CRISIS COVERAGE REPORT
BAILOUTS, MERGERS, CORRUPTION
EXTENDED BREAKDOWN ANALYSIS


* Critical Tidbits
* British Petroleum Oil Volcano Disaster
* Centralization Interrupted
* Narco Barons & US Prestige


HAT TRICK LETTER
Issue #75
Jim Willie CB, 
“the Golden Jackass”
13 June 2010

"Ionizing radiation like the X-rays used in those [new airport] scanners can induce chromosome damage. The radiation level is 20 times greater than official estimates." -- David Brenner (Columbia University Center for Radiological Research)

"It may be true that the Banksters are scared. But it seems to me they are just continuing with their globalist agenda which is to turn America into a Third World nation and then buy up the assets and resources. So far they have nearly got the first part of the agenda done. Soon they will bankrupt the nation and then they will force America to sell itself cheap to transnational corporations." -- Grant Lawrence (Bodhi Thunder)

"One oil rig goes down and we are going to be rolling in dough. Suck it, fishies and birdies!" -- Fabrice Tourre (Goldman Sachs VP, said one day before the BP Deepwater Horizon oil rig explosion and giant spill, in an email to his girlfriend)


"If you compare the damage inflicted on the economies of the Western world by polluted securities from the irresponsible unchecked greed and avarice of leading USA international banks, there has not been the same personalized response in or from countries beyond the US." -- John Napier (Chairman of RSA Group, a British insurance firm, referring to BP criticism)

CRITICAL TIDBITS

◄$$$ THREE NEW WELLHEAD EXPLOSIONS ROCKED THE ENERGY WORLD IN THE LAST TWO WEEKS. NORTHWEST PENNSYLVANIA SUFFERED AN OIL, GAS & CHEMICAL EXPLOSION. TEXAS SUFFERED TWO GAS LINE EXPLOSIONS, ONE WHEN AN ELECTRICITY MAIN WAS PENETRATED. $$$

A giant explosion at a natural gas well in Northwest Pennsylvania resulted in a release of a million gallons of oil and nasty chemicals mixed with water. According to the Associated Press, a shower of gas mixed with toxic chemicals shot 75 feet into the air. The vertical spew continued for 16 hours. The accident was so severe that the high radius area was evacuated and the Federal Aviation Admin prohibited flights over the area. Despite the horrific events, no photos were possible because EOG Resources, the owner of the wells, blocked camera crews, threatened to shoot or arrest trespassers, and intimidated film crews with big thugs. It was a huge accident that could potentially contaminate of waterways leading to the Susquehanna River and Chesapeake Bay. Appeals have gone to Governor Ed Rendell and the USDept Environmental Protection to use their offices to pressure for access to the spill site to the media, environmental organizations, and the local population. The people are affected nearby. See the Daily Kos article (CLICK HERE).

A massive explosion on a natural gas line in Granbury Texas resulted in a raging fireball visible 30 miles from the site. The blast killed 3 people, injured 6, while 10 are missing. The pipeline is owned by Enterprise Products Partners, which shut the 36-inch natural gas pipeline that stretches from Waha in West Texas to the Carthage Hub in Panola Texas. Reports indicate a work crew on a nearby electrical line accidentally triggered the explosion. An emergency services spokesman in Hood County Texas claimed an electrical crew was digging a hole when it struck the gas pipeline. See the Zero Hedge article (CLICK HERE).

A related weblog from the ZH article features Colonel Cooper, a fellow apparently with vast electrical line experience. He defends the electrical crew, and claims accidents and funerals do happen, even when crews work fully within safety compliance. He mentions global positioning systems that attempt to isolate the exact locations of risk underground. Colonel Cooper wrote, "First of all, Trimble GPS coordinates actually give readings much more accurate than 100th of a foot. But there are too many variables. When was this line built? If it is much more than a decade or so old (probable), the GPS coordinates were not taken as part of the as-built, but are actually extrapolated off weld measurements and pig data, and are notoriously innaccurate. I have personally dug up pipelines based on GPS coordinates, and been nearly 2500 feet off. Secondly, How do you know they did not dig into an abandoned farm tap? Been there, and it is scary shxx. How do you know there was not an equipment failure? Thirdly, there had to either have been an open system, or badly weakened pipe in order for there to have been gas present in the first place. I have seen hoe buckets bounce off pipe hard enough to make football size dents. The stuff does not just rupture and explode. Fourth, and most importantly, I do not give a hoot whether you have GPS, the greatest line locator in the world, or a pair of witching sticks. You do not pay them two seconds of nevermind until you have felt the pipe with a probe rod, or dug it up by hand. Pipelining is dangerous work. Accidents happen, period. Do not go spouting off about corner cutting [by line crews] until you have found out what actually happened. Because I have been to funerals where there were not any corners cut, none!" Some expletives were altered for better flow.

Another Texas natural gas line explosion occurred the following day as the Granbury incident. The other explosion occurred near Darrouzet Texas, in the remote part of the Panhandle (by Oklahoma). The blast struck about 270 miles northeast of Lubbock. No reports of casualties yet, although several people have been reported missing. See the Zero Hedge article (CLICK HERE) but the story is still incomplete. This is starting to really not look good for the President's clean energy initiative.

A fourth event occurred, a freak event caused by a lightning strike of a gasoline storage facility in Greensboro North Carolina. A large container was ablaze Sunday morning, the day of this posting. The nation is pocked by accidents. Something highly unusual is going on!!

◄$$$ GOLDMAN SACHS FACES A THIRD INVESTIGATION ON ITS TOXIC BOND SALES. A FOREIGN BASED LAWSUIT CAME FROM AUSTRALIA OVER THE HUDSON C.D.O. PIECE OF FINANCIAL GARBAGE. SOON ALMOST ALL SUCH BONDS SOLD BY GOLDMAN WILL BE THE OBJECT OF CIVIL OR CRIMINAL BATTLES. $$$

The court battle started with Abacus, then Timberwolf, now Hudson Mezzanine. Soon almost every Collateralized Debt Obligation bond sold by Goldman Sachs will be in court dispute. The Financial Times has reported that the SEC has launched yet another investigation into Goldman Sachs, related to its $2 billion Hudson Mezzanine Funding CDO. The fund featured prominently in an 11-hour grilling of Goldman executives before a US Senate hearing in April. GSax dispatched its well-heeled sociopathic sales executives like VP Tourre to Asia and Australia to unload their junk. GSax typically hedges to protect against underwriting, and walk away with significant exotic contracts in opposition to their client positions. Like others, GSax profited heavily from the CDSwap insurance contract side, after the bonds were trashed within 18 months. The Australian Basis Yield Alpha sued Goldman for failing to "disclose material information knowing that, by this omission, information that they did disclose was rendered misleading." These lawsuits open the door for other investors who purchased a CDO directly from Goldman as a primary issuer.

Ironically, GSax is soon to conduct an Initial Public Offering (IPO) of the largest corporate litigation firms in the United States. Imagine the investment banker fees to GSax paying for lawsuit awards from lost cases. Zero Hedge has a great quote, saying "While completely impossible, the mutual conflicts of interest in the risk factors of such a prospectus would make for a comic book all on its own." Just one court loss or plaintiff settlement would lead to a parade of demands for partial remuneration, and Goldman would have to pay up. See the Zero Hedge article (CLICK HERE).

◄$$$ FOMENTING CRISIS OR EXPLOITING CRISIS PROVIDES A FOUNDATION IN POLITICAL OPPORTUNITY TOWARD RADICAL CHANGE AND SYSTEMIC SHIFTS. CHAOS CAN BE USED TO ACHIEVE RADICAL POLITICAL GOALS. CHECK THE SO-CALLED CLOWARD-PIVEN STRATEGY FOR POLITICAL OPPORTUNISM. REFER TO 911 AND THE PATRIOT ACT AS QUINTESSENTIAL EXAMPLE. $$$

Stuart Tarlowe is a personal contributor who put forth a controversial and provocative post on the American Thinker blog. He cited the Cloward-Piven Strategy, a theory developed by two Columbia University sociology professors. It describes how political and economic chaos can be exploited to achieve the radical desires and goals of a political group. When viewed through this lens, what the rest of the nation views as a political disaster for Obama could be an opportunity instead. One can only infer complicity by political architects to pave the road with key events, almost perfect events. The Chinese call crisis an opportunity, and the theory delineates it. Tarlowe wrote, "Do not be fooled by Obama's incompetence. If you think the Gulf oil spill spells trouble for Obama, you are just not looking at as big a picture as he is looking at. You just do not realize how much trouble we are all in... If the oil spill in the Gulf manages to destroy the fishing and tourist industries in that region, shut down oil drilling, raise the price of oil and of food all over the country, and bring more and more Americans to a financial breaking point and thus dependent on food stamps and other government programs, Obama & Co will smile and nod at one another." Tarlowe maintains a very cynical viewpoint, but probably based in reality far more than we know, at least for the 911 events and probably many more corrollary events. It also might explain a motive for any syndicate participation in creating or worsening the Oil Volcano disaster in the Gulf of Mexico.

