The Wormhole at the “Process Event Horizon”

Ever since the beginnings of fiat money, economies have pulsated between polar opposites: paper and tangibles. The Romans started out with pure gold and silver coins; but with the decline of their economy, they diluted the precious metal content until there was virtually no precious metals in the coins.

There comes a point where it becomes painfully obvious that a society cannot function without economic discipline; meaning there must be controls on the issuance of money. The most reliable method known of today is to make all paper money backed by precious metals, or to use precious metal coins themselves for commerce.

We are in the final phases of the paper-promise-based economy; the point at which perceptions can no-longer be papered over to continue this fiat game. Confidence is lost, without which you cannot operate a system of paper-promises. This is where natural law re-asserts itself and real value overtakes fantasy value in the minds of people everywhere.

It happens quickly, when the game is finally up; there are many examples of hyper-inflation throughout history to give you an idea of how it turns out. The velocity of money increases dramatically when hyperinflation hits, meaning people quickly spend the money they have while it still has value; this causes prices to further escalate in a vicious cycle. In Weimar Germany, when all of the chickens came home to roost, their Papiermark was 1 Trillion to a single US Dollar.

Just imagine what would happen if a significant number of the trillions upon trillions of US Dollars in the system today were mobilized to purchase tangible assets. When you factor in the tremendous amount of money creation taking place throughout the world, the prices of these tangible assets will necessarily go up tremendously when the money hits the real economy.

Reliable sources indicate that the MOPE (Management of Perception Economics) cannot last much longer. The game is likely up in late 2009, going into 2010. We are likely to see a year of perilous decline in the value of the US Dollar. It will be an incredibly bad year for the ill-prepared.

The Final Definition of Inflation According To the Law of Relativity

Jim Sinclair | Jim Sinclair’s Mine Set

Inflation equals money squared.

Eventually no speed of creation of money can maintain the economic stabilizing graviton and according to the law of physics we all fall into the Weimar black hyperinflation hole.

The wormhole at the “process event horizon” (the fall of Lehman Brother and the pending fall of CIT) is from commodity money to commodity money.

The wormhole travels through economic pain and suffering.

YOUR SAFE SHIP IS GOLD BULLION for the transitional trip from commodity money through Weimar hyperinflation and back to commodity money.

As sure as E=MC squared rules in physics, hyperinflation, the black hole of the Bernanke electric money printing press, is here and now accelerating to the speed of light that even at that speed must fall into the black hole in the distorted (by Bernanke) of the financial space – time continuum.

There is no escape from the hyperinflationary result of the infinite quantity of money being created to fill the void of value in the now more than one quadrillion dollars worth of value-less OTC derivatives created from 1991 to 2009.

Alternatives to Empiricism: Experiencing Beyond the “Five Senses”

In this western empiricism “box” that we often put ourselves in, we are resigned to acknowledging only the images that enter our minds through the visual cortex. There are, however, other ways of seeing and experiencing which neither involve the eyes, nor objects that the eyes have seen.

This reliance on the so-called “five senses,” as the only valid form of experience, tends to blind us. Because of it, we often fail to experience the deeper aspects of our being. Indeed there is a kind of circular reasoning behind empiricism; there is this implicitly accepted idea that I cannot know anything beyond what the “five senses” experience of the material realm.

Is there really any basis for the belief that there is nothing beyond the “five senses”?

There are a number of experiences one can have, be it shamanic or meditative, which provide a glimpse of realms of being which are altogether alien to the material world.

Intuition: Delusion or Perception?

Toward a Scientific Explanation of the Akashic Experience

Irvin Laszlo | New Dawn Magazine

The intuitions reported by mystics, poets, artists, ordinary people, even scientists, often go beyond the range of sensory perception. In the reductionist culture inspired by classical science, they are dismissed as mere delusion – classical empiricism claims that there is nothing in the mind that was not first in the eye. However, the classical tenet is not universally upheld. It is exceptional in the annals of history, and even in the context of contemporary cultures. Continue reading Alternatives to Empiricism: Experiencing Beyond the “Five Senses”

Alaska Governor Palin Asserts Sovreignty Under Tenth Amendment

If you watched the post-election interview with Greta Van Susteren, you’ve seen that Sarah Palin is actually nothing like the scripted persona often smeared by the media. In my view, this image of Palin was carefully cultivated to throw the election towards Barrack Obama.

