Monthly Archives: November 2009

Recipe for Revolution

We share with you this inspiring post submission:

A Recipe for Revolution

by Lady Liberty

These are exciting times! The opportunity for a peaceful (although not painless) revolution is upon us.  The masses are slowly coming to the realization that central planning does not work. Witness the failure of existing foreign policy, financial mismanagement, and currency debasement.

In Dr. Gary North’s recent article Digits and Revolution he shows that the revolution is already happening.  To help it along, the recipe is to create Free Market alternatives that put the governmental (central planning) systems out of business.

Many folks are already achieving more personal freedom by actively engaging in counter-economics like the Agorists.

Here are a few excerpts from Dr. North’s article with my comments below:

Years ago, my friend Robert Thoburn, the entrepreneur who developed Fairfax Christian School, was standing in line at the Post Office at Christmas time. The line was very long. He turned somebody next to him and said it would sure be better if the system were run by the government. He got an incredulous look; then that person smiled. Thirty years ago, that seemed like a fruitless observation. Yet, as it has turned out, we could lose the Post Office tomorrow and barely feel it. We don’t use first-class mail to communicate any longer. We use the Internet. We use Federal Express and UPS and other delivery systems to deliver anything really important that we have to send. The Post Office in effect has gone senile.

We don’t sense that it’s gone. Yet the reality is this: we have replaced something with things that are better. Therefore, at some point, we will see the Post Office either go out of business or become simply a forgotten memory. Yet the Post Office is part of the Constitutional system. The Post Office has always been a way for the government to control the flow of information. As Robert Nisbet said in an autobiographical essay, in the year he was born, 1913, the only contact that the average American had with the Federal government was the Post Office. How much contact do you have with the Postal Service today? It delivers mostly junk mail to you. We ought to think of the U.S. Postal Service not as snail mail but as junk mail. It is the junk mail service for the junk mail industry. Even this is subsidized. It gets cheaper rates.

We have seen the demise of the Post Office operationally over the last ten years, yet we have paid almost no attention to this. There has not been a revolution in our thinking about the Post Office. There has simply been a kind of forgetfulness. We haven’t paid much attention to the fact that we don’t need it anymore. This has not taken any kind of an organized political movement.

Dr. North goes on to say:

The Post Office is sacrosanct. It is untouchable. But now it is simply ignored. This is the best way to have a revolution. Create a free-market alternative to a particular government institution, and then refuse to use the boondoggle anymore. At some point, we can simply vote to de-fund it. We can privatize it. Nobody will care, because hardly anybody is using the system any longer.

Here is my slogan for political reform: Replacement, not capture; then de-funding.

Let us take this slogan and begin to apply it to all the government institutions that we deal with on a regular basis. Apply it especially to the Federal government.

We are seeing the creation of a new economy in which we really do not need the Federal government, except for welfare services for the aged. It is going to go bust because of these welfare services. So, the primary objective that we ought to have is to create alternatives to the welfare system. We don’t need to call for the shutting down of a particular government agency tomorrow, although in principle that would be the best way. But that would be an overnight political revolution, and I really don’t believe in overnight political revolutions.

Overnight political revolutions always centralize power. That is what Frederick Engels taught, and that is what I believe. What I believe is best for the country is a quiet social revolution, which is marked by a shift of reliance away from all government money toward free-market and charitable funding. We will simply walk away from the system. When enough people walk away from the system, and the rest of them lose their shirts when the system goes belly-up, we will be in a position to have a real revolution, one in favor of freedom.

This revolution will be one of decentralization and some form of operational secession. I don’t think states are actually going to break away from the union. I believe that the governors and mayors are not going to bother to get Federal grants, because the money is either not available or won’t buy anything. When we get to that stage, we will be prepared for a new period of liberty. That day is coming. The government has shot his wad, and the Federal Reserve, in shooting whatever wad it has left, is going to debase the currency.

The transformation is taking place right under our noses. As George Orwell said, it is a constant struggle to see what is happening under our noses.

