Wednesday, December 9, 2009
The Origins of the “Global Warming” Scare
http://alethonews.blogspot.com/2009/10/origins-of-global-warming-scare.html
Did you know, that the “Human caused Global Warming” hypothesis didn´t originate in the 1980s, but actually in the 1880s? Although, until the late 1970s, the hypothesis was considered “a curiosity”, since it contradicted observed events.
Did you further know, that at first this hypothesis wasn´t publicly promoted by scientists or even environmentalists, but by a UN ambassador and a very ambitious British Lady politician?
It’s snowing in April. Ice is spreading in Antarctica. The Great Barrier Reef is as healthy as ever. And that’s just the news of the past week. Truly, it never rains but it pours – and all over our global warming alarmists.
Time’s up for this absurd scaremongering. The fears are being contradicted by the facts, and more so by the week.
- wrote Andrew Bolt in the Australian Herald Sun last April.
Then he goes on to debunk many of the main claims most “Global Warming” (renamed “Climate Change”) believers will cite in public:
-like the claim that
the earth is rapidly warming at the moment.
The facts, however, are
that according to data from Britain’s Hadley Centre, NASA’s Aqua satellite and the US National Climatic Data Centre
the fall in temperatures from just 2002 (until 2009) has already wiped out half the warming our planet experienced last century.
(See also: Climate Sensitivity Reconsidered)
-or the claim that
the polar ice is rapidly melting.
The facts, however, are
that a British Antarctic Survey, working with NASA, last (April) confirmed
ice around Antarctica has grown 100,000 sq km each decade for the past 30 years.
-or the claim, that
the oceans are warming up
The facts, however, are
according to Josh Willis, of NASA’s Jet Propulsion Laboratory who evaluated
a five years study (done using) a network of 3175 automated bathythermographs deployed in the oceans by the Argo program, a collaboration between 50 agencies from 26 countries:
“There has been a very slight cooling”…
-or the claim that
sea-levels are rising dramatically.
The facts, however, are
according to the Jason-1 satellite mission monitored by the University of Colorado, that
for almost three years, the seas have stopped rising,
-or the claim,
that world-wide devastating storms (cyclones) are getting worse.
The facts, however, are
according to Ryan Maue of Florida State University, who
recently measured the frequency, intensity and duration of all hurricanes and cyclones to compile an Accumulated Cyclone Energy Index.()
The energy index is at its lowest level for more than 30 years.
-or the absolutely ridiculous claim by World Vision boss Tim Costello that Asia was a “region, thanks to climate change, that has far more cyclones, tsunamis, droughts”.
The facts are
(besides that Tsunamis are caused by earthquakes)
according to a 2006 study by Indur Goklany, who represented the US at the Intergovernmental Panel on Climate Change:
“There is no signal in the mortality data to indicate increases in the overall frequencies or severity of extreme weather events, despite large increases in the population at risk.”
Most of the myths, which are now slowly being debunked by scientists through intensive research, have once been created by “scientists”.
The United Nations’ Intergovernmental Panel on Climate Change (IPCC) has for several decades now employed “scientists” who claim
that human activities are responsible for nearly all earth’s recorded warming during the past two centuries.
writes David R. Legates in “Breaking the “Hockey Stick”
A widely circulated image used by the IPCC dramatically depicting these temperature trends resembles a hockey stick with three distinct parts: a flat “shaft” extending from A.D. 1000 to 1900, a “blade” shooting up from A.D. 1900 to 2000, and a range of uncertainty in temperature estimates that envelops the shaft like a “sheath.”
This image was produced by Michael Mann, Ray Bradley and Malcolm Hughes
(other colleagues working with Mann on his subsequent “climate change” research-papers were Philip D. Jones and Gavin Schmidt)…..
However, five independent research groups have uncovered problems with the underlying reconstructions by Mann and his colleagues in their 1998 and 1999 work that have persisted through his most recent collaborative efforts, calling into question all three components of the “hockey stick.”…
Mann and Jones indicate that globally- and hemispherically-averaged air temperatures from A.D. 200 to 1900 were nearly constant. Missing from their timeline, however, are the widely recognized Medieval Warm Period (about A.D. 800 to 1400) and the Little Ice Age (A.D. 1600 to 1850).
Most proxy records from around the globe show these climatic events, as Willie Soon, Sallie L. Baliunas and I concluded in a 2003 paper published in Energy and the Environment.
For instance:
* In such widely disparate regions as Argentina, Chile, southern Peru, southern Africa and northern China, records indicate a marked warming at the beginning of the last millennium followed by extreme cold during the middle centuries.
* Historical proxies for temperature – such as tree rings, ice cores and bore holes – in New Zealand, Australia and California also confirm widespread, significant warming and cooling trends…..
(Scientists) Stephen McIntyre and Ross McKitrick..().. contend that Mann and his colleagues in their 1998 and 1999 papers unjustifiably truncated or extrapolated trends from source data, used obsolete data, made incorrect calculations, and associated data sets with incorrect geographical locations….
More recently,(scientists) David Chapman, Marshall Bartlett and Robert Harris identified methodological problems in a 2003 Geophysical Research Letters study by Mann and G. Schmidt.
Specifically, Mann and Schmidt eliminated specific proxy records (data from bore holes) they thought were inaccurate. Chapman et al. showed that Mann and Schmidt had unjustifiably excluded the bore-hole data and concluded that their methods were “just bad science” and that they presented a “selective and inappropriate presentation” of results..….
Jan Esper, David Frank and Robert Wilson () further argued that the fatal flaw with Mann, Bradley and Hughes’ temperature reconstruction is its incorrect representation of longer-term trends.
They observed that the statistical methods used inappropriately remove trends over long time periods..…
But the meteoric rise of the “Global Warming – bad science” into a global dogma and from there into the legislation of, by now, most nations on earth, did not originate with scientists at all.
Richard Courtney, founding member of the European Science and Environment Forum and technical adviser to several members of the British Parliament as well as to some British members of the European Parliament wrote the 1999 article “Global Warming: How It All Began” in which he explores the history of this particular pseudo-science.
The hypothesis of man-made global warming has existed since the 1880s. It was an obscure scientific hypothesis that burning fossil fuels would increase CO2 in the air to enhance the greenhouse effect and thus cause global warming. Before the 1980s this hypothesis was usually regarded as a curiosity because the nineteenth century calculations indicated that mean global temperature should have risen more than 1°C by 1940, and it had not.
Then, in 1979, Mrs. Margaret Thatcher (now Lady Thatcher) became Prime Minister of the UK, and she elevated the hypothesis to the status of a major international policy issue…..
Courtney goes on to explain, that in 1979 Thatcher actually did not yet have a much stature abroad or at home. In Britain her only claim to fame as an Education Secretary in the Heath administration that collapsed in 1974 was as ‘Milk Snatcher Thatcher’ due to her policy of ending distribution of milk to British school-children.
It was Britain´s Ambassador to the United Nations, Sir Crispin Tickell, who suggested she should use the issue of “Global Warming” as a means to gain national and international credibility.
He also suggested, that Thatcher with her education, a degree in chemistry, could easily win debates on scientific subjects, since most other politicians were “scientifically illiterate” .
As an aside, there are quite interesting parallels between the British “Iron Lady” of the 1980s and the German “Iron Lady” of today.
Like Thatcher, Angela Merkel was not widely known before she was put into office by her party.
(Why they chose her is rather a mystery. Merkel was actually loosing votes for her conservative Christian Democratic Party, with her pro-Iraq-war position, when practically the whole German nation was opposed to it, and the seeming inability to produce a single genuine smile reaching the eyes, which gave her a definite lack of public charisma.)
Like Thatcher, Merkel also has degree in science, a doctorate (Dr. rer. nat.) for her thesis on quantum chemistry.
Like Thatcher, Merkel is busy cutting down on workers´ rights and on the German social safety net. Merkel, the pro-corporate and anti-union German chancellor, is also a strong supporter of carbon tax legislation, both in Germany and in Europe, as well as a mandated global reduction in CO2 to combat “Global Warming”.
Margaret Thatcher went for Ambassador Tickell´s “Global Warming” to strengthen her prominence. Her Conservative Party went for it, to weaken the British coal-miners labor union. “Global Warming” would then give the nuclear industry a push, since now coal-fueled power-stations could be replaced by nuclear power-stations for “environmental” reasons. Britain´s nuclear industry urgently needed that kind of a push since the Three Mile Island accident had damaged public confidence in nuclear technology.
The other rationale for why nuclear power should be used instead of coal, the alleged cost benefit, was being destroyed, when privatization of the Britain’s electricity supply industry exposed that British nuclear power was produced at four times the cost of electricity produced in coal-fueled power plants.
And, writes Courtney,
the Conservative Party wanted a large UK nuclear power industry for another reason. That industry’s large nuclear processing facilities were required for the UK’s nuclear weapons programme and the opposition Labour Party was then opposing the Conservative Party’s plans to upgrade the UK’s nuclear deterrent with Trident missiles and submarines.
Subsequently the “Global Warming” issue was promoted by large government grants and funds. Scientists fell in line through peer pressure and for fear of losing their research funding and not because they actually were convinced by the argument.
In 1992 Greenpeace International conducted a survey of the world’s 400 leading climatologists. Greenpeace had hoped to publicize the results of that survey in the run-up to the Rio summit, but when they completed the survey, they gave very little publicity to its results. In response to the survey, only 15 climatologists were willing to say they believed in global warming, although all climatologists rely on it for their employment.
Though not all scientists sold out their integrity for funds:
Following the Leipzig Climate Conference in November 1995,
the Leipzig Declaration disputes the IPCC assertions about man-made global warming. It was drafted and has been signed by over 1,500 scientists from around the world.
Today the “Global Warming” and “Climate Protection” issue is being sold to the public as being a liberal or even a left-wing concern. Forgotten is it´s very much right-wing, anti-union corporate and militarist origin.
Green and environmental minded people also seem to have forgotten the connection between “Global Warming” and the nuclear power-industry, and anti-war activists never seem to register, that “Global Warming” was actually used to create more weapons of mass-destruction.
The fact that the “Global Warming” or “Climate Change” issue isn´t really about environmental protection is clearly shown, for instance, by the US Climate Change Bill, promoted by the new US Obama Administration and his “progressive” Democratic Party.
Atheo News writes about the bill in Dr. Chu’s Energy Bait and Switch
The congressional mandates “are very weak and really will not require any additional renewables beyond what states already are doing,” says Mark Sinclair of Clean Energy States Alliance. “It will be meaningless. It’s just a gesture.”
Marchant Wentworth of the Union of Concerned Scientists came to a similar conclusion, seeing that absolute requirements for renewables, after allowances, would be as low as 8 percent of total electric power generation for each utility. This is hardly a challenge for most utilities in a nation that in 2006 generated almost 10 percent of its electricity from renewable sources, including hydro power.
In other words, the proposed renewable sources requirements amount to little more than shallow symbolism. The current public subsidies and underwriting for nuclear power already make the nuclear choice more economically viable for utilities to maximize return on utility investment. The legislation is, in fact, a thinly veiled mandate for building new nuclear power plants, or to increase output from existing ones.
Republicans are offering a different plan that simply calls for building 100 new nuclear plants within the next twenty years.
These plans mirror similar policies across the Atlantic where the government in Britain is rushing a new generation of nuclear power plants, with a goal to begin construction within four years. Both ‘energy independence’ and climate change were cited as rationales by policy makers there as well.
Obama’s Secretary of Energy, Dr. Steven Chu, from Lawrence Berkeley National Laboratory, is a staunch advocate of nuclear power, citing it as “essential” due to global warming while at the same time ignoring the carbon emissions of the “nuclear cycle” that are produced from the mining, milling, enrichment, fuel fabrication and disposal of spent fuel. The new appointee described nuclear power as “carbon free” at his confirmation in January.
While the “Global Warming” or “Climate Change” skeptics (sometimes called “deniers”) are often accused of being paid assets of the oil industry, the economical and political advantages of the “Global Warming” pseudo-science for the nuclear power industry cannot be denied any longer.
There is, however, an even stronger and even less publicly known connection of the “Global Warmers” with another industry, as Aletho News reports:
The new Democratic climate change bill , introduced in the Senate by Barbara Boxer and John Kerry, contains more advantages for nuclear power than even the legislation which passed in the House of Representatives last June. Included are waste management, financing and loan guarantee arrangements, regulatory risk insurance, as well as R&D and training programs. Joseph Lieberman is understood to be preparing the fine print for the bill which is presently “short on details”…..
As with other major pieces of legislation under consideration by the current Congress, the financial industry is a central actor, venture capitalists “are ready to pour multibillions of dollars into clean energy” if Congress passes “some kind of bill that talks about energy independence and climate change,” Boxer said.
How deep the connection between the “Climate Change” movement and the financial industry actually is, and how important the matter is for the elite of this industry, and how this even is connected to the issue of Iran´s civilian nuclear energy program, will be the subject of part two of this report.
Part Two:
Where "Global Warming" and "Peak Oil" meet
That place, of course, is the world´s financial market.
"Human Caused Climate Change" is a financial scam, so is the "Peak Oil" paradigm of catastrophic energy shortages in the near future.
Oil and natural gas are not scarce, but actually abundant energy resources. They are also most likely of non-biological origin, as Russian scientists and oil companies have shown for over 50 years.
While the myth of "Global Warming" is used to create new revenues for the financial elites, the myth of a limited supply of "fossil fuels" had been used for creating large profits in the past.
The western financial elites hope to secure those profits in the future by regulating the use of oil, gas and coal through internationally agreed upon CO2 reduction measures, carbon trade agreements and by monopolizing tomorrow´s nuclear energy market. This is one reason why Iran´s civilian nuclear energy program is being so severely opposed by all the governments of the western world that seek to dominate export markets for nuclear installations from India to Brazil. A primary reason also is Israel's demand that it retain technological superiority.
As we have seen in the last post, the theory of "Catastrophic Human Caused Global Warming" neither originated from a large group of scientists nor from environmental grass-roots organizations. Instead it was a long discarded 19th century hypothesis, which was taken out of the dustbin and then proposed by the 1979 British UN Ambassador, who "tickled" the ambition-streak of Margaret Thatcher, the British Prime Minister at the time.
We also saw, that the main argument for a human caused Climate Change, the so-called "Hockey-Stick", has been scientifically discredited for years.
Using mostly official IPCC charts and other research done by the UN "Global Warming" scientists themselves, Dr.David Evans of Science Speak points out that, while there is evidence for some warming of the planet in the last century, there is indeed
No Evidence
that carbon dioxide emissions are the main cause of the recent global warming
And with this conclusion Evans stands in agreement with over 650 leading scientists who, while attending the UN Climate Conference in Poland,
scoffed at doomsday reports of man-made global warming - labeling them variously a lie, a hoax and part of a new religion.
Those international scientists are then quoted in a US-Senate EPW Minority report.
But in spite of more and more counter arguments by the scientific community, especially from climatologists, the "Climate Change" bills, mandating carbon reduction for individuals and industries are rammed through practically all parliaments in the industrialized world.
We once again have to look at the money trail to explain the reasons for this paradox:
The New York Times, reported on November 12, 2008
Goldman Sachs Buys Into Carbon Offsets
Goldman Sachs has recently bought pieces of two carbon-offset companies, in the latest sign of investment banks’ interest in the area......
Carbon offsets are projects that reduce greenhouse gas emissions — thus potentially counterbalancing a rise in emissions elsewhere. Planting trees are the most obvious offset; but other examples include capturing methane (a potent greenhouse gas) from a coal mine, or undertaking a qualified energy-efficiency project. Offsets are used in the European carbon dioxide cap-and-trade system, but have been slow to catch on in this country, where carbon trading is largely voluntary.
And on February 26, 2008 Chris Morrison from the Green Beat branch of the investment website Venture Beat writes:
Will carbon-trading happen? Goldman hopes so, backs APX
APX, a Silicon Valley company that certifies carbon and emissions offset certificates, and which is well-placed to support carbon-trading markets when they emerge, has gotten backing from Goldman Sachs in a $14 million investment, VentureBeat has learned.
Carbon trading is a growing business that could someday come to resemble the world’s largest financial markets.
Today’s emissions markets are generally small and fragmented. In regional U.S. energy markets, utilities are already required to buy electricity from alternative energy sources like geothermal, solar or wind. To prove their use of alternative energy, they’re required to file a certificate tracking their acquisition of the energy units. So this is the beginning of a “transfer” regime that could grow into more.
Meantime, carbon offsetting markets, that corporations buy credits from, are currently voluntary, but in anticipation of future government regulation, they often require similar certifying schemes. However, the source of offsets can vary widely, from alternative energy generation to tree planting projects.
APX acts as part of the intermediary chain between buyer and seller, doing the work of tracking serial numbers on these certificates and the accounts they go into. It’s not glamorous, but having an efficient, scalable back-end will be one of the requirements for building a multi-billion dollar market, as emissions trading may well become.
As today’s small, scattered emissions trading markets grow, they may come to resemble the complex business and regulatory ecosystems of the futures and equities markets, which include various behind-the-scenes businesses similar to APX.
Another indicator that some very serious businesses are becoming involved is one of the new investors in the company’s latest funding: Goldman Sachs, a heavyweight in the New York financial markets.
The largest financial corporation in the world buys into both the "carbon-offset" as well as into the "carbon-trading" market, which is expected to become a multi-billion dollar business.
The reduction of the use of hydro-carbon energy will make large profits to be funneled once again into the financial markets, which then will substitute for the profits the oil companies, in cohorts with the oil producing countries, used to make. While energy demand is fairly inelastic, a generalized increase in end user cost will enrich the well placed.