What we have here, is an example of a growing trend of states re-asserting their Tenth Amendment Constitutional rights. Despite Washington DC’s effort to be the dictators of our everyday lives, their efforts will ultimately flounder.

They will fail because they cannot finance their spending spree, in any practical sense. Their lack of foresight will cause the dollar to fail. Once the dollar is finally demolished, I forsee the Federal Empire crumbling and a fracture into smaller centers of power; perhaps it will be the states who absorb the governing authorities.

In my view, a Tenth Amendment revolution is the best possible outcome. We don’t need these out of control dictators in the District of Columbia anymore than I need a hole in my head.

Palin to feds: Alaska is sovereign state

Constitutional rights reasserted in growing resistance to Washington

By Chelsea Schilling | World Net Daily

Gov. Sarah Palin has signed a joint resolution declaring Alaska’s sovereignty under the Tenth Amendment to the Constitution – and now 36 other states have introduced similar resolutions as part of a growing resistance to the federal government.

Just weeks before she plans to step down from her position as Alaska governor, Palin signed House Joint Resolution 27, sponsored by state Rep. Mike Kelly on July 10, according to a Tenth Amendment Center report. The resolution “claims sovereignty for the state under the Tenth Amendment to the Constitution of the United States over all powers not otherwise enumerated and granted to the federal government by the Constitution of the United States.”

Alaska’s House passed HJR 27 by a vote of 37-0, and the Senate passed it by a vote of 40-0.

According to the report, the joint resolution does not carry with it the force of law, but supporters say it is a significant move toward getting their message out to other lawmakers, the media and grassroots movements.

Alaska’s resolution states:

Be it resolved that the Alaska State Legislature hereby claims sovereignty for the state under the Tenth Amendment to the Constitution of the United States over all powers not otherwise enumerated and granted to the federal government by the Constitution of the United States.

Be it further resolved that this resolution serves as Notice and Demand to the federal government to cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers.

While seven states – Tennessee, Idaho, North Dakota, South Dakota, Oklahoma, Alaska and Louisiana – have had both houses of their legislatures pass similar decrees, Alaska Gov. Palin and Tennessee Gov. Phil Bredesen are currently the only governors to have signed their states’ sovereignty resolutions.

The resolutions all address the Tenth Amendment that says: “powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

The Tenth Amendment Center also reported that Florida State Sen. Carey Baker, R-Eustis, introduced a memorial earlier this month urging “Congress to honor the provisions of the Constitution of the United States and United States Supreme Court case law which limit the scope and exercise of federal power.”

“Now more than ever, state governments must exercise their Constitutional right to say no to the expansion of the federal government’s reckless deficit spending and abuse of power,” Sen. Baker said. “With this resolution, our Legislature can send a message to Washington that our state’s rights must be respected.”

The full text of Florida’s memorial is available on the Tenth Amendment Center website.

As WND reported, South Carolina’s proposal, S. 424, is titled: “To affirm South Carolina’s sovereignty under the Tenth Amendment to the United States Constitution over all powers not enumerated and granted to the federal government by the United States Constitution.”

Essentially it’s a reminder that the United States is made up of individual states; it’s not a federal authority broken up into political subdivisions.

In South Carolina, the proposals remains pending in the state Senate, where Sen. Lee Bright said he still hopes that it will be adopted this year.

The proposal there notes specifically that the “federal government was created by the states … to be an agent of the states,” and the states currently “are treated as agents of the federal government,” many times in violation of the Constitution.

Bright told WND the movement is spreading from state to state as fast as lawmakers discover it.

Michael Boldin, a spokesman for the Tenth Amendment Center, said his organization has created a posting for all such proposals to be tracked.

Among the states where such proposals at least have been considered are Louisiana, Colorado, Wisconsin, Florida, Illinois, West Virginia, North Carolina, North Dakota, Ohio, Nevada, Oregon, Alabama, Mississippi, Pennsylvania, Idaho, New Mexico, South Dakota, Virginia, Kentucky, Alaska, Indiana, Tennessee, Arkansas, Minnesota, South Carolina, Georgia, Kansas, Texas, New Hampshire, Massachusetts, Missouri, Iowa, Montana, Michigan, Arizona, Washington and Oklahoma.

In Louisiana, it passed the Senate in May and the House in June.

In Idaho, it passed the House in March and the Senate in April.

