Gangrene Thursday- Greece Passes Austerity Vote, Fails as the People Vote No to Austerity and Riot; Chaos Erupts in Greece; UK Protests Begin, May Turn Ugly; Fed to Extend Currency Swaps to ECB, Fails; IMF Warns U.S. on Debt Ceiling, Fails; QE2 Ends, QE2.5 Begins; SPR Release, Fails; California Votes to Tax Internet Sales; Initial Claims Show Unemployment Uglier Than Before; Fire in Sight at Los Alamos; Radiation Showing Up in U.S. Food; Arnie Gundersen Interview Wows; Much More

Updates
Update 1: In case you were wondering, "98.6% of time, air contamination around Fukushima plant is not measured — TEPCO says it lacks qualified personnel to 'change the filters'." The other 1.4% of the time, the air is being bottled and shipped to France as healthy radiation.

Main Article 
As nearly everyone in the financial world expected, despite all the theatrics and drama, Greece passed the vote for status quo bankster bailout austerity by a margin of 4 votes. What exactly does this "austerity" mean for the people? In short, there will be sharp tax increases, coupled along with cuts to benefits, pensions and many gov't job cuts.

Has Greece been living outside of its means for a long time? Certainly, and it has afforded them a very comfortable lifestyle that makes many other developed nations retirees look like indentured servants. However, the problem is that once the people are promised these luxuries with the full expectation that they will continue forever, they cannot be simply removed and expect the people to make drastic changes. Thus, the people of Greece are outraged. Some have been driven to the point of suicide as suicide rates have increased 40% since this financial crisis began. Other are taking to the streets, causing scenes of pure chaos.

Now, the people of England are starting to realize that they will also be enslaved by the banksters if they  remain "benign." These protest could turn ugly in an instant so keep an eye on the UK.

The chain of events is occurring exactly as we expected - the vote passes, but the people riot and protest, shutting the entire nation down. In turn, "the vote" will have accomplished nothing as their overly optimistic "growth targets" will never be met as the economy sinks deeper and deeper. Greece is well beyond the point of no return. The same can be said of Portugal and Ireland. Spain however, just teeters on the point of no return but seems to be tipping ever closer to other side, whereby nothing can prevent the collapse of Spain's economy. Contagion is not a fad.

In a clear signal of how dire the situation is in Europe, the Fed is now extending the currency swap lines with the ECB indefinitely for an undisclosed time period. This "special measure" was to be used for a very short time and was set to expire August 1st of this year. Now, it's clear that the situation has spiraled out of control and the U.S. taxpayer is on the hook for the PIIGS.

You know the global economy is a giant scam when one insolvent nation is bailing out another insolvent nation. Now, the IMF is warning the U.S. faces a shock if the debt ceiling is not raised. Paging Dr. Deficit. Paging Dr. Deficit. Please ready the inkjets in printing room 5.

Which reminds us - the window dressing lipstick on the pig QE2 is ending today. Really. And QE2 Lite and QE3 will begin shortly via other methods. Watch for them in 3... 2... 1...

And like that, stage one of QE Lite is already here in the form of SPR release which, as we reported and expected, did absolutely nothing to quell the scorching price of oil. A quick glance at oil without rose colored glasses shows oil is up to $95.80. In other words, this political window dressing move did nothing lasting and will have the complete opposite effect.

Speaking of doing something that is not lasting, Quantitative Easing, which as we just said "ends" today (only to start up in another name), increased the Fed's balance sheet to $2.4 Trillion, making the Fed the largest holder of toilet paper U.S. bonds.

In the U.S., the insolvent states are looking for every cent they can find. In California, they are passing a bill that will tax all internet sales. Expect to see this in a state near you.

Which brings us to Wall Street.

It is always amusing to see how Wall Street spins horrific economic news no matter what. Take for example today's Initial Claims data which clearly shows unemployment is accelerating and that there is no such thing as a jobless recovery. A quick glance at the 4 most visited financial websites shows this headline was quickly buried in a mountain of other smoke screen non-sequitur "news." Did we mention that the previous week's unemployment data was "revised" - revised worse than before, as is now the practice.

However, there is a very real reason for all of this. Rule number one in order for a "Wall Street reporter" to be successful and survive the jungle is to make certain the consensus of the article is always positive, even if right below the surface exists a closet full of junk. "Quick! Hide the Initial Claims data! Cover it up with big stories on the always bullish Chicago PMI data! And make it snappy."

Think of it this way. In order for a giant casino to be profitable, the operators of the casino must make the gamblers feel that they have a chance. If they felt the game was overly rigged and not in their favor, they would never return. Thus, Wall Street must keep this facade of "tomorrow will be better" or else this scam game is over faster than a Goldman Sachs High Frequency Algorithm can front run an order. That is why no matter how horrific the real economic data is, "tomorrow will always be better." The HFT algos promise.

In other radioactive news, the fires ravaging Los Alamos are now in sight of the nuclear facility. But don't worry - officials claim everything is under control. Pay no attention the the Fire Chief's comments. Or the radiation showing up in food in the U.S. Remember - that is the "healthy" radiation.

In all seriousness, anyone concerned with the ongoing global crisis called Fukushima should set aside one hour to listen to this full interview with Arnie Gundersen. If the majority of people in North America knew what was really going on, the scenes in Greece would look like playtime. Wealth without health, is what?

A Note From The Editor

There will be no scheduled article for Wednesday, June 29th. We will return on Thursday, June 30th as normal.

Thank you,
The Editors

Countdown Tuesday- Momentous Vote To Soon Pass, Then Fail at Accomplishing Anything; Riots Erupt as Tensions Rise, General Strike in Effect; Bank of England Prepares for Greek Default; PayPal Announces it Will Close U.S. Money Market Fund; Now Four Nuclear Events in the U.S.; Reactor 2 Cooling System Pumps Fail in NJ, Hot Shutdown; Human Chain Used to Fuel Generators in Ft. Calhoun; Surprise! Consumer Confidence Plummets to 7 Month Low; Devastating Fungus Impacting Wheat Across MENA; Inflation Says Hello; Much More

Updates
Update 1: Japan has just "discovered" 15 tons of radioactive water have leaked into the ground.

Update 2: Remember the SPR oil release that was somehow magically going to bring the price of oil down to normal levels? Check oil spot. Up almost 2.5% to $92.66pb. Can you say "fail" and on the tax payer's dime?

Main Article
With the circus in Fukushima just heating up for the big event, let's not forget the other freakshow sideshow events that have just turned the neon lights on.

In Greece, the countdown to the momentous vote, which will certainly pass, has caused the people to revolt. Those who can see the handwriting on the wall know there are only two outcomes to this event - and both of them end very badly for Europe.

When the vote passes, Greece will be sold off piece by piece to corrupt banksters and other nations (read: China) while severe austerity measures are implemented. The people will protest and riots will erupt across the nation, effectively shutting down the economy. In turn, those overly optimistic GDP "growth" figures the gov't is predicting for 2013 and beyond will never be attained. Thus, this entire show, is simply more radioactive smoke in a mirror filled room.

