Nov 27, 2010

Yeah, Wikileaks Is a Fake False-Front, a Brass Plate if You Will

"According to the London-based daily al-Hayat, the WikiLeaks release includes documents that show Turkey has helped al-Qaeda in Iraq..." 

This further proves that Wikileaks is a "front" for the nudge-nudge-wink-wink crowd. Today Turkey threatens to stand with Palestine, and suddenly we get disinformation from Wikileaks trying to insinuate Turkey was helping The Toilet in Iraq. - Remember, this bogeyman of the mid-east, so hated and feared by all, is named after going to the toilet in Arabic - "
Ana raicha al Qaedais colloquial slang for "I'm going to the toilet".

Out of all of the whistleblowers sites that have been around for 15 years, corporate controlled media, which lead us into these wars as the government's cheerleaders, picks Julian Assange as their media darling, Whistleblower Czar. This is the same guy that is supposedly hunted by the CIA for termination but shows up on TV everywhere, who pushes "secret" documents saying Osama bin Laden is still alive, asked the Obama administration first if they wanted to see the documents before publishing, has shady connections to the CIA's favorite lefty funder George Soros, says he is "annoyed" by 9/11 truth and that there is NO conspiracy behind 9/11. That there IN ITSELF makes him, to any sensible person, a placeman of the security services. 

WikiLeaks is lame. Please, everyone, go to the site and read everything there. I have seen more confidential information on a weather report... When you read Mr. Assange’s output, you are looking at one of the CIA/Mossad games, nothing more... The game today is using Wikileaks, given its 15 minutes of fame for trashing the US in Iraq with the helicopter video, to spread imaginary stories about Pakistan, the only nuclear power in the Middle East capable of standing up to Israel, and the enemy of India. Perhaps even more important, Pakistan is a staunch ally of China — a most dangerous liaison where USrael is concerned.

As the story goes...

WikiLeaks release to show NATO ally Turkey helped Al Qaeda in Iraq

 WikiLeaks release to show NATO ally Turkey helped Al Qaeda in IraqRawstory | US diplomatic cables set for imminent release by WikiLeaks will reportedly show that NATO ally Turkey aided Al Qaeda in Iraq, while the US supported the PKK, a Kurdish separatist group fighting Turkey.
The claim was made in the London-based Arabic newspaper Al-Hayat, reports Reuters:
The next release is expected to include thousands of diplomatic cables reporting corruption allegations against politicians in Russia, Afghanistan and other Central Asian nations, sources familiar with the State Department cables held by WikiLeaks told Reuters on Wednesday.
The allegations are major enough to cause serious embarrassment for foreign governments, the sources said.
According to the London-based daily al-Hayat, the WikiLeaks release includes documents that show Turkey has helped al-Qaeda in Iraq - and that the United States has supported the PKK, a Kurdish rebel organization that has been waging a separatist war against Turkey since 1984, the Washington Post reported.

Related RedactedNews

"Whistleblower?" Czar Julian Assange: 9/11 was NOT a Conspiracy 
Wiki "Leaks" - The final word?

Five Reasons to Care Haiti's Sham Elections


CounterPunch, November 26, 2010

Haiti needs legitimate leaders right now.  Unfortunately, the elections set for  November 28, 2010 are a sham.  Here are five reasons why the world community  should care.

First, Haitian elections are supposed to choose their new President, the entire  House of Deputies and one-third of the country’s Senate.  But election  authorities have illegally excluded all the candidates from the country’s most  popular political party, Fanmi Lavalas – and other progressive candidates.   Lavalas, the party of former Haitian President Jean-Bertrand Aristide, has won  many elections in Haiti – probably the reason it was excluded.  If this were the  US, this would be like holding elections just between the Tea Party and the GOP  – and excluding all others.   Few Haitians will respect the outcome of these  elections.

