Still Standing Amid the Wreckage
Na pulapula o Haloa
By Dominick Acain on 12 May 2012 for Island Breath -
(http://islandbreath.blogspot.com/2012/05/na-pula-pula-o-haloa.html)
Image above: Front of the Makaweli Poi Mill in Waimea, Kauai. From (http://anyportinastorm.proboards.com/index.cgi?board=oceania&action=print&thread=4880).
MAKAWELI POI MILL IS BEING CLOSED against the wishes of the farmers, employees and community. Mill owner, Hi'ipoi LLC has suddenly and unreasonably given the poi mill 2 weeks notice, with highly questionable plans for the mill's future and no community input. Last day of operations might be May 24th. For more information or to voice concerns come to: OHA Community Meeting Wednesday May 16th, 6:00pm King Kaumualii Elementary cafeteria, Hanamaulu. Any interested in helping to SAVE Makaweli Poi Mill should contact: makaweli.poi@gmail.com Please let folks know.
“the Sky Father, Wakea, and the Earth Mother, Papa, had a stillborn son named Haloa-naka. After Haloa-naka was buried, the kalo plant grew from his grave. Haloa is another name for kalo or taro, and it means everlasting breath. Later, humans were created from the same union, and were sustained by the food provided by their older brother, Haloa.”Even today, like in ancient times, we live on kalo grown in the same earth as our ancestors. We are as Kanaka Maoli, Nā pulapula a Hāloa (The descendants of Haloa). The hills of Makaweli house the iwi of my ancestors who all grew up surviving on the kalo grown in the valley. The art of planting and gathering of kalo has sustained our culture for many generations and it was the responsibility of all to be educated in the process for the survival of our people. Correct me if I’m wrong, but OHA’s purchase of the Makaweli Poi was approved by the Board of Trustees in December of 2007.
According to the February 2008 issue of Ka Wai Ola, under the title “OHA plans for Makaweli poi production, kalo education” the article states that OHA’s intention of the purchase of Makaweli Poi was “to serve West Kaua'i as both an economic stimulus and an outdoor classroom.”
At the time of purchase, the article further stated that business was good from its acquisition by John A’ana in 1993 until the sale was made to OHA. At the time of acquisition by OHA, Makaweli Poi boasted a 12.5 percent profit on sale for a “part-time” operation. John was quoted in the article that he, and I quote, “needed to free up more of my time, but I was cautious about selling to the right party, because I wanted to make sure operations would continue."
It also mentions John as saying that he “considered other offers for Makaweli Poi and his 12-acre wetland kalo farm near the Waimea River” and that “what cinched the deal with OHA was the way the agency folded in cultural and educational programs.” I can’t speak for my cousin John, but as ohana I can tell you that this alone was proof that Makaweli Poi was more than a business venture for him. It was a way to perpetuate the practice that had sustained the Hawaiian culture for generations. I believe that he had sold the business to OHA not only because of their objectives but because of OHA’s mission which is:
“To mālama (protect) Hawai'i's people and environmental resources and OHA's assets, toward ensuring the perpetuation of the culture, the enhancement of lifestyle and the protection of entitlements of Native Hawaiians, while enabling the building of a strong and healthy Hawaiian people and nation, recognized nationally and internationally.”When OHA purchased Makaweli Poi, it had become:
“the latest nonprofit subsidiary of OHA's limited liability company known as Hi'ilei Aloha, which OHA formed in 2007 as the parent company of Waimea Valley.”Its goals were to:
- To preserve and promote the cultural and historical tradition of taro farming and poi production in a sustainable and economically viable manner and to serve as an educational resource for youth.
- To restore the Makaweli valley as a major taro producing area.
- Increase the cultural awareness and participation, of young Hawaiians, in taro farming and poi production through the implementation of education programs.
- Increase taro production in the Makaweli valley and other areas in Waimea by establishing a taro farmers co-operative.
- Increase poi production and sales by expanding markets for Makaweli poi on Kaua‘i, O‘ahu, Moloka‘i, Maui, Big Island and the mainland.
- Double taro production in the West Kaua‘i area.
- At least 25% of the taro farms operated by new and/or young farmers.
- Incomes significantly increase for at least 10 West Kaua‘i taro farmers.
- Employment for at least 10 individuals involved in poi production.
Under John’s ownership and management, the Makaweli Poi Mill brought light and reconnected us to our past. He proved that he was “the right management.” He was the right management because not only did he live the culture but because all of the people who worked under him lived the culture.
They all had a vested interest in making this work. It wasn’t only about the money. If anyone here has ever worked the lo’i you will know that the labor is not worth the pay. You will not get rich or fat retirement checks from working in the lo’i. What it's all about is the preservation of the culture and historical tradition of taro farming. In fact it's the EXACT same goal that OHA had for the acquisition of Makaweli Poi except for one thing. John, his workers and taro farmers work back breaking jobs to get minimal pay, hardly any money, while OHA officials get to make decisions and earn their pay in the comforts of their air conditioned offices.
When OHA purchased Makaweli Poi, along with it came a responsibility. Not only to John and what he had achieved, but to all descendants of Wakea and Papa. OHA took on the responsibility to make sure that its goals were achieved. Like John, the successful management of the program would take someone who had a vested interest in the land and its people. Including generations not yet born.