In North Dakota, it passed the House and Senate both in April, with the House a short time later adopting changes made by the Senate.

In South Dakota, it was approved by both houses of the Legislature and under that state’s rules does not need the governor’s signature.

In May, Rep. M.J. “Manny” Steele, a Republican in South Dakota, wrote that he believes up to $11 trillion is being wasted in the coming years by Washington’s efforts “to duplicate and micromanage our states’ affairs.”

He said states should manage their own affairs and not be dependent on a federal cash cow to make ends meet. Likewise with industries, he said, citing federal cash dumps on the banking, insurance and automobile industries.

Steele told WND his dollar estimate was based on what President Obama himself has allocated in the coming years to spend on stimulus packages, industry bailouts and the like.

“If we would just let the market take care of these things,” he said.

His letter noted that Alaska, Georgia, Idaho, Missouri, North Dakota, Oklahoma and South Carolina legislatures joined South Dakota’s in passing some statement on the Tenth Amendment this year. The results vary based on state procedures, however. In Oklahoma, the governor vetoed the plan and it was launched on its second trip through the legislature and has been passed by the House.

“Over the course of decades, there have been increasing federal mandates and acts designed to effectively step in and legislate the affairs of our various states from Washington D.C.,” Steele said. “Federal usurpation into state affairs severely limits the ability of state governments to operate according to their citizens’ wishes.”

Fiscal ruin of the Western world beckons

For a glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels, look at what is happening to the Irish welfare state.

By Ambrose Evans-Pritchard | UK Telegraph

Events have already forced Premier Brian Cowen to carry out the harshest assault yet seen on the public services of a modern Western state. He has passed two emergency budgets to stop the deficit soaring to 15pc of GDP. They have not been enough. The expert An Bord Snip report said last week that Dublin must cut deeper, or risk a disastrous debt compound trap.

A further 17,000 state jobs must go (equal to 1.25m in the US), though unemployment is already 12pc and heading for 16pc next year.

Education must be cut 8pc. Scores of rural schools must close, and 6,900 teachers must go. “The attacks outlined in this report would represent an education disaster and light a short fuse on a social timebomb”, said the Teachers Union of Ireland.

Nobody is spared. Social welfare payments must be cut 5pc, child benefit by 20pc. The Garda (police), already smarting from a 7pc pay cut, may have to buy their own uniforms. Hospital visits could cost £107 a day, etc, etc.

“Something has to give,” said Professor Colm McCarthy, the report’s author. “We’re borrowing €400m (£345m) a week at a penalty interest.”

No doubt Ireland has been the victim of a savagely tight monetary policy – given its specific needs. But the deeper truth is that Britain, Spain, France, Germany, Italy, the US, and Japan are in varying states of fiscal ruin, and those tipping into demographic decline (unlike young Ireland) have an underlying cancer that is even more deadly. The West cannot support its gold-plated state structures from an aging workforce and depleted tax base.

As the International Monetary Fund made clear last week, Britain is lucky that markets have not yet imposed a “penalty interest” on British Gilts, given the trajectory of UK national debt – now vaulting towards 100pc of GDP – and the scandalous refusal of this Government to map out any path back to solvency.

“The UK has been getting the benefit of the doubt, both in the Government bond market and also the foreign exchange market. This benefit of the doubt is not going to last forever,” said the Fund.

France and Italy have been less abject, but they began with higher borrowing needs. Italy’s debt is expected to reach the danger level of 120pc next year, according to leaked Treasury documents. France’s debt will near 90pc next year if President Nicolas Sarkozy goes ahead with his “Grand Emprunt”, a fiscal blitz masquerading as investment.

There was a case for an emergency boost last winter to cushion the blow as global industry crashed. That moment has passed. While I agree with Nomura’s Richard Koo that the US, Britain, and Europe risk a deflationary slump along the lines of Japan’s Lost Decade (two decades really), I am ever more wary of his calls for Keynesian spending a l’outrance.

Such policies have crippled Japan. A string of make-work stimulus plans – famously building bridges to nowhere in Hokkaido – has ensured that the day of reckoning will be worse, when it comes. The IMF says Japan’s gross public debt will reach 240pc of GDP by 2014 – beyond the point of recovery for a nation with a contracting workforce. Sooner or later, Japan’s bond market will blow up.

Error One was to permit a bubble in the 1980s. Error Two was to wait a decade before opting for monetary “shock and awe” through quantitative easing.

