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Jun 24, 2011

Jim Willie: Armada of Black Swans Hitting U.S. Economy and Financial Markets, Gold Breakouts on QE TO INFINITY

From Market OracleJun 23, 2011
Mohammed El-Erian is given credit for the phrase 'The New Normal' to mean an altered state of perceived instability within the normalcy realm, as in crisis being called normal, like endless crisis. As buddy Jim Mess in Europe says, just like trying to redefine what debt default is, it sounds like high octane prevarication. El-Erian is considered one of the good guys. He managed to slip away from Harvard University without much smear, where he served on the management team of the giant multi-$billion endowment fund. If truth be told, Harvard hatched the Enron monster from its Business School as a project, funded by Citigroup, where JPMorgan created all the off-shore companies to hide their dealings. Building #7 in Lower Manhattan contained the records until it fell from structural sympathy. Harvard successfully made money all the way on the Enron runup, but also successfully shorted Enron all the way down. So El-Erian is hardly squeaky clean. He does give a good interview though, does not deal much in varnished truths, and is an avid NYMets baseball fan. At PIMCO, he worked on the team to direct the biggest bond fund in the world to turn its back on the entire USTreasury Bond complex. In fact, their Total Return Fund, its flagship bond fund, is net short on USTreasurys as a group. That means they own a raft of Credit Default Swaps for USGovt debt default and an assortment of other vehicles like the TNX and TYX that track the 10-year and 30-year bond yield. They recognize an asset bubble when they see one, and even invest in Gold.



