The euro is a dying currency. On Thursday, the EUR/USD fell below 1.28 for the first time since September 2010. In fact, as I write this the EUR/USD is sitting at 1.2791. Back in July, the EUR/USD was over 1.45. But this is just the beginning. The euro is going to go a lot lower. At this point, there are several major European nations that are on the verge of default, the European financial system is overflowing with debt and toxic assets, and most major European banks are leveraged about as badly as Lehman Brothers was when it collapsed. Most Americans simply do not grasp the gravity of what is happening. Just because the Dow is sitting above 12000 and a few U.S. economic numbers have improved slightly does not mean that everything is going to be okay. As I wrote about recently, the EU has a bigger economy than we do and they have a bigger banking system than we do. U.S. banks are massively exposed to European sovereign debt and European banking debt. When the financial system of Europe collapses and the euro falls apart it is going to rock the entire planet. So you better look out below - the euro is coming down and it is coming down hard. After the euro implodes, nothing is every going to be the same again.
So how far are we going to see the euro decline?
Julian Jessop of Capital Economics expects the euro to fall much further....
The relative strength of the recent economic data from the US is supporting the dollar more generally, and we expect this divergence to persist as the euro-zone slides into a deep and prolonged recession. Above all, doubts about the very survival of the euro itself are likely to remain a drag on the currency. We therefore continue to expect the euro to fall to around $1.10 by the end of the year.
Others are even more pessimistic.
As I have written about previously, the head of global bond portfolio management at PIMCO believes that the euro is going to go even lower than that....
"Parity with the dollar next year is not out of the question"
Can you imagine that?
1 dollar = 1 euro?
Don't think that it can't happen.
But the decline of the euro is just part of the story. The truth is that Europe is on the verge of a financial collapse that could end up dwarfing the financial crisis of 2008.
Sadly, most Americans have no idea what has been going on in Europe the past few days....
-The stock of the biggest bank in Italy, UniCredit, is absolutely collapsing. Shares of UniCredit fell 14 percent on Wednesday and 17 percent on Thursday.
-Shares of another major Italian bank, Intesa Sanpaolo, fell 7.3 percent on Thursday.
-Shares of three major French banks all fell by at least 5 percent on Thursday.
-Even shares of German banks are falling like a rock. Shares of Commerzbank fell 4.5 percent on Thursday and shares of Deutsche Bank fell 5.6 percent on Thursday.
-The yield on 5 years Italian bonds is back over 6 percent and the yield on 10 year Italian bonds is back over 7 percent. Analysts all over Europe insist that that the Italian debt situation is not sustainable if rates stay this high.
-Italy's youth unemployment rate has hit the highest level ever.
This is mind blowing news.
But what is the top headline on USA Today right now?
"Employers Impose Bans On Smokers"
These are some of the other top headlines on USA Today right now....
"Automakers Rush To Offer Apps In Your Car"
"Bargain Season At Taco Bell, Pizza Hut, Wendy's"
"Does Your Dog Understand You? Study Says Maybe"
Is that what passes as news in this country?
A financial meltdown of historic proportions is happening in Europe and you cannot even find anything about it on the front page of USA Today.
Amazing.
All of us need to snap out of our television-induced comas and start waking up.
Things are about to get really bad for the global financial system.
At this point so much confidence has been lost in the euro that even the Council on Foreign Relations is admitting that the euro is a failure....
The euro should now be recognized as an experiment that failed. This failure, which has come after just over a dozen years since the euro was introduced, in 1999, was not an accident or the result of bureaucratic mismanagement but rather the inevitable consequence of imposing a single currency on a very heterogeneous group of countries. The adverse economic consequences of the euro include the sovereign debt crises in several European countries, the fragile condition of major European banks, high levels of unemployment across the eurozone, and the large trade deficits that now plague most eurozone countries.
If even the CFR is throwing in the towel, that should tell you something about what is about to happen to the euro.
There is a very real possibility that we could see the euro break up at some point during the next couple of years.
