
This reminds me of Chuck Prince of Citigroup who said as long as the music was playing he was still on the dance floor.  That was a bell ringing, so is Angela’s statement.  If there ever was a political epitaph, that is it.  The very idea that she can defy nature is ABSURD and dangerous to the future of her constituents; it is they who will PAY the PRICE for her INSANITY.  German Finance Minister, Wolfgang Schäuble, claims that markets are out of control.  Earth to Wolfgang:  They were never in your control! You may want to study the lessons of King Kanute.
She and the other political powers that be in the Euro zone ATTEMPT to DEFY Mother Nature, but unfortunately they will fail, as years of MORAL and FISCAL bankruptcy and the 40 years of sovereign ALCHEMY is exposed as the fraud that it is and has been.
The Pound, Euro, and oil in freefall, or the Dollar, gold and silver in moon shots as investors scurry into and out of those markets.
Look at the markets (stocks, bonds, currencies, energy, natural resources, etc) zooming all over the place to price in the new realities.  Expanding volatility is opportunity for the prepared investor.  It’s just BEGUN!  Absolute Return Alternative Investments which have the potential to thrive in up and down market conditions are essential to a diversified portfolio. You must also learn to fix your paper currencies to SHORT circuit the powerful debasement of the money supplies in the G7.  This is what I do… (click here to inquirewww.traderview.com/inquire.htm )
Years of borrowing to build the welfare-state constituencies has now resulted in an economic model and a public no longer produce more than they consume.  The European welfare states’ economies are now DEAD; nothing will revive them apart from structural changes which will never be considered short of the final disaster they have created.  The crony capitalists, illuminati banksters, public sector trade unions and public servants have KILLED the golden goose of the private sectors.  Look at the portion of these economies going to GOVERNMENT parasites:
When you look at the US, don’t be FOOLED.  With all the UNREPORTED spending and new taxes being implemented by the chosen one, we will arrive at EU levels NEXT YEAR.  For the first time in memory, this year the US federal government WILL NOT have a budget; it would be too embarrassing for incumbent public servants if the bad news and the FISCAL bankruptcy were DISCLOSED to the PUBLIC. 
The chosen one and his BIG government progressives are racing to implement the European social welfare state model into the United States, regardless of what they see unfolding across the pond, defying common sense and implementing their ideology which is GUARANTEED to fail a la Europe, Argentina, Venezuela and everywhere else it has been tried throughout history.
In today’s Financial Times, the former Prime Minister Spain, Jose Maria Aznar, outlined the changes which must take place for ECONOMIC growth to be possible in Spain, and his recipe must be implemented throughout the Euro zone and in the US for that matter.
Spain urgently needs:
·         Large-scale labor reform to transform collective bargaining, deregulate labor recruitment services, lower taxes on employment and encourage the unemployed into work
·         A new energy policy to avoid the shutdown of nuclear plants, deregulate markets and cut subsidies on inefficient renewable energy sources
·         A bank shake-up, including authorizing the investment of private capital in savings banks
·         Sweeping reforms to reduce the size of regional administrations and create a viable and efficient state
·         Changes to the state pension system to guarantee its mid-term and long-term sustainability
·         Deregulation to increase competition, including reforms to the welfare state and further privatizations of public companies
·         Tax reform to foster competitiveness. 
Thank you, Jose.  What do you think the odds are of these reforms taking place short of a financial crisis, also known as collapse?  If you said NONE you are correct.
“The government’s decision to raise taxes is a mistake that will worsen the crisis; in the past 160 years no leftist government has been able to rescue Spain from an economic crisis.  It does not look as if this age-old rule will be broken this time around either.  The current Socialist government is incapable of resolving Spain’s problems and taking the necessary steps.  Only a new government can do this.  The sooner, the better”  --Former Prime Minister of Spain, Jose Maria Aznar
Look no further than the French President Sarcozy to see the hubris of a man who thinks he is above the laws of nature.  Add to this the Presidents and Prime ministers of GermanySpainItaly and Portugal. Look no further than the ENRON, WORLDCOM, and REFCO solution being implemented by the European commission.  Off-balance-sheet vehicles have never been employed in anything other than DECEPTION. This is no different than any other SPV.
A SPECIAL PURPOSE vehicle held off the balance sheets of the countries which are creating it.  Can someone please tell me when a special purpose vehicle has ever been employed to do anything but mask debt and losses off the balance sheets of the parties to them?  The Euro zone is issued the shares “for nothing” and then authorizes the borrowing which they will then guarantee. 
Essentially putting nothing in, keeping the borrowing off the public record and Debt-to-GDP ratios, and getting idiot lenders to allow them to take money out, in order to buy debt securities that rational investors are refusing to buy in the open market.  It will never work, yet they will make the domestic banks take down the trash.  But German banks are CHOKING on sovereign and private debt from the pigs (Portugal, Italy, Ireland, Greece and Spain), take a look:
 
