Archive for November, 2009

CORPORATE ACCOUNTS PERFORMANCE – NOVEMBER 2009

November 30, 2009

EQUITY   ACCOUNT

Inception Date: Dec 01, 2008   –   Inception Capital: 10,000 $

Net Assets Value (November 27, 2009): 29,215 $   (monthly return +6.65%)

Realized gain on Speculative Equity Holdings:   +2,987 $

Current gain on Speculative Equity Holdings:   +730 $

Realized gain on Core Equity Holding:   +3,568 $

Current gain on Core Equity Holdings:   +475 $

Realized gain on Protection Hedges:   +520 $

Current Loss on Protection Hedges: -4,438 $

Net Income Premium:    +14,913 $

Dividends:   460 $

All time return: 19,215 $ (+192.15%)

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DERIVATIVE   ACCOUNT

Inception Date: Dec 01, 2008   –   Inception Capital: 30,000 euro

Net Assets Value (November 27, 2009): 39,110 euro   (monthly return +2.35%)

Cash                                                             40,496

Market value options sold                              (2,431)

Market value options bought                          1045

Mark to Market Futures                                 0 

All time return: 9,110 euro (+30.37%)

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BENCHMARCK

EurekaHedge Global All Strategies Hedge Funds Index:   +17.16% (since December 1, 2008)

PAVLOV AND HIS DOGS

November 27, 2009

Exposed by Michael Egnor.

CRIMINAL SCIENCE

November 27, 2009

This is what they did — these climate “scientists” on whose unsupported word the world’s classe politique proposes to set up an unelected global government this December in Copenhagen, with vast and unprecedented powers to control all formerly free markets, to tax wealthy nations and all of their financial transactions, to regulate the economic and environmental affairs of all nations, and to confiscate and extinguish all patent and intellectual property rights.

The tiny, close-knit clique of climate scientists who invented and now drive the “global warming” fraud — for fraud is what we now know it to be — tampered with temperature data so assiduously that, on the recent admission of one of them, land temperatures since 1980 have risen twice as fast as ocean temperatures. One of the thousands of emails recently circulated by a whistleblower at the University of East Anglia, where one of the world’s four global-temperature datasets is compiled, reveals that data were altered so as to prevent a recent decline in temperature from showing in the record. In fact, there has been no statistically significant “global warming” for 15 years — and there has been rapid and significant cooling for nine years.

Worse, these arrogant fraudsters — for fraudsters are what we now know them to be — have refused, for years and years and years, to reveal their data and their computer program listings. Now we know why: As a revealing 15,000-line document from the computer division at the Climate Research Unit shows, the programs and data are a hopeless, tangled mess. In effect, the global temperature trends have simply been made up. Unfortunately, the British researchers have been acting closely in league with their U.S. counterparts who compile the other terrestrial temperature dataset — the GISS/NCDC dataset. That dataset too contains numerous biases intended artificially to inflate the natural warming of the 20th century.

Finally, these huckstering snake-oil salesmen and “global warming” profiteers — for that is what they are — have written to each other encouraging the destruction of data that had been lawfully requested under the Freedom of Information Act in the UK by scientists who wanted to check whether their global temperature record had been properly compiled. And that procurement of data destruction, as they are about to find out to their cost, is a criminal offense. They are not merely bad scientists — they are crooks. And crooks who have perpetrated their crimes at the expense of British and U.S. taxpayers.

I am angry, and so should you be.

What have the mainstream news media said about the Climategate affair? Remarkably little. The few who have brought themselves to comment, through gritted teeth, have said that all of this is a storm in a teacup, and that their friends in the University of East Anglia and elsewhere in the climatological community are good people, really.

No, they’re not. They’re criminals. With Professor Fred Singer, who founded the U.S. Satellite Weather Service, I have reported them to the UK’s Information Commissioner, with a request that he investigate their offenses and, if thought fit, prosecute. But I won’t be holding my breath: In the police state that Britain has now sadly become, with supine news media largely owned and controlled by the government, the establishment tends to look after its own.

At our expense, and at the expense of the truth.