Most of the people who farm the land and processed the kalo did not put their college education to work to achieve success. They poured in blood, sweat and tears into preserving our lifestyle. That came first. To make it work again, it would have to take people with a vested interest not only in the “program” but in the land and people who have been here for generations. Whether it is run by a council or a program manager, they would all have to have a vested interest to preserve and promote the cultural and historical tradition that the cultivation, process and education of everything regarding kalo is concerned.
The people on this island know who is who and who are capable of making this work. We have always been a close knit community who pull together through times of the most adversities. For the sake of preserving our culture and traditions, most of us think it unwise to thrust our entire culture into the hands of those who haven’t sacrificed what we have for us her. ON the soil of our ancestors. Many of us never went away. Some of us still live on the same land as our ancestors before the landing of europeans.
Your hiring process falls outside the realm of our west Kauai way of making things work and of persevering during trying times. Maybe it’s time to give our people, locally, here on Kaua’i the opportunity to show what we can do. To do something that we have been doing for generations anyway.
Not by objectives and goals made by people outside of the trenches, but by those within. We have lived the life without straying too far for many generations. We have a time honored tradition of continuing the traditions of our ancestors. We have a vested interest in our culture, our people and our future here on Kauai.
Maybe it’s time to think outside of the box and go back to the roots. Na pula pula o Haloa. We will never stop the preservation and promotion of our culture. We will never stop educating our youth and people in the historical traditions our ancestors. And we urge you to look through our eyes, and listen to our mana’o and to never stop fulfilling your obligation to our people. Nā pulapula a Hāloa (The descendants of Haloa).
Image above: Makaweli Poi Mill worker Annie Lacro with a 1-pound bag of poi from the Kaua‘i mill where she has worked since 1997. From (http://www.oha.org/kwo/loa/2010/11/story03.php).
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Is Meat Glue safe?
Transglutaminase and beef fibrin, often called meat glue, is an ingredient used across the food industry to hold together smaller cuts of meat, poultry, and fish that’s been used for decades. Meat glue itself isn’t considered dangerous by most, but there is a larger fear of food borne illness when small pieces of meat, sourced from different places, are held together.
FDA Opinion
The FDA says the ingredient is “generally recognized as safe” but consumers have been grossed out by the idea that they could be eating beef tenderloin that’s actually tiny little pieces of beef glued together and sold at a higher cost.
Meat glue is actually a powder added to meat and rolled up in plastic wrap. The meat is refrigerated for 6 hours and the result is a solid piece of meat that’s seemingly impossible to tell from the real thing.
Like pink slime, the practice has endured harsh public scrutiny as much because of a lack of transparency as anything else. But meat glue, unlike pink slime, is labeled. The ammonia used in pink slime isn't listed on any ingredient labels because it's considered a "processing agent" even though it's completely misleading to think that it doesn't end up in the final product.
The Industry Responds
But even if it’s listed very few people actually knew what it was until recently. In an effort to ensure that meat glue doesn't endure the same fate as pink slime, the meat industry is responding to recent criticism.
Food Safety News reports:
"We're definitely making an effort to engage," said Janet Riley, the head of public affairs for the American Meat Institute, which represents the major players in the meat industry. Riley has made a point of addressing transparency concerns head on, noting that the practice of using TG and beef fibrin is "absolutely not a secret."
And is it safe? Again, Food Safety News:
Dana Hanson, an extension meat scientist at North Carolina State University, said that it is possible that different cuts put together could be more susceptible to contamination by potentially introducing pathogens into the center of a pieced-together steak. But Hanson said that federal cooking recommendations would be sufficient to kill any bacteria.
But once again, public input is making the food industry shutter in fear of a negative reaction and without a doubt, transparency is a good thing.
Beef Suppliers say Meat Glue Safe By Stephanie Armour on 8 May 2012 for Bloomberg News - (http://www.bloomberg.com/news/2012-05-07/beef-industry-disputes-meat-glue-safety-allegations.html) Video above: "Meat Glue Secret" reveals premium price for combinming meat cuts. From (http://youtu.be/hXXrB3rz-xU). Beef producers said the depiction of meat glue by consumer activists is unfair and the industry’s practice of using transglutaminase to bind pieces of meat into a single cut is safe.
The American Meat Institute, a Washington-based trade group that includes Cargill Inc. and Tyson Foods Inc. (TSN), released information showing how transglutaminase is used in dairy, seafood and baked goods as well as in beef for texture or to bind cuts together. Transglutaminase is an enzyme sold for almost two decades and has inaccurately been nicknamed meat glue for “shock appeal,” the group said yesterday in a statement.
“Someone gave it a catchy name, so now it’s catching on,” Jeremy Russell, a spokesman with the National Meat Association, another industry lobbying group, said in an interview.
The industry is trying to gain control of the debate over transglutaminase after a public backlash earlier this year over ammonia-treated beef scraps that consumer activists dubbed “pink slime” led to lost business for Beef Products Inc. and other companies. California state Senator Ted Lieu, a Democrat, last week called for a U.S. Agriculture Department investigation into transglutaminase because of potential contamination risks.
“Food suppliers, restaurants, and banquet facilities should not be deceiving the public into thinking they are eating a whole steak if, in fact, the steak was glued together from various meat parts,” Lieu said in a letter to the agency.
Consumer DeceptionHe said in an interview yesterday that it would be unfair for consumers to pay the same for meat pieced together as they would for steak from one cow.