Second, over 1.3 million Haitian survivors are struggling to raise their  families in 1,300 tent refugee camps scattered around Port au Prince.  The  broken Haitian political system and the broken international NGO system have  failed to provide Haitians with clean water, education, jobs, housing, and  access to healthcare almost a year after the earthquake.  Now cholera, a  preventable and treatable disease, has taken the lives of over 1,600 people.   Some are predicting that the infection could infect as many as 200,000 Haitians  and claim 10,000 lives.  Without legitimate leaders Haiti cannot hope to build a  society which will address these tragedies.

Third, because the elections are not expected to produce real leaders, Haiti is  experiencing serious protests on a daily basis.  Protests have occurred in Port  au Prince and Cap Haitien, where two people died in clashes with the  authorities.  In other protests, like a recent one in Port au Prince,  demonstrators representing 14 Haitian grassroots groups try to stage peaceful  protests.  But when UN peace keeping forces arrived they drew their weapons on  demonstrators.  As the crowd fled for safety, the UN and Haitian police threw  teargas canisters into the crowd and the nearby displacement camp, Champ de  Mars.   Residents were taken to the hospital with injuries from the teargas  canisters.  The media has wrongfully typecast the political demonstrations as  "civil unrest" filled with angry, drunk rioters.  No one mentions that much of  the violence has been instigated by the law enforcement, not the demonstrators.    Faux elections are not going to help deliver stability.

 Fourth, political accountability has never been more important in Haiti than  right now.  The Haitian government must guide Haiti’s reconstruction and make  important decisions that will shape Haitian society for decades.  Yet, many of  the three million Haitians affected by the earthquake are ambivalent about the  elections or do not want them to take place at all. 

 Fifth, the United States has pushed and paid for these swift elections hoping to  secure a stable government to preserve its investment in earthquake  reconstruction.  But, as Dan Beeton wrote in the LA Times, "If the Obama  administration wants to stand on the side of democracy and human rights in  Haiti, as it did in Burma, it should support the call to postpone the elections  until all parties are allowed to run and all eligible voters are guaranteed a  vote."   By supporting elections that exclude legitimate political parties that  are critical of the current government the international community is only  assuring the very social and political unrest it hopes to avoid.

Haitians are saying that no matter which candidates win on November 28, the  political system that has failed them will not change unless there is an  election that is fair and inclusive.  They are also asking that the country  undergo a reconciliation process that includes the voices of more than just the  Haitian elite and international community.
Haiti desperately needs legitimate leaders.  The November 28 sham election will  not provide them.

Bill Quigley is Legal Director of the Center for Constitutional Rights and law professor at Loyola University New Orleans. Contact Bill
Nicole Phillips is staff attorney at the Institute for Justice and Democracy in Haiti. Contact Nicole at


Haitian Rebellion Grows Against Occupiers

Fraud fears ahead of Haiti election

Euro Debt Crisis Bankruptcy Bailout Queue, Protect Savings & Deposits From Banks Going Bankrupt!

Just in from Market Oracle

The global banking system that publicly went bankrupt during September 2008 prompting government interventions in the form of capital injections, buying of toxic assets, insurance of bad debts and even outright nationalisation’s has started to bankrupt the states that bailed them out, starting with the smaller states with Iceland setting the ball rolling, and this year the bailiffs came knocking on the doors of the Eurozone club members, with first Greece, and now Ireland requiring a Euro-zone bailout (German) to prevent debt default bankruptcy, where if one falls then soon would all of the dominos tumble.

The Euro 200 billion bailout out of Greece and Ireland is in the form of a series of loans set at a 5% interest rate, against which one can measure the relative credit risks in the market as theoretically 5% should be seen as a cap with the view that market rates should be below the 5% bailout rate. However the bond markets are NOT responding positively to Ireland’s bailout as they had done during May’s Greece bailout, which is evidenced by the yields on 10 year euro-zone sovereign bonds rising across the board:

Greece’s 10 year yield continues to trade at a high 12% despite the Euro 110 billion bailout at 5%, because Greek bond holders continue to discount a highly probable eventual debt default / restructuring as a deflating economy has sent public debt to GDP soaring to 135%.

Ireland’s yield has surged higher to stand at 9.2%, following Monday’s bailout low of 8%, again suggesting debt restructuring given depression inducing public debt at 95% of GDP.

