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» Soros Activists Take Over Ukrainian Government Buildings Alex Jones’ Infowars: There’s a war on for your mind!
» Soros Activists Take Over Ukrainian Government Buildings Alex Jones’ Infowars: There’s a war on for your mind!.
Early Monday members of Spilna Sprava took over the Justice Ministry in Kiev and demanded President Viktor Yanukovych resign. They smashed windows and erected barricades. In response, the government has threatened to impose a state of emergency.
Soros and EU activists leave Ukrainian Justice Ministry.
Justice Minister Olena Lukash said negotiations between the protesters and the government should be discontinued if Spilna Sprava activists do not leave the ministry and other government buildings. “I will be forced to ask the president of Ukraine to stop the talks if the building is not freed immediately and negotiators are not given a chance to find a peaceful solution to the conflict,” Lukash told Ukraine’s Inter channel. Lukash said she would also demand Ukraine’s national security council “discuss imposing a state of emergency in this country.”
Following the action at the Justice Ministry, Spilna Sprava announced on its Facebook page it had decided to blockade the building instead of occupying it following Justice Minister Olena Lukash’s threat to declare a national emergency. “The activists form a tight cordon and are not allowing media representatives into the building,” the Ukrainian News Agency reported on Monday. “According to them, all Spilna Sprava activists have left the building because continued occupation of the Ministry of Justice could have led to an escalation of the conflict.”
Occupiers Work for Soros and the EU
Spilna Sprava, translated as “The Right Deed,” is an Open Society Institute supported and funded group. George Soros’ Open Society Institute, now known as Open Society Foundations (OSF), doles out grants to activist NGOs in central Europe attempting to undermine the Russian Federation. It builds upon andcontinues the work of the Ford Foundation. Since the early 1950s, the CIA has used the Ford Foundation as a funding cover.
Spilna Sprava is mentioned in the 2009 annual report of the International Renaissance Foundation (IRF), an organization described as “an integral part of the Open Society Institute network (established by American philanthropist George Soros) that incorporates national and regional foundations in more than thirty countries around the world, including Africa, Central and Eastern Europe and the former Soviet Union.” IRF cooperates with the International Monetary Fund and European banksters interested in “economic reforms” and “integration processes and trends” in Ukraine and Moldova.
The IRF report describes Spilna Sprava as “[s]haring best practices, facilitating cooperation between Ukrainian, Polish and German NGOs through creation of a network of support for migrants and refugees.” It is partnered with a Polish NGO, the Euro-Concret Association, that conforms to the “the standards of the EU countries” and works closely with Arbeiterwohlfahrt Kreisverband Bremerhaven, a German NGO funded with support from the European Commission.
“Germany, the EU and the US are pursuing not only economic, but also geopolitical, objectives in Ukraine. Given Russia’s loss of influence in Eastern Europe since the dissolution of the Soviet Union, the incorporation of Ukraine into the EU would push Russia off to the edge of Europe,” writes Peter Schwarz.
The destabilization of the Ukrainian government is part of an ongoing geostrategic move by the globalists to undermine any challenge to their hegemonic designs:
Since the end of the 18th Century, Ukraine formed an important part of the Russian and Soviet state. Moreover, the Russian Black Sea Fleet is located in Crimea at a port leased to Russia by Ukraine.
Both the US and the EU have an interest in weakening Russia, which is considered to be an important ally of China. Immediately after his election in March, Chinese President Xi Jinping traveled to Moscow to strengthen the two countries’ “strategic partnership.” Both countries feel threatened economically and strategically by the aggressive incursions of the US and its allies in Asia, the Middle East and Africa.
The offensive against Ukraine raises profound historical questions. In two world wars, Germany sought to bring Ukraine under its control and committed abominable crimes in the process. The current brazenness of the German government is fraught with new dangers. The growing international tensions can quickly turn into armed conflict.