“I just don’t think consumers should be paying more.”
Packaged meat products made with transglutaminase must be labeled as formed or reformed, the American Meat Institute said. The group said it’s unaware of any food safety issues.
Consumer groups say sticking together cuts from different animals to form a muscle meat increases the chances of E. coli or other contamination. Comments slamming the practice have been popping up on Twitter and Facebook following news stories.
“It’s consumer deception,” said Michael Hansen, a senior scientist with Yonkers, New York-based Consumers Union, which publishes Consumer Reports. “When you see a muscle cut, you think it comes from one animal, not a jigsaw from a number of sources.”
Meat ContaminationExterior contamination on a single cut of beef is often destroyed during cooking, according to Consumers Union. By piecing together meat with the enzyme, exterior contamination may get inside the final product and may not be killed if the meat is served rare or medium rare, Lieu said in his letter.
“Proper cooking is recommended for all raw beef products, but there’s not a contamination issue,” said Russell, with the National Meat Association.
In addition to the spotlight on meat glue and pink slime, the U.S. industry last month was struck by its first case of mad cow disease in six years. Indonesia suspended meat imports after the U.S. reported the disease in a California dairy cow, prompting cattle futures on April 24 to tumble to a nine-month low.
A petition drive in March against pink slime, or lean finely textured ground beef, caused demand for ground beef to drop to the lowest amount for that month in a decade. Video above: Newsy.com film concerning risk versus revulsion in certain food processing of meat. From (http://www.newsy.com/videos/meat-glue-potentially-harmful-for-consumers-meat-industry/#ooid=FndnRvNDrFOWL3ZGuDVEJFmBcmQNBhMi)
[IB Editor's note: Poultry paste is a blend of skin, tendons, cartilage, eyeballs, etc used in chicken nuggets, hotdogs and bologna.]
.Help make KIUC a better Co-op
WHAT: Kapaa Public Library, P2P is hosting a 'Strategize & Organize to Gain a Better KIUC' Workshop. WHERE: Meeting Room of the Kapaa Public Library at 1464 Kuhio Highway, Kapaa Hawaii 96746-1791 Of course, both events free and open to the public! I do hope you mark your calendar for these events on May 17th. Remember to tune into KKCR and and get then down to the Kapaa library. Thanks for spreading the word! For more information contact Jonathan Jay at (808) 212-7686 or email jjkauai@gmail.com Imua! malama pono. .
Navy admits threat to sea mammals
By Audrey McAvoy on 10 May 2012 for AP in Salon -
(http://www.salon.com/2012/05/11/navy_study_sonar_blasts_might_hurt_more_sea_life/singleton)
Image above: Detail of Hawaii-Southern California Training and Testing Area map of which the Hawaii Range Complex is a part. For more complete map click on map or visit (http://hstteis.com/). Note that the Marine National Monument (yellow hatch area) is in the middle of Navy testing area.
The U.S. Navy may hurt more dolphins and whales by using sonar and explosives in Hawaii and California under a more thorough analysis that reflects new research and covers naval activities in a wider area than previous studies.
The Navy estimates its use of explosives and sonar may unintentionally cause more than 1,600 instances of hearing loss or other injury to marine mammals each year, according to a draft environmental impact statement that covers training and testing planned from 2014 to 2019. The Navy calculates the explosives could potentially kill more than 200 marine mammals a year.
A notice about the study is due to appear Friday in the Federal Register.
The old Navy analysis — covering 2009-2013 — estimated the service might unintentionally cause injury or death to about 100 marine mammals in Hawaii and California, although no deaths have been reported.
The larger numbers are partially the result of the Navy's use of new research on marine mammal behavior and updated computer models that predict how sonar affects animals.
The Navy also expanded the scope of its study to include things like in-port sonar testing — something sailors have long done but wasn't analyzed in the Navy's last environmental impact statement. The analysis covers training and testing in waters between Hawaii and California for the first time as well.
"Each time around, each time we swing through this process, we get better, we take a harder look, we become more inclusive," said John Van Name, senior environmental planner at the U.S. Pacific Fleet.
The Navy isn't saying it will injure whales and dolphins as it trains sailors and tests equipment. It's telling the public and environmental regulators that its actions have the potential to harm or otherwise prompt a reaction in the animals.
The Navy takes a variety of measures to prevent harm to the animals, including turning off sonar when marine mammals are spotted nearby. It says the actual numbers of injured animals would be lower as a result.
The Navy must provide the information to the National Marine Fisheries Service to earn a permit for its activities. If it didn't do so and was later found to have harmed marine mammals, it would be found in violation of federal environmental law and have to stop its training and testing.
Zak Smith, staff attorney at the Natural Resources Defense Council, said he's encouraged the Navy reduced the threshold for the level of sonar it found to affect beaked whales — a species that appears to be particularly sensitive to the noise.
The Navy said it changed the threshold because research has shown beaked whales move away and otherwise react when exposed to a lower level of sound than earlier studies indicated.
"My first glance shows there's positive steps," Smith said after he took a quick look at the 1,800-page document. But he said he would have to look at the details before giving his full assessment.
The Navy uses sonar to track enemy submarines, torpedoes, mines and other potential threats underwater. Sonar operators send pulses of sound through the ocean and then listen for echoes from objects hit by the sound waves.
Scientists say the sound may disrupt the feeding patterns of marine mammals. The sound may also startle some species of whales, causing them to surface rapidly.
