What The Government Cant Do For You: Lets

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Monday, April 15, 2013

If I Provide Proof That The Entire Irish Banking System Is A Sham, Does It Set Up A Much Needed System Reboot? Let"s Go For It..

Entering my third week of publicizing my research into what I see as the potential collapse of the Irish banking system, it is about time to bring the series to a close. Before I do, though, there are a couple of loose ends that need tightening up. One is the assertion that the points that I have made are sensationalist. Anyone who has objectively read the articles I put forth cannot be objective themselves and come to a “sensationalist” conclusion. Secondly, there appears to be some who believe the many charges that I proffered as evidence are not actually evidence of a potentially nefarious plot to collude or misrepresent. Well, I believe the case of misrepresentation was made beyond a shadow of a reasonable doubt in Are You About To Get Cyprus’d in Ireland…

For those of you who actually think it’s acceptable for large, international banks to have to mortgage their entire balance sheets, or the vast amount of their securities and liquid asset holdings to essentially obtain access to what essentially is a cross-border, real time checking account (Target 2), I have this fabulous bridge to sell you in Brooklyn… Real cheap!

Let’s examine the argument that the multiple charges were entered by various large banks for the legitimate purpose of facilitating access to Target 2, and not an emergency dash for liquidity funding from the ECB.

First, as excerpted from Wikipedia, a description of how Target 2 operates in terms of collateral:

Liquidity management in TARGET2

The availability and cost of liquidity are two crucial issues for the smooth processing of payments in RTGS systems.

The cost or liquidity is the pertinent issue here. The liquidity “allegedly” sought by the Irish banks is EXTREMELY expensive for it calls for them to leverage/encumber/pledge practically their entire tradable balance sheet. Contrast this with the US Fedwire, were reserves are put up. Yes, reserves, not ALL of central bank lending-eligible securities AND the liquid payment accounts. One cannot practically classify the Irish set-up as a reserve since it is practically everything that the bank has sans plant, equipment and nigh worthless goodwill. Fedwire is the largest system of it’s type in existence, yet it requires less collateralization than it’s smaller brethren in Europe, Target 2? Either everybody in Europe knows you can’t trust European banks or Ireland was given a back door bailout through the Target 2 collateralization system. No matter which way you look at it (both are probably true), it’s not positive! Now, back to the Wikipedia write up on Target 2…

In TARGET2, liquidity can be managed very flexibly and is available at low cost since fully remunerated minimum reserves – which credit institutions are required to hold with their central bank – can be used in full for settlement purposes during the day. The averaging provisions applied to minimum reserves allow banks to be flexible in their end-of-day liquidity management. The overnight lending and deposit facilities also allow for continuous lliquidity management decisions. The Eurosystem provides intraday credit. This credit must be fully collateralised and no interest is charged. However, all Eurosystem credit must be fully collateralised, i.e. secured by other assets.

So, now that we’ve established that the Irish banks have applied for, and received credit in exchange for pledging practically their entire securities and liquid assets portfolio, it is in no way debatable that these banks a) were (and are still, currently) leveraged to the max and b) tied up all of their assets with a pledge of collateralization to (allegedly) back up participation in this payment system. Back to Wikipedia…

The range of eligible collateral is very wide.

This is to be read as the quality, saleability and marketability of much of the collateral varies greatly – with much of it being worth considerably less than the claim against which it was pledged…

Assets eligible for monetary policy purposes are also eligible for intraday credit. Under Eurosystem rules, credit can only be granted by the national central bank of the Member State where the participant is established…

Now let’s drill down into how Irish banks, in particular, access Target 2 liquidity as compared to their international brethren. On April 3rd I posted The Unique, Peculiar & Unusual Method Irish Banks Used To Say “We’re Insolvent”!!! whose excerpt I present below:

A reader posted the following in reference to Are You About To Get Cyprus’d in Ireland? When A Single Word’s Worth Billions Of Euros… As a refresher, this is the graphical arrangement of the interconnected dealings between the ECB and the Irish banks…
image002

I suspect what you are looking at Reggie is not really an issue for the bank’s capital. It looks to me like the ECB is securing itself against the risk that a bank won’t voluntarily return a mistaken or fraudulent transfer of funds via Target2. I think in order to participate in Target2, the bank has to contractually give the ECB the right to seize and sell its assets, if that’s what it takes to retrieve a mistaken or fraudulent transfer of funds.