A quick observation of Obama behavior indicates that Tarlowe may be on the right track. The president reiterated his Cap & Trade objectives two weeks ago, after a moratorium on off-shore oil drilling in the Gulf of Mexico was declared. The USCongress did not cast a vote. Obama spoke also of ending tax breaks for Big Oil, and granting incentives to Big Environmentalists with aims to harnass alternative energy. However, the President frames the move to alternative energy within the false global warming initiatives. At a recent speech at my alma mater Carnegie Mellon University, Obama said, "The only way the transition to clean energy will ultimately succeed is if the private sector is fully invested in this future, if capital comes off the sidelines and the ingenuity of our entrepreneurs is unleashed. The only way to do that is by finally putting a price on carbon pollution. The House of Representatives has already passed a comprehensive energy and climate bill. There is currently a plan in the Senate, a plan that was developed with ideas from Democrats and Republicans, that would achieve the same goal. And, Pittsburgh, I want you to know, the votes may not be there right now, but I intend to find them in the coming months." This is not good news. The Cap & Trade Bill and its movement to exact a tax on all of industry and homes forms a potent diverse levy directed once again to the Ruling Elite who control governments, banks, press networks, and more. They wish to tax the air we breathe, loaded with carbon dioxide, in the grandest scam of all following the housing & mortgage scam, capped off by the TARP extortion, concurrent with the narcotics wars. Tarlowe concludes that if Obama is indeed following the Cloward-Piven strategy, he will use the BP Oil Volcano crisis to his advantage by forcing the passage of the ruinous (in his words) Cap & Trade Bill through the Senate before the November elections. See the Washington Examiner article (CLICK HERE).

◄$$$ ABSURD WASTE ON SECURITY AT THE BANKER SUMMIT MEETINGS IN CANADA, WHERE OVER $1 BILLION IS SQUANDERED IN A BEWILDERING MANNER. $$$

The Conservatives in the new Canadian Govt say the nearly $1 billion it plans to spend on security at the G-8 and G-20 summits later in June is worth the expense. They are lunatic. Canada has budgeted up to $930 Canadian (US$885 million) for the summits. By comparison, the stated amount spent by Pittsburgh on security for last September's G-20 summit was a mere $12.4 million. London's stated amount for the G-20 security last year was a mere $10.9 million. See the Yahoo News article (CLICK HERE). One must wonder what on earth Quebec has planned, like experimental devices and whizbang Big Brother monitors, or just a slush fund to some Blackwater types.

◄$$$ THE GLOBAL FINANCIAL CRISIS IS FLOURISHING, EVENTS ARE MUSHROOMING, AND SHARKS ABOUND. THE DISASTER HAS CIRCULAR MECHANISMS. VISIBLE SOLUTIONS BY OFFICIALS IN POSITIONS OF AUTHORITY ARE NOWHERE. SLOWLY, GOLD IS BEING RECOGNIZED AS PART OF THE SOLUTION. $$$

The credit crisis has spread thoroughly from banks to governments. The solutions remain illegitimate, lethal, and foolhardy. The USGovt is printing money with abandon, packaging it in bonds of many types, setting up channels of diverse types. The lion's share of aid goes to the big banks who are the most responsible for creating the credit crisis and banking system breakdown. Circular pathways result in the big banks buying tremendous blocks of USTreasury Bonds. They earn a lazy man's profit from basic carry trade, borrowing cheap on the short term and investing for the higher yield on the long term. The US Federal Reserve actively discourages credit flow to the USEconomy, encouraging banks to place the bonds in the USFed accounts, earning interest. This is Elite Constipation Extraordinaire! Meanwhile, attacks of the credit markets are accelerating as sovereign debt is crumbling worldwide. The monetary system is underpinned by sovereign debt. Hence, the global monetary system, complete with the major currencies, is being discredited and is suffering grotesque dysfunction, even as confidence is eroding fast. The solution is GOLD, for both monetary systems and wealth preservation, even personal savings. The cartoon says it well, as bankers and even governments are fish food in the future. It is my belief that the players have noticed the sharks.

◄$$$ THE SAUDI ROYAL FAMILY HAS BEEN WARNED BY A SAUDI EX-PAT PRINCE IN EGYPT TO EXIT THE DESERT KINGDOM BEFORE AN INTERNAL REVOLUTION. COMPARISONS ARE MADE OF THE FATE OF SADDAM HUSSEIN IN IRAQ AND THE SHAH OF IRAN. THE ROYALS ARE URGED TO ESCAPE BEFORE THE TUMULT, OF COURSE WITH ALL THE MONEY THEY COMMANDEERED FROM THEIR POSITION OF POWER. $$$

A warning comes from Saudi Prince Turki bin Abdul Aziz Al Saud, former head of Saudi Intelligence and also a former Ambassador to the United States. The story seems legitimate. The source is highly credible and the warning makes sense. Prince Turki has warned the country's royal family to flee the country before a military coup or a popular uprising overthrows the kingdom, complete with executions of royals. He warns Saudi Arabia of an apocalypse, from his location in Cairo. He advises Saudi officials to escape with their families. In a public letter published by the Wagze news agency last week, Prince Turki warned Saudi Arabia's ruling family of a fate similar to that of Iraq's executed dictator Saddam Hussein and the ousted Shah Mohammad Reza Pahlavi (infamous Shah of Iran). He called on them to escape before people "cut off our heads in streets" in graphic terms familar to Arab nations. That is their standard form of capital punishment, not firing squads, not hangings. He warned that the Saudi royal family is no longer able to impose itself on people, in his words. He argued that deviations in carrying out the religious concepts that make up the basis of the Saudi government have gone out of control. He refers to the Saudi Royals departing immensely from Islamic principles in the eyes of Wahabi fundamentalists. He wrote, "[The opposition views our acts as] interfering in people's private life and restricting their liberties. If we are wise, we must leave this country to its people, whose dislike for us is increasing. Do it today before tomorrow as long as the money we have is enough for us to live anywhere in the world, from Switzerland to Canada and Australia& We should not return as long as we are able to get out safely. We must take our families quickly and pull out. Do not fool yourself by relying on the United States or Britain or Israel, because they will not survive the loss. The only door open is now the exit door of no return. Let us go before it closes. No one will attack us from outside, but our armed forces will attack us." That final comment is a direct warning of a military coup against the ruling family. Islamic fundamentals are gaining power and alliances inside Saudi Arabia, even as resentment grows for the extreme wealth, the lavish palaces & lifestyle, the appropriation schemes, and the sexual playgrounds in the desert.

Prince Turki is a member of the liberal Free Princes movement founded in the 1950s during tensions between King Faisal and his brother King Saud. The group's leaders requested the Saudi authorities to implement political reforms and set out to forge a Constitution, in order to establish civil rights to the Saudi people. The late King Faisal expelled members of the group to Egypt but later pardoned them. Democracy and liberties have never sat well with the Saudi royals, who for almost two generations have allied strongly with the United States. It is all about the oil wealth, cornering it and guaranteeing supply. See the PressTV article (CLICK HERE).

BRITISH PETROLEUM OIL VOLCANO DISASTER

◄$$$ BRITISH PETROLEUM HAS A LONG RECORD OF SAFETY VIOLATIONS AND IMPOSED FINES, A CLEAR LEADER IN THE FIELD. SINCE 2005, B.P. HAS PAID THE USGOVT ALMOST $500 MILLION IN FINES & SETTLEMENTS TOWARD SAFETY VIOLATIONS. THEIR VIOLATIONS CONTINUE, MERE COSTS IN THE BUSINESS EQUATION. $$$

In the last ten years, BP has had over 700 safety violations, each with some fine imposed. Their crimes against workers and the ecosystem are ledger items in their cost structure, and items in project equations. My firm expectation is that the toal cost from the Gulf of Mexico disaster will easily top $200 billion. By comparison, the number of safety violations is one by Exxon Mobil and two by Citgo in the same ten year period. That is not one hundred or two hundred, but one and two.

Transocean operates 141 oil rigs worldwide. They manages the BP Deepwater Horizon rig owned by British Petroleum, the origin of the massive oil volcano gusher (hardly a leak) and site of 11 deaths to rig workers. Transocean operates 15 other oil rigs in the Gulf of Mexico, but pays no royalty to the USGovt for the projects. BP has paid out sizeable fines and legal settleme nts. Since 2005, BP has paid the USGovt $485 million in fines and settlements for what the courts declared to be "willful neglect of worker safety rules and penalties for manipulating energy markets." Tyson Slocum is director of energy for Public Citizen, a citizen advocacy group that emphasizes how BP is the most heavily fined energy company in the United States. He said, "We need to consider whether or not [BP's] Corporate Charter in the United States needs to be revoked. We need to consider whether or not its rights to win leases on public lands should be revoked. We need to get tough on corporations that fail to comply with US laws and regulations." No way, even more! The people of the United States need to shut down BP, end their projects offshore in US waters, and seize its entire assets.