The Navy will be holding public meetings on the study in Hawaii during the week of June 11 and in Southern California on June 20.
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PMRF Aegis missile test
SUBHEAD: 2nd generation Aegis ballistic missile system completes successful intercept flight test.
By Staff on 10 May 2012 for Missle Defense Agency -
(http://www.navy.mil/search/display.asp?story_id=67080)
Image above: (SM-3) Block 1B interceptor is launched from the guided-missile cruiser USS Lake Erie (CG 70) during a Missile Defense Agency test in the Pacific Ocean. From original article.
The Missile Defense Agency (MDA) and U.S. Navy sailors aboard the USS LAKE ERIE (CG 70) successfully conducted a flight test of the Aegis Ballistic Missile Defense (BMD) system, resulting in the first intercept of a short-range ballistic missile target over the Pacific Ocean by the Navy’s newest Missile Defense interceptor, the Standard Missile – 3 (SM-3) Block 1B.
At 8:18 p.m. Hawaiian Standard Time (2:18 a.m. EDT May 10) the target missile was launched from the Pacific Missile Range Facility, located on Kauai, Hawaii. The target flew on a northwesterly trajectory towards a broad ocean area of the Pacific Ocean. Following target launch, the USS LAKE ERIE detected and tracked the missile with its onboard AN/SPY-1 radar. The ship, equipped with the second-generation Aegis BMD 4.0.1 weapon system, developed a fire control solution and launched the Standard Missile-3 (SM-3) Block IB interceptor.
The USS LAKE ERIE continued to track the target and sent trajectory information to the SM-3 Block IB interceptor in-flight. The SM-3 maneuvered to a point in space, as designated by the fire control solution, and released its kinetic warhead. The kinetic warhead acquired the target, diverted into its path, and, using only the force of a direct impact, engaged and destroyed the threat in a hit-to-kill intercept.
Today’s event, designated Flight Test Standard Missile-16 (FTM-16) Event 2a, was the first successful live fire intercept test of the SM-3 Block IB interceptor and the second-generation Aegis BMD 4.0.1 weapon system. Previous successful intercepts were conducted with the Aegis BMD 3.6.1 weapon system and the SM-3 Block IA interceptor, which are currently operational on U.S. Navy ships deployed across the globe.
Aegis BMD 4.0.1 and the SM-3 Block IB interceptor improve the system’s ability to engage increasingly longer range and more sophisticated ballistic missiles that may be launched in larger raid sizes. The SM-3 Block IB interceptor features a two-color infrared seeker, which improves sensitivity for longer-range target acquisition and high-speed processing for target discrimination. The SM-3 Block IB interceptor also features an upgraded onboard signal processor and a more flexible throttleable divert and attitude control system to maneuver the IB interceptor to intercept.
Initial indications are that all components performed as designed. Program officials will conduct an extensive assessment and evaluation of system performance based upon telemetry and other data obtained during the test.
FTM-16 Event 2a is the 22nd successful intercept in 27 flight test attempts for the Aegis BMD program. Across all Ballistic Missile Defense System programs, this is the 53rd successful hit-to-kill intercept in 67 flight test attempts since 2001.
Aegis BMD is the sea-based midcourse component of the MDA's Ballistic Missile Defense System and is designed to intercept and destroy short to intermediate-range ballistic missile threats. The MDA and the U.S. Navy cooperatively manage the Aegis BMD Program.
Video above: Shows launch of target missile from barking Sands site at Kauai's PMRF as well as Aegis missile interceptor launch from ship. From (http://youtu.be/uwqYSReKi9E).
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Global Thermostat
By Arius Hopman on 11 May 2012 in Island Breath -
(http://islandbreath.blogspot.com/2012/05/global-thermostat.html)
Image above: Rendering of a hot planet by Inga Nielsen. From (http://www.astronomind.com/faces-of-exoplanets).
When all is said and done
Fascism has come to the industrialized world, and the evidence is particularly clear in the United States. As I wrote in a book published in 2004 regarding the executive branch of the U.S. government:
[The administration] is characterized by powerful and continuing expressions of nationalism, identification of enemies as a unifying cause, obsession with militaristic national security and military supremacy, interlinking of religion and the ruling elite, obsession with crime and punishment, disdain for the importance of human rights and intellectuals who support them, cronyism, corruption, sexism, protection of corporate power, suppression of labor, control over mass media, and fraudulent elections. These are the defining elements of fascism.
The situation has progressed, and not in a suitable manner from the perspective of the typical self-proclaimed progressive. Along with fascism, we’re firmly ensconced in a totalitarian, surveillance-obsessed police state. We’ve been in this state for many years and the situation grows worse every year, but most people prefer to look away and then claim ignorance while politicians claim we’re not the people indicated by our actions. As long as you’re not in jail (yet) or declared a terrorist (yet) and subsequently killed outright (yet), you’re unlikely to bring attention to yourself, regardless what you know and feel about the morality of the people running ruining the show.
But why? Is fear such a great motivator that we allow complete destruction of the living planet to give ourselves a few more years to enable and further the destruction? Is the grip of culture so strong we cannot break free in defense of planetary habitat for our children? Have we moved so far away from the notion of resistance that we can’t organize a potluck dinner without seeking permission from the Department of Homeland Security?