This is what reserves are for. By definition, reserves are supposed to be a fractional amount of an entity’s holdings to secure against a loss. These Irish banks aren’t putting up fractional reserves, they’re putting up their entire business. Imagine if you went to a bank to apply for a checking account with real time clearing and a condition of you getting said account was for your to mortgage your house, all of your stocks and bonds, and any other bank accounts. Sounds a bit fishy when put that way, doesn’t it?

An amount of readily marketable assets are put up as collateral against the risk described above. If a bank has to put its entire business (after all, a bank’s business is money and securities, so these banks put up all of their money and securities) up as a reserve just to essentially participate in a payment system, then it most assuredly…

Tells you something about the level of trust among Europeans. You might want to check other Eurozone banks with US listings and see if all of them don’t have this exact same charge filed with the SEC. My guess is they all do.

Um, no they don’t. That was the basis of my claim of misrepresentation and potential fraud. See

Are You About To Get Cyprus’d in Ireland? When A Single Word’s Worth Billions Of Euros…

Dear Ireland (& AIB), Haven’t We All Learned The Problem Is Insolvency, Not Liquidity?

Oh No! Is It Possible? A 3rd Irish Bank With Hidden Charges Not Revealed In Its Annual Reports?

Ireland, You May Very Well Be Bust & I Make No Apologies For What I’m About To Show You

At first I thought it might be related to the refinancing and emergency liquidity assistance loans AIB has outstanding from the Irish central bank. Collateral is pledged for those which the ICB could sell if it decides not to roll over the funding and AIB doesn’t repay. But the reference to Target2 would make no sense if this were about collateral posted to the ICB.

That said AIB is indeed still a mess for a lot of other reasons.

Actually, AIB is a mess for this reason AND many other reasons as well. The inclusion of charges for the purposes of Target 2 is likely a sham. The Irish banks were dead broke, and without a printing press to manufacture funny munny like we do here in the states. They were fresh out of eligible collateral to pledge to the ECB for more emergency loans. Here’s evidence that the Irish charge system was not only unique, but not necessary for the purposes of using Target 2 as an excuse to access emergency funding.

As you can see, Ireland is unique among ALL countries in the EMU in that it, and only it, uses charges to secure access funding. But of course it’s just a coincidence, right?!

Okay, let’s suppose I’m full of sh1t and have made all of this up as some sort of conspiracy theory. After, it’s all just circumstantial evidence, right (albeit an awful lot of it). The charges that I presented in my various articles (see the reference list below) did say that they were for the purposes of Target 2 and we all know banks would never, ever, ever lie, right? Ha! That’s funny, even when I just type it!

Below, please find an all-encompassing charge document from the Bank of Scotland (Ireland) in favor to the Irish Central Bank. The annotations are self explanatory, and keep in mind the amount secured (practically everything) and the amount pledged (practically everything). After you finish reading through the document, let me know in the comment section below if you can determine why the charge was issued…

image026image027image028

So, here we have a comprehensive charge, all-inclusive, not referencing Target 2 in any way whatsoever, filed on the exact same date as EVERY major bank in Ireland – during the middle of the biggest banking crisis Ireland has ever had. Oh, and by the way… this charge or any reference hereto, is nowhere to be found in the company’s reporting to its regulators and/or investors – at least as far as I could determine. Hmmmm… Of course, these banks are healthy. Nothing to see here, move on and continue with your daily dose of state-sanctioned, mainstream media piped, independent thought numbing disinformation and propaganda.

Remember, extreme wealth concentrates, so you don’t have to… Coming from a “Cyprus’d” bank near you!

_{Other hard hitting pieces on the resurgent EU banking crisis}

Is The Cypriot Government Crazy Or Do They Really Fear Bankers That Much?

Mainstream Media Says Cyprus Salvaged By…

Economic Depression Is The New Success

The Canadian Government Offers “Bail-In”…

EU Bank Depositors: Your Mattress Is Starting To Look Awfully Attractive – Bank Risk, Reward & Compensation

Global Banking Crisis – How & Why YOU Will Get “Cyprus’d” As This Bank Scrambled For Capital!!!