Christopher Monckton

THE ECO-MONSTERS

November 26, 2009

Eco-science has a checkered past. And, we are learning, a checkered present. In what is shaping up as one of the biggest science scandals in modern times, hackers have obtained thousands of e-mails, computer codes, and data sets from climate scientists at the Climate Research Unit (CRU) at the University of East Anglia in England. The CRU is one of the world’s leading climate research institutions; its scientists play central roles in the United Nations Intergovernmental Panel on Climate Change (IPCC). The e-mails involve conversations between CRU scientists and scientists from all over the world who support the theory of man-made global warming. The content of the e-mails is astonishing.

British journalist James Delingpole has a synopsis of the scientific misconduct and criminal fraud revealed in the e-mails that have been analyzed thus far:

1. Manipulation of evidence. In one email, the CRU’s director, Professor Phil Jones apparently confesses to having played with data – most unscientifically – in order to achieve his desired end. “I’ve just completed Mike’s Nature trick of adding in the real temps to each series for the last 20 years (ie from 1981 onwards) amd from 1961 for Keith’s to hide the decline.” (Professor Jones has defended himself, somewhat disingenuously you might think, by saying that “trick” – in the world of science – has no negative connotations).

2. Concealing private doubts about whether the world is really heating up. One scientist expresses his frustration that the global temperatures are not behaving as he feels they ought to behave: “The fact is that we can’t account for the lack of warming at the moment and it is a travesty that we can’t. The CERES data published in the August BAMS 09 supplement on 2008 shows there should be even more warming: but the data are surely wrong. Our observing system is inadequate.”

3. Destruction of evidence (following a Freedom of Information request – almost certainly an illegal activity): “Can you delete any emails you may have had with Keith re AR4? Keith will do likewise. He’s not in at the moment – minor family crisis. Can you also email Gene and get him to do the same? I don’t have his new email address. We will be getting Caspar to do likewise.”

4. Fantasizing violence against prominent climate sceptic scientists: “Next time I see Pat Michaels at a scientific meeting, I’ll be tempted to beat the crap out of him. Very tempted.’

5. Gloating over news of the death of a prominent climate-change skeptic, Australian John L Daly, founder of the Still Waiting For Greenhouse site: “In an odd way this is cheering news.”

6. Attempting to disguise the inconvenient truth of the Medieval Warm Period (ie the period from about 900 to about 1200 when global mean temperatures were considerably warmer than they are now): “……Phil and I have recently submitted a paper using about a dozen NH records that fit this category, and many of which are available nearly 2K back–I think that trying to adopt a timeframe of 2K, rather than the usual 1K, addresses a good earlier point that Peck made w/ regard to the memo, that it would be nice to try to “contain” the putative “MWP”, even if we don’t yet have a hemispheric mean reconstruction available that far back….”

7. And, perhaps, most damningly, a long series of communications discussing how best to squeeze dissenting scientists out of the peer review process. How, in other words, to create a scientific climate in which anyone who disagrees with AGW can be written off as a crank, whose views do not have a scrap of authority: “I think we have to stop considering “Climate Research” as a legitimate peer-reviewed journal. Perhaps we should encourage our colleagues in the climate research community to no longer submit to, or cite papers in, this journal. We would also need to consider what we tell or request of our more reasonable colleagues who currently sit on the editorial board…What do others think?”

The pro-global warming scientists repeatedly and openly discuss fabrication of scientific evidence, systematic efforts to circumvent release of data that would permit others to replicate their published results, destruction of climate data to avoid Freedom-of-Information Act disclosure, and political efforts to remove scientists who question their pro-global-warming assertions from editorial boards. The evidence of scientific misconduct and actual criminal fraud on the part of these scientists is already massive, and detailed analysis of the e-mails and data sets is only in its early stages.

The contents of these e-mails should end the scientific careers of many of the scientists involved. They have collaborated in gross scientific misconduct. Indeed, the fabrication and destruction of data financed by public funds for the purpose of influencing public policy on a global scale is a criminal act, and many of these scientists should be prosecuted criminally. If these scientists were stockbrokers or business executives, they would be on their way to prison. This scandal, involving scientific data that is set to influence the expenditure of trillions of dollars and even influence the structure of governments and regulation on a global scale, dwarfs Enron and Madoff.

