konane's Blog

"Climategate: it's all unravelling now

I never knew who invented the idea of carbon credit trading and if people were never incensed about the idea this might make them think otherwise.

"Carbon trading is the Emperor’s New Clothes of international finance. It was invented by none other than Ken Lay, whose Enron would currently be one of the prime beneficiaries in the global alternative energy market, if it hadn’t been shown to be (nearly) as fraudulent as the current AGW scam. It is a licence to fleece, cheat and rob. Still, jolly embarrassing for the Danes to get caught red handed, what with their hosting a conference shortly in which the world’s leaders will try, straight-faced, to persuade us that carbon emissions trading is the only viable way of defeating ManBearPig.

"Denmark rife with CO2 fraud  at bottom of page.

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Kudos and standing applause for Australia! Hurray!

"Australia's Parliament defeats global warming bill

http://news.yahoo.com/s/ap/20091202/ap_on_re_as/climate_australia

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"Climategate: it's all unravelling now

By James Delingpole Last updated: December 2nd, 2009

Source Blogs.Telegraph.co.uk

"So many new developments: which story do we pick? Maybe best to summarise, instead. After all, it’s not like you’re going to find much of this reported in the MSM.

1. Australia’s Senate rejects Emissions Trading Scheme for a second time. Or: so turkeys don’t vote Christmas. Expect to see a lot more of this: politicians starting to become aware their party’s position on AGW is completely out of kilter with the public mood and economic reality. Kevin Rudd’s Emissions Trading Scheme – what Andrew Bolt calls “a $114 billion green tax on everything” – would have wreaked havoc on the coal-dependent Australian economy. That’s why several opposition Liberal frontbenchers resigned rather than vote with the Government on ETS; why Liberal leader Malcolm Turnbull lost his job; and why the Senate voted down the ETS.

2. Danes caught fiddling their carbon credits. (Hat tip: Philip Stott) Carbon trading is the Emperor’s New Clothes of international finance. It was invented by none other than Ken Lay, whose Enron would currently be one of the prime beneficiaries in the global alternative energy market, if it hadn’t been shown to be (nearly) as fraudulent as the current AGW scam. It is a licence to fleece, cheat and rob. Still, jolly embarrassing for the Danes to get caught red handed, what with their hosting a conference shortly in which the world’s leaders will try, straight-faced, to persuade us that carbon emissions trading is the only viable way of defeating ManBearPig.

3. Hats off to The Daily Express – the first British newspaper to make the AGW scam its front page story.

The piece was inspired by another bravura performance by Professor Ian Plimer, the Aussie geologist who argues that climate change has been going on quite naturally, oblivious of human activity, for the last 4,567 million years.

4. BBC finally gets round to reporting – sort of – that Climatic Research Unit at University of East Anglia may have been up to no good. It’s true that this report on their website is so hedged with special pleading for the temporarily suspended director Phil Jones the man might have written it himself. But on the BBC Radio 4 Today programme this morning, I did hear the newsreader reporting it as more than just a routine theft story. Which is a start.

5. Legal actions ahoy! Over the next few weeks, one thing we can be absolutely certain of is concerted efforts by the rich, powerful and influential AGW lobby to squash the Climategate story. We’ve seen this already in the “nothing to see here” response of Dr Rajendra Pachauri, the jet-setting, troll-impersonating railway engineer who runs the IPCC and wants to stop ice being served with water in restaurants. This is why those of us who oppose his scheme to carbon-tax the global economy back to the dark ages must do everything in our power to bring the scandal to a wider audience. One way to do this is law suits.

At Ian Plimer’s lunch talk yesterday, Viscount Monckton talked of at least two in the offing – both by scientists, one British, one Canadian, who intend to pursue the CRU for criminal fraud. Their case, quite simply, is that the scientists implicated in Climategate have gained funding and career advancement by twisting data, hiding evidence, and shutting out dissenters by corrupting the peer-review process. More news on this, as I hear it.

Lord Monckton has written an indispensible summary of the Climategate revelations so far.

6. Watch out Green Dave! The Independent reports on the growing backlash within the party to Cameron’s libtard-wooing greenery. Turning to the Independent for a balanced report on environmental matters is a bit like consulting Der Sturmer for a sensible, insightful view on the Jewish question. Still, for once, the house journal of eco-loonery seems to have got it right and the point made by Tory backbencher David Davis is well made:

“The ferocious determination to impose hair-shirt policies on the public – taxes on holiday flights, or covering our beautiful countryside with wind turbines that look like props from War of the Worlds – is bound to cause a reaction in any democratic country.”


http://blogs.telegraph.co.uk/news/jamesdelingpole/100018556/climategate-its-all-unravelling-now/

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"Denmark rife with CO2 fraud
Tuesday, 01 December 2009 10:08 DN News

"Authorities in several countries investigate VAT tax fraud stemming from the Danish CO2 quota register
 
Denmark is the centre of a comprehensive tax scam involving CO2 quotas, in which the cheats exploit a so-called ‘VAT carrousel’, reports Ekstra Bladet newspaper.
 
Police and authorities in several European countries are investigating scams worth billions of kroner, which all originate in the Danish quota register. The CO2 quotas are traded in other EU countries.
Denmark’s quota register, which the Energy Agency within the Climate and Energy Ministry administers, is the largest in the world in terms of personal quota registrations. It is much easier to register here than in other countries, where it can take up to three months to be approved.
 
Ekstra Bladet reporters have found examples of people using false addresses and companies that are in liquidation, which haven’t been removed from the register.
One of the cases, which stems from the Danish register, involves fraud of more than 8 billion kroner. This case, in which nine people have been arrested, is being investigated in England.
 
The market for CO2 trade has exploded in recent years and is worth an estimated 675 billion kroner globally."
 
Entry #1,547

"It's B-a-a-a-ack!

Commentary from Powerlineblog.com.  Political Cartoon by Michael Ramirez.

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It's B-a-a-a-ack!

Source Powerlineblog.com

November 27, 2009 Posted by John at 8:53 AM

"I'm the wrong guy to draw this analogy, since I never go to horror movies--they scare me. But I believe there is one long-running series featuring a serial killer who wears a hockey mask and carries a chain saw or some such thing, and keeps coming back, seemingly from the dead. That's how I'm starting to see the Democrats' government medicine plan. Try as hard as they might, the American people can't seem to kill it.

Byron York says that Harry Reid is determined to pass the Senate's version of the bill by New Year's. On paper, this seems impossible, given the short time available, the number of amendments that will be proposed by Democrats as well as Republicans, and the other issues the Senate needs to take up. Nevertheless, it may well happen. Why? Because the bill is so unpopular:

[T]he biggest problem for Democrats, by far, is that public support for the bill is slowly and steadily falling. According to Pollster.com, the average of all the polls done on health care shows 48.7 percent of Americans opposed to the bill, and 39.5 percent in favor. The gap between disapproval and approval has never been bigger.

