What The Fucks Going On Blog

"Democracies will collapse due to countries' debts" - EU Comm. Pres.

Democracy could ‘collapse’ in Greece, Spain and Portugal unless urgent action is taken to tackle the debt crisis, the head of the European Commission has warned.

In an extraordinary briefing to trade union chiefs last week, Commission President Jose Manuel Barroso set out an ‘apocalyptic’ vision in which crisis-hit countries in southern Europe could fall victim to military coups or popular uprisings as interest rates soar and public services collapse because their governments run out of money.

The stark warning came as it emerged that EU chiefs have begun work on an emergency bailout package for Spain which is likely to run into hundreds of billions of pounds. 

Crisis point: Demonstrators protest cuts announced by the Government in Malaga last week in an echo of the Greek crisis

A £650 billion bailout for Greece has already been agreed.

John Monks, former head of the TUC, said he had been ‘shocked’ by the severity of the warning from Mr Barroso, who is a former prime minister of Portugal.

Mr Monks, now head of the European TUC, said: ‘I had a discussion with Barroso last Friday about what can be done for Greece, Spain, Portugal and the rest and his message was blunt: “Look, if they do not carry out these austerity packages, these countries could virtually disappear in the way that we know them as democracies. They've got no choice, this is it.”

‘He's very, very worried. He shocked us with an apocalyptic vision of democracies in Europe collapsing because of the state of indebtedness.’

Greece, Spain and Portugal, which only became democracies in the 1970s, are all facing dire problems with their public finances. All three countries have a history of military coups.

Greece has been rocked by a series of national strikes and riots this year following the announcement of swingeing cuts to public spending designed to curb Britain’s deficit.

Spain and Portugal have also announced austerity measures in recent weeks amid growing signs that the international markets are increasingly worried they could default on their debts.

Dictatorships: An end to democracy in Europe could see a return of figures ruling dictatorships. General Franco was dictator of Spain until 1975; Georgios Papadopoulos led a military junta until 1973; and Antonio de Oliveira Salazar ruled as Portugese president until 1968

Other EU countries seeing public protests over austerity plans include Hungary, Italy and Romania, where public sector pay is to be slashed by 25 per cent.

Deputy Prime Minister Nick Clegg, who visited Madrid last week, said the situation in Spain should serve as a warning to Britain of the perils of failing to tackle the deficit quickly.

He said the collapse of confidence in Spain had seen interest rates soar, adding: ‘As the nation with the highest deficit in Europe in 2010, we simply cannot afford to let that happen to us too.’

Mr Barroso’s warning lays bare the concern at the highest level in Brussels that the economic crisis could lead to the collapse of not only the beleaguered euro, but the EU itself, along with a string of fragile democracies.

DICTATORSHIPS

GREECE: Georgios Papadopoulos was dictator from 1967 to 1974.
The Colonel led the military coup d'etat in 1967 against King Constantine II amid political instability. He was leader of the junta which ruled until 1974.
Papadopoulos was overthrown by Brigadier Dimitrios Ioannidis in 1973. Democracy was restored in 1975.

SPAIN: General Francisco Franco led Spain from 1936 until his death in 1975. At the end of the Spanish Civil War he dissolved the Spanish Parliament and established a right-wing authoritarian regime that lasted until 1978. After his death Spain gradually began its transition to democracy.

PORTUGAL: Antonio de Oliveira Salazar's regime and its secret police ruled the country from 1932 to 1968. He founded and led the Estado Novo, the authoriatan, right-wing government that controlled Portugal from 1932 to 1974. After Salazar's death in 1970, his regime persisted until it eventually fell after the Carnation Revolution.

But it risks infuriating governments in southern Europe which are already struggling to contain public anger as they drive through tax rises and spending cuts in a bid to avoid disaster.

Mr Monks yesterday warned that the new austerity measures themselves could take the continent ‘back to the 1930s’.

In an interview with the Brussels-based magazine EU Observer he said: ‘This is extremely dangerous. 

'This is 1931, we're heading back to the 1930s, with the Great Depression and we ended up with militarist dictatorship.

‘I'm not saying we're there yet, but it's potentially very serious, not just economically, but politically as well.’