I know many parents who claim they can’t take action because they want a better world for their children. Their version of a “better world” is my version of a worse world, as they long for growth of the industrial economy at the expense of clean air, clean water, healthy food, the living planet, runaway greenhouse, and human-population overshoot. I’ve come to call this response “the parent trap.” Trapped by the culture of make believe, these parents cannot bring themselves to imagine a different world. A better world. A world without the boot of the police state on the necks of their children. A world with more carnivores every year, instead of fewer. A world with less pollution, less garbage, and less lying — to ourselves and others — each and every year.
All evidence indicates we prefer Fukushima forever, if it means we can have electric toys. We prefer near-term extinction by climate chaos, if it means we can cool the house to 68 F in the summer. We prefer genocide, if it comes with a milkshake and an order of fries. Henry Ford was wrong when he pointed out, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
On the other hand, General Omar Bradley’s sentiments from 1948 ring true: “The world has achieved brilliance without conscience. Ours is a world of nuclear giants and ethical infants. We know more about war than we know about peace, more about killing than we know about living. If we continue to develop our technology without wisdom or prudence, our servant may prove to be our executioner.”
Even though we’re willingly tapping six scary extreme energy sources to fuel the post-peak oil industrial economy, power outages have become exponential within the last decade, as indicated in the figure below. We clearly don’t care about the environmental consequences of our greed, so we keep soldiering on, wishing for a miracle and ignoring the evidence for imperial decline, human-population overshoot, runaway climate change, and a profound extinction crisis. Will the final power outage come in time to save us from our unrepentant selves?
Ultimately and sadly, I suspect it comes down to this: When all is said and done, a lot more is said than done. We simply can’t be bothered to contemplate a single issue of importance when the television calls or the shopping mall beckons. Political “activists” spend hours every day elaborating the many insignificant differences between the two dominant political parties in this country, but they cannot bring themselves to throw a wrench into the gears of industry. They continue to ignore the prescient words of Desmond Tutu long after the consequences of inaction are obvious: “If you are neutral in situations of injustice, you have chosen the side of the oppressor.”
The only reason I can imagine wanting to retain this horrific system for a few more years is to safely shut down the nuclear reactors that are poised to kill us. But increasing the number of these uber-expensive sources of electricity, as President Obama desires, means shoving more ammunition into the Gatling gun pointed at our heads. One bullet does the trick. In classic American style, we prefer more. Always more.
How much of this is too much? When have you had enough?
.Euro Economic Alert
By Brandon Smith on 9 May 2012 for Alt-Market -
(http://www.alt-market.com/articles/765-economic-alert-if-youre-not-worried-yetyou-should-be)
Image above: A real photo of great white shark stalking a kayak. From (http://www.thomaspeschak.com/kayak-great-white-sharks-/) and (http://www.shtfplan.com/headline-news/economic-alert-if-youre-not-worried-yetyou-should-be_05082012).
For the past four years I have been covering the progression of the global economic crisis with an emphasis on the debilitating effects it has had on the American financial system. Only once before have I ever issued an economic alert, and this was at the onset of the very first credit downgrade in U.S. history by S&P. I do not take the word “alert” lightly. Since 2008 we have seen a cycle of events that have severely weakened our country’s foundation, but each event has then been followed by a lull, sometimes 4 to 6 months at a stretch, which seems to disarm the public, drawing them back into apathy and complacency. The calm moments before each passing storm give Americans a false sense of hope that our capsized fiscal vessel will somehow right itself if we just hold on a little longer...
I don’t have to tell most people within the Liberty Movement that this is not going to happen. Unfortunately, there are many out there who do not share our awareness of the situation. Debt implosions and currency devaluation NEVER simply “fade away”; they are always followed by extreme social and political strife that tends to sully the doorsteps of almost every individual and family. The notion that we can coast through such a tempest unscathed is an insane idea, filled with a dangerous potential for sour regrets.
There are some people who also believe that the private Federal Reserve with the Treasury in tow has the ability to prolong the worst symptoms of the collapse indefinitely, or at least, until they have long since kicked the bucket and don’t have to worry about it anymore (the ‘pay-it forward to our grandkids’ crowd) . I can say with 100% certainty that most of us will live to see the climax of the breakdown, and that this breakdown is about to enter a more precarious state before the end of this year. You can only stretch a sun-boiled rubber band so far before it snaps completely, and America’s financial elasticity has long been melted away.
A pummeling hailstorm of news items and international developments have made the first half of 2012 almost impossible to track and analyze. The frequency at which negative information has surfaced is almost dizzying. However, a pattern and a recognizable motion are beginning to take shape, and, I believe, a loose timeline is beginning to form. At the end of January, I covered the incredible nosedive of the Baltic Dry Index (a measure of global shipping rates that signals a fall in global demand) to historic lows.
