21 April 2010

US Said to Ready Special Armed Forces Unit For Domestic Deployment in Case of Disaster or Civil Unrest


Although the National Guard has been used in the past to deal with protests, they were called by the state governors and were not acting at the direction of the Federal government.

"The Posse Comitatus Act is a United States federal law (18 U.S.C. § 1385) passed on June 18, 1878, after the end of Reconstruction, with the intention (in concert with the Insurrection Act of 1807) of substantially limiting the powers of the federal government to use the military for law enforcement. The Act prohibits most members of the federal uniformed services (today the Army, Navy, Air Force, and State National Guard forces when such are called into federal service) from exercising nominally state law enforcement, police, or peace officer powers that maintain "law and order" on non-federal property (states and their counties and municipal divisions) within the United States.

The statute generally prohibits federal military personnel and units of the National Guard under federal authority from acting in a law enforcement capacity within the United States, except where expressly authorized by the Constitution or Congress. The Coast Guard is exempt from the Act during peacetime."

I wonder if this is true, and if the Obama Administration intends to deploy Federal troops, or declare martial law, this summer prior to the elections. I am not familiar with the Newark Examiner.

It does not seem consistent with the law, because this is a regular army regiment. The provisions for their deployment passed during the Bush Administration had been repealed, setting the use of troops back to the conditions of Insurrection as I recall.

I believe that is the premise by which the government directed MacArthur to lead regular army troops to dispel the WWI veterans from the Capitol in the last Great Depression.

Even in the race riots of the 1960's which were in many cases armed and dangerous, the National Guard was deployed at the direction of the state's governor. I am not aware of any other legal precedents or rules on this. Perhaps someone else can oblige.

P.S. A reader informs me that this news report is from a 'conservative' news source that has a variety of virtual locations in different states. The size of this military unit is also said to be greatly overestimated at 80,000. I suspect that this might be the case, and that the purpose of this news piece may be to incite misplaced concerns. But it does serve to bring up the issue, and to make people aware that posse commitatus has been considered a 'liberty' of the land for over a hundred years. If it is ignored, and the law is broken, then the American people will speak out against it again, as is their duty and their obligation.

Newark Examiner
Special army unit ready to be deployed on American soil just before Nov. elections
April 21, 2010

In October of this year, one month prior to the November midterm elections, a special army unit known as 'Consequence Management Response Force' will be ready for deployment on American soil if so ordered by the President.

The special force, which is the new name being given to the 1st Brigade Combat Team of the 3rd Infantry, has been training at Fort Stewart, Georgia and is composed of 80,000 troops.

According to the Army Times,
"They may be called upon to help with civil unrest and crowd control or to deal
with potentially horrific scenarios such as massive poisoning and chaos in
response to a chemical, biological, radiological, nuclear or high-yield
explosive, or CBRNE, attack."
The key phrase is 'may be called upon to help with civil unrest.'

This afternoon a local radio talk show host reported that he had been in contact with a member of the military. This military source stated that the armed forces have been alerted to the strong possibility that civil unrest may occur in the United States this summer, prior to the midterm elections of 2010.

The source described this as 'our long, hot summer of discontent' that could be eerily reminiscent of the summer of 1968 when riots broke out in many of our largest cities.

However, the summer of 2010 could well be much worse due to the players involved. In 1968 the major players were war protesters. This time, the outrage simmering beneath the surface of American society involves a broad cross-section of the heartland, and most of them are heavily armed...

Read the rest here.


93% Of Commodity Specs Believe that Gold Price Will Decline; US Financial Model Is a Threatened Specie


Of course that pun in the title is intended. How could you even ask?

Mom and Pop America, unlike their Asian counterparts, and most speculators apparently, do not favor the precious metals like gold.

They might be right. But sometimes it is safest to be positioned comfortably far from the maddening (pun intended as in 'frenzied' and 'annoying') crowd.

For me that entails being on a short term hedged trade, long stuff and short fluff.

The US financial sector, as represented by the bloated banks, are overvalued based on a business model that relies on gaming the system, routinely defrauding their customers, adding little value to the global economy except for themselves, and feeding off the wealth creation and the labor of the many. That seems to be coming to an end, perhaps not tomorrow, but as time goes by.

If stocks take a serious tumble in the US we'll know which way the wind is blowing. If gold holds its ground, we will have an indication that it is ready for the next leg up, because the drop in stocks is based on a disgorgement of assets which have lost their appeal and confidence because of the repeated, increasingly reckless, and virulent frauds of the American oligarchs.

Commodity Online
Poll: 93% of Investors Believe That Gold will Fall

By Rutam Vora
21 April 2010, 10:49 a.m. EST

(Commodity Online) -- At a time when gold prices reeled under pressure, for a sustained period after hitting their all-time high in December 2009, the perception towards the yellow metal seems to have reversed with investors hinting at weakening of gold prices in the near future and strengthening of other investment avenues...

In an online opinion poll conducted by Commodity Online, a majority of the respondents have hinted at a possible fall in gold prices in the near future, and better earning opportunities will come knocking on the door.