Mr Monks said union barons across Europe were planning a co-ordinated ‘day of action’ against the cuts on 29 September, involving national strikes and protests.

David Cameron will travel to Brussels on Thursday for his first summit of EU leaders since the election.

Leaders are expected to thrash out a rescue package for Spain’s teetering economy. Spain is expected to ask for an initial guarantee of at least £100 billion, although this figure could rise sharply if the crisis deepens.

News of the behind-the-scenes scramble in Brussels spells bad news for the British economy as many of our major banks have loaned Spain vast sums of money in recent years.

Germany’s authoritative Frankfurter Allgemeine Newspaper reported that Spain is poised to ask for multi-billion pound credits.

Mr Barroso and Jean-Claude Trichet of the European Central Bank are united on the need for a rescue plan.

The looming bankruptcy of Spain, one of the foremost economies in Europe, poses far more of a threat to European unity and the euro project than Greece. 

Greece contributes 2.5 percent of GDP to Europe, Spain nearly 12 percent.

Yesterday’s report quoted German government sources saying: ‘We will lead discussions this week in Brussels concerning the crisis. It has intensified to the point that the states do not want to wait until the EU summit on Thursday in Brussels.”’

At the end of last month the credit rating agency Fitch downgraded Spain, triggering sharp falls on stock markets.

On Friday the administration in Madrid continued to insist no rescue package was necessary.  But Greece said the same thing before it came close to disaster.

Yesterday the European Commission and the statistics authority Eurostat met to consider Spain‘s plight as many EU countries consider the austerity package proposed by the Madrid administration insufficient to deal with the country‘s problems.

By Jason Groves
Last updated at 8:24 AM on 15th June 2010

http://www.dailymail.co.uk/news/worldnews/article-1286480/EU-chief-warns-democracy-disappear-Greece-Spain-Portugal.html

Long-term effects of the BP "Oil-Cano" Emerge - Gulf "Dead Zone"

EARL NASH

"When the pellets of poison

are flooding the waters."

  

>>>>>  “ It’s news to YOU  <<<<<<<<<<

Speaking from the Oval Office, President Obama will try to convince the nation that he is actively engaged in solving the eco-crisis caused by the BP "Oil-Cano" in the GOM, but some experts say the worst is yet to come.

It appears that the material spewing to the surface now contains new material that indicates that the pressure  of the gusher is grinding up rock near the great gash and sandblasting the hole. 

We are told that it will take about 2 months to drill the relief wells; but, while this "solution" proceeds, so does the grinding process and the race is on to avoid a larger eruption.

Another long-term problem is emerging, as the vapors from the spill, including the carcinogen benzene, waft northward and create a health hazard for workers and residents. 

 

The first of what are predicted to be many hurricanes this season is forming in the Atlantic; these storms will carry the toxins into the atmosphere and poison croplands and fresh water sources.

 

As the environment deteriorates and jobs are impossible to find, renters will move to other states and home "owners" will join the exodus by leaving the keys on the kitchen counter, creating a "deed for loan" crisis, which will result in massive foreclosures and turn the Gulf states into a vast wasteland.

 

While the politicians play the useless Blame Game in Congress and the MSM keep We The Sheeple focused on plugging the hole, who is anticipating the long-lasting ramifications that we will cope with long after they cap the leak?--if they can...

 

0000000000000000000000000000000000000000000000

We need to prepare for the possibility of this blow out sending more oil into the gulf per week then what we already have now, because that is what a collapse of the system will cause. All the collection efforts that have captured oil will be erased in short order. The magnitude of this disaster will increase exponentially by the time we can do anything to halt it and our odds of actually even being able to halt it will go down.

 

We have 2 months left before the relief wells are even near in position and set up to take a kill shot and that is being optimistic as I said.

Over the next 2 months the mechanical situation also cannot improve, it can only get worse, getting better is an impossibility. While they may make some gains on collecting the leaked oil, the structural situation cannot heal itself. It will continue to erode and flow out more oil and eventually the inevitable collapse which cannot be stopped will happen. It is only a simple matter of who can "get there first"...us or the well.

We can only hope the race against that eventuality is one we can win, but my assessment I am sad to say is that we will not.

The system will collapse or fail substantially before we reach the finish line ahead of the well and the worst is yet to come.