These international tensions and the globalist connection to the escalating protests not only in Kiev but now across Ukraine are naturally ignored by the corporatist media. Significant developments on Monday were overshadowed by the usual pablum, notably ad nauseam coverage of the 56th annual Grammy Awards ceremony on Sunday night.
Bank of America Is Actively Preparing For The Chinese January 31 Trust Default | Zero Hedge
Bank of America Is Actively Preparing For The Chinese January 31 Trust Default | Zero Hedge.
Last week we were the first to raise the very real and imminent threat of a default for a Chinese wealth management product (WMP) default – specifically China Credit Trust’s Credit Equals Gold #1 (CEQ1) – and its potential contagion concerns. It seems BofAML is now beginning to get concerned, noting that over 60% of market participants expects repo rates to rise if a trust product defaults and based on the analysis below, they think there is a high probability for CEQ1 to default on 31 January, i.e. no full redemption of principal and back-coupon on the day. Crucially, with the stratospheric leverage ratios now engaged in such products, BofAML warns trust companies must answer some serious questions: will they stand back behind every trust investment or will they have to default on some or potentially many of them? BofAML believes the question needs an answer because investors and Trusts can’t have their cake and eat it too. The potential first default, even if it’s not CEQ1 on 1/31, would be important based on the experience of what happened to the US and Europe; the market has tended to underestimate the initial event.
For those who have forgotten, below is a quick schematic of what a WMP looks like:
And as we previously noted,
…borrowers are facing rising pressures for loan repayments in an environment of overcapacity and unprofitable investments. Unable to generate cash to service their loans, they have to turn to the shadow-banking sector for credit and avoid default. The result is an explosive growth of the size of the shadow-banking sector (now conservatively estimated to account for 20-30 percent of GDP).
Understandably, the PBOC does not look upon the shadow banking sector favorably. Since shadow-banking sector gets its short-term liquidity mainly through interbanking loans, the PBOC thought that it could put a painful squeeze on this sector through reducing liquidity. Apparently, the PBOC underestimated the effects of its measure. Largely because Chinese borrowers tend to cross-guarantee each other’s debt, squeezing even a relatively small number of borrowers could produce a cascade of default. The reaction in the credit market was thus almost instant and frightening. Borrowers facing imminent default are willing to borrow at any rate while banks with money are unwilling to loan it out no matter how attractive the terms are.
Should this situation continue, China’s real economy would suffer a nasty shock. Chain default would produce a paralyzing effect on economic activities even though there is no run on the banks. Clearly, this is not a prospect the CCP’s top leadership relishes.
So the PBOC’s efforts are merely exacerbating the situation for the worst companies… and as BofAML notes below, this is a major problem…
The 3bn CNY Beast Knocking
via BofAML’s Bin Gao
CNY stands for the currency, and also a beast
CNY represents China’s official currency. It also stands for Chinese New Year, the biggest holiday for the country and the occasion for family reunions and celebration. But less familiar for many, however, the Year (?) itself actually stood for a beast which comes out every 365 days and eats everything along the way from bugs to humans. The holiday tradition started as a way for people to fend off the beast by getting together and lighting up the firecrackers.
At the same time, custom dictated that people also to paid their due to avoid becoming the beast’s target. In particular, it has been a tradition to settle all debt before the New Year. From the perspective of such folk culture, the trust product Credit Equals Gold #1, referred as CEQ1 hereafter, by China Credit Trust planned poorly for having the maturing date on the New Year, leaving a 3bn CNY beast running wild.
High probability for the trust product to default
Though the term default is used quite frequently, there are actually confusions on what constitutes a default in this case when talking to investors and especially onshore investment professionals. To simplify the issue, we define a default as failing to pay the promised contractual amount on time.
The product, CEQ1, is straightforward. It is CNY3.03bn financing with senior tranches of CNY3bn and junior tranche of CNY30mn. In principle, the senior tranches are also equity investment, but the junior tranche holder pledged assets for repurchasing senior investment at a premium. The promised rate was indexed to PBoC’s deposit rate with a floor for three classes of senior tranches at 9.5%, 10% and 11%, paid annually (detailed structure is illustrated below).