The other person relevant to the article title is Nassim Taleb, who coined the term Black Swan. Generally it refers to the extreme oddity that passes through view, shows up on the radar, the extreme warning signal being dire, but is largely ignored by the masses, regarded as the exception or outlier event. THE BLACK SWAN HAS BECOME THE NATIONAL BIRD!! When a few black swans appear, the alert analysts pay heed and express their warnings. When an armada of black swans appear, the message is clear. A systemic failure is in progress, and the important foundations are crumbling. In 2009 and 2010, it was clear that numerous black swans were sighted and identified. In 2011, something highly unusual and extraordinary has occurred. The black swans can be organized into groups. They are numerous within each important economic and financial camp. The Armada of Black Swans, well organized into regiments, has become dominant enough to be considered the New Normal. During the global financial crisis (which has earned a widely used GFC acronym), tragically the state of crisis has become an engrained latticework on the reality mosaic. A quick review at a high level should cause alarm, except for the gradual pathogenesis that dictates the pace of systemic failure in progress. If the list below were presented as a Wall Street Journal forecast in 2006, the author would have been subjected to laughter, derision, and mockery. Yet here and now, the organized groups of black swans are visible everywhere one looks. Worse, they are carrying nuclear slingshots, and defecate highly toxic green blobs into the liquidity streams that we have grown so dependent upon.
QE TO INFINITY
Quantitative Easing will continue for obvious reasons. Many were outlined in the last two articles. The QE2 will continue seamlessly, extending beyond the June 30th deadline. It will change in complexion slightly to become QE3, with some added twists like to include some municipal bonds. Later the entire financial initiatives will morph into a Global QE, since all major central banks will face the same plight. They will all purchase USTreasury Bonds or face extinction, in order to support their own balance sheets. The credibility of the US Federal Reserve has undergone major damage. In the next year, it will be totally destroyed. The factor ignored by many analysts is that the USFed balance sheet has expanded recklessly, and insolvency is its unavoidable condition. If the US housing market does not revive, then the US banks will go deeper into insolvency, carrying perhaps two million homes on their books at some point in the future. The resulting effect on the USFed balance sheet is permanent ruin.
The USTreasury Bond default might possibly come, as warned by a great reliable inside source in 2008, from the USFed resignation as central bank for the USGovt. They are not subject to bank regulations, to reserves ratios, to collateral requirements on loans, or to anything for that matter. They managed the secret handouts of $12 trillion under the cover of TARP Fund dispensation. They rescued foreign banks even though that is not under their charter. They orchestrate the narcotics money laundering effectively, certainly not in their charter either. The USFed does have owners, and they cannot be pleased. The turnaround in the housing market never occurred. Its prospects look worse with each passing month. If the USGovt or the Elite operating as handlers for the captive USGovt decide to convert private property into collectivized syndicate ownership, and use their Fannie Mae device as agent for the process, then perhaps the USFed might serve as a facilitator to the vast Collectivism project. The United States Government might someday own the majority of homes in the nation, maybe even commercial buildings and shopping malls too. The disenfranchised can always go camping, as in the Favored Environmental Managerie Amorphous camps.
ARMADA OF BLACK SWANS
Consider the following black swan specimens, each of which is astounding, each alarming, each serving as one more added element to the ruined situation. The swan organization is admittedly rough, but the regiments are put in sensible order. Any small handful of these signals would qualify as forewarning a profound crisis. Not anymore, since crisis is the new normal. Not anymore, since black swans adorn the entire landscape. A healthy white swan gradually suffers from toxic exposure, quickly to turn black from a putrefaction process. Apologies for overlooking at least a dozen other important other black swans, as time and space did not permit the exhaustive catalogue process. Emphasis was given to the United States ponds and its migratory bird population.
USTREASURY BOND SWANS
  • USGovt debt ceiling standoff, with actual violations
  • Over 75% of USTreasurys auctioned bought by the USFed in debt monetization
  • Turnaround from primary bond dealers to POMO repurchase by the USFed is 3 weeks
  • Foreign banks form 12 of 21 primary bond dealers
  • PIMCO owns no USTreasury Bonds, even short
  • Global boycott of USTBond by creditors, some net sellers
  • Foreign creditors owns the majority of USGovt debt
  • A fixture of $1.5 trillion annual USGovt deficits
  • Greenspan and David Stockman warn of USGovt debt catastrophe
  • USMint officers admit Fort Knox has been shut down for 30 years, as in zero gold
USFED SWANS
  • QE permanence, otherwise called QE to Infinity, worked into standard policy
  • Bank of England urges more bond buying
  • Cost of money 0% for two full years, implication being destroyed capital