Just as disturbing as the smoking-gun evidence for scientific misconduct and fraud is the apparent absence of dissent from these practices by any of the scientists involved in these e-mail correspondences. This misconduct and even criminal behavior seems to be accepted without question, as an intrinsic part of climate science. It would be naive to believe that this misconduct involves only one field of science. In what other areas of science are fraud and scientific misconduct an accepted part of the culture?

The CRU e-mails reveal that many of the leading pro-global warming ‘scientists’ aren’t really a collaborative of professional scientists searching for the truth about the climate; they’re an international crime syndicate

Michael Egnor

OMEN

November 26, 2009

Dies Irae in Thanksgiving Day……..

THE BEAST

November 25, 2009

It cannot be emphasized too strongly (since others will not emphasize it all) that if the global warming scandal is viewed as a singular phenomenon, or even if it is viewed through a “right-left” prism, the revelation of what occurred will be misunderstood, the lessons learned will be faulty and an opportunity will have gone to waste.

Let us then take a broader view. It would be our argument that the global warming manipulation is writ large elsewhere, most obviously throughout modern Western governments and the legislative process. If one were to somehow get one’s hands on the emails of highly placed government officials, one would likely be very surprised at the information revealed. We think it would show clearly that the manipulation of data as regards global warming is replicated in numerous other policies from health care to infrastructure to, of course, military and policing issues.

It is a fact, curious but true, that modern economics shows us that everything that government does distorts the marketplace. Every single law, every regulation, acts as a kind of price fix, diluting the efficiency of marginal utility and interfering with the market signals of supply and demand. This is probably as good a reason as any that as governments grown more authoritarian (totalitarian), the bureaucracy’s focus on secrecy becomes ever-more desperate.

Economic illiteracy is responsible in our view for the prevalence of many of the myths about various kinds of governmental necessity. The dominant social theme that government is needed at least for issues of eminent domain can be easily disproven for instance by visits to countries (Uruguay comes to mind) that abjure zoning and have little interference with private property. In Uruguay, businesses, including casinos and the like, get along just fine with other shops and home-owners without overly invasive zoning. Roads still get built. Bridges are developed as necessary. Another economic myth (a dominant social theme of sorts) is that government is needed to break up monopoly producers – as if the marketplace itself wouldn’t do that if the supplier were not meeting consumer demands.

This abstract (you can read the whole piece here) concludes today’s trilogy. What it wants to teach you, together with yesterday’s post,  is: Government is actually your worst enemy!

TO FLU OR NOT TO FLU…..

November 25, 2009

The swine flu has swept across the United States like a hurricane – hundreds if not thousands of cases have been reported from nearly every county in the nation… and the death toll has been rising.

But are all those flu-like symptoms people come down with really swine flu?

In a recent interview with natural health advocate Dr. Joseph Mercola, CBS News reporter Sharyl Attkisson shared some amazing findings.

“A couple months ago, I got tips from three or four different segments of public health care, with folks telling me that CDC [the Center for Disease Control] has recommended they go ahead and stop testing for and stop counting swine flu cases… and each different entity that contacted me was concerned, thinking that this was something that should not be happening.”

Attkisson started investigating to find out why that decision was made and what the ramifications would be.

“One of my good sources within the government said to me, ‘They’re either trying to overrepresent the swine flu or underrepresent it by not counting it anymore. You need to find out which it is.’”

Examining data state by state, here’s what Attkisson discovered:

  • Of the presumed swine flu cases that had been tested – before the CDC stopped the testing altogether – only a small fraction had actually been swine flu.
  • Even more astounding, the vast majority of likely swine flu cases, as recognized by trained physicians, weren’t flu at all.

According to Attkisson, “They weren’t swine flu, they weren’t regular flu, they were some other sort of upper respiratory infection. . .

“In Florida, they had taken 8,800 specimens – those are presumed likely swine flu cases. 83% of them were negative for flu at all. 17% were regular flu or swine flu.