In a sense, the product is in technical default already. The last coupon payment in December, with nearly all the money (CNY80mn) left in the trust account, came in at only 2.7%, falling far short of the promised yield. The bigger trouble is the CNY3bn principal payment, along with the delinquent coupon, on 31 January.
We see high probability of default on 31 January
Political or economic consideration: ultimately, given the government’s strong grip on financial institutions, default may be a political decision as much as an economic decision. From that perspective, CEQ1 would be a good candidate for default. The minimum investment in CEQ1 is CNY3mn, much more than the typical amount required for other trust investment and 75 times of per capita GDP in China. If defaults were to be used to send a warning signal to shadow banking investors, this group of rich investors may have been a good target because the government does not need to worry too much of them demonstrating in front of government offices.
Timing: there is never a good timing for deleverage because of risks involved. But the current job market situation provides a solid buffer should defaults and subsequent credit contraction slow down the economy growth. The government planned 9mn jobs last year; instead it has created more than 12mn by November. So the system could withstand a potential shock.
Financial capability: China Credit Trust has a bit over CNY10bn net assets, which some analysts cite as evidence of the trust company’s capability to fully redeem the product first and recover from the collateral asset later. However, the assets might not be liquid enough, so the net asset is not the best measure. Based on its 2012 annual report, the company has liquid asset of CNY3bn and short-term liability of CNY1.35bn, leaving liquid accessible fund of CNY1.65bn at most. ICBC for certain has much deeper pocket, but it has declared that it won’t be taking major responsibility.
Career concern: To certain extent, the timing was unfavorable for another reason, the ongoing anti-corruption campaign. It is reported that there are around 700 investors involved. On CNY3bn senior tranche investment, it averages CNY4.3mn per investor. We do not know the exact identity but with CNY3mn entry point, we know no one is a small-scale investor. Legally unjustified, if either China Credit Trust or ICBC decided to pay 100% with their capital, the decision maker would have to ensure that he does not have any business deals with any of the 700. Because if he does, his career or even his freedom could be in jeopardy in the current environment of ongoing anti-corruption campaign and strict scrutiny of shady deals/personal favors.
Questionable asset quality and uncertain contingent claim: There are cases in the past of near default, but most of them involved collateral of real estate assets, which have at least appreciated over the years. The appreciation of collateral assets makes it easier for the third party to step in by paying back investors and taking over the collateral assets. This particular product involves coal-mining assets whose value has been decreasing over the last couple of years. Moreover, there have been multiple claimants on these assets, as exemplified by the sale of Yangjiagu coal mine. Although the mine was 51% pledged through two levels of ownership structure, only 20% of the sales proceed accrued to trust investors (Exhibit 1 above). Such a low percentage would be a deterrence and concern to whoever contemplating a takeover of the collateral assets.
Other cases less relevant: In the past, one way to deal with the issue was for banks to lend to shareholders of the existing collateral asset owners for them to payback investors, with explicit or implicit local government guarantees. Shangdong Hailong’s potential default on bond was avoided this way last year. However, in the current case, the owner has been arrested for illegal fund raising, making the past precedence less applicable.
Putting all the above reasons together, we think there is a high probability for CEQ1 to default on 31 January, i.e. no full redemption of principal and backcoupon on the day.
Immediate impact would be for China rates curve to flatten
The case has been widely covered in the media. However, many still believe one way or the other the involved parties will find a last minute solution to fully redeem the maturing debt. So if the trust is not paid, we believe it will be a big shock to the market.
China rates market reaction, however, might not be straightforward. On the one hand, default would likely lead to risk-averse behavior, arguing for lower rates. On the other hand, market players would likely hoard cash in such an event, leading to tighter liquidity condition and pushing money rates higher.
We think that both movements are likely to ensue initially, meaning higher repo/SHIBOR rates and lower CGB yield if default were to realize. We suggest positioning likewise by paying 1y IRS and long 5y CGB. On the swap curve itself, we think the immediate reflection will be a bear flattening move.