Let's cover the British Petroleum track record. In 2009, BP paid $87.4 million for a single Occupational Safety & Health Administration (OSHA) violation for willful negligence that led to the deaths of 15 workers in a 2005 explosion at a Texas refinery. BP handed over $50 million to the USDept Justice (DOJ) for the same crime. Fines, no jail time! In 2006, an oil leak at a BP pipeline at Prudhoe Bay in Alaska led to a $20 million settlement for alleged Clean Water Act violations. Ronald Tenpas works in the US Attorney General office of the DOJ's Environment & Natural Resources Division. He said, "The Texas and Alaska cases illustrate the twin pillars of environmental enforcement: first, protecting human life & health and second, protecting our natural resources. BP cut corners with disastrous consequences for both and is being held to account." In May, the same chronic offender British Petroleum paid a $3 million fine for 42 worker safety violations at a company refinery in Ohio. In fact, BP has been levied two separate felony charge for violating the Clean Air & Water Acts. We observe a revolving door of a serial environmental criminal. No jail time, just monetary costs. Federal fines and court settlements have not put an end to BP's egregious environmental and worker safety violations. Jail time for its executives seems in order, and perfectly fair. Negligent homicide charges are being considered against BP for the Deepwater Horizon blast, perhaps to the site foreman, their company guy. See the TruthOut article (CLICK HERE).


◄$$$ REPORTS OF SOME VERY SHADY STORIES RELATED TO HALLIBURTON HAVE COME FROM ANECDOTAL ACCOUNTS. THEIR MEN WERE ON THE SCENE JUST BEFORE THE EXPLOSION OCCURRED. ONE MIGHT SURMISE OUTRAGEOUSLY THAT HALLIBURTON DETONATED THE BLAST. BUT THAT WOULD BE CRAZY, AND CRIMINAL TOO. $$$

Stories have circulated across the internet webpages about how a team of Schlumberger petroleum engineers advised the BP team on site at Deepwater Horizon to cement the well head due to its irregular late stage instability. The BP team instead listened to Halliburton engineers and continued with the plan to move toward extraction of crude oil, despite the unstable readings. The Schlumberger group departed when ignored, after calling in a helicopter from Houston Texas. They left at their own expense, and even delivered shrill warnings about high risk with great danger. Schlumberger is as responsible, expert, and professional as Halliburton is reckless, corrupt, and willing to call upon expedience for profit.

Within six hours from the Schlumberger team departure, the Deepwater Horizon platform exploded, was engulfed in flames, killing 11 men, sinking the entire rig. Furthermore, a team from Halliburton arrived on the oil rig immediately after the Schlumberger team left, but this Halliburton crew reportedly did not look like oil workers, did not dress like oil workers, had no corporate markers on their gear, talked to nobody on the oil rig, and moved with a clear quick purpose. So goes the anecdotal accounts. The person reporting their description mentioned he was going to inquire whether the men were military types, but no more information came. My personal view is suspicious if not jaded, that the men might have been CIA or Blackwater types setting detonation charges. But that would be a high crime, and crazy. The massive spill developed immediately from the oil volcano that erupted, almost two full months with massive spew, now 55 days, and an estimated 40 to 100 million gallons of crude oil sent into the Gulf of Mexico near the Louisiana coast. The BP corporation is liable for negligent homicide and ecosystem destruction. They were warned but simply proceeded to their next accident from something much worse than a safety violation, a reckless endangerment and grotesquely mismanaged oil rig event.

Oil services contractor Halliburton executive Tim Probert admitted a pressure test was conducted after a cementing operation was finished 20 hours before the Deepwater Horizon oil rig explosion occurred. After the test, a decision was made to continue, as work on the well complied with accepted industry practice and federal regulations, the same lax regulations brought on the legal books by former VP Cheney. One must wonder if the event brought him sadness or satisfaction. The sequence of events was laid out in testimony by Probert in a mid-May Congressional hearing. Pending lawsuits claim that Halliburton workers improperly capped the well with wanton negligence, a process known as cementing. See the Huffington Post article (CLICK HERE). The photo is of the Deepwater Horizon oil rig.

One can always count on TBoone Pickens for straight talk. He warns that the massive BP oil leak in the Gulf of Mexico could go on for a year. He points to past experiences with undersea blowouts that took a very long time to extinguish. The installation of multiple relief wells often accomplishes very little. Implied is the story of the Ixtoc oil spill in 1979, which began in June 1979 and continued until March of the following year.

◄$$$ THE PARADE OF LAWSUITS RELATED TO THE OIL RIG EXPLOSION HAS BEGUN. EXPECT THE MOST MAGNIFICENT SPECTACLE PERHAPS IN LEGAL HISTORY. THE LAWSUIT WILL BECOME MIXED WITH THE NEGLIGENT HOMICIDE CASE. FLORIDA HAS DEMANDED A $2.5 BILLION ESCROW FUND TO BE SET UP FOR CLEANUP COSTS. $$$

The victims are organizing, as are governments. Attorney Tony Buzbee has signed on to represent 15 oil rig workers, including dead victim families, along with dozens of shrimp fishermen, seafood restaurants, and dock workers. Buzbee has obtained a three-page signed statement from a crew member on the boat that rescued the workers on the burning oil rig after the deadly explosion. The sailor has not been identified, since doing so would cost him his job. The sailor was present on the ship's bridge when Deepwater Horizon installation manager Jimmy Harrell spoke heatedly with the Houston office via satellite phone. Harrell is a high ranking employee for the oil rig owner Transocean. The magazine Mother Jones learned from Buzbee that, according to this witness account, Harrell was screaming, "Are you fuxxing happy? Are you fuxxing happy? The rig's on fire! I told you this was gonna happen." The lawsuits are certain to escalate. Buzbee is convinced that the Gulf oil volcano lawsuit will be his biggest in history. Buzbee said, "It is the grandaddy of all cases. This is going to define BP and whether BP survives. This is going to be the biggest case in the history of the United States, no doubt about it." See the Atlantic article (CLICK HERE).

The significance of the testimony lies in its verification of the Houston office having prior knowledge of dangerous conditions on the verge of explosion. Obviously, they took no action under the typical BP reckless direction. What Buzbee and numerous other attorneys must realize is that in the previous giant legal case against Exxon Valdez after the Alaskan oil spill, no settlements were made for over ten years. Great disappointment and little satisfaction came. Exxon spent over $200 million in its defense. Worse, some settlements were overturned by the US Supreme Court in railroad style, ugly aid to the big oil firm, leaving the victims with a fraction of the original award. To say the high court is beholden to big business is an understatement. The reversal received little news coverage, like a gut punch in the middle of the night in a blind alley. In this case, British Petroleum is at great risk of being nationalized by the USGovt. They have a mortgage firm (Fannie Mae), an insurance firm (AIG), and a car firm (GM), so an oil firm makes sense in the pattern.

The Florida State Attorney General has demanded a $2.5 billion escrow fund be created by BP. Claims are mounting, as are demands, soon to reach the BP financial structures. Florida AG Bill McCollum announced on his website that he has "sent a letter to BP asking the company to deposit no less than $2.5 billion into an interest earning escrow account, so Florida can be assured of its availability to the state and its citizens and businesses over the long-term recovery period... Based on recent estimates from an economist, Florida could ultimately see losses as great as $2.2 billion, as well as a sharp decline in employment in the industries directly impacted by the Deepwater Horizon oil spill. As Florida braces for what will likely be a staggering blow to its economy with significant impacts to our state workforce and the revenues of the state and local governments, it is essential that BP establish immediately a dedicated escrow account solely for the purpose of paying claims and damages to Florida and its citizens." See the Zero Hedge article (CLICK HERE).