 

About the author:

I used to cover the energy business (oil, gas and alternative) here in Texas, and the few experts in the oil field -- including geologists, chemists, etc. -- able or willing to even speak of this BP event told me early on that it is likely the entire reserve will bleed out. Unfortunately none of them could say with any certainty just how much oil is in the reserve in question because, for one thing, the oil industry and secrecy have always been synonymous. According to BP data from about five years ago, there are four separate reservoirs containing a total of 2.5 billion barrels (barrels not gallons). One of the reservoirs has 1.5 billion barrels. I saw an earlier post here quoting an Anadarko Petroleum report which set the total amount at 2.3 billion barrels. One New York Times article put it at 2 billion barrels.

If the BP data correctly or honestly identified four separate reservoirs then a bleed-out might gush less than 2 to 2.5 billion barrels unless the walls -- as it were -- fracture or partially collapse. I am hearing the same dark rumors which suggest fracturing and a complete bleed-out are already underway. Rumors also suggest a massive collapse of the Gulf floor itself is in the making. They are just rumors but it is time for geologists or related experts to end their deafening silence and speak to these possibilities.

All oilmen lie about everything. The stories one hears about the extent to which they will protect themselves are all understatements. BP employees are already taking The Fifth before grand juries, and attorneys are laying a path for company executives to make a run for it.

 

dougr on June 13, 2010 at http://www.theoildrum.com/node/6593#comment-648967

EU Crisis Pt. 2: Greece rated "junk" - Spain's banks teeter on collapse - the second PIIG to the trough

Published Date: 15 June 2010

By Andrew Whitaker

THE European economy edged towards a fresh crisis yesterday, as Spain's leaders were forced to admit that credit had dried up for some of the country's banks.

• Union activists demonstrate against planned public-service cuts in Bilbao. Picture: Getty Images

In a development that has echoes of the economic panic which swept the world in the wake of the collapse of Lehman Brothers, Spain's finance minister and a senior banker admitted that the country's banks were being hit by a freeze on the international lending market, with cash flow at a stand-still.

Business leaders and politicians warned that the crisis in confidence could have repercussions across Europe.

German chancellor Angela Merkel raised the prospect of Spain becoming the second country after Greece to get a euro bail-out. Banking sources said the liquidity freeze was affecting savings banks and small banks, but not the country's biggest financial institutions.

Among those are Santander – which owns Abbey National, including Bradford & Bingley – and BBVA, which was in talks this month to buy the Yorkshire and Clydesdale banks. Other big players in the Spanish banking sector include Banco Popular Español, La Caixa and Bankinter.

In a further blow to European financial confidence, the credit ratings agency Moody's downgraded Greek sovereign debt by four notches to "junk" status.

The Bank of Italy has said that its country's public debt reached a record 1.8 trillion (£1.5trn) in April, as the economic crisis continues to grip Europe.

Dougie Adams, the senior economic adviser to the Ernst & Young Scottish Item Club of economists, said that if the crisis turned into a full-scale breakdown of the euro, the money markets would be entering "totally new territory".

Mr Adams also warned that the crisis in Spain and Greece could lead to UK banks becoming "more cautious" about lending, as well as harming exports.

He said: "It all depends what exposure UK banks have to these European economies. It could eat into the capital position of UK banks and make them more cautious about lending.

"But that's just a potential problem, as I suspect UK banks don't have that much access to banks in southern Europe.

"It could weaken exports, as Greece and Spain may be important to some companies exporting from here."

He added: "At this stage I don't see a need for mad panic. Clearly we have issues with a large government deficit. But we've taken the escape route of devaluation of the pound, which means as public-sector demand falls we have a good opportunity of seeing export demand grow. But clearly, if Europe or bits of it is in trouble, this doesn't help us, as it makes it more difficult for our exports."

Spain's government denied it was on the brink of needing Greek-style financial rescue package.

The Greek parliament recently forced through a programme of austerity measures, leading to mass street protests against cuts imposed on frontline services, along with severe wage restraint.

Spain is implementing several major economic programmes at the same time to save itself from an economic crisis, including a £15bn euro austerity plan, a shake-up of the labour market and a consolidation of its banking sector.