The reason the Democratic leadership and the White House are rushing to pass the bill is that they know it is killing them and believe doing it quickly will kill fewer of them than doing it slowly. If they pass it by year's end, perhaps voters will move on to other concerns by the November 2010 midterm elections.

Ever since the Obama administration took office, a common refrain has been, "How dumb do they think we are?" It seems the Democrats believe that voters are not just stupid, but forgetful as well.

MichaelBarone, meanwhile, notes that the federal deficit is now running at 10 percent of GDP, a figure never before approached in peacetime. The Democrats' health care measures, once they kick in, are projected to add another $1.8 trillion in federal spending, and that figure, appalling as it is, is undoubtedly far too low. Nevertheless, the Democrats are "unfazed":

That suggests that, at least for some Democrats, huge looming budget deficits are not a bug but a feature. Just as Ronald Reagan hoped that cutting taxes would force politicians to cut spending, these Democrats hope that increasing spending will force politicians to increase taxes to levels common in Western Europe. ...

[Poll data on the economy] mirrors voters' current opposition to Democratic health care bills. Democratic leaders nonetheless want to jam one through before their current majorities are eroded, as they seem likely to be, in the 2010 elections. This is politically risky, but makes sense if your goal is to expand government.

So the battle over health care is not just about health care. It's about whether government will permanently gobble up more of the private-sector economy -- and slow it down in the process.

I think that's right. I don't believe that Democrats in Congress actually disagree with the majority of voters who expect a government takeover of medicine to result in worse health care at a higher cost. Rather, the Democrats believe that degraded health care is an acceptable price to pay for what they are really after--government domination over the life of every citizen. Whether the American people understand how profound is the Democrats' assault on their liberties, and will be willing to do what it takes to throw the greedy rascals out of power, remains to be seen."



http://www.powerlineblog.com/archives/2009/11/025033.php

Entry #1,544

Two Medical Students

Big Grin

Two Medical Students

Two  medical students were walking along the street when they saw  an old man walking with his legs spread apart. He was  stiff-legged and walking  slowly.

One student said to his friend:  "I'm sure that poor old man has Peltry Syndrome. Those people  walk just like that."

The other student says: "No, I don't  think so. The old man surely has Zovitzki Syndrome.. He  walks slowly and his legs are apart, just as we learned in  class."

Since they couldn't agree they decided  to ask the old man. They approached him and one of the  students said to him, "We're medical students and couldn't  help but notice the way you walk, but we couldn't agree on the  syndrome you might have.  Could you tell us what it  is?"

The old man said, "I'll tell you, but  first you tell me what you two fine medical students  think."

The first student said, "I think it's  Peltry  Syndrome."
The  old man said, "You thought - but you are  wrong."
The  other student said, "I think you have Zovitzki  Syndrome."
The  old man said, "You thought - but you are  wrong."
So  they asked him, "Well, old timer, what do you  have?"

The old man said, "I thought it was GAS  - but I was wrong,  too!"

Entry #1,543

"Rigging a Climate 'Consensus'

Spot on.       Smash

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"Rigging a Climate 'Consensus'

About those emails and 'peer review.'
Source Wall Stree Journal

"The climatologists at the center of the leaked email and document scandal have taken the line that it is all much ado about nothing. Yes, the wording of their messages was unfortunate, but they insist this in no way undermines the underlying science. They're ignoring the damage they've done to public confidence in the arbiters of climate science.

"What they've done is search through stolen personal emails—confidential between colleagues who often speak in a language they understand and is often foreign to the outside world," Penn State's Michael Mann told Reuters Wednesday. Mr. Mann added that this has made "something innocent into something nefarious."

Phil Jones, director of the University of East Anglia's Climate Research Unit, from which the emails were lifted, is singing from the same climate hymnal. "My colleagues and I accept that some of the published emails do not read well. I regret any upset or confusion caused as a result. Some were clearly written in the heat of the moment, others use colloquialisms frequently used between close colleagues," he said this week.

We don't doubt that Mr. Jones would have phrased his emails differently if he expected them to end up in the newspaper. He's right that it doesn't look good that his May 2008 email to Mr. Mann regarding the U.N.'s Fourth Assessment Report said "Mike, Can you delete any emails you may have had with Keith re AR4?" Mr. Mann says he didn't delete any such emails, but the point is that Mr. Jones wanted them hidden.

The furor over these documents is not about tone, colloquialisms or whether climatologists are nice people. The real issue is what the messages say about the way the much-ballyhooed scientific consensus on global warming was arrived at, and how a single view of warming and its causes is being enforced. The impression left by the correspondence among Messrs. Mann and Jones and others is that the climate-tracking game has been rigged from the start.

According to this privileged group, only those whose work has been published in select scientific journals, after having gone through the "peer-review" process, can be relied on to critique the science. And sure enough, any challenges from critics outside this clique are dismissed and disparaged.

This September, Mr. Mann told a New York Times reporter in one of the leaked emails that: "Those such as [Stephen] McIntyre who operate almost entirely outside of this system are not to be trusted." Mr. McIntyre is a retired Canadian businessman who checks the findings of climate scientists and often publishes the mistakes he finds on his Web site, Climateaudit.org. He holds the rare distinction of having forced Mr. Mann to publish a correction to one of his more famous papers.

As anonymous reviewers of choice for certain journals, Mr. Mann & Co. had considerable power to enforce the consensus, but it was not absolute, as they discovered in 2003. Mr. Mann noted in a March 2003 email, after the journal "Climate Research" published a paper not to Mr. Mann's liking, that "This was the danger of always criticising the skeptics for not publishing in the 'peer-reviewed literature'. Obviously, they found a solution to that—take over a journal!"

Mr. Mann went on to suggest that the journal itself be blackballed: "Perhaps we should encourage our colleagues in the climate research community to no longer submit to, or cite papers in, this journal. We would also need to consider what we tell or request of our more reasonable colleagues who currently sit on the editorial board." In other words, keep dissent out of the respected journals. When that fails, redefine what constitutes a respected journal to exclude any that publish inconvenient views.

A more thoughtful response to the emails comes from Mike Hulme, another climate scientist at the University of East Anglia, as reported by a New York Times blogger:

"This event might signal a crack that allows for processes of re-structuring scientific knowledge about climate change. It is possible that some areas of climate science has become sclerotic. It is possible that climate science has become too partisan, too centralized. The tribalism that some of the leaked emails display is something more usually associated with social organization within primitive cultures; it is not attractive when we find it at work inside science."