  • Chairman regards monetary hyper-inflation as being zero cost
  • Ron Paul pushes for a USFed audit, an end run to pay down USGovt debt
  • USFed owns more USTBonds than any other creditor
  • Competing Currency War has Euro weakness mean USDollar as all circle the toilet
USGOVT SWANS
  • USGovt could shut all operations but still be have a budget deficit
  • USGovt could confiscate all income but still have a budget deficit
  • USGovt must cover AIG payouts on Greek Govt debt default from CDSwaps
  • US Postal Service stops all payments into their pension system
  • New York Fed refuses to disclose the destination of $6.6 billion stolen from Iraqi Reconstruction Fund
  • Federal Worker Pension Funds and G-Funds confiscated (called borrowed)
  • USMint runs out of gold & silver metal to make coins
  • Endless war accepted as sacred, whose costs are crippling
  • Council on Foreign Relations enables a foreign nation to control US foreign policy
  • Breaches to USGovt communications via WikiLeaks
COMEX SWANS
  • GATA Gold Rush 2011 in London Savoy Hotel on August 4th will feature the COMEX whisteblower Andrew Maguire
  • Silver futures contracts settled almost exclusively in cash, often with 25% vig bonus
  • Gold & silver futures contracts often settled with GLD & SLV shares
  • Umpteen margin increases for gold & silver futures contracts, but reductions in USTBond futures contract margin requirements
  • Brent versus West Texas crude oil price has a $20 spread
  • Every time Bernanke assures US financial markets, gold & silver rise in price
  • Elimination of Over The Counter gold & silver contracts due in mid-July
BANK SWANS
  • Chronically insolvent USFed and EuroCB, balance sheets ruined
  • FASB accounting rules permit banks to grade their own test exams
  • Stress Test for banks had almost no stress, a sham
  • Dependence by Wall Street banks on naked shorting USTBonds and narco funds, the former called Failures to Deliver, the latter recognized by the United Nations
  • Shadow housing inventory held by banks over one million homes
  • Wall Street firms in court on the defensive, JPMorgan foreclosed soldiers
  • Wall Street firms banned in Europe on bond securitization and issuance
  • Strategic mortgage defaults by homeowners on the fast rise
  • Gold holdings by tyrant Arab rulers targeted by New York & London banks
  • War over Libya grabbed $90 billion in Qaddafi money by New York & London
  • PIGS sovereign debt default in Europe to have impact ripples that reach US banks
  • Standard & Poors reminds the players what constitutes a debt default
  • No liquidation of big US or London or European banks since Lehman Brothers
  • Much of dimwitted US population believes the propaganda that Gold is a bubble
USECONOMY SWANS
  • USEconomic indexes fall off the cliff, see Philly Fed, Empire State, ISMs
  • Rampant systemic insolvency in banks, homes, federal government
  • US housing resumes its powerful bear market
  • US land title system in the disintegration process, see MERS on mortgage titles
  • Unemployment at 20% across the Western world, economic misery index hit 30%
  • USGovt economic stimulus never contains stimulus
  • Main non-military innovation in the United States is bond fraud
  • Shrinking US trucker industry from $4 gasoline and diesel
  • China begins to export price inflation to the United States
  • Killing state worker union pensions as part of the state budget shortfalls
  • Gulf of Mexico off limits for oil drilling
  • 1 in 7 Americans is on Food Stamps, whose debit cards are good JPMorgan business
  • media blackout on the Fort Calhoun near nuclear plant meltdown in Nebraska
FOOD & WEATHER SWANS
  • Food price inflation is staggering but denied
  • Floods across Midwest & Plains states to interrupt with planting & harvest
  • Australian floods have interfered with coal industry and agriculture
  • Fukushima and Northwest US infant mortality, with vulnerable milk next
  • Big volcanoes like in Chile and Iceland  disrupt weather and air travel
EUROPEAN SWANS
  • German bankers at war with Euro Central Bank
  • Germans abandon the EuroCB, leaving it to Goldman Sachs, see Draghi
  • Spanish banking system has yet to write down squat on housing credit assets
  • Portugal, Italy, and Spain sure to follow Greece into a debt default
  • Belgium has had no government for a full year
  • Ireland prints more money per capita than the USFed
  • US & NATO to part ways
CHINESE SWANS
  • G-8 Meeting is pushed aside, as the Anglos deal with broad insolvency
  • G-20 Meeting takes center stage in a power play, led by China and the BRICs
  • China buys discounted PIGS sovereign debt, to redeem later in central bank gold
  • Chinese FX reserves exceed $3 trillion held in sovereign wealth funds
  • China owns most world major ports, as part of a strangulation process
  • China conducts the great Idaho experiment, toward re-industrialization of America
HIDDEN SWANS
  • Swiss faces hundreds of $million lawsuits, for refusal to deliver Allocated gold
  • Saudi Arabia cuts new deal for Persian Gulf security protection, see Petro-Dollar
  • Citigroup has high hidden exposure to Greek Govt debt default
  • Chinese vengeance over reneged USGovt gold & silver lease, as part of the Most Favored Nation granted status, has motivated its extreme pursuit of precious metals
  • Containers hold $300 to $500 billion in EuroNotes at Greek port warehouses
  • Internet strides light years ahead of USGovt regulatory hounds at syndicate offices
  • Chemtrails, storm steering, lingering droughts, fallout falling, haarps a playing