The other outcome which is highly unlikely, is one whereby if the vote did not pass for some reason, the banksters would moan and groan about bond haircuts, but Greece would leave the EU and return to the Drachma. The Drachma would be set at a value roughly half the current value of the Euro which would give Greece a more competitive currency - one that could compete against other nations. Of course, after analyzing what Greece needed all along, one can see the Euro monetary union was never meant to be. How a group of academics dreamed up this plan without considering the most basic, fundamental factors is beyond us. Then again, being that it was poison Ivy League academics who concocted this (Dis)Union, explains it all. Ask yourselves, can entirely different nations, with entirely different work ethics, with entirely different social/psychological structures, in entirely different climatic regions really work in union? The answer is obvious.

The BBC is reporting that the Bank of England is planning for a contingency plan in the given event of a Greek default. Certainly this is prudent of them in light of the obvious. Certainly, it would be prudent for all individuals to have in place, a full contingency plan for the "probably inevitable" possibility. Remember, shiny metal is not only used for jewelry.

In other radioactive news, the U.S. money market funds are looking like 2008 all over again a scary place, as PayPal has announced that it will close its U.S. money market funds. No doubt, contagion is on their minds. Call this, their contingency plan. Next.

Does it seem more than coincidence that the U.S. currently has 4 nuclear facilities in an emergency mode? Not only is the situation at Ft. Calhoun looking like Fukushima 2.0, but we have the Cooper plant under shutdown as the river rises beyond flood stage, and the fires raging at the Los Alamos Nuclear Laboratory ( which stores the world's largest supply of nuclear weapons) are also now officially "out of control" (but somehow, nuclear officials claim everything is ok and the fires pose little threat - from yesterday's no threat). Did we mention the fires have spread to the facility property? Read on.

That's three. The fourth? We get news that the New Jersey Salem reactor 2 has had failure of the cooling pump, and has been forced into "hot shutdown;" not to be confused with cold shutdown. But have no fear or worries. Everything is ok. All four "unusual events" are ok. What's your contingency plan in the case of nuclear meltdowns across the U.S.?

In Ft. Calhoun, workers have been brought in to refill the emergency backup generators by hand. That's correct - they now have a human chain of workers refilling the emergency generators to keep the fuel rods from overheating. Let's hope that union doesn't go on strike once the budget cuts are implemented.

In other news, U.S. consumer confidence has "unexpectedly" plummeted to a 7 month low. Obviously this is a direct result of the "green shoots" of an economic recovery. Remember, there is no inflation. And if there was, Dr. Deficit could fix everything in 15 minutes. Of course, he can't fix "unexpected" bullish global disasters like earthquakes, nuclear meltdowns, food shortages and plagues.

Speaking of plagues, a devastating wheat fungus impacting 11 countries in Africa and the Middle East
will take years of work to save the world's wheat. Somehow, we don't think this is deflationary, despite being bullish for the economy, like all other major disasters. Have you seen the price of cereal lately? Better still, have you seen the price of coffee lately? Corn? Dairy? Cotton? Anything that you buy on a regular basis and depend on for survival?

Bah humbug! Inflation? What inflation? 

Finally, as the day progresses, keep an eye on European banks (especially German, Italian and French banks) which have absurd levels of exposure to Greek debt, which in turn have exposure to Too Big To Fail, To Corrupt To Fix, banks in the U.S. in one big death spiral pig with lipstick. Don't worry though - Justin Bieber said the economy is going to pick up in the second half of 2011. 

Monday's Madness- Aqua-dam at Ft. Calhoun Collapses, Floods Entire Site as Situation Follows Footsteps of Fukushima; Los Alamos Nuclear Labs Has Been Evacuated; Residents 30-40 Kilometers From Fukushima Have More Than 3 mSv of Radiation in Urine, as Situation Spirals Out of Control; Dallas Fed Implodes, Prints -17.5; George Soros Jumps Ship, Says What We Have Been Warning; Greece On Edge, General Strike Scheduled for Tomorrow as Tensions Rise; Much More

Updates
Update 1: Don't look now, but the turbine room at Ft. Calhoun is now flooded. Officials claim everything is ok and this was expected. Sounds eerily reminiscent of another little "event" that started to unravel in Japan in mid-March. Everything there was also ok.

Main Article
"... and you thought you were safe..." is how we will begin today's article. Like the traffic signal at a dangerous intersection that is installed only after many close calls and a deadly accident, we see the consequences of ignoring danger after many warnings with the two nuclear power plants at Ft. Calhoun and Cooper. Yesterday, the protective Aqua-dam berm surrounding the Ft. Calhoun burst and collapsed, sending thousands of tons of flood waters into the buildings at the plant. The plant is now running on emergency generators as workers try to restore power to the main electrical transformers. Needless to say, exactly as the events occurred in Japan, officials assured the public that no residents are in any danger at all. Everything is ok. One week ago, before this Aqua-dam berm collapsed, the NRC said there was no need of the fuel casks to be protected. We hope they don't have to eat their filthy lying words. We have a bad feeling about this - just as we did with Fukushima. Keep your eyes open as this situation intensifies (and more officials reassure that everything is ok, then you know to get out of dodge).

In New Mexico, the Los Alamos Nuclear Laboratory has been evacuated ahead of a raging wildfire that has come uncomfortably close to the facility. Don't worry, however. Officials are insisting everything is ok.

We have been reporting since day 2.5 that the situation in Fukushima is far, far worse than officially reported. It turns out, we were right. Fukushima residents' urine is now radioactive. More than 3 mSv of radiation has been detected in the urine of residents living 30-40 km from the stricken plant. Is it not alarming that 30-40km is within the "safe zone" and Japan is just now doing testing? Don't worry, everything is ok. Radioactive tea leaves are healthy, deformed rabbits are more tasty and nutritious, and pregnant woman who are happy and not negative about this catastrophe are resistant to the "unhealthy" kind of radiation - not be confused with the healthy kind.

 For those of you keeping tabs, in three months time, those residents have accumulated 35% of the total amount of radiation nuclear workers can be exposed to in an entire year. Of course, by extrapolating this data, this indicates by early November, regular citizens (including children and pregnant women) living inside the gov't mandated "safe zone" will be exposed to the maximum amount of radiation nuclear workers are allowed by law - until that law is changed of course, because radiation is suddenly healthy for carbon based life forms.

Now, if we're all still alive in a few months after being irradiated from "healthy" radiation, we'll still have to be concerned with the worsening global economy. The Dallas Fed Manufacturing index plummeted to negative 17.5 from negative 7.4 on comical expectations of negative 3.2. No further comments are necessary. As every excuse in the book (including, the dog ate the positive data on page 2) has already been used by MSM to explain all of the horrific economic data and somehow spin it into positive news, they may soon be forced to admit the truth about this so-called economic recovery. Even Geroge Soros is jumping ship and saying 1) it is "probably inevitable" (read: a given) that "a country" (read: Greece) will leave the Euro and 2) "we are on the edge of financial collapse." Why would he say that if we're in recovery mode since June of 2009? Remember, profits on Wall Street are not indicative of economic activity - profits on Wall Street are indicative of fatter bankster bonuses and the level of greed.

This week is the big week for Greece as tensions rise and the situation spirals out of control. Starting tomorrow, a General Strike will shut the whole country down. Despite the theatrics, we already know which way the politicians will vote - with the banksters. That being said, the people will not accept that and further strikes and further protests will result. Like all death spirals, the outcome is always bad.