The fourth-largest economy in the Eurozone, the country needs to refinance 16.2bn of bonds in July.

Spain's treasury secretary, Carlos Ocana, admitted that there was a liquidity freeze on some of the country's banks and said the government was working to restore confidence through budget cuts and economic reforms.

"It's definitely a problem," he told business leaders in the northern town of Santander. But he denied that Madrid was negotiating any financial aid package.

Mr Ocana said: "Spain does not need additional financing from any international institution. The rumour is false, and I deny it."

Francisco González, the chairman of Spain's second-largest bank, BBVA, agreed the problems were harming the borrowing abilities of the country's companies and financial firms. "If the Spanish state has difficulty in financing itself outside Spain, then the difficulties will be even greater for those in the private sector," he said.

"For the majority of companies and Spanish financial firms, international capital markets are closed."

Spain should bring public spending under control and ensure there was transparency, he said, while imposing structural reforms in pensions, labour, health and education.

Mr González added: "Spain has three urgent tasks, one of which is to ensure its public finances are sustainable in the medium-long term by guaranteeing transparency and controlling public spending and debt."

He also said the financial system needed to be restructured.

Meanwhile, the Spanish government said it had given up on three-way talks with unions and business leaders to get a consensus on labour reform and was now negotiating with political parties to ensure the plans won the backing of parliament. The minority Socialist administration says reforms are needed to strengthen the economy.

Spain's biggest trade union said it would be calling a general strike to protest against the government's plans and would announce a date for the strike at a news conference today.

BARELY a month after eurozone officials fired a 750 billion (£620bn) "super bazooka" to staunch market worries of a Greek sovereign default, Spain finds itself suffering a flight of confidence.

Carlos Ocana, Spain's treasury secretary, admitted yesterday that some Spanish banks were struggling to gain access to foreign capital. The interest rate on the country's government debt is also rising. Critical talks are being held with the country'

http://www.scotsman.com/news/Spanish-banks-teeter-on-brink.6361682.jp

Israel and Iran ready to begin WW III, kill all life on planet Earth

EARL NASH

"It's just a shot away...shot away..."

[Gimme Shelter, The Rolling Stones]

 

>>>>>  “ It’s news to YOU  <<<<<<<<<<

Lunatic leaders in Israel, Iran, and North Korea are competing to be the first to start World War III, and end all life on Earth, as they ratchet up their threats and belligerence, victims of "malignant Narccisim"  and testosterone poisoning.

*  Iranian President Armanijad is promising to "teach Israelis a lesson," if Netayahu orders his forces to interdict aid ships from Iran and Turkey.  One ship set sail for Gaza last night and another is scheduled to leave on Friday.  Armanijad has vowed to keep sending aid ships to Gaza until the Israeli blockade is lifted.

*  Israeli Prime Minister Netanyahu has "compromised" by launching an investigation into the aid ship massacre by his commandos; however, he has rejected UN demands for an independent investigation and will only allow Israel to investigate itself.

If Israel was willing to kill unarmed Turkish and America civilians, what will it do to Iranians, who are on a mission to "teach Israel a lesson"?

*  North Korean leader, Kim Jong Il, an Elvis impersonator with a deteriorating brain is threatening to turn South Korea into a land of flames; he is ready to launch an all-out war, because the North has aimed loud speakers over the DMZ at his country.

And, Israel may be ready to launch an attack on Iran to set back its nuclear program, since it has just received permission from the Bush Buddies in Saudi Arabia to use their airspace for an attack on Iran.

With its own military resources stretched to the breaking point in the Middle East (and elsewhere), the US is in a precarious position should Iran and Israel finally engage their blood feud.

Remember:

Iraq's military might is to Iran, as "syllable is to sound."  An Iran-Israel war will be devastating for both countries and go like this:

1. Israel, claiming that Iran is planning to use its nuclear facilities to make bombs, will launch a "surgical" strike using US-made Cruise missles from subs off the Iranian coast.  Israel will drop the bunker busting, "mini-nuke" bombs that it bought from the US on Iranian nuclear facilities and likely release nuclear materials into the planet's atmosphere that will circle the globe and poison land, air and water in many countries.  How will the "-stans," India, China, and Pakistan react to being the first ones hit by the Israeli-caused devastation?