GOLD & SILVER BREAKOUT IN ALL CURRENCIES
The great spring 2011 precious metals consolidation is coming to an end. In no way is the Quantitative Easing program coming to an end, otherwise known as hyper monetary inflation. Printed money is being abused to cover bank insolvency and to redeem toxic bank assets. The central banks are taking down the QE billboards. They will continue with their debt monetization in order to manage the financial system collapse in an orderly manner. As David Malpass adroitly said on Bloomberg Financial News, the debt monetization known as quantitative easing will quietly become an integral but hidden part of the USFed monetary policy. The central bank must find a way to cover the $200 billion in monthly USTreasury auctions, to roll over the obligated primary bond dealer inventory, and to lap up the mountain of toxic mortgage bonds that prevent an all-out cave-in of the bank balance sheets. The reality is that nothing has been fixed, nor attempted in solution. The grotesque insolvency of banks, households, and government is the marquee message. Without continued monetization, the system would collapse rapidly and disorderly. However, with continued monetization, with a QE chapter by another name or conducted behind the same curtains, the system will collapse in a gradual and orderly manner. The USFed has no more credibility. The announcement on Wednesday that the New York Fed refused to provide details on stolen Iraqi Reconstruction Funds is the latest blatant syndicate action that screams criminality. Witness the early stage of another uniformly applied global Gold bull market breakout.
The Gold price has hit record highs in the British Pound Sterling, where their banks are insolvent, their economy is in reverse, price inflation is ramping up, and their currency is facing grandiose debasement. The SterlingGold price smells monetary ruin. The global breakout is manifested first in the most broken non-American locations, since the spring ambush orchestrated in the COMEX has put huge pressure on foreign currencies. The Competing Currency War still leads the desperate USFed officials to slam foreign currencies and to place financial press attention on their declines.
The EuroGold price smells monetary ruin. The attention has been squarely on the Greek battle to avoid debt default. Every news story about the USEconomy faltering is following immediately by a story of Greek bailout impasse or Athens challenge to ingest suicidal austerity pills or riots on the Athens streets. The differentiation of EuroBonds with greatly varying bond yields has permitted the Euro to trade on speculative merit. The Greek default threat surely pushes down the Euro. But the prospect of a higher Euro Central Bank interest rate leaves speculators to buy the Euro, since proper pricing mechanisms are in place on the sovereign bond yields. The European investors are clearly flocking to Swiss banks on the paper investment side, but their pursuit of Gold is enormous. The Euro Monetary Union is running on fumes. The pain in Spain is hardly on the wane. The Gold price will rise and break out soon enough.
The YenGold price smells monetary ruin. The situation in Japan is terrible, complicated, and tragic. The advent of trade deficits will aggravate the outsized cumulative debt burden on the nation. The paradox is starting to show itself. Their trade deficits will force the national insurance firms and banks, even the Bank of Japan, to sell existing US$-based assets in a political compromise. They do not want to monetize more debts. They do not want to create worse federal budget deficits. They will compromise by selling foreign assets to finance the reconstruction and dislocation costs. The paradox will manifest itself with a rising Yen currency in the face of worsening deficits in every conceivable crevice. As their nation slides into the sea, both literally and with red ink, and the salt on the wounds coming in the form of price inflation, the Gold price will rise and break out soon enough.
Last to break out will be Gold in US$ terms. The Gold price smells monetary ruin on home turf, not to be deceived by any USFed head fakes. Perhaps a sudden awakening to the obvious continuation of QE2 and merge into QE3 could enable a Gold breakout in double quick fashion, ahead of other currencies. Much more stability is seen in the Gold price rise in US$ terms, as the destruction is more stable, the monetary ruin more understood, the federal budget debate more openly futile, and the national insolvency more publicized. The early May high of 1563 will easily be surpassed, all in time. The impetus might be QE163 or a liberated USGovt deficit from a raised debt limit or a failed USTreasury auction or a big US bank failure or a spike in mortgage rates or a plummet in housing prices or a longer parade than the current stream of miserable USEconomic data. The Gold price rose toward $1550 following the vacant FOMC meeting on Wednesday, where the main purpose was to put us to sleep.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
From subscribers and readers:
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by Jim Willie CB 
Editor of the “HAT TRICK LETTER” 
Home: Golden Jackass website 
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Use the above link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com . For personal questions about subscriptions, contact him at JimWillieCB@aol.com
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Why the Eurozone and the Euro Are So Freaking Doomed


