In the News Today

Posted at 1:19 PM (CST) by & filed under General Editorial.

Jim Sinclair’s Commentary:

The most endangered specie is on two feet. It is the pensioner and retiree.

New retirees receiving less in Social Security than they paid in, marking historic shift
Published August 07, 2012
Associated Press

People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.
Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.
“For the early generations, it was an incredibly good deal,” said Andrew Biggs, a former deputy Social Security commissioner who is now a scholar at the American Enterprise Institute. “The government gave you free money and getting free money is popular.”
If you retired in 1960, you could expect to get back seven times more in benefits than you paid in Social Security taxes, and more if you were a low-income worker, as long you made it to age 78 for men and 81 for women.

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Jim Sinclair’s Commentary:

The more inviting title is you would not have gone this far unless you plan to kick that can one more time.
The MOPE idea that the can will not be kicked is simply stupid.

 

Jim Sinclair’s Commentary:

This is modest and common in the bankster’s domain.
The first collapse in Western finance was due to OTC derivatives.
The final collapse of this drama will be as a product of FASB’s permitting the valuation of bank paper at any level the bank wishes with no consideration of a market worthiness or viability.
The sin of the OTC derivative is greed without any concept of ethics.
The sin of FASB is weakness in the face of political pressure and the selling out of their souls and  purpose to the sociopath devil of Wall Street.
FASB is supposed to be the gatekeeper of transparent and fair auditing.
All major banks’ balance sheets are sick cartoons.
All sovereigns are broke.
QE to Infinity is the only tool capable of kicking this can.
In the final analysis, the can  will be kicked.

The Daily Bail
‘JPM’s $150 Billion FDIC Reality Adjustment’ – Jamie Dimon Just Admitted To The World That JPM’s Assets Are Overvalued By $150 Billion

Reuters published an exclusive story this morning:

U.S. banks told to make secret plans for preventing collapse
Buried in the final paragraph:

In a presentation in March, JPMorgan Chase said it had a recovery plan in place and said it was ordered by regulators. The presentation was organized by Harvard Law School and was closed to the media at the time, but is now available online.

Here’s the BEST part of the JPM document.

It’s easy to see on the PDF:

http://www.law.harvard.edu/programs/about/pifs/symposia/europe/baer.pdf

Go to page 9. Under the wipeout scenario JPM describes a $50 billion trading loss turning into a $200 billion loss as soon as the FDIC takes over. Why… ? Because JPM says they would expect the FDIC to immediately writedown JPM’s assets by an additional $150 billion.

Holy mark to bullshit. Jamie Dimon just admitted to the world that JPM is mis-marking assets to the tune of $150 billion.

It gets better. Go to page 10. The chart shows that they only have $184 billion in equity, minus the $50 billion loss, minus ‘the $150 billion fdic reality adjustment’, which leaves them in a negative equity position of (-$16 billion).

So, we can extrapolate that without this phantom loss of $50 billion, JPM’s real equity position is just $34 billion currently, not the $184 billion on their books.

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Jim Sinclair’s Commentary:

For those of you who are concerned about your freedoms in the “Land of the Free” have a look.
It almost seems like a bad dream that this could come into being.
You do not construct a law you do not plan to use.

What makes our NDAA lawsuit a struggle to save the US constitution

Time after time, Obama’s lawyers defending the NDAA’s section 1021 affirm our worst fears about its threat to our liberty

Activist and reporter Tangerine Bolen, a plaintiff in the case against the NDAA, speaking to the media after a New York judge enjoined section 2012 of the law. Photograph via Fromthetrenchesworldreport
I am one of the lead plaintiffs in the civil lawsuit against the National Defense Authorization Act, which gives the president the power to hold any US citizen anywhere for as long as he wants, without charge or trial.

In a May hearing, Judge Katherine Forrest issued an injunction against it; this week, in a final hearing in New York City, US government lawyers asserted even more extreme powers – the right to disregard entirely the judge and the law. On Monday 6 August, Obama’s lawyers filed an appeal to the injunction – a profoundly important development that, as of this writing, has been scarcely reported.

In the earlier March hearing, US government lawyers had confirmed that, yes, the NDAA does give the president the power to lock up people like journalist Chris Hedges and peaceful activists like myself and other plaintiffs. Government attorneys stated on record that even war correspondents could be locked up indefinitely under the NDAA.

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Decision by Netanyahu, Barak to strike Iran is almost final — Israel TVPM believes Iran’s regime is aiming to ‘destroy the Jewish people,’ does not think Obama will resort to force. Nuclear drive ‘further ahead’ than previously thought. In a year, Israeli action could have only ‘negligible effect’

PM believes Iran’s regime is aiming to ‘destroy the Jewish people,’ does not think Obama will resort to force. Nuclear drive ‘further ahead’ than previously thought. In a year, Israeli action could have only ‘negligible effect’

By TIMES OF ISRAEL STAFF August 11, 2012

Prime Minister Benjamin Netanyahu and Defense Minister Ehud Barak have “almost finally” decided on an Israeli strike at Iran’s nuclear facilities this fall, and a final decision will be taken “soon,” Israel’s main TV news broadcast reported on Friday evening.

Channel 2 News, the country’s leading news program, devoted much of its Friday night broadcast to the issue, detailing the pros and cons that, it said, have taken Netanyahu and Barak to the brink of approving an Israeli military attack despite opposition from the Obama administration and from many Israeli security chiefs.

Critically, the station’s diplomatic correspondent Udi Segal said, Israel does not believe that the US will take military action as Iran closes in on the bomb.

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