Fantasy Zone Fryday- Dr. Deficit Admits to Defeat, Fiat Printing Plan Has Failed; Five Simple Steps to Getting Things Turned Around; DOW Priced in Gold Shows an 11 Year Bear Market, No Bull Here; Inflation Re-examined as Food Prices Skyrocket; Weather Plays Huge Part in Economy; Greece In Upset, More Protests Coming; Girl in China Sells Her Virginity For iPhone4; Much More

Updates
Update 1: Super bullish news for "the markets" - Ft. Calhoun nuke plant now 3 feet from 500-year flood levels. We're 100% Bernanke certain that they've got everything under control.

Update 2: We told you so - Residents 40km from Fukushima are already measured with 3 mSv of radiation. It's only going to get worse from here.

Update 3: Why on earth would they have a radiation release map for the Ft. Calhoun all ready to go? Does someone have a crystal ball? This is bizarre.

Main Article
Two days ago, Dr. Deficit finally admitted to defeat not understanding why his Harvard endorsed fiat printing plan was not working. "We don't have a precise read on why this slower pace of growth is persisting," he said. In Fed speak, that means, "we're clueless why there is no recovery." More interesting was his comment that this "soft patch" was not as "transitory" as they first thought. Act surprised, if you can.

As we have explained in great detail, the bearer of a Harvard PhD usually does not have the capacity to think on his own. There is an inverse correlation to the higher degree one possesses to their ability to use common sense. Those who have been indoctrinated by poison Ivy League academia, are all cut from the same cookie cutter mold - which can be especially problematic in the real world, as life and all that it encompasses is dynamic and changing. The book, "Print Your Way To Wealth," which happens to be required reading for all poison Ivy League students, is obviously outmoded. Worse, we think Dr. Deficit was not only a prodigy of the original authors, he became a co-author of the updated 2008 edition of the book - just in time for the new round of grads with PhD's to come online.

Therefore, we highly recommend that all those who read that book please clear their minds and start fresh with some very basic information that is obviously no longer taught in poison Ivy League schools, but obviously is still appreciated in Europe. We present to you a simple 5 step process that would right the wrongs of the bad good Doctor.

1) During the worst economic depression recession the world has ever seen, the effective tax rate of the top 10% of the wealthiest was only 17% tax. Cutting taxes for the rich, which is somehow supposed to stimulate the economy as we were taught in finishing school, is never a good move when the nation is deep in debt and needs revenues more than ever. One thing about the wealthy is they can never have enough money. Which means that money goes nowhere but their pockets.

2) Jobs in this country have vanished (as can been seen by the 23% real unemployment rate). Nearly all manufacturing is done offshore. Nearly all tech support, computer programming and IT has been also exported offshore. We are left with hamburger flippers and Home Depot clerks. Servicing one another does not make for a strong economy. Bring the manufacturing jobs back. Penalize all corporations that manufacture  offshore. Increase their tax rates and especially increase taxes on executive stock options to 80%.

3)  We need clean, renewable and affordable energy and a strong manufacturing base that supports that. All new clean energy projects should be engineered and built here in the U.S. with skilled American workers. Find new ways to make coal cleaner while we make the transition over to renewable energy, and in order to keep the price of electricity low.

4) Invest in education. Budget cuts to education is the worst sacrifice anyone can make. Education is key to the success and future of a strong economy. Education empowers and benefits all. College these days is simply, not worth the expense. Vocational schools today provide better skills that will be needed to build a new economy.

5) ZIRP interest rates at zero hurt savers, and encourages reckless spending and debt. And debt is never good for the people - only the banksters benefit from more debt and that is why they love you to have more and more.

Of course, these are just a few of the very basic, fundamental steps that should have been implemented long ago. Other steps include changing the accounting rules for big corporations that allow them to offshore their profits, and ending once and for all "Too Big To Fail." Once anything becomes "Too Big To Fail," it's already too dangerous. Further, "creative accounting" should never be tolerated.

The point here is, we never hear anything from Dr. Deficit and Co. about any such measures. Instead all we hear is how they are keeping inflation low (which is not even close to low - try 11% or more) and will implement more POMO (aka, more money printing) and how good of a job they are doing, and that everything will get better tomorrow.

Which reminds us of the "perpetual bonds" that Greece issued a few months ago. They are called "perpetual bonds" because they usually mature in 50-100 years (a lot can happen in 50-100 years, making them worthless) and usually, the current payments are made with the issuance of yet more bonds, in an endless cycle. Sort of like the handouts bailouts Greece is getting.

Speaking of handouts money printing, let's be clear here - just because the money is not actually printed on physical paper does not mean that they are not "printing" as we have highlighted many times here. "Printing" comes in many forms. Their favorite method is digital dollars in the form of zeros; soon, zeros will be the only thing they have.

We can already see the real results of fiat printing when looking at the DOW index priced in gold. In all reality, the bull... bullish market you think you have experienced in your stock portfolio is merely an illusion as the DOW priced in gold has been in a bear market for the past 11 years. The jokes on you.

With all of the drama being pumped out of the MSM about Weiner's weiner or Arnold's love child or Justin Bieber's new cologne, most sheeple forgot to realize or take notice that inflation is all around us. Coffee has jumped 40% in the past year alone. Sugar is up 70%. And meats? Forgetaboutit! Some who see the real non-manipulated data are saying the real plague is inflation. Others, like Dr. Deficit are still saying, "inflation? what inflation..." and cut scene.

And here's a piece of news that should wake up those with a PhD in BS - weather plays a huge part in the economy of the U.S. (Well, well, well. Where have we said that before?) Which is why we here at Fiat's Fire pay attention to what the earth is doing. If the earth's weather was stable everyday and presented no major weather related threats, the global economy would still be a disaster. Just look at the comedy show in Greece where the weather is stable. Now, insert the most unpredictable and powerful variable called "weather," and a whole new dimension in global financial forecasting emerges. And to the talking heads on CNBS that said Fukushima was a "bullish event," we suggest you take an early retirement.

Finally, we report the continued moral breakdown of society (a key symptom and consequence of the gangrened world in which we live) and present to you this story from China where a young girl is offering her virginity to anyone who will buy her an iPhone4. We offer her the same advice as we did to the boy in China who sold his kidney for an iPad2 - wake up from your consumerism induced coma before it is too late. Contrary to what big business wants you to believe, happiness in life does not result from the things one possesses.

Fire Sale Thursday- Insolvent USPS Halts Funding of Pensions as Workers Report Chaos; AIB Has Fire Sale, Sells $310 Million Investment for $140k; TEPCO Stock Price More Important to TEPCO Than Life, Sound Familiar?; Ft. Calhoun NPP Underwater, Floods Grow; New Models Show 80% of North America Covered in Nuclear Fukushima Dust; SAAB Can't Pay Workers, Insolvent; IEA Releases Oil Reserves, Oil Plummets; Debt Ceiling Talks Break Down; Much More

Updates
Update 1: Reactor 4 SFP only 8 degrees from boiling. Are they preparing to cook rice?

Update 2: Get ready Iowans. Cooper NPP situation has worsened.

Main Article
fire sale 
–noun
1.a special sale of merchandise actually or supposedly damagedby fire.
2.a sale, as of assets, at reduced prices, in order to raise money quickly.

We begin today with the definition of "fire sale" because as the global economies implode, we will certainly see many more "fire sales." A fire sale is usually a desperate attempt to keep the lights on for one more day, as we have seen in Greece. As we have been reporting since the start of this site, the USPS is insolvent. Although it has been denying this fact, they are now coming to the realization of this fact as we reported yesterday in Update 1. Already, the backlash is becoming evident as workers are reporting "sheer chaos" on the news that the funding of their pension has been halted. The USPS says the move will save $800 million this year, but as with every attempt to save a penny at any insolvent organization, all it does is buy another day. See: Greece. See: Allied Irish Banks.