From Zero Hedge
by Charles Hugh Smith from Of Two Minds
Why the Eurozone and the Euro Are Both Doomed  


Papering over the structural imbalances in the Eurozone with endless bailouts will not resolve the fundamental asymmetries.
Beneath the endless announcements of Greece's "rescue" lie fundamental asymmetries that doom the euro, the joint currency that has been the centerpiece of European unity since its introduction in 1999.

The key imbalance is between export powerhouse Germany, which generates huge trade surpluses, and its trading partners, which run large trade and budget deficits, particularly Portugal, Italy, Ireland, Greece and Spain.

Those outside of Europe may be surprised to learn that Germany's exports are roughly equal to those of China ($1.2 trillion), even though Germany's population of 82 million is a mere 6% of China's 1.3 billion. Germany and China are the world's top exporters, while the U.S. trails as a distant third.

Germany's emphasis on exports places it in the so-called mercantilist camp, countries that depend heavily on exports for their growth and profits. Other (nonoil-exporting) nations that routinely generate large trade surpluses include China, Japan, Germany, Taiwan and the Netherlands.

While Germany's exports rose an astonishing 65% from 2000 to 2008, its domestic demand flatlined near zero. Without strong export growth, Germany's economy would have been at a standstill. The Netherlands is also a big exporter (trade surplus of $33 billion) even though its population is relatively tiny, at only 16 million. The "consumer" countries, on the other hand, run large current-account (trade) deficits and large government deficits. Italy, for instance, has a $55 billion trade deficit and a budget deficit of about $110 billion. Total public debt is a whopping 115.2% of GDP.

Spain, with about half the population of Germany, has a $69 billion annual trade deficit and a staggering $151 billion budget deficit. Fully 23% of the government's budget is borrowed.

This chart illustrates the dynamic between mercantilist and consumer nations:


Although the euro was supposed to create efficiencies by removing the costs of multiple currencies, it has had a subtly pernicious disregard for the underlying efficiencies of each eurozone economy.

Though German wages are generous, the German government, industry and labor unions have kept a lid on production costs even as exports leaped. As a result, the cost of labor per unit of output -- the wages required to produce a widget -- rose a mere 5.8% in Germany in the 2000-09 period, while equivalent labor costs in Ireland, Greece, Spain and Italy rose by roughly 30%.
The consequences of these asymmetries in productivity, debt and deficit spending within the eurozone are subtle. In effect, the euro gave mercantilist, efficient Germany a structural competitive advantage by locking the importing nations into a currency that makes German goods cheaper than the importers' domestically produced goods.

Put another way: By holding down production costs and becoming more efficient than its eurozone neighbors, Germany engineered a de facto "devaluation" within the eurozone by lowering the labor-per-unit costs of its goods.

The euro has another deceptively harmful consequence: The currency's overall strength enables debtor nations to rapidly expand their borrowing at low rates of interest. In effect, the euro masks the internal weaknesses of debtor nations running unsustainable deficits and those whose economies had become precariously dependent on the housing bubble (Ireland and Spain) for growth and taxes.

Prior to the euro, whenever overconsumption and overborrowing began hindering an import-dependent "consumer" economy, the imbalance was corrected by an adjustment in the value of the nation's currency. This currency devaluation would restore the supply-demand and credit-debt balances between mercantilist and consumer nations.

Absent the euro today, the Greek drachma would fall in value versus the German mark, effectively raising the cost of German goods to Greeks, who would then buy fewer German products. Greece's trade deficit would shrink, and lenders would demand higher rates for Greek government bonds, effectively pressuring the government to reduce its borrowing and deficit spending.