Portugal’s yield has crept higher to a new credit crisis high of 7.1% from Mondays low of 6.7%, confirming that a bailout of Portugal at an estimated Euro 40-80 billion is imminent for an uncompetitive economy carrying a rising debt to GDP ratio at 83%.

Spain’s yield has now crossed above the 5% bailout rate to 5.2%, which suggests that the market is pricing in a bailout for Spain, which is not surprising given the exposure of Spanish banks to Portuguese debts, official debt is put at 64% of GDP but this does not fully take into accounts Spanish banks bad debts that as with Ireland could easily send Spain’s debt to GDP to well over 100%.

Italy’s yield has trended higher to 4.42% putting Italy firmly in the queue for a debt crisis blowout given that public debt is already at 120% of GDP.

Belgium’s yield rose to 3.7%, which illustrates an elevated risk as a consequence of the failure of the political parties to form a new government and public debt is already at 100% of GDP.

UK – Whilst not part of the eurozone has seen its 10 year yields continue to trend higher to 3.3%, marginally below the recent high of 3.4%. The lower UK yield despite Britains huge debt mountain illustrates the flexibility afforded by being OUTSIDE the euro-zone as it allows Britain to continue to stealth default on its debts by means of printing money induced high inflation that the Eurozone countries cannot do individually I.e. the UK government prints money that it loans to the bankrupt banks at 0.5% to buy UK government bonds at 3.3%, hence why the yields are lower than the likes of Spain and Italy, which acts as a safety valve preventing outright bankruptcy but the price paid is in high inflation, with the doctored official inflation measure of CPI is at 3.2%, the more recognised RPI at 4.5% and real inflation at 6% as the following graph illustrates.

The CPI inflation trend is inline with forecast expectations as of December 2009 (27th December 2009 (UK CPI Inflation Forecast 2010, Imminent and Sustained Spike Above 3%)

France’s yield at 3.14 illustrates that France still retains some room for manoeuvre despite being in the Euro-zone.

Germany, the primary funder of the Euro-zone bailouts and also the benchmark for where the Euro-zone debt collectively used to trade, saw its 10 year bund yields rise a little to 2.7%.

The Debt Interest Spiral

Virtually all countries continue to run huge budget deficits well above the 3% limit / targets that ensure the total debts will continue to grow which means if the economies fail to grow GDP faster then they accumulate debt, then Debt as a percentage of GDP will grow even faster thus triggering an out of control debt interest spiral as warned off in December 2009 (03 Dec 2009 – Britain’s Inflationary Debt Spiral as Bank of England Keeps Expanding Quantitative Easing ).

The problem for the bankrupting PIIGS remains is that they cannot inflate their way out of debt, therefore economic austerity resulting in contracting economies means an ever higher debt burden which means that ALL of the bailed out countries will require further bailouts down the road as their debt mountains continue to grow. Thus ultimately the bailouts are just delaying the inevitable debt defaults / restructuring.

Again I have to reiterate – DEBT DEFAULT IS INEVITABLE, with Greece and Ireland now at the top of the Debt Default List. With the first in the queue to experience default being bond investors that have loaned monies to the bankrupt banks. Clearly the Euro-zone is attempting to delay inevitable debt default until the Euro-zone financial system has repaired itself enough to withstand a Greece and Ireland default.

The Euro-Zone Bankruptcy Queue

My original analysis of the countries at the highest risk of going bankrupt of March and April 2010 (13 Apr 2010 – Britain’s Accelerating Trend Towards High Inflation and UK Debt Default Bankruptcy ) warned that a far bigger problem was brewing in Ireland that would blow up over the coming months during which period the mainstream press has been focused on Greece. If it were not for the E.U. bailout than Ireland and Greece would have gone the way of Iceland i.e. bankrupt.

However as the graph illustrates the risk of bankruptcy does not stop with Ireland and Greece, as whilst the mainstream press has finally woken up to Portugal being next, however they still are asleep to the third country on my list of countries most likely to go bankrupt, requiring a bailout namely Belgium, which in fact at the time I rated as being a head of Portugal.