I pointed out the tendency of stocks and the general economy to crash around 8 months (sometimes a little longer) after the BDI makes such a dramatic downturn. Mainstream analysts, of course, attributed the fall to an “overproduction of ships”, which is the same exact excuse they used when the BDI collapsed back in 2008 just before the derivatives bubble burst. It would seem that the cable TV talking heads were wrong yet again, as the international market facade quickly evaporates right in line with the BDI’s almost prophetic knack for calling an economic derailment in advance. Here are some of the most important reasons why every American should be prepared for much harder days, especially before the end of 2012:
The European Union Is Officially Dead In The Water
Stick a fork in er’, the EU is done! We are talking about full scale dismantlement, likely followed by a reformation of core nations and multiple collapse scenarios of peripheral countries. The writing is all over the wall in the wake of the latest election results in Greece and France, where, as alternative researchers have been predicting for some time, the battle between the government spending crowd and proponents of austerity has reached a fever pitch. The Greeks and the French are royally pissed over draconian cuts in public programs and the destruction of pensions which have been a mainstay of their economies for quite some time. They are also furious over being sold off like collateral to the IMF and World Bank. Rightly so. Like the American taxpayer, the taxpayers of floundering EU nations are wrongly being held responsible for the financial mismanagement and fraud of their governments and global banks which have remained untouched and unpunished for their trespasses.
The problem is, the voters of both countries are signing on to the socialist/quasi-communist bandwagon in response. In Greece, the Left Coalition Party, a splinter group of the traditional communist party, has now taken a primary position of power: http://www.reuters.com/article/2012/05/07/us-greece-idUSBRE8440DG20120507
In France, voters have elected socialist Francois Hollande (a Bilderberg attendee), whose latest promise is to spend France into recovery through his “pro-growth agenda”: http://news.yahoo.com/blogs/ticket/french-president-elect-hollande-won-t-difficult-obama-195617064.html I have no doubt that the elections of the EU are as manipulated by elitists as they are here in the U.S., and I’m sure false paradigms abound.
Have Europeans forgotten that it was overt government spending that set them on the path to calamity in the first place? Or, are they like Americans; just desperate for any change in the ranks of leadership? One would think that they would take note of the problems here in our country and realize that electing a socialist to replace another socialist is no way out of economic hardship. Former officials like Nicolas Sarkozy may have claimed to be distanced from the socialist ideal, but, as with all globalist puppets, their actions did not match their rhetoric, and they have always supported policies of centralization and big government.
The French and the Greeks have essentially replaced closet collectivists with outspoken collectivists, and will see NO relief from the crisis in the Euro-zone as a result of the political reordering. In fact, the stage has now been set for a volatile chain of dominos. Germany, which is the only economy left holding the EU together, has been unyielding on austerity cuts. A conflict between France and Germany is now inevitable.
Neither will compromise their position, and I can see no other eventual result than a reexamination and perhaps abandonment of the EU charter. How does this affect America? Being that international banks and corporations have forced our countries into interdependency through the engineered chicanery of globalization, any collapse in Europe is going to strike hard around the world, but the worst will hit the U.S. and China. Which is probably why China is disengaging trade away from the U.S. and the EU and focusing on other developing nations: http://www.reuters.com/article/2012/05/08/us-china-economy-trade-idUSBRE84702N20120508
If you thought the Greek rollercoaster was a pain in the neck for investment markets, just wait until the whole of the EU is in a shambles! Spain is next in line, with a 25% official unemployment rate and a massive black market economy forming. As I have been saying for years now, when governments disrupt the financial survival of the people, they WILL form their own alternatives, including black markets and barter markets. It is about survival.
The Spanish government does not care much for these alternatives, though, and has now banned cash transactions over 2500 euros in a futile attempt to squeeze taxes out of the populace through digitally tracked payment methods: http://thedailybell.com/3814/Spain-Bans-Cash Another major concern for Americans is the fact that Europeans are inching towards an abandonment of the dollar. Francois Hollande has openly called for an end to the dollar’s world reserve status, and with a majority backing of the French people, he could easily make this happen, at least where France is concerned.
All it takes is for a few key countries to publically and completely drop the Greenback and the dollar’s reputation as a safe haven investment will be quashed. This could very well happen before 2012 is over.
QE3 Is The End
Here is the bottom line; U.S. growth is a theater of shadows. There has been no progress, no recovery, only the misrepresentation of statistics. Millions of Americans have fallen off unemployment rolls because they have been jobless for too long, which lowers the unemployment rate, but does not change the fact that they are still without work.
Durable goods orders are dropping like an avalanche. U.S. credit has been lowered yet again by ratings agency Egan-Jones. With China making bilateral trade deals in numerous countries on the condition that the dollar be dropped as the primary purchasing mechanism, and with the EU turning to economic mulch, the currency’s safety is nonexistent. Traditional investors who cling to the idea that a falling Euro spells dollar strength will be sorely disappointed when the currency is suddenly being rejected in international currency markets.
The Federal Reserve has already stated that any signs of “relapse” into recession (the recession that we never left) will be met with all options on the table, including QE3 (third round of Qualitative Easement): http://www.reuters.com/article/2012/04/12/us-usa-fed-idUSBRE83B1KD20120412 I believe that QE3 will probably be announced this year (due in large part to trauma from Europe), and, that this will trigger a mass movement by foreign nations to drop the dollar as the world reserve. QE3 will be the straw that broke the camel.
How exactly this will play out socially and politically, I do not know (I could take a good guess though). But, the technical results are predictable. The Fed will respond to the lack of treasury purchases by ramping up fiat printing in order to cover the ever increasing costs of the government machine. The Greenback will immediately lose a large portion of its value, at least in terms of imported goods, causing inflation in prices.
Oil and energy prices will skyrocket if OPEC follows suit (which they will, though the Saudis may still honor dollars for a time). Doing any traditional business will become nearly impossible, and price inflation will dominate the lives and the minds of average unprepared citizens. The amount of time that it will take for these difficulties to unfold is also not clear. We are operating in uncharted territory, and dealing with a collapse scenario on a truly planetary scale.