In an online poll of a sample size of 21,600 respondents selected from across the globe, 93% or 20,100 of the total sample size had opined that there would be a fall in gold prices due to a recent upbeat mood in the global equity markets, while only 1,400 respondents contradicted the stand, 0.46% did not comment on either side. This showed that most of the respondents believed that there would be a fall in gold prices in the near future due to a recovery in global equity markets.

However, with regard to the other metals being an investment destination, most of the respondents maintained a view that they (base metals) can potentially become alternative investment instruments. As many as 64.35% of respondents considered base metals as a potential investment instrument but of them, 53% still chose gold as a preferred investment instrument compared to base metals, while 46.76% preferred base metals to gold....

Similarly, of the total respondents as many as 53.1% believed that the US dollar would replace gold from its status of 'safe haven.' Looking at the recovery of the US economy from the nightmarish recession which had started from the US and hit the world economy in 2008, the dollar was found gathering steam once again. However, 46.8% of the respondents contradicted the view and maintained their skepticism towards the dollar and put gold to their preferred investment mode...


US Unveils an Even Newer New $100 Bill


The new $100 US bill will go into circulation on February 10, 2011.

It is being put forward as a new form of currency with stronger anti-counterfeiting measures to help stem the tide of non-official monetary expansion.

I suspect at some point it will facilitate a 'recall' of the old notes, as a means of combating cash and carry businesses and money laundering. It will also seek to unhinge cash hoarding overseas tied to the drug trade.

It has not been announced if these bills will be carrying an expiration date to insure freshness.

Secretary of Treasury Tim Geithner will be auctioning the crayons he used to sign his name to the bill on eBay to help defray the national debt. His handle is 2RB-O-TimEE.

New Money Homepage

Wall Street Journal
U.S. Unveils New $100 Bill
By
DARRELL A. HUGHES

April 21, 2010

WASHINGTON—Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke unveiled a new $100 bill equipped with two new security features.

The bill will go into circulation Feb. 10, 2011.

The Fed, along with the Treasury Department, the Bureau of Engraving and Printing and the U.S. Secret Service, "continuously monitor the counterfeiting threats" for each denomination and redesign decisions are made based on those threats, Mr. Bernanke said.

"This job has become more complex in recent years as technology advances and U.S. dollar flows expand and increase," he added.

The bill—the highest denomination of all U.S. notes—circulates widely around the world, with circulation in the past 25 years growing to $890 billion from $180 billion.

About two-thirds of all $100 notes circulate outside the U.S.; Mr. Bernanke said the agencies must ensure people around the world are aware of the design change. Over the next several months, officials at the agencies will work to educate cash handlers,
consumers and others about the design and explain how to use its security features
.

The 6.5 billion or so $100 notes in circulation now will remain legal tender, Mr. Bernanke said.

The new bill's security features include a blue 3-D Security Ribbon on the front of the note that contains images of bells and 100s, which move and change from one to the other as you tilt the note, according to joint release from the agencies.

Another security feature is the "Bell in the Inkwell" image that changes color from copper to green when the note is tilted, an effect that makes it appear and disappear within the inkwell. (For more on the redesigned note and its features, visit www.newmoney.gov.)

"As with previous U.S. currency redesigns, this note incorporates the best technology available to ensure we're staying ahead of counterfeiters," Mr. Geithner said.

The new design for the $100 note retains three effective security features from the previous design: the portrait watermark of Benjamin Franklin, the security thread, and the color-shifting numeral 100.


The Financial Oligarchy in the US


If you do nothing else this week, read the transcript or watch this video.

I have a serious difference of opinion with the speakers with regard to Robert Rubin and his role, but they make up for it with their description of Jamie Dimon as close to the White House and one of the most dangerous men in America today.

And I thought it was interesting that Simon Johnson would say openly that the ONLY Senator who is speaking the truth plainly is Ted Kaufman from Delaware.

Other than that they are substantially putting out a very sound and realistic view of the root of the problems that created the financial crisis, and what requires to be done to rebalance the system and create a sustainable recovery.

BILL MOYERS: And you say that these this oligarchy consists of six megabanks. What are the six banks?

JAMES KWAK: They are Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo.

BILL MOYERS: And you write that they control 60 percent of our gross national product?

JAMES KWAK: They have assets equivalent to 60 percent of our gross national product. And to put this in perspective, in the mid-1990s, these six banks or their predecessors, since there have been a lot of mergers, had less than 20 percent. Their assets were less than 20 percent of the gross national product.

BILL MOYERS: And what's the threat from an oligarchy of this size and scale?

SIMON JOHNSON: They can distort the system, Bill. They can change the rules of the game to favor themselves. And unfortunately, the way it works in modern finance is when the rules favor you, you go out and you take a lot of risk. And you blow up from time to time, because it's not your problem. When it blows up, it's the taxpayer and it's the government that has to sort it out.

BILL MOYERS: So, you're not kidding when you say it's an oligarchy?

JAMES KWAK: Exactly. I think that in particular, we can see how the oligarchy has actually become more powerful in the last since the financial crisis. If we look at the way they've behaved in Washington. For example, they've been spending more than $1 million per day lobbying Congress and fighting financial reform. I think that's for some time, the financial sector got its way in Washington through the power of ideology, through the power of persuasion. And in the last year and a half, we've seen the gloves come off. They are fighting as hard as they can to stop reform.

The Financial Oligarcy in the US - Bill Moyer's Journal