Now you know why the chairman of Deutsche Bank went to Greece several months ago, but the threat to its solvency is much greater than just Greece.  Just Yesterday Greece banned “NAKED” short selling (Bravo, as regular readers KNOW I DESPISE NAKED short selling, and NAKED credit default swaps). Regular short selling is a vital function for price discovery, and buying credit default swaps on bonds to protect the value of what you hold is as well. 
That chart is why they BANNED naked short selling in the 10 largest banks, as they are all insolvent after the coming defaults and restructuring of the debt they are holding.  Do you think they are solvent or insolvent?  KEEP in MIND, that this is a country whose economy is the BEST in Europe.  What do you think the balance sheets of the rest of the Euro zone BIG banks look like?  I will give you a hint… WORSE.
"The last duty of a central banker is to tell the truth."  --Former fed Governor Alan blinder
The $990 billion BAILOUT announced by the EU is a stunning about-face for Jean Claude Trichet, President of the European Central Bank, who said earlier in the week:  Under no circumstance would the bank buy bonds and engage in quantitative easing. 
The following weekend he announced they were commencing to do so and bought $20 Billion worth in the first salvo.  Yesterday’s Spanish debt auction of 1-year and 18-month notes had to be reduced and almost FAILED; a 10-year auction is being held today: HOLD YOUR BREATH.  A bomb may go off today. The Italian central bank is proposing SUSPENDING mark to market for SOVEREIGN debt, just as the US did a year ago with private debt and the suspension of FASBY 157.  The lending windows are CLOSING rapidly; the con game of social welfare states is quickly being EXPOSED as to what they are.
Let’s look at the bankrupt countries attempting to guarantee the borrowing of bankrupt countries, from a recent www.wsj.com :
 
Then the IMF steps in for another 220 BILLION euro loan from the same group of countries who are ALSO members of the IMF.  Reported NOWHERE is the fact that the AMERICAN public is guaranteeing 18% of this BAILOUT total, on top of all the other bailouts they have FUNDED.
Take a look at this picture as they exit the scene of their latest FINANCIAL crime and future fraud on investors, who they call SPECULATORS, to FOOL the general population whose ignorance is being PREYED upon:
 
Please understand this meeting contained the seeds of the end of their careers and the finances of their respective countries.  Shades of Benedict Arnold.  I love this picture; it’s a Freudian slip of the first order, the truth of what they just did to their constituents is PLAIN on their faces. If only they were wearing PINSTRIPES…  HA HA.
The truth of the matter is the groups who are refusing to finance their welfare states are INVESTORS and LENDERS who are doing the RATIONAL thing by SELLING their holdings BEFORE the next GREEK episode appears from who knows where.  Investors and lenders SELLING to protect the value of their holdings are not speculators.  UNFORTUNATELY for them, they now just hold the IOU’S of the respective countries, also known as currency.  Those bonds are no safer than those they have already issued.
The truth of the effectiveness of these plans can be seen in Dollar, Euro and British Pound Libor as banks begin to price in the insolvency of their short-term counterparties.  The developed world financial systems have approximately $17 trillion of outstanding debt, against assets which are worth a fraction of that number.
Spreads on investment-grade corporate and junk bonds are also widening and the ability to issue new debt is drying up.  Take a look at the widening in junk bond spreads and the COLLAPSE in issuance:
 