My best advice is to assume that the avalanche will move fast. While markets in our country have seen only mild disruptions so far this year, their solidity is predicated on a host of props and costume pieces, any one of which could pull the rug out from under America’s suspension of disbelief if it strays but a little from the illusion. As long as the dollar holds, stocks can be infused with bailout juice through major banks. So can major companies and even desperate state governments on the verge of bankruptcy. The Dow will remain relatively friendly, and day traders and the public will remain happy. As soon as the dollar comes into question, all bets are off…
Does This Mean Doom, Or Just Another Bad Day?
The real beginning of today’s collapse is tied to the events of 2008. The pace of it has been deceptive, but also, in a way, it is a gift. Over the past four years, I have personally seen the awakening of thousands of people that may have never had the chance if the system had gone into full spectrum breakdown right away.
The question now is, how much longer can the U.S. wobble along on one wheel? In my view, and from the evidence I see in markets at the moment, not much longer. It is hard to set aside any expectations that the next leg down will be easy to digest for the populace. The reality of our predicament is starting to hit home. All the tax return checks have been spent. The credit cards have been maxed. The new cars have been sold off and traded in for ghetto-mobiles. The good jobs have been replaced with Taco Bell slavery.
A trip to see The Avengers is now the family vacation. And, the distractions of reality TV just aren’t buttering our bread anymore. It’s the little things at first that really signal the financial mood of a society, as well as reveal the more vital and looming issues just over the horizon. All indicators suggest that this year will be unlike any other before. In 2008, we saw the first trigger events for the collapse.
In 2008/2009, we saw the creation of the bailout culture, setting the stage for inflation and dollar disintegration. In 2010, we saw the first bilateral trade deal cutting out the dollar between China and Russia, which is now the template for trade deals all over the globe. In 2011, we saw the first downgrade of the U.S. credit rating and the crisis in the EU become epidemic.
In 2012, I see not just another difficulty to add to the mountain, but a culmination of all these detriments to produce something entirely new; a vast and subversive realignment forcing many of us to take a more aggressive stance in the fight for an economically and socially free America. Financial disasters have always been a convenient catalyst for a host of even more frightening obstacles, including civil unrest, and blatant totalitarianism.
This is the cusp. It is one of those moments that people of later generations read about in awe, and sometimes horror. The “doom” is not in the event, but in the response. What we make of the days approaching determines the darkness that they cast upon the future. It is a test. It is not something to be dreaded.
It is something to be seized upon, and dealt with, as great men and women before us have done. At the very least, we know that it is coming. That, in itself, could well seal our success…
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Greek Euro exit talks begin
From the monetary fortress of the European Central Bank to the pro-European duchy of Luxembourg, policy makers are beginning to air their doubts that Greece can stay in the euro.
Post-election tumult in Athens has put the once-taboo subject of an exit from the 17-country currency union on the agenda, lifting the veil on possible scenario planning afoot behind the scenes.
“If Greece decides not to stay in the euro zone, we cannot force Greece,” German Finance Minister Wolfgang Schaeuble said at a conference sponsored by German broadcaster WDR in Brussels yesterday. “They will decide whether to stay in the euro zone or not.”
After 386 billion euros ($499 billion) in aid pledges for Greece, Ireland and Portugal, 214 billion euros in ECB bond purchases and another trillion euros in low-interest loans for banks, plus 17 high-level crisis summits, Greece’s political chaos thrust Europe into a perilous new phase.
The world is witnessing an “important moment in European Union history, a moment of crisis,” EU President Herman Van Rompuy said in Brussels on the 62nd anniversary of the declaration by Robert Schuman, then France’s foreign minister, that launched postwar European integration.
Euro’s Drop The euro fell for the eighth day as it dawned on investors that Greek voters’ revolt against austerity, and not the victory of Socialist Francois Hollande in France, was the more significant of the two national elections in the EU on May 6.Bonds of at-risk countries have suffered since the balloting. Spain’s extra 10-year yield over German levels widened to 456 basis points from 415 at the end of last week. Italy’s widened to 408 basis points from 385 over the same timespan. The euro bought $1.2950 at 6:15 p.m. in Brussels, bringing its eight-day loss to 2.4 percent.
“Politically speaking, Greece is already out of the euro zone,” Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, said in an e-mailed note. “The only question is about the timing and disorderliness of its exit.
The Greek parties running on an austerity-for-rescue platform took one-third of the vote. Top vote getter Antonis Samaras failed to assemble a government, throwing in the towel after a few hours. Second-place finisher Alexis Tsipras of the Syriza party began coalition talks with an ultimatum to would-be partners to renounce support for the bailout.
Catastrophic UncertaintyThe response outside Athens left little room for maneuver. Schaeuble said that fiddling with the bailout terms would unleash ‘‘catastrophic uncertainty’’ in financial markets, and the central bank’s verdict came from his former deputy, Joerg Asmussen.
‘‘Greece has to be aware that there is no alternative to the agreed consolidation program if it wants to remain a member of the euro zone,’’ Asmussen, who last year moved from the German Finance Ministry to the ECB board, told Handelsblatt in an interview published yesterday.
With polls showing roughly the same proportion of Greeks wanting to stay in monetary union while opposing austerity, the haggling over the future government and possible elections next month put the country before two incompatible options.