As with all insolvent organizations, fire sales are always a major warning sign that their end is imminent. Case in point: AIB. We learn that Allied Irish Bank, the gov't owned and insolvent bank of Ireland that we reported last week that defaulted on their bond payments, today has sold their $310 million investment in a Bulgarian bank for a mere $140k. Desperate times call for desperate measures and nothing is more desperate than a fire sale.

Speaking of radioactive fire sales, TEPCO stock which has been burnt to a crisp and is now worth less than a roll or two of toilet paper, has announced that necessary work to stop the radiation from seeping into the ground water "will cost too much and hurt their stock." Pay no attention to your thyroid cancer - at least you have TEPCO stock.

If Japan's global catastrophe was super bullish for the global economy, here is some news that should send the markets into the stratosphere. Ft. Calhoun's NPP is underwater and the situation is spiraling out of control. Authorities say everything is ok. No fly zone has been implemented over the area since the fire first broke out. The flooding in the midwest is growing. The Cooper NPP is now at risk of losing control. Authorities say everything is ok. Authorities say everything is ok. Authorities say everything is ok. So, everything must be ok. Right? Remember, Fukushima is not as bad as Chernobyl, authorities said. In fact, it's not even as bad as Three Mile Island. From Reuters:

"The Japanese Nuclear Safety Agency on Saturday rated the nuclear accident at Tokyo Electric Power Co's (TEPCO) Fukushima Daiichi plant inJapan at a four on a scale of one to seven, which is not quite as bad as the Three Mile Island accident in the United States in 1979, which was rated a five."

Who has been warning that Fukushima is exponentially greater since day 2? Our readers know the answer.

Now we get this, almost 4 months later. From WeatherTech: "Models Show That Radioactive Dust From Fukushima Plant Covered 80% of N. America." Must watch. And we can only hope you have been connecting the dots from day one. This has indeed become an "ELE."

In case you wanted to know why the coverage at the two nuclear power plants in the U.S. are getting no attention, notice this discovery from HawaiiNewsDaily:

"So who made the dry storage cask containers at Fort Calhoun? That would be Transnuclear, Inc.And who owns Transnuclear? Areva.And what else is Aveva doing?Selling water purification tanks and systems to TEPCO for Fukushima."

Any questions?

In other radioactive bullish for the global economy news, SAAB today announced it doesn't have enough money to pay its workers. One step forward, and five steps back. Add SAAB to the list of insolvent organizations and expect a huge fire sale.

Huge non-event news out today, that the IEA will release oil from the Strategic Oil Reserves. Oil prices tank, along with "the markets," as only Hedge Funds and HFT algos are left to cannibalize their flesh. Whoops! Dr. Deficit was last seen fleeing the country and headed to his underground bunker. 

The other "big news" for the day is from ZeroHedge, which is reporting the debt ceiling talks have just gone in the toilet. Of course, this is nothing more than theatrics meant to induce fear, which will be fixed by a Kenyan Knight in shining armor, riding in on a White Horse of the Apocalypse and who happens to be running for re-election. We always liked fairy tales - especially those with radioactive happy endings.

Wacko Wednesday- Fresh Bandage Applied to Greece as Vote of Confidence Passed; People Enraged; Egypt Declines IMF Loan, Says It Does Not Fit National Interest; Greeks Buy Record Amounts of Gold, Silver, Withdraw Money From Banks; Every Chicago Household Owes $62,525 In Gov't Debt; Dr. Kaku Exposes the Truth About Fukushima, Worse Than Chernobyl; NPP Workers Too Sick To Take Tests, Exposed to High Radiation; Much More

Updates
Update 1: Slow burn, as USPS halts retirement fund payments. One more step down into the mire.


Main Article
Like a fresh bandage applied to a festering, gangrene infected wound, yesterday's Vote of Confidence in Greece bought them nothing more than another day. As with all recent events, the actions taken by TPTB have done nothing to correct the root cause of the problem, but rather postpone the inevitable - and like a limb infected with gangrene, the only course of action is amputation. For another day, of course.

Although the Vote of Confidence passed as we expected, the real obstacle will be the people, whom we see not sitting down so quietly to the new and exponentially harsher austerity measures. As Occupied London said after yesterday's historic vote, "people are more and more enraged." And rightfully so.

Of course, the gov't of Greece could vote with the people and go the Icelandic way - or the Egyptian way, as they decline an IMF World Bankster "loan" because it does not fit the best interest of the people. Bailing out banksters is never compatible with any nations interests.

Little wonder then, with the Greek people losing all faith in their gov't and the monetary system (in preparation of the return to the Drachma), the Greek people are buying record amounts of gold and silver; certainly, a very prudent decision for all citizens of the world, when runaway inflation is one flash crash or bank run away. In the U.S., "quantitative easing" might be winding down for now, but that does not mean stealth money injections won't continue in some form or another after July 15th. As the horrific economic news continues to roll out in gigantic plumes like the radioactive smoke spewing out of reactors 1, 2, 3 and 4 in Japan, we can be certain that no matter how devastating the consequences of continued "quantitative easing" are, they will always choose that option. When you paint yourself in a corner (see article here), you have no other choice but to throw in the towel.

In the U.S., the situation is just as bad if not worse than Greece. Yesterday, we reported that by the year 2014, every household in the Euro Zone will owe $2,100 towards Greece. In Chicago, every household now owes a $63,525 to cover local government debt, according to a new report by the Cook Country Treasury. In some areas across the U.S., that level is even higher. Can you see the debt death spiral? This is occurring globally and escalating rapidly as TPTB desperately try to keep the house of cards together.

Speaking of keeping the house of cards together, the news out of Fukushima is worrisome. We begin with an excellent must watch interview with Dr. Michio Kaku, who exposed the lies on CNN when he said:

In the last two weeks, everything we knew about that accident has been turned upside down. We were told three partial melt downs, don’t worry about it. Now we know it was 100 percent core melt in all three reactors. Radiation minimal that was released. Now we know it was comparable to radiation at Chernobyl. 

We knew it was much more severe than they were saying, because radiation was coming out left and right. So in other words, they lied to us. In New York City, you can actually see it in the milk. You can actually see it has iodine, 131, actually spiked a little bit in our milk in New York City, but it is very small. 

Just even hearing that, though, even hearing that you can detect it, that there’s a catastrophe, worst industrial catastrophe in history, we can see it in milk in New York, that’s frightening.

Perhaps more frightening is the fact that 30 workers are unaccounted for and 56 workers could not undergo radiation tests due to illness. In other words, the upwardly revised "safe" limits of radiation exposure are not so safe after all. As this write up in ex-SKF shows, the cover ups are beyond disgusting - they are immoral and will result in the deaths of tens of thousands of people. Another must read.

It's interesting to note, TEPCO recently sent in some new workers to inspect reactor 2. In the 10 minutes they spent there measuring radiation, they each had received between 2.16 and 5.52 millisieverts of radiation. We're almost 4 months into this catastrophe and they have yet to finish taking readings due to the high levels of radiation we see. Until they can entomb this whole complex, radiation will continue to poison the earth - the oceans, the air, the food chains and especially, you and I.