Why, if "human caused climate change" is a scam, is this substitution necessary?
Because slowly but certainly the knowledge emerges, that these large oil-profits of the past had also been based on a scam - the scam of "resource depletion" caused by over-exploitation of resources due to "exponential global population growth".
The myth of" increasing and catastrophic resource shortages" was initially promoted by the Rockefeller associated "Club of Rome".
Nowadays this scam is most often called the "Peak Oil" problem.
The "Peak Oil" propagandists tell us that oil, as well as natural gas-production, has either already peaked or will in the very near future. After reaching the peak of production a fast decline would make "cheap energy" increasingly scarce. As a consequence, the global economy, dependent on "cheap energy", would contract and eventually crash. This would then cause wide-spread devastation for most of us. And for billions of people all over the globe it would cause constant food-shortages and even starvation.
The catastrophic consequences to global food-production by shortages of oil and gas as energy resources is the first false paradigm promoted by the "Peak Oil" myth.
The second one is, that the world´s economic production is vitally dependent on energy being "cheap".
The reality is, that it isn´t the world´s real, physical economy but the global financial markets which are dependent on energy-resources being "cheap". For today´s actual consumers of energy, for private, industrial or public consumers, oil and gas aren´t actually that "cheap".
It is the large difference between production costs and consumer prices of oil and gas, which for a long time have kept the snake-oil sellers of the big financial corporations afloat. This high price/cost difference in oil production in the past was forced unto global consumers by the monopoly power the large oil-corporations had on the business and the coercive power their main shareholders had on governments all over the world.
The same "monopoly" game is now being started with nuclear energy production, as Dutch researcher Rudo de Ruijter points out in
US-Iran: Raid on nuclear fuel market
In the background of the political joust about Iran, a few countries are reshaping the world. They are taking possession of the global nuclear fuel market. New IAEA regulations should keep newcomers away.
The US, UK, France, Germany, Russia, China and Japan will become the world’s nuclear filling stations. Under the auspices of the IAEA these suppliers will dictate the rules, the prices and the currencies they want to get paid in.
Iran has become the pretext and test case for their plans.
However, like the "man-made Global Warming" myth, the "Peak-Oil" myth is now being contradicted by the facts, which even part of the mainstream media can no longer ignore:
On January 18, 2008 the British Times reports:
World not running out of oil, say experts
A landmark study of more than 800 oilfields by Cambridge Energy Research Associates (Cera) has concluded that rates of decline are only 4.5 per cent a year, almost half the rate previously believed, leading the consultancy to conclude that oil output will continue to rise over the next decade.
Peter Jackson, the report's author, said: “We will be able to grow supply to well over 100million barrels per day by 2017.” Current world oil output is in the region of 85million barrels a day.
But not only do western experts now concede, that there is far more oil in the ground, than they have previously admitted to, but there are also a growing number of western geologists who finally are starting to challenge the 18th century theory of "fossil" fuel, something the Russians have done over half a century ago.
William Engdahl writes about this in his "Confessions of an “ex” Peak Oil Believer"
Engdahl explains that for the Soviets it actually was "Necessity" which became "the mother of invention"
In the 1950’s the Soviet Union faced ‘Iron Curtain’ isolation from the West. The Cold War was in high gear. Russia had little oil to fuel its economy. Finding sufficient oil indigenously was a national security priority of the highest order.
Scientists at the Institute of the Physics of the Earth of the Russian Academy of Sciences and the Institute of Geological Sciences of the Ukraine Academy of Sciences began a fundamental inquiry in the late 1940’s: where does oil come from?
In 1956, Prof. Vladimir Porfir’yev announced their conclusions: ‘Crude oil and natural petroleum gas have no intrinsic connection with biological matter originating near the surface of the earth. They are primordial materials which have been erupted from great depths.’ The Soviet geologists had turned Western orthodox geology on its head. They called their theory of oil origin the ‘a-biotic’ theory—non-biological—to distinguish from the Western biological theory of origins.
If they were right, oil supply on earth would be limited only by the amount of hydrocarbon constituents present deep in the earth at the time of the earth’s formation. Availability of oil would depend only on technology to drill ultra-deep wells and explore into the earth’s inner regions. They also realized old fields could be revived to continue producing, so called self-replentishing fields. They argued that oil is formed deep in the earth, formed in conditions of very high temperature and very high pressure, like that required for diamonds to form. ‘Oil is a primordial material of deep origin which is transported at high pressure via ‘cold’ eruptive processes into the crust of the earth,’ Porfir’yev stated. His team dismissed the idea that oil is was biological residue of plant and animal fossil remains as a hoax designed to perpetuate the myth of limited supply.
The Soviets then started to tailor their oil-explorations accordingly:
Following their a-biotic or non-fossil theory of the deep origins of petroleum, the Russian and Ukrainian petroleum geophysicists and chemists began with a detailed analysis of the tectonic history and geological structure of the crystalline basement of the Dnieper-Donets Basin. After a tectonic and deep structural analysis of the area, they made geophysical and geochemical investigations.
A total of sixty one wells were drilled, of which thirty seven were commercially productive, an extremely impressive exploration success rate of almost sixty percent. The size of the field discovered compared with the North Slope of Alaska. By contrast, US wildcat drilling was considered successful with a ten percent success rate. Nine of ten wells are typically “dry holes.”...
While the American oil multinationals were busy controlling the easily accessible large fields of Saudi Arabia, Kuwait, Iran and other areas of cheap, abundant oil during the 1960’s, the Russians were busy testing their alternative theory. They began drilling in a supposedly barren region of Siberia. There they developed eleven major oil fields and one Giant field based on their deep ‘a-biotic’ geological estimates. They drilled into crystalline basement rock and hit black gold of a scale comparable to the Alaska North Slope.
They then went to Vietnam in the 1980s and offered to finance drilling costs to show their new geological theory worked. The Russian company Petrosov drilled in Vietnam’s White Tiger oilfield offshore into basalt rock some 17,000 feet down and extracted 6,000 barrels a day of oil to feed the energy-starved Vietnam economy. In the USSR, a-biotic-trained Russian geologists perfected their knowledge and the USSR emerged as the world’s largest oil producer by the mid-1980’s.
With the fall of the Iron Curtain the Russian oil-theory became far more available to scientists and lay people in the western world. Enthusiastically embracing free-market doctrines in the 1990s the Russian oil experts initially offered to share their expertise with the western world. But they were rebuffed in their overtures.
Obviously a theory which contradicts the scarcity myth would cut into the profits of the western oil-corporations.
The Russian oil-companies at home, however, kept on working the same way they had done for nearly half a century. Well after the dissolution of the USSR, in the early 1990’s, they went on using the a-biotic petroleum theory
to drill for oil and gas in a region believed for more than forty-five years, to be geologically barren—the Dnieper-Donets Basin in the region between Russia and Ukraine.
And while the well-paid scientists of the western oil-companies rejected the theory, others did not. Raymond J. Learsy quotes the western proponents of the abiotic oil-theory in the Huffington Post:
The modern Russian-Ukrainian theory of deep, abiotic petroleum origins recognizes that petroleum is a primordial material of deep origin which has been erupted into the crust of the Earth. In short, and bluntly, petroleum is not a "fossil fuel" and has no intrinsic connection with dead dinosaurs (or any other biological detritus) "in the sediments" (or anywhere else)...
The modern Russian-Ukrainian theory of petroleum is based upon rigorous scientific reasoning, consistent with the laws of physics and chemistry, as well as upon extensive geological observation, and rests squarely in the mainstream of modern physics and chemistry, from which it draws its provenance.
Much of the modern Russian theory of deep, abiotic petroleum genesis developed from the sciences of chemistry and thermodynamics, and accordingly the modern theory has steadfastly held as a central tenet that the generation of hydrocarbons must conform to the general laws of chemical thermodynamics, - as must likewise all matter.
In such respect, modern Russian-Ukrainian petroleum science contrasts strongly to what are too often passed off as "theories" in the field of geology in Britain and the U.S.A.
The wall western multinational oil-companies had put up against scientifically based research to save their scarcity paradigm is obviously crumbling as was to be expected at least since the fall of the Iron Wall. More and more western scientific research supporting the long established and well tested Russian theories is now being published, as in the right-wing WorldNetDaily, which cites geologist and researcher Giora Proskurowski who, in a study published in Science Magazine
presented new evidence supporting the abiotic theory for the origin of oil...
While organic theorists have posited that the material required to produce hydrocarbons in sedimentary rock came from dinosaurs and ancient forests, more recent argument have suggested living organisms as small as plankton may have been the origin.
The abiotic theory argues, in contrast, that hydrocarbons are naturally produced on a continual basis throughout the solar system, including within the mantle of the earth. The advocates believe the oil seeps up through bedrock cracks to deposit in sedimentary rock. Traditional petro-geologists, they say, have confused the rock as the originator rather than the depository of the hydrocarbons....
Lost City is a hypothermal field some 2,100 feet below sea level that sits along the Mid-Atlantic Ridge at the center of the Atlantic Ocean, noted for strange 90 to 200 foot white towers on the sea bottom.
In 2003 and again in 2005, Proskurowski and his team descended in a scientific submarine to collect liquid bubbling up from Lost City sea vents.
Proskurowski found hydrocarbons containing carbon-13 isotopes that appeared to be formed from the mantle of the Earth, rather than from biological material settled on the ocean floor.
Carbon 13 is the carbon isotope scientists associate with abiotic origin, compared to Carbon 12 that scientists typically associate with biological origin.
Proskurowski argued that the hydrocarbons found in the natural hydrothermal fluids coming out of the Lost City sea vents is attributable to abiotic production by Fischer-Tropsch, or FTT, reactions.
The Fischer-Tropsch equations were first developed by Nazi scientists who created methodologies for producing synthetic oil from coal.
"Our findings illustrate that the abiotic synthesis of hydrocarbons in nature may occur in the presence of ultramafic rocks, water and moderate amounts of heat," Proskurowski wrote.
The study also confirmed a major argument of Cornell University physicist Thomas Gold, who argued in his book "The Deep Hot Biosphere: The Myth of Fossil Fuels" that micro-organisms found in oil might have come from the mantle of the earth where, absent photosynthesis, the micro-organisms feed on hydrocarbons arising from the earth's mantle in the dark depths of the ocean floors.
Another piece of evidence for the abiotic origin of oil, are several experimental studies done recently:
Alexander Goncharov, a geophysicist at the Carnegie Institution ()
and his colleagues in Russia and Sweden have experimentally shown for the first time that ethane and heavier hydrocarbons can be produced under the pressure and temperature conditions of the upper mantle, the slightly viscous layer of the earth directly below the crust. Their research was published () in Nature Geoscience.
"Our results provide a link which was previously missing or was doubtful because of a lack of in situ measurements ... for the upper mantle conditions," Goncharov said. "Thus, our work suggests there is a possibility for the [abiogenic] oil formation in the deep earth and that there is a potential to find more oil fields than expected if one assumes that oil could be formed only biogenically."
The researchers used a diamond anvil cell and a laser heat source to subject methane -- a primary component of natural gas -- to conditions that mimic the earth at 40 to 95 miles deep...................
Under those conditions, the methane reacted and formed petrochemical feedstock ethane and propane and butane, which are used as fuels, as well as molecular hydrogen and graphite. When the ethane was subjected to the same conditions, it formed methane, suggesting heavier hydrocarbons could exist deep under the earth's surface.
Barry Katz, a geochemist at Chevron Corp., agreed.
"I don't disagree with the idea," Katz said. "I disagree with the idea of commercial quantities. There's no question that it's coming out of the system. However, it's not coming out in commercial quantities."
Katz is acting like a true corporate hack. Russian, Ukrainian and Vietnamese oil producers have proved that there is indeed oil to be found at great depth and in commercial quantities.
Did you know, that the “Human caused Global Warming” hypothesis didn´t originate in the 1980s, but actually in the 1880s? Although, until the late 1970s, the hypothesis was considered “a curiosity”, since it contradicted observed events.
Did you further know, that at first this hypothesis wasn´t publicly promoted by scientists or even environmentalists, but by a UN ambassador and a very ambitious British Lady politician?
It’s snowing in April. Ice is spreading in Antarctica. The Great Barrier Reef is as healthy as ever. And that’s just the news of the past week. Truly, it never rains but it pours – and all over our global warming alarmists.
Time’s up for this absurd scaremongering. The fears are being contradicted by the facts, and more so by the week.
- wrote Andrew Bolt in the Australian Herald Sun last April.
Then he goes on to debunk many of the main claims most “Global Warming” (renamed “Climate Change”) believers will cite in public:
-like the claim that
the earth is rapidly warming at the moment.
The facts, however, are
that according to data from Britain’s Hadley Centre, NASA’s Aqua satellite and the US National Climatic Data Centre
the fall in temperatures from just 2002 (until 2009) has already wiped out half the warming our planet experienced last century.
(See also: Climate Sensitivity Reconsidered)
-or the claim that
the polar ice is rapidly melting.
The facts, however, are
that a British Antarctic Survey, working with NASA, last (April) confirmed
ice around Antarctica has grown 100,000 sq km each decade for the past 30 years.
-or the claim, that
the oceans are warming up
The facts, however, are
according to Josh Willis, of NASA’s Jet Propulsion Laboratory who evaluated
a five years study (done using) a network of 3175 automated bathythermographs deployed in the oceans by the Argo program, a collaboration between 50 agencies from 26 countries:
“There has been a very slight cooling”…
-or the claim that
sea-levels are rising dramatically.
The facts, however, are
according to the Jason-1 satellite mission monitored by the University of Colorado, that
for almost three years, the seas have stopped rising,
-or the claim,
that world-wide devastating storms (cyclones) are getting worse.
The facts, however, are
according to Ryan Maue of Florida State University, who
recently measured the frequency, intensity and duration of all hurricanes and cyclones to compile an Accumulated Cyclone Energy Index.()
The energy index is at its lowest level for more than 30 years.
-or the absolutely ridiculous claim by World Vision boss Tim Costello that Asia was a “region, thanks to climate change, that has far more cyclones, tsunamis, droughts”.
The facts are
(besides that Tsunamis are caused by earthquakes)
according to a 2006 study by Indur Goklany, who represented the US at the Intergovernmental Panel on Climate Change:
“There is no signal in the mortality data to indicate increases in the overall frequencies or severity of extreme weather events, despite large increases in the population at risk.”
Most of the myths, which are now slowly being debunked by scientists through intensive research, have once been created by “scientists”.
The United Nations’ Intergovernmental Panel on Climate Change (IPCC) has for several decades now employed “scientists” who claim
that human activities are responsible for nearly all earth’s recorded warming during the past two centuries.
writes David R. Legates in “Breaking the “Hockey Stick”
A widely circulated image used by the IPCC dramatically depicting these temperature trends resembles a hockey stick with three distinct parts: a flat “shaft” extending from A.D. 1000 to 1900, a “blade” shooting up from A.D. 1900 to 2000, and a range of uncertainty in temperature estimates that envelops the shaft like a “sheath.”
This image was produced by Michael Mann, Ray Bradley and Malcolm Hughes
(other colleagues working with Mann on his subsequent “climate change” research-papers were Philip D. Jones and Gavin Schmidt)…..
However, five independent research groups have uncovered problems with the underlying reconstructions by Mann and his colleagues in their 1998 and 1999 work that have persisted through his most recent collaborative efforts, calling into question all three components of the “hockey stick.”…
Mann and Jones indicate that globally- and hemispherically-averaged air temperatures from A.D. 200 to 1900 were nearly constant. Missing from their timeline, however, are the widely recognized Medieval Warm Period (about A.D. 800 to 1400) and the Little Ice Age (A.D. 1600 to 1850).
Most proxy records from around the globe show these climatic events, as Willie Soon, Sallie L. Baliunas and I concluded in a 2003 paper published in Energy and the Environment.
For instance:
* In such widely disparate regions as Argentina, Chile, southern Peru, southern Africa and northern China, records indicate a marked warming at the beginning of the last millennium followed by extreme cold during the middle centuries.
* Historical proxies for temperature – such as tree rings, ice cores and bore holes – in New Zealand, Australia and California also confirm widespread, significant warming and cooling trends…..
(Scientists) Stephen McIntyre and Ross McKitrick..().. contend that Mann and his colleagues in their 1998 and 1999 papers unjustifiably truncated or extrapolated trends from source data, used obsolete data, made incorrect calculations, and associated data sets with incorrect geographical locations….
More recently,(scientists) David Chapman, Marshall Bartlett and Robert Harris identified methodological problems in a 2003 Geophysical Research Letters study by Mann and G. Schmidt.
Specifically, Mann and Schmidt eliminated specific proxy records (data from bore holes) they thought were inaccurate. Chapman et al. showed that Mann and Schmidt had unjustifiably excluded the bore-hole data and concluded that their methods were “just bad science” and that they presented a “selective and inappropriate presentation” of results..….
Jan Esper, David Frank and Robert Wilson () further argued that the fatal flaw with Mann, Bradley and Hughes’ temperature reconstruction is its incorrect representation of longer-term trends.
They observed that the statistical methods used inappropriately remove trends over long time periods..…
But the meteoric rise of the “Global Warming – bad science” into a global dogma and from there into the legislation of, by now, most nations on earth, did not originate with scientists at all.
Richard Courtney, founding member of the European Science and Environment Forum and technical adviser to several members of the British Parliament as well as to some British members of the European Parliament wrote the 1999 article “Global Warming: How It All Began” in which he explores the history of this particular pseudo-science.
The hypothesis of man-made global warming has existed since the 1880s. It was an obscure scientific hypothesis that burning fossil fuels would increase CO2 in the air to enhance the greenhouse effect and thus cause global warming. Before the 1980s this hypothesis was usually regarded as a curiosity because the nineteenth century calculations indicated that mean global temperature should have risen more than 1°C by 1940, and it had not.