The response from the defenders of Mr. Mann and his circle has been that even if they did disparage doubters and exclude contrary points of view, theirs is still the best climate science. The proof for this is circular. It's the best, we're told, because it's the most-published and most-cited—in that same peer-reviewed literature. The public has every reason to ask why they felt the need to rig the game if their science is as indisputable as they claim."

http://online.wsj.com/article/SB10001424052748703499404574559630382048494.html?mod=googlenews_wsj

Entry #1,542

"BREAKING: New Zealand's NIWA accused of CRU-style temperature faking

Am linking to this because of graphs in original article which won't copy to this page.  Looks like those emails are causing a ripple effect felt around the world.

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"BREAKING: NZ’s NIWA accused of CRU-style temperature faking

Source TBR.cc Investigate Magazine 


http://briefingroom.typepad.com/the_briefing_room/2009/11/breaking-nzs-niwa-accused-of-cru-style-temperature-faking.html

Entry #1,541

"Climategate e-mails sweep America, may scuttle Barack Obama's Cap and Trade laws

"Climategate e-mails sweep America, may scuttle Barack Obama's Cap and Trade laws 

By Gerald Warner Last updated: November 26th, 2009

Source  Blogs.Telegraph.co.uk

"Just a few considerations in addition to previous remarks about the explosion of the East Anglia Climategate e-mails in America. The reaction is growing exponentially there. Fox News, Barack Obama’s Nemesis, is now on the case, trampling all over Al Gore’s organic vegetable patch and breaking the White House windows. It has extracted some of the juiciest quotes from the e-mails and displayed them on-screen, with commentaries. Joe Public, coast-to-coast, now knows, thanks to the clowns at East Anglia’s CRU, just how royally he has been screwed.

Senator James Inhofe’s Senate Committee on Environment and Public Works has written to all the relevant US Government agencies, acquainting them with the nature of the e-mails. But the real car crash for Obama is on Capitol Hill where it is now confidently believed his Cap and Trade climate legislation is toast. It was always problematic; but with a growing awakening to the scale of the scientific imposture sweeping the world, as far as the Antipodes, the clever money is on Cap and Trade laws failing to pass, with many legislators sceptical and the mid-term elections looming ever closer.

At the more domestic level, the proposed ban on incandescent light bulbs, so supinely accepted in this servile state of Britain, is now provoking a huge backlash in America. US citizens do not like the government coming into their houses and putting their lights out. Voters may not understand the cut and thrust of climate debate at the technical level, but they know when the Man from Washington has crossed their threshold uninvited.

The term that Fox News is now applying to the Climategate e-mails is “game-changer”. For the first time, Anthropogenic Global Warming cranks are on the defensive, losing their cool and uttering desperate mantras such as “You can be sceptical, not denial.” Gee, thanks, guys. In fact we shall be whatever we want to be, without asking your permission.

At this rate, Copenhagen is going to turn into a comedy convention with the real world laughing at these liars. Now is the time to mount massive resistance to the petty tyrants and hit them where it hurts – in the wallet. Further down the line there may be, in many countries, a question of criminal prosecution of anybody who has falsified data to secure funds and impose potentially disastrous fiscal restraints on the world in deference to a massive hoax. It’s a new world out there, Al, and, as you may have noticed, the climate is very cold indeed."


http://blogs.telegraph.co.uk/news/geraldwarner/100018034/climategate-%20%20e-mails-sweep-america-may-scuttle-barack-obamas-cap-and-trade-laws/

Entry #1,540

"Pretending the climate email leak isn't a crisis won't make it go away

"Pretending the climate email leak isn't a crisis won't make it go away

Source George Monbiot's Blog, Guardian.co.uk

"Climate sceptics have lied, obscured and cheated for years. That's why we climate rationalists must uphold the highest standards of science

I have seldom felt so alone. Confronted with crisis, most of the environmentalists I know have gone into denial. The emails hacked from the Climatic Research Unit (CRU) at the University of East Anglia, they say, are a storm in a tea cup, no big deal, exaggerated out of all recognition. It is true that climate change deniers have made wild claims which the material can't possibly support (the end of global warming, the death of climate science). But it is also true that the emails are very damaging.

The response of the greens and most of the scientists I know is profoundly ironic, as we spend so much of our time confronting other people's denial. Pretending that this isn't a real crisis isn't going to make it go away. Nor is an attempt to justify the emails with technicalities. We'll be able to get past this only by grasping reality, apologising where appropriate and demonstrating that it cannot happen again.

It is true that much of what has been revealed could be explained as the usual cut and thrust of the peer review process, exacerbated by the extraordinary pressure the scientists were facing from a denial industry determined to crush them. One of the most damaging emails was sent by the head of the climatic research unit, Phil Jones. He wrote "I can't see either of these papers being in the next IPCC report. Kevin and I will keep them out somehow - even if we have to redefine what the peer-review literature is!"

One of these papers which was published in the journal Climate Research turned out to be so badly flawed that the scandal resulted in the resignation of the editor-in-chief. Jones knew that any incorrect papers by sceptical scientists would be picked up and amplified by climate change deniers funded by the fossil fuel industry, who often – as I documented in my book Heat – use all sorts of dirty tricks to advance their cause.

Even so, his message looks awful. It gives the impression of confirming a potent meme circulated by those who campaign against taking action on climate change: that the IPCC process is biased. However good the detailed explanations may be, most people aren't going to follow or understand them. Jones's statement, on the other hand, is stark and easy to grasp.

In this case you could argue that technically he has done nothing wrong. But a fat lot of good that will do. Think of the MPs' expenses scandal: complaints about stolen data, denials and huffy responses achieved nothing at all. Most of the MPs could demonstrate that technically they were innocent: their expenses had been approved by the Commons office. It didn't change public perceptions one jot. The only responses that have helped to restore public trust in Parliament are humility, openness and promises of reform.

When it comes to his handling of Freedom of Information requests, Professor Jones might struggle even to use a technical defence. If you take the wording literally, in one case he appears to be suggesting that emails subject to a request be deleted, which means that he seems to be advocating potentially criminal activity. Even if no other message had been hacked, this would be sufficient to ensure his resignation as head of the unit.

I feel desperately sorry for him: he must be walking through hell. But there is no helping it; he has to go, and the longer he leaves it, the worse it will get. He has a few days left in which to make an honourable exit. Otherwise, like the former Speaker of the House of Commons, Michael Martin, he will linger on until his remaining credibility vanishes, inflicting continuing damage to climate science.

Some people say that I am romanticising science, that it is never as open and honest as the Popperian ideal. Perhaps. But I know that opaqueness and secrecy are the enemies of science. There is a word for the apparent repeated attempts to prevent disclosure revealed in these emails: unscientific.