◄$$$ BRITISH PETROLEUM BONDS WERE DOWNGRADED. LIABILITY CEILING IS BOUND BY LAW BUT LIMITLESS IN EFFECT. THE MARKET FIGURES THE HEAVY CLEANUP COSTS AND RELATED LIABILITY WILL TRANSLATE INTO BOND RISK, A CORRECT VIEW. MATURING B.P. BONDS WILL BE DIFFICULT TO REFINANCE. ALMOST HALF OF THEIR BONDS MATURE BEFORE END 2011. ALSO, THEIR STOCK DIVIDEND WILL LIKELY DISAPPEAR. $$$

British Petroleum corporate bonds have fallen sharply as their credit rating is cut. Some analysts interpret the price decline of BP bonds to mean a strong likelihood of default on its debt. The oil company's five-year dollar bond was trading in early June at a yield of 5.5%, a significant premium over USTreasurys. The contrived Goldman Sachs stock comment stabilized the BP stock price, but its bonds continued to fall. The sequence of Keystone Cops failures to block the massive oil flow into the Gulf of Mexico waters has cost effects and liability associations. Rating agencies Moodys and Fitch both cut the BP credit rating last week, with further downgrades threatened. Each agency cut BP's rating by a modest one notch, from Aa1 to Aa2, and from AA+ to AA, respectively.

Fitch cited specific ongoing risks:

  • the current plan to cut the leaking pipeline may actually permanently increase the rate of leakage
  • the relief well being drilled by BP may fail to completely stop the leak quickly
  • total clean-up costs may exceed Fitch's worst case expectations of $5 billion per year
  • the US may require BP to pay for more than just the clean-up (such as benefits for those made unemployed by the oil slick, such as fishermen)
  • the impact of potential criminal charges
  • BP may have to permanently halt drilling activity in the Gulf of Mexico.

A London analyst told the BBC that the bond market fears are illogical, since BP has so little debt. BP has 14 billion Pound Sterling in total debts, whereas its stock market capitalization is 7 to 8 times its debt. Discussion streams over elimination of its dividend, with calls to divert it entirely to cover the oil cleanup costs. See the British Broadcast article (CLICK HERE).

My view is more stern. Recall past forecasts on US bond contagion, US bank insolvency, US housing decline, and Fannie Mae costs. Last week the oil slick hit the Gulf Coast of Florida at Pensacola. Bye bye to the pristine wonderful beaches of Fort Myers, Tampa, Sarasota, Pensacola, and Panama Beach. The better question is whether BP will be charged with negligent homicide. The Deepwater Horizon blast marks the 720th safety violation in the last ten years. My forecast is for an effort to seize all BP assets in criminal prosecution, civil lawsuit, covered cleanup costs, industrial damage to worker income, and class action lawsuits by many parties including environmental groups. In two years it will be clear that the oil spill damage is over $200 billion, when all factors are rolled. That amount is much greater than the BP market capitalization value. In time, the beaches of North Carolina and New Jersey will be hit, and the Georges Bank off Massachusetts will be under threat. We are not likely to see RICO Law application against a syndicate, although BP acts like one where crimes are logged in cost terms.

The BP stock dividend expected for the 2Q2010 will very likely vanish. It pays 1.8 billion British Pounds (=US$2.6 billion) and is the subject of increasing political pressure from the USGovt and President. If Chrysler and the Rattner Doctrine serve as any indication, demands are due soon for BP creditors to realize the next loss. See the chart of the upcoming few years for scheduled principal and interest maturities on the BP debt structure. The total BP debt burden comes to $24.9 billion, of which $11.4 billion comes due by the end of 2012. The bulk of the debt comes due next year in 2011. If BP is not bankrupt in the next couple years from angry US victim constituents, these bondholders will certainly be seeing an USGovt mandated haircut on their assets. See the Zero Hedge article (CLICK HERE). Some statistics are revealing. One in eight UK citizens owns BP stock, and 20% of all UK stock dividends are derived from British Petroleum. On ownership, 40% of BP stock is owned by the British, while a surprising 39% of BP stock is owned by Americans, and only 10% by Europeans.

◄$$$ GOLDMAN SACHS IS ONCE AGAIN CONNECTED TO THE EXPLOITATION OF A SERIOUS DISASTER. A DEFIANT CALLOUS ATTITUDE IS THE BEST FACE, WHILE A POSSIBLE CORRUPT COMPLICIT ROLE IS THE UGLY FACE. A BRITISH PETROLEUM FORMER CHAIRMAN IS ALSO CHAIRMAN OF GSAX INTERNATIONAL. THE GSAX TEAM SOLD B.P. STOCK IN THE LAST FEW MONTHS, WHILE MAINTAINING A BUY RATING. ALSO, GSAX V.P. TOURRE BOASTED ONE DAY BEFORE THE EXPLOSION THAT BIG MONEY WAS TO BE MADE, WITH DISDAIN FOR MOTHER NATURE. $$$

For several years, the BP Chairman of the Board Peter Sutherland served concurrently as Chairman of Goldman Sachs Intl until he relinquished his BP seat recently. He left BP on January 1st of 2010. Sutherland holds some other interesting titles, including a position on the Trilateral Commission, chairman of the London School of Economics in 2008, UN special representative for migration and development, founding director general of the World Trade Org, and more. See his bio from the Trilateral Commission website (CLICK HERE). So conclude that BP and GSax could work efficiently together doing God's Work, errr, engaging in criminal enterprise and investments.

Notice the suspicious trend in the volume of BP stock held by Goldman Sachs Asset Mgmt. From June 2008 to September 2009, GSax owned a stable block of BP shares, between 54.6 and 59.1 million shares. It peaked in December 2009 at 70.9 million shares, and despite a BUY rating placed by Goldman's BP analyst Michelle della Vigna, the clever GSax folks sold 40% of their stake in BP shares, taking their holdings down to 42.5 million shares. Sutherland arrived just in time to perhaps influence a massive selling of the BP stock. In an opposite slant, despite GSax maintaining a NEUTRAL rating on BP stock through all of 2007 and half of 2008, GSax saw fit to double its stake in BP from 28.8 million shares up to 57.3 million days before della Vigna raised the stock to a BUY. Zero Hege has long pointed out that Goldman does precisely the opposite of what it advises its clients to do, who are better described as patsies or suckers, even idiots or trusting fools. See the GSax Asset Mgmt holdings of BP shares matched with the maintained BP stock ratings in the multi-colored upper ribbon.

Next, consider the history of Goldman Sachs and its British Petroleum coverage. Since 2008, the price targets (blue squares in chart below) appear consistently much higher than the share price movement. This is 'Sell Side' analysis at its best, where investment bankers sell on their side and advise clients to buy, the opposite. The source of information is directly from the GSax website databases. See the Zero Hedge article (CLICK HERE). Just last week, the GSax team put a downgrade on the BP stock to NEUTRAL. After a big decline over the last few months, a standing BUY rating and this rating upgrade have made no sense unless one suspiciously believes GSax plans to pump the story lines up for the benefit of BP stock, and generate a short cover rally. With a small bounce from a $29 low last week to a weekly close at $34, GSax realized some success to their plot once again. They want to purchase investor shares after the decline, and lock the barn door after the horses are gone. See the BP stock price movement, consistently below the GSax targets.

Lastly, and most disgustingly, is the revelation that Goldman Sachs, the great vampire squid, might have placed a timely bet against interests in the Gulf of Mexico just before the accident or sabotage or disaster, however readers choose to regard the event. The Borowitz Report claims a public relations predicament has come for Goldman Sachs, due to a substantial financial bet against the Gulf of Mexico one day before the sinking of an oil rig after an explosion from negligence or sabotage. The revelations came to light after government investigators turned up new emails from GSax employee Fabrice Tourre in which he boasted to a girlfriend that the firm was taking a substantial short position on the Gulf. Tourre said, "One oil rig goes down and we are going to be rolling in dough. Suck it, fishies and birdies!" See the Huffington Post article (CLICK HERE). These guys clearly come from the far side of hell. Word has come from newshound colleagues that website stories on this topic have been yanked by the Illuminati, including this HuffPost article.

The connection between Sutherland, formerly of BP, and Goldman Sachs was laid out also by another website journal Suite 101. They reported in a manner consistent with the above accounts. The journal implies a conspiracy, laying it out. They wrote, "Financiers Goldman Sachs not only fortuitously dumped millions of its shares in the British oil company, but has strong financial links to the chemical clean up firm [NALCO] tackling the disaster. Moreover, the Wall Street giant's new chairman was boss of BP only three months before. Sections of the blogosphere are running into overdrive at the stark fact that Goldman Sachs Asset Mgmt (US) sold 6,025,387 of its shares in the British oil giant BP on March 31st just days before the rupture of a pipe extracting deep sea oil.... The selloff represented 43.7% of the total BP stocks owned by the Wall Street powerhouse, reaping $276,770,112... This selloff may represent the largest single liquidation of petroleum stocks in the history of modern markets... Jo Anne Mor, of Blogster has compiled a swathe of documents that she claims proves Chicago-based NALCO, the environmental clean up company contracted to help deal with the crisis, is not only partly owned by Goldman Sachs but has other prominent links too." See the Suite 101 article entitled "Gulf Oil Spill to Drag Goldman Sachs into Trading Scandal?" (CLICK HERE). This NALCO company is a giant red herring!