In the big picture, it makes having the latest iPad, inconsequential. 

Tricky Tuesday- The Day of the Vote Arrives, as Reshuffled Gov't Seeks Vote of Confidence; Yields in Greece, Spain Rise; On the Ground Report From Greece Says, "We Are Doomed"; Fitch Says Greece & U.S. Risk Default; Coca-Cola Says Goldman Sachs is Manipulating Commodity Prices, Has Proof; UK Debt to GDP Now a Staggering 151.4% as Gov't Borrows Another 17.4 Billion Pounds; Missouri River Flood Closes 100 Miles of Bridges; Renowned Doctor Says Millions to Die From Fukushima Fallout in Japan and U.S; Disaster Does Not Begin to Describe Flood in Mid-West; Fukushima Continues to Spiral Out of Control, as Situation Escalates; More Radioactive Hot Spots Detected in Tokyo; 6.46 microsierverts/hour Detected in Outskirts of Tokyo; Much More

Judgement Day has arrived for Greece, as the government votes on a historic issue about to set the nation into chaos either way the vote goes. On the one hand, a Vote of Confidence will allow Greece to continue receiving handouts bailouts (which will never be paid back) indefinitely but will send the populous into more riots and protests which could bring the nation to its knees. On the other hand, a Vote of No Confidence means Greece chooses to go the Icelandic way, accept no more bailouts, and get set free from the heavy bonds (no pun intended) of the EU - which will in turn set precedent for Ireland and Portugal to follow step in step with Greece. The moral hazard the EU created back in May of 2010 is coming full circle. As we said at the outset, either way the vote goes, the consequences will be devastating.


A reporter on the ground for Hawaii News Daily recently came to the conclusion about Greece, "we are doomed." Notice how the reporters tone changes in a matter of weeks from concern to hopelessness. Then again, from 4000+ miles away on the east coast of the U.S., we also determined that Greece was doomed simply by using basic math months ago. Now it's confirmed. It's also confirmed that by 2014, each and every EZ household will guarantee $2,100 of Greek debt. We ask again, what is the purpose of the EU?


Needless to say, the people don't want another bailout as tensions rise across Greece. The decision today could indeed change the course of history and set the nation into a different kind of spiral - the downward spiral of a collapsing society. That's a real reason to rally the markets - so is ratings agency Fitch saying Greece and the U.S. both face default risks. Ironically, two years ago in the financial blogosphere world, when "rogue" citizens made "outrageous" claims that the U.S. could see a debt downgrade or even face a possible default, overpaid talking heads on CNBS came out of the woodwork like cockroaches to discredit the blogging world. Boy, how the tables have turned.


Now, execs at Coca-Cola are claiming what "rogue" bloggers knew all along - Goldman Sachs is manipulating commodity prices. Well, duh! #winning! Of course they are and have been for a long time, but so have all of the other Too Big To Fail taxpayer funded banks which have been doing this to oil since the late 90's. Why, even "The Morgue" quietly admits to "renting out" a supertanker to store oil off the coast for investment purposes.


Speaking of investment purposes, the UK's debt to GDP just increased to 151.4% last month as it borrowed even more fiat money to keep the lights on. Of course, this would have made big news just a few years ago. Now, it's back page news. We're sure this debt to GDP ratio is completely sustainable and will be spun as very bullish for "the markets."


Speaking of completely sustainable, the completely discredited National Association of Realtors (NAR) is calling another housing bottom - for the 363rd time since 2005 - which also happens to be the same number of times they have used the phrase "there is no better time than right now, to buy a home," in the past 5 years. Three hundred sixty three also happens to be the number of insider sales of publicly listed home wreckers builders, in the past month alone. Are you paying attention?


Last week, The New York Times ran an article stating, at the current rate it would take 62 years to complete the backlog of housing on the market in New York State. It should be noted that this is inaccurate and misleading since the methodology used is inaccurate. Using the historical average versus the current data set, it would take 12+ years to run through the backlog - a number still very staggering to contemplate and devastating to home prices. Housing recovery? Green shoots? Jobless recovery? Please, the comedy show is over...
and the circus is just getting started. To begin, we will list a few bullish events that have occurred in the past 24 hours alone. See if you can determine the radioactive link that connects them. Then, check "the markets."


1) Tokyo area parents' radiation worries grow with discovery of local 'hotspots.' - Key point: Gov't calls for calm as radiation skyrockets in "safe zones."
2) Prestigious doctor: US nuclear 'Baby valley of death,' Millions to die. - Key point: Cover-up will lead to millions of deaths.
3) ‘It’s a sad day’ — Crest could be 10 feet higher than June 1. - Key point: Two nuclear power plants at risk of flooding and dozens of towns.
4) Radiation in Japan: Greenpeace Detected Cobalt-60 and High Radiation "Hot Spots" in Fukushima City in Fukushima. - Key point:   Fukushima City is in severe danger, 300k people exposed to radiation and Cobalt 60.
5) 6.46 microsieverts per hour detected in outskirts of Tokyo just a few meters away from children on playground. - Key point: Children exposed to 1 mSv per week, every week because gov't says it's safe zone.
6) Japan’s recovery from Fukushima to be measured in centuries, judging by Chernobyl. - Key point: Fukushima is a global catastrophe. 

Moral Hazard Monday- Greece Prepares to Sell Off Public Assets to Get "Loan"; Calls For Greece to Leave EU Intensify; Bonds Go Haywire In Portugal as Contagion Remains Key Word; Spain Erupts in Violent Protests; Poll Results, It's a Shocker; Gold Trading Becomes Illegal After July 15th; Japan Logs 2nd Biggest Deficit in History in May; Earth is Changing, and Not For the Better, Ash Clouds Shut Down Chile, Circle Entire Earth; Fukushima Flash- Cover-ups du Jour; TEPCO Stock Price More Important Than Life; Another U.S. Nuclear Power Plant Has Level 4 Emergency; More

This week's economic news schedule is very light. Other than the $20 Billion that will be injected into the stock markets via POMO, there is nothing to support Goldman Sachs' cash cow bonus maker high-frequency-algos the "stock markets." In fact we have the results of bullish radioactive catastrophes, as week after week of worse than expected financial reports are flowing in and yet "the markets" remain at 12,000 - a level that was seen as overbought when it was first reached in 2006. Everyone is aware that POMO injections are illegal the norm and the only thing keeping these markets propped up. That being said, July 11th is the last day of fiat money printing illegal activity the POMO schedule which means once the free money river stops flowing, "the markets" will have to return to earth - some Wall Street veterans see a 4500 Dow and 450 S&P if POMO stops (and that's after 10% YoY inflation included).


In other words, like a magician's fast hand card trick, one minute you see it, the next minute you don't. The same can't be said of physical gold and silver which will become illegal to trade for the common layman starting July 15th. Coupled with the ever increasing margin hikes on the CME, we can clearly see TPTB losing control of the whole house of cards - their actions indicate so.

As the Global Financial Judgement Day arrives (very soon) we can anticipate more desperate measures imposed for the layman. The next possible measure we can expect to see is the halting of gold and silver purchases. Then as the wheels fall off the financial system, possible confiscation of gold - exactly as it occurred during the Great Depression.