The crisis has been exacerbated by the university's handling of it, which has been a total trainwreck: a textbook example of how not to respond. RealClimate reports that "We were made aware of the existence of this archive last Tuesday morning when the hackers attempted to upload it to RealClimate, and we notified CRU of their possible security breach later that day." In other words, the university knew what was coming three days before the story broke. As far as I can tell, it sat like a rabbit in the headlights, waiting for disaster to strike.

When the emails hit the news on Friday morning, the university appeared completely unprepared. There was no statement, no position, no one to interview. Reporters kept being fobbed off while CRU's opponents landed blow upon blow on it. When a journalist I know finally managed to track down Phil Jones, he snapped "no comment" and put down the phone. This response is generally taken by the media to mean "guilty as charged". When I got hold of him on Saturday, his answer was to send me a pdf called "WMO statement on the status of the global climate in 1999". Had I a couple of hours to spare I might have been able to work out what the heck this had to do with the current crisis, but he offered no explanation.

By then he should have been touring the TV studios for the past 36 hours, confronting his critics, making his case and apologising for his mistakes. Instead, he had disappeared off the face of the Earth. Now, far too late, he has given an interview to the Press Association, which has done nothing to change the story.

The handling of this crisis suggests that nothing has been learnt by climate scientists in this country from 20 years of assaults on their discipline. They appear to have no idea what they're up against or how to confront it. Their opponents might be <snip>s, but their media strategy is exemplary.

The greatest tragedy here is that despite many years of outright fabrication, fraud and deceit on the part of the climate change denial industry, documented in James Hoggan and Richard Littlemore's brilliant new book Climate Cover-up, it is now the climate scientists who look bad. By comparison to his opponents, Phil Jones is pure as the driven snow. Hoggan and Littlemore have shown how fossil fuel industries have employed "experts" to lie, cheat and manipulate on their behalf. The revelations in their book (as well as in Heat and in Ross Gelbspan's book The Heat Is On) are 100 times graver than anything contained in these emails.

But the deniers' campaign of lies, grotesque as it is, does not justify secrecy and suppression on the part of climate scientists. Far from it: it means that they must distinguish themselves from their opponents in every way. No one has been as badly let down by the revelations in these emails as those of us who have championed the science. We should be the first to demand that it is unimpeachable, not the last."

http://www.guardian.co.uk/environment/georgemonbiot/2009/nov/25/monbiot-climate-leak-crisis-response

Entry #1,539

"Judge wipes out $500,000 debt to punish 'repulsive' bank

The bank will no doubt appeal this 'til the cows come home, but for now a victory for the homeowners. 

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November 26, 2009
"Judge wipes out $500,000 debt to punish 'repulsive' bank
Source TimesOnline.co.uk

"Greg and Diane Horoski’s story may seem familiar. They bought their home before the boom and, when house prices soared, increased their mortgage to finance a small business.
 
Interest rates rose, health bills poured in, and then the housing market crashed so that they ended up owing thousands of dollars more than their bungalow was worth.
 
Yesterday they went to court in New York expecting to be thrown out — but instead they emerged with their debt of $500,000 (£300,000) written off and a mortgage-free home.
 
Judge Jeffrey Spinner ruled that their lender’s behaviour had been “harsh, repugnant, shocking and repulsive to the extent that it must be appropriately sanctioned so as to deter it from imposing further mortifying abuse”.
 
The decision, which is to be the subject of an appeal, offered possible relief for some of the 7.5 million Americans who are behind with their mortgages and face losing their homes. One in seven homes in America is now in the process of being repossessed as many families find it impossible to pay off the high-interest mortgages that were handed out in abundance when the property market was at its height.
 
The Horoskis were just one couple caught up in what the judge called the “yawning abyss of a deep mortgage and housing crisis”.
 
Mrs Horoski, an English professor, bought the 3,400 sq ft (315 sq m) bungalow 15 years ago for less than $200,000. In 2004, after the value of the home soared, she refinanced with a mortgage for $292,500 from Deutsche Bank at an initial interest rate of 10.375 per cent that rose as high as 12.5 per cent.
 
The couple, both of whom have medical problems and who live with their adult daughter, used the extra money for healthcare and to help to finance Mr Horoski’s online business selling collectable dolls. But the value of their home plummeted in the property crash and is now appraised at no more than $275,000 — less than the mortgage.
 
The Horoskis thus joined the one in four Americans “under water” on their mortgages — the US term for “negative equity”.
 
Facing financial difficulties because of Mr Horoski’s health problems, the couple began having trouble making the mortgage payments in 2005. IndyMac Bank, a division of the California-based OneWest Bank, which services the loan for Deutsche Bank, sought to evict the couple.
 
IndyMac claimed that with interest and penalties they owed more than $527,437. Because the case involved a high-interest “sub-prime” mortgage, the bank was required by New York state law to attend a court conference to seek a settlement that would keep the owners in their home before completing the foreclosure. The bank, however, rejected repeated offers by the Horoskis to make reduced monthly payments with help from their adult daughter. It flatly turned down an offer by the daughter to buy the house for its current value with money from another lender to pay off the bulk of the mortgage.
 
The judge was outraged and accused the bank’s representatives of an “opprobrious demeanour and condescending attitude”. He pointed out that the Horoskis had turned up for court on six occasions, despite Mrs Horoski’s difficulty in walking and her husband’s many health problems.
 
“At each appearance, they have assiduously attempted to resolve this controversy in an amicable fashion, only to be callously and arbitrarily turned away,” he wrote.
 
Eviction would leave the Horoskis and their daughter homeless, “leading to an additional level of problems, both for them and for society”. The mortgage was “hereby cancelled, voided, avoided, nullified, set aside and is of no further force and effect”.
 
Mr Horoski told the New York Post that negotiating with the bank was “like dealing with organised crime”. He said: “I think the judge felt it was almost a personal vendetta. The bank was so intransigent that he decided to punish them.”
 
OneWest said that it “respectfully disagreed” with the judge’s decision and would appeal."
 
Entry #1,538

"Global Warming Bombshell

Article quoted exactly from Powerlineblog.com.  Three links below are referenced in the first paragraph of their commentary.

Yellow highlighting added by me.

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"The Alarmists Do "Science": A Case Study
http://www.powerlineblog.com/archives/2009/11/024995.php
 
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"More From the East Anglia Archives

Source Powerlineblog.com   November 23, 2009 Posted by John at 7:00 PM

"We've written about the leaked emails and other documents from the University of East Anglia's Climatic Research Center here, here and here. Another intensely interesting email thread, which doesn't seem to have gotten much notice, relates to the fact that the last decade, contrary to the alarmists' predictions, has tended to get cooler, not warmer.

At the end of 2008, the scientists at East Anglia predicted that 2009 would be one of the warmest years on record:

On December 30, climate scientists from the UK Met Office and the University of East Anglia projected 2009 will be one of the top five warmest years on record. Average global temperatures for 2009 are predicted to be 0.4∞C above the 1961-1990 average of 14 ∫ C. A multiyear forecast using a Met Office climate model indicates a rapid return of global temperature to the long-term warming trend, with an increasing probability of record temperatures after 2009.