It now seems that a report produced a while back by Credit Suisse's Fixed Income Research unit was right on target....
"We seem to have entered the last days of the euro as we currently know it. That doesn’t make a break-up very likely, but it does mean some extraordinary things will almost certainly need to happen – probably by mid-January – to prevent the progressive closure of all the euro zone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks."
The European debt crisis just continues to get worse and worse. None of the solutions that European leaders have tried have worked. We are rapidly approaching the meltdown phase of this crisis.
As I have written about previously, it doesn't take a genius to figure out what is happening in Europe. The equation is simple....
Brutal austerity + toxic levels of government debt + rising bond yields + a lack of confidence in the financial system + banks that are massively overleveraged + a massive credit crunch = A financial implosion of historic proportions
Unfortunately, what is happening right now in Europe is eventually going to happen in the United States as well.
As I wrote about yesterday, U.S. debt is a ticking time bomb that is going to devastate the entire global economy at some point. Nobody knows when the implosion will happen, but everyone knows that it is inevitable.
When Europe falls apart financially, that is going to make our own financial system much less stable. What is happening in Europe could turn our "limited recovery" into a "major recession" almost overnight.
So keep your eye on the euro.
If the euro keeps going down, that is going to be really bad news for the global economy.
Unfortunately, the truth is that the decline of the euro is just getting started.
Hold on to your hats.
***UPDATE***
The euro continues to drop like a rock. Right now it is at 1.2721.
Michael
Source With Links: The Economic Collapse
Saturday, January 7, 2012
New Nationwide FEMA Camps Should Raise Eyebrows
By Alan P. Halbert
Of all the rumors flying around on the internet, one just refuses to die, and it concerns America's FEMA camps.
In a nutshell, there seems to be a solicitation of bids occurring for the staffing of FEMA camps within 72 hours of implementation by an order from either Homeland Security or the president. This situation begs to be investigated, with special consideration paid to the motives of the present administration.
I went to the source, the FedBizOpps.gov, and searched for the solicitation number HSFEHQ-10-R-0027, titled National Responder Support Camp.
A search of the history of the amendments to this Solicitation for Contract showed that it had been modified several times, with the last modification -- number 0008, with an original date of letting out to bid with a synopsis of May 13, 2011 -- occurring on December 16, 2011. This last modification rescinded the solicitation, with said modification's purpose noted as follows:
1. Cancel Solicitation HSFEHQ-10-R-0027.
2. A new draft solicitation will be issued on January 2012 for industry comment.
3. A Pre-Solicitation Conference will be held approximately two week post draft solicitation.
Okay...score one for the internet and the vigilant citizens who perform an invaluable service to our nation by monitoring the actions of our government and its various agencies.
I began the laborious task of reading the Invitation to Bid -- this tome is 116, pages with many canned and boilerplate requirements for doing business with Uncle Sam duly enshrined amongst the pages. The Task Order Request (TOPR) under Scenario I & II under Section J of the Appendix made for another 42 pages. The required size of the camps was fluid, though they had the required capacity of 301 to two thousand, including security and camp cadre.
The staffing requirements or cadre for FEMA personnel for these camps -- which are identified as being located in five (5) distinct regions throughout and within the borders of the USA, with camps located in each and every state -- was three to fifteen each. The size of these camps will vary around 5 acres per 1,000 inhabitants, though they will never be less than 3 acres for populations of 500 or fewer inhabitants within the camps' boundaries.
This requirement also had a minimum square footage for each inhabitant: either the camp's cadre and first responders of 63 square feet, or approximately 8 feet on each side. This is slightly less than current Federal Court(s) requirements for housing prisoners, which is approximately 72 square feet. Perimeter fencing or barricades is required to be six feet high, enclosing the camp, with all traffic in or out to be recorded on a daily log and with security restricting all traffic and access. The contractor shall also provide fencing and barricades around areas which are "off limits" to occupants. ID Badges are required and are either blue or red, depending on the carrier is temporary or considered an occupant of the camp.