Whatever the case, the handwriting is on the wall already. The wheels are set in motion and this slow motion train wreck we are experiencing will go full speed ahead into a giant mountain side. One only needs to look Japan's latest economic news. Today's article in the Manichi Times says all that needs to be said - "Japan logs 2nd-biggest trade deficit as exports keep falling in May." Period. Now, who said that Japan's catastrophe was bullish? And who has been warning time and time again that the results will be horrific? Of course, Japan's disastrous economic results for May are being downplayed and spun to death. Not a headline to be found in U.S. news about this.


The results from our non-scientific and politically incorrect poll are in. An overwhelming 41% of our readers voted that a Great Depression is imminent - within 6 months or less. Twenty five percent voted a Great Depression is coming within 12 months. Twenty three percent voted a Great Depression is coming within 24 months. Five percent voted it can go either way. And last but not least, 4% voted no Great Depression. There are two ways to look at this poll. On the one hand, one could say this poll represents "dumb money" as Wall Street geniuses call them and it means absolutely no Great Depression is coming. On the other hand, the 89% that voted a Great Depression is coming soon could be spot on because they represent Main Street [insert any nation of the over 100 nations represented by our readers] and they are in touch with reality.

Our guess, Main Street has it right.


Our readers from Greece surely know the true condition of their country and from what we have learned, it's bad. Power outages will be the norm. The Greek gov't is so debased in their thinking so desperate, that they are planning to sell public property to foreign nations and banksters in order to get a bailout. Needless to say, the people are not so happy about losing their identity, heritage and their assets. Expect even more violent riots as the austerity measures being to take effect and tax increases shut off the consumer consumption spigot. Sovereign debt default remains a very real possibility. Tuesday is a momentous day for Greece as they vote on the budget and the future of Greece. The EU remains locked in battle over Greece as new moral hazards of bailing out Greece arise. The whole EU is on the brink as they manage to kick the can down the road only day to day. Portugal is tipping already as the 10yr bonds take a hit - now yielding 11.41%, or nearly the same as Ireland and the exact same trajectory as Greece. See our March archives for more information on the EU debt crisis.


In Spain, the situation is just getting heated up. The people have yet to feel austerity. As their burn rate has allowed them enough time to make it into 2012, we should expect to see the white flag pop up sometime in late Summer - along with bond yields. Already people are sensing what is coming and mass riots have begun.


As the financial world burns, so does the environment as the earth heats up - here, here, here and here. No matter what you hear from these so called "stock experts," none of this is bullish. Neither is Fukushima.


We learn more and more about cover-ups and lies in an attempt to paper over the life threatening situation. Here, EnergyNews reports that "radiation levels spiked 155 miles south of Fukushima after 1st explosion — Nuclear industry insiders told by officials to keep findings quiet."


We learn from the Manichi Daily News that TEPCO's stock price is more important than preventing radiation leaking. They are preventing a project to protect the drinking water because the cost of containing the molten nuclear fuel would costs TEPCO 100 Billion Yen.


And now the U.S. has it's own Fukushima as yet another nuclear power plant, this time the Cooper NPP has a level 4 emergency. As the river crests in late July, what will be the outcome?


We will update you on this developing situation as information is made available. 

Fairy Tale Fryday- Internet IPO's Are The Soup Du Jour As LinkedIn and Pandora Down Almost 50% Since IPO; Facebook Wants To Be Worth $1 Trillion; Check and Compare This; Greece Accomplishes Nothing With Shuffle; Even Greenspan Joins The Wagon; Wall Street TBTF Issues Big Layoffs; Fukushima Updates; Infant Mortality Rate in Philadelphia Jumps 48% Since Iodine Detected In Drinking Water; Three More Earless Rabbits Born; Hot Spots Are Found 140 South of Fukushima; Much More

Updates
Update 1: Ft. Calhoun Nuclear Power Plant reporting another "event." Nothing to see here - three explosions at Fukushima were also just "events."


Main Article
Once upon a time, in a far away land, there was an internet IPO - and it made all the insiders disgustingly wealthy. The End.


All jesting aside, that was the whole story. Any investor worth his weight in gold (at current spot prices, the average man is worth $4,588,000 in gold) remembers exactly where he was when the internet bubble popped. It's been over ten years since that implosion and it looks as if nobody has learned anything - well, ok - except for the bookies underwriters, a.k.a TBTF banks, who have mastered the art of sales.


We began today's article with a "fairy tale" introduction because we felt it was so apropos that so many retail suckers investors and momentum hunters, looking to get in early on a "hot" stock, were sold a fairy tale - happy ending and all - only to wake up and discover it was nothing more than a story. Well, it sounded nice. We can't help but think about the stereotypical used car salesman who talks up a real junker with a shiny coat of paint to the misguided and naive grandmother. He says to her, "Oh, it says 250,000 miles on the odometer but believe me, it's been driven like there's only 25,000 miles. She's got tons of life in her! But if you don't buy it now, I promised another person who offered to pay more they can have her." And so the story goes. There's a sucker born every minute.


We can't help but ponder how Goldman Sachs, the master used car salesman of the investment world, is going to talk up the quasi junk heap next internet IPO called Facebook. After all, insiders are really pushing to make Facebook's IPO worth $1 Trillion(!) and that's why Goldman pulled the plug on Facebook's $50 Billion valuation - it wasn't enough. We won't even bother going into the math involved at attaining $1 Trillion, but here are some statistics on the most recent disaster internet IPO that should make you do a double take.


On the first day of trading, LinkedIn's hyped up IPO went from $45 (for insiders and institutional banksters) to $121.90. That gave LNKD a market crap cap of $10 Billion, a P/E ratio of nearly 1800x earnings and a P/S of 40x. For arguments sake, let's plug those numbers into other well known and successfully traded companies that actually produce revenues.


Using LNKD's P/E ratio on it's opening day-

Apple would be worth $34.1 Trillion.  

Ford would be worth $12.6 Trillion. 

ExxonMobil would be worth $62.6 Trillion. 

AT&T would be worth $36.1 Trillion. 

Even General Motors would be trading at $12.1 Trillion.

For perspective, the GDP of the entire global economy is $58 Trillion.


Now using the P/S ratio:

Apple would be worth $3.5 Trillion. 

Ford would be worth $5.2 Trillion. 

ExxonMobil would be worth $14.56 Trillion. 

AT&T would be worth $5.1 Trillion. 

Even General Motors would be worth $5.6 Trillion.

Now, before some of you (the 1% that voted there is no Great Depression coming) get your panties in a twist over these outrageous and comical valuations and send rude emails that this is not the way to value a stock - yes, we know - this is simply an example of, shall we say, "irrational exuberance." In other words, don't buy the hype - due diligence can save you a lot of misery.


It should be noted, LinkedIn is now trading at $66.50, a 46% drop from the irrationally exuberant price. Pandora is now trading at $12.70, a 52% drop from its peak. For what it's worth, Pandora doesn't expect to turn a profit ever before the end of 2012, but they thank the investors in advance. Additionally, insiders of both companies feel very comfortable with their stock price.


That being said, the only way Facebook will ever see a $1 Trillion valuation is if the master used car salesman can pull in enough suckers we experience Zimbabwe-like hyperinflation. Then, Facebook can have the bragging rights of being the first $100 Quadrillion company. Of course, we're not giving any investment advice whatsoever, but as always, we recommend you do your own due diligence and invest wisely. Retail investors can win if they play their cards right.