Interestingly, an informal survey conducted on WeChat among finance professionals suggests the same kind of repo rate reaction (Chart 1). We think this survey is important because we believe these investment professionals will likely behave accordingly because the default event is not priced in and hard to hedge a priori.
Trust company can’t have their cake and eat it too
Of course, we can’t rule out that the involved parties do find a solution to avoid default. However, with a case as clear cut to us as this one favoring default, we believe such outcome would send a strong signal to investors that the best investment is to buy the worst credit.
Thus, we believe the near term market reaction with no default would be for the AA credit to shine brightly since this segment has been under pressure for quite some time. Trust investment would be met with enthusiasm and trust assets would likely expand further.
However, we see a fundamental problem in the industry; the leverage ratio has gone to a level which requires investors and trust companies to answer some serious questions: will trust company stand back behind every trust investment or will trust company have to default on some or potentially many of them? We believe the question needs an answer because the trust companies can’t have their cake and eat it too.
For the industry, the AUM/equity ratio has nearly doubled from 23 to 43 in less than three years during the period of 4Q2010 to 3Q2013 (Chart 2). Some in the industry has argued that one should only count the collective trusts since other trusts are originated by non-trust players like banks. Thus, trust companies have no responsibility for paying investors other than collective trusts.
We see two problems.
Even if we accept the trust companies’ argument, it is still questionable whether trust companies would be able to pay even a reasonable amount of default. The growth of leverage on collective trusts was much more aggressive. Collective trust AUM/equity ratio was 2.7 in 1Q2010 and 4.7 in 4Q2010 (Chart 2). It rose to 10 by 3Q2013, more than doubled in less than three years and more than tripled in less than four years. Along the way, the average provision has dropped from 84bp to 34bp when measured against collective AUM.
As the case of CEQ1 illustrates, as long as full redemption is on the table, no involved party could walk away totally clean. CEQ1 is a case of collective trust, but the ICBC still faces the pressure to pay. If the bank is being pressured to pay in the case of collective trust default, trust companies will likely be pressured to pay as well should some non-collective trusts get into trouble. If trust companies are on the line for the total AUM, their financial condition is even shakier, with average provision covering barely 7bp of total AUM as of 3Q2013.
On longer term market trend
Based on the analysis in the above section, we see a possibility for trust companies to have to let some trust products default with such high leverage and so few provisions. This is especially likely the case given that there will be more and more trust redemption this year and next year as a result of the fast expansion of this industry over the last couple of years and short duration of such products.
The heaviest redemption in collective trusts this year will arrive in the 2Q (Chart 3). Given that the financial system is stretched thin and there were more cases of near defaults on smaller amount of redemption last year (three cases in December alone), we believe some form of default is almost inevitable in the near term.
The potential first default, even if it’s not CEQ1 on 31 JANUARY, would be important based on the experience of what happened to the US and Europe; the market has tended to underestimate the initial event. Over the last year, China appeared to be mirroring what happened in the US during 2007, the spike of money rate (much higher repo/SHIBOR), the steepening of money curve (14d money much more expensive than overnight and 7d), and small accidents here and there (junior tranches of a few wealth management products offered by Haitong Securities losing more than 60%, a few small trusts and now CEQ1’s redemption difficulty).
Theoretically, China’s risk is best expressed using a China related instrument, but we also think the more liquid expression of China goes through the south pacific. The following points list our longer views on China and Australia rates.
- We have liked using Australia rates lower as a way to express our China concern and we continue recommending doing so as a theme.
- We recommend long CGB and underweight credit product. The risk for such positioning in the near term is no CEQ1 default. But we believe any pain suffered due to overt market manipulation to avoid default will be short lived since it has become much harder to keep the debt-heavy system in balance and the credit spread is bound to widen.
- After a brief flattening on CEQ1 default, we see swap curve steepening as being more likely on more default threatening growth leading to easy monetary policy and more issuance going to the bond market.