The first of several anomalies in the solicitation for bid was in the contractor staffing requirements, which puzzlingly required staff to be fully operational within 72 hours. Furthermore, "[w]henever practical, displaced citizens will be given the first opportunities for employment within the camp, assuming skills and capabilities are pertinent for the open positions."
This led me to question the stated purpose of these camps, considering that the successful contractor would need to have personnel ready to go on such short notice, with notification from FEMA, Homeland Security, or the president within 72 hours. So the question arises: how could the camp utilize "displaced citizens" in the initial staffing unless the contractor knew where and when a disaster, man-made or otherwise would occur beforehand?
Another anomaly was the requirement that the "off limits" area was to be enclosed before anything else:
The contractor shall also provide fencing and barricades around areas which are "off limits" to occupants. Fencing and barricades are required within 36 hours for "phased" setup timeframes, and 72 hours for the rest of the initial setup timeframe.
Next question: just what is this "off limits" area to be used for, since the bid proposal specified only two (2) classes of occupants of the camp -- temporary or occupant as first responder? Furthermore, it indicates that there may be a camp within the camp, or an area that is to be utilized by another group that is not revealed in the bid solicitation...your guess is as good as mine. Most Americans would not like the ambiguity of this area's function!
Another question arose on the Term of the Contract (F.3), which reads as follows:
The contract shall be effective as of the execution date of the base contract, and shall continue up to five years if all four one-year options are exercised, except that delivery orders placed prior to the expiration date shall remain in full force and effect until deliveries have been completed and payments, therefore, have been made. The final delivery order shall not exceed two years.
The nature of the duration seems to belie a long-term use for these camps, which is also not fitting the transitory nature of natural disasters, with most communities being habitable again after a relatively short period of time. We're talking months, not years.
Under the Principal Place of Performance (F.4), this solicitation implies that all of the areas outlined below must be staffed:
The effort required under this contract shall be performed in the United States. Task Orders will designate the exact locations where services will be provided. The five (5) areas of coverage are broken down as follows:
Area 1: Includes the states of CT, DC, DE, MA, MD, ME, NH, NJ, PA, VT, NY, WV, VA, RI
Area 2: Includes the states of KY, TN, MS, AL, GA, SC, NC, FL
Area 3: Includes the states of CO, IA, IL, IN, KS, MI, MN, MO, MT, ND, NE, OH, SD, UT, WI, WY
Area 4: Includes the states of AR, LA, NM, OK, TX
Area 5: Includes the states of AZ, CA, ID, NV, OR, WA
The language is specific in that all requirements are performed in the United States. However, the language does not specify that it would be a phased approach or even a localized area that experiences a natural disaster -- simply the entire nation.
In the Task Order Proposal Request, there is a specific requirement for large vehicle parking:
Special Requirements:
- Outsized Vehicle Parking within Security Area (> 2.5 ton vehicles): Estimate required space and add to acreage requirement.
- Outsized vehicle parking outside security area (> 2.5 ton vehicles): Estimate required space and add to acreage requirement.
- Mission Support Work Area(s): Minimum square footage, Accessibility
These requirements suggest that the type of vehicle(s) will be either solely high-occupancy (i.e., buses) or large trucks or heavy equipment combined with buses. The interesting point about this section is that the authors allude to a "Security Area" and an "Unsecured Area" with no specific requirements coming forth.
To sum up: the solicitation to bid for the staffing of FEMA camps within 72 hours is a curious proposition, since it appears to predict a calamity that will affect the entire nation simultaneously --completely unlike a location-specific natural disaster.
This may be nothing more than a preparedness exercise by Homeland Security to see if anyone besides the military would be able to meet these stringent requirements for rapid deployment. However, what I found most striking was the "off limits" areas within each camp and staffing with "displaced persons" and the "Mission Support Work Area(s)," all undefined. As citizens, we need to know the exact purpose of these camps, given President Obama's propensity to bend our constitutional republic to his own purposes!