But now, with all 16 nations locked into a single currency, devaluing currencies to enable a new equilibrium is impossible. And it leaves Germany facing with the unenviable task of bailing out its "customer nations" -- the same ones that exploited the euro's strength to overborrow and overconsume. On the other side, residents of Greece, Italy, Spain, Portugal and Ireland now face the unenviable effects of government benefit cuts aimed at realigning budgets with the productivity of the underlying national economy.

While the media has reported the Greek austerity plan and EU promises of assistance as a "fix," it's clear that the existing deep structural imbalances cannot be resolved with such Band-Aids.

Either Germany and its export-surplus neighbors continue bailing out the eurozone's importer/debtor consumer nations, or eventually the weaker nations will default or slide into insolvency.

Germany helped enable the overborrowing of its profligate neighbors by buying their government bonds. According to BusinessWeek, German banks are on the hook for almost $250 billion in the troubled eurozone nations' bonds.

Now an inescapable double-bind has emerged for Germany: If Germany lets its weaker neighbors default on their sovereign debt, the euro will be harmed, and German exports within Europe will slide. But if Germany becomes the "lender of last resort," then its taxpayers end up footing the bill.

If public and private debt in the troubled nations keeps rising at current rates, it's possible that even mighty Germany may be unable (or unwilling) to fund an essentially endless bailout. That would create pressure within both Germany and the debtor nations to jettison the single currency as a good idea in theory, but ultimately unworkable in a 16-nation bloc as diverse as the eurozone.

Be wary of the endless "fixes" to a structurally doomed system.

__________-


Related:

Nigel Farage Holds Funeral Procession For Euro In The Middle Of Brussels

The Ugly Truth: Video Of Libyan Rebel Beheading Gadhaffi Soldier And Other Nato War Crimes