We know now that the alarmists' prediction for 2009 didn't come true. What's interesting is that in January of this year, another climate alarmist named Mike MacCracken wrote to Phil Jones and another East Anglia climatologist, saying that their predicted warming may not occur:

Your prediction for 2009 is very interesting...and I would expect the analysis you have done is correct. But, I have one nagging question, and that is how much SO2/sulfate is being generated by the rising emissions from China and India.... While I understand there are efforts to get much better inventories of CO2 emissions from these nations, when I asked a US EPA representative if their efforts were going to also inventory SO2 emissions (amount and height of emission), I was told they were not. So, it seems, the scientific uncertainty generated by not having good data from the mid-20th century is going to be repeated in the early 21st century (satellites may help on optical depth, but it would really help to know what is being emitted).

That there is a large potential for a cooling influence is sort of evident in the IPCC figure about the present sulfate distribution--most is right over China, for example, suggesting that the emissions are near the surface--something also that is, so to speak, 'clear' from the very poor visibility and air quality in China and India. So, the quick, fast, cheap fix is to put the SO2 out through tall stacks. The cooling potential also seems quite large as the plume would go out over the ocean with its low albedo--and right where a lot of water vapor is evaporated, so maybe one pulls down the water vapor feedback a little and this amplifies the sulfate cooling influence.

Now, I am not at all sure that having more tropospheric sulfate would be a bad idea as it would limit warming--I even have started suggesting that the least expensive and quickest geoengineering approach to limit global warming would be to enhance the sulfate loading.... Sure, a bit more acid deposition, but it is not harmful over the ocean.... Indeed, rather than go to stratospheric sulfate injections, I am leaning toward tropospheric, but only during periods when trajectories are heading over ocean and material won't get rained out for 10 days or so.

In any case, if the sulfate hypothesis is right, then your prediction of warming might end up being wrong. I think we have been too readily explaining the slow changes over past decade as a result of variability--that explanation is wearing thin. I would just suggest, as a backup to your prediction, that you also do some checking on the sulfate issue, just so you might have a quantified explanation in case the prediction is wrong.

Otherwise, the Skeptics will be all over us--the world is really cooling, the models are no good, etc.

Sulphur dioxide, like carbon dioxide, is emitted as a result of industrial activity. Unlike carbon dioxide, it is actually a pollutant. But whereas carbon dioxide tends to warm, sulphur dioxide tends to cool, and MacCracken suggests that SO2 emissions from China and India may well be offsetting the temperature impact of CO2. The net effect of human activity, therefore, may be much closer to neutral than the alarmists have been claiming.

How did the British scientists, whose careers are committed to the proposition that human activity is causing catastrophic warming of the globe, respond? Surprisingly, Tim Johns reacted with insouciance:

Mike McCracken makes a fair point. I am no expert on the observational uncertainties in tropospheric SO2 emissions over the recent past, but it is certainly the case that the SRES A1B scenario (for instance) as seen by different integrated assessment models shows a range of possibilities. In fact this has been an issue for us in the ENSEMBLES project, since we have been running models with a new mitigation/stabilization scenario "E1" (that has large emissions reductions relative to an A1B baseline, generated using the IMAGE IAM) and comparing it with A1B (the AR4 marker version, generated by a different IAM). The latter has a possibly unrealistic secondary SO2 emissions peak in the early 21st C - not present in the IMAGE E1 scenario, which has a steady decline in SO2 emissions from 2000. The A1B scenario as generated with IMAGE also show a decline rather than the secondary emissions peak, but I can't say for sure which is most likely to be "realistic".

The impact of the two alternative SO2 emissions trajectories is quite marked though in terms of global temperature response in the first few decades of the 21st C (at least in our HadGEM2-AO simulations, reflecting actual aerosol forcings in that model plus some divergence in GHG forcing). Ironically, the E1-IMAGE scenario runs, although much cooler in the long term of course, are considerably warmer than A1B-AR4 for several decades! Also - relevant to your statement - A1B-AR4 runs show potential for a distinct lack of warming in the early 21st C, which I'm sure skeptics would love to see replicated in the real world... (See the attached plot for illustration but please don't circulate this any further as these are results in progress, not yet shared with other ENSEMBLES partners let alone published). We think the different short term warming responses are largely attributable to the different SO2 emissions trajectories.

So far we've run two realisations of both the E1-IMAGE and A1B-AR4 scenarios with HadGEM2-AO, and other partners in ENSEMBLES are doing similar runs using other GCMs. Results will start to be analysed in a multi-model way in the next few months. CMIP5 (AR5) prescribes similar kinds of experiments, but the implementation details might well be different from ENSEMBLES experiments wrt scenarios and their SO2 emissions trajectories (I haven't studied the CMIP5 experiment fine print to that extent).

Cheers,
Tim

Got that? Here is a translation: assumptions about SO2 emissions do have a "quite marked...impact" on global temperatures under the warmists' various models. What impact they have varies from model to model. Which model is correct (if any)? Who knows? But as a result of increased SO2 in the atmosphere, there is "potential for a distinct lack of warming in the early 21st C."

That must come as a great relief, since everyone involved in this exchange has been telling the public that global warming is an imminent catastrophe. But no! The prospect of a "distinct lack of warming in the early 21st C[entury]" is bad, because "skeptics" would "love" it!

Phil Jones, Director of the Climate Research Unit, now weighs in. Does he welcome the idea that, contrary to his own predictions, there may be little or no warming in coming decades? No!

Tim, Chris,

I hope you're not right about the lack of warming lasting till about 2020. I'd rather hoped to see the earlier Met Office press release with Doug's paper that said something like -half the years to 2014 would exceed the warmest year currently on record, 1998!

Still a way to go before 2014.

I seem to be getting an email a week from skeptics saying where's the warming gone. I know the warming is on the decadal scale, but it would be nice to wear their smug grins away.

Better that the Earth experience the cataclysm of global warming than that the skeptics be proved right? It makes one wonder how seriously Jones believes in the catastrophe of global warming. Jones then frets about whether the weather is really as cool as the weathermen are saying:

Chris - I presume the Met Office continually monitor the weather forecasts. Maybe because I'm in my 50s, but the language used in the forecasts seems a bit over the top re the cold. Where I've been for the last 20 days (in Norfolk) it doesn't seem to have been as cold as the forecasts.

So the very climate scientists who keep saying that global warming will be an unparalleled disaster for humanity are telling the Earth: Heat up, <snip> it!