As If On Cue, BoomBustBlog Shenanigan Research Gets Real In Ireland, Why Aren’t These Guys Knocking On My Door?

Are You About To Get Cyprus’d in Ireland? When A Single Word’s Worth Billions Of Euros…

Dear Ireland (& AIB), Haven’t We All Learned The Problem Is Insolvency, Not Liquidity?

Oh No! Is It Possible? A 3rd Irish Bank With Hidden Charges Not Revealed In Its Annual Reports?

Ireland, You May Very Well Be Bust & I Make No Apologies For What I’m About To Show You

The Next Leg Of That Counterparty Led European Bank Run Has Put On It’s Running Shoe

I Illustrate How The Irish Banking Cance…

Allegations Of Big Irish Banks Operating…

Readers Respond With Evidence That AIB (…

Zero Hedge

If I Provide Proof That The Entire Irish Banking System Is A Sham, Does It Set Up A Much Needed System Reboot? Let"s Go For It..

Saturday, April 6, 2013

Obama Wants More Green Jobs? Let"s Start with Hemp

Though Obama has frequently spoken of the need for more “green jobs,” he has failed to acknowledge the inherent environmental advantages associated with a curious plant called hemp. One of the earliest domesticated crops, hemp is incredibly versatile and can be utilized for everything from food, clothing, rope, paper and plastic to even car parts. In an era of high unemployment, hemp could provide welcome relief to the states and help to spur the transition from antiquated and polluting manufacturing jobs to the new green economy. What is more, in lieu of our warming world and climate change, the need for environmentally sustainable industries like hemp has never been greater. Given all of these benefits, why have Obama and the political establishment chosen to remain silent?

The explanation has to do with retrograde and backward beliefs which have been hindering environmental progress for a generation. A biological cousin of marijuana, hemp contains minute amounts of THC or tetrahydrocannabinol (THC), a psychoactive chemical. Even though advocates say one would have to smoke huge amounts of hemp to get high, the plant occupies a highly dubious legal status in the U.S. During the 1970s, Congress declared hemp a “Schedule I” drug under the Controlled Substances Act, ridiculously lopping the plant in the same category as heroin. Though the authorities allow farmers to petition the federal government to grow hemp, the Drug Enforcement Administration or D.E.A. has proven incredibly resistant to such licenses and for all intents and purposes the crop has remained illegal [ironically enough, however, the U.S. imports many hemp-related products from abroad].

Tide Beginning to Turn

On the other hand, tectonic political and cultural change may provide some reason for optimism. Last fall, Washington state and Colorado legalized marijuana which has in turn exerted pressure on the Obama administration. As I discuss in a recent article, surprisingly diverse social constituencies supported the ballot initiatives, which suggests that the political tides may be turning [in Latin America, too,public sentiment seems to have soured on Washington’s unpopular drug war].

In moving to legalize marijuana, Colorado also passed hemp legalization though the D.E.A. must still grant permission to farm the crop. Colorado joins a growing number of states which are moving on hemp legislation, though such measures are hardly uniform. Some states have authorized the study of industrial hemp as an industry, while others have simply asked the Feds to relax draconian drug laws. Some, however, have legalized hemp production just like Colorado.

This in turn raises the question of whether the Obama administration might actually conduct raids on local farms in an effort to crack down on the crop. Perhaps, such a scenario will never come to pass since change has even come to Capitol Hill: recently, a bipartisan group ranging from liberal Democrat to right-wing Republican reintroduced legislation which would require the federal government to respect state laws allowing for the cultivation of hemp.

Creating New Green Jobs in the American Heartland?

Could hemp help to bring back sorely needed employment in the American heartland? That is the hope in Kentucky, which had a booming hemp industry as recently as World War II. Somewhat outlandishly, Kentucky Republican Senator Mitch McConnell no less has remarked “the utilization of hemp to produce everything from clothing to paper is real, and if there is a capacity to center a new domestic industry in Kentucky that will create jobs in these difficult economic times, that sounds like a good thing to me.”