Speaking of due diligence, Greek drama continues as a full gov't reshuffle takes place - and accomplishes absolutely nothing. Even Greek CDS spreads are unchanged from yesterday's high of 2040 while the Greek 10yr bond is yielding a utterly unsustainable 17.81%. Portugal, on the other hand, isn't fairing much better and is following exactly in the same steps as it's brother Greece was - 10yr bonds are at 10.91% and rising sharply. Spain remains at 5.63% on the 10yr but that too will soon rise.


As this article from ZeroHedge is entitled, "Greek Math: €12 Billion In, €18.2 Billion Out... And That's IF The Impossible Happens," you can see why the impossible won't happen. And sorry G Pap, it won't even happen in 2013 either.


Of course, Greece's fate is very important to the continuation of the global financial system. Even Greenspan says so, "so it's gotta be true!" Actually Greenspan says that a Greek default could trigger a recession in the U.S. of A. Could you imagine that? With his comment on the possibility of a recession in the U.S., we can conclude that he still didn't get the memo - we're well past recession and heading in a depression. Then again, neither did Dr. Deficit.


It's always nice to see that some people do connect the dots, as this video from Robert Reich shows. Politics aside, this video makes a very strong case, in just 2 minutes and 15 seconds.


It should be particularly alarming to anyone with a conscience, that while the upper crust of Wall Street lives in a world of an internet bubble shameless luxury and record bonuses, it continues to make big jobs cuts. As we reported last week, some Too Big To Fail banks are thanking the taxpayers by issuing layoff notices. Today, we have further confirmation and it looks worse than before. Goldman Sachs is making the biggest cuts - 10%. Ouch! Better hurry that Facebook IPO or there'll be no gifts this year.


Now, on to the other matters concerning life. Fukushima continues to get uglier. First we get reports from the WSJ that hot spots of high radiation are now showing up 140 miles south of Fukushima, in Tokyo. No surprises here.


Last months report about an earless rabbit being born in Japan was all the rage. Now, we learn that in China, three more earless rabbits were born and the whole village has shown up. With radiation spiking across Asia, is it any surprise that this is occurring? Further, the impacts that we warned about months ago are finally showing up in the U.S. In Philadelphia, PA, we learn that since Iodine 131 was showing up in drinking water, the death rate among infants is up 48 percent(!). Ann Coulter said radiation is healthy and so people believed it. Now they are paying for it. How long before the populous realizes what has really occurred? 


Sweet dreams and good night. Don't let the Abercrombie & Fitch bedbugs bite.

Thursday's Spotlight- Greece Steals Spotlight of Fame as CDS Spreads Explode to New Highs; Contagion is Here as Ireland Goes Wacko; Haircuts On Way For Allied Irish Bank Bond Holders; Greece In Turmoil; MK Video on "Fiat Inflation in France"; Black Swans Growing as Reports of Radiation Sickness Spreads; Three Hundred Square Meter Hole in Reactor 2; Fukushima is Equivalent of 20 Nuclear Cores Exposed; Infant Deaths in U.S. Skyrocket; Volcano in Eritera Erupts Big Time; New Strain of German E.coli Discovered in France; Copper Theft in CA Big Business; Schools in Florida Shut Water Off; Citi Bank Now Says 360,000 Accounts Hacked; Dude, Where's My Internet IPO?; Much More

Updates
Update 1: Greek CDS now at 2050. What else can we say?


Update 2: Radiation levels skyrocket in South Korea as reactor 4 spews more smoke.


Main Article
With Greece stealing the spotlight away from all of the other significant developments (more on that later), one has to wonder if those other significant developments will prove to be a Black Swan of sorts - or many Black Swans of sorts. A quick glance at the Greek CDS shows it above 1900 - a level that was unthinkable just last year for a "sovereign" nation. It will be very interesting to see if Greece can make its July bond payment without more direct handouts bailouts from the United States taxpayer ECB/IMF/EU. We all know the Titanic turned out to be "unsinkable" just as they were 100% Bernanke certain it was, so too Greece and the whole EU experiment. Greece may even see 30% yields on the 2 year before the week is over the way things are going. Calling Guiness Book of World Records, we need you again for another record.


The word "contagion" was all the rage last year and it has seemed to have lost some meaning this year as the ECB promises to support every member til the very end - even if that means taking down the whole ship. Surprise, we call their bluff. One look at Irish and Portuguese CDS spreads show others are also catching on.  As of this writing, Irish CDS spreads are wider by 35 points up to 815 now. Of course, neither this nor anything below 400 is anywhere near sustainable and once a spread breaks the 700 level, it's a K.O. As always, we recommend to keep your Irish eyes on Ireland's bombs bonds as that seems the next "sovereign" to see the SHTF. While we're at it, throw in Portugal for good measure. Remember, "the pain in Spain remains on the Iberian plain." For now.


As per our Update 3 yesterday, Allied Irish Bank has defaulted. Of course, this story has quickly vanished from the Main Stream Media. Since this nationalized bank is 92% owned by the Irish gov't, we can't see this as being bullish for the EU as a whole. Neither is the fact that the default means bond holders will get 90% haircuts.


As "Occupied London" says, Greece is "a society in some spectacular turmoil." We couldn't agree anymore and think the worst is yet to come once austerity measures are implemented fully. In this instance, even a change of command won't bring about the necessary changes. Sorry G-Pap. Reshuffling the gov't amounts to reshuffling the deck chairs, on the Titanic - if you haven't already sold them to the banksters, that is.


Now for the main event - the doom. [insert dramatic doom music]. While Greece performs the sideshow and the clowns run around trying to reshuffle deck chairs, the back doors of Hades the animal containment has been left open. First, we begin this part with an excellent video from Max Keiser entitled - "Fiat Money Inflation in France." We must say, this is quite a video to watch and it is a warning of what is to come in a fiat world. Of course, we didn't just pick this video because it has our favorite word "fiat" in the title - it explains the inherent flaws in fiat and that fiat currency is always created to benefit a few at the cost of the majority, and it always ends bad - and that's when everything else goes smooth. [insert dramatic doom music]


Fukushima is an ongoing Black Swan event - one of those events that can't be easily seen coming in advance (although building a nuclear power plant on the shore, in a highly active seismic region, on a volcanic island, etc, etc, etc didn't help). With that said, why consciously make a bad situation worse by downplaying the emergency? From SKF we get the first reports of radiation sickness. We present to you without further commentary an excerpt:

Tokyo Shinbun (paper edition only, 6/16/2011) reports that many children in Koriyama City in Fukushima Prefecture, 50 kilometers from Fukushima I Nuclear Power Plant, are suffering inexplicable nosebleed, diarrhea, and lack of energy since the nuke plant accident.

Any questions? Good, because today we learn from NISA (Nuclear and Industrial Safety Agency) there is a hole of about 300 square meters in the reactor 2 suppression pool and that Fukushima is the equivalent of 20 nuclear cores being exposed. Now who said from day two point five that they were covering up everything? Again, connect the dots and see for yourself. Metallic taste being reported in Japan and along the West Coast United States. Earless rabbit being born far outside evacuation zone. Radiation sickness being reported far from Fukushima. And dozens of other clues you need to remember as this situation escalates. Just because your Channel 7 news is reporting about Weiner's weiner 24x7 and not a peep about Fukushima doesn't mean anything has changed. Watch this video on the incredible and alarming increase in infant deaths in the United States alone. We can only imagine the statistics in Japan being "massaged" to look better or not even reported.