How can you participate? If you vote, stop.  Recognize the immorality of voting as so eloquently articulated by Lysander Spooner in his essay No Treason VI: The Constitution of No Authority and in Ken Schoolland’s Philosophy of Liberty.  Realize that voting is what happens when two wolves and a sheep decide on what to have for dinner.  Simply start using Free Market alternatives to central planner programs.  Vote with your dollars.  Withdraw your support of central planners like the Voluntaryists.  If you are an entrepreneur you have the opportunity to profit by creating and offering alternative services at a lower cost.  If you work for a government agency start making plans to move into the private sector where you will be better recognized for your talents.

Will the central planners give in easily?  No, they will do whatever they can to maintain power.  They will continue to woo voters with the promises of  sharing in the stolen property they take by taxation and majority vote.  If man is to achieve freedom he must stop living off of the backs of others.  Education is the key to freedom.  The internet is helping to make this happen.

Man does not instinctively wish to be the slave of another.  It is against human nature.  Only in his ignorance does he continue to make choices that enslave him.  The innate desire to live is that same desire for liberty.  Without liberty you do not have a life that you can call your own.

Parasites cannot live without hosts.  We can starve the parasites and educate our fellowmen by sharing articles like this one.

Yes, these are exciting times!

Hide the decline

For your thanksgiving entertainment

The Menace and Immorality of the Welfare State

The Menace and Immorality of the Welfare State
by Richard M. Ebeling

In the United States policies are being promulgated by those with political power in Washington, D. C. that will involve a massive and dangerous growth in the size and scope of government. At the core of the Obama administration’s push for implementing a comprehensive national health care system and related programs is a radical ideological belief in political paternalism and the welfare state.

In the face of the euphoria of those demanding such a huge expansion of “Big Brother” over even more of our lives, it is worthwhile reminding ourselves of the premises behind and the realities of welfare statism.

continue reading…

Austrian Investor on Compassion vs. Compulsion

The Austrian Investor posted the following at his site:

Compassion vs. Compulsion
November 26, 2009 by Austrian Investor

Here is an excellent interview with Dr. Richard Ebeling where he is defending the free market and why it is the only moral choice.  Charity = Compassion whereas Redistribution = Compulsion and the Loss if Liberty.

Radio Interview

The only opinion I would add is that even seemingly “necessary” government services such as “the protection of property” and “national defense” can be better provided by the free market where there is competition for your dollars.  In a free market you have the ability to withdraw your support if you are not satisfied with the services being offered forcing the provider to earn your business (see Chaos Theory by Dr. Robert Murphy).    A little bit of compulsion is like being a little bit pregnant.  Limited government often grows to unlimited government.

Devaluations in Vietnam

Gold cannot be created like paper currencies.  It takes real resources and is in limited supply – that’s why it is a better form of money…

Black Market Signals Vietnam Dong Devaluation Is Just Beginning
By Beth Thomas

Nov. 26 (Bloomberg) — Vietnam, struggling to control accelerating inflation and a widening trade deficit, will keep weakening the dong after devaluing the currency for the first time since December, black-market rates and forwards show.

The central bank said yesterday it will permit the currency to decline a further 3 percent today, after it fell 5.4 percent in the past year. The unofficial rate offered at gold shops in Ho Chi Minh City is 9.7 percent weaker than yesterday’s spot- market price of 17,886 per dollar. Contracts based on the exchange rate in 12 months imply a 15.6 percent depreciation.

Inflation accelerated to a six-month high of 4.35 percent in November from a year earlier and the nation’s balance of payments worsened as exports dropped and rising commodity prices swelled the cost of imports. The dong has slumped 22 percent in the past decade and the government risks “damaged credibility” by allowing further losses, according to Standard Chartered Plc.

“Whenever you devalue a currency, there is general expectation for more,” said Thomas Harr, a foreign-exchange strategist in Singapore at Standard Chartered, which predicts a decline to 19,000 by the end of next year. “The key challenge is the widening trade deficit and slowing inflows from foreign direct investment, remittances and equity inflows.”