“So, in other words, of all those presumed swine flu cases, 83% of them weren’t flu.”

She found similar results in California, where health officials tested about 13,700 presumed swine flu cases – of these, a mere 14% were any kind of flu, including 2% swine flu. In Alaska, the number of real swine flu cases was a meager 1%.

Now consider that on October 24, President Obama declared a national emergency due to the swine flu pandemic, and the state of Massachusetts is implementing draconian fines and even jail time for those refusing to get vaccinated. If you had flu symptoms today and went to a doctor, you would be told – according to the CDC’s guidelines – that you had swine flu. And the national media are falling all over themselves reporting on Americans frantically trying to get a hold of the vaccine, which still seems to be in short supply.

In other words: Pandemic panic at its best (or worst), and much ado about nothing.

Shannara Johnson

ROTTEN SOULS

November 25, 2009

The “Goldman Conspiracy” is the perfect B-school case study of Wall Street’s secret contagious pathology, with insiders like Lloyd Blankfein, Henry Paulson and others pocketing billions more of the firm’s profits than shareholders, evidence the new “mutant capitalism” has replaced Adam Smith’s 1776 version which historically endowed the soul of American democracy as well as our capitalistic system.

Sadly for America Goldman’s disease is rapidly becoming a pandemic spreading beyond Wall Street’s too-greedy-to-fail banks, infecting our economy, markets and government as it metastasizes globally.

What are the symptoms of this growing “soul sickness,” this “pathological mutation of capitalism” Bogle fears? Recently we reviewed the consequences of this “soul sickness.”

Today we’ll paraphrase news reports about 15 symptoms spreading “soul sickness” beyond the boundaries of this Goldman case study: These are the 15 signs of a moral pathology undermining not just banking but American democracy and capitalism.

1. Gross denial of any moral damage caused by their rampant greed

Seeking Alpha: “Goldman is America’s most hated corporation.” We cheer as Rolling Stone’s Matt Taibbi calls Goldman “a giant vampire squid wrapped around the face of humanity.” Banks triggered a global crisis. Main Street suffers. Greedy bank CEOs raid the Treasury then stuff $30 billion in their bonus pockets, up 60% from last year. They are our 21st century General Motors, convinced “What’s good for Goldman is good for America.” We saw how that arrogance ended. Wall Street has similar suicidal symptoms.

2. Narcissistic egomaniacs with secret ‘God complexes’

London Times’ John Arlidge interviewed Goldman CEO Blankfein: “He paid himself $68 million in 2007, now worth more than $500 million, yet insists he’s a blue-collar guy. He says banking has a ‘social purpose,’ just a banker ‘doing God’s work.'” When I was at Morgan Stanley in the 1970s the firm ran an ad: “If God Wanted To Do a Financing, He Would Call Morgan Stanley.”

Today, all of Wall Street is dual diagnosed: They’re morally blind money addicts who believe they’re “God’s chosen.” AA would say: They haven’t “bottomed,” won’t recover from their disease till a disaster hits, with another market meltdown and the “Great Depression 2.” Then maybe they’ll “quit playing God.”

3. Paranoid obsessives about secrecy, guilt and non-disclosure

Bloomberg: “New York Fed’s Secret Deal: Taxpayers paid $13 billion more than necessary when government officials, acting in secret, made deals with banks on AIG, buying $62 billion of credit-default swaps from AIG.” The government would eventually cover about $180 billion in AIG swaps backing toxic CDOs when Paulson and Ben Bernanke double-teamed to bailout Goldman, saving them from bankruptcy.
4. Power-hungry need to control government using Trojan Horses

Wall Street Journal: “For a year Goldman said it wouldn’t have suffered damage if AIG collapsed. But a new report kills that claim. TARP inspector general found that then New York Fed Chair Tim Geithner gave away the farm. If AIG had collapsed, Goldman would have had to cover the losses itself. They couldn’t collect on the protection of AIG swaps.” Yes, Goldman was bankrupt. But friends in high places always save them.