In Colorado meanwhile, hemp boosters are hoping that the once taboo crop could help the local economy. Indeed, hemp production might provide the state with new jobs and tax revenue. Colorado farmers believe that their state could lead the way in this new, innovative field and some even hope to turn their crop into edible oil. Trendy food markets in Boulder are already carrying a number of products made out of hemp ranging from soaps to lotions and even protein powders. Perhaps, Colorado farmers will one day turn out “Hemp Hearts,” a new product made out of the partially shelled seed of the plant. Boosters say Hemp Hearts, which don’t have an overly assertive taste, can be spread over cereal or yogurt.

Not to be outdone, manufacturers in Oregon hope that hemp will help to revive flagging industry. Oregon has been hard hit by the economic downturn, and hemp boosters say the crop could assist in the production of everything from bio-plastics to sustainable construction materials to bio-fuels. Some envision a scenario in which hemp farmers sell their crop to bio-fuel refineries and budding green-building entrepreneurs. Just across the border in California, meanwhile, farmers hope that hemp fiber may help to spur the growth of a budding textile industry.

From New Vehicles to Masonry to Textiles and Petrochemicals

If such claims regarding hemp’s transformative properties were not enough, advocates also envision nothing less than the end of the petrochemical industry as we know it. From shoes to sofas to cars and even planes, many of the common materials that we use today are derived from petrochemicals. Hemp on the other hand is a versatile fiber and could be employed in everything from the construction of tractor hoods to shields to cabs.

At one time, none other than Henry Ford produced a car whose frame was partially made of hemp and whose engine could be powered with hemp fuel. Some manufacturers claim that vehicles made out of hemp are lighter and as a result display greater fuel efficiency. In addition, agricultural fibers can be cheaper to produce than fiberglass. What is more, scientists are conducting research on how to derive biodegradable plastic products from hemp. Already, such research has borne fruit as auto companies introduce hemp into major manufacturing.

Perhaps most interestingly, hemp can also be made into most any building material including roofing, flooring, paint and even bricks. Hemp plaster is known for its high insulation qualities and can reduce the need for heating in winter and air conditioning in summer. Curiously, by simply adding water and lime to hemp one winds up with efficient and lightweight “hempcrete” which can help to construct houses. Experts say that hemp masonry exhibits exceptional fire resistant qualities and is easily recycled.

Advocates also believe that hemp can help to bring about a revolution in the textile industry. In the not-too-distant future, “eco-textiles” could become a popular buzzword as hemp replaces environmentally wasteful cotton production. Entrepreneurs say that hemp necessitates far less water to grow than cotton. Additionally, hemp rarely requires pesticides to grow and scientists are developing an innovative technique designed to turn tough hemp fiber into yarn. Early independent tests indicate that the process yields clothes which are durable and comparable to cotton in both softness and brightness.

Interestingly enough, by shifting to large-scale hemp production the U.S. might not only spur the growth of new industries but also help to clean up contaminated landfill. Recently, the Colorado State legislature passed a bill to study hemp’s potential to bring about so-called “phyto-remediation,” a process by which plants actually filter and clean polluted soil. If Colorado plants hemp on contaminated sites, the state would follow in the steps of Ukraine, which planted industrial hemp near Chernobyl in the late 1990s in an effort to remove harmful contaminants from the ill-fated nuclear site.

Bio-Fuels and Climate Change

As if all these potential benefits were not enough, advocates hope that hemp could also be used to create a new bio-fuel. To be sure, the planet needs to shift away from fossil fuels which exacerbate climate change, though in practice some bio-fuels fail to measure up. As I argue in my last book, No Rain in the Amazon: How South America’s Climate Change Affects the Entire Planet, corn-based ethanol based in the American Midwest does not put much of a dent in our global warming problem. Though Brazil’s program of sugar cane ethanol is somewhat better than corn from an environmental standpoint, the crop still eats up land and leads to deforestation in sensitive bio-diverse areas such as the cerrado. Moreover, sugar cane requires fertilizer and deprives poor peasant farmers of land which could otherwise be used to grow food.

So, how does hemp stack up when compared to corn or sugar cane? Writing in Salon, Steven Wishnia remarks that hemp oil for bio-fuel “is unlikely to be practical.” At 50 gallons per acre, he explains, “even if every acre of U.S. cropland were used for hemp, it would supply current U.S. demand for oil for less than three weeks.” Nevertheless, hemp biomass can be converted into many diverse fuels such as methane, methanol and gasoline. Moreover, planting hemp arguably represents a more efficient use of land and resources than corn or sugarcane. That is so because hemp can be used for fuel but also for food and its seeds contain roughly four times the cellulose biomass potential of corn. Best of all, hemp grows very fast and leaves the soil in good shape.