The State Bank of Vietnam decided to lower the reference rate 5 percent to 17,961 against the dollar, close to yesterday’s spot rate. That was the first such move since Dec. 25. The dong’s decline will be limited as policy makers also narrowed its trading range to 3 percent from the daily rate, from a 5 percent band adopted March 23.

More…

U.S. Debt: Saturday Night Live gets it

A bit crude but this skit pretty much sums up the U.S. debt owed to China:

Click here to watch skit

The only way this debt will be handled will be by inflation or default or a combination of the two.    Either way,  the dollar is doomed.

.

.

Opinions regarding the Deflation vs. Inflation debate

The following is a response by one of our readers to a friend’s question regarding deflation vs. inflation and the impact on the gold price:

Hi Kevin,

Thank you for sending over that report by Nick Guarino. He makes some great points and I believe he is right in many cases although I have some contrary opinions on gold. I have not looked at his oil or stock scenario. I’ve listed his arguments below with my responses to each of them. I also recommend listening to the following audio interview with John Williams of ShadowStats.com where he specifically addresses the inflation/deflation debate:

John Williams Interview
http://wp.me/pHQmz-68

I also recommend listening to the radio interviews with Jim Willie (mentioned below).

1. Nick says: “IMF has plenty of gold to sell into the market.”

Response: This is true. But the real question is will there be sufficient demand to absorb it? I say yes. India bought the 200 tons (which is money they spent on gold instead of U.S. Treasuries). China has continued to buy and plans to continue. This is being referred to as the “Beijing Put” (http://tinyurl.com/n3nvrs). Sri Lanka just recently announced a major purchase of gold and Russia has stated its intention to buy more gold too (http://en.rian.ru/russia/20091119/156903575.html).

2. Nick says: “Prices are in deflation not inflation.”

Response: Yes, prices are down but they are down primarily in financial assets which were previously “inflated” with easy credit. These debt-financed assets will continue to fall in price as defaults rise and lending shrinks. Prices in consumer goods and services will begin to rise as the dollar drops.

It is important to note that the proper definition of inflation is “an increase in the money supply”. Rising prices are only a result of an increase in the money supply and these rising prices may not show up right away or they may show up in specific assets over others (gold and stocks versus houses).

3. Nick says: “Collapsing credit is deflationary”.

Response: Not necessarily. When a debtor defaults on his debt, the money that was lent stays in the financial system. It is not taken out. These debt defaults show up on the financial statements of the banks (more on this later). The pay-down of debt does shrink the money supply but most people can’t pay off their debt because they owe more than the assets securing these debts are worth. This will continue to cause defaults.

4. Nick says: a.) “The dollar and the U.S. Government are too big to fail; b.) If the dollar fails the world will be thrust into an economic Dark Age therefore foreign governments will not let it happen; c.) Foreign governments must buy every dollar of U.S. Government debt otherwise they will be wiped out first; d.) Demand for U.S. Debt is at an all-time high evidenced by low rates.”

Response: I will Respond to these individually:

a.) “The dollar and the U.S. Government are too big to fail” They are not too big to fail. Yes, this would create a lot of pain but at some point foreign lenders will cut off the credit card. There is a point when creditors realize that they will never be repaid and it no longer makes sense to throw good money after bad. Of course, foreign governments can’t do this all at once without hurting themselves so they play a risky game of slowly and quietly diversifying out of dollars hoping not to spook others and create a stampede out of the dollar – hence, the steady dollar decline and relentless gold rise. This is hard to do safely and will likely fail as the dollar flight accelerates. China has been buying every resource company they can get their hands on which is another way of dumping/trading their dollars for these real assets (http://tinyurl.com/y8jby2z).

b.) “If the dollar fails the world will be thrust into an economic Dark Age therefore foreign governments will not let it happen.” In addition to the response in “a.” above, foreign governments must choose between some pain now or more pain later. As they diversify out of dollars and buy gold they hope to be the first ones out of the burning theater. It is their intent to offset dollar losses with gold gains. This will likely turn into a stampede. Yes, a Dark Ages will happen but the longer they wait the worse it will be.

c.) “Foreign governments must buy every dollar of U.S. Government debt otherwise they will be wiped out first.” Same responses as “a” and “b” above.  Also, they are going to be wiped out anyway so they might as well get rid of their dollars as fast as they can while they still can.

d.) “Demand for U.S. Debt is at an all-time high evidenced by low rates.” Yes and no. The demand is high but unsustainable for the reasons stated above. There is also substantial speculation that the Fed is already buying these treasuries (Quantitative Easing) through back door foreign intermediaries (Jim Willie: Systemic Crisis: audio interviews http://tinyurl.com/ydakvlw). Could this be one reason why they don’t want an audit?