◄$$$ OTHER POTENTIAL MOTIVE TO EXPLOIT AN ARRANGED OIL SPILL INVOLVES OWNERSHIP OF COREXIT, A TOXIC OIL DISPERSANT CHOSEN AS THE SOLUTION. SIMPLE HAY, COTTON, OR CELLULOSE FIBER COULD HAVE BEEN CHOSEN. THEY CHOSE A TOXIC AGENT, ONE CERTAIN TO ENTER THE RAIN CYCLE WITHIN THE ATMOSPHERE. AGAIN, GOLDMAN SACHS IS IN THE MIX. $$$

British Petroleum is not trying to stem the flow of oil in the Gulf of Mexico. BP is trying to capture the flow of oil without sealing the site, big difference! Instead of landing on all four feet, they are likely to go splat with the environment the big loser. Worse, heavy profiteering might be at work, much like the Swine Flu by insiders and policy makers. One can observe with research a profitable enterprise from this disaster. The Top Kill method by Team BP was started and suspended several times, as a distraction in bad faith. The heavy profit motive lies in the use of chemical dispersants. Consider the company called NALCO, maker of water purification systems and chemical dispersants. NALCO is based in Chicago with subsidiaries in Brazil, Russia, India, China, and Indonesia. NALCO is associated with the Univ Chicago Argonne program. UChicago Argonne received $164 million dollars in USGovt stimulus funds this past year. Hmm! Why?? UChicago Argonne recently added two new executives to their roster, one from NALCO. The NALCO firm is associated with Warren Buffett, Maurice Strong, Al Gore, Soros, Apollo, Blackstone, Goldman Sachs, and Hathaway Berkshire. Hathaway Berkshire increased their holdings in NALCO just last November. Their investment motive must be called into question, just like their sale of Moodys stock.

Focus on the dispersant chemical known as Corexit. It disperses oil at the chemical level and keeps it below the water surface. COREXIT IS BASED UPON TOXIC CHEMICALS. A close derivative of automotive anti-freeze solutions, it is designed to break up the spill into smaller pools. It is toxic and banned in Europe. The suspicious observers might believe that the course of action seems to be to permit the oil to blow wide open into the Gulf, which would require even more dispersant. The dolphins, manatees, sea turtles, and assorted fish in time will suffocate and die. The coastal regions, salt marshes, tourist attractions, shore front properties and businesses are being destroyed, possibly permanently. The birds that depend upon the marshes will also soffocate and die. Neither mammals nor reptiles nor birds can make lawsuits for wrongful death. Their reptilian relatives in Goldman Sachs executive positions will profit. The air quality will be diminished by oil and toxic dispersant chemicals. The Gulf of Mexico fishing industry is decimated. Blog writer JoAnneMor makes the case for motive, means, and opportunity to enable a worse oil spill in order to pave the way toward a large scale USGovt sponsored program, carried out by British Petroleum. She and her friends have compiled extensive articles and reports to support the claims. People must investigate whether the entire monster oil rig destruction, the blowout preventer accident, the aggravated oil spill, and the amateurish attempts to cap the well head are all intentional and a grand sabotage. JoAnneMor research is extensive.

JoAnneMor claims BP ignored safer alternatives and chose a toxic solution. She wrote, "It has been confirmed that the dispersal agent being used by BP and the government is Corexit 9500, a solvent originally developed by Exxon and now manufactured by Nalco Holding Company of Naperville IL. Their stock took a sharp jump, up more than 18% at its highest point of the day today, after it was announced that their product is the one being used in the Gulf. Nalco's CEO, Erik Frywald, expressed their commitment to 'helping the people and environment of the Gulf Coast recover as rapidly as possible.' It may be that the best way to help would be to remove their product from the fray. Take a look at some of the facts about Corexit 9500." My question is simple. Why not a basic safe solution to gather and soak the oil spill, like hay or cotton or cellulose fiber, or even microbes? Numerous examples are available of successful past methods. In fact, the Dutch have skimmer ships that retrieve oil at the surface. They are rendered less effective with dispersants that pull the oil molecules below the surface. Is the purpose of the dispersant to remove the retrieval potential? Is it to kill the marine life below the water surface? Is it to produce toxic rain? The entire choice of a toxic solution instead of a natural one, even a biological type, indicates to the casual observer of a desire to introduce toxin and to destroy the ecosystem. All offers by European and other nations to assist were denied by the USGovt and British Petroleum. Is the disaster proceeding according to plan? One must wonder!!

Meet NALCO. Goldman Sachs was part of a three sided group that purchased NALCO. Blackstone, Apollo, and Goldman Sachs acquired Ondeo NALCO, complete with their special product COREXIT 9500. Warren Buffet made a big bet on water investments, whereby NALCO was included. Berkshire Hathaway is the second largest shareholder in NALCO. See the JoAnneMor weblog article (CLICK HERE).

A personal and investment friend is TomU from Atlanta Georgia. He makes the case that the entire motive of British Petroleum is not to stop the leak but instead to capture the flow. Notice the final comment that confirms the Oil Volcano is in danger of growing, or connecting a second oil fissure to produce a gigantic new Oil Volcano. TomU wrote, "I spent 30 years solving disaster problems, World Trade Center Cleanup in 1993, MGM Grand Hotel fire in 1980, Power Plants in Tel Aviv, and other sites around the world. The oil leak could have been cut 95% on the first day. As you might know, they have been monkeying around trying to cap the pipe. For what reason? So they can RETRIEVE the oil as opposed to stopping the leak. Remember, the pipe is 21 inches in diameter and one inch thick. This pipe was instantly severed by one of the two 48 thousand pound cutters. If their aim had been to simply cut the majority of of oil leaking and save the ecosystem, they could have simply created a crimping adapter for the most powerful cutters on earth. Instead they cut the pipe in order to make sure they can retrieve the oil so as to cut the cost of their liability damages. They could have simply crimped the pipe as easily as they cut it. We did it many times on broken water mains and leaking power pressure lines... Also, we used to sandblast hardened steel at about 1500 psi and could destroy it if we wanted to with ambient temp. At that depth and temperature at about 400 degrees, just tack on about 70,000 psi and that backs up what you are saying about the mouth expanding to seek another big leaking plume. It is getting worse by the minute." THE MOTIVE IS NOT TO STOP THE OIL FLOW. Their goal at BP is to capture the oil flow, and to tolerate the risk of grandiose grotesque gargantuan ecological damage, the worst in human history. Regardless of ongoing haphazard efforts, the natural geological forces are working to join a second nearby fissure, and possibly create a gigantic Oil Volcano a few miles (kilometers) in diameter!!!

◄$$$ THE GULF OF MEXICO OIL SPILL PROBLEM HAS TWO NEW THREATS, EXTENSIONS OF HUMAN STUPIDITY OR RECKLESSNESS OR BOTH. ANOTHER OIL VOLCANO LEAK LIES 5 TO 6 MILES AWAY. THE TOXIC CHEMICAL DISPERSANT USED BY BRITISH PETROLEUM COULD BECOME ACID RAIN OVER ALL THE EASTERN NORTH AMERICA REGION. THE TOXIC RAIN COULD KILL LIFE FORMS AT THE GROUND LEVEL OF THE ECOSYSTEM, AND WORK UPWARD. $$$

The real nightmare could be the incredibly toxic dispersant that BP has been using in the Gulf of Mexico. Even the Russian Govt has entered the fray, indicative of the global impact potential. Their nation possesses entire timezones of open forests. The Russian Ministry of Natural Resources prepared a investigative report for Russian President Medvedev. In it, they warn that the BP oil leak in the Gulf of Mexico is about to become the worst environmental catastrophe in all of human history. The Russian scientists who compiled the report claim that usage of millions of gallons of the chemical dispersal agent known as Corexit 9500 by British Petroleum may cause an environmental nightmare of unprecedented magnitude. This dispersal agent being pumped in large continuous volume in the leak zone, at a water depth of more than one mile, is four times more toxic than oilIt is actually one of the most toxic dispersal agents ever created. The millions of gallons of crude oil mixed with the dispersal agent will spread death and destruction wherever the water is carried.

The European Union Times explained in precise terms the potential impact for the eastern half of North America. They wrote, "A greater danger involving Corexit 9500, and as outlined by Russian scientists in this report, is that with its 2.61 part per million toxicity level, and when combined with the heating Gulf of Mexico waters, its molecules will be able to 'phase transition' from their present liquid to a gaseous state allowing them to be absorbed into clouds and allowing their release as 'toxic rain' upon all of Eastern North America. Even worse, should a Katrina like tropical hurricane form in the Gulf of Mexico while tens of millions of gallons of Corexit 9500 are sitting on, or near, its surface the resulting toxic rain falling upon the North American continent could theoretically destroy all microbial life to any depth it reaches resulting in an 'unimaginable environmental catastrophe' that destroys all life forms from the bottom of the evolutionary chart to the top." See the Before It's News article (CLICK HERE) and the Atomic News Review (CLICK HERE). Crude oil evaporates at a very quick rate, entering the atmosphere. It is toxic. The Corexit dispersant is four times more toxic. This time, the oil will contain the toxic dispersant, both of which will enter the rainwater cycle system. Gasoline evaporates even faster, by the way, a very unstable compound. Acid rain is a known killer of forests. This BP toxic rain could be worse, whose toxic clouds envelop segments of forests and kill the trees.