Source With Links: American Thinker
Of all the rumors flying around on the internet, one just refuses to die, and it concerns America's FEMA camps.
In a nutshell, there seems to be a solicitation of bids occurring for the staffing of FEMA camps within 72 hours of implementation by an order from either Homeland Security or the president. This situation begs to be investigated, with special consideration paid to the motives of the present administration.
I went to the source, the FedBizOpps.gov, and searched for the solicitation number HSFEHQ-10-R-0027, titled National Responder Support Camp.
A search of the history of the amendments to this Solicitation for Contract showed that it had been modified several times, with the last modification -- number 0008, with an original date of letting out to bid with a synopsis of May 13, 2011 -- occurring on December 16, 2011. This last modification rescinded the solicitation, with said modification's purpose noted as follows:
1. Cancel Solicitation HSFEHQ-10-R-0027.
2. A new draft solicitation will be issued on January 2012 for industry comment.
3. A Pre-Solicitation Conference will be held approximately two week post draft solicitation.
Okay...score one for the internet and the vigilant citizens who perform an invaluable service to our nation by monitoring the actions of our government and its various agencies.
I began the laborious task of reading the Invitation to Bid -- this tome is 116, pages with many canned and boilerplate requirements for doing business with Uncle Sam duly enshrined amongst the pages. The Task Order Request (TOPR) under Scenario I & II under Section J of the Appendix made for another 42 pages. The required size of the camps was fluid, though they had the required capacity of 301 to two thousand, including security and camp cadre.
The staffing requirements or cadre for FEMA personnel for these camps -- which are identified as being located in five (5) distinct regions throughout and within the borders of the USA, with camps located in each and every state -- was three to fifteen each. The size of these camps will vary around 5 acres per 1,000 inhabitants, though they will never be less than 3 acres for populations of 500 or fewer inhabitants within the camps' boundaries.
This requirement also had a minimum square footage for each inhabitant: either the camp's cadre and first responders of 63 square feet, or approximately 8 feet on each side. This is slightly less than current Federal Court(s) requirements for housing prisoners, which is approximately 72 square feet. Perimeter fencing or barricades is required to be six feet high, enclosing the camp, with all traffic in or out to be recorded on a daily log and with security restricting all traffic and access. The contractor shall also provide fencing and barricades around areas which are "off limits" to occupants. ID Badges are required and are either blue or red, depending on the carrier is temporary or considered an occupant of the camp.
The first of several anomalies in the solicitation for bid was in the contractor staffing requirements, which puzzlingly required staff to be fully operational within 72 hours. Furthermore, "[w]henever practical, displaced citizens will be given the first opportunities for employment within the camp, assuming skills and capabilities are pertinent for the open positions."
This led me to question the stated purpose of these camps, considering that the successful contractor would need to have personnel ready to go on such short notice, with notification from FEMA, Homeland Security, or the president within 72 hours. So the question arises: how could the camp utilize "displaced citizens" in the initial staffing unless the contractor knew where and when a disaster, man-made or otherwise would occur beforehand?
Another anomaly was the requirement that the "off limits" area was to be enclosed before anything else:
The contractor shall also provide fencing and barricades around areas which are "off limits" to occupants. Fencing and barricades are required within 36 hours for "phased" setup timeframes, and 72 hours for the rest of the initial setup timeframe.
Next question: just what is this "off limits" area to be used for, since the bid proposal specified only two (2) classes of occupants of the camp -- temporary or occupant as first responder? Furthermore, it indicates that there may be a camp within the camp, or an area that is to be utilized by another group that is not revealed in the bid solicitation...your guess is as good as mine. Most Americans would not like the ambiguity of this area's function!
Another question arose on the Term of the Contract (F.3), which reads as follows:
The contract shall be effective as of the execution date of the base contract, and shall continue up to five years if all four one-year options are exercised, except that delivery orders placed prior to the expiration date shall remain in full force and effect until deliveries have been completed and payments, therefore, have been made. The final delivery order shall not exceed two years.