5. Nick says: “Foreign Countries are taking coordinated steps to stabilize the dollar. China, Japan, Philippines, Middle East, Singapore, Malaysia, South Korea.”

Response: This is mostly all talk. I’ve already shown above how several of these countries are slowly diversifying out of the dollar in favor of gold. What most countries fear is their currency strengthening against the dollar causing their exports to become expensive and “bad for business”. To combat this, they can either buy dollars or devalue their own currency. Many are simply choosing to devalue their currency. This causes their currencies to devalue against the one currency that cannot be devalued: Gold. Gold is resuming its supreme role as a currency (not just a commodity). Gold is the oldest form of currency and has been around since biblical times – longer than any other currency. (see “What is Money?” http://tinyurl.com/y8ay3y4).

6. Nick says: “M3 money supply is not growing, global liquidity and credit are collapsing…there is no freakin’ money.”

Response: Yes, M3 has slowed but this is only temporary. Here’s why. Banks’ excess reserves have exploded from 2 billion in July, ’08 to 1.06 trillion today (Money Supply chart: [http://tinyurl.com/yfv54aq] and Dr. Reisman article: http://tinyurl.com/yfnv4rn). These excess reserves are funds that have not been lent out and have not created additional credit expansion. In my opinion, the reason is that the banks are still experiencing (and expecting) horrendous losses and are looking to restore their balance sheets. At some point their insolvency and inability to resume lending will frustrate the government (due to the continued cratering of the economy) and the banks will be nationalized. This will give the government, as the new owners, the ability to begin lending again which has the potential to increase the money supply by an additional $132 trillion! (see Reisman: http://tinyurl.com/yfnv4rn). Of course, the FED can be forced into QE beforehand if foreign governments dramatically slow their treasury purchases.

The lack of cash, or as Nick says “there is no freakin’ money”, is due to the incredible leverage before the crash. Instead of saving more, folks found it more profitable to invest most of their cash and borrow multiples on top of it. When the leveraged investments failed, their equity and cash holdings were wiped out.

Conclusion:

In dollar terms, if someone is short gold it means that they are long the dollar. I see no reason to have any confidence whatsoever in the dollar. I tell people to look at the dollar as the “common stock” of the USA – just like you would look at the stock of a corporation. When valuing a stock you would look at the management and balance sheet of the corporation to determine what you would pay for the the stock. When I apply this same analysis of the USA I conclude that the dollar is not a “stock” that I would want to own. Sure, the government can increase revenue because they have the power to tax but even a 100% tax is not enough to correct the problem (source: ShadowStats.com Hyperinflation Special Report: http://www.shadowstats.com/article/hyperinflation).

If you are still unsure as to which scenario to believe, it might make sense to put half of your assets in cash and the other half in gold.  Any drop in purchasing power in one would likely be offset by the increased purchasing power in the other and your original purchasing power will likely be preserved.

A Pro-Free-Market Program for Economic Recovery

A Pro-Free-Market Program for Economic Recovery

by George Reisman, Ph.D.

[This talk was given at Economic Downturn: Cause and Cure (Mises Circle, Sponsored by Louis E. Carabini) Newport Beach, California, November 14, 2009.]