From The Intel Hub, June 23rd, 2011
By Susan Lindauer, former CIA Asset covering Libya 
NATO has been pumping propaganda out of Libya to justify its “humanitarian war” against the government of Moammar Gadhaffi. Until now, NATO has succeeded in large part because ordinary citizens around the world have no access to direct intelligence on which to base their own opinions.
As the former CIA Asset who covered Libya at the United Nations from 1995 to 2003 during negotiations for the Lockerbie Trial, I am compelled to break past that propaganda to examine actual evidence.
Responding to numerous requests, I am sharing primary evidence that I receive daily from sources inside Tripoli.  Video documentation comes from Libyan refugees, collected by a fact finding commission called “Global Civilians for Peace in Libya.”
The fact-finding team includes Europeans, Africans, Americans and international human rights attorneys, who are preparing allegations of War Crimes against NATO. Judging from these videos, financial damages that NATO will be required to pay Libya should be stupendous, indeed.
Above all, it’s clear that NATO grossly misrepresented its arguments at the United Nations, in order to justify military action. Britain and France trusted bad intelligence from unreliable sources, trying to gain power from the conflict.
A more careful investigation shows that it is the NATO backed Rebels who are guilty of atrocities—not Gadhaffi’s soldiers at all. Sanctions should be thrown out, and NATO should shift its military forces to back Gadhaffi in defending the Libyan people.
Never play truth or dare with a spy.
The videos portray horrific atrocities. There are two important reasons why NATO Rebels would commit these acts. First, in committing war crimes, NATO Rebels have deployed a strategy for provoking panic and confusion at the street level, where they must control the people.
They have frightened their opposition into silent submission. Ordinary Libyans can see with their own eyes that Libyan Rebels are all powerful, with NATO enforcers watching their back, and pro-Gadhaffi loyalists had better shut their mouths or face terrible consequences.
At the same time, Libyan Rebels have discovered a way to punch NATO’s buttons, and fire up the engines for the “Humanitarian War–” For some reason, the world is supposed to believe that Gadhaffi’s government—which has no history of attacking its own people in 41 years of rule—is suddenly guilty of the most hideous offenses.
Those of us who have studied Libya closely have opposite expectations. Historically, Gadhaffi has been so tenacious and protective of his people that he refused to hand over two Libyan men for the Lockerbie trial, despite years of U.N. sanctions.
Gadhaffi knew the men were innocent, and would not get a fair shake in Court. Simply put, Lockerbie was a false flag operation to cover up rogue CIA involvement in heroin trafficking out of the Bekaa Valley in Lebanon, during the Terry Anderson hostage crisis.
A joint team of CIA, FBI and Defense Intelligence investigators were flying on Pan Am 103 that day, heading for Washington to expose the corruption, when the plane exploded over Lockerbie, Scotland. Libya got tagged as the fall guy, but like 9/11, the truth refused to die. And Gadhaffi refused to back down. He stood by his people, despite punishing international pressures.
Gadhaffi’s guess proved correct, by the way. In one of the most shameful episodes of corruption ever at the International Courts, the U.S. bribed two witnesses at the Lockerbie Trial with $4 million pay offs.
After both witnesses recanted and confessed to the payments, the only Libyan convicted in the Pan Am 103 bombing, Abdelbasset Megrahi, won a “compassionate release” from Scottish prison in August, 2009, ostensibly so he could go home to die of cancer.
Gadhaffi’s actions reveal a great deal about his character. As a leader, does he throw his people to the wolves? Or abandon them for convenience? Notoriously not. He claims the Libyan people as his own. He protects them no matter the cost to himself.
These videos are the reality check. Ironically, by claiming Gadhaffi’s forces have been responsible for rape crimes specifically, NATO has made a glaring admission that War Crimes are in fact occurring inside Libya.
Headlines that Gadhaffi issued Viagra to fuel rape binges by his soldiers played very well on CNN. However former Congresswoman Cynthia McKinney has determined that the only major purchaser of Viagra bound for Libya was the U.S. Government itself, which handed out Little Blue Pills to older Rebel soldiers to energize them for battle.
Judging from rape testimonials coming out of Libya, the U.S. strategy succeeded in the most tragic ways.
The Bad Guys
These videos look awfully like Al Qaeda to me. But don’t take my word for it.  Look at the evidence and decide for yourself.
A warning: these videos are graphic and horrific. They’re posted at obamaslibya.com andFederalJack.com, because it’s got hefty security around its site and rock solid courage to speak truth to power.
FederalJack will not back down, and will update the videos on obamalibya.com as new footage arrives.
  • The first video shows a Libyan rebel beheading a Libyan soldier. If it looks like Iraq, well golly, the highest percentage of foreign fighters in Iraq (and Chechnya and Afghanistan) came from Eastern Libya. Unhappily for NATO, there’s no avoiding that this video was shot in Libya: The men are speaking a Libyan Arab dialect with its own distinct accent.
  • The second video shows gruesome footage of a Libyan rebel cutting up the rotted flesh of a dead soldier and forcing it into the hands of Libyan Prisoners of War, who are lined up in a row so they must eat it.
  • Another video shows a group of Rebels sodomizing a civilian with a pistol.
  • Another  shows a crowd of Rebels hanging and beheading a Libyan soldier.