The current state of the trends towards bankruptcy taking the earlier bond yields analysis into account suggests that the situation for Portugal, Spain and Italy has deteriorated since my original analysis of March 2010, and improved for the UK and to a lesser extent for Belgium, therefore I would now rank the bankruptcy order as :

Greece – Bust requiring bailed Euro 110 bailout

Ireland - Bust requiring Euro 85 billion Bailed out

Portugal - Pending an imminent bailout of approx Euro 40-80 billion

Belgium - Pending bailout of approx Euro 50 billion.

Spain - Pending bailout of approx Euro 400 to 500 billion.

Italy - Pending bailout approx Euro 1 trillion+.

According to May’s bailout of Greece, the total funds made available to bailout the Euro-zone members was put at Euro 750 billion. Therefore after Portugal, there would just not be enough to bailout Spain that could reach as high as Euro 500 billion, which is why the Chancellor Angela Merkel made the statement on Nov 25th, warning bond investors that they should prepare themselves for a haircut as debt is restructured (partial default).

“Do politicians have the courage to place the risk burden on those who make money? Or is trading in sovereign debt the only business in the world in which there is no need to take risk?” and “This is about the primacy of politics, this is about the limits of the markets.”

Off course the Eurozone could do what the U.S., Japan and UK are doing which is to say to hell with it, we are just going to keep printing money and monetizing government debt forever! Though the German memories of the 1920′s hyperinflation and subsequent collapse of the German state into a long depression that gave rise to the Third Reich is strong enough to suggest that after Portugal, a bailout of Spain and others will be accompanied by increasingly heavy losses for bond investors and highly likely bank depositors which would therefore impact everyone regardless of where they reside.

BREAKING NEWS INSERT - The most recent breaking news coming out of Germany is for a doubling of the Euro 750 billion bailout fund to Euro 1.5 trillion, which is clearly to address the increasing speculation around the fact that the balance of the existing fund would not be enough to bailout Spain, which as earlier analysis shows has tipped into the bailout zone during recent days.

UK Savers Need to Plan Ahead For a Banks Going Bankrupt

My focus from this point forward will be on the risks of UK’s bankrupt banks bankrupting Britain, whilst the risk is relatively low at about 17%, however there is the contagion factor where a cascade of bankrupting Eurozone countries that UK banks are exposed to such as Spain, Italy or even France would bring Britain down with them. Especially as Britain would NOT survive a collapse of the Euro-zone which many UK Euro-skeptic politicians gleefully look forward to without contemplating the consequence in terms of the accompanying collapse of economic activity that would make the Great Recession of 2008-2009 look like a picnic.

However the UK going bankrupt would not mean that the government would default on its debts, instead it would seek to inflate them away at a far faster pace than it already is with real inflation reaching in the region of 20% per annum, which given recent trends in inflation implies a CPI of about 10% as the earlier inflation graph illustrates. However a bankrupting state would mean savers would not only lose the value of their savings as inflation erodes it by as much as 20% per annum. But that the government would seek to restructure bank debt which means bond holders would take a hit and in a worse case scenario the government would be forced into nationalisation and restructuring the whole banking sector which means that savers could lose deposits upto the FSA limit of £50,000 per banking group.

Whilst the worst case scenario at this point in time is not on the horizon, however that does not mean that savers would be fully protected if a country such as Spain goes bust where a bailout would require it’s banks be restructured including loss of depositor cash upto a certain limit as occurred following Iceland’s bankruptcy. In such an eventuality given the size of UK depositor funds with the likes of Spain’s Santandar, the government may be forced to only cover UK depositors upto the FSA limits.

Santandar and other foreign banks have been allowed to run amok amidst Britain’s retail banking sector as a consequence of an incompetent regulator and a desperate government eager for anyone to take on the responsibility of restructuring a string of bankrupt banks which allowed Santandar to gobble up a string of UK small to medium sized banks which now poses a real risk to UK depositors.

The only way people can protect themselves against a risk of bankruptcy triggering the FSA limit protections is by ensuring that deposits per banking GROUP are under the FSCA compensation limits which are currently £50,000, and from 1st of January 2011 will rise to Euro 100,000 or about £83,000.