Good afternoon, ladies and gentlemen:

As you all know, we are in a severe economic downturn. The official unemployment rate now exceeds 10 percent and according to many observers is actually substantially higher. Within the last year or so, our financial system has been rocked to its foundations. The collapse of the housing bubble and the numerous defaults and bankruptcies connected with it brought down major financial institutions, such as Bear-Stearns, Lehman Brothers, and Merrill Lynch. It also brought down numerous small and medium-sized banks and threatened to bring down even such banking giants as Citigroup and Bank of America. The Dow Jones stock average fell from a high of 14,000 to about 6,500. Important retailers such as CompUSA, Circuit City, Mervyns, and Linens ‘N Things went under, as did countless small businesses throughout the country. Practically every shopping mall gives testimony to the severity of the downturn in the form of vacant stores.

The collapse of the housing bubble and the massive losses and mounting unemployment that have resulted from it have unleashed a veritable firestorm of hostility against capitalism, in the conviction that it is capitalism and its economic freedom that are responsible. It is now generally taken for granted that any solution for the downturn requires massive new government intervention, to curb, control, or abolish this or that aspect of capitalism and its alleged evil.

Continue reading…

The Day the Dollar Died

The following post from www.johngaltfla.com paints a sobering picture worthy of consideration:

The Day the Dollar Died

02:35 by Administrator. Filed under: The Day The Dollar Died Series

by John Galt

November 18, 2009

The following story in italics is a potential fictional time line for the day the dollar died. I hope not to instill fear or loathing but to give everyone some perspective on a POSSIBLE outcome which does not really take much of a reach to come to any conclusion. Despite popular belief and promises from those who wish to rob you of your savings and investments, the collapse of the dollar might just be an event measured in hours, not days as their control is not what it seems…..

Mike was less than an hour from home in Minnesota after dropping his load off in Fargo but knew he needed to top his tank off this Sunday evening to insure his rig would make it home. He pulled into the Petro Truck Stop just outside of Fargo and hopped out of the cab into the bitter twenty below temperatures which he could not believe had already hit at ten o’clock at night. He slid his fuel card into the pump waiting for the next prompt when the “SEE ATTENDANT” message flashed in the screen. He blustered, figured it was another card problem and whipped out his Master Card and slid it in after the pump reset and again the “SEE ATTENDANT” message flashed up. “What the hell is going on?” he thought to himself as he wandered into the long line of drivers boisterously yelling at managers and clerks alike.

Tom finished up his shift on the docks at the Nestle warehouse in Hampton, Georgia at exactly 11 o’clock at night and decided that because of the scuttlebutt he had been reading on the message boards, it may not be a bad idea to pick up a few cans of food and some toilet paper at the local WalMart Super center. Even though it was a Sunday night, they were always stocked and it was just five minutes out of the way to his home. As he walked inside the store, his mouth dropped. It looked like the day after Thanksgiving sale with every register open and ten plus people deep at 11:30 p.m. “Oh my God!” he gasped as he walked in grabbing the last shopping cart with the wheel that was half locked up.  As he walked as fast as he could to the aisle with the paper goods, he looked at all the shelves then noticed the clerk who looked stunned himself. “How in the SAM HELL does WalMart sell out of Toilet Paper son?” he screamed at the eighteen year old kid. “Sir, I don’t know what is going on. Is the world ending? I’m a little freaked out!” the clerk stammered. Tom realized that he was not to blame and as he calmed down said to the kid “Son, I don’t know what is going on either. It must be an ice storm on the way. Are you folks getting another truck soon?” The clerk said in a very low voice “Sir, I think there are two coming at 2 a.m. I would wait here if I were  you.” With that information Tom slinked outside to his car and called his wife at home just before midnight to tell her he would be staying to wait on the WalMart trucks.

1730 ET…February 21, 2010

It was a typical Sunday night in my household, a tremendous dinner, nice weather in Florida and of course a chance to chat with my friends online about the events of the world. The big news was that on Friday, February 19, 2010 the US Dollar Index closed at 69.07 far below any level in history and of course shattering all known technical support. As I grabbed a glass of Port and settled in front of my computer at 5 p.m. Eastern to watch the Asian fireworks and watch Bloomberg and CNBC-Asia on my computer, I noticed the Middle Eastern markets closed in horrid shape. The Israeli market closed three hours after the open and down 22% for the session. The Saudi markets closed after one hour and down 41%.  Other regional markets did not open or were shut down due to national emergency declarations. As I tuned in expecting the usual repeat on Bloomberg, it was live with a somewhat excited news babe reading information from a blog reporting “rumors” that the CEO’s of Citigroup and Bank of America were in meetings since 11 a.m. with the New York Fed. At that point, it was time to put the port up and break out the hard stuff.