The nature of the duration seems to belie a long-term use for these camps, which is also not fitting the transitory nature of natural disasters, with most communities being habitable again after a relatively short period of time. We're talking months, not years.
Under the Principal Place of Performance (F.4), this solicitation implies that all of the areas outlined below must be staffed:
The effort required under this contract shall be performed in the United States. Task Orders will designate the exact locations where services will be provided. The five (5) areas of coverage are broken down as follows:
Area 1: Includes the states of CT, DC, DE, MA, MD, ME, NH, NJ, PA, VT, NY, WV, VA, RI
Area 2: Includes the states of KY, TN, MS, AL, GA, SC, NC, FL
Area 3: Includes the states of CO, IA, IL, IN, KS, MI, MN, MO, MT, ND, NE, OH, SD, UT, WI, WY
Area 4: Includes the states of AR, LA, NM, OK, TX
Area 5: Includes the states of AZ, CA, ID, NV, OR, WA
The language is specific in that all requirements are performed in the United States. However, the language does not specify that it would be a phased approach or even a localized area that experiences a natural disaster -- simply the entire nation.
In the Task Order Proposal Request, there is a specific requirement for large vehicle parking:
Special Requirements:
- Outsized Vehicle Parking within Security Area (> 2.5 ton vehicles): Estimate required space and add to acreage requirement.
- Outsized vehicle parking outside security area (> 2.5 ton vehicles): Estimate required space and add to acreage requirement.
- Mission Support Work Area(s): Minimum square footage, Accessibility
These requirements suggest that the type of vehicle(s) will be either solely high-occupancy (i.e., buses) or large trucks or heavy equipment combined with buses. The interesting point about this section is that the authors allude to a "Security Area" and an "Unsecured Area" with no specific requirements coming forth.
To sum up: the solicitation to bid for the staffing of FEMA camps within 72 hours is a curious proposition, since it appears to predict a calamity that will affect the entire nation simultaneously --completely unlike a location-specific natural disaster.
This may be nothing more than a preparedness exercise by Homeland Security to see if anyone besides the military would be able to meet these stringent requirements for rapid deployment. However, what I found most striking was the "off limits" areas within each camp and staffing with "displaced persons" and the "Mission Support Work Area(s)," all undefined. As citizens, we need to know the exact purpose of these camps, given President Obama's propensity to bend our constitutional republic to his own purposes!
Source With Links: American Thinker
The Dictator Wants to Bypass Congress – The People Cheer
Believe me, the idea of doing things on my own is very tempting.
-President Barack Obama
Glenn Beck assembles a video montage that includes President Obama making reference (on numerous occasions) to bypassing Congress in order to push forward with his agenda. Rather than outrage over the President’s desire to ignore his oath to preserve, protect and defend the Constitution, the masses cheer.
Beck on GBTV:
This is the way a republic ends.
The problem is not Obama. The problem is the American people. Because, if they fall for it this time they’ll fall for somebody worse next time. It’s the American people.
How many times did he say ‘You know there are people that want me to bypass [Congress]‘ ?
He’s setting the road. He’s plowing the field. That’s all he’s doing. And the people are cheering him to violate the Constitution.
-President Barack Obama
Glenn Beck assembles a video montage that includes President Obama making reference (on numerous occasions) to bypassing Congress in order to push forward with his agenda. Rather than outrage over the President’s desire to ignore his oath to preserve, protect and defend the Constitution, the masses cheer.
Beck on GBTV:
This is the way a republic ends.
The problem is not Obama. The problem is the American people. Because, if they fall for it this time they’ll fall for somebody worse next time. It’s the American people.
How many times did he say ‘You know there are people that want me to bypass [Congress]‘ ?
He’s setting the road. He’s plowing the field. That’s all he’s doing. And the people are cheering him to violate the Constitution.
DHS Officers Armed With Semiautomatics Set Up Unannounced ID Checkpoint
Staff of Florida Social Security office not informed of drill, Homeland Security officials refused to talk to media.
