SEPTEMBER 2005

The scientists are well aware of what is happening but cannot implement change because these incompetent politicians will not take their advice. This is despite the fact that all the economic growth of the last 150 years has been 90% about technological development, and 0.5% about political development. Meanwhile the Chinese growth rate is much higher than the US with a largely state owned infrastructure, commercial and manufacturing base. Current western political systems are all leading down the same road and leading to the same conclusions. They assume that all people, as do they themselves, desire to live in big houses with big cars and not care about anything but their own concerns. They are wrong, they were wrong about Iraq, they are wrong about people. The scientists want change, the people also want an end to this shit, but don't know who to vote for. At the present time students are taking a much greater interest in politics than during some recent years of political apathy.

My analysis of the current economic system has shown me that the USA, and to a lesser degree the UK, has spent the last ten years depending on credit from Germany,Russia, China, Japan and France. The US and the UK are now trying to destroy the western European style of living that includes state-funded pensions, unemployment assistance, universal health care and concern about the environment. However, I think the investment all the European States made in education is finally paying off and working people would even be more interested to be unemployed in Europe than unemployed, pressed into the military, being shot at in Iraq, or in prison in Atlanta or Texas! It has even been reported that considerable numbers of Americans are moving to Europe to get away from a country whose Constitution has been torn up and trashed by the Resident in the WhiteHouse.

The USA know that China, Japan and Russia now control their credit and are now the bankers for "America Inc". Why is the US afraid of this - maybe the fact that German pension funds have been investing steadily in the USA for the last few decades and at some stage all these people will want their money back.... The US had emerged from the second World War as the dominant political and economic power in the world and it is only recently that a serious change can be envisaged. The US had spent the first part of that war purchasing all foreign assets in the USA and subsequently since the war, in the latter decades of the 20thCentury, US Corporations spent fortunes buying up companies abroad and investing in countries like Ireland, Israel, Singapore etc. These assets have kept the national product of the USA at a very high level. But what has happened recently since the start of the reign of George W.Bush - the flow has reversed.

Russia and China are now buying out America. First we had seniorage as the dollar declined against the Euro and the USA collected a high tax on dollar assets owned by Germany, France and the UK in much the same way as Italy had proceeded with continual devaluations of the Lira.This nonsense was good enough to carry the story over sufficiently to get Bush re-elected, (abetted with a sprinkle of fundamentalist Christian bullshit.) Finally the FED(Federal Reserve)worried that this process had gone too far and inflation, always the end result of this type of activity, started to show up. They raised the interest rates - the result a continual flow of dollars, as speculators can then make a decent return on dollar cash. Bush has effectively wrecked America's economic future, as interest rates will now have to keep on moving up in order to compensate Russian, Chinese and German investors. The risk of a further dollar decline or loan default will be compensated by the lucrative interest rates. Even loans have become credit cards.

However the big story of our time is not America's economic performance vis a vis the rest of the world - as all that will happen is that global power will shift from one group of moronic politicians and their paymasters to another. Wong, if there is time before the oil runs out, will replace Bush, and Shanghai will become the next victim to submit to the plague of the SUVs, and ofcourse we will all suffer.

What has Mr. Blair done about it? Sucking up to the Americans over the war in Iraq, so the Americans can continue to drive their massive gas guzzliong SUVs by pumping more oil out of the ground in Iraq. Blair continues to give lip service to the climate change issues and thinks that is enough - Wake up and smell the Roses !

This madness has to stop. We need a government of experts, not politicians, otherwise the world for our children is endangered. Can we start an EXPERT Party, where the proposed Minister of Health is a Doctor/Professor ; the Minister for the Environment a Scientist ; The Minister of Public Works an Engineer etc - for otherwise, we may soon be looking at the complete breakdown of the world environment. This will ultimately lead to a return to a more totalitarian form of government as these morons send out police to shoot people who might persuade all of us to realise that the Emperor "has no clothes". The chances of my being killed by a "terrorist" is quite unlikely, but this is all they debate, this is what their propaganda is about..."THEY HAVE THE POWER", is all they think about as they attend their mutual masturbation clubs with the Bankers in Davos.

Recently, in Ireland, the Government introduced a no-smoking ban in pubs, against the interests of the tobacco companies, publicans etc. for the interests of the general public. Similar bans have been put in place in some U S States and Canada - these bans, as well as saving many lives, have made visits to restaurants and bars a much more pleasurable experience. This has been done in the interests of the general public, and not in the interests of 'big business' - accepted, and proving THAT IT CAN BE DONE, to any politicians out there who really want to do something radical. The voting public do not just want the BIG house, the BIG car - they want a pleasant well-organised healthy life and are willing to sacrifice that false sign of status for it.

For a start the Governments should put a tax on all private cars with an engine capacity of over 2litres of petrol - unless it can be demonstrated that the vehicle is required for agriculture, building work or the emergency services. They should also place a tax on all air-line tickets - why not? That is what the concerned public want them to do !Let us make a start.....!