Gold had closed at a record high again, up some $37 to finish Friday’s session up at $1289 and change so I figured it would be jumping again with all of this worldly instability on display. I searched the boards and feeds like mad, looking for anything on an Iranian attack or outbreak of war elsewhere in the world but nothing was found at all. As 6 p.m. Eastern flipped up on my watch, CNBC interrupted their programming with a live update from New York instead of Australia or Tokyo about the meeting at the NY Fed. Bloomberg also broke from their Asian coverage with a brief story but no details as to why there was a meeting today or who else was there.  As the New Zealand markets opened, the prices went nuts but shockingly to the upside. Their markets shot up 11% on the open to break over the 3900 price level but that was not the story. As the futures opened in Chicago for the evening session, no matter where you were in the world that day or night, you printed that screen at 6:04 p.m. Eastern time as the prints were staggering:

Gold UP $212.15 to $1501.15

Silver UP $39.13 to $81.06

US DOLLAR INDEX DOWN 9.5869 or just over 14% to 59.4830

US S&P FUTURES DOWN 49.13

US DOW FUTURES DOWN 472

NASDAQ FUTURES DOWN 135

Holy Smokes!  This was an absurd way to start the night and my phone started ringing along with text messages and emails out my wazoo. The sense of panic was evident on Bernie Lo’s face as he came on to the air discussing what was happening in the futures market and fortunately he announced that Jim Rogers would be joining him after the next break. As the commercial started at 6:09 p.m. Eastern the scroll at the bottom of the screen was bright red with the headline:

ALL U.S. EQUITY FUTURES ARE LOCK LIMIT DOWN…..TRADING SUSPENDED UNTIL 0900 ET MONDAY FEB 22….US DOLLAR BEING SOLD ACROSS THE BOARD

By 6:15 the Euro was trading at $1.92, the Kiwi (New Zealand Dollar) at $1.26, the Aussie Dollar well beyond par at $1.39 and the Canadian Loonie rocketing past par to $1.33. The U.S. Dollar was in a full fledged collapse and the world was putting money anywhere they could to escape the carnage. As the New Zealand equity markets struggled to handle the order flow an announcement emerged at 6:27 p.m. Eastern time that they would no longer accept U.S. dollars within their nation for the next 72 hours until the United States Federal Reserve Bank introduced stability measures.  That instantly turned a huge move to the upside to down 17% in less than three minutes and soon thereafter, trading was suspended by 7 p.m. Eastern time.  Instead of waiting to see what was next, I left at 6:51 p.m. to run down the street and take $500 from the local grocery store ATM,  returning just in time for the top of the hour news.

1900 ET

The Australian markets attempted to open but due to order imbalances they were delayed twenty-seven minutes. It was a buying frenzy in Australia also as the Aussie Dollar was skyrocketing higher and gold continued to gain, now up $273.20 per ounce in less than two hours of trading. The Chicago board was going to make a statement at 8 p.m. ET and the world was holding its collective breath because something bad was happening again in the United States and everyone wanted to buy into foreign markets to escape the American disaster on the horizon. After a brief opening, the Australian government followed suit with the New Zealand announcement and suspended acceptance of the U.S. Dollar for commerce until further notice. The Japanese were very quiet in the mean time as they announced at 7 p.m. they would keep their markets closed but the huge move in the Yen caused massive concerns as noted by the central bank. The yen appreciated from a close of 79.8213 on Friday the 19th to an opening of 48.7326 in less than an hour of trading. Nobody wanted dollars and even fewer people it was discovered wanted the British Pound.  The Pound for the first time in its history was worth less than 100 yen and it was well on its way to joining the US Dollar in a death spiral.