And, when the toxic nuke cloud reaches Alaska, Washington, Oregon, Idaho and California, how will the US react to the deadly disaster caused by its #1 Best Friend Country?

And, when the cloud, blown by the upper air currents travels east toward the Midwest "bread basket" and into the Media and Financial capitals of The Big Apple--raining down nuclear radiation on Fox News and the Stock Market on the same day--what will Obama do to Israel?

2. As Israel begins its attack, Iran will launch missiles at major cities in Israel; Iran's terrorist sleeper cells all over the world will be activated.

3. Israel, its major cities destroyed, will launch most of the 300 nuclear weapons, it has claimed it does not have, and turn Iran and the Middle East into a Nuclear Wasteland.

4. The first toxic cloud will seem insignificant as the Species Ending Cloud of radioactive materials--containing hundreds of times more toxins begins it deadly circling of the globe.  How many times will it need to circle the planet before all life is killed?

Thus will the blood feud of countries over religious doctrine bring an end to your life, the life of your family, and the life of The Family of Man.

Yes, it is "just a shot away."

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

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Iran - Israel set stage for WW III - first shot to be fired off Gaza coastline

EARL NASH

"It's just a shot away...shot away...shot away..."

[Gimme Shelter, The Rolling Stones]

 

>>>>>  “ It’s news to YOU  <<<<<<<<<<

Sea battle fear as Iran sends flotilla to Gaza

 

SEA BATTLE FEAR AS IRAN SENDS FLOTILLA TO GAZA

Sunday June 13, 2010

IRANIAN President Mahmoud Ahmadinejad has vowed to breach Israel’s blockade of Gaza, as two aid ships and a military escort prepare to set sail.

In a provocative move the ­Iranian Red Crescent was this weekend due to send two vessels packed with food and medical aid and 70 relief workers.

A third ship, carrying an operating theatre, could follow.

President Ahmadinejad raised the spectre of a sea battle as he warned the ships would be carrying an escort of “volunteer marines” ready to “teach Israelis a lesson.”

Ali Shirazi, the Revolutionary Guard’s spokesman for Supreme Leader Ayatollah Ali Khamenei, said it was “Iran’s duty to defend the innocent people of Gaza”. Foreign Secretary William Hague described the intervention as “unhelpful”.

The blockade has been in place since Hamas took control of Gaza in 2006 despite inter­national concern about a humanitarian crisis.

That concern turned to condemnation on May 31 when, in a raid on a Turkish aid flotilla, nine people were killed by Israeli commandos.

Despite promises of an inquiry the affair has all but destroyed relations between Israel and its main ally in the Muslim world.

Abdolrauf Adibzadeh, the Red Crescent’s director of inter­national affairs, said the ships were being sent in co-ordination with the Turkish government.

Meeting Turkish leaders in Istanbul last week the Iranian president said the vessels would not shrink from a head-on clash with Israeli military.

The threat came ahead of a UN Security Council vote to strengthen sanctions on Iran over its uranium enrichment programme.

Turkey was one of the two nations to vote against the sanctions. The European Union will next week discuss tightening its own sanction regime amid fears Tehran is close to creating weapons-grade uranium. There are also concerns about human rights abuses in Iran, with opposition to the regime ruthlessly suppressed.

On yesterday’s anniversary of President Ahmadinejad’s re-election, opposition leaders advised demonstrators to stay away from Tehran as the Revolutionary Guards warned it would come down on any attempt to create a “security crisis”.

There was a heavy security presence on Tehran’s squares as the elite Guard prepared to clamp down. Senior commander Reza Farzaneh said: “Any revival of street protests is unlikely. But if the sedition movement creates a security crisis, we will confront them with full force.”

Last year’s post-election street protests, the worst unrest since the Islamic republic was founded in 1979, were put down violently by the Guards.

Mass detentions and trials followed. Two people were hanged while many others remain in jail.

//////////////////////////////////////////////////////////////////////////////////////////////

The Iranian Red Crescent will apparently take up Iran's elite Revolutionary Guards' offer to escort its aid ships through Israel's naval blockade of Gaza, which would set up a direct naval confrontation between the two bitter adversaries and possibly start WW III.