Then, in 1979, Mrs. Margaret Thatcher (now Lady Thatcher) became Prime Minister of the UK, and she elevated the hypothesis to the status of a major international policy issue…..
Courtney goes on to explain, that in 1979 Thatcher actually did not yet have a much stature abroad or at home. In Britain her only claim to fame as an Education Secretary in the Heath administration that collapsed in 1974 was as ‘Milk Snatcher Thatcher’ due to her policy of ending distribution of milk to British school-children.
It was Britain´s Ambassador to the United Nations, Sir Crispin Tickell, who suggested she should use the issue of “Global Warming” as a means to gain national and international credibility.
He also suggested, that Thatcher with her education, a degree in chemistry, could easily win debates on scientific subjects, since most other politicians were “scientifically illiterate” .
As an aside, there are quite interesting parallels between the British “Iron Lady” of the 1980s and the German “Iron Lady” of today.
Like Thatcher, Angela Merkel was not widely known before she was put into office by her party.
(Why they chose her is rather a mystery. Merkel was actually loosing votes for her conservative Christian Democratic Party, with her pro-Iraq-war position, when practically the whole German nation was opposed to it, and the seeming inability to produce a single genuine smile reaching the eyes, which gave her a definite lack of public charisma.)
Like Thatcher, Merkel also has degree in science, a doctorate (Dr. rer. nat.) for her thesis on quantum chemistry.
Like Thatcher, Merkel is busy cutting down on workers´ rights and on the German social safety net. Merkel, the pro-corporate and anti-union German chancellor, is also a strong supporter of carbon tax legislation, both in Germany and in Europe, as well as a mandated global reduction in CO2 to combat “Global Warming”.
Margaret Thatcher went for Ambassador Tickell´s “Global Warming” to strengthen her prominence. Her Conservative Party went for it, to weaken the British coal-miners labor union. “Global Warming” would then give the nuclear industry a push, since now coal-fueled power-stations could be replaced by nuclear power-stations for “environmental” reasons. Britain´s nuclear industry urgently needed that kind of a push since the Three Mile Island accident had damaged public confidence in nuclear technology.
The other rationale for why nuclear power should be used instead of coal, the alleged cost benefit, was being destroyed, when privatization of the Britain’s electricity supply industry exposed that British nuclear power was produced at four times the cost of electricity produced in coal-fueled power plants.
And, writes Courtney,
the Conservative Party wanted a large UK nuclear power industry for another reason. That industry’s large nuclear processing facilities were required for the UK’s nuclear weapons programme and the opposition Labour Party was then opposing the Conservative Party’s plans to upgrade the UK’s nuclear deterrent with Trident missiles and submarines.
Subsequently the “Global Warming” issue was promoted by large government grants and funds. Scientists fell in line through peer pressure and for fear of losing their research funding and not because they actually were convinced by the argument.
In 1992 Greenpeace International conducted a survey of the world’s 400 leading climatologists. Greenpeace had hoped to publicize the results of that survey in the run-up to the Rio summit, but when they completed the survey, they gave very little publicity to its results. In response to the survey, only 15 climatologists were willing to say they believed in global warming, although all climatologists rely on it for their employment.
Though not all scientists sold out their integrity for funds:
Following the Leipzig Climate Conference in November 1995,
the Leipzig Declaration disputes the IPCC assertions about man-made global warming. It was drafted and has been signed by over 1,500 scientists from around the world.
Today the “Global Warming” and “Climate Protection” issue is being sold to the public as being a liberal or even a left-wing concern. Forgotten is it´s very much right-wing, anti-union corporate and militarist origin.
Green and environmental minded people also seem to have forgotten the connection between “Global Warming” and the nuclear power-industry, and anti-war activists never seem to register, that “Global Warming” was actually used to create more weapons of mass-destruction.
The fact that the “Global Warming” or “Climate Change” issue isn´t really about environmental protection is clearly shown, for instance, by the US Climate Change Bill, promoted by the new US Obama Administration and his “progressive” Democratic Party.
Atheo News writes about the bill in Dr. Chu’s Energy Bait and Switch
The congressional mandates “are very weak and really will not require any additional renewables beyond what states already are doing,” says Mark Sinclair of Clean Energy States Alliance. “It will be meaningless. It’s just a gesture.”
Marchant Wentworth of the Union of Concerned Scientists came to a similar conclusion, seeing that absolute requirements for renewables, after allowances, would be as low as 8 percent of total electric power generation for each utility. This is hardly a challenge for most utilities in a nation that in 2006 generated almost 10 percent of its electricity from renewable sources, including hydro power.
In other words, the proposed renewable sources requirements amount to little more than shallow symbolism. The current public subsidies and underwriting for nuclear power already make the nuclear choice more economically viable for utilities to maximize return on utility investment. The legislation is, in fact, a thinly veiled mandate for building new nuclear power plants, or to increase output from existing ones.
Republicans are offering a different plan that simply calls for building 100 new nuclear plants within the next twenty years.
These plans mirror similar policies across the Atlantic where the government in Britain is rushing a new generation of nuclear power plants, with a goal to begin construction within four years. Both ‘energy independence’ and climate change were cited as rationales by policy makers there as well.
Obama’s Secretary of Energy, Dr. Steven Chu, from Lawrence Berkeley National Laboratory, is a staunch advocate of nuclear power, citing it as “essential” due to global warming while at the same time ignoring the carbon emissions of the “nuclear cycle” that are produced from the mining, milling, enrichment, fuel fabrication and disposal of spent fuel. The new appointee described nuclear power as “carbon free” at his confirmation in January.
While the “Global Warming” or “Climate Change” skeptics (sometimes called “deniers”) are often accused of being paid assets of the oil industry, the economical and political advantages of the “Global Warming” pseudo-science for the nuclear power industry cannot be denied any longer.
There is, however, an even stronger and even less publicly known connection of the “Global Warmers” with another industry, as Aletho News reports:
The new Democratic climate change bill , introduced in the Senate by Barbara Boxer and John Kerry, contains more advantages for nuclear power than even the legislation which passed in the House of Representatives last June. Included are waste management, financing and loan guarantee arrangements, regulatory risk insurance, as well as R&D and training programs. Joseph Lieberman is understood to be preparing the fine print for the bill which is presently “short on details”…..
As with other major pieces of legislation under consideration by the current Congress, the financial industry is a central actor, venture capitalists “are ready to pour multibillions of dollars into clean energy” if Congress passes “some kind of bill that talks about energy independence and climate change,” Boxer said.
How deep the connection between the “Climate Change” movement and the financial industry actually is, and how important the matter is for the elite of this industry, and how this even is connected to the issue of Iran´s civilian nuclear energy program, will be the subject of part two of this report.
Part Two:
Where "Global Warming" and "Peak Oil" meet
That place, of course, is the world´s financial market.
"Human Caused Climate Change" is a financial scam, so is the "Peak Oil" paradigm of catastrophic energy shortages in the near future.
Oil and natural gas are not scarce, but actually abundant energy resources. They are also most likely of non-biological origin, as Russian scientists and oil companies have shown for over 50 years.
While the myth of "Global Warming" is used to create new revenues for the financial elites, the myth of a limited supply of "fossil fuels" had been used for creating large profits in the past.
The western financial elites hope to secure those profits in the future by regulating the use of oil, gas and coal through internationally agreed upon CO2 reduction measures, carbon trade agreements and by monopolizing tomorrow´s nuclear energy market. This is one reason why Iran´s civilian nuclear energy program is being so severely opposed by all the governments of the western world that seek to dominate export markets for nuclear installations from India to Brazil. A primary reason also is Israel's demand that it retain technological superiority.
As we have seen in the last post, the theory of "Catastrophic Human Caused Global Warming" neither originated from a large group of scientists nor from environmental grass-roots organizations. Instead it was a long discarded 19th century hypothesis, which was taken out of the dustbin and then proposed by the 1979 British UN Ambassador, who "tickled" the ambition-streak of Margaret Thatcher, the British Prime Minister at the time.
We also saw, that the main argument for a human caused Climate Change, the so-called "Hockey-Stick", has been scientifically discredited for years.
Using mostly official IPCC charts and other research done by the UN "Global Warming" scientists themselves, Dr.David Evans of Science Speak points out that, while there is evidence for some warming of the planet in the last century, there is indeed
No Evidence
that carbon dioxide emissions are the main cause of the recent global warming
And with this conclusion Evans stands in agreement with over 650 leading scientists who, while attending the UN Climate Conference in Poland,
scoffed at doomsday reports of man-made global warming - labeling them variously a lie, a hoax and part of a new religion.
Those international scientists are then quoted in a US-Senate EPW Minority report.
But in spite of more and more counter arguments by the scientific community, especially from climatologists, the "Climate Change" bills, mandating carbon reduction for individuals and industries are rammed through practically all parliaments in the industrialized world.
We once again have to look at the money trail to explain the reasons for this paradox:
The New York Times, reported on November 12, 2008
Goldman Sachs Buys Into Carbon Offsets
Goldman Sachs has recently bought pieces of two carbon-offset companies, in the latest sign of investment banks’ interest in the area......
Carbon offsets are projects that reduce greenhouse gas emissions — thus potentially counterbalancing a rise in emissions elsewhere. Planting trees are the most obvious offset; but other examples include capturing methane (a potent greenhouse gas) from a coal mine, or undertaking a qualified energy-efficiency project. Offsets are used in the European carbon dioxide cap-and-trade system, but have been slow to catch on in this country, where carbon trading is largely voluntary.
And on February 26, 2008 Chris Morrison from the Green Beat branch of the investment website Venture Beat writes:
Will carbon-trading happen? Goldman hopes so, backs APX
APX, a Silicon Valley company that certifies carbon and emissions offset certificates, and which is well-placed to support carbon-trading markets when they emerge, has gotten backing from Goldman Sachs in a $14 million investment, VentureBeat has learned.
Carbon trading is a growing business that could someday come to resemble the world’s largest financial markets.
Today’s emissions markets are generally small and fragmented. In regional U.S. energy markets, utilities are already required to buy electricity from alternative energy sources like geothermal, solar or wind. To prove their use of alternative energy, they’re required to file a certificate tracking their acquisition of the energy units. So this is the beginning of a “transfer” regime that could grow into more.
Meantime, carbon offsetting markets, that corporations buy credits from, are currently voluntary, but in anticipation of future government regulation, they often require similar certifying schemes. However, the source of offsets can vary widely, from alternative energy generation to tree planting projects.
APX acts as part of the intermediary chain between buyer and seller, doing the work of tracking serial numbers on these certificates and the accounts they go into. It’s not glamorous, but having an efficient, scalable back-end will be one of the requirements for building a multi-billion dollar market, as emissions trading may well become.
As today’s small, scattered emissions trading markets grow, they may come to resemble the complex business and regulatory ecosystems of the futures and equities markets, which include various behind-the-scenes businesses similar to APX.
Another indicator that some very serious businesses are becoming involved is one of the new investors in the company’s latest funding: Goldman Sachs, a heavyweight in the New York financial markets.
The largest financial corporation in the world buys into both the "carbon-offset" as well as into the "carbon-trading" market, which is expected to become a multi-billion dollar business.
The reduction of the use of hydro-carbon energy will make large profits to be funneled once again into the financial markets, which then will substitute for the profits the oil companies, in cohorts with the oil producing countries, used to make. While energy demand is fairly inelastic, a generalized increase in end user cost will enrich the well placed.
Why, if "human caused climate change" is a scam, is this substitution necessary?
Because slowly but certainly the knowledge emerges, that these large oil-profits of the past had also been based on a scam - the scam of "resource depletion" caused by over-exploitation of resources due to "exponential global population growth".
The myth of" increasing and catastrophic resource shortages" was initially promoted by the Rockefeller associated "Club of Rome".
Nowadays this scam is most often called the "Peak Oil" problem.
The "Peak Oil" propagandists tell us that oil, as well as natural gas-production, has either already peaked or will in the very near future. After reaching the peak of production a fast decline would make "cheap energy" increasingly scarce. As a consequence, the global economy, dependent on "cheap energy", would contract and eventually crash. This would then cause wide-spread devastation for most of us. And for billions of people all over the globe it would cause constant food-shortages and even starvation.
The catastrophic consequences to global food-production by shortages of oil and gas as energy resources is the first false paradigm promoted by the "Peak Oil" myth.
The second one is, that the world´s economic production is vitally dependent on energy being "cheap".
The reality is, that it isn´t the world´s real, physical economy but the global financial markets which are dependent on energy-resources being "cheap". For today´s actual consumers of energy, for private, industrial or public consumers, oil and gas aren´t actually that "cheap".
It is the large difference between production costs and consumer prices of oil and gas, which for a long time have kept the snake-oil sellers of the big financial corporations afloat. This high price/cost difference in oil production in the past was forced unto global consumers by the monopoly power the large oil-corporations had on the business and the coercive power their main shareholders had on governments all over the world.
The same "monopoly" game is now being started with nuclear energy production, as Dutch researcher Rudo de Ruijter points out in
US-Iran: Raid on nuclear fuel market
In the background of the political joust about Iran, a few countries are reshaping the world. They are taking possession of the global nuclear fuel market. New IAEA regulations should keep newcomers away.
The US, UK, France, Germany, Russia, China and Japan will become the world’s nuclear filling stations. Under the auspices of the IAEA these suppliers will dictate the rules, the prices and the currencies they want to get paid in.
Iran has become the pretext and test case for their plans.
However, like the "man-made Global Warming" myth, the "Peak-Oil" myth is now being contradicted by the facts, which even part of the mainstream media can no longer ignore:
On January 18, 2008 the British Times reports:
World not running out of oil, say experts
A landmark study of more than 800 oilfields by Cambridge Energy Research Associates (Cera) has concluded that rates of decline are only 4.5 per cent a year, almost half the rate previously believed, leading the consultancy to conclude that oil output will continue to rise over the next decade.
Peter Jackson, the report's author, said: “We will be able to grow supply to well over 100million barrels per day by 2017.” Current world oil output is in the region of 85million barrels a day.
But not only do western experts now concede, that there is far more oil in the ground, than they have previously admitted to, but there are also a growing number of western geologists who finally are starting to challenge the 18th century theory of "fossil" fuel, something the Russians have done over half a century ago.
William Engdahl writes about this in his "Confessions of an “ex” Peak Oil Believer"
Engdahl explains that for the Soviets it actually was "Necessity" which became "the mother of invention"
In the 1950’s the Soviet Union faced ‘Iron Curtain’ isolation from the West. The Cold War was in high gear. Russia had little oil to fuel its economy. Finding sufficient oil indigenously was a national security priority of the highest order.
Scientists at the Institute of the Physics of the Earth of the Russian Academy of Sciences and the Institute of Geological Sciences of the Ukraine Academy of Sciences began a fundamental inquiry in the late 1940’s: where does oil come from?
In 1956, Prof. Vladimir Porfir’yev announced their conclusions: ‘Crude oil and natural petroleum gas have no intrinsic connection with biological matter originating near the surface of the earth. They are primordial materials which have been erupted from great depths.’ The Soviet geologists had turned Western orthodox geology on its head. They called their theory of oil origin the ‘a-biotic’ theory—non-biological—to distinguish from the Western biological theory of origins.
If they were right, oil supply on earth would be limited only by the amount of hydrocarbon constituents present deep in the earth at the time of the earth’s formation. Availability of oil would depend only on technology to drill ultra-deep wells and explore into the earth’s inner regions. They also realized old fields could be revived to continue producing, so called self-replentishing fields. They argued that oil is formed deep in the earth, formed in conditions of very high temperature and very high pressure, like that required for diamonds to form. ‘Oil is a primordial material of deep origin which is transported at high pressure via ‘cold’ eruptive processes into the crust of the earth,’ Porfir’yev stated. His team dismissed the idea that oil is was biological residue of plant and animal fossil remains as a hoax designed to perpetuate the myth of limited supply.
The Soviets then started to tailor their oil-explorations accordingly:
Following their a-biotic or non-fossil theory of the deep origins of petroleum, the Russian and Ukrainian petroleum geophysicists and chemists began with a detailed analysis of the tectonic history and geological structure of the crystalline basement of the Dnieper-Donets Basin. After a tectonic and deep structural analysis of the area, they made geophysical and geochemical investigations.
A total of sixty one wells were drilled, of which thirty seven were commercially productive, an extremely impressive exploration success rate of almost sixty percent. The size of the field discovered compared with the North Slope of Alaska. By contrast, US wildcat drilling was considered successful with a ten percent success rate. Nine of ten wells are typically “dry holes.”...
While the American oil multinationals were busy controlling the easily accessible large fields of Saudi Arabia, Kuwait, Iran and other areas of cheap, abundant oil during the 1960’s, the Russians were busy testing their alternative theory. They began drilling in a supposedly barren region of Siberia. There they developed eleven major oil fields and one Giant field based on their deep ‘a-biotic’ geological estimates. They drilled into crystalline basement rock and hit black gold of a scale comparable to the Alaska North Slope.
They then went to Vietnam in the 1980s and offered to finance drilling costs to show their new geological theory worked. The Russian company Petrosov drilled in Vietnam’s White Tiger oilfield offshore into basalt rock some 17,000 feet down and extracted 6,000 barrels a day of oil to feed the energy-starved Vietnam economy. In the USSR, a-biotic-trained Russian geologists perfected their knowledge and the USSR emerged as the world’s largest oil producer by the mid-1980’s.