- We look for higher CCS rates due to the fact that the currency forward will more likely start expressing the risk.
As Michael Pettis, Jim Chanos, Zero Hedge (numerous times), George Soros, Barclays, and now BofAML have explained… Simply put –
“There is an unresolved self-contradiction in China’s current policies: restarting the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years.”
The “eerie resemblances” – as Soros previously noted – to the US in 2008 have profound consequences for China and the world – nowhere is that more dangerously exposed (just as in the US) than in the Chinese shadow banking sector.
Is China’s economy headed for a crash? | azizonomics
Is China’s economy headed for a crash? | azizonomics.
In his assessment of the global economy’s performance 2013, legendary financier George Soros warned of dangers in the Chinese economy:
The major uncertainty facing the world today is not the euro but the future direction of China. The growth model responsible for its rapid rise has run out of steam.
That model depended on financial repression of the household sector, in order to drive the growth of exports and investments. As a result, the household sector has now shrunk to 35 percent of GDP, and its forced savings are no longer sufficient to finance the current growth model. This has led to an exponential rise in the use of various forms of debt financing.
There are some eerie resemblances with the financial conditions that prevailed in the U.S. in the years preceding the crash of 2008. [Project Syndicate]
That, as William Pesek notes, is a rather ominous conclusion. So is China due a crash?
Uruguay Legalizes Pot Trade, But Who “Uses” The Most? | Zero Hedge
Uruguay Legalizes Pot Trade, But Who “Uses” The Most? | Zero Hedge.
“The attitudes toward cannabis are shifting rapidly,” says a former DEA-agent-turned-pot-growing-company-lawyer, adding that “the potential social and financial returns are enormous.” As ironic as that maybe, perhaps it is why Uruguay has just become the first nation in the world to allow its citizens to grow, buy and smoke marijuana. As Reuters reports, the pioneering government-sponsored bill establishes state regulation of the cultivation, distribution and consumption of marijuana and is aimed at wresting the business from criminals. “Our country can’t wait for international consensus on this issue,” said one politician as demand is rising globally as the following chart shows…
DEA Agent becomes Pot-growing-firm lawyer… (via The Atlantic):
Patrick Moen is a 36-year-old former supervisor at the U.S. Drug Enforcement Agency, where, until recently, he led a team based in Portland that fought methamphetamine and heroin traffickers.
Now, he is embarking on a career change. A rather dramatic one. The Wall Street Journal reports today in a delightful article that Moen has become the in-house lawyer at Privateer Holdings Inc., “a private-equity firm that invests solely in businesses tied to the budding legal marijuana industry.”
In other words, the revolving door between business and government just made an unexpected, and very druggy, turn.
“The potential social and financial returns are enormous,” Moen told the Journal said of his new business. “The attitudes toward cannabis are shifting rapidly.”
Indeed they are.
As Uruguay appears to show (via Reuters):
Uruguay’s Senate is expected to pass a law on Tuesday making the small South American nation the world’s first to allow its citizens to grow, buy and smoke marijuana.
The pioneering government-sponsored bill establishes state regulation of the cultivation, distribution and consumption of marijuana and is aimed at wresting the business from criminals.
Cannabis consumers would be allowed to buy a maximum of 40 grams (1.4 ounces) each month from state-regulated pharmacies as long as they are over the age of 18 and registered on a government database that will monitor their monthly purchases.
Uruguayans would also be allowed to grow up to six plants of marijuana in their homes a year, or as much as 480 grams (about 17 ounces). They could also set up smoking clubs of 15 to 45 members that could grow up to 99 plants per year.
The bill, which opinion polls show is unpopular, passed the lower chamber of Congress in July and is expected to easily pass the Senate on the strength of the ruling coalition’s majority.
“Our country can’t wait for international consensus on this issue,” Senator Roberto Conde of the governing Broad Front left-wing coalition
Rich countries debating legalization of pot are also watching the bill, which philanthropist George Soros has supported as an “experiment” that could provide an alternative to the failed U.S.-led policies of the long “war on drugs.”