The Iranian Red Crescent officials insisted that the planned mission was purely peaceful and humanitarian in its goals.

"One ship will carry donations made by the people (of Iran) and the other will carry relief workers," Abdolrauf Adibzadeh said.

Yet there seems to be little doubt that the Iranian government is the real driving force behind the mission, according to the UK Telegraph.

Although it is a member of the international Red Cross movement, the Iranian Red Crescent is widely viewed as a faction of the regime; Mr Adibzadeh conceded that the decision to sail was taken in conjunction with the Iranian foreign ministry.

The Iranian Red Crescent Society said 8,000 volunteers had enlisted for an attempt break Israel's maritime blockade of Gaza.

The latest challenge to Israel's hold over the enclave comes just days after its naval commandos shot dead nine pro-Palestinian activists on a Turkish vessel that attempted to run the blockade last week.

It is unknown just  how the Iranian ships will reach Gaza. If they attempt to go through the Suez Canal, Egypt is likely to come under pressure to intercept the vessels and deliver their cargo through its border with Gaza. But there have also been suggestions that the Iranians could deploy chartered boats from Lebanon, which has a Mediterranean coastline.

However, should a Red Crescent aid ship with a Revolutionary Guard escort take a direct route toward the Gaza coastline, it could easily set off WW III.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Warn Turkey: warships escort for flotilla to Gaza, "an act or war"--Fmr. Israeli Officer

Act Of War
Uzi Dayan: Israel Must Announce Turkish Warships Casus Beli

By JPost

June 09, 2010 "JPost" -- Israel must send Turkey a clear message that if Turkish warships are sent to accompany the next flotilla trying to break the embargo on Gaza, these will be considered acts of war by Israel , Uzi Dayan, former deputy Chief of General Staff, told Army Radio Monday morning.

"If the Turkish prime minister joins such a flotilla,” Dayan said, “we should make clear beforehand this would be an act of war, and we would not try to take over the ship he was on, but would sink it.”

“If Israel doesn't make this clear beforehand, the Turks will grow increasingly self-assured, and we may indeed find ourselves facing such a scenario, which could have been averted.”

Uzi Dayan attacked a letter sent by Navy veterans calling for a commission of inquiry as confused and irresponsible.

PASSENGER VIDEO: American (19) man beaten, shot 4 times, killed by Israeli commandos

http://www.informationclearinghouse.info/article25672.htm

Posted June 09, 201

EXCLUSIVE: New Video Smuggled Out from Mavi Marmara of Israel’s Deadly Assault on Gaza Aid Flotilla

By Democracy Now!

In a Democracy Now! exclusive, we bring you a sneak preview of previously unseen raw footage from the Mavi Marmara that will be formally released at a press conference at the United Nations later in the day.

The footage shows the mood and the activities onboard the Mavi Marmara in the time leading up to the attack, and the immediate reaction of the passengers during the attack. We are joined by filmmaker and activist Iara Lee, one of the few Americans on the Mavi Marmara ship. Her equipment was confiscated, but she managed to smuggle out an hour’s worth of footage.

US economy "unsustainable" [Fed. Chair]--How YOU will pay the price

EARL NASH

Chairman Ben in Cowboy English:

We are going broke; someone has to pay the price and, surprise!--it's YOU!

 

>>>>>  “ It’s news to YOU  <<<<<<<<<<

Every so often one of the PTB Money Insiders lets the truth slip out, but it is usually buried in long, boring testimony to a Congressional committee pretending to represent the interests of the citizens of the United States.

When a nugget of truth is briefly flashed, it is useful to take a picture of it and appreciate its meaning; it is useful to break the economist's pedantic puffery down into "Cowboy English."

You can read what Fed Chair Bernanke said on Wednesday (below), but here is what he meant:

* If we are lucky enough to survive the latest "financial crisis" (Credit Crunch), where Wall Street transferred its debt to Main Street with the loyal lap dogs in Congress listening to their "Master's Voice," the U.S. is still headed off the cliff.

 Even after economic and financial conditions have returned to normal, however, in the absence of further policy actions, the federal budget appears to be on an unsustainable path." [Chairman Ben]

* Even if the economy "recovers," there is a structural budget gap.  It's like our boat was hit by a rogue wave and we survive it (whew!).  But, the boat still has a large hole in it, which will surely sink it soon.