Very Painful‘‘If 80 percent of Greeks want to stay in the euro, then I think they have to support parties that are in favor of this policy of staying in the euro,’’ Luxembourg Foreign Minister Jean Asselborn said at the Brussels conference. Otherwise ‘‘comes the point where Greece unfortunately has squandered the opportunity and that will be very, very painful for the people.’’
European treaties label the euro ‘‘irrevocable’’ and provide no legal procedure for a country to leave or be thrown out. A December 2009 study by the ECB’s legal department deemed an ouster or departure ‘‘so challenging, conceptually, legally and practically, that its likelihood is close to zero.’’
Europe’s crisis managers put the odds at zero until last November, when German Chancellor Angela Merkel and French President Nicolas Sarkozy turned a planned Greek referendum on austerity into an in-or-out vote on Greece’s euro future.
The referendum was dropped and the Greek leader who mooted it, George Papandreou, was out within days. A nonpartisan government led by former ECB Vice President Lucas Papademos took over. Unlike Italy, which got a technocratic government at the same time, Greek politicians gambled on early elections.
Re-VoteWith the coalition talks in Athens at risk of stalemating, another vote may come as soon as next month.
Merkel’s first finance minister, Peer Steinbrueck, questioned whether a new election would yield a functioning government with the mandate to deliver the additional savings demanded by international donors.
Greece may be mired in ‘‘a fragile, virtually paralyzed situation for months,” Steinbrueck, a potential challenger to Merkel in Germany’s 2013 election, said at the Brussels conference.
The next Greek ballot “will be a referendum on continued euro membership,” said John Stopford, co-head of fixed income and currency in London at Investec Asset Management, which oversees about $90 billion. “As last week’s election shows, it’s going to be a close-run thing.”
Oil company brags melting glacier
"This giant glacier has remained unmelted for centuries. Yet, the petroleum energy Humble supplies- if converted into heat- could melt it at the rate of 80 tons each second! To meet the nation's growing needs for energy, Humble has applied science to nature's resources to become America's Leading Energy Company. Working wonders with oil through research, Humble provides energy in many forms- to help heat our homes, power our transportation, and to furnish industry with a great variety of versatile chemicals. Stop at a Humble station for new Enco Extra gasoline, and see why the "Happy Motoring" sign is the World's First Choice!" - copy in small print in ad
I stumbled upon a mention of the two-page spread pictured above while reading Steve Coll’s excellent new book, “Private Empire” (Penguin Press), which highlights the outsized worldwide power of ExxonMobil. The ad—by Exxon precursor Humble Oil—appeared in the February 2, 1962 issue of Life magazine and features the headline: “Each day Humble supplies enough energy to melt 7 million tons of glacier!”
How times have changed. Fifty years ago, a major oil company had no misgivings about using the potential destruction of a majestic glacier to convey the enormous power of its energy output. Today, of course, scientists regard “the retreat of glaciers and mankind’s unembarrassed capacity to melt them as signs of a slowly unfolding global catastrophe,” as Coll puts it.
In case you’re wondering, the glacier pictured in the ad is Alaska’s Taku Glacier.
.Descent into Stasis
Navy renames Superferrys
By Staff on 8 May 2012 fo Pacific Business News -
(http://www.bizjournals.com/pacific/news/2012/05/08/navy-renames-former-hawaii-superferry.html)
Image above: The Superferry was always a military project. Where did all that effort to build Hawaii some ferries end of being applied? Here the Austal JHSV-1 (named the USNS Jeju) built for the US Navy and has just finishing sea trails in the Gulf of Mexico in April 2012. “I have never witnessed a more problem-free builder’s sea trial than USNS Spearhead’s,” remarked Joe Rella, president and chief operating officer of Austal USA. I wonder why? From (http://www.apacheclips.com/boards/showthread.php?14572-JHSV-1-Spearhead).
[IB Editor's note: Interesting that the US Navy would name the two Hawaiian vessels after two other strategic islands taken in the expansion of Americam Imperialism.]
The two high-speed ferries built for the shuttered Hawaii Superferry were renamed Tuesday by the vessels’ new owner — the U.S. Navy.
Navy Secretary Ray Mabus announced Tuesday that the Alakai, which sailed between Oahu and Maui from August 2007 until it was shut down in March 2009, and its sister ship, the Huakai, were renamed the USNS Guam and the USNS Puerto Rico.
“High-speed ferries will be used for peacetime operations such as troop transport training, exercise missions and humanitarian and disaster relief,” Mabus said in a statement.
The Pentagon noted in the statement that prior to the Navy’s recent acquisition of the vessels, the two high-speed ferries were used in humanitarian relief efforts in Haiti.
The Navy acquired the two twin-hulled ferries from the U.S. Maritime Administration, which put them up for sale after purchasing them for $25 million each at a September 2010 foreclosure auction.
The federal agency had bid on the vessels using a $150 million guarantee that the federal government made to Hawaii Superferry LLC to build the 836-passenger ferries. The Maritime Administration was owed more than $135 million by the bankrupt Hawaii Superferry.
The Alakai operated service between Honolulu and Kahului for a year-and-a-half, while the Huakai was ready to be placed into service when the Hawaii Superferry shut down in March 2009 after the Hawaii Supreme Court ruled that a state law that had allowed it to operate without conducting an environmental impact statement was unconstitutional.
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