◄$$$ THE OIL VOLCANO POTENTIAL IN THE GULF OF MEXICO MIGHT SOON EXPAND INTO A MAJOR EVENT. REPORTS ARE CONFIRMED THAT STRUCTURAL DAMAGE HAS OCCURRED TO THE DEEP CASING 1000 FEET BELOW THE SEA FLOOR, WHICH PREVENTS CAPPING EFFORTS. EVIDENCE OF SEABED LEAKAGE AROUND THE DEEPWATER HORIZON SITE HAVE BEEN REPORTED. FURTHERMORE, ANOTHER LEAK APPEARS VISIBLE NEARBY. $$$

Numerous reports come that major structural damage has been done to the deep casing 1000 feet below the ocean floor (NOT SURFACE), much farther below the actual visible leak shown endlessly on television. The breakdown of the hole casing means the oil rupture is more like an expanding volcano with the ground breaking down nearby. The Washington Post, Bloomberg, Wall Street Journal, and the Canadian press have reported on the expanded structural damage, and the impossible solution by conventional means to cap the leak. A disk within the bore hole has been malfunctioning, that prevents solid matter to seal the flow. Sources at two companies involved with the well said that BP also discovered new damage inside the well below the seafloor and that, as a result, some of the drilling mud that was successfully forced into the well was going off to the side into rock formations. Thus the failure of the Top Kill effort. Leakage of oil has come up through the seabed, the vast gulf floor. That indicates the Oil Volcano is spreading, and might soon suffer a grandiose eruption in a major event. A BP official spoke on the condition of anonymity, saying "We discovered things that were broken in the sub-surface. [Some drilling mud was escaping] out to the side, into the formation." The structural damage means any attempt to intersect the hole source is likely impossible. Foremost expert Robert Bea, a University of California Berkeley engineering professor, believes that all efforts therefore to jam the hole and set a concrete plug would be greatly hampered. Bea is an expert in offshore drilling and a high level USGovt adviser on disaster management. The conclusion is simple. Without unconventional action, the major leak will continue for at least two years, maybe more. See the Washington Blog account (CLICK HERE). The combination of heat, pressure, particle flow, and acids are working in a powerful manner to create a gigantic Oil Volcano event. If it occurs, massive volcano plumes possibly with lava might erupt in the Gulf of Mexico above the water surface, viewable from the coast.

Matt Simmons is a renowned petroleum expert. On national television he recently claimed that "There is another leak, much bigger, 5 to 6 miles away" from the Deepwater Horizon site where the leaking riser and blowout preventer are located. Such an extraordinary statement by a respected industry expert on Peak Oil is highly significant. So the volume of oil in Gulf waters might continue and amplify, and accelerate further. See the YouTube video by Simmons (CLICK HERE).

It is called Platform #23051 in the Gulf of Mexico. The satellite analysis blog called SkyTruth has identified what appears to be another oil discharge coming from a rig located only a few miles from the Mississippi Delta. SkyTruth may have discovered a second smaller but persistent leak or oily discharge, one unrelated to the present Deepwater Horizon oil torrent promoted by British Petroleum. See the oil spew located near the platform location on multiple satellite images taken since April 25th, including the Envisat ASAR radar image. According to MMS data, the platform is located at 28.938022 degrees North latitude, 88.970963 degrees West longitude, translated to mean 12 miles east-southeast of the tip of the South Pass outlet channel of the Mississippi River. See the Sky Truth photos and descriptions (CLICK HERE).

◄$$$ DEBATE HAS BEGUN OVER A SOLUTION TO THE OIL SPILL, GIVEN THE LACK OF PROGRESS TO DATE. A PROPOSED SOLUTION OF A SMALL NUCLEAR BOMB DEVICE IS BEING CIRCULATED. CONTINGENCY PLANS ARE BEING DEVISED BY THE USGOVT. SUCH USAGE HAS PRECEDENT BY THE SOVIET UNION OVER 40 YEARS AGO. NO PAST EXAMPLE FOR UNDERSEA DETONATION EXISTS THOUGH. $$$

As the ecological and economic damage spreads like wildfire, some scientists suggest the last resort, use a nuclear bomb to stop the leak in the BP oil spill. During the 1960 and 1970 decades, the Soviet Union successfully used nuclear devices to plug four leaking wells. Nuclear expert Christopher Brown explained how the bomb could be detonated underground in a separate well beneath the ocean floor. Extreme heat produced by the explosion would melt the well and surrounding rock, resulting to form a 'Glassy Plug' that would seal the leak. The Soviet Union tried the method to capped four gas wells in 1966, 1968, and twice in 1972. However, all applications although successful were conducted on inland sites. No underwater applications have ever been attempted. Nuclear fallout from radiation could cause other environmental hazards, like killing marine life anyway. Some experts claim that conventional bomb explosions, unlike the nuclear type, might open up new fissures that could make the leak unstoppable and much worse. The nuclear solution idea was rejected by White House, calling it crazy in their words. See the Hovied article (CLICK HERE). My source within the USMilitary and the USDept Homeland Security tells me that contingency plans for a nuclear device used at the Deepwater Horizon site are being made right here and right now, as an emergency response. Check out the cartoon whose truth runs parallel, as both oil and debt pollute the United States as a nation.

◄$$$ THE B.P. FIASCO IS AT RISK OF ESCALATION INTO POLITICAL CIRCLES, AN UNAVOIDABLE SEQUENCE. THE BRITISH ARE ANGRY AT AMERICAN DUPLICITY AND HEAVY LOSSES TO THEIR GIANT OIL FIRM. AN ANGRY EXCHANGE IS JUST THE BEGINNING OF SOURED RELATIONS. BRITISH PENSIONERS ARE AT RISK TOO. $$$

The British Petroleum disaster has opened a second front for the expanded fiasco. The risk is for some harmful alienation between the United States and its longstanding ally Great Britain. Sky News from the empire reports that it has obtained what they call an astonishing letter from RSA Chairman John Napier, in which he harshly criticizes the US President. Napier seems lacking in his premise that BP is committed to containing the leak, when they are attempting an acrobatic recovery of the oil itself, rather than a shutdown seal. Napier also might overlook 720 safety violations by the revered BP firm, more than adequate sequence of warning signals. IN MY VIEW, NEITHER THE UNITED STATES NOR THE UNITED KINGDOM HAVE ANY LEGITIMATE STANDING IN THIS CASE. The USGovt is at risk of some serious diplomatic battles rendering damage and causing some powerful backlash. Napier opened up the box of US corruption in the mortgage bond market, a big US vulnerability. Napier right off refers to 'your' as President Obama.

Napier wrote, "Please forgive this open letter but your comments towards BP and its CEO as reported here are coming across as somewhat prejudicial and personal. There is no doubt that BP, as a UK PLC, is totally committed to do everything possible to contain the oil leak and meet all its obligations in the USA. There is a sense here that these attacks are being made because BP is British. If you compare the damage inflicted on the economies of the Western world by polluted securities from the irresponsible unchecked greed and avarice of leading USA international banks, there has not been the same personalized response in or from countries beyond the United States. Perhaps a case of double standards? We can all agree that the first and absolute priority is to stem the leak. Perhaps the second one is to ensure the reputation of the Presidency outside the USA is seen as objective, balanced, and capable of taking the heat when under pressure. The immediate issues are very challenging but are best solved working together in a more Statesman like way. We liked the Obama we saw at your election, can we have more of it please." This type of communication is without precedent directed towards a head of state.

British institutions are involved, extended to their pensions. The Scottish Widows Investment Fund has $81 million invested in BP, which seems very small in the overall scheme of things. In fact, last week the Scottish Widows Fund doubled their investment in BP at reduced prices, recklessly ignoring the worsening risks. Many eyes are watching the BP Credit Default Swap contract, which is screaming the message of potential deep bond problems. If the BP CDS price rises above its current level of 500 (=5.00%), and hurtles north, the signal from its insurance contract would translate to their debt position being at peril. Let's watch the next BP bond rollover refinance. The sentiment across Britain is broad and deep. Mark Dampier of the financial firm Hargreaves Lansdown referred to the big decline in BP stock price. He said, "Obama has his boot on the throat of British pensioners."