With the fall of the Iron Curtain the Russian oil-theory became far more available to scientists and lay people in the western world. Enthusiastically embracing free-market doctrines in the 1990s the Russian oil experts initially offered to share their expertise with the western world. But they were rebuffed in their overtures.
Obviously a theory which contradicts the scarcity myth would cut into the profits of the western oil-corporations.
The Russian oil-companies at home, however, kept on working the same way they had done for nearly half a century. Well after the dissolution of the USSR, in the early 1990’s, they went on using the a-biotic petroleum theory
to drill for oil and gas in a region believed for more than forty-five years, to be geologically barren—the Dnieper-Donets Basin in the region between Russia and Ukraine.
And while the well-paid scientists of the western oil-companies rejected the theory, others did not. Raymond J. Learsy quotes the western proponents of the abiotic oil-theory in the Huffington Post:
The modern Russian-Ukrainian theory of deep, abiotic petroleum origins recognizes that petroleum is a primordial material of deep origin which has been erupted into the crust of the Earth. In short, and bluntly, petroleum is not a "fossil fuel" and has no intrinsic connection with dead dinosaurs (or any other biological detritus) "in the sediments" (or anywhere else)...
The modern Russian-Ukrainian theory of petroleum is based upon rigorous scientific reasoning, consistent with the laws of physics and chemistry, as well as upon extensive geological observation, and rests squarely in the mainstream of modern physics and chemistry, from which it draws its provenance.
Much of the modern Russian theory of deep, abiotic petroleum genesis developed from the sciences of chemistry and thermodynamics, and accordingly the modern theory has steadfastly held as a central tenet that the generation of hydrocarbons must conform to the general laws of chemical thermodynamics, - as must likewise all matter.
In such respect, modern Russian-Ukrainian petroleum science contrasts strongly to what are too often passed off as "theories" in the field of geology in Britain and the U.S.A.
The wall western multinational oil-companies had put up against scientifically based research to save their scarcity paradigm is obviously crumbling as was to be expected at least since the fall of the Iron Wall. More and more western scientific research supporting the long established and well tested Russian theories is now being published, as in the right-wing WorldNetDaily, which cites geologist and researcher Giora Proskurowski who, in a study published in Science Magazine
presented new evidence supporting the abiotic theory for the origin of oil...
While organic theorists have posited that the material required to produce hydrocarbons in sedimentary rock came from dinosaurs and ancient forests, more recent argument have suggested living organisms as small as plankton may have been the origin.
The abiotic theory argues, in contrast, that hydrocarbons are naturally produced on a continual basis throughout the solar system, including within the mantle of the earth. The advocates believe the oil seeps up through bedrock cracks to deposit in sedimentary rock. Traditional petro-geologists, they say, have confused the rock as the originator rather than the depository of the hydrocarbons....
Lost City is a hypothermal field some 2,100 feet below sea level that sits along the Mid-Atlantic Ridge at the center of the Atlantic Ocean, noted for strange 90 to 200 foot white towers on the sea bottom.
In 2003 and again in 2005, Proskurowski and his team descended in a scientific submarine to collect liquid bubbling up from Lost City sea vents.
Proskurowski found hydrocarbons containing carbon-13 isotopes that appeared to be formed from the mantle of the Earth, rather than from biological material settled on the ocean floor.
Carbon 13 is the carbon isotope scientists associate with abiotic origin, compared to Carbon 12 that scientists typically associate with biological origin.
Proskurowski argued that the hydrocarbons found in the natural hydrothermal fluids coming out of the Lost City sea vents is attributable to abiotic production by Fischer-Tropsch, or FTT, reactions.
The Fischer-Tropsch equations were first developed by Nazi scientists who created methodologies for producing synthetic oil from coal.
"Our findings illustrate that the abiotic synthesis of hydrocarbons in nature may occur in the presence of ultramafic rocks, water and moderate amounts of heat," Proskurowski wrote.
The study also confirmed a major argument of Cornell University physicist Thomas Gold, who argued in his book "The Deep Hot Biosphere: The Myth of Fossil Fuels" that micro-organisms found in oil might have come from the mantle of the earth where, absent photosynthesis, the micro-organisms feed on hydrocarbons arising from the earth's mantle in the dark depths of the ocean floors.
Another piece of evidence for the abiotic origin of oil, are several experimental studies done recently:
Alexander Goncharov, a geophysicist at the Carnegie Institution ()
and his colleagues in Russia and Sweden have experimentally shown for the first time that ethane and heavier hydrocarbons can be produced under the pressure and temperature conditions of the upper mantle, the slightly viscous layer of the earth directly below the crust. Their research was published () in Nature Geoscience.
"Our results provide a link which was previously missing or was doubtful because of a lack of in situ measurements ... for the upper mantle conditions," Goncharov said. "Thus, our work suggests there is a possibility for the [abiogenic] oil formation in the deep earth and that there is a potential to find more oil fields than expected if one assumes that oil could be formed only biogenically."
The researchers used a diamond anvil cell and a laser heat source to subject methane -- a primary component of natural gas -- to conditions that mimic the earth at 40 to 95 miles deep...................
Under those conditions, the methane reacted and formed petrochemical feedstock ethane and propane and butane, which are used as fuels, as well as molecular hydrogen and graphite. When the ethane was subjected to the same conditions, it formed methane, suggesting heavier hydrocarbons could exist deep under the earth's surface.
Barry Katz, a geochemist at Chevron Corp., agreed.
"I don't disagree with the idea," Katz said. "I disagree with the idea of commercial quantities. There's no question that it's coming out of the system. However, it's not coming out in commercial quantities."
Katz is acting like a true corporate hack. Russian, Ukrainian and Vietnamese oil producers have proved that there is indeed oil to be found at great depth and in commercial quantities.
Tuesday, December 8, 2009
Tuesday, December 1, 2009
THE A.D.L. vs. FAITH AND FREEDOM
By Rabbi Nachum Shifren
November 30, 2009
NewsWithViews.com
How the ADL is working to destroy America
It is difficult to write about Jewish traitors, but I have the obligation to do so. My life as an American and a Jew is rooted in one miracle: individual liberty and freedom of speech and conscience. We are living in dangerous times, times when men of good will are afraid to speak out. There are some things you cannot say in America today.
I will say them anyway.
For years, I have noticed something curious about religion in America, Israel, and elsewhere. When I go into an establishment to pray, I notice how thick the carpet is. The gold and silver on doors and paneling's. The "honorees" abounding with their plaques and pictures adorning walls and halls. I have prayed in many different shuls (synagogues) throughout the world, and I admit a proclivity toward those humbler, more "hamish" (homey) environs, with the simple wood benches and plain floors.
For me, it is in a place surrounded by holy books, next to the Torah, with those dust-coated windows, that I find solace with the Creator of Heaven and Earth. No games here, no power trips — and you are only as good as your cleaving and yearning to be a part of His world. I reckon there's lots of folks out there who feel the same, regardless of their beliefs.
Our history as a people has been divided, roughly, into two camps.
There is one camp that stood at Mt. Sinai, witnessed great miracles, received an awesome legacy, and despite the most horrific of human travails — pogroms, inquisitions, crusades, and more — decided to hand down that legacy from generation to generation.
It is because of that meritorious Jewish tradition that I am here today and am able to write these words.
There is a second camp — a more sinister group, that has done more damage to the Jews and caused more murder and destruction than all of Israel's enemies combined. To this troika belong Jews and non-Jews, and our Jewish heritage has been irrevocably altered by this movement.
This second camp is about control of human beings. It holds a vision of a One World Order, together with Marx, Trotsky, and Lenin — an evil that, to date, has claimed nearly two hundred million souls.
With these international bandits and mind-control wizards stands the ADL (Anti-Defamation League). Now, if anyone else would say this, that person would be labeled an anti-Semite. But as anyone that knows me will tell you, I am a Jew who strives always to do good, give to charity, and am diligent in study and prayer. Of my many shortcomings, anti-Semitism is not one of them.
There are things that for a Jew, there is no excuse. One aspect is the unrelenting war waged by radical Islam against the Jewish people (they say they're not anti-Semitic, just anti-Zionist).
But far worse are those who aid and abet this satanic force. For the leftist control-freaks of the ADL, there cannot be a Land of Israel! That would mean they'd be out of a job! They thirst on dissention and division — anything that will drive up their stock. Their support from the outset of a two-state solution means the destruction of the Jewish homeland.
Period.
No amount of agreements with terror and those who support it, will buy peace. The ADL, in a very real sense, is anathema to the survival of the Jewish people. Moreover, they never cared about the survival of the Jewish People!
The ADL’s agenda is simple: anything that will increase their power and control is good. Anti-Semites could never have destroyed the Jewish people. Only Jews can destroy the Jewish People.
The entire world, including Christians of all faiths, knows and understands that there is only one people in the world that was given the Land of Israel as an eternal inheritance: the Jews. The only people in the world who rebel against this eternal truth is the ADL and their communist comrades and enablers. Why?
In order for there to be a ONE WORLD ORDER, man's spirit and soul must be brought low, be subjugated to the level of the beasts. This was the communist credo, to claim that we are no better than animals that must be controlled. G-d must be destroyed, faith debauched, and religion — ALL RELIGION — extinguished.
In this camp we find the ADL. Let's be clear: The ADL has nothing to do with Judaism, Jews, or Jewish Survival. It is a collection of communists, anarchists, Jewish 60's drop-outs, bitter about their nothing status and eager to spread their venom about a socialist paradise at which they believe only they can succeed. (The earlier Bolsheviks and Trotskyite's, they assure us, just didn't get it right.!)
It's more than interesting how Obama has surrounded himself with these same radical leftist rejects from the 60's. Interesting also, is how the ADL and the present administration are working hand in glove to make us safer with insane, counter-productive “Hate Crime” legislation.
Now, the ADL is on the warpath again, this time advocating for a federal data bank to be housed (with them?) in Washington, where each American can be monitored and pursued, for ever having said anything "hateful."
And what is the definition of "hateful," you ask? Simple, whatever the ADL dictates. And how, you'll ask can that possibly happen here in the land of the Free, the home of the Brave? Again, simple: just play the anti-Semitic race card, and you will have people tripping all over themselves to acquiesce to your every whim. The facts are:
not one Christian today in America dare read the Bible, with it’s exhortation against bestiality and homosexuality without looking over their collective shoulders to see if the ADL is monitoring.
So why would the ADL, an organization supposedly founded for the purpose of helping Jews in peril, be spending their capital railing and ranting about Christians and what they do in the privacy of their churches. Interesting, how the ADL could care less about groups like ACORN, ISLAMIC JIAHAD, HAMMAS, CAIR — could it be because they're people of "color?" Or maybe it's because they are necessary in their scheme of ONE WORLD ORDER, neutralizing the fabric of America, getting it ripe for a takeover in which the ADL can take part.
Why is the ADL, supposedly the "sentinel" of the Jewish people so disposed to the rights and whims of radical gay and lesbian groups? Is this the pervue of the ADL? The answer lies in one simple concept: power and control. What the Soviets could not do in Russia, the ADL will attempt to do to America.
Witness the ADL at work:
1- advocating federal statutes and punishment for just "saying" something negative about Gays, essentially making every Christian a law-breaker in America today.
2- storing thousands of files on suspected "haters," including names, addresses, and phone numbers to be shared with both local and federal police whenever these "haters" get out of hand by saying what they believe.
3- advocating massive censorship where media and films must pass a litmus test before being called "kosher"
4- proposing legislation for simply expressing "seed ideas" (Biblical in origin), concepts or utterances that “stimulate” or “cause friction” against targeted groups.
5- lobbying Canada to pass hate crime legislation: $5,000 misdemeanor, serving up to 2 years in prison.
6- working 24/7 for their new "messianic" legislation: HR 262, the “Hate Crimes Bill,” where the ADL will be positioned to establish a massive, pervasive and fascist bureaucracy that will monitor every single American and impose in this country Nazi Germany-style control — the ultimate vision of the leftist ADL.
The far-reaching consequences are: no church director will ever be able to utter the word of G-d! Is this not the communist “utopia” coming to fruition? Massive mind control about bias is even now, being established in education — inculcating our youth from kindergarten through college about politically correct speech. Churches that do not hire homosexuals will be closed down. Preachers will be jailed. Here in California, our insane legislature just passed such a bill, a bill that will fire faculty or expel students that make a slip of the tongue.
Isn't it amazing? We're not allowed to have the Ten Commandments in our schools. No "minute of prayer" allowed. No mention of G-d allowed. But plenty of mind control about how the White Christians have destroyed the earth and must be neutralized. The Day of the multiculturalists is here, aided and abetted by the ADL, using "hate speech" as the Trojan horse that will destroy our once-great America.
I find a certain peace in getting back to that earlier mention of the plain synagogue, permeated with an aura of stark truth and humility, the sometimes shaky rafters and squeaky doors giving testimony to a simplicity lending itself to truth and the eternal peace.
How this contrasts with the monstrous and ostentatious ADL building in New York! A skyscraper pointing to heaven, symbolically raising its accusing finger at the Master of the Universe. No, the tons of glass and concrete here cannot mask a horrifying lie and evil intent for this country.
I find myself having crossed the political Rubicon. As a conservative, passionate advocate of America's freedom for individual liberties and speech, I have become a pariah in the Jewish community. Who knows, maybe the ADL is monitoring this very message?! But one thing is clear: I stand on the shoulders of many great Americans who have given their lives for this great land. I will not shirk from my responsibility as an American, as a beneficiary of this grand and blessed legacy. I hope that my urgent words are heeded and that people will wake up about those alien forces threatening our very lives.
To all my friends throughout America: G-d bless you, and G-d bless America
Related Articles:
1- ADL Blasts "Paranoid" Right
© 2009 Nachum Shifren - All Rights Reserved
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Rabbi Shifren is a southern California native. He graduated from UC Santa Barbara with a degree in Spanish and German literature. He has been a language teacher in LA City schools since 1992. He is also fluent in Hebrew.
Rabbi Shifren received his ordination in Jerusalem in 1990 and is a talmudic scholar. Having lived in Israel for nearly a decade, he has been an observer and commentator of developments in Israel, the Israeli and foreign press, and the recent rise of Islamic Jihad.
He is also the dirctor of "surf and soul" surfcamp, where teens learn self-discipline, proper attitude, and physical fitness. A Malibu surfer since 1962, he is known universally as the surfing rabbi. Through his seminars and classes, he has taught thousand the challenge and thrill of wave riding and the postive aspects of the surfing life style.
Rabbi Shifren has declared his candidacy for the Calif. State Senate in 2010, and is the only candidate to openly pledge to oppose the advent of Sharia law in the United States. He is a tireless supporter of individual freedoms and preserving the distinctive greatness of America, her language, and culture. Known for his no-nonsense approach to education and prison reform, Rabbi Shifren is in his own class of patriotism and staunch conservative values.
Rev. Jesse Lee Petersen said: "If we had 10 more teachers like Rabbi Shifren, we could turn America around tomorrow.
November 30, 2009
NewsWithViews.com
How the ADL is working to destroy America
It is difficult to write about Jewish traitors, but I have the obligation to do so. My life as an American and a Jew is rooted in one miracle: individual liberty and freedom of speech and conscience. We are living in dangerous times, times when men of good will are afraid to speak out. There are some things you cannot say in America today.
I will say them anyway.
For years, I have noticed something curious about religion in America, Israel, and elsewhere. When I go into an establishment to pray, I notice how thick the carpet is. The gold and silver on doors and paneling's. The "honorees" abounding with their plaques and pictures adorning walls and halls. I have prayed in many different shuls (synagogues) throughout the world, and I admit a proclivity toward those humbler, more "hamish" (homey) environs, with the simple wood benches and plain floors.
For me, it is in a place surrounded by holy books, next to the Torah, with those dust-coated windows, that I find solace with the Creator of Heaven and Earth. No games here, no power trips — and you are only as good as your cleaving and yearning to be a part of His world. I reckon there's lots of folks out there who feel the same, regardless of their beliefs.
Our history as a people has been divided, roughly, into two camps.
There is one camp that stood at Mt. Sinai, witnessed great miracles, received an awesome legacy, and despite the most horrific of human travails — pogroms, inquisitions, crusades, and more — decided to hand down that legacy from generation to generation.
It is because of that meritorious Jewish tradition that I am here today and am able to write these words.
There is a second camp — a more sinister group, that has done more damage to the Jews and caused more murder and destruction than all of Israel's enemies combined. To this troika belong Jews and non-Jews, and our Jewish heritage has been irrevocably altered by this movement.
This second camp is about control of human beings. It holds a vision of a One World Order, together with Marx, Trotsky, and Lenin — an evil that, to date, has claimed nearly two hundred million souls.
With these international bandits and mind-control wizards stands the ADL (Anti-Defamation League). Now, if anyone else would say this, that person would be labeled an anti-Semite. But as anyone that knows me will tell you, I am a Jew who strives always to do good, give to charity, and am diligent in study and prayer. Of my many shortcomings, anti-Semitism is not one of them.
There are things that for a Jew, there is no excuse. One aspect is the unrelenting war waged by radical Islam against the Jewish people (they say they're not anti-Semitic, just anti-Zionist).
But far worse are those who aid and abet this satanic force. For the leftist control-freaks of the ADL, there cannot be a Land of Israel! That would mean they'd be out of a job! They thirst on dissention and division — anything that will drive up their stock. Their support from the outset of a two-state solution means the destruction of the Jewish homeland.
Period.
No amount of agreements with terror and those who support it, will buy peace. The ADL, in a very real sense, is anathema to the survival of the Jewish people. Moreover, they never cared about the survival of the Jewish People!
The ADL’s agenda is simple: anything that will increase their power and control is good. Anti-Semites could never have destroyed the Jewish people. Only Jews can destroy the Jewish People.