But let's go back to the main point. Apparently the alarmist climatologists acknowledge that SO2, frequently emitted in conjunction with CO2, nullifies, wholly or in part, any warming tendency associated with the CO2. What is the net effect? This is, obviously, an empirical, quantitative question. But these scientists can't answer it, not only because each of their models gives a different result, but because they have no idea how much SO2 is being emitted by the main countries that produce that pollutant, India and China. Having no idea what the facts are, their models are useless. It does appear, however, that one obvious alternative to impoverishing humanity in a most-likely-futile effort to stave off global warming would be emitting a whole lot of SO2 over the ocean, and continuing those emissions indefinitely rather than banning them as is currently contemplated by the warmists' models.

Climate science is in its infancy, and every proposition is controversial. What climate scientists like those at East Anglia don't know dwarfs what they do know. They can produce a model for every occasion, but are the models any good? If so, which one? One thing we know for sure is that they don't generate reliable predictions. In every scientific field other than global warming, a scientific hypothesis that generates false predictions is considered disproved. When it comes to global warming, however, there is no such thing as falsification. Which is the ultimate evidence that the alarmist scientists are engaged in a political enterprise, not a scientific one.

UPDATE: A reader writes:

You are doing a solid job interpreting the CRU emails and their implications. Thank you.

I am professionally close to this subject (not academically, I do decision analysis for a large 'emitter'), so must request to remain anonymous. However, one thing I would point out is that at least temporally (correlation, not causation), the 'scrubbing' of coal in the US corresponds very closely with the warming of the 80's and 90's, and the warming slowing in he aughts. Since the 80's large numbers of US coal plants have been 'scrubbed' removing both Nitrous Oxides (NOx) and Sulfur Dioxides (SO2), or shut down. Previous to that, my suspicion was that the warming effects were relatively balanced between the CO2 warming and the SO2 cooling, but the environmental movement forced the removal of the SO2, imbalancing things from a temperature perspective. I don't mean to paint with too broad a brush, as some should certainly have been scrubbed for acid rain issues, however, they (environmentalists/regulators) did paint with too broad a brush, and coal plants with no acid rain problems, such as those along the Atlantic coast, were and are being forced to scrub or shut. Plants in the midwest were causing acid rain in the east, and should have been scrubbed. Those on the eastern seaboard should not have been forced to scrub (at rate payers expense), because it was ending up in the ocean, where it was doing minimal if any harm. But they were and are all being forced to scrub or shut (the cap and trade is a sham, the real action is in the emission rate regulation, thus the collapse of the emission prices...you are theoretically allowed to continue to emit by purchasing an offsetting credit from someone who reduced theirs so much they have extra emission allowances, but states mandate your emission rates be so low that you are forced to scrub to meet them, regardless of how many allowances you have or buy.)

I personally have a physics eduction, and the fact the IPCC models ignore the solar forcing is an absolute travesty of science. The sun plays a significant role. That is not to say that CO2 is unimportant, but it is impossible to know how much without taking the sun into account.

Another interesting connection with the role of SO2 is 'the year without a summer' 1816, a confluence of low solar activity (are you following the sunspot cycle?) along with a large injection of SO2 from the Mt. Tambora volcanic eruption. There were snowstorms (not frost, accumulation) throughout eastern canada and the northeast and mid atlantic states. In July and August. A year after the eruption.

Anyway, good job on the coverage, keep digging, the truth will out."

http://www.powerlineblog.com/archives/2009/11/025011.php

Entry #1,537

YouTube - WHO advisors paid by H1N1 vaccine makers profiting on fear?

Sidebar comment on YouTube:  It's the kind of information that fuels conspiracy theoristseverywhere... Danish journalists claim several World HealthOrganisation advisers are on the payroll of leading pharmaceuticalcompanies that make swine flu vaccines. RT talks to Louise Volle, ajournalist at the Danish Daily Information newspaper and a co-author ofthe report.

Entry #1,536

"New EU President Rompuy announces 2009 as "first year of global governance"

"New EU President Rompuy announces 2009 as "first year of global governance"

Sees Copenhagen as step towards global management

Old-Thinker News | Nov. 20, 2009

By Daniel Taylor

"The new EU President, Herman Van Rompuy, has proclaimed 2009 as the "first year of global governance." During Rompuy's intervention as President on November 19th, hestated,

"2009 is also the first year of global governance, with the establishment of the G20 in the middle of the financial crisis. The climate conference in Copenhagen is another step towards the global management of our planet."

Rompuy attended a Bilderberg dinner at Hertoginnendal, Brussels on November 15th, during which he announced a plan to implement EU wide taxes that will be paid directly to Brussels. Recently Mario Borghezio (Italy), member of the European Parliament,spoke openly against the influence of globalist organizations such as the Bilderberg Group and the Trilateral Commission. "Is it possible that no one has noticed that all 3 (EU Presidential candidates) frequently attend Bilderberg or Trilateral meetings?," asked Borghezio. Rompuy will undoubtedly serve globalist interests during his reign of the European Union."

http://oldthinkernews.com/Articles/oldthinker%20news/new_eu_president_herman_van_romp.htm

Entry #1,534

"Red Alert: The Second Wave of The Financial Tsunami ... first & second quarter of 2010

Rather long but interesting opinion.

______________

"Red Alert: The Second Wave of The Financial Tsunami
The Wave Is gathering force & could hit between the first & second quarter of 2010


by Matthias Chang
Global Research, November 22, 2009
Future Fast Forward

"Many of my friends who have been receiving my e-mail alerts over the last two years have lamented that in recent weeks I have not commented on the state of the global economy. I appreciate their anxiety but they forget that I am not a stock market analyst who is paid to write articles to lure investors back into the market. My website is free and I do not sell a financial newsletter so there is no need for me to churn out daily forecasts or analysis.

However, when the data is compelling and supports an inevitable trend, it is time for another review. This Red Alert is to enable visitors to my website to take appropriate actions to safeguard their wealth and welfare of their families in the coming months.

Since the last quarter of 2008, unrelenting currency warfare has been waged by the key global economies and while this competition thus far has been non-antagonistic, it will soon be antagonistic because the inherent differences are irreconcilable. The consequences to the global economy will be devastating and for the ordinary people, massive unemployment and social unrest are assured.

The policy-makers of these countries faced with the total collapse of the international financial architecture have concluded that the solution, the only solution is quantitative easing (i.e. massive injection of liquidity) to salvage the “too big to fail” banks and reflate their depressed economies. This is best reflected in Bernanke’s candid remark that, “the US government has a technology, called the printing press (or today, its electronic equivalent), that allows it to produce as many US dollars as it wishes at essentially no cost”.

This is the crux of the problem!

The Irreconcilable Differences

Some two decades ago, it was decided by the global financial elites that the framework for the global economy shall consist of:

1) A global derivative-based financial system, controlled by the US Federal Reserve Bank and its associate global banks in the developed countries.