CENTRALIZATION INTERRUPTED

◄$$$ THE BILDERBERGER ANNUAL MEETING TOOK PLACE LAST WEEK IN SPAIN. THEIR ACTIVITIES ARE MORE IN THE OPEN. THEIR AGENDA HAS BEEN LEAKED AGAIN. THE ELITE GROUP IS WORRIED ABOUT A POLITICAL AWAKENING BY THE PEOPLE THAT COULD OBSTRUCT THEIR PLAN. $$$

Veteran Bilderberg researcher and best-selling author Daniel Estulin has acquired a copy of the agenda for the annual meeting of the global power elite. His personal risk level must be sky high. In an exclusive interview with The Corbett Report, Estulin revealed the major topics discussed at the Bilderberger Annual Meeting, a not so secret gathering in Sitges Spain. It took place on June 3th to 6th. According to the documents obtained by stealth from internal sources by Estulin, issues to be discussed in the meeting are:

1)      Will the Euro Survive?

2)      Development in Europe: Europe's Exit Strategy... On Hold?

3)      Do We Have Institutions to Deal With the World Economy?

4)      Greece: Lessons and Forward Looking Strategies

5)      NATO & Afghanistan: The Practical Agenda for the Alliance

6)      Iran & Russia: Economic and Financial Threats to the Alliance

7)      The Consequences of War Against Terrorism

8)      The Influence of Domestic Issues on American Foreign Policy

9)      The Outlook for Japan's Economy

10)  The Future of the USDollar: Alternative Scenarios

The appearance of the Iran-Russia alliance on the agenda is important. An attack against Iran was on the table at this year's Trilateral Commission meeting also. Estulin has noted the indication that the real object of the Iran angle is the destabilization of Russia, a country that has traditionally been a thorn in the side of the globalists, as he puts it. He remarks that the Elite group has begun to taste the possibility of their realized dream of instituting global government by manufacturing a global depression. As people of nations are in the streets to demonstrate against destructive solutions to their sovereign debt woes, key Bilderbergers are openly talking of their fears of a global political awakening. See the Before It's News article (CLICK HERE) and the Corbett Report article (CLICK HERE).

◄$$$ GAINS ARE BEING MADE ON THE DE-CENTRALIZATION ROAD. SOLUTIONS WITH SHARED POWER AND MOVEMENT AWAY FROM POWER CENTERS ARE UNDERWAY. THE WORLD IS AT A CRITICAL STAGE. $$$

It is my forming conclusion that sovereign debt distress, coupled with monetary system breakdown, will find de-centralized solutions. Such planned solutions are in the execution stage. Watch the growing national pressures and patterns, whereby Greece reverts to the Drachma currency, Italy to the Lira currency, Spain to the Peseta currency, and Portugal to the Escudo currency, all strong indications of de-centralization. It is my expectation that more than one gold-backed currency solution is being planned, the New Northern Euro the farthest along toward implementation launch. Within each such new currency will be de-centralized power shared by member central banks. The trend is away from centralized political fortresses of global power. Time will tell.

◄$$$ FLOATING CASTLES AT SEA MIGHT BE THE LAST GASP PLAN FOR THE WEALTHY ROGUE ELITE GETAWAY. PARTY CRUISE LINERS ARE ON ORDER AND IN THE CONSTRUCTION PHASE. $$$

Fabulously wealthy clans have planned their backdoor escape routes, so it seems. The Billionaire Sea Castles are under construction. Cynics point to the next chapter following plunder of America by the Ruling Elite. Their bond fraud has left the nation insolvent and broken. The angst and ire have begun to be directed toward the bankers. With loot in hand, and probably banks onboard, the ultra-rich who have lost faith in gated communities and even island retreats will set sail soon on their first floating castle, at a cost well beyond $1 billion per vessel. The luxury liners offer permanent first class housing with the protection of moats made of oceans. The castles at sea will keep the land-based American plebeians at a safe distance. The gutted Middle Class has been stripped of their entitlements, their homes, their savings, and their pensions. In Medieval Times the castles offered effective protection. The cruise liners are a modern adaptation. See the AlterNet article (CLICK HERE).

In my view, the floating castles feature isolation similar to exiles on remote islands with oversized engines. They sound more like prisons on the water. Their residents can sit around, do no work, drink heavily, snort cocaine, receive delivery shipments from helicopters on ship helipads, engage in incest and other sordid rituals, all the while more vulnerable than planners might anticipate. The Achilles Heels would be the hull from below, no protection from torpedoes of uncertain origin, and from breaches to the helipad, which would receive deliveries of food sundries, structural supplies, alcohol, cocaine, and their usual fare of sacrifices that they are accustomed to. Look for pestering vessels much like what Greenpeace serves up to whaling ships. Can you say 'Ducks on a Pond" ???

NARCO BARONS & US PRESTIGE

◄$$$ RUSSIANS SPEARHEAD A GLOBAL INITIATIVE AGAINST HEROIN. A MOSCOW CONFERENCE WITH UNITED NATIONS PARTICIPATION HAS BROUGHT ATTENTION TO THE GLOBAL PLAGUE. MEDVEDEV CALLS FOR ERADICATION OF AFGHAN PRODUCTION, WHICH THE UNITED STATES AND N.A.T.O. INCREDIBLE OBSTRUCT OPENLY. SPOTLIGHT HAS COME TO THE U.S. ROLE IN GENERATING HEROIN PRODUCTION, WITH POSSIBLE ISOLATION, MAYBE WORLDWIDE FURY. FOCUS IS ON THE EFFECTS, DEATHS, AND COSTS, RATHER THAN THE VERTICALLY INTEGRATED INDUSTRY THE USMILITARY HAS BUILT IN AFGHANISTAN. $$$

Russia has sponsored a Global Anti-Heroin Conference in Moscow. Nearly 200 experts, politicians, and drug control specialists from 40 countries attended the forum with the objective to interrupt the trafficking of narcotics from Afghanistan. Quietly, Russia has suffered immense loss of life and openly admits it. One must wonder if by targeting Afghan heroin production, the Kremlin is actually putting the global pressure on the United States and its security agency kingpins. The USMilitary has pursued a global monopoly in the heroin industry, with its center in Afghanistan, complete with elaborate vertical integration, like chemical process factories and truck delivery networks. Nonetheless, the structural details of that industry are not the focus of Russian leaders, rather the effect, a clever strategy. President Dmitry Medvedev is a firm steely leader, and he seeks a coordinated approach in a war against Afghan drugs, trying to take a broad initiative to combat a flow of drugs from Afghanistan. Amazingly, the United States offers almost no support, giving a cool reception to the plan rolled out a global initiative to stem Afghan drug trafficking.

The Russians strive toward a comprehensive crackdown on opium poppy growing in their neighbor country, where the Americans have set up shop. The Kremlin accuses the US-led NATO forces of passive encouragement of Afghan production, even though they fully realize the USMilitary is in direct control. Moscow wants the destruction of poppy fields to be mission for dispatch of NATO forces operating in Afghanistan. Local drug output has surged over 15-fold after the US invasion in 2001 and now accounts for 90% of all global heroin produced. Any rift between Moscow and WashingtonDC over narcotics would not affect the transits of cargo for NATO troops in Afghanistan via Russia. It seems Russian leaders have a very passive position toward the narcotics trafficking interwoven with military transport of men & supplies.

The USGovt offered a totally lame deceptive position that the eradication of poppy plantations would push angry Afghan farmers into the hands of insurgents. The lame position was echoed by NATO brass, who appealed to the need for farmer income. The same USGovt twisted logic requests additional federal funds to combat the stubborn poppy production. Such incredible magnificent lies. Patrick Ward, acting deputy director for supply reduction at the White House Office of National Drug Control Policy, warned the forum of the dangers of pushing poor peasant farmers into the hands of the militants. He cited the rule of law and reinforcement of the nexus between drugs and terrorism. What a blatant piece of propaganda! Numerous anti-drug operations in early 2010 led to the destruction of 16.3 metric tons of opium, Ward claims, but clearly the interdiction by US forces is against Taliban lords working as rivals to the majority who work in close cooperation with USMilitary interests.

At the conference, Russian leaders pressed global objectives. Medvedev said, "We see drug addiction as significant, the most severe threat to the development of our country, to the health of our people." Foreign Minister Sergei Lavrov called for a binding United Nations resolution against Afghan drugs. He said, "We are confident there is a need for the UN Security Council to call the Afghan drug threat as a threat to international peace and security. We should act at least as decisively fighting drug production in Afghanistan as it is done when fighting cocaine production in South America." Lavrov referred to the broad initiative by USGovt agencies of many stripes to combat the cocaine trade in the American Hemisphere. Again, more deception, since the US efforts in Colombia and elsewhere in Latin America are intended to kill off competition to the US Narco Barons who use free military and security agency subordinates.