We're paying particular attention to the events unfolding down in Chile, but now also in Africa. A major volcano in Eritrea has erupted and is intensifying with today's explosion being the largest yet. The plume can been seen from space and covers thousands of square miles. Even Hilary Clinton canceled her trip to Africa because of concerns. This volcano is said to be one of those "super volcanoes" so it deserves a closer inspection. The volcano in Chile is important because the ash has decimated the local economies of farmers in 5 countries and is getting worse. Print more money Ben. That'll make it go away. 


Another concern to watch out for is a new strain of the E.coli that was discovered in Germany has been discovered in France and has so far sent 7 children to the hospital. Do we have an epidemic on our hands?


We've been discussing the decline of the U.S. in great detail and pick up on the daily jobs cuts for a while now. Here we have yet more disturbing evidence that the collapse is accelerating as unemployment continues to skyrocket. Copper theft in California is becoming a big business for the unemployed. And then it's also those smaller things you don't usually notice but add up - like a school district in Florida being forced to cut drinking water at fountains to save money. Talk about pinching pennies (I know an individual who can make a "dime scream." Maybe they can hire him?)


Last week we reported that Citibank announced very quietly, it was hacked a month ago, and that a total of 200,000 accounts were compromised. Today, they made some changes. Now they are reporting today, one month later, that 360,000 accounts were hacked. It seems Too Big To Fail Banks are tearing a page from TEPCO - deny, deny, deny. Then when your cover is blown - downplay, downplay, downplay. Then once the sheeple are sleeping and few notice, you slowly test the waters with releases that are closer to the truth - but still not quite the truth. Sort of like the most recent wave of internet scams IPOs - LinkedIn and Pandora come to mind. LNKD is now at $70.55 from its high of $122.70 for an almost 44% drop and P is down to $15.50 from its high of $26. Our deepest condolences to the suckers retail investors who fell into the hype. At least the rigged casino "stock markets" are up today. Dude, where's my internet IPO? 

Meltdown Wednesday- Greece At Level 7 Meltdown As Protests Turn Violent; Greek Bond Yields Explode, Again, Set Another New Record; Markets Tumble, But Far From Enough; The U.S. May Have Its Own Fukushima as Ft. Calhoun Nuclear Power Plant Now Emergency Level 4, Situation Spiraling Out of Control; Postal Workers Set To Spy On Neighbors; The Untold Cost of War? $1.2 Trillion; Volcano In Chile, Goes Into High Gear; Fukushima Updates; Much More

Updates

Update 1: Markets are tanking as the rats flee the ship. Expect to see the circuit breakers kick in, followed by the PPT. 

Update 2: Keep an eye on the French and German banks. Their exposure to Greece is absurd.


Update 3: AIB (Allied Irish Bank) just defaulted(!) so that makes two canaries in the coal mine. 

Main Article

In order to understand global finance, we need to understand how a giant supertanker operates. Think of a developed nation's economy, like the U.S. or England, as the vessel itself, fully laden with oil. There is a captain, along with other important crew members who make important decisions on a daily basis. Fully loaded, this supertanker takes a very long time to reach maximum operating speed, and even longer to adjust course. Yes, a simple 90 degree turn to avoid a major storm, for example, usually is planned long in advance and hundreds of miles ahead of the obstacle.

So too, a large complex economy takes years to change its heading, if a storm is ahead. Why the "captains" of this supertanker vessel named, "The U.S. Economy" failed to see action was necessary back in 2003 is beyond anyone's comprehension. Even a change of command has failed to produce the correct results. Now, 8 years after that "point of no return," the consequences of their (in)actions are coming back home to roost - a global economic collapse is upon the entire world.

As we have been warning since, well... as long as this blog has been publishing, Greece is insolvent. Although one could make adjustments to their balance sheet to make it appear "solvent," the fact of the matter is, Greece's wallet has more holes than Lady Gaga's fishnet stockings. It is obvious to everyone with the ability to add and subtract single digits, that Greece can't function as they are. Yet, all of this was not obvious, or simply  ignored by the captains of the global supertankers. We're heading right into the storm - a category 5 hurricane with winds in excess of 250 MPH and ocean swells 900 feet high. Yeah, straight out of a Hollywood movie. Greek bonds have literally exploded (well, we did tell you months ago to keep your eyes on CDS spreads and Greek bond yields). Exactly as predicted two weeks ago, the massive protests would turn ugly. Oh, and keep your Irish eyes on Ireland. Just for fun.

Today, we see that Greece is on the brink of a full revolution; a situation that could indeed cause the entire European Union to disintegrate; the consequences of that occurring, would be the domino to collapse the global economy. Too Big To Fail Banks, meet your long lost brother, Too Big To Fail (But Already Have Failed) Monetary Unions. These could be the last days of the EU as we know it. Guess Hu who won't be so happy?

Greece is experiencing the largest protests to date, and they have turned very violent - fire bombs, tear gas and all. We're getting updates from "Occupied London" and the latest report shows "a lot of people are injured by the brutal attacks of the police." It's on like Donkey Kong. General strikes always are bullish for a nation's GDP, just like a magnitude 9 earthquake, followed by a tsunami and three nuclear reactors going into full meltdown are bullish for the global economy. Has Warren left for his bunker yet? Munich Re is calling.

Speaking of meltdowns, for those of you who have been following this site, you know that the Missouri River has reached critical level and last week we said to keep an eye on the little things like, St. Louis and Ft. Calhoun nuclear power plant. Little things that have no impact on the economy. Now, we get confirmation from several sources that we may have our own Fukushima disaster here in the U.S. Yes, Ft. Calhoun has been upgraded to a level 4 emergency (ironic, since Japan said Fukshima was a level 4 emergency for almost a month after the catastrophe). This should be an early warning to those living in and around Ft. Calhoun and every town on the Missouri River. Arnie Gundersen has said this could go to a Fukushima level disaster very soon. We suggest, if you watch one video today, make this the one.

In another sign that the U.S. is becoming a police state big brother is watching, Postal Service employees are being told to keep a close eye on you. The next time to see Mr. Postman making a delivery, he may also be scouting your home. All in the name of "national security," of course. After all, the Postal Service is already insolvent, might as well, "add that to the bar tab," to pay for over time spying. What's another $1 Billion or so?

Speaking of bar tabs, a new article in the AlterNet news says the real U.S security budget is $1.2 Trillion. Shhhhh! Don't tell anyone.

Another event we are keenly reporting and the main stream media is ignoring is the super volcano in Chile which continues to spew hot ash for thousands of miles. Over 80,000 square miles have been covered in ash, decimating the local economies there (remember, this is bullish for the global economy) and this new video shows ash so deep, you can swim in it - and that is 100 miles away from the volcano. Ok, so this is also another video you must watch. That makes two for the day.

Fukushima: Ok. Here it is. You wanted proof that high levels of radiation are leaking into the sea and that Fukushima is a possible ELE? Radioactive whales found 650 Kilometers from Japan. No commentary necessary.

Once again, Energy News never disappoints with news as this headline supports - "Japanese media blackout of words: MOX, plutonium, and meltdown." The term "coverup" does not describe it.  

Finally, to update you on another scam internet IPO, Pandora shares soared today after the retail suckers investors bit the bait, only to collapse as market makers, banks and other scum ran away with literally hundreds of millions of dollars in instant profit the rats ran for the doors. All in a day's work.