  • Another video shows CIA operatives working side by side Rebel forces, driving around in trucks— proof that U.S. forces are already on the ground and active participants in the atrocities.
  • Another video shows several dead Libyan soldiers with their throats cut, lying in the back of a truck. The killings violate the Geneva Conventions of War, which protect enemy soldiers after capture. In the excitement, NATO Rebels encouraged a frightened on-looker to video the butchery and claim that Gadhaffi’s forces were responsible. Afterward, the man with the video grabbed his family and fled the Rebel stronghold. That’s how the video reached the fact-finding group in Tripoli.
It’s so barbaric that it defies understanding how NATO could have envisioned these Rebels as holding any leadership potential at all.
Rape As a Weapon of War
Worst than you thought, right? Most notoriously up to this point, it has become evident that Rebels are using rape as a war-time punishment of pro-Gadhaffi or “neutral” families that don’t automatically embrace the Rebel cause.
In Islamic culture, the whole family suffers stigmas after rape, a sort of communal punishment.
Right now a team of female human rights attorneys are interviewing rape victims. Two rape testimonials and other eye witness reports are provided here.
However these are not the most graphic stories. The problem is traveling hundreds of miles through checkpoints and bombs. By explanation, as of June 22, non-governmental fact finders are traveling 200 miles to video a boy who got castrated and both eyes gouged out by NATO Rebels as punishment for refusing to join their paramilitary unit.
Other video getting collected comes from a father, who describes the kidnapping of his virgin daughter from a pro-Gadhaffi family. After dragging her out of the house at gun-point and taking her to a rape party for a brutal night gang rape, NATO rebels cut off her breasts with a knife, and she bled to death.
Human rights investigators are waiting to interview a Libyan Woman from Zawia who survived a brutal gang rape that cut off her breasts. Horrified on-lookers  saved her from bleeding to death, when the excited Rebels ran off, firing their guns in the air.
She’s been hospitalized, but she’s still too physically and mentally damaged to handle the interview. International human rights attorney are standing by.
We urgently seek an American sponsor so this Libyan woman can undergo reconstructive surgery in the United States or Europe. On June 19, Gadhaffi soldiers fighting for Misurata rescued another rape survivor.
The young woman had been kidnapped and held hostage for 20 days. Rebel forces gang raped her every single day, round the clock, until Gadhaffi’s forces broke through their lines and saved her life.
So much for NATO’s humanitarian mission. Clearly NATO has been grossly deceived, and should cease at once from protecting these Rebels.  U.S. tax dollars are training a New Taliban to intimidate the Libyan people into submission, while the West plunders Libya’s wealth.
But NATO failed to take into account the spirit of the Libyan people. Libya has a powerful history and traditions of resilience in defending its sovereignty from foreign invaders. Libyan families and Tribal Leaders are determined to seek financial damages from every NATO and Arab country that supports the rebels.
So long as NATO provides training, uniforms, military assault rifles, jeeps and transportation, ground advisers and air power—-NATO will be forced to take responsibility for these crimes. Financial damages will come out of funding for NATO’s own citizens—out of education, health care, government pensions, universities, roads, bridges, you name it.
Patrick Haseldine, a British expert on Libya’s conflict with NATO, has calculated current British financial damages at $2.8 billion.
All of it begs the question why NATO governments should want to support these Rebels in the first place? Indeed, all of us should ask some important questions.
Should President Obama spend hard-earned U.S. tax dollars from the Middle Class to finance this War?  Should America assume the role of training Al Qaeda forces and function as Al Qaeda enforcers? While our great nation bleeds red ink? While Americans struggle to find jobs and fight off foreclosures? Knowing that our soldiers are exhausted from two other failed Wars—fighting these same Al Qaeda Rebels in Iraq and Afghanistan?
And why exactly should America prop up NATO, so that the British and French can relive their glory days of Empire?  Is it worth risking our Empire and prosperity? Really?
These videos reveal a whole different truth. The CIA will probably get mad that I have released them. But good Intelligence Assets are supposed to deliver brutal honesty. We’re not supposed to hide ugly truths. We’re supposed to get information that leaders—and communities— urgently need to make the most informed choices in policymaking. It happens to be very, very ugly intelligence. But it would be wrong for me to spare you.
In my opinion as a former U.S. Asset, the United States should break ties with the Libyan rebels and cut off financing immediately.
You can decide for yourself.
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Susan Lindauer worked in anti-terrorism covering Libya, Iraq, Egypt, Yemen, Syria and Malaysia at the United Nations. Her team gave advance warning about the 9/11 attack. She is the author of Extreme Prejudice: The Terrifying Story of the Patriot Act and the Cover Ups of 9/11 and Iraq.
Intel Hub Note: This is an exclusive story by Susan Lindauer. Susan has proven herself to be a great source of information and has no reason, that I can see, to make something up and or alter evidence. With that being said, The Intel Hub has absolutely no way to independently confirm what side the man that was beheaded was actually on. Past information released by Susan has proved 100% correct.