2000 ET

The internet is crawling. Message boards were lit up with record numbers of participants. Rumors swirled about declarations of martial law, bank holidays, secret wars and other crazy things. Yet my phone messages, conversations, texts and emails told me there was something very very wrong. Two of my friends called me to tell me the consequences of the failed 30 year bond auction last Thursday came home to roost over the weekend. Citi and BoA were rumored to have a huge CDS obligation due to the interest rates being blown outside of the norm and the 6.05% yield from the auction cost the banks an estimated $400 billion each if  they were forced to settle open swap contracts and derivative issues by Monday or the end of the month. The swaps and derivatives which were to prevent the collapse may actually have finally started it but nobody could verify anything that was happening as the NY Fed looked like a war zone with hundreds of cameras around the building and reporters speculating endlessly on every cable channel.

2100 ET

I did not know who to believe but when Bloomberg played the excerpt from Jim Rogers’ interview just after the top of the hour where he said “this is what a currency collapse looks like and if you were not prepared, you were wiped out” really resonated with everyone on the Bloomberg set and throughout the news worldwide. The Chicago Futures were closed by order of the CFTC and SEC and that was the big announcement but it was assumed anyways because there was no way the COMEX or anyone else could possibly have kept up with the demand for precious metals as the last print had gold over $1579 per ounce and worse, the base metals closing at obscene prices like $6.79 per lb. for copper! The Shanghai markets were ordered open for domestic participants only and no overseas selling was allowed nor trading in US Dollars thus allowing the communists to manage their banking situation without outside influence. Unfortunately a rumor was confirmed on FNC later in the hour that Chinese troops were deployed to all U.S. and British bank branches inside their nation. That only permeated the panic already felt on the internet and in the air. The news at the top of the hour was even more shocking.

2200 ET

CNN led the hour off with coverage of the “FINANCIAL CRISIS OF 2010″ with breaking news about two hedge fund managers committing suicide in their offices in New York. That did not help the confidence level nor did the statement from Treasury Secretary Timothy Geithner at 10:09 p.m. Eastern that the “government was in full control of the situation and that the panic world wide was unwarranted.”  When he finished the statement assuring that the financial markets would probably open on time in the morning, the snicker from CNBC’s team of Gasparino and Griffith spoke volumes about what was really occurring.

2300 ET

Somehow a picture of Goldman Sachs CEO Blankfein and JP Morgan’s CEO Jamie Dimon entering the New York Federal Reserve building was leaked out and broadcast on cable news and financial news outlets causing more discussions and a genuine sense of panic to grip everyone. Reports about credit cards not working for the last two hours nationwide were swamping the newsrooms but no comments from VISA, Master Charge or anyone else was forthcoming.

0000 ET February 22, 2010

It was officially a panic. Reports on local news stations about grocery store shelves being cleaned out and ATM machines running out of money hours ago and not being refilled were broadcast nationwide. Even my local station had a story about accessing the reporter’s bank account online and all they got was a very scary message as they attempted to reach his bank’s web page:

404-NOT FOUND

0100 ET

WWOR and WCBS started reporting that gas stations in the New York City and northern New Jersey areas were running out of gas even though credit cards did not work. The cable news stations and financial news networks just recycled earlier news with updates at the top of the hour. The world markets were closed and everyone was holding their breath to see what happened the next morning.

0200 ET

As I struggled to stay awake, NY Federal Reserve President Denis Hughes came to the microphones with Dimon, Blankfein and shockingly Ben Bernanke. Hughes immediately deferred to Bernanke who said that the President would address the nation at 7 a.m. Eastern Time and that he felt the crisis was averted for the moment and that everyone should have faith in the United State’s policy of a strong currency and banking system. After that statement was concluded, Bloomberg switched to a banking analyst from Singapore who said that the U.S. was now a hulking smoking black hole in the ground and the only thing it was good for was to return those worthless dollars back to “THAT” nation so “THEY” could burn them to stay warm this winter.