In addition to bio-fuel, could hemp also lead to other benefits — like helping restore the earth’s climate equilibrium? The short answer seems to be, yes. As hemp grows, it “sequesters” or captures carbon dioxide from the atmosphere. Hemp is able to sequester such large amounts of carbon because it grows very tall — between 9 and 12 feet to be exact — within a very short span of time. Furthermore, when hemp is manufactured into masonry this acts as a carbon sink: the carbon is literally locked into the building material.

A Silver Bullet?

With so many benefits, hemp advocates believe that the plant may represent a silver bullet when it comes to solving the earth’s many environmental problems. Take for example widespread deforestation which has exacerbated climate change. Though deforestation is linked to many diverse and complex causes, the timber industry has no doubt played a nefarious role. Hemp and marijuana boosters — which often overlap — claim that hemp might offer a way out of our deforestation dilemma. Hemp has a higher cellulose level than wood, advocates argue, and therefore the plant could be used for paper to avoid cutting down trees.

The Campaign to Regulate Marijuana Like Alcohol argues that hemp paper manufacturing may reduce wastewater contamination and the plant’s low lignin content reduces the need for acids utilized in the process of pulping. Hemp can be used for every quality of paper, though it would most likely be mixed with recycled paper. Moreover, advocates say that high quality hemp paper can be recycled more times than wood-based paper. “Hemp produces more pulp per acre than timber on a sustainable basis,” the group states. Not everyone, however, agrees with such rosy prognostications. According to the Instituto Superior Técnico in Portugal, hemp is nowhere near as environmentally-friendly as eucalyptus and researchers say that hemp is an “annual” plant that needs to be grown from scratch year in and year out.

Whatever the case, hemp’s overall environmental potential should not be underestimated. In an era of ever worsening global warming and job scarcity, this unlikely plant may represent an ecological and social boon to wider society. If the Obama administration is serious about job creation and the next wave of green employment, it would do well to investigate hemp more seriously. To be sure, the humble crop still carries a social stigma, though such outmoded attitudes seem to be changing. Indeed, if recent political and cultural change associated with marijuana legalization is any indication, hemp production may be coming to America sooner rather than later.

Fri, 04/05/2013 – 13:10

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Obama Wants More Green Jobs? Let"s Start with Hemp

Tide Beginning to Turn

Creating New Green Jobs in the American Heartland?

From New Vehicles to Masonry to Textiles and Petrochemicals

Bio-Fuels and Climate Change

A Silver Bullet?

Fri, 04/05/2013 – 13:10

AlterNet.org Main RSS Feed

Obama Wants More Green Jobs? Let"s Start with Hemp

Friday, March 22, 2013

Let"s Get Serious About Federal Lesbian Studies

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Skeet Ulrich denies claims he had been shot by President but considers changing his name to ‘Traps’

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State Dept to send 100,000 American college students to China as security for US debt obligations

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President issues executive orders banning cliffs, ceilings, obstructions, statistics, and other notions that prevent us from moving forwards and upward

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Obama attends church service, worships self

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Historical revisionists: “Hey, you never know”

Vice President Biden: criticizing Egypt is un-pharaoh

Israelis to Egyptian rioters: “don’t damage the pyramids, we will not rebuild”

Lake Superior renamed Lake Inferior in spirit of tolerance and inclusiveness

Al Gore: It’s a shame that a family can be torn apart by something as simple as a pack of polar bears

Michael Moore: As long as there is anyone with money to shake down, this country is not broke

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Obama calls new taxes ‘spending reductions in tax code.’ Elsewhere rapists tout ‘consent reductions in sexual intercourse’

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Obama regrets the US government didn’t provide his mother with free contraceptives when she was in college

Fluke to Congress: drill, baby, drill!

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Hamas: Israeli air defense unfair to 99% of our missiles, “only 1% allowed to reach Israel”

Democrat strategist: without government supervision, women would have never evolved into humans