Over $900 billion was raised in the corporate bond markets over the last year and sold to investors who now have jumped from the frying pan into the fire.  The bond issuance party is over, and the lending windows are closing RAPIDLY.  When the public is stampeding into something, it will be weak hands buying from strong ones.  Thinking bonds are safe compared to stocks, these lemmings are about to learn that bonds have downsides too.
Just as the central banks wanted investors to do when they cut interest rates to zero, they have gone out of the risk curve as they reached for yield and perceived safety.  Now they are stuck holding the debt of companies and countries whose growth prospects are severely diminished, as we head into the next leg down in economic activity.  While profits have recovered mostly on the back of the financial industry, main street profits have risen on cost cutting, not from REVENUE growth.
Investors seeking yield and safety will probably get NEITHER.  Bonds are the EPICENTER of the unfolding CRISIS.  Extend and pretend will not work a second time as the POLICIES which foster ECONOMIC GROWTH are inconveniently NOT in the PLANS.  Economic growth of 0% and debt growth of 6 to 12% (compounded annually) is a recipe for not being repaid. 
The numbers DO NOT add up and calculators are BANNED in government land and the MAIN stream media, as are accurate economic stats which would UNMASK the true extent of the financial calamity and government malfeasance.  REMEMBER:  Paper is POISON during currency EXTINCTION events.  The Euro is not the only currency which will FALL…..
"The more corrupt the state, the more it legislates." – Tacitus (ca. 110)
 The people RUNNING the US on CAPITOL HILL are completely corrupt; they DON’T READ THE BILLS they are passing, how can this be?  It is treasonous behavior.  Financial reform in the United States is a DONE deal.  We are witnessing a corrosive political TAKEOVER of the financial industry, just as healthcare reform (also a tax bill in disguise) was and is.  The business models of the financial industry are being warped and distorted by Capitol Hill TERRORISTS.  Putting themselves in charge of the reins, picking winners and losers based on POLITICAL considerations rather than PRACTICAL ones.  1,500 pages of political corruption are enshrined into law; just like healthcare before it, another criminal enterprise is born.  It is obscene.
Are naked credit default swaps being addressed?  NO.  How about Freddie and Fannie?  NO.  How about the breakup of TOO-BIG-TO-FAIL financial institutions into sizes which DO NOT THREATEN the whole economy?  NO.  The anti-trust regulators broke up AT&T, why not JP Morgan Chase?  Are there provisions and regulations (crony capitalist provisions) which stifle young competitors to the big financial organizations? YES.  These public servants are working for somebody but it certainly is not YOU or the general PUBLIC.
 As this letter has said many times over the last several years, Fannie and Freddie will generate close to a trillion dollars of losses before this is over; now the crew that engineered it is about to assume NEW RESPONSIBILITIES over lending decisions.  Be afraid; be very, very afraid.
All this is not a confidence builder when it comes to the future.  They are REMOVING the ability to price risk and you can expect lending to take another fall as this becomes clear.  If you can’t price for the risk that the borrower represents, then the lender can’t charge for the risk and can’t make the loan, it’s that simple.  Over a trillion dollars of credit will DISAPPEAR over the next several years. 
If you are politically connected you will be safe (also known as campaign contributors), if not, it’s heave ho and away you go.  Politically-correct lending decisions are practically incorrect; just ask Freddie and Fannie as billions of lending go BAD.  Part II straight ahead.
The number one issue for voters is the economy and jobs.  These vipers put their interests in gathering power over doing what’s required to revive the economy and income growth.  BETRAYAL of their sworn duties and constituents.
No doubt at least four PROGRESSIVE republican senators will cross the aisle to screw the American people once more before being thrown out in November.  As Rahm says:  Never let a good crisis go to waste, and the public serpents aren’t.
The idea that the US government is implementing what is failing in Europe is beyond belief and a betrayal of the American people and holders of the world reserve currency… it’s also known as treason.
In closing we will begin with a quote from Mohamed El-Erian of Pimco:
Even with this critical uncertainty, we should not under-estimate the historical relevance of what is happening this weekend; and the stakes for Europe and the global economy are huge.
If this rescue attempt does not work, there will be a material acceleration in the process of change to Europe’s economic, financial, and institutional landscape; and the reality of the debt explosion in industrial economies will become even more of a destabilizing factor for the world economy.  --Mohamed El-Erian is CEO and co-CIO of PIMCO
On top of this I will point out the fact that NOT ONE PENNY EVER BEEN REPAID by any Euro zone sovereign or the United States since 1971.  All their borrowing has been rolled over when due and new DEFICIT spending has been borrowed as well.  This is about to come to a SMASHING halt over the next several years.  The United States is running MONTHLY deficits the size of what used to be yearly deficits.
As I said in the last issue, black swans have taken flight.  Look for increasing blowouts in interest rate spreads signaling a crash watch in many, many markets.  As I pointed out in the Something-for-Nothingessay, the something-for-nothing societies borrow until they can borrow no more, and print money until it is no longer accepted.  This is in full motion.
The tops are in for the stock markets, and as Europe sinks into the next leg down of the unfolding depression look for other economies to follow shortly.  On another note, GOLD and Silver are NOT bubbles and I will cover this in the next letter.  I am also including a commentary from Stewart Dougherty, “The Dollar Rally is Hugely Bullish for Precious Metals”  (www.traderview.com/tedbits/DoughertyBlogPost-May07-10.pdf ).  Mis-titled in my estimation, it should be entitled: WHEN BIG MONEY PANICS.   It is a great piece, so don’t miss reading it to see the future.
Its all Austrian Economics as regular readers know.  You better be learning how to do applied Austrian Economics in your investments… or perish with the Keynesians.
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Tedbits may include information obtained from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made to ensure its accuracy or completeness. Opinions expressed are subject to change without notice. This report is not a request to engage in any transaction involving the purchase or sale of futures contracts or options on futures. There is a substantial risk of loss associated with trading futures, foreign exchange, and options on futures. This letter is not intended as investment advice, and its use in any respect is entirely the responsibility of the user. Past performance is never a guarantee of future results

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Protect Your ASSets: Buy Gold or Silver NOW - If you wait you will be late.
(He who panics first, just may salvage something.