However savers with amounts deposited above the guaranteed limits need to ensure that they have measures in place well ahead of a banking crisis to ensure that they survive one both in terms of the ability to transact business as well as ensuring total funds exposed are LESS than the banking limits at the time of a bank run.

Scare Mongering ?

Am I scare mongering? Try asking those that were locked out of their savings accounts when the Icelandic banks went bust during October 2008. The banks froze UK customers out of their accounts on the 7th of October 2008. My analysis of 2nd October 2008 had warned that small countries such as Iceland were at risk of going bankrupt, with Iceland’s bankruptcy preceded by some 24 hours earlier by Iceland Going Bankrupt?, – “savers should at the first opportunity seek to repatriate their savings to a 100% UK bank as the consequences of a country going bankrupt could render guarantees meaningless”.

Still think I am scare mongering ?

Did you know that funds deposited by some 2 million UK depositors with the Post Office are not guaranteed by the UK FSCS ? Which are in fact guaranteed by the Irish government. This illustrates why savers need to be aware of the risks and make appropriate contingency plans for when the SHTF. Now for some good news for Post Office savers, the Bank of Ireland (operates Post Office accounts) is in the process of transferring its Post Office depositor base to fully fall under the UK regulator and compensation scheme as per a statement of 1st November 2010, with more clarification pending.

However UK savers HAVE been blindly thinking for the past 2 years that their savings were safe in the British Post Office, when all along they were no more secure than in any other Irish bank so could have just as easily woken up to a shock Iceland style.

UK Savers Emergency Plan:

a. Ensure that you have at least 2 current accounts across banking groups.

b. That you have procedures in place to ensure that you can act fast to initiate transfer of funds from instant access savings accounts, especially if your total funds with a particular banking group exceeds £50k / £83k (1st Jan 2011).The best strategy is to limit exposure per banking group to the limit.

c. Do not have ANY savings are fixed deposit exposure to banks that do not fall under the UK Financials Services Compensation Scheme.

d. Limit exposure to PIIGS banks, that is Greece, Ireland, Spain, Portugal and Italy as these are at the most risk of going bust thus triggering a lengthy process of Savers having to wait for compensation.

The following list represents Britians’ largest deposit taking banking groups and the banks that fall under each.

Note whilst banking groups may have multiple licences as a consequence of mergers and takeovers, however they also may be in the process of merging licences so for ultimate safety one should remain focused on banking groups.


  • Lloyds TSB Bank
  • AA Savings
  • Bank of Scotland / HBOS
  • Birmingham Midshires
  • Capital Bank
  • Cheltenham & Gloucester Savings
  • Halifax
  • Intelligent Finance
  • Saga


  • Santandar bank
  • Abbey National
  • Asda Savings
  • Alliance and Leicester
  • Bradford and Bingley
  • Cahoot
  • Moneyback
  • Honycomb

Nationwide Building Society

  • Nationwide Building Society
  • Cheshire Building Society
  • Derbyshire Building Society
  • Dunfermline Building Society


  • Barclays Bank
  • Standardlife Bank


  • HSBC Bank
  • First Direct
  • Marks and Spencer Financial


  • Allied Irish Bank
  • First Trust


  • Citibank
  • Egg


  • Co-operative Bank
  • Britannia
  • Smile
  • Unity Trust Bank

RBS Group

  • Royal Bank of Scotland
  • Nat West Bank
  • Direct Line Savings
  • Lombard
  • The One Account
  • Drummonds
  • Ulster Bank

Additional comments

  • Foreign Banks under UK FSCS Scheme – ICICI (India), First Save (Nigeria)
  • Small business are covered by the FSCS on the basis of 2 of following 3 conditions – upto a turnover of 6.5 million, less than 50 employees, balance sheet total not more than £3.26 million

Banks not under the UK FSCS.

  • Post Office – Currently Guaranteed by the Irish Government, pending coming under the UK FSCS.