“This development in Uruguay is of historic significance,” said Ethan Nadelmann, founder of the Drug Policy Alliance, a leading sponsor of drug policy reform partially funded by Soros through his Open Society Foundation.
“Uruguay is presenting an innovative model for cannabis that will better protect public health and public safety than does the prohibitionist approach,” Nadelmann said.
But who is “using” the most…
So USA is #1 in something!!
How Isaac Newton went flat broke chasing a stock bubble
How Isaac Newton went flat broke chasing a stock bubble.
How Isaac Newton went flat broke chasing a stock bubble
December 10, 2013
[Editor’s Note: Tim Price, Director of Investment at PFP Wealth Management and frequent Sovereign Man contributor is filling in for Simon today.]
For practitioners of Schadenfreude, seeing high-profile investors losing their shirts is always amusing.
But for the true connoisseur, the finest expression of the art comes when a high-profile investor identifies a bubble, perhaps even makes money out of it, exits in time – and then gets sucked back in only to lose everything in the resultant bust.
An early example is the case of Sir Isaac Newton and the South Sea Company, which was established in the early 18th Century and granted a monopoly on trade in the South Seas in exchange for assuming England’s war debt.
Investors warmed to the appeal of this monopoly and the company’s shares began their rise.
Britain’s most celebrated scientist was not immune to the monetary charms of the South Sea Company, and in early 1720 he profited handsomely from his stake. Having cashed in his chips, he then watched with some perturbation as stock in the company continued to rise.
In the words of Lord Overstone, no warning on earth can save people determined to grow suddenly rich.
Newton went on to repurchase a good deal more South Sea Company shares at more than three times the price of his original stake, and then proceeded to lose £20,000 (which, in 1720, amounted to almost all his life savings).
This prompted him to add, allegedly, that “I can calculate the movement of stars, but not the madness of men.”
The chart of the South Sea Company’s stock price, and effectively of Newton’s emotional journey from greed to satisfaction and then from envy and more greed, ending in despair, is shown above.
A more recent example would be that of the highly successful fund manager Stanley Druckenmiller who, whilst working for George Soros in 1999, maintained a significant short position in Internet stocks that he (rightly) considered massively overvalued.
But as Nasdaq continued to soar into the wide blue yonder (not altogether dissimilar to South Sea Company shares), he proceeded to cover those shorts and subsequently went long the technology market.
Although this trade ended quickly, it did not end well. Three quarters of the Internet stocks that Druckenmiller bought eventually went to zero. The remainder fell between 90% and 99%.
And now we have another convert to the bull cause.
Fund manager Hugh Hendry has hardly nurtured the image of a shy retiring violet during the course of his career to date, so his recent volte-face on markets garnered a fair degree of attention. In his December letter to investors he wrote the following:
“This is what I fear most today: being bearish and so continuing to not make any money even as the monetary authorities shower us with the ill thought-out generosity of their stance and markets melt up. Our resistance of Fed generosity has been pretty costly for all of us so far. To keep resisting could end up being unforgivably costly.”
Hendry sums up his new acceptance of risk in six words: “Just be long. Pretty much anything.”
Will Hendry’s surrender to monetary forces equate to Newton’s re-entry into South Sea shares or Druckenmiller’s dotcom capitulation in the face of crowd hysteria ? Time will tell.
Call us old-fashioned, but rather than submit to buying “pretty much anything”, we’re able to invest rationally in a QE-manic world by sailing close to the Ben Graham shoreline.
Firstly, we’re investors and not speculators. (As Shakespeare’s Polonius counselled: “To thine own self be true”.)
Secondly, our portfolio returns aren’t exclusively linked to the last available price on some stock exchange; we invest across credit instruments; equity instruments; uncorrelated funds, and real assets, so we have no great dependence on equity markets alone.