A variety of projections that extrapolate current policies and make plausible assumptions about the future evolution of the economy show a structural budget gap that is both large relative to the size of the economy and increasing over time. [Chairman Ben]

* With the Baby Boomer Bulge entering their final decades, the DIFFERENCE in the number of people making "withdrawls" from the government (Social Security, Medicare, National Health Plan) and those young worker bees making "deposits" is WIDENING.

(Today each person taking money out of the Social Services fund is supported (almost) by FIVE younger people putting money into that system.  But, by 2030, only THREE young worker bees will be supplied for each retired drone.)

This gap is exacerbated by the unabated rise in the cost of providing health and medical services.

Achieving long-term fiscal sustainability will be difficult. But unless we as a nation make a strong commitment to fiscal responsibility, in the longer run, we will have neither financial stability nor healthy economic growth. [Chairman Ben]

Cowboy English:  "Somethin's gotta give."

Q: Where will the money come from to close that growing gap?

A:  YOU!

1.  Taking more money from the young (Social Security tax, Medicare tax, Federal tax, State tax, VAT, et al.)

2.  Cutting services.

3.  Charging fees.  (deductible, co-pays)

OR...

Regulating insurance company profit margins.

So what?

So, you will be paying the price to close the gap.

In Europe the EU Plutocrats got together and noticed that Greece and other PIIG countries are going down the tubes.  The "solved" the problem by shifting the debt from Greece to Germany; the assumption is that Greece's economy will "grow" and be able to pay Germany back, as well as the interest. [This is based on unrealistic optimism and false hope, not economics.]

The other half of the "solution" was to cut back the services, benefits and salaries of the peasants.  There, that's fixed, the peasants won't mind.

Oh really?

This is where YOU come in.  Today the National Nurses United union in Minnesota (12,000 strong) went on a 1-day strike--the largest nurses' strike in U.S. history.

So what?

In Europe national and local strikes have been the primary weapon of the worker bees against the hive owners for centuries.  The demonstrations, strikes and street riots in Greece are just the canary in the coalmine; Spain, Ireland, Portugal, and Italy--the other "PIIGS" are heading for the trough.  The amount of money that Germany, the European Banksters and, listen, the United States, have "pledged" to stanch the bleeding is paltry, which will become apparent to the world markets, when the PIIGS and soon other EU countries squeal for loans. 

In the U.S., with the states ready to announce just where the cuts will be made, and the structural problems couched in the Bernanke Bombast, expect to see "STRIKES" as the lead story on CNN and the other MSM corporate media shows beginning in July.

/////////////////////////////////////////////////////////////////////////////////////

FOR COWBOY ENGLISH, PRESS 8...

Ben Bernanke's pronouncements on Wednesday:

http://www.federalreserve.gov/newsevents/testimony/bernanke20100609a.htm

 

"Our nation's fiscal position has deteriorated appreciably since the onset of the financial crisis and the recession. The exceptional increase in the deficit has in large part reflected the effects of the weak economy on tax revenues and spending, along with the necessary policy actions taken to ease the recession and steady financial markets. As the economy and financial markets continue to recover, and as the actions taken to provide economic stimulus and promote financial stability are phased out, the budget deficit should narrow over the next few years.

 

Even after economic and financial conditions have returned to normal, however, in the absence of further policy actions, the federal budget appears to be on an unsustainable path. A variety of projections that extrapolate current policies and make plausible assumptions about the future evolution of the economy show a structural budget gap that is both large relative to the size of the economy and increasing over time.

 

Among the primary forces putting upward pressure on the deficit is the aging of the U.S. population, as the number of persons expected to be working and paying taxes into various programs is rising more slowly than the number of persons projected to receive benefits. Notably, this year about 5 individuals are between the ages of 20 and 64 for each person aged 65 or older. By the time most of the baby boomers have retired in 2030, this ratio is projected to have declined to around 3. In addition, government expenditures on health care for both retirees and non-retirees have continued to rise rapidly as increases in the costs of care have exceeded increases in incomes. To avoid sharp, disruptive shifts in spending programs and tax policies in the future, and to retain the confidence of the public and the markets, we should be planning now how we will meet these looming budgetary challenges.