The US Federal Reserve has moved faster but already seems to think the job is done. “Quantitative tightening” has begun. Its balance sheet has contracted by almost $200bn (£122bn) from the peak. The M2 money supply has stagnated since January. The Fed is talking of “exit strategies”.

Is this a replay of mid-2008 when the Fed lost its nerve, bristling over criticism that it had cut rates too low (then 2pc)? Remember what happened. Fed hawks in Dallas, St Louis, and Atlanta talked of rate rises. That had consequences. Markets tightened in anticipation, and arguably triggered the collapse of Lehman Brothers, AIG, Fannie and Freddie that Autumn.

The Fed’s doctrine – New Keynesian Synthesis – has let it down time and again in this long saga, and there is scant evidence that Fed officials recognise the fact. As for the European Central Bank, it has let private loan growth contract this summer.

The imperative for the debt-bloated West is to cut spending systematically for year after year, off-setting the deflationary effect with monetary stimulus. This is the only mix that can save us.

My awful fear is that we will do exactly the opposite, incubating yet another crisis this autumn, to which we will respond with yet further spending. This is the road to ruin.

Polar bear expert barred by global warmists

source: UK Telegraph

Mitchell Taylor, who has studied the animals for 30 years, was told his views ‘are extremely unhelpful’ , reveals Christopher Booker.

According to the world’s leading expert on polar bears, their numbers are higher than they were 30 years ago

Over the coming days a curiously revealing event will be taking place in Copenhagen. Top of the agenda at a meeting of the Polar Bear Specialist Group (set up under the International Union for the Conservation of Nature/Species Survival Commission) will be the need to produce a suitably scary report on how polar bears are being threatened with extinction by man-made global warming.

This is one of a steady drizzle of events planned to stoke up alarm in the run-up to the UN’s major conference on climate change in Copenhagen next December. But one of the world’s leading experts on polar bears has been told to stay away from this week’s meeting, specifically because his views on global warming do not accord with those of the rest of the group.

Dr Mitchell Taylor has been researching the status and management of polar bears in Canada and around the Arctic Circle for 30 years, as both an academic and a government employee. More than once since 2006 he has made headlines by insisting that polar bear numbers, far from decreasing, are much higher than they were 30 years ago. Of the 19 different bear populations, almost all are increasing or at optimum levels, only two have for local reasons modestly declined.

Dr Taylor agrees that the Arctic has been warming over the last 30 years. But he ascribes this not to rising levels of CO2 – as is dictated by the computer models of the UN’s Intergovernmental Panel on Climate Change and believed by his PBSG colleagues – but to currents bringing warm water into the Arctic from the Pacific and the effect of winds blowing in from the Bering Sea.

He has also observed, however, how the melting of Arctic ice, supposedly threatening the survival of the bears, has rocketed to the top of the warmists’ agenda as their most iconic single cause. The famous photograph of two bears standing forlornly on a melting iceberg was produced thousands of times by Al Gore, the WWF and others as an emblem of how the bears faced extinction – until last year the photographer, Amanda Byrd, revealed that the bears, just off the Alaska coast, were in no danger. Her picture had nothing to do with global warming and was only taken because the wind-sculpted ice they were standing on made such a striking image.

Dr Taylor had obtained funding to attend this week’s meeting of the PBSG, but this was voted down by its members because of his views on global warming. The chairman, Dr Andy Derocher, a former university pupil of Dr Taylor’s, frankly explained in an email (which I was not sent by Dr Taylor) that his rejection had nothing to do with his undoubted expertise on polar bears: “it was the position you’ve taken on global warming that brought opposition”.

Dr Taylor was told that his views running “counter to human-induced climate change are extremely unhelpful”. His signing of the Manhattan Declaration – a statement by 500 scientists that the causes of climate change are not CO2 but natural, such as changes in the radiation of the sun and ocean currents – was “inconsistent with the position taken by the PBSG”.

So, as the great Copenhagen bandwagon rolls on, stand by this week for reports along the lines of “scientists say polar bears are threatened with extinction by vanishing Arctic ice”. But also check out Anthony Watt’s Watts Up With That website for the latest news of what is actually happening in the Arctic. The average temperature at midsummer is still below zero, the latest date that this has happened in 50 years of record-keeping. After last year’s recovery from its September 2007 low, this year’s ice melt is likely to be substantially less than for some time. The bears are doing fine.