Where we do choose to invest in stocks (as opposed to feel compelled to chase them higher), we only see advantage in favouring the ownership of businesses that offer compelling valuations to prospective investors.
In Buffett’s words, we spend a lot of time second-guessing what we hope is a sound intellectual framework. Examples:
- In a world drowning in debt, if you must own bonds, own bonds issued by entities that can afford to pay you back;
- In a deleveraging world, favour the currencies of creditor countries over debtors;
- In a world beset by QE, if you must own equities, own equities supported by vast secular tailwinds and compelling valuations;
- Given the enormous macro uncertainties and entirely justifiable concerns about potential bubbles, diversify more broadly at an asset class level than simply across equity and bond investments;
- Given the danger of central bank money-printing seemingly without limit, currency / inflation insurance should be a component of any balanced portfolio
- Forget conventional benchmarks. Bond indices encourage investors to over-own the most heavily indebted (and therefore objectively least creditworthy) borrowers. Equity benchmarks tend to push investors into owning yesterday’s winners.
In the words of Sir John Templeton,
“To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward.”
So be long “pretty much everything”, or be long a considered array of carefully assessed and diverse instruments of value. It’s a fairly straightforward choice.
Why Does The Mainstream Media Like To Make Fun Of Preppers So Much?
Why Does The Mainstream Media Like To Make Fun Of Preppers So Much?.
This article was written by Michael Snyder and originally published at The American Dream
Have you noticed that the mainstream media has a tremendous amount of disdain for preppers? Even though there are now approximately 3 million preppers in the United States, most of the time the media ignores us. But once in a while an editor in New York City or Los Angeles decides that it would be fun to do a story about the “crazies” that are preparing for doomsday.
And of course it is very rare for any piece in the mainstream media about preppers to be even close to balanced reporting. Most of the time, news stories that report on preppers portray them as mentally unstable kooks and loons that everyone else in society should be laughing at. But perhaps there is a deeper explanation for the contempt that the mainstream media has for preppers.
After all, those in the media are representatives of the establishment, and they are probably deeply offended on some level that we don’t have the same kind of blind faith in the system that they do. The fact that so many Americans believe that the system is on the verge of collapse doesn’t make any sense to them, and instead of really looking into the truth of what we are saying, they would much rather dismiss us by labeling all of us a bunch of uneducated nutjobs on the fringe of society.
A few days ago, I came across another example of this demonization of preppers by the mainstream media. The following are a few lines from a recent CNN article entitled “What I saw at the doomsday prepper convention“. For the first few paragraphs the piece actually seems fairly balanced, but by the end of the article the author can’t resist openly mocking preppers and what many of them believe. Just check out these zingers…
-“It’s so much more fun to worry about martial law than a hurricane. People like zombies as a marketing tool.”
-“I spot more than a few zombie-themed rifle targets at the show.”
-“Still, it was impossible to completely ignore the presence of an element many would consider reactionary.”
-“After a relatively measured primer on the threats of inflation, featured economist Dr. Kirk Elliot encouraged me to look into how the Rothschild and Rockefeller families continue to own the Federal Reserve.”
-“Finally, at the end of my conversation with John Egger about the rise of ‘suburban homesteading,’ a man with a white shock of hair interjected himself into the conversation. ‘You know what chemtrails are?’ he asked, referring to another conspiracist trope that sees chemical tampering in jetstream vapor trails. ‘They’re changing the weather, then selling drought tolerant seeds. George Soros and Bill Gates are behind it.’ Egger nodded politely and smiled, tolerant of a potential customer’s eccentricities.”
-“While normalcy and centrism may be the goal for businesspeople like Cindy and Jim Thompson, it seems the preparedness lifestyle hasn’t completely shaken loose its extremists and kooks.”
And of course this is hardly an isolated example of prepper bashing. The following is an excerpt from a Los Angeles Times review of the Doomsday Preppers television show on the National Geographic channel…
Still, it’s hard not to feel for young Jason from tiny Plato, Mo. (pop. 109), who is awaiting worldwide financial collapse with his homemade, nail-studded “mace-ball bat,” and that his is a life on the verge of going completely wrong. “I’m not afraid to have to kill,” Jason says, in his camouflage pants and dog tag, and there seems to be no question in his mind that it will come to that. (“Jason has always been a worrywart,” says his mother.)