2) The re-location from the West to the East in the production of goods, principally to China and India to “feed” the developed economies.

The entire system was built on a simple principle, that of a FED-controlled global reserve currency which will be the engine for growth for the global economy. It is essentially an imperialist economic principle.

Once we grasp this fundamental truth, Bernanke’s boast that the “US can produce as many US dollars as it wishes at no cost” takes on a different dimension.

I have talked to so many economists and when asked what is the crux of the present financial problem, they all respond in unison, “it is the global imbalances... the West consumes too much while the East saves too much and consumes not enough”. This is exemplified by the huge US trade deficits on the one part and China’s massive surpluses on the other.

Incredible wisdom and almost everyone echoes this mantra. The recent concluded APEC Summit was no different. This mantra was repeated as well as the call for freer trade between trading nations.

This is a grand hoax. All the current leaders on the world’s stage are corrupted to the rotten core and as such have no interest to call a spade a spade and expose the inherent contradictions within the existing financial system.

The call for a multi-polar world is meaningless when the entire global financial system is based on the unipolar US dollar reserve currency. This is the inherent contradiction within the present system and the problems associated with it cannot be resolved by another global reserve currency based on the IMF’s Special Drawing Rights as advocated by some countries. It was stillborn, the very moment it was conceived!

The leaders of China, Japan and the oil producing countries of the Middle East are all cursing and pissing about the current situation, but they don’t have the courage of their convictions to spell it out to their countrymen that they have been conned by the financial spin masters from the Fed acting on the instructions from Goldman Sachs.

Tell me which leader would dare admit that they have exchanged the nation’s wealth for toilet papers?

The toilet paper currency pantomime continues.

We have now reached a stalemate in the current currency war, not unlike the situation of the Cold War between the NATO pact countries and the Warsaw pact countries. Both sides were deterred by the MAD (Mutually Assured Destruction) doctrine of nuclear wars. The costs to both sides were horrendous and it was only when the Soviet Union could not continue with the pace and cost of maintaining a nuclear deterrent and was forced into bankruptcy that the balance tilted in favour of the NATO alliance.

But it was a pyrrhic victory for the US and it allies. What kept the ability of the US to maintain its military might and outspend the Soviet Union was the right to print toilet paper currency and the acceptance of the US dollar by her allies as the world’s reserve currency.

But why did the countries allied to the US during the Cold War accepted the status quo?

Simple! They were all conned into believing that without the protection of Big Brother and its military outreach, they would be swallowed up by the communist menace. They agreed to march to the tune of the US Pied-Piper.

The next big question – why did the so-called “liberated” former communist allies of the Soviet bloc jump on the bandwagon?

Simple! They all believed in the illusion that was fostered by the global banks, led by Goldman Sachs that trading and selling their goods and services for the toilet paper US reserve currency would ensure untold wealth and prosperity.

But the biggest game in town was the Asia gambit. Japan, after a decade of recession following the burst of her property bubble did not have the means and the capacity to bring the game to the next level as envisaged by the financial architects in Goldman Sachs.

And China was the biggest beneficiary. The senior management of Goldman Sachs brokered a secret pact with China’s leaders that in exchange for orchestrating the most massive injection of US dollar capital and wholesale re-location of manufacturing capacity in the history of the global economy, China would recycle their hard-earned US toilet paper reserve currency wealth into US treasuries and other US debt instruments.

This was the necessary condition precedent for the global financial casino to rise to the next level of play.

Why?

The New Game

The financial architects at Goldman Sachs had a master plan – to dominate the global financial system. The means to achieve this financial power was the Shadow Banking System, the lynchpin being the derivative market and the securitization of assets, real and synthetic. The stakes would be huge, in the hundreds of US$ trillions and the way to transform the market was through massive leverage at all levels of the financial game.

But there was an inherent weakness in the overall scheme – the threat of inflation, more precisely hyperinflation. Such huge amounts of liquidity in the system would invariably trigger the depreciation of the reserve currency and the confidence in the system.

Hence the need for a system to keep in check price inflation and the illusion that the purchasing power of the toilet paper reserve currency could be maintained.

This is where China came in. Once China became the world’s factory, the problem would be resolved. When a suit which previously cost US$600 could be had for less than US$100, and a pair of shoes for less than US$5, the scam masterminds concluded that there would be no foreseeable threat to the largest casino operation in history.

China agreed to the exchange as it has over a billion mouths to feed and jobs for hundreds of millions needed to be secured, without which the system could not be maintained. But China was pragmatic enough to have two “economic systems” – a Yuan based domestic economy and a US$ based export economy, in the hope that the profits and benefits of the export economy would enable China to transform and establish a viable and dynamic domestic market which in time would replace the export dependent economy. It was a deal made with the devil, but there were no viable alternative options at the material time, more so after the collapse of the Soviet Union.

The Next Level of the Game

The next level of the game was reached when the toilet paper reserve currency literally went virtual – through the simple operation of a click of the mouse in the computers of the global banks.

The big boys at Goldman Sachs and other global banks were more than content to leave Las Vegas for the mafia and their miserable billions in turnover. The profits were considered dimes when compared to the hundreds of trillions generated by the virtual casino. It was a financial conquest beyond their wildest dreams. They even called themselves, “Master of the Universe”. Creating massive debts was the new game, and the big boys could even leverage more than 40 times capital! Asset values soared with so much liquidity chasing so few good assets.

However, the financial wizards failed to appreciate and or underestimate the amount of financial products that were needed to keep the game in play. They resorted to financial engineering – the securitization of assets. And when real assets were insufficient for securitization, synthetic assets were created. Soon enough, toxic waste was even considered as legitimate instruments for the game so long as it could be unloaded to greedy suckers with no recourse to the originators of these so-called investments.

For a time, it looked as if the financial wizards have solved the problem of how to feed the global casino monster.

Unfortunately, the music stopped and the bubble burst! And as they say the rest is history.

The Goldman Sachs Remedy

When losses are in the US$ trillions and whatever assets / capital remaining are in the US$ billions, we have a huge problem – a financial black-hole.

The preferred remedy by the financial masterminds at Goldman Sachs was to create another hoax – that if the big global banks were to fail triggering a systemic collapse, there would be Armageddon. These “too big to fail” banks must be injected with massive amount of virtual monies to recapitalize and get rid of the toxic assets on their balance sheet. The major central banks in the developed countries in cahoots with Goldman Sachs sang the same tune. All sorts of schemes were conjured to legitimize this bailout.

In essence, what transpired was the mere transfer of monies from the left pocket to the right pocket, with the twist that the banks were in fact helping the Government to overcome the financial crisis.