To confirm this .......

http://www.gold-eagle.com/gold_digest_05/taylor081305.html   Taylor On The Financial Markets Exploding Inflation, Compliments of Greenspan, Bernanke, & Co.

The statement by the Fed this past week when it raised interest rates by another quarter % "measured pace" has to be seen as a turning point. True to form, Greenspan chickened out once again. The "Greenman" is very much like a parent scared to death of his little brat child. We've all seen this situation. The little brat at the grocery store screams for candy at the top of his lungs and the mother or father too fearful to smack him on the posterior end to set things straight, simply takes the easy out and gives the kid what he wants. Think back to the end of last week-the week ending August 5. After news of rising strength in the jobs market and some very strong economic news, the markets figured the Fed would, if anything, become more aggressive in controlling the supply of money and thus allow interest rates to rise more nearly where they should be for a country that is spending more than it saves. With that fear, home building and real estate investment stocks began a cascading decline for three successive days starting on Wednesday, August 3.

True to form, the Fed under Alan Greenspan did not have the stomach to restrain increasingly out-of-control markets because if it had come out with some tough anti inflation language in the FOMC meeting last week and say a ½ % rise increase in rates, the above noted declines in the housing and real estate markets would likely have kept on plummeting. Not only did the Fed raise interest rates by a mere one-quarter %, but it used the same kind of "measured" language as it has used persistently during this period of excessively easy monetary accommodation. Immediately as the minutes of the last FOMC meeting were released which gave the signal from Greenspan, Bernanke, and Company said "party on, party animals," the markets immediately went wild. As Richard Russell observed, the most significant message was "sell the dollar and buy everything in sight." And so, our Inflation/Deflation Indicator hit a new high during the week. It increased by 1.29 % to close at 108.29.

In other words, our indicator has risen by 8.29 % since we started calculating it on January 31, 2005. Anything above 100 indicates inflation, and anything below that base value indicates deflation from that starting time frame. Like the parent unable to handle the temper of the two year old at the grocery story, Alan Greenspan and the Fed gave the baby the candy at the grocery checkout counter.

This past week, following the "GO, GO, GO!" signal from the Federal Reserve, inflation began to rear its ugly in a rapidly accelerating manner. Within our indicator, share prices in India as measured by ETF-IIF, exploded upward by 12.01% for the week! Chinese equities as measured by ETF-FXI rose by a not so shabby 4 % for the week. And the Japanese stock market, which has been in a funk for the longest time also came to live. In our indicator, Japan and the auto industry is represented by the shares of Toyota, which surged upward by 6.55 % on the week. Aside from foreign equity prices, oil and gas prices hit new highs, in part on fears of instability in Saudi Arabia. Light sweet crude exploded by 8.12 % on the week, and largely because of that, the energy-heavy Rogers Raw Materials Index fund rose by 2.57 % on the week.

Helping to keep our Inflation/Deflation Indicator from instantly exploding into hyperinflation mode were the following moderating components:

• A 2.27 % decline in Wal-Mart
• A 0.92 % decline in the hosing index
• An 0.87 % decline in the real estate investment trust ETF
• A 1.80 % increase (and thus a decrease in our indicator) in long dated
• U.S. Treasuries as measured by our long treasury ETF, namely, TLT.
• Copper declined by 2.34 %
• Silver declined by 1.53 %
• Gold/U.S. dollar index rose (thusly declined for our index) by 1.42 %
• Gold/Silver rose (and thus declined for our index) by 4.25 %

What can we take from the action last week? I would say that, if there were a message in last week's market action, it would be "SELL THE DOLLAR! SELL AMERICA! SELL IT FAST!"

And as I look at longer-term charts, what seems to be emerging is a major long term topping out in U.S. equities, while equities of other countries appear to be taking off like a rocket. And that would in my view be very appropriate because the West is, unfortunately, in the early stages of a long-term decline. We can try to fool ourselves by printing money and pretending we can create wealth from that activity as Mr. Greenspan and Bernanke and others at the Fed and in the banking industry are so keen to do. And to the extend foreign nations are willing to keep accepting these increasingly worthless pieces of paper, so we can keep borrowing them back from China and Japan and Korea to buy all these new houses and all these new cars and new gadgets and all manner of junk, we are able to delude ourselves into thinking we are wealthy when in fact we are engaging in a ruinous last gasp orgy before our decline. Trouble is, we Americans don't really own that stuff. China does or Japan does. And when we can no longer service that debt, and when for whatever reason, foreign wealth flees from the dollar, the message will be "Look out below!" Unfortunately the direction of markets last week suggest that day of reckoning may now be at hand.

The Dangers of Climate Change (AUDIO)
TUC Radio via Global Public Media
In February 2005, 200 scientists met in Exeter, UK to warn that dangerous climate change is happening now and action must be taken. The meeting was ignored in the US media.