Or for Big Al, from Nashville, who is getting ready for old-school nuclear war by digging down into the earth and surrounding himself with steel. (“I prefer not to use the term ‘bunker’ — to me, it’s an underground house.”) He spends months at a time by himself down there, training for the inevitable — which he expects to weather alone — cooking different combinations of canned goods and, you know, spending too much time alone. One leg pumps constantly as he talks.
The preppers don’t want my pity, of course — quite the opposite, I’m sure. The joke will be on me, they would say, when I am expiring from fallout or smallpox, being carried away in a tornado or torn apart by the hungry ravaging hordes. (I am not even prepared for the Big Earthquake that might more probably get me.)
Would the Los Angeles Times mock other groups of Americans in a similar manner?
I think not.
Meanwhile, as the mainstream media continues to mock us, there is a perfect example of why we should all be prepping that is unfolding right in front of our eyes. The most destructive typhoon in the history of the Philippines is showing just how rapidly society can completely fall apart in the event of a major disaster…
The cries of the suffering carried through a small, cramped one-story clinic in typhoon-ravaged Tacloban where the medicine was all but gone Thursday, but the number of wounded in the hard-hit Philippine city continued to grow.
The clinic at the airport in the decimated capital city of Leyte province is one of the few places where those injured in Super Typhoon Haiyan and its aftermath can turn for help, what little help there is six days after the storm.
“We don’t have any medicines. We don’t have any supplies. We have IVs, but it’s running out,” Dr. Katrina Catabay told CNN.
“Most of the people don’t have water and food. That’s why they come here. Most of the kids are dehydrated. They are suffering from diarrhea and vomiting.”
Most Americans assume that if anything like this ever happened here that the federal government would rush in and rescue them.
But what if the government didn’t come to rescue you?
Past disasters such as Hurricane Katrina have long since faded from the memories of many Americans. How quickly we forget the lessons that we should have learned from past tragedies.
And what if there is an event such as a massive EMP blast that causes public services to go down permanently?
What would you do?
In the Philippines, there is widespread looting and rioting even though this natural disaster is only temporary and governments from all around the world are rushing in to offer assistance…
TV reports said security forces exchanged fire with armed men amid widespread looting of shops and warehouses for food, water and other supplies in the village of Abucay, part of worst-hit Tacloban in Leyte province.
While eight people were crushed to death when looters raided rice stockpiles in a government warehouse in the town of Alangalang, causing a wall to collapse, local authorities said.
Other looters still managed to cart away 33,000 bags of rice weighing 110 lb each, said Orlan Calayag, administrator of the state-run grain agency National Food Authority.
Warehouses owned by a food and drinks company were ransacked in the storm-hit town of Palo in Leyte, along with a rice mill in Jaro, said Alfred Li, head of the Leyte Chamber of Commerce and Industry.
Tacloban city administrator Tecson John Lim said 90 percent of the coastal city of 220,000 people had been destroyed, with only 20 percent of residents receiving aid. Houses were now being looted because warehouses were empty, he said.
If you don’t think that anything like this could ever happen here, you are just being delusional. Americans are not any better than those living in the Philippines. When something really, really bad happens in the heart of the United States, we will see mass panic and fear here too.
And most Americans are completely and totally unprepared for even a minor emergency…
–44 percent of all Americans do not have first-aid kits in their homes.
–48 percent of all Americans do not have any emergency supplies stored up at all.
–53 percent of all Americans do not have a 3 day supply of nonperishable food and water in their homes.
So instead of making fun of preppers, perhaps the mainstream media should be encouraging more people to prepare for future emergencies.
Someday major disaster will strike this nation, and when that happens it will be the preppers who will have the last laugh.
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