 

Achieving long-term fiscal sustainability will be difficult. But unless we as a nation make a strong commitment to fiscal responsibility, in the longer run, we will have neither financial stability nor healthy economic growth."

 

Brain Loses Focus when Multi-tasking: "technology is rewiring our brains"

This is your brain multi-tasking...

Scientists say juggling e-mail, phone calls and other incoming information can change how people think and behave. They say our ability to focus is being undermined by bursts of information. 

The nonstop interactivity is one of the most significant shifts ever in the human environment, said Adam Gazzaley, a neuroscientist at the University of California, San Francisco.

“We are exposing our brains to an environment and asking them to do things we weren’t necessarily evolved to do,” he said. “We know already there are consequences.”

These play to a primitive impulse to respond to immediate opportunities and threats. The stimulation provokes excitement — a dopamine squirt — that researchers say can be addictive. In its absence, people feel bored.

The resulting distractions can have deadly consequences, as when cellphone-wielding drivers and train engineers cause wrecks. And for millions of people like Mr. Campbell, these urges can inflict nicks and cuts on creativity and deep thought, interrupting work and family life.

While many people say multitasking makes them more productive, research shows otherwise. Heavy multitaskers actually have more trouble focusing and shutting out irrelevant information, scientists say, and they experience more stress.

And scientists are discovering that even after the multitasking ends, fractured thinking and lack of focus persist. In other words, this is also your brain off computers.

“The technology is rewiring our brains,” said Nora Volkow, director of the National Institute of Drug Abuse and one of the world’s leading brain scientists. She and other researchers compare the lure of digital stimulation less to that of drugs and alcohol than to food and sex, which are essential but counterproductive in excess.

Technology use can benefit the brain in some ways, researchers say. Imaging studies show the brains of Internet users become more efficient at finding information. And players of some video games develop better visual acuity.

More broadly, cellphones and computers have transformed life. They let people escape their cubicles and work anywhere. They shrink distances and handle countless mundane tasks, freeing up time for more exciting pursuits.

For better or worse, the consumption of media, as varied as e-mail and TV, has exploded. In 2008, people consumed three times as much information each day as they did in 1960. And they are constantly shifting their attention. Computer users at work change windows or check e-mail or other programs nearly 37 times an hour, new research shows.

Iran's Navy will escort Red Crescent Aid ship to Gaza, first shot of WW III ?

EARL NASH

WW III: "It's just a shot away...shot away..."

[Gimme Shelter, The Rolling Stones]

 

>>>>>  “ It’s news to YOU  <<<<<<<<<<

The Iranian Red Crescent will apparently take up Iran's elite Revolutionary Guards' offer to escort its aid ships through Israel's naval blockade of Gaza, which would set up a direct naval confrontation between the two bitter adversaries and possibly start WW III.

The Iranian Red Crescent officials insisted that the planned mission was purely peaceful and humanitarian in its goals.

"One ship will carry donations made by the people (of Iran) and the other will carry relief workers," Abdolrauf Adibzadeh said.

Yet there seems to be little doubt that the Iranian government is the real driving force behind the mission, according to the UK Telegraph.

Although it is a member of the international Red Cross movement, the Iranian Red Crescent is widely viewed as a faction of the regime; Mr Adibzadeh conceded that the decision to sail was taken in conjunction with the Iranian foreign ministry.

The Iranian Red Crescent Society said 8,000 volunteers had enlisted for an attempt break Israel's maritime blockade of Gaza.

The latest challenge to Israel's hold over the enclave comes just days after its naval commandos shot dead nine pro-Palestinian activists on a Turkish vessel that attempted to run the blockade last week.

It is unknown just  how the Iranian ships will reach Gaza. If they attempt to go through the Suez Canal, Egypt is likely to come under pressure to intercept the vessels and deliver their cargo through its border with Gaza. But there have also been suggestions that the Iranians could deploy chartered boats from Lebanon, which has a Mediterranean coastline.

However, should a Red Crescent aid ship with a Revolutionary Guard escort take a direct route toward the Gaza coastline, it could easily set off WW III.

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