The entire world, including Christians of all faiths, knows and understands that there is only one people in the world that was given the Land of Israel as an eternal inheritance: the Jews. The only people in the world who rebel against this eternal truth is the ADL and their communist comrades and enablers. Why?
In order for there to be a ONE WORLD ORDER, man's spirit and soul must be brought low, be subjugated to the level of the beasts. This was the communist credo, to claim that we are no better than animals that must be controlled. G-d must be destroyed, faith debauched, and religion — ALL RELIGION — extinguished.
In this camp we find the ADL. Let's be clear: The ADL has nothing to do with Judaism, Jews, or Jewish Survival. It is a collection of communists, anarchists, Jewish 60's drop-outs, bitter about their nothing status and eager to spread their venom about a socialist paradise at which they believe only they can succeed. (The earlier Bolsheviks and Trotskyite's, they assure us, just didn't get it right.!)
It's more than interesting how Obama has surrounded himself with these same radical leftist rejects from the 60's. Interesting also, is how the ADL and the present administration are working hand in glove to make us safer with insane, counter-productive “Hate Crime” legislation.
Now, the ADL is on the warpath again, this time advocating for a federal data bank to be housed (with them?) in Washington, where each American can be monitored and pursued, for ever having said anything "hateful."
And what is the definition of "hateful," you ask? Simple, whatever the ADL dictates. And how, you'll ask can that possibly happen here in the land of the Free, the home of the Brave? Again, simple: just play the anti-Semitic race card, and you will have people tripping all over themselves to acquiesce to your every whim. The facts are:
not one Christian today in America dare read the Bible, with it’s exhortation against bestiality and homosexuality without looking over their collective shoulders to see if the ADL is monitoring.
So why would the ADL, an organization supposedly founded for the purpose of helping Jews in peril, be spending their capital railing and ranting about Christians and what they do in the privacy of their churches. Interesting, how the ADL could care less about groups like ACORN, ISLAMIC JIAHAD, HAMMAS, CAIR — could it be because they're people of "color?" Or maybe it's because they are necessary in their scheme of ONE WORLD ORDER, neutralizing the fabric of America, getting it ripe for a takeover in which the ADL can take part.
Why is the ADL, supposedly the "sentinel" of the Jewish people so disposed to the rights and whims of radical gay and lesbian groups? Is this the pervue of the ADL? The answer lies in one simple concept: power and control. What the Soviets could not do in Russia, the ADL will attempt to do to America.
Witness the ADL at work:
1- advocating federal statutes and punishment for just "saying" something negative about Gays, essentially making every Christian a law-breaker in America today.
2- storing thousands of files on suspected "haters," including names, addresses, and phone numbers to be shared with both local and federal police whenever these "haters" get out of hand by saying what they believe.
3- advocating massive censorship where media and films must pass a litmus test before being called "kosher"
4- proposing legislation for simply expressing "seed ideas" (Biblical in origin), concepts or utterances that “stimulate” or “cause friction” against targeted groups.
5- lobbying Canada to pass hate crime legislation: $5,000 misdemeanor, serving up to 2 years in prison.
6- working 24/7 for their new "messianic" legislation: HR 262, the “Hate Crimes Bill,” where the ADL will be positioned to establish a massive, pervasive and fascist bureaucracy that will monitor every single American and impose in this country Nazi Germany-style control — the ultimate vision of the leftist ADL.
The far-reaching consequences are: no church director will ever be able to utter the word of G-d! Is this not the communist “utopia” coming to fruition? Massive mind control about bias is even now, being established in education — inculcating our youth from kindergarten through college about politically correct speech. Churches that do not hire homosexuals will be closed down. Preachers will be jailed. Here in California, our insane legislature just passed such a bill, a bill that will fire faculty or expel students that make a slip of the tongue.
Isn't it amazing? We're not allowed to have the Ten Commandments in our schools. No "minute of prayer" allowed. No mention of G-d allowed. But plenty of mind control about how the White Christians have destroyed the earth and must be neutralized. The Day of the multiculturalists is here, aided and abetted by the ADL, using "hate speech" as the Trojan horse that will destroy our once-great America.
I find a certain peace in getting back to that earlier mention of the plain synagogue, permeated with an aura of stark truth and humility, the sometimes shaky rafters and squeaky doors giving testimony to a simplicity lending itself to truth and the eternal peace.
How this contrasts with the monstrous and ostentatious ADL building in New York! A skyscraper pointing to heaven, symbolically raising its accusing finger at the Master of the Universe. No, the tons of glass and concrete here cannot mask a horrifying lie and evil intent for this country.
I find myself having crossed the political Rubicon. As a conservative, passionate advocate of America's freedom for individual liberties and speech, I have become a pariah in the Jewish community. Who knows, maybe the ADL is monitoring this very message?! But one thing is clear: I stand on the shoulders of many great Americans who have given their lives for this great land. I will not shirk from my responsibility as an American, as a beneficiary of this grand and blessed legacy. I hope that my urgent words are heeded and that people will wake up about those alien forces threatening our very lives.
To all my friends throughout America: G-d bless you, and G-d bless America
Related Articles:
1- ADL Blasts "Paranoid" Right
© 2009 Nachum Shifren - All Rights Reserved
E-mail This Page
Sign Up For Free E-Mail Alerts
Rabbi Shifren is a southern California native. He graduated from UC Santa Barbara with a degree in Spanish and German literature. He has been a language teacher in LA City schools since 1992. He is also fluent in Hebrew.
Rabbi Shifren received his ordination in Jerusalem in 1990 and is a talmudic scholar. Having lived in Israel for nearly a decade, he has been an observer and commentator of developments in Israel, the Israeli and foreign press, and the recent rise of Islamic Jihad.
He is also the dirctor of "surf and soul" surfcamp, where teens learn self-discipline, proper attitude, and physical fitness. A Malibu surfer since 1962, he is known universally as the surfing rabbi. Through his seminars and classes, he has taught thousand the challenge and thrill of wave riding and the postive aspects of the surfing life style.
Rabbi Shifren has declared his candidacy for the Calif. State Senate in 2010, and is the only candidate to openly pledge to oppose the advent of Sharia law in the United States. He is a tireless supporter of individual freedoms and preserving the distinctive greatness of America, her language, and culture. Known for his no-nonsense approach to education and prison reform, Rabbi Shifren is in his own class of patriotism and staunch conservative values.
Rev. Jesse Lee Petersen said: "If we had 10 more teachers like Rabbi Shifren, we could turn America around tomorrow.
Sunday, November 29, 2009
Thursday, November 19, 2009
Zinc Dimes, Tungsten Gold & Lost Respect
In 1964 the USGovt introduced the zinc dimes clad with silver. They at least admitted the debauchery publicly. Now pre-1964 silver coins are all considered different, and valued differently too, higher. Rome committed the same coinage fraud 1900 years ago. Their Empire went bust as the city burned almost concurrently. Ayn Rand is a guiding light for Alan Greenspan, the enabling destroyer of the US banking system, destroyer of the US household archipelago, and dispatcher of the US industrial base to Asia. He is the hero icon worshipped by Wall Street. The irony is thick, that his career was spent following Old Europe orders that delivered the slow motion coup de grace to the American Empire. Ayn Rand wrote "If you want to know when a society is set to vanish, watch the money. Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of moral existence. Destroyers seize gold and leave to its owner a counterfeit pile of papers." The Chinese are learning this lesson the hard way, challenged to convert their USTreasury Bonds and USAgency Mortgage Bonds into true wealth before the paper becomes untradable. Actually, the bonds will eventually be redeemed by the USFed with newly printed money, when an avalanche occurs of foreigners seeking redemption en masse. For almost ten years they have been exchanging their finished products to the US & West for paper with ink on it, in questionable stored wealth. The Chinese are cashing in on their paper, trading it for new global power.
NEW TUNGSTEN MINE DISCOVERY
The tungsten deposits come in very high grade ore, located in shallow rectangular deposits dispersed widely across the world, segregated in unusual vault heap leach mineralizations. In October, the Hong Kong bankers discovered some gold bars shipped from the United States were actually tungsten with gold plating. This is the exact same Modus Operandi as the silver clad zinc dimes from 45 years ago. History repeats itself. The parallels to mortgage bond fraud with either subprime borrowers or multiple property titles used in bond securitization is easy to spot. A consistent theme runs through the American management of finance and dissemination of fraudulent assets on a global basis. Tungsten gold bars is a feat difficult to surpass. Credit must be given for not leaving any potential for fraud untapped. Refer to insider flash trading, naked shorting of bank stocks, commodity trading on behalf of the USGovt, and much more. No disrespect is intended for the trillion$ counterfeits of superstar grade. Refer defense appropriations, USTreasury Bond sales beyond issuance, and missing Fannie Mae funds. These are legacy crimes.
The initial discovery was something like four gold bars, which the Hong Kong bankers drilled invasively to test the contents. Reminds me of drilling the earth and measuring how many grams of gold per tonne. The HK bankers hoped to have 99% gold yield in their drill program for the resident bars. They found something like 1% instead and 99% tungsten. By the way, tungsten sells for less than $70 per ton, which makes its swaps for gold to be 60x more profitable than silver bar swaps. Another handy usage for the Gold/Silver ratio in calculations. The hunt was on. Now not a single assayer on the planet is available, as all are tied up. They have been commissioned to test the gold bars shipped from the United States of Fraudulent Banker America in their own bullion vaults. They use basic methods of four drill holes with direct assay of shavings, but also less invasive methods like electro-magnetic waves to examine the metal lattice structure. When highest level methods are needed, they turn to mass spectrometry. NOW ALMOST NO GOLD BARS WILL LEAVE THE LONDON OR NEW YORK METALS EXCHANGES WITHOUT SOME AUTHENTICATION, AS DISTRUST IS WIDESPREAD.
The global bankers must deal with toxic bonds and phony gold bars. Talk circulates that the entire contents of Fort Knox might have swapped a decade ago. Evidence is being accumulated and compiled. The assayers have also been commissioned to assist in authentication of gold bar delivery the world over from the US exchanges. Current estimates among the gold trader community run well past a few hundred thousand 'salted' gold bars, maybe over a million. So the introduction to sophisticated Wall Street methods of currency management during the Decade of Prosperity had a side game running simultaneously. In an age where the lines between patriotism and treason are blurred, this tungsten episode brings new meaning to the word HEIST.
BREAKDOWN AT GOLD EXCHANGES
The bust cometh, and it will be spectacular. The stories told in the press will be peculiar, since not told objectively. The headlines might be a comedy, with phony reports of foreign subterfuge, when the perpetrators are home grown. The focal point for attacks is actually London at their metals exchange. The early October events included numerous offers by exchange officials to settle gold contract deliveries in cash with a 25% extra vig bonus. Much gold was drained from London on demanded delivery, thanks to a small army of lawyers, a small blizzard of contracts, and a few key judges at the courts. They were all Asians, the majority Chinese. Gold was taken, thus enforcing futures contracts, which happen to be binding contracts. The pressure at the end of November will be worse to make good on gold contract deliveries. Recall the stories back in April for a Deutsche Bank rescue by the Euro Central Bank with a very large (over one million oz gold position) provision made. DBank was in trouble. The pressures are mounting every couple months. Next March will be a climax of the breakdown, or else June.
Breakdowns come from extreme pressures. Each delivery month event includes more gold removed from the London exchange, more gold demanded from it, and more movement toward a breakdown. So the next events have even more pressure, with less gold supply and continued relentless demand. Recall also that the exchange, along with the COMEX in the Untied States, exempt certain parties from maintaining 80% collateral when they short gold & silver with paper contracts. Thus the name suppression, or better yet corruption. They are being caught in their naked shorting game. The December 1st events surrounding settlement delivery demands will be more contentious and stressful than October 1st. In sequential manner, the March event will be even more pressure packed, with precious little physical gold in store and more targeted Chinese delivery demanded. The June event will be even more pressure packed still, a backup date for a potential breakdown if it does not occur in March.
The common denominator for the parties demanding gold delivery in London is simple: they are all Asians, all, as in all, and the great majority are Chinese. One can safely conclude that the US and British banks will be broken with the nexus being their gold management, which underpins the USDollar. Other pressure is sure to mount. Not the kind of pressure you might imagine. Pressure is mounting for senior bank executives and politicians to start revealing the identities, deeds, locations, and dates of the gold tungsten swap, the mortgage bond firehose, and other pervasive frauds protected by the USGovt and British Govt.
GOLD & SILVER BREAKOUTS
The gold & silver prices are moving in lead fashion, and have done so among the currencies for at least the last three months. The major currencies fiddle and diddle, but gold & silver continue to rise. The Chinese, according to word from connected sources, intend to push the gold price and the silver price relentless upward without explosive parabolic moves and without painful huge selloff corrections. That way, the army of public investors will not lose heart, and will remain on the path, in full phalanx support of the Chinese Govt initiative. The Euro currency has hit the 150 level in mid-October and in mid-November, only to fall back a little. The Euro is not ready for a powerful move to 160 just yet. Such an advance would bring with it a painful effect to German exporters again, not desired. As a result, the gold price in Europe has made significant moves, and is in the process of challenging the 785 high from February. The key to a massive gold bull market is confirmation in terms of other currencies. The gold breakout is being led globally in US$ terms, since it is the weakest currency among the majors. GOLD IS TAKING ITS RIGHTFUL PLACE AS THE PREMIER GLOBAL CURRENCY, AFTER A BREAKDOWN IN THE MONETARY SYSTEM AND INSOLVENCY IN THE BANKING SYSTEM.
My 1130 midterm target for gold has been hit, stated at least three times this summer and autumn in public articles. One must wonder if a sizeable selloff in gold is coming. My view is that given the lack of sudden sharp upward thrusts in the gold price, the prospect of a sharp correction is lessened. Charts tend to show symmetry oftentimes. Besides, the Beijing Put is becoming well-known in the financial circles. The Chinese are using some reverse technical analysis, buying heavily when the gold chart indicates imminent weakness. That way the clueless Western gold sellers will be denied their cheaper re-entry, and will be forced to buy at higher levels. The Chinese are employing an unusual pattern. They are accumulating gold. The Chinese will continue to buy gold with both hands until the supply is exhausted of turkeys who fail to comprehend the Paradigm Shift, fail to comprehend the USDollar revolt, fail to comprehend the broken Western banks, fail to comprehend the endless stimulus, and fail to dismiss the mindless gold bubble argument that seems to be floating around in recent propaganda ploys. Its author overlooks the USTreasury bubble of gigantic proportions.
Whether or not a notable pullback correction comes for gold, who knows? who cares? This is not a time to go in & out, selling & buying back a gold position. It is a time to acknowledge a powerful global shift that will send the USDollar into the dungeon, and deliver gold to unheardof heights. The next target for gold is 1300. The targets for gold are dictated by the size of the jumps from the head and shoulder of the inverted Head & Shoulders pattern. The lost respect from the gold bullion bar fraud, the Weimar output of printed money, the monetization dependence from global isolation, and the lack of leadership all tend to pull the USDollar down. More accurately, these factors will push gold up into a dominant currency position fully recognized, as nations struggle to rebuild their banks after toxic US infection that does not end.
G-20 CONFIRMS PARADIGM SHIFT
The Scotland gathering of bankers had some key signals to report. Note the signal how they ignored the USDollar as a topic in the open chambers. Conclude they wish for benign neglect, where the US$ can find its true value much lower, and eventually depart as the global reserve currency. Note the signal how they urged continued global stimulus. Conclude they wish for the major governments to continue to debauch, undermine, and destroy the major currencies such as the USDollar, British Pound, European Union Euro, Swiss Franc, and Japanese Yen. Conclude they wish for the emerging market economies to be given massive assistance by the industrialized submerged market economies. The more the prominent older nations render harm to their banking systems, economies, and balance sheets, the easier it will be for Brazil, Russia, India, and China to conduct the business of walking the earth as new leaders. The new BRIC nations will build their dominant positions one brick at a time. The Paradigm Shift is away from the USDollar, with power shifting from West to East and in particular toward the BRIC nations. Their most recent visible victory is killing off the G-8 Meeting, which does not convene anymore. Not only does the G-20 serve as the global banker conference forum, but the Chinese have a lead voice, precisely as they demanded. Creditors win their way.
The commodity currencies are in a different earth zone. My analysis has stated that the prominent older nations, the so-called industrialized nations, will not raise their official interest rates. They will only talk, since their banks are insolvent and their government debt securities are caught in asset bubbles. The Euro Central Bank is the most likely to raise interest rates, but only as part of a more diverse strategy to split the EU iteself. The German nation has been drained by $40 billion per year for each of the last ten years, and resentment is strong. The Australians and Norwegians hiked their official interest rates in recent weeks. They have commodities to fortify their national economies, and do not concentrate on the sale of inked paper in tainted export.
The Paradigm Shift is toward a more legitimate group of currencies. It is toward currencies backed by hard assets. The currency basket from the Intl Monetary Fund seems like the temporary device. It is actually a Straw Man carrying a straw basket. Before the grand shift is complete to at least one hard asset currency, the doomed currencies will be bound together with IMF twine. The bankers believe the IMF straw basket will give them the power to control the decline of the USDollar, or protect themselves from that decline. The strategy might succeed. It will surely enable the gold price to climb versus all currencies. Gold will be like Moses in a basket as a baby, except moving upstream. The candidates for hard asset currencies are the New Russian Ruble, the Gulf Dinar, maybe even a New Nordic Euro. The process will take time, as some bumpy roads lie ahead, and military protection is required.