The Fed and key central banks agreed to lend “virtual monies” to the “too big to fail” global banks at zero or near zero interest rate and these banks in turn would “deposit” these monies with the Fed and other central banks at agreed interest rates. These transactions are all mere book entries. Other “loans” from the Fed and central banks (again at zero or near zero interest rates) are used to purchase government debts, these debts being the stimulus monies needed to revive the real economy and create jobs for the growing unemployed. So in essence, these banks are given “free money” to lend to the government at prior agreed interest rates with no risks at all. It is a hoax!

These “monies” are not even the dollar bills, but mere book entries created out of thin air.

So when the Fed injects US$ trillions into the banking system, it merely credits the amount in the accounts of the “too big to fail” banks at the Fed.

When the system is applied to international trade, the same modus operandi is used to pay for the goods imported from China, Japan etc.

For the rest of world, when buying goods denominated in US$, these countries must produce goods and services, sell them for dollars in order to purchase goods needed in their country. Simply put, they have to earn an income to purchase whatever goods and services needed. In contrast, all that the US needs to do is to create monies out of thin air and use them to pay for their imports!

The US can get away with this scam because it has the military muscle to compel and enforce this hoax. As stated earlier, this status quo was accepted especially during the Cold War and with some reluctance post the collapse of the Soviet Union, but with a proviso – that the US agrees to be the consumer of last resort. This arrangement provided some comfort because countries which have sold their goods to the US, can now use the dollars to buy goods from other countries as more than 80 per cent of world trade is denominated in dollars especially crude oil, the lifeline of the global economy.

But with the US in full bankruptcy and its citizens (the largest consumers in the world) being unable to borrow further monies to buy fancy goods from China, Japan and the rest of the world, the demand for dollar has evaporated. The dollar status as a reserve currency and its usefulness is being questioned more vocally.

The End Game

The present fallout can be summarized in simple terms:

Should a bankrupt country (the US) be allowed to use money created out of thin air to pay for goods produced with the sweat and tears of hardworking citizens of exporting countries? Adding insult to injury, the same dollars are now purchasing a lot less than before. So what is the use of being paid in a currency that is losing rapidly its value?

On the other hand, the US is telling the whole world, especially the Chinese that if they are not happy with the status quo, there is nothing to stop them from selling to the other countries and accepting their currencies. But if they want to sell to the mighty USA, they must accept US toilet paper reserve currency and its right to create monies out of thin air!

This is the ultimate poker game and whosoever blinks first loses and will suffer irreparable financial consequences. But who has the winning hand?

The US does not have the winning hand. Neither has China the winning hand.

This state of affairs cannot continue for long, for whatever cards the US or China may be contemplating to throw at the table to gain strategic advantage, any short term gains will be pyrrhic, for it will not be able to address the underlying antagonistic contradictions.

When the survival of the system is dependent on the availability of credit (i.e. accumulating more debts) it is only a matter of time before both the debtor and creditor come to the inevitable conclusion that the debt will never be paid. And unless the creditor is willing to write off the debt, resorting to drastic means to collect the outstanding debt is inevitable.

It would be naïve to think that the US would quietly allow itself to be foreclosed! When we reach that stage, war will be inevitable. It will be the US-UK-Israel Axis against the rest of the world.

The Prelude to the End Game

The US economy will be spiraling out of control in the coming months and will reach critical point by the end of the 1st quarter 2010 and implode by the 2nd quarter.

The massive US$ trillions of dollars stimulus has failed to turn the economy around. The massive blood transfusion may have kept the patient alive, but there are numerous signs of multi-organ failure.

There will be another wave of foreclosures of residential and more importantly commercial properties by end December and early 2010. And the foreclosed properties in 2009 will lead to depressed prices once they come through the pipeline. Home and commercial property values will plunge. Banks’ balance sheets will turn ugly and whatever “record profits” in the last two quarters of 2009 will not cover the additional red ink.

Given the above situation, will the Fed continue to buy mortgage-backed securities to prop up the markets? The Fed has already spent trillions buying Fannie Mae and Freddie Mac mortgages with no potential substitute buyer in sight. Therefore, the Fed’s balance sheet is as toxic as the “too big to fail” banks that it rescued.

In the circumstances, it makes no sense for anyone to assert that the worst is over and that the global economy is on the road to recovery.

And the surest sign that all is not well with the big banks is the recent speech by the President of the Federal Reserve Bank of New York, William Dudley at Princeton, New Jersey when he said that the Fed would curtail the risk of future liquidity crisis by providing a “backstop” to solvent firms with sufficient collateral.

This warning and assurance deserves further consideration. Firstly, it is a contradiction to state that a solvent firm with sufficient collateral would in fact encounter a liquidity crisis to warrant the need for a fall back on the Fed. It is in fact an admission that banks are not sufficiently capitalized and when the second wave of the tsunami hits them again, confidence will be sorely lacking.

Dudley actually said that, “the central bank could commit to being the lender of last resort... [and this would reduce] the risk of panics sparked by uncertainty among lenders about what other creditors think”.

To put it bluntly what he is saying is that the Fed will endeavour to avoid the repeat of the collapse of Bear Stearns, Lehman Bros and AIG. It is also an indication that the remaining big banks are in trouble.

It is interesting to note that a Bloomberg report in early November revealed that Citigroup Inc and JP Morgan Chase have been hoarding cash. The former has almost doubled its cash holdings to US$244.2 billion. In the case of the latter, the cash hoard amounted to US$453.6 billion. Yet, given this hoarding by the leading banks, the New York Federal Reserve Bank had to reassure the financial community that it is ready to inject massive liquidity to prop up the system.

It should come as no surprise that the value of the dollar is heading south.

When currencies are being debased, volatility in the stock market increases. But the gains are not worth the risks and if anyone is still in the market, they will be wiped out by the 1st quarter of 2010. The S&P may have shot up since the beginning of the year by over 25 per cent but it has been out-performed by gold. The gains have also lagged behind the official US inflation rate. It has in fact delivered a total return after inflation of approximately minus 25 per cent. When Meredith Whitney remarked that, “I don’t know what’s going on in the market right now, because it makes no sense to me”, it is time to get out of the market fast.

In a report to its clients, Société Générale warned that public debt would be massive in the next two years – 105 per cent of GDP in the UK, 125 per cent in the US and in Europe and 270 per cent in Japan. Global debt would reach US$45 trillion.

At some point in time, all these debts must be repaid. How will these debts be repaid?

If we go by what Bernanke has been preaching and practising, it means more toilet paper currency will be created to repay the debts.

As a result, debasement of currencies will continue and this will further aggravate existing tensions between the competing economies. And when creditors have enough of this toilet paper scam, expect violent reactions!"

Matthias Chang is a frequent contributor to Global Research.

http://www.globalresearch.ca/index.php?context=va&aid=16218

Entry #1,533