Paul Joseph Watson
Infowars.com
Residents of Leesburg, Florida were shocked to see their local Social Security office turned into a random Homeland Security checkpoint Tuesday morning, as DHS officers armed with semiautomatic rifles and accompanied by sniffer dogs checked identifications of locals.
“With their blue and white SUVs circled around the Main Street office, at least one official was posted on the door with a semiautomatic rifle, randomly checking identifications. And other officers, some with K-9s, sifted through the building,” reports the Daily Commercial.
The activity was part of Operation Shield, an unannounced drill conducted by the DHS’ Federal Protective Service centered around “detecting the presence of unauthorized persons and potentially disruptive or dangerous activities.”
Thomas Milligan, district manager for the Social Security Administration office, said staff were not informed their offices were about to be stormed by armed FPS officers. DHS officials refused to answer questions asked by local media and left with no explanation at noon.
“Part of the U.S. Department of Homeland Security, FPS is the federal law enforcement agency that provides integrated security and law enforcement services to over 9,000 federally-owned and leased buildings, facilities, properties and other assets,” states the report.
Indeed, the FPS is used for a variety of roles, not just limited to setting up unannounced ID checkpoints.
As part of the reinvention of the Department of Homeland Security to serve as a tool of political repression, the Federal Protective Service is used by the DHS to track the political activities of peaceful advocacy groups. The FPS was seen arresting photographers in Portland last November during an OWS rally
In 2004, the FPS arrested a veteran for the crime of complaining to his local VA office in Des Moines.
A separate component of Homeland Security, VIPR (Visible Intermodal Prevention and Response), recently received an expansion in funding from Congress that will see 2011′s figure of around 9,300 checkpoints increased with the addition of 12 new VIPR teams, who will be used to carry out security checks at bus depots, train stations, ferry ports and highways.
The extra money is being demanded despite the fact that there is “no proof that the roving viper teams have foiled any terrorist plots or thwarted any major threat to public safety,” according to an L.A. Times report.
Source With Links: Infowars.com
Paul Joseph Watson
Infowars.com
Residents of Leesburg, Florida were shocked to see their local Social Security office turned into a random Homeland Security checkpoint Tuesday morning, as DHS officers armed with semiautomatic rifles and accompanied by sniffer dogs checked identifications of locals.
“With their blue and white SUVs circled around the Main Street office, at least one official was posted on the door with a semiautomatic rifle, randomly checking identifications. And other officers, some with K-9s, sifted through the building,” reports the Daily Commercial.
The activity was part of Operation Shield, an unannounced drill conducted by the DHS’ Federal Protective Service centered around “detecting the presence of unauthorized persons and potentially disruptive or dangerous activities.”
Thomas Milligan, district manager for the Social Security Administration office, said staff were not informed their offices were about to be stormed by armed FPS officers. DHS officials refused to answer questions asked by local media and left with no explanation at noon.
“Part of the U.S. Department of Homeland Security, FPS is the federal law enforcement agency that provides integrated security and law enforcement services to over 9,000 federally-owned and leased buildings, facilities, properties and other assets,” states the report.
Indeed, the FPS is used for a variety of roles, not just limited to setting up unannounced ID checkpoints.
As part of the reinvention of the Department of Homeland Security to serve as a tool of political repression, the Federal Protective Service is used by the DHS to track the political activities of peaceful advocacy groups. The FPS was seen arresting photographers in Portland last November during an OWS rally
In 2004, the FPS arrested a veteran for the crime of complaining to his local VA office in Des Moines.
A separate component of Homeland Security, VIPR (Visible Intermodal Prevention and Response), recently received an expansion in funding from Congress that will see 2011′s figure of around 9,300 checkpoints increased with the addition of 12 new VIPR teams, who will be used to carry out security checks at bus depots, train stations, ferry ports and highways.
The extra money is being demanded despite the fact that there is “no proof that the roving viper teams have foiled any terrorist plots or thwarted any major threat to public safety,” according to an L.A. Times report.
Source With Links: Infowars.com
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