EXIT STRATEGY & WEIMAR DOLLARS
No exit strategy is available either to the Untied States or the British. The USFed conducted its helpless display to announce the USEconomy remains weak with slack capacity, and that an ultra-low official interest rate would be firmly fixed for a long time still. No surprise here! What they did not say is that, like with Japan, they have no possible exit plan. Now almost twenty years later, Japan is stuck with a near 0% rate. If the USFed raises interest rates, they pop the biggest financial bubble on the planet, USTreasury Bonds. The USFed is further hindered since Wall Street is playing the Dollar Carry Trade. They are borrowing 0% money in US$ and investing in commodities like crude oil and US stock indexes. Other players are using the free borrowed money to invest in gold. In fact, just today St Louis Fed President Bullard stated his expectation of no further USFed rate hike until year 2012.
The Exit Strategy will lead to a road paved by Weimar Dollars. The world's major financial centers outside the central bank accomplices are ditching their dollars. They are diversifying out of US$-based bonds of all types. They are accumulating gold. Some are investing in facilities that are vertically integrated with commodity production, transport, and trade. Like China! The USGovt is investing, by contrast, in clunker cars, still more houses, dead car industry, spoiled AIG insurer, a mortgage cesspool Fannie Mae, pork projects (see unused airport in Johnstown Pennsylvania), and a dubious war on terrorism. Quite a contrast! With the news spreading globally about tungsten-laced gold bars, or actually gold-plated tungsten bars, the reputation of the Untied States will grow more tarnished.
In time, the only friend of the USDept Treasury to finance its steady stream of Trillion$ in debt will be the Printing Pre$$. Without the printed money to pull off the auctions, they would be utter loud failures. Without the USDollar Swap Facility, foreign central banks would not have funds to use in Treasury auctions. Without the funds from foreign USAgency Mortgage Bonds sold to the USFed for freshly printed USDollars, the foreign central banks would not have funds to use in Treasury auctions. Without the Permanent Market Operations used to scoop up all the unsold bonds stuck with primary dealers, one week routinely after each auction, dealers would be unable to participate in the next Treasury auctions. They would suffer from bond constipation. The key event in the next few months, pushed by the foreign disgust at fraud more pervasive than ever conceived by ordinary man, is THE EXPOSURE OF MONETIZATION for support of the USTreasury Bond. The debt monetization remains a dirty secret, well concealed by the USGovt and the financial press. What comes is isolation, and to those isolated, their best friend will be a Printing Pre$$.
Exposure comes, with detrimental impact to the USDollar. The resulting tarnish to the USGovt image and Wall Street reputation will be reflected on the USDollar. In time it will fully resemble a Third World currency. The process will take time, but hyper-inflation is coming to US shores. Where are the Deflation Knuckleheads who tended to dominate the web journals last spring and summer, in incredible dense vapid clueless fashion??? What a tremendously misguided group. They follow religiously the deteriorating economies, miss the twin storm, ignore the power of the unprecedented monetary inflation, and somehow overlook the entire global movement if not revolt against the USDollar in a grand Paradigm Shift. They represent the worst economists in the alternative media on web journals. Their tunnel vision on the falling asset price effect left them vulnerable to missing a tsunami on their own doorstep, incredibly. They still do not offer an explanation of why crude is at the $80 price level again. Supplies of oil are nowhere as great as the false USGovt statistics indicate, but the entire world is hedging at the same time against the US$ with oil assets.
OBAMA VISITS THE LEAD US CREDITOR
During the president visit to Beijing, Obama has been reminded of who the master creditor is. It is China. In public no discussions are made of the Chinese concentrated pressure in London at the metal exchange. Taboo topic. The US President has slipped on three key topics, with mention of the human rights issue, currency manipulation, and the future of communism. The US has no place to lecture any other nation. China is actually moving toward capitalism, while America has forgotten what capitalism is, and marches with right foot in fascist mud and left foot in communism mud.
The Chinese serve as the spearhead to displace the USDollar from its perch as the global reserve currency. They realize fully that the battle that must be won is over the Gold-Dollar fiery rod. The Chinese might be orchestrating a gold price move to 1150 and a silver price move to 19 just to slap the US face a little during the state visit. Creo que si!
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
From subscribers and readers:
At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.
"Thanks for the quality of the information you put forth in your newsletter. I read a lot of newsletters, blogs, and financial sites. The accuracy of your information has been second to none over the past couple of years."
(MikeP in Missouri)
"Your October HTL was your best writing since I have been subscribing. It just amazes me how much you write each month, all top-notch stuff."
(DavidL in Michigan)
"I used to read your public articles, and listen to you, but never realized until I joined what extra and detailed analysis you give to subscription clients. You always seem to be far ahead of everyone else. It is useful to 'see' what is happening, and you do this far better than the economists! I can think of many areas in life now where the best exponent is somebody not trained academically in that area."
(JamesA in England)
"You seem to have it nailed. I used to think you were paranoid. Now I think you are psychic!"
(ShawnU in Ontario)
Jim Willie CB
Editor of the "HAT TRICK LETTER"
Hat Trick Letter
NEW TUNGSTEN MINE DISCOVERY
The tungsten deposits come in very high grade ore, located in shallow rectangular deposits dispersed widely across the world, segregated in unusual vault heap leach mineralizations. In October, the Hong Kong bankers discovered some gold bars shipped from the United States were actually tungsten with gold plating. This is the exact same Modus Operandi as the silver clad zinc dimes from 45 years ago. History repeats itself. The parallels to mortgage bond fraud with either subprime borrowers or multiple property titles used in bond securitization is easy to spot. A consistent theme runs through the American management of finance and dissemination of fraudulent assets on a global basis. Tungsten gold bars is a feat difficult to surpass. Credit must be given for not leaving any potential for fraud untapped. Refer to insider flash trading, naked shorting of bank stocks, commodity trading on behalf of the USGovt, and much more. No disrespect is intended for the trillion$ counterfeits of superstar grade. Refer defense appropriations, USTreasury Bond sales beyond issuance, and missing Fannie Mae funds. These are legacy crimes.
The initial discovery was something like four gold bars, which the Hong Kong bankers drilled invasively to test the contents. Reminds me of drilling the earth and measuring how many grams of gold per tonne. The HK bankers hoped to have 99% gold yield in their drill program for the resident bars. They found something like 1% instead and 99% tungsten. By the way, tungsten sells for less than $70 per ton, which makes its swaps for gold to be 60x more profitable than silver bar swaps. Another handy usage for the Gold/Silver ratio in calculations. The hunt was on. Now not a single assayer on the planet is available, as all are tied up. They have been commissioned to test the gold bars shipped from the United States of Fraudulent Banker America in their own bullion vaults. They use basic methods of four drill holes with direct assay of shavings, but also less invasive methods like electro-magnetic waves to examine the metal lattice structure. When highest level methods are needed, they turn to mass spectrometry. NOW ALMOST NO GOLD BARS WILL LEAVE THE LONDON OR NEW YORK METALS EXCHANGES WITHOUT SOME AUTHENTICATION, AS DISTRUST IS WIDESPREAD.
The global bankers must deal with toxic bonds and phony gold bars. Talk circulates that the entire contents of Fort Knox might have swapped a decade ago. Evidence is being accumulated and compiled. The assayers have also been commissioned to assist in authentication of gold bar delivery the world over from the US exchanges. Current estimates among the gold trader community run well past a few hundred thousand 'salted' gold bars, maybe over a million. So the introduction to sophisticated Wall Street methods of currency management during the Decade of Prosperity had a side game running simultaneously. In an age where the lines between patriotism and treason are blurred, this tungsten episode brings new meaning to the word HEIST.
BREAKDOWN AT GOLD EXCHANGES
The bust cometh, and it will be spectacular. The stories told in the press will be peculiar, since not told objectively. The headlines might be a comedy, with phony reports of foreign subterfuge, when the perpetrators are home grown. The focal point for attacks is actually London at their metals exchange. The early October events included numerous offers by exchange officials to settle gold contract deliveries in cash with a 25% extra vig bonus. Much gold was drained from London on demanded delivery, thanks to a small army of lawyers, a small blizzard of contracts, and a few key judges at the courts. They were all Asians, the majority Chinese. Gold was taken, thus enforcing futures contracts, which happen to be binding contracts. The pressure at the end of November will be worse to make good on gold contract deliveries. Recall the stories back in April for a Deutsche Bank rescue by the Euro Central Bank with a very large (over one million oz gold position) provision made. DBank was in trouble. The pressures are mounting every couple months. Next March will be a climax of the breakdown, or else June.
Breakdowns come from extreme pressures. Each delivery month event includes more gold removed from the London exchange, more gold demanded from it, and more movement toward a breakdown. So the next events have even more pressure, with less gold supply and continued relentless demand. Recall also that the exchange, along with the COMEX in the Untied States, exempt certain parties from maintaining 80% collateral when they short gold & silver with paper contracts. Thus the name suppression, or better yet corruption. They are being caught in their naked shorting game. The December 1st events surrounding settlement delivery demands will be more contentious and stressful than October 1st. In sequential manner, the March event will be even more pressure packed, with precious little physical gold in store and more targeted Chinese delivery demanded. The June event will be even more pressure packed still, a backup date for a potential breakdown if it does not occur in March.
The common denominator for the parties demanding gold delivery in London is simple: they are all Asians, all, as in all, and the great majority are Chinese. One can safely conclude that the US and British banks will be broken with the nexus being their gold management, which underpins the USDollar. Other pressure is sure to mount. Not the kind of pressure you might imagine. Pressure is mounting for senior bank executives and politicians to start revealing the identities, deeds, locations, and dates of the gold tungsten swap, the mortgage bond firehose, and other pervasive frauds protected by the USGovt and British Govt.
GOLD & SILVER BREAKOUTS
The gold & silver prices are moving in lead fashion, and have done so among the currencies for at least the last three months. The major currencies fiddle and diddle, but gold & silver continue to rise. The Chinese, according to word from connected sources, intend to push the gold price and the silver price relentless upward without explosive parabolic moves and without painful huge selloff corrections. That way, the army of public investors will not lose heart, and will remain on the path, in full phalanx support of the Chinese Govt initiative. The Euro currency has hit the 150 level in mid-October and in mid-November, only to fall back a little. The Euro is not ready for a powerful move to 160 just yet. Such an advance would bring with it a painful effect to German exporters again, not desired. As a result, the gold price in Europe has made significant moves, and is in the process of challenging the 785 high from February. The key to a massive gold bull market is confirmation in terms of other currencies. The gold breakout is being led globally in US$ terms, since it is the weakest currency among the majors. GOLD IS TAKING ITS RIGHTFUL PLACE AS THE PREMIER GLOBAL CURRENCY, AFTER A BREAKDOWN IN THE MONETARY SYSTEM AND INSOLVENCY IN THE BANKING SYSTEM.
My 1130 midterm target for gold has been hit, stated at least three times this summer and autumn in public articles. One must wonder if a sizeable selloff in gold is coming. My view is that given the lack of sudden sharp upward thrusts in the gold price, the prospect of a sharp correction is lessened. Charts tend to show symmetry oftentimes. Besides, the Beijing Put is becoming well-known in the financial circles. The Chinese are using some reverse technical analysis, buying heavily when the gold chart indicates imminent weakness. That way the clueless Western gold sellers will be denied their cheaper re-entry, and will be forced to buy at higher levels. The Chinese are employing an unusual pattern. They are accumulating gold. The Chinese will continue to buy gold with both hands until the supply is exhausted of turkeys who fail to comprehend the Paradigm Shift, fail to comprehend the USDollar revolt, fail to comprehend the broken Western banks, fail to comprehend the endless stimulus, and fail to dismiss the mindless gold bubble argument that seems to be floating around in recent propaganda ploys. Its author overlooks the USTreasury bubble of gigantic proportions.
Whether or not a notable pullback correction comes for gold, who knows? who cares? This is not a time to go in & out, selling & buying back a gold position. It is a time to acknowledge a powerful global shift that will send the USDollar into the dungeon, and deliver gold to unheardof heights. The next target for gold is 1300. The targets for gold are dictated by the size of the jumps from the head and shoulder of the inverted Head & Shoulders pattern. The lost respect from the gold bullion bar fraud, the Weimar output of printed money, the monetization dependence from global isolation, and the lack of leadership all tend to pull the USDollar down. More accurately, these factors will push gold up into a dominant currency position fully recognized, as nations struggle to rebuild their banks after toxic US infection that does not end.
G-20 CONFIRMS PARADIGM SHIFT
The Scotland gathering of bankers had some key signals to report. Note the signal how they ignored the USDollar as a topic in the open chambers. Conclude they wish for benign neglect, where the US$ can find its true value much lower, and eventually depart as the global reserve currency. Note the signal how they urged continued global stimulus. Conclude they wish for the major governments to continue to debauch, undermine, and destroy the major currencies such as the USDollar, British Pound, European Union Euro, Swiss Franc, and Japanese Yen. Conclude they wish for the emerging market economies to be given massive assistance by the industrialized submerged market economies. The more the prominent older nations render harm to their banking systems, economies, and balance sheets, the easier it will be for Brazil, Russia, India, and China to conduct the business of walking the earth as new leaders. The new BRIC nations will build their dominant positions one brick at a time. The Paradigm Shift is away from the USDollar, with power shifting from West to East and in particular toward the BRIC nations. Their most recent visible victory is killing off the G-8 Meeting, which does not convene anymore. Not only does the G-20 serve as the global banker conference forum, but the Chinese have a lead voice, precisely as they demanded. Creditors win their way.
The commodity currencies are in a different earth zone. My analysis has stated that the prominent older nations, the so-called industrialized nations, will not raise their official interest rates. They will only talk, since their banks are insolvent and their government debt securities are caught in asset bubbles. The Euro Central Bank is the most likely to raise interest rates, but only as part of a more diverse strategy to split the EU iteself. The German nation has been drained by $40 billion per year for each of the last ten years, and resentment is strong. The Australians and Norwegians hiked their official interest rates in recent weeks. They have commodities to fortify their national economies, and do not concentrate on the sale of inked paper in tainted export.
The Paradigm Shift is toward a more legitimate group of currencies. It is toward currencies backed by hard assets. The currency basket from the Intl Monetary Fund seems like the temporary device. It is actually a Straw Man carrying a straw basket. Before the grand shift is complete to at least one hard asset currency, the doomed currencies will be bound together with IMF twine. The bankers believe the IMF straw basket will give them the power to control the decline of the USDollar, or protect themselves from that decline. The strategy might succeed. It will surely enable the gold price to climb versus all currencies. Gold will be like Moses in a basket as a baby, except moving upstream. The candidates for hard asset currencies are the New Russian Ruble, the Gulf Dinar, maybe even a New Nordic Euro. The process will take time, as some bumpy roads lie ahead, and military protection is required.
EXIT STRATEGY & WEIMAR DOLLARS
No exit strategy is available either to the Untied States or the British. The USFed conducted its helpless display to announce the USEconomy remains weak with slack capacity, and that an ultra-low official interest rate would be firmly fixed for a long time still. No surprise here! What they did not say is that, like with Japan, they have no possible exit plan. Now almost twenty years later, Japan is stuck with a near 0% rate. If the USFed raises interest rates, they pop the biggest financial bubble on the planet, USTreasury Bonds. The USFed is further hindered since Wall Street is playing the Dollar Carry Trade. They are borrowing 0% money in US$ and investing in commodities like crude oil and US stock indexes. Other players are using the free borrowed money to invest in gold. In fact, just today St Louis Fed President Bullard stated his expectation of no further USFed rate hike until year 2012.
The Exit Strategy will lead to a road paved by Weimar Dollars. The world's major financial centers outside the central bank accomplices are ditching their dollars. They are diversifying out of US$-based bonds of all types. They are accumulating gold. Some are investing in facilities that are vertically integrated with commodity production, transport, and trade. Like China! The USGovt is investing, by contrast, in clunker cars, still more houses, dead car industry, spoiled AIG insurer, a mortgage cesspool Fannie Mae, pork projects (see unused airport in Johnstown Pennsylvania), and a dubious war on terrorism. Quite a contrast! With the news spreading globally about tungsten-laced gold bars, or actually gold-plated tungsten bars, the reputation of the Untied States will grow more tarnished.
In time, the only friend of the USDept Treasury to finance its steady stream of Trillion$ in debt will be the Printing Pre$$. Without the printed money to pull off the auctions, they would be utter loud failures. Without the USDollar Swap Facility, foreign central banks would not have funds to use in Treasury auctions. Without the funds from foreign USAgency Mortgage Bonds sold to the USFed for freshly printed USDollars, the foreign central banks would not have funds to use in Treasury auctions. Without the Permanent Market Operations used to scoop up all the unsold bonds stuck with primary dealers, one week routinely after each auction, dealers would be unable to participate in the next Treasury auctions. They would suffer from bond constipation. The key event in the next few months, pushed by the foreign disgust at fraud more pervasive than ever conceived by ordinary man, is THE EXPOSURE OF MONETIZATION for support of the USTreasury Bond. The debt monetization remains a dirty secret, well concealed by the USGovt and the financial press. What comes is isolation, and to those isolated, their best friend will be a Printing Pre$$.
Exposure comes, with detrimental impact to the USDollar. The resulting tarnish to the USGovt image and Wall Street reputation will be reflected on the USDollar. In time it will fully resemble a Third World currency. The process will take time, but hyper-inflation is coming to US shores. Where are the Deflation Knuckleheads who tended to dominate the web journals last spring and summer, in incredible dense vapid clueless fashion??? What a tremendously misguided group. They follow religiously the deteriorating economies, miss the twin storm, ignore the power of the unprecedented monetary inflation, and somehow overlook the entire global movement if not revolt against the USDollar in a grand Paradigm Shift. They represent the worst economists in the alternative media on web journals. Their tunnel vision on the falling asset price effect left them vulnerable to missing a tsunami on their own doorstep, incredibly. They still do not offer an explanation of why crude is at the $80 price level again. Supplies of oil are nowhere as great as the false USGovt statistics indicate, but the entire world is hedging at the same time against the US$ with oil assets.