Program One: The Dangers of Climate Change and Global Warming in the Antarctic
Stephen Schneider (Stanford University) Chris Rapley (British Antarctic Survey)
While the earth as a whole has warmed by an average of 7/10 degree C since the industrial age, the Antarctic, Siberia and Alaska have shown much stronger regional warming. The accelerated melting in the Antarctic is of huge importance. The ice sheets hold 90% of the world's fresh water. If all of it melted the global mean sea level would rise by 52 meters. Also: the circumpolar ocean current around the Antarctic is driving the ocean currents of the world, influencing climate up into the Northern Hemisphere.

Program Two: Global Warming on Greenland & Risk of Gulf Stream Collapse
Jay Zwally (NASA) Jason Lowe (Hadley Centre, UK) Michael Schlesinger (U. of Illinois)
Is the melting we are seeing today the precursor of a major deglaciation of Greenland or a momentary anomaly? How fast will this process unfold, and can deglaciation be stopped if it begins accelerating due to internal feedback? Even after CO2 levels are brought under control the oceans will keep expanding - raising the sea levels around the world - the question is for how long? The possible collapse of the Gulf Stream, leading to a dramatic cooling of Europe, was considered a "high impact - low probability" event. Recent data show that there is now a 70% chance of collapse due to global warming.

Program Three: Global Warming Impacts on Oceans and Land & The Bush Wars on Climate Science
Rik Leemans (Wageningen University, Netherlands) Carol Turley (Plymouth Marine Laboratory, UK) Myron Ebell (Bush advisor on climate) Senator Inhofe (US) Chris Rapley (British Antarctic Survey)
About half of the man-made carbon dioxide produced by fossil-fuel burning has been absorbed by the oceans. These changes are accelerating the extinction of marine life from plankton to cod to coral reefs. Animals and plants are on the move everywhere. Changes in the oceans are especially fast. Some plankton species have already moved north by up to 1000 kilometers. Science tells us more today about the accelerated collapse of earth systems than ever before - we need to pay attention and ACT! However the Bush administration undermined climate science and prevented an agreement on limits of CO2 emissions at the G8 meeting in Scotland.
(8 August 2005)
    Nigel Griffiths, Scotsman
CLIMATE change, everyone's talking about it. Parliament was determined to ensure it was the top priority at the recent G8 summit and, due to compelling scientific evidence, climate change has risen fast up the political agenda.

It is the single biggest environmental threat facing the planet. Climate change, or global warming, is caused by increased levels of greenhouse gases, mainly carbon dioxide, which trap heat by forming a blanket around the Earth - like the glass of a greenhouse. Once released the greenhouse gases stay in the atmosphere for many years and as they build up, the planet's temperature rises. Because of that "delay factor" the decisions we take today will affect the future of our planet.

There's a common misconception that climate change is simply an environmental issue, but it is a social issue and an issue of justice. We cannot tackle global poverty without tackling global warming.     Warming hits 'tipping point'
Siberia feels the heat
Ian Sample. The Guardian
It's a frozen peat bog the size of France and Germany combined, contains billions of tonnes of greenhouse gas and, for the first time since the ice age, it is melting
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A vast expanse of western Sibera is undergoing an unprecedented thaw that could dramatically increase the rate of global warming, climate scientists warn today.

Researchers who have recently returned from the region found that an area of permafrost spanning a million square kilometres - the size of France and Germany combined - has started to melt for the first time since it formed 11,000 years ago at the end of the last ice age.

The area, which covers the entire sub-Arctic region of western Siberia, is the world's largest frozen peat bog and scientists fear that as it thaws, it will release billions of tonnes of methane, a greenhouse gas 20 times more potent than carbon dioxide, into the atmosphere.   Jean Johnson, Indian Country Today
PORTLAND, Ore. - ''3 Accused of Shooting Up Oregon Town; Water Dispute Cited,'' ran a New York Times late edition headline in December 2001. The town was Chiloquin, home to the Klamath Tribes. The shooters were young white men from a nearby farming community, incensed that Klamath Basin irrigators weren't getting their accustomed share of the arid region's water during a dry spell.

It's just a single incident, but with pundits saying water will be to the 21st century what oil was to the 20th, there's no time like the present - whether you live in the parched American West or elsewhere on the planet - to get a handle on the way things work.   EUROPE
Much of western Europe and northern Africa will understand Lorenzo's point of view [about drought in Southern Spain]. Thanks to what meteorologists call "unusual" climatic circumstances, including freak rain which ran off the land without replenishing the water tables, much of Europe is now bone-dry, dun-brown and baking. There has been barely any steady rain for a year or more in many places and it's dawning on the EU and the authorities of half a dozen countries that this pan-European phenomenon will affect everyone and could well continue into next year.

...The drought of 2005 is already raising food prices, causing unemployment and will cost billions of euros' compensation and economic losses; but it is also leading to calls for gargantuan water transfer plans, new reservoirs and dams. As cities vie with farmers for a resource that is only going to become scarcer if droughts like this become more common, scientists and politicians are saying that a complete rethink is needed over how Europe uses its water.