5. Borderline personalities who regularly ignore conflicts of interest

New York Times: “Before becoming Treasury secretary in 2006, Hank Paulson agreed to hold himself to a higher ethical standard than his predecessors. He specifically said he’d avoid his old buddies at Goldman where he was CEO. Later Congress saw many conflicts of interest, not just meetings but favorable treatment for his buddies at Goldman.”

6. Pathological liars incapable of honesty even with own investors

McClatchy News: “Goldman secretly bet on the U.S. housing crash after peddling more than $40 billion of securities backed by 200,000 risky home mortgages. But they never told their investors they were also secretly betting that a drop in housing prices could wipe out the value of those securities.” Paulson knew, stayed silent. “Only later did their investors discover Goldman’s triple-A investments were junk. Did Goldman’s failure to disclose its bets on an imminent housing crash violate securities laws?” Boston University Prof. Laurence Kotlikoff says: “This is fraud, should be prosecuted.” But it won’t be in the new “mutant capitalism.”

Members of AA say you know when an alcoholic is lying: Their lips are moving. Same with Wall Street: Think liar’s poker. It’s in their DNA. They’re compulsive liars trapped in a culture of secrecy. They lie, the lies cascade, memory slips, more lies are necessary, they cannot stop lying. Goldman sure can’t … look, their lips are moving again.

7. Sole fiduciary duty to insiders, not investors, never the public

New York Examiner: “Goldman was at the heart of the subprime market, selling subprime junk as no-risk AAA bonds, then gambling, hedging, shorting their investors. Goldman traded like Enron. That set up the meltdown. The Fed and Goldman’s ex-CEO at Treasury saved Goldman. Taxpayers got stuck with the bill. Bailout overseer Elizabeth Warren called this reckless gambling. Trend forecaster Gerald Celente calls it mafia-style looting.

8. Moral issues are PR glitches, violations of ‘don’t get caught’ rule

USA Today says “Goldman Sachs should be celebrating. Yet, the mood at the investment bank seems to be one of crisis about the public backlash over employees’ bonuses.” So Goldman’s on a PR blitz in a bid to undo the damage. They canceled their Christmas party. Also launched a $500 million program for small businesses. Get it? They can’t see their moral failings, only a PR problem, so they hire PR agents and crisis managers first.

9. Charitable donations are tax and PR opportunities, not moral issues

New York Times: Examined Goldman charitable foundation’s tax filing: Thick as a phone book with more than 200 pages of trades. “Never seen anything like it,” said Verne Sedlacek, president of Commonfund, a $25 billion fund for universities and nonprofits. The money to Goldman’s foundation is dwarfed by insiders’ bonuses. The foundation got $400 million, gave away $22 million. Bonuses were 20 times more. Even the New York Post said “Goldman’s Born Again Image is Laughable.” They’re sleaze-ball cheapskates.

10. When exposed in a massive fraud, feign humility, fake an apology

CBS MoneyWatch: “Blankfein now says he’s ‘sorry for the role Goldman played in the housing crisis: We participated in things that were clearly wrong.'” Wrong? Sounds more like he’s admitting to something “clearly criminal.” Reread: Isn’t he admitting guilt to a fraud; cheating millions of homeowners, shareholders, taxpayers? Then laughs at us with phony “restitution,” a fund of $100 million annually for five years to small-business owners. Financial Times says “$100 million is the profits from one good trading day. In 3Q ’09 they had 36 days better than that.” Unfortunately, these crooks will get away with it.

11. When bankruptcy threatens, bribe friends in ‘Happy Conspiracy’

Barron’s: While Geithner was “showcasing what a great investment Washington made in Goldman, the 23% return on the $5 billion of the taxpayers money, Warren Buffett’s deal made him a fabulous 120% return. Goldman’s stock ran up to $180 from $115, a gain of $2.8 billion. Add 8% discount on warrants, another $3.2 billion to him.”
12. Engage co-conspirators to cover up, distract, do your dirty work

Reuters: “Former Merrill Lynch CEO John Thain was fired after a scandal over the billions in Merrill bonuses. He says big insider bonuses don’t cause excessive risk-taking nor the financial crisis.” He blames “poor risk management, excessive leverage and too much liquidity for too long. But even if they tie bonuses to long-term performance, that won’t prevent the next collapse.” Why? They’ll find new ways to break the moral code.