Viktor Ivanov, head of the Federal Drugs Control Service, strives for the adoption of any resolution by the United Nations that would create a legal basis for an international fight against Afghan drugs. Goals were proposed. The plan drafted by the Kremlin called for eradication of 25% all areas growing opium poppy. See the Moscow Times article (CLICK HERE).

Russian President Dmitri Medvedev has called for the international community to accept responsibility for the fight against narcotics from Afghanistan. He told the Anti-Drug Conference in Moscow that worldwide Afghan heroine has killed nearly one million people under the age of 35 in the past eight years, causing about 30,000 deaths annually. He stressed how the entire world is threatened by drug producing nations and the downstream addic tive narcotic. Medvedev actually said that international organizations, including the United Nations, NATO, and the Shanghai Cooperation Organization, are insufficient in the global war. He pushes for a coordinated Afghan drug policy adopted by the global community.

The United Nations Office on Drugs & Crime identifies heroine as the world's deadliest drug. The UN agency estimates the narcotic market is worth $65 billion and caters to 15 million addicts. The organization notes how heroine usage is linked to the spread of the HIV virus, but it also funds criminal groups, insurgents,, and terrorists. The United Nations estimates Afghanistan cultivates 92% of the global opium poppies, the raw material for heroin, and exports about 375 tonnes of the drug each year. See the Voice of America article (CLICK HERE).

◄$$$ AN INTERESTING TEST CASE HAS COME THAT PUTS THE USGOVT IN A TOUCHY SENSITIVE POSITION. MOSCOW OFFICIALS WANT COOPERATION TO APPREHEND DRUG TRAFFICKERS OPERATING OUT OF THE UNITED STATES, WHO SEND HEROIN TO RUSSIA. $$$

The Kremlin is making a direct request to the USGovt, one possibly to highlight the US culpability in narcotics trafficking. The Kremlin wants information on dealers of Afghan drugs from US sources to Russian destinations. Their claim has an interest logic. They seek cooperation to detain the dealers and halt the flow of drugs. The Russian drug chief Viktor Ivanov said, "We have identified several people who live in the US and organize the trafficking of drugs from Afghanistan to Russia. We have passed this information on to the appropriate US entities and we are waiting for confirmation." Russia has been one of the countries most affected by the tremendous rise in Afghan narcotics production, being a direct neighbor. According to the Federal Drug Control Service, Afghan opium kills around 100,000 people worldwide every year, including some 30,000 Russians. See the Ria Novosti article (CLICK HERE). A very good chance exists that the US sources work closely with the USGovt security agencies. Loaded with intrigue potential, the American Narco Barons can possibly serve up a patsy to be hauled away in arrest, somebody who is an adversary to the syndicate, a rival who blocks their path, someone the Russians would want to apprehend.

◄$$$ THE NARCOTICS TRAFFIC DIRECTED BY THE U.S. SECURITY AGENCIES OUT OF AFGHANISTAN GOES THROUGH TURKEY, BUT ALSO KOSOVO. THEN THE TRAFFIC HEADS TO N.A.T.O. AIRBASES BEFORE IT FINDS THE EUROPEAN AND AMERICAN CITIES. THE USGOVT SYNDICATE HAS THE GLOBAL MONOPOLY. $$$

Two years ago a joke circulated across the Russian internet that the heroin producer Afghanistan was the first nation to recognize the independence of one of its own distributors. Kabul was the first to recognize the independence of the Serbian province of Kosovo, after it split off from Yugoslavia. Kosovo has since become an important transit point for drugs, channelled from Asia to Europe. Milovan Drecun is a top Serbian military analyst and an authority on matters pertaining to Kosovo. He cites Europol and Interpol data that the largest amount of heroin delivered to Europe from Afghanistan travels by way of Kosovo. According to some estimates, approximately 65% of heroin worldwide is channeled through Kosovo, even as 90% of all drugs that find European locations are shipped via Kosovo. He reports that people involved in drug smuggling into Kosovo hold state offices of great importance in the province. Stewart Kellock is a Canadian detective investigating narcotics trafficking. He claims the Albanian drug mafia operates in Kosovo with the collusion and cooperation of the United States. He believes that US diplomats prevent the detention in Kosovo of notorious drug traffickers. He confirmed that Hashim Thaci, the current Prime Minister of Kosovo, leads the biggest Albanian mafia clan.

Rumors are rampant that USMilitary ties in Kosovo involve the local drug dealers. The official propaganda spins the story that the redoubled efforts by the USMilitary work to eradicate heroin production in Afghanistan. In reality the Americans, led by the CIA, stockpile profits from the illegal drug traffic to Kosovo from Afghanistan in secret coffers. Proof by data comes from the Afghan heroin output having risen 15-fold since the American arrival and heavy budgets put to use. My source through British Intelligence claims the Clinton Admin was crucial in setting up an Interpol war criminal as the Kosovo leader, a handy job placement useful to the American Narco Barons. According to the Drecun source, USMilitary officers (extending to ranking security agents) have forged alliances with elements of the local organizations and influencial personal friends of the Prime Minister. They reportedly move narcotics 150 kilograms per shipment. Consequently, as a result of these alliances to Western nations, Kosovo has been turned into a breeding ground for legions of drug dealers and criminals. As Alexis Troud from the Paris-based Intl Academy of Geopolitics famously put it, "A criminal zone run by the Albanian mafia." See the Russian VR article (CLICK HERE).

◄$$$ THE REPUTATION OF THE UNITED STATES LEADERSHIP HAS BEEN PERMANENTLY RUINED. THE FOUNDING FATHERS WOULD ABANDON THE LAND WHERE THEIR CONSTITUTION WAS ESTABLISHED AND RATIFIED, NOW SHREDDED BY THE PATRIOT ACT. THE RULING SYNDICATE AND ITS KEY ALLY TOGETHER SPREAD PROPAGANDA ON TERRORISM. THE NATION IS OVERRUN BY COMPETING FASCIST AND MARXIST FACTIONS. $$$

The reputation of the United States leadership, the USMilitary, the US bankers, and the USCongress has been ruined beyond repair. In my view, the overt causes for the ruin began with the corrupt gold leasing during the Clinton-Rubin Admin, which sold most of the US-owned gold supply after leasing it to Wall Street banks, and then sold a notable portion of Europe-owned gold supply in the same manner. The more recent events sealed the fate of the US prestige, such as A) the invasion of Iraq to confiscate their gold and strangle their oil supply and tap huge flows of funds appropriated by the USCongress, B) the proliferation of toxic mortgage bonds worldwide after dismantling the core of the home loan approval process while colluding with debt rating agencies to put a AAA stamp on any toxic bond with a credit derivative rider attached, C) the capture of the global narcotics by the US CIA and subservient agencies. A possible item D) exists that remains to be seen or demonstrated, as the majority of the Fort Knox gold bullion appears to have been swapped for tungsten bars by the Clinton-Rubin gang, then spread across the globe like a cancer, using trade routes similar to the narcotics pathways. Confirmation has been coming slowly but clearly by a handful of gold traders.

The succession of Narco Baron presidents in the United States began with Papa Bush, who assumed power after Ronald Reagan was shot in 1981, his first year of office. The foundation was created however, in 1963, in the wake of the Kennedy assassination, where Papa Bush was in charge of the CIA. The first skirmish capture was of the Cambodian Triangle narcotics vantage point during the Vietnam War. Fast forward to the last few years, when the Great Afghan prize was captured (climax event), the Bank of Baghdad was set up by JPMorgan as the central clearinghouse for the narcotics payments, the NATO bases were aligned for the narcotics distribution, while in the home hemisphere close realtions were forged with government leaders in Colombia who captured their own narcotics industry. It is safe to conclude the syndicate operations in military, banking, and narcotics were not what Washington, Jefferson, Adams, Madison, Hamilton, Franklin, Hancock, and John Paul Jones had in mind.

By the way, all grand syndicate schemes need a propaganda message, an ideology. For the USGovt it is the War on Terrorism, the grand smokescreen spouted in order to support narcotics trafficking by USGovt sponsored agencies. Their costs are largely covered by US taxpayers but whose profits are privately sequestered in bank accounts worldwide. No data on details is known or desired on accounts, specific routes, facilitators, agents, delivery schedules, certification, quantities, packaging, or values. Such is my vigorously pursued preference of ignorance for details. The stigma on the United States is permanent and irreversible, unless and until a total national cleansing complete with prosecutions takes place. The collusion with a key strategic ally is interwoven with the syndicate and most of its activity. That nation looks northwest across the Mediterranean Sea to Italy, enjoys great privilege in the Swiss banking system, commands incredible influence in US political organizations of all type, and places numerous people in the President's Cabinet, even the White House Chief of Staff. Now that is leverage!!