OBAMA VISITS THE LEAD US CREDITOR
During the president visit to Beijing, Obama has been reminded of who the master creditor is. It is China. In public no discussions are made of the Chinese concentrated pressure in London at the metal exchange. Taboo topic. The US President has slipped on three key topics, with mention of the human rights issue, currency manipulation, and the future of communism. The US has no place to lecture any other nation. China is actually moving toward capitalism, while America has forgotten what capitalism is, and marches with right foot in fascist mud and left foot in communism mud.
The Chinese serve as the spearhead to displace the USDollar from its perch as the global reserve currency. They realize fully that the battle that must be won is over the Gold-Dollar fiery rod. The Chinese might be orchestrating a gold price move to 1150 and a silver price move to 19 just to slap the US face a little during the state visit. Creo que si!
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
From subscribers and readers:
At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.
"Thanks for the quality of the information you put forth in your newsletter. I read a lot of newsletters, blogs, and financial sites. The accuracy of your information has been second to none over the past couple of years."
(MikeP in Missouri)
"Your October HTL was your best writing since I have been subscribing. It just amazes me how much you write each month, all top-notch stuff."
(DavidL in Michigan)
"I used to read your public articles, and listen to you, but never realized until I joined what extra and detailed analysis you give to subscription clients. You always seem to be far ahead of everyone else. It is useful to 'see' what is happening, and you do this far better than the economists! I can think of many areas in life now where the best exponent is somebody not trained academically in that area."
(JamesA in England)
"You seem to have it nailed. I used to think you were paranoid. Now I think you are psychic!"
(ShawnU in Ontario)
Jim Willie CB
Editor of the "HAT TRICK LETTER"
Hat Trick Letter
“Gold Finger - A New Take On Operation Grand Slam With A Tungsten Twist”
By: Rob Kirby
I’ve already reported on irregular physical gold settlements which occurred in London, England back in the first week of October, 2009. Specifically, these settlements involved the intermediation of at least one Central Bank [The Bank of England] to resolve allocated settlements on behalf of J.P. Morgan and Deutsche Bank – who DID NOT have the gold bullion that they had sold short and were contracted to deliver. At the same time I reported on two other unusual occurrences:
1] - irregularities in the publication of the gold ETF - GLD’s bar list from Sept. 25 – Oct.14 where the length of the bar list went from 1,381 pages to under 200 pages and then back up to 800 or so pages.
2] - reports of 400 oz. “good delivery” bricks of gold found gutted and filled with tungsten within the confines of LBMA approved vaults in Hong Kong.
Why Tungsten?
If anyone were contemplating creating “fake” gold bars, tungsten [at roughly $10 per pound] would be the metal of choice since it has the exact same density as gold making a fake bar salted with tungsten indistinguishable from a solid gold bar by simply weighing it.
Unfortunately, there are now more sordid details to report.
When the news of tungsten “salted” gold bars in Hong Kong first surfaced, many people who I am acquainted with automatically assumed that these bars were manufactured in China – because China is generally viewed as “the knock-off capital of the world”.
Here’s what I now understand really happened:
The amount of “salted tungsten” gold bars in question was allegedly between 5,600 and 5,700 – 400 oz – good delivery bars [roughly 60 metric tonnes].
This was apparently all highly orchestrated by an extremely well financed criminal operation.
Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.
And here’s what the Chinese allegedly uncovered:
Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.
The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.
Apparently, the global market is literally “stuffed full of 400 oz salted bars”.
Makes one wonder if the Indians were smart enough to assay their 200 tonne haul from the IMF?
A Slow Motion Train Wreck, Years in the Making
An obscure news item originally published in the N.Y. Post [written by Jennifer Anderson] in late Jan. 04 has always ‘stuck in my craw’:
DA investigating NYMEX executive - Manhattan, New York, district attorney's office, Stuart Smith - Melting Pot - Brief Article – Feb. 2, 2004
A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney's office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange's markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney's office also declined comment.
The offices of the Senior Vice President of Operations - NYMEX – is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep these records. These precise records would show the lineage of all the physical gold settled on the exchange and hence "prove" that the amount of gold in question could not have possibly come from the U.S. mining operations – because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production.
We never have found out what happened to poor ole Stuart Smith – after his offices were "raided" – he took administrative leave from the NYMEX and he has never been heard from since. Amazingly [or perhaps not], there never was any follow up on in the media on the original story as well as ZERO developments ever stemming from D.A. Morgenthau’s office who executed the search warrant.
Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then takes leave - all for nothing?
These revelations should provide a “new filter” through which Rothschild exiting the gold market back in 2004 begins to make a little more sense:
“LONDON, April 14, 2004 (Reuters) - NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”
Interestingly, GATA’s Bill Murphy speculated about this back in 2004;
“Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but suspect:”
*SOMETHING IS AMISS. THEY KNOW A BIG GOLD SCANDAL IS COMING AND THEY WANT NO PART OF IT. …”
“ROTHSCHILD WANTS OUT BEFORE THE PROVERBIAL "S" HITS THE FAN.” BILL MURPHY, LEMETROPOLE, 4-18-2004
Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004
In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:
Excerpt from the GLD prospectus on page 11:
http://www.spdrgoldshares.com/media/GLD/file/SPDRGoldTrustProspectus.pdf
Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.
The Fed Has Already Been Caught Lying
Liberty Coin’s Patrick Heller recently wrote,
Earlier this year, the Gold Anti-Trust Action Committee (GATA), filed a second Freedom of Information Act (FOIA) request with the Federal Reserve System for documents from 1990 to date having to do with gold swaps, gold swapped, or proposed gold swaps.
On Aug. 5, The Federal Reserve responded to this FOIA request by adding two more documents to those disclosed to GATA in April 2008 from the earlier FOIA request. These documents totaled 173 pages, many parts of which were redacted (covered up to omit sections of text). The Fed's response also noted that there were 137 pages of documents not disclosed that were alleged to be exempt from disclosure.
GATA appealed this determination on Aug. 20. The appeal asked for more information to substantiate the legitimacy of the claimed exemptions from disclosure and an explanation on why some documents, such as one posted on the Federal Reserve Web site that discusses gold swaps, were not included in the Aug. 5 document release.
In a Sept. 17, 2009, letter on Federal Reserve System letterhead, Federal Reserve governor Kevin M. Warsh completely denied GATA's appeal. The entire text of this letter can be examined at http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf.
The first paragraph on the third page is the most revealing. Warsh wrote, "In connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."
This paragraph will likely be one of the most important news stories of the year.
Though not stated in plain English, this paragraph is an admission that the Fed has in the past and may now be engaged in trading gold swaps. Warsh's letter contradicts previous Fed statements to GATA denying that it ever engaged in gold swaps during the time period between Jan. 1, 1990 and the present.
[Perhaps most importantly], this was GATA's second FOIA request to the Federal Reserve on the issue of gold swaps. The 173 pages of documents received for the 2009 FOIA request all pre-dated the 2007 FOIA request, which means they should have been released in the response to the earlier FOIA request. This establishes a likelihood that the Federal Reserve has failed to adequately search or disclose relevant documents. Further, the Fed response admitted that it had copies of relevant records that originally appeared on the Treasury Department Web site, but failed to include them in its response.
Now that Federal Reserve governor Warsh has admitted that the Fed has lied in the past about the Fed’s involvement with gold. It should now be very clear to everyone why the Fed is lying and the true nature of what they are hiding / withholding.
On Doing God’s Work
An important footnote to consider is the inter-twined-ness of the U.S. Federal Reserve and the U.S. Treasury [can anyone really tell them apart?] as well as this duopoly’s two principal agents – J.P. Morgan-Chase and Goldman Sachs. When one truly grasps the nature of these highly conflicted relationships it gives a fuller meaning to words recently uttered by Goldman head, Lloyd Blankfein, who claimed,
“I’m doing god’s work”
Does this really mean that Mr. Blankfein believes that the Federal Reserve is god? You can judge for yourself. While the Fed prints money like no one else could - except god almighty himself [or Gideon Gono, perhaps?] – I really doubt that was the intent back in 1864, when the U.S. adopted “In God We Trust” as their official motto
I’ve already reported on irregular physical gold settlements which occurred in London, England back in the first week of October, 2009. Specifically, these settlements involved the intermediation of at least one Central Bank [The Bank of England] to resolve allocated settlements on behalf of J.P. Morgan and Deutsche Bank – who DID NOT have the gold bullion that they had sold short and were contracted to deliver. At the same time I reported on two other unusual occurrences:
1] - irregularities in the publication of the gold ETF - GLD’s bar list from Sept. 25 – Oct.14 where the length of the bar list went from 1,381 pages to under 200 pages and then back up to 800 or so pages.
2] - reports of 400 oz. “good delivery” bricks of gold found gutted and filled with tungsten within the confines of LBMA approved vaults in Hong Kong.
Why Tungsten?
If anyone were contemplating creating “fake” gold bars, tungsten [at roughly $10 per pound] would be the metal of choice since it has the exact same density as gold making a fake bar salted with tungsten indistinguishable from a solid gold bar by simply weighing it.
Unfortunately, there are now more sordid details to report.
When the news of tungsten “salted” gold bars in Hong Kong first surfaced, many people who I am acquainted with automatically assumed that these bars were manufactured in China – because China is generally viewed as “the knock-off capital of the world”.
Here’s what I now understand really happened:
The amount of “salted tungsten” gold bars in question was allegedly between 5,600 and 5,700 – 400 oz – good delivery bars [roughly 60 metric tonnes].
This was apparently all highly orchestrated by an extremely well financed criminal operation.
Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.
And here’s what the Chinese allegedly uncovered:
Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.
The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.
Apparently, the global market is literally “stuffed full of 400 oz salted bars”.
Makes one wonder if the Indians were smart enough to assay their 200 tonne haul from the IMF?
A Slow Motion Train Wreck, Years in the Making
An obscure news item originally published in the N.Y. Post [written by Jennifer Anderson] in late Jan. 04 has always ‘stuck in my craw’:
DA investigating NYMEX executive - Manhattan, New York, district attorney's office, Stuart Smith - Melting Pot - Brief Article – Feb. 2, 2004
A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney's office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange's markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney's office also declined comment.
The offices of the Senior Vice President of Operations - NYMEX – is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep these records. These precise records would show the lineage of all the physical gold settled on the exchange and hence "prove" that the amount of gold in question could not have possibly come from the U.S. mining operations – because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production.
We never have found out what happened to poor ole Stuart Smith – after his offices were "raided" – he took administrative leave from the NYMEX and he has never been heard from since. Amazingly [or perhaps not], there never was any follow up on in the media on the original story as well as ZERO developments ever stemming from D.A. Morgenthau’s office who executed the search warrant.
Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then takes leave - all for nothing?
These revelations should provide a “new filter” through which Rothschild exiting the gold market back in 2004 begins to make a little more sense:
“LONDON, April 14, 2004 (Reuters) - NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”
Interestingly, GATA’s Bill Murphy speculated about this back in 2004;
“Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but suspect:”
*SOMETHING IS AMISS. THEY KNOW A BIG GOLD SCANDAL IS COMING AND THEY WANT NO PART OF IT. …”
“ROTHSCHILD WANTS OUT BEFORE THE PROVERBIAL "S" HITS THE FAN.” BILL MURPHY, LEMETROPOLE, 4-18-2004
Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004
In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:
Excerpt from the GLD prospectus on page 11:
http://www.spdrgoldshares.com/media/GLD/file/SPDRGoldTrustProspectus.pdf
Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.
The Fed Has Already Been Caught Lying
Liberty Coin’s Patrick Heller recently wrote,
Earlier this year, the Gold Anti-Trust Action Committee (GATA), filed a second Freedom of Information Act (FOIA) request with the Federal Reserve System for documents from 1990 to date having to do with gold swaps, gold swapped, or proposed gold swaps.
On Aug. 5, The Federal Reserve responded to this FOIA request by adding two more documents to those disclosed to GATA in April 2008 from the earlier FOIA request. These documents totaled 173 pages, many parts of which were redacted (covered up to omit sections of text). The Fed's response also noted that there were 137 pages of documents not disclosed that were alleged to be exempt from disclosure.
GATA appealed this determination on Aug. 20. The appeal asked for more information to substantiate the legitimacy of the claimed exemptions from disclosure and an explanation on why some documents, such as one posted on the Federal Reserve Web site that discusses gold swaps, were not included in the Aug. 5 document release.
In a Sept. 17, 2009, letter on Federal Reserve System letterhead, Federal Reserve governor Kevin M. Warsh completely denied GATA's appeal. The entire text of this letter can be examined at http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf.
The first paragraph on the third page is the most revealing. Warsh wrote, "In connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."
This paragraph will likely be one of the most important news stories of the year.
Though not stated in plain English, this paragraph is an admission that the Fed has in the past and may now be engaged in trading gold swaps. Warsh's letter contradicts previous Fed statements to GATA denying that it ever engaged in gold swaps during the time period between Jan. 1, 1990 and the present.
[Perhaps most importantly], this was GATA's second FOIA request to the Federal Reserve on the issue of gold swaps. The 173 pages of documents received for the 2009 FOIA request all pre-dated the 2007 FOIA request, which means they should have been released in the response to the earlier FOIA request. This establishes a likelihood that the Federal Reserve has failed to adequately search or disclose relevant documents. Further, the Fed response admitted that it had copies of relevant records that originally appeared on the Treasury Department Web site, but failed to include them in its response.
Now that Federal Reserve governor Warsh has admitted that the Fed has lied in the past about the Fed’s involvement with gold. It should now be very clear to everyone why the Fed is lying and the true nature of what they are hiding / withholding.
On Doing God’s Work
An important footnote to consider is the inter-twined-ness of the U.S. Federal Reserve and the U.S. Treasury [can anyone really tell them apart?] as well as this duopoly’s two principal agents – J.P. Morgan-Chase and Goldman Sachs. When one truly grasps the nature of these highly conflicted relationships it gives a fuller meaning to words recently uttered by Goldman head, Lloyd Blankfein, who claimed,
“I’m doing god’s work”
Does this really mean that Mr. Blankfein believes that the Federal Reserve is god? You can judge for yourself. While the Fed prints money like no one else could - except god almighty himself [or Gideon Gono, perhaps?] – I really doubt that was the intent back in 1864, when the U.S. adopted “In God We Trust” as their official motto
Tuesday, November 17, 2009
Wednesday, November 4, 2009
What "Sources" are Really Taxed ?
Do our law books tell us where we can clarify this 'source' stuff??
Indeed they do!... sources are described by the Secretary of the Treasury in the Code of Federal Regulations and are the legally binding definition of 'sources' that must apply to an income for it to be classified as 'Gross Income'..
Code of Federal Regulations § 1.861- 8(a):
"...The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections." (Emphasis added)
Would you like to look at paragraph (f)(1) mentioned above?
We thought that you might!
(be forewarned, they do not look like much, but then, that's good!)
The Federal Regulations make reference to 'sources' within the United States.. these are the only sources listed from which income must derive in order for it to be taxable for the purpose of the Income Tax.
Certain editorial contributions made by John Gill CPA & Associates
Code of Federal Regulations 1.861-8(f)(1)
(NOTE: Each of these 'sources' will be elaborated upon soon)
(i) Overall limitation to the foreign tax credit.
(ii) [Reserved]
(iii) DISC and FSC taxable income.
(iv) Effectively connected taxable income. Nonresident alien individuals and foreign corporations engaged in trade or business within the United States,...
(v) Foreign base company income.
(vi) Other operative sections.
(A) ...foreign source items of tax...
(B) ...foreign mineral income...
(C) [Reserved]
(D) "...foreign oil and gas extraction income..."
(E) "...citizens entitled to the benefits of section 931 and the section 936 tax credit..."
(F) "...residents of Puerto Rico..."
(G) "...income tax liability incurred to the Virgin Islands..."
(H) "...income derived from Guam..."
(I) "...China Trade Act corporations..."
(J) "...income of a controlled foreign corporation..."
(K) "...income from the insurance of U.S. risks..."
(L) "...international boycott factor...attributable taxes and income under section 999..."
(M) "...income attributable to the operation of a agreement vessel under section 607 of the Merchant Marine Act of 1936..."
This is very important in light of the fact that the U.S. Supreme Court has determined that the Congress acts intentionally and purposely in the inclusion or exclusion of something in a law. Or simply, if a particular source is not on the list, it is effectively 'excluded' from 'Gross Income'.
Which of the above 'sources' does your, your employees, or your clients 'income' or 'items' derive from?...
It is not always what is in a law that is important. Sometimes what is not stated in a law is also equally important.
Especially if you're assuming something is in a law, when it clearly is not.
1.) Section 61 states that gross is income from 'sources' which are taxable.
2.) Section 861 states the 'sources' from within the U.S. are taxable in relation to foreigners.
3.) Code of Federal Regulations 26 § 1.861 only cites U.S. Citizens earning foeign income as having income from a taxable source under the law.
Let's take a look at 861. When you examine 861's regulations, you find the admission in 1.861-8 (a)(4), that income must come from a specific source to be taxable. If you examine the sources in 1.861-8 (f)(1), you will find that the domestic sources are only applicable to non-resident aliens and foreign corporations. The others listed are foreign sources that U.S. citizens would definitely be taxed upon.