  • ING Direct, Tridos – Dutch

  • Anglo Irish, Bank of Ireland – Ireland

Don’t delay! Act today to form a quick personal savings protection contingency plan, otherwise you may wake up one day to find yourselves locked out of your funds Iceland style!

For more on how to protect your wealth from debt default bankruptcy see the Inflation Mega-trend Ebook (FREE DOWNLOAD)

Comments and Source:

By Nadeem Walayat

Copyright © 2005-10 (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem’s forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction.


EU rescue costs start to threaten Germany itself

From The Telegraph26 Nov 2010

The escalating debt crisis on the eurozone periphery is starting to contaminate the creditworthiness of Germany and the core states of monetary union.

Credit default swaps (CDS) measuring risk on German, French and Dutch bonds have surged over recent days, rising significantly above the levels of non-EMU states in Scandinavia.

"Germany cannot keep paying for bail-outs without going bankrupt itself," said Professor Wilhelm Hankel, of Frankfurt University. "This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings."
The refrain was picked up this week by German finance minister Wolfgang Schäuble. "We're not swimming in money, we're drowning in debts," he told the Bundestag.

While Germany's public and private debt is not extreme, it is very high for a country on the cusp of an acute ageing crisis. Adjusted for demographics, Germany is already one of the most indebted nations in the world.
Reports that EU officials are hatching plans to double the size of EU's €440bn (£373bn) rescue mechanism have inevitably caused outrage in Germany. Brussels has denied the claims, but the story has refused to die precisely because markets know the European Financial Stability Facility (EFSF) cannot cope with the all too possible event of a triple bail-out for Ireland, Portugal and Spain.
EU leaders hoped this moment would never come when they launched their "shock and awe" fund last May. The pledge alone was supposed to be enough. But EU proposals in late October for creditor "haircuts" have set off capital flight, or a "buyers' strike" in the words of Klaus Regling, head of the EFSF.
Those at the coal-face of the bond markets are certain Portugal will need a rescue. Spain is in danger as yields on 10-year bonds punch to a post-EMU record of 5.2pc.
Axel Weber, Bundesbank chief, seemed to concede this week that Portugal and Spain would need bail-outs when he said that EMU governments may have to put up more money to bolster the fund. "€750bn should be enough. If not, we could increase it. The governments will do what is necessary," he said.
Whether governments will, in fact, write a fresh cheque is open to question. Chancellor Angela Merkel would risk popular fury if she had to raise fresh funds for eurozone debtors at a time of welfare cuts in Germany. She faces a string of regional elections where her Christian Democrats are struggling.
Mr Weber rowed back on Thursday saying that a "worst-case scenario" of triple bail-outs would require a €140bn top-up for the fund. This assurance is unlikely to soothe investors already wondering how Italy could avoid contagion in such circumstances.
"Italy is in a lot of pain," said Stefano di Domizio, from Lombard Street Research. "Bond yields have been going up 10 basis points a day and spreads are now the highest since the launch of EMU. We're talking about €2 trillion of debt so Rome has to tap the market often, and that is the problem."
The great question is at what point Germany concludes that it cannot bear the mounting burden any longer. "I am worried that Germany's authorities are slowly losing sight of the European common good," said Jean-Claude Juncker, chair of Eurogroup finance ministers.
Europe's fate may be decided soon by the German constitutional court as it rules on a clutch of cases challenging the legality of the Greek bail-out, the EFSF machinery, and ECB bond purchases.
"There has been a clear violation of the law and no judge can ignore that," said Prof Hankel, a co-author of one of the complaints. "I am convinced the court will forbid future payments."
If he is right – we may learn in February – the EU debt crisis will take a dramatic new turn.

Can the EU survive? - Nick Rowe

Sarkozy & Merkel Promise To Bailout The Entire European Continent Until The End Of Time & Fiat Currency

Max Keiser has made the eerily compelling argument that Germany will soon leave the Eurozone and will then become a world superpower rivalling China

Putin: Russia will join the euro one day 
Vladimir Putin said it is "quite possible" that Russia will one day join the eurozone and create a currency that would eclipse the US dollar as the global reserve standard.