13. As money-hungry vultures they will prey on vulnerable Americans

McClatchy News: “An obscure Goldman subsidiary spent years buying hundreds of thousands of subprime mortgages, many from the more unsavory lenders. They repackaged them as high-yield bonds. The bottom fell out. Now, after years of refusing to disclose they owned the mortgages, the secret is out and Goldman has become one of America’s biggest, greediest foreclosers.” Yes, the vampire squid wants pounds of flesh.

14. Treat everyone not in the ‘Happy Conspiracy’ with tough love

HuffPost’s Leo Leopold warns: “Each day reveals how we’ve traded away our sense of decency and the common good in exchange for pure greed. Unemployment means hunger. The Agriculture Department reports 49 million Americans don’t have enough food, up 13 million over the last year, highest number ever.” Wall Street treats anyone not in the “Happy Conspiracy” as morally defective capitalists in need of “tough love.”

15. Addicts consumed by money: ‘Jesus would throw them out …’

New York Times’ Maureen Dowd: “Goldman’s trickle-down catechism isn’t working. We have two economies. In the past decade Wall Street’s shared little with society. Their culture is totally money-obsessed. There’s always room for a bigger house, bigger boat. If not, you’re falling behind. It’s an addiction. And Washington’s done little to quell it. Geithner coddles wanton bankers. Obama’s absent. ‘Saturday Night Live’ was tougher. And as far as doing God’s work: The bankers who took taxpayer money, pocketing obscene bonuses: They’re the same greedy types Jesus threw out of the temple.”

Warning: Washington, Main Street, none of us has “clean hands.” We’re all in bed with the “Happy Conspiracy,” touched by greed, turning a blind eye to Wall Street’s rapidly metastasizing moral and spiritual pathology: So ask yourself, do you believe America’s widespread “lack of a moral compass” will eventually trigger another, bigger market and economic meltdown, pushing America into the next “Great Depression II?”

Paul B. Farrell

THE UNEMPLOYMENT PROBLEM

November 23, 2009

I’d like to make you a business offer. Seriously. This is a real offer. In fact, you really can’t turn me down, as you’ll come to understand in a moment…

Here’s the deal. You’re going to start a business or expand the one you’ve got now. It doesn’t really matter what you do or what you’re going to do. I’ll partner with you no matter what business you’re in – as long as it’s legal. But I can’t give you any capital – you have to come up with that on your own. I won’t give you any labor – that’s definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you’re allowed to operate your business. That’s my role in the affair: to tell you what to do.

Now in return for my rules, I’m going to take roughly half of whatever you make in the business, each year. Half seems fair, doesn’t it? I think so. Of course, that’s half of your profits. You’re also going to have to pay me about 12% of whatever you decide to pay your employees because you’ve got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you’re my partner. It’s only “fair.”

Now… after you’ve put your hard-earned savings at risk to start this business and after you’ve worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you’d like to cash out – to finally live the good life.

Whether or not this is “fair” – some people never can afford to retire – is a different argument. As your partner, I’m happy for you to sell whenever you’d like… because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.

I know… I know… you put up all the original capital. You took all the risks. You put in all of the labor. That’s all true. But I’ve done my part, too. I’ve collected 50% of the profits each year. And I’ve always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business. Oh… and one more thing…

Even after you’ve sold the business and paid all of my fees… I’d recommend buying lots of life insurance. You see, even after you’ve been retired for years, when you die, you’ll have to pay me 50% of whatever your estate is worth. After all, I’ve got lots of partners and not all of them are as successful as you and your family. We don’t think it’s “fair” for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children. All in all, if you’re a very successful entrepreneur… if you’re one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public… you’ll end up paying me more than 75% of your income over your life. Thanks so much.

I’m sure you’ll think my offer is reasonable and happily partner with me… but it doesn’t really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I’ll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail. That’s how civil society is supposed to work, right? This is Amerika, isn’t it?

That’s the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs…

Porter Stansberry

Protected: ALERT – GLOBAL ALLOCATION INDEX

November 20, 2009

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