To wrap up the thesis, the five sources listed in (f)(1), four of them are repeated as non-exempt income pursuant to 26 CFR section 1.861-8 (T)(d)(2)(iii). And pursuant to 1.861-8 (T)(d)(2), all income that is exempt, excluded (not listed), or eliminated from the law, is exempt income.
Since the law is so plainly structured to be taxing foreigners, and foreign earned income, we must have some specific citation of law specifically taxing U.S. citizens on their domestic source income, as the Secretary has made the list of U.S. sources that are taxable in 26 U.S.C. § 861, applicable only to foreigners.
Remember, the only form required to be filed by U.S. Citizens, pursuant to section 1.1-1 of the Code of Federal Regulations, is Form 2555 Foreign Earned Income !
Added support below...
'Exempt Income'
26 CFR § 1.861-8T(d)(2)(ii)(A)
"In general. For purposes of this section, the term "exempt income" means any income that is in whole or in part, exempt, excluded, or eliminated for federal income tax purposes." (Emphasis added)
"Exclusion" which is defined in Black's Law Dictionary, in part, as follows:
'Denial of entry or admittance.'
This law confirms our position, in simple terms according to Black's Law Dictionary, that if the income in question comes from a source 'excluded' from the law, and thus not mentioned within the law as being taxable, it cannot then meet the source requirement of section 61(a) to be "Gross income" and is by definition EXEMPT.
This is a prime example of what we mean by the statement that... What is not within a law is just as important as what is!
The simple 'rule of thumb' to remember about 'tax law' is that the entire 'Tax Code' and the topic of 'Income Tax' is built on the foundation of 'Gross Income' as defined in § 61 of the Internal Revenue Code...
************
It is widely accepted by the courts and most Americans who will comprise a jury, that in 1913 the U.S. Congress enacted the 16th Amendment to lay a tax upon incomes from "…whatever source derived…" In the case of James v. U.S. the U.S. Supreme Court has determined that the Amendment means exactly what it says, and that "source" is important.
The same phraseology is applied in 26 United States Code (Internal Revenue Code) § 61(a), which defines the "Gross income, which is ultimately taxed as "Taxable income" (26 U.S.C.§ 63) in 26 USC § 1 and a return is required to be filed on as set forth in 26 § 6012, to the effect that the actual statute states that "gross income" is income from whatever 'source' derived. This is also confirmed by the U.S. Supreme Court in the case of U.S. v. Burke as the Court again has included the stipulation of "source" in its legal determination that all of the words in the law exist within the law with purpose and authority.
Before we continue, we must examine the legal definition of "source" as set forth in Black’s Law Dictionary. The legal definition reveals that a "source" is not a thing, but is a place or circumstance.
It is at this point that the first crucial error is made by the reader of the law as the reader usually does not understand that the law means exactly what is says and is not subject to anyone’s interpretation, as even the U.S. Supreme Court lacks any such power. The error is one reading the remainder of § 61 before the list of the items 1 to 15. These items 1 through 15 have been read by millions to be "sources" of "gross income" when in fact, as set forth in the rules promulgated by the Secretary of the Treasury in 26 CFR § 1.861-8(a)(3) these items listed are not "sources" as set forth under the law but are merely "items".
Most accountants refuse to even see the word "source" in the law and thus avoid its very significance. This was done by one accountant recently, despite his pointing out that the word "source" reportedly appears 214 times in the United States Code. Such an approach renders the word "source", as employed by the Congress superfluous (of no effect) in the face of the fact that the law states that ‘items’ come from a ‘source’.
In our search for ‘sources’ we came upon 26 CFR § 1.861, the Regulations for § 861 Sources of Income from within the United States. This was the only section of law addressing U.S. source income and we hoped to find the taxable U.S. sources here. In the process we learned that we were further correct, as our understanding of the law is supported by the next rule as shown in 26 CFR §1.861-8(a)(4). This law states that in order to have taxable income, one must have items of gross income from a taxable "source" as listed in 26 CFR §1.861-8(f)(1). This next law lists all of the taxable ‘sources’ from which one must have items of income in order to have a taxable income for the purpose of the federal income tax. Upon review of this list, it should be clear to most U.S. Citizens that they never made any gross income as they never made any income from any of the taxable sources as set forth under 26 CFR § 1.861-8(f)(1).
Now, for the doubters in the crowd, it has been set forth by the Secretary of the Treasury in the Code of Federal Regulations at 26 CFR § 1.861-8(a)(1) that these are the rules that his office has set forth to be used for the purpose of determining income which is taxable for the purposes of the federal income tax.
Follow this next point...
The Congress wrote in the Amendment "…whatever source derived…", after which, the Secretary made a list of specific "sources" in the Code of Federal Regulations, the Regulation was then published in the Federal Register for correction before becoming the law as agreed to between the Congress and the Administration. Therefore, it is plain to see the legal fact that the Secretary has limited the taxable sources to those that are clearly listed in 26 CFR § 1.861-8(f)(1) for the law means exactly what it says, and the Congress has not protested the Secretary’s actions.
Furthermore, the Secretary has set this fact into stone so to speak. The fact that 26 CFR 1.861 sets forth the rules for determining taxable income for the income tax, this section of the regulations are the only such rules, there are no others. So, it is equally revealing in the Temporary Regulation of 26 CFR § 1.861-8T(d)(2)(ii)(A) that "exempt income" means income which is "excluded" from the law, and that § 1.861-8T(d)(2)(iii) lists the "Income that is not considered tax exempt". Between these two sections of regulations, that which is to be taxed is by law very limited.
Black’s Law Dictionary 6th Edition plainly states what the legal definition for an exclusion is therefore that which is denied entry under the law is "exempt income", as least in accordance with the instructions given to the IRS by the Secretary of the Treasury.
Here you have it. In the most simplistic terms available and free to all. The root of the 'income tax' is in "gross income" as defined by law. The root of "Gross income" is a specific taxable source as set forth in the law. Exempt income is income which is "exempt" (an exemption is made or given) "eliminated" (was there but is no longer as it was repealed), or "excluded" (denied entry or admittance into the law). Non exempt as set forth in the Secretary’s rules is income is that income earned by foreigners here in the U.S. and foreign earned income by U.S. Citizens.
Can you see how the claim that all U.S. Citizens are not subject to the income tax is legally incorrect? If a U.S. Citizen has 'income' from the listed 'source', then that income is then subject to the 'income tax'.
Can you see how the claim that 'the income tax' is 'unconstitutional' is legally incorrect? The 'income tax' is perfectly constitutional... and it is limited in application.
The facts reveal that most American’s income has always been "exempt income" as defined by the Secretary of the Treasury. Since we were intimidated by the volumes and volumes of words which make up all of the internal revenue laws (26 USC and CFR), abided in a belief that the government could and do us no wrong, and were terrified of the idea that we could have been acting under a law incorrectly for so long, we have not seen this simple truth that there are no U.S. taxable sources for U.S. Citizens living and working in the U.S.
We say this with renewed vigor as our position has recently undergone scrupulous examination by two CPA’s, one also being a Professor. Both were asked to provide citations of the taxable U.S. sources for U.S. Citizens living and working in the U.S., as the Secretary had set forth rules regarding Foreign income and Foreigners. Neither has bothered, or more likely, has been able to provide the law. Our position is that it doesn't exist.
Did the Secretary fail to provide such rules, or did he not have a statute to begin from?
So it is very important to understand that it is not only what a law says that is important, but also what it does not say. For what it legislates over is included in the law, that which the law does not legislate over is excluded from the law.
Indeed they do!... sources are described by the Secretary of the Treasury in the Code of Federal Regulations and are the legally binding definition of 'sources' that must apply to an income for it to be classified as 'Gross Income'..
Code of Federal Regulations § 1.861- 8(a):
"...The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code referred to in this section as operative sections. See paragraph (f)(1) of this section for a list and description of operative sections." (Emphasis added)
Would you like to look at paragraph (f)(1) mentioned above?
We thought that you might!
(be forewarned, they do not look like much, but then, that's good!)
The Federal Regulations make reference to 'sources' within the United States.. these are the only sources listed from which income must derive in order for it to be taxable for the purpose of the Income Tax.
Certain editorial contributions made by John Gill CPA & Associates
Code of Federal Regulations 1.861-8(f)(1)
(NOTE: Each of these 'sources' will be elaborated upon soon)
(i) Overall limitation to the foreign tax credit.
(ii) [Reserved]
(iii) DISC and FSC taxable income.
(iv) Effectively connected taxable income. Nonresident alien individuals and foreign corporations engaged in trade or business within the United States,...
(v) Foreign base company income.
(vi) Other operative sections.
(A) ...foreign source items of tax...
(B) ...foreign mineral income...
(C) [Reserved]
(D) "...foreign oil and gas extraction income..."
(E) "...citizens entitled to the benefits of section 931 and the section 936 tax credit..."
(F) "...residents of Puerto Rico..."
(G) "...income tax liability incurred to the Virgin Islands..."
(H) "...income derived from Guam..."
(I) "...China Trade Act corporations..."
(J) "...income of a controlled foreign corporation..."
(K) "...income from the insurance of U.S. risks..."
(L) "...international boycott factor...attributable taxes and income under section 999..."
(M) "...income attributable to the operation of a agreement vessel under section 607 of the Merchant Marine Act of 1936..."
This is very important in light of the fact that the U.S. Supreme Court has determined that the Congress acts intentionally and purposely in the inclusion or exclusion of something in a law. Or simply, if a particular source is not on the list, it is effectively 'excluded' from 'Gross Income'.
Which of the above 'sources' does your, your employees, or your clients 'income' or 'items' derive from?...
It is not always what is in a law that is important. Sometimes what is not stated in a law is also equally important.
Especially if you're assuming something is in a law, when it clearly is not.
1.) Section 61 states that gross is income from 'sources' which are taxable.
2.) Section 861 states the 'sources' from within the U.S. are taxable in relation to foreigners.
3.) Code of Federal Regulations 26 § 1.861 only cites U.S. Citizens earning foeign income as having income from a taxable source under the law.
Let's take a look at 861. When you examine 861's regulations, you find the admission in 1.861-8 (a)(4), that income must come from a specific source to be taxable. If you examine the sources in 1.861-8 (f)(1), you will find that the domestic sources are only applicable to non-resident aliens and foreign corporations. The others listed are foreign sources that U.S. citizens would definitely be taxed upon.
To wrap up the thesis, the five sources listed in (f)(1), four of them are repeated as non-exempt income pursuant to 26 CFR section 1.861-8 (T)(d)(2)(iii). And pursuant to 1.861-8 (T)(d)(2), all income that is exempt, excluded (not listed), or eliminated from the law, is exempt income.
Since the law is so plainly structured to be taxing foreigners, and foreign earned income, we must have some specific citation of law specifically taxing U.S. citizens on their domestic source income, as the Secretary has made the list of U.S. sources that are taxable in 26 U.S.C. § 861, applicable only to foreigners.
Remember, the only form required to be filed by U.S. Citizens, pursuant to section 1.1-1 of the Code of Federal Regulations, is Form 2555 Foreign Earned Income !
Added support below...
'Exempt Income'
26 CFR § 1.861-8T(d)(2)(ii)(A)
"In general. For purposes of this section, the term "exempt income" means any income that is in whole or in part, exempt, excluded, or eliminated for federal income tax purposes." (Emphasis added)
"Exclusion" which is defined in Black's Law Dictionary, in part, as follows:
'Denial of entry or admittance.'
This law confirms our position, in simple terms according to Black's Law Dictionary, that if the income in question comes from a source 'excluded' from the law, and thus not mentioned within the law as being taxable, it cannot then meet the source requirement of section 61(a) to be "Gross income" and is by definition EXEMPT.
This is a prime example of what we mean by the statement that... What is not within a law is just as important as what is!
The simple 'rule of thumb' to remember about 'tax law' is that the entire 'Tax Code' and the topic of 'Income Tax' is built on the foundation of 'Gross Income' as defined in § 61 of the Internal Revenue Code...
************
It is widely accepted by the courts and most Americans who will comprise a jury, that in 1913 the U.S. Congress enacted the 16th Amendment to lay a tax upon incomes from "…whatever source derived…" In the case of James v. U.S. the U.S. Supreme Court has determined that the Amendment means exactly what it says, and that "source" is important.
The same phraseology is applied in 26 United States Code (Internal Revenue Code) § 61(a), which defines the "Gross income, which is ultimately taxed as "Taxable income" (26 U.S.C.§ 63) in 26 USC § 1 and a return is required to be filed on as set forth in 26 § 6012, to the effect that the actual statute states that "gross income" is income from whatever 'source' derived. This is also confirmed by the U.S. Supreme Court in the case of U.S. v. Burke as the Court again has included the stipulation of "source" in its legal determination that all of the words in the law exist within the law with purpose and authority.
Before we continue, we must examine the legal definition of "source" as set forth in Black’s Law Dictionary. The legal definition reveals that a "source" is not a thing, but is a place or circumstance.
It is at this point that the first crucial error is made by the reader of the law as the reader usually does not understand that the law means exactly what is says and is not subject to anyone’s interpretation, as even the U.S. Supreme Court lacks any such power. The error is one reading the remainder of § 61 before the list of the items 1 to 15. These items 1 through 15 have been read by millions to be "sources" of "gross income" when in fact, as set forth in the rules promulgated by the Secretary of the Treasury in 26 CFR § 1.861-8(a)(3) these items listed are not "sources" as set forth under the law but are merely "items".
Most accountants refuse to even see the word "source" in the law and thus avoid its very significance. This was done by one accountant recently, despite his pointing out that the word "source" reportedly appears 214 times in the United States Code. Such an approach renders the word "source", as employed by the Congress superfluous (of no effect) in the face of the fact that the law states that ‘items’ come from a ‘source’.
In our search for ‘sources’ we came upon 26 CFR § 1.861, the Regulations for § 861 Sources of Income from within the United States. This was the only section of law addressing U.S. source income and we hoped to find the taxable U.S. sources here. In the process we learned that we were further correct, as our understanding of the law is supported by the next rule as shown in 26 CFR §1.861-8(a)(4). This law states that in order to have taxable income, one must have items of gross income from a taxable "source" as listed in 26 CFR §1.861-8(f)(1). This next law lists all of the taxable ‘sources’ from which one must have items of income in order to have a taxable income for the purpose of the federal income tax. Upon review of this list, it should be clear to most U.S. Citizens that they never made any gross income as they never made any income from any of the taxable sources as set forth under 26 CFR § 1.861-8(f)(1).
Now, for the doubters in the crowd, it has been set forth by the Secretary of the Treasury in the Code of Federal Regulations at 26 CFR § 1.861-8(a)(1) that these are the rules that his office has set forth to be used for the purpose of determining income which is taxable for the purposes of the federal income tax.
Follow this next point...
The Congress wrote in the Amendment "…whatever source derived…", after which, the Secretary made a list of specific "sources" in the Code of Federal Regulations, the Regulation was then published in the Federal Register for correction before becoming the law as agreed to between the Congress and the Administration. Therefore, it is plain to see the legal fact that the Secretary has limited the taxable sources to those that are clearly listed in 26 CFR § 1.861-8(f)(1) for the law means exactly what it says, and the Congress has not protested the Secretary’s actions.
Furthermore, the Secretary has set this fact into stone so to speak. The fact that 26 CFR 1.861 sets forth the rules for determining taxable income for the income tax, this section of the regulations are the only such rules, there are no others. So, it is equally revealing in the Temporary Regulation of 26 CFR § 1.861-8T(d)(2)(ii)(A) that "exempt income" means income which is "excluded" from the law, and that § 1.861-8T(d)(2)(iii) lists the "Income that is not considered tax exempt". Between these two sections of regulations, that which is to be taxed is by law very limited.
Black’s Law Dictionary 6th Edition plainly states what the legal definition for an exclusion is therefore that which is denied entry under the law is "exempt income", as least in accordance with the instructions given to the IRS by the Secretary of the Treasury.
Here you have it. In the most simplistic terms available and free to all. The root of the 'income tax' is in "gross income" as defined by law. The root of "Gross income" is a specific taxable source as set forth in the law. Exempt income is income which is "exempt" (an exemption is made or given) "eliminated" (was there but is no longer as it was repealed), or "excluded" (denied entry or admittance into the law). Non exempt as set forth in the Secretary’s rules is income is that income earned by foreigners here in the U.S. and foreign earned income by U.S. Citizens.
Can you see how the claim that all U.S. Citizens are not subject to the income tax is legally incorrect? If a U.S. Citizen has 'income' from the listed 'source', then that income is then subject to the 'income tax'.
Can you see how the claim that 'the income tax' is 'unconstitutional' is legally incorrect? The 'income tax' is perfectly constitutional... and it is limited in application.
The facts reveal that most American’s income has always been "exempt income" as defined by the Secretary of the Treasury. Since we were intimidated by the volumes and volumes of words which make up all of the internal revenue laws (26 USC and CFR), abided in a belief that the government could and do us no wrong, and were terrified of the idea that we could have been acting under a law incorrectly for so long, we have not seen this simple truth that there are no U.S. taxable sources for U.S. Citizens living and working in the U.S.
We say this with renewed vigor as our position has recently undergone scrupulous examination by two CPA’s, one also being a Professor. Both were asked to provide citations of the taxable U.S. sources for U.S. Citizens living and working in the U.S., as the Secretary had set forth rules regarding Foreign income and Foreigners. Neither has bothered, or more likely, has been able to provide the law. Our position is that it doesn't exist.
Did the Secretary fail to provide such rules, or did he not have a statute to begin from?
So it is very important to understand that it is not only what a law says that is important, but also what it does not say. For what it legislates over is included in the law, that which the law does not legislate over is excluded from the law.
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