0300 ET

Someone on the message board posted a story from WTOP that military police were seen setting up roadblocks throughout Washington, D.C.  There was no video or other confirmation within that hour. I had to make double strength coffee at that point in time but instead set my alarm for 0500 to try to grab a nap. I was not about to miss what was going to be a day to remember in American history.

0509 ET

So sue me! I hit my snooze button then realized I fell asleep with the computer and television on and the news was flying. In big bold red at the top of CNBC’s screen was the announcement COUNTDOWN TO SPEECH and a counter moving towards 0700 Eastern. As I flipped the channels half awake, I noticed a BREAKING NEWS announcement on CNN and there was a feed from WSB in Atlanta, GA with their helicopter video of the Georgia State Patrol closing off all streets within three blocks of the Federal Reserve Bank in Atlanta and also around the Federal Home Loan Bank. That sent a chill down my spine as I flipped back on to the computer to see over two hundred unread emails and message upon message about shortages, internet outages, credit card problems and worst of all, gas stations running out of fuel. The other shocker was the suspension of international flights in many U.S. cities as the suppliers put every airline on C.O.D. effective immediately at 2:30 a.m. Eastern Time and that suspended a ton of flights inside the United States and worldwide. The cascading effects were stunning, even to those of us who were warning about it.

0530 ET

Several European markets attempted to open in coordination with Middle Eastern markets but the declines were so severe that within ten minutes of trading the authorities shut them all down within a half hour:

Russia -35%

Saudi Arabia -43%

Israel -22%

Switzerland -17%

Germany’s DAX -41%

CAC 40 – 29%

FTSE 100 – 32%

The Euro was up another 10% against the dollar and the Swiss Franc was now worth over $1.40 U.S. As the discussions about the problems with the U.S. dollar accelerated, banks were being shut down in Europe in nation after nation to prevent runs. Sadly for the Brits, the Sterling was now trading so poorly in Europe that it was worth just 1/3 of a Euro at some trading desks. By the top of the hour, video of riots in front of banks in Frankfurt and Glasgow were broadcast nationwide.  At 5:55 a.m. Eastern the news took a dark turn with this BREAKING NEWS headline:

OBAMA AND BERNANKE TO SPEAK TO THE NATION AT 6 A.M. EST

0600 ET

The speech was low key, solemn and to the point. Obama announced a one week bank holiday. All credit card transactions and all collection actions of any sort were hereby suspended for seven days.  All financial markets were closed until further notice.  All mortgage and bill payment due dates were suspended for thirty days and no past due notices nor penalties were to be allowed by Federal Law. All schools were closed for seventy-two hours be they public or private.  The city of Washington, D.C. was hereby declared to be under a state of martial law and all citizens were ordered to observe a curfew from 8 p.m. to 8 a.m. daily. Just as that sunk in, Ben Bernanke stepped up to the microphone to announce that President Obama, Treasury Secretary Geithner and all of the Federal Reserve Presidents along with himself were going to depart for Geneva for an emergency meeting of the G-20, IMF, World Bank and United Nations Financial Stability Working Group.  Bernanke also announced that Citigroup, N.A. and Bank of America were hereby nationalized and placed under control of the United States Treasury under the auspices of the FDIC and that Sheila Bair would have an announcement at 8 a.m. Eastern. As he finished the announcement, an obviously exhausted Federal Reserve Chairman concluded by assuring the citizens of the nation that a stable currency was their only goal from this meeting of world financial leaders. I noted he did not say what currency though he was referring to.

0800 ET

By now, CNBC, Fox Business and Bloomberg were knee deep in wall to wall coverage but so were the broadcast and cable networks. America was on the brink was the preaching and screaming and the “bulls” were being gored by the permabears every time they uttered any statements about “how we’ve been through worse” etc., etc.

The announcement of the seizure by the FDIC of two of the largest banks in the world was pretty standard and short. The follow up statement by Ms. Barr though is what caused every newsroom to take pause when she stated that “further consolidations will be announced in the next seventy-two hours.”

The Bubblemedia was stunned and even shocked when Canada announced that they would attempt to open their financial markets for two hours of trading and that their banks would be open for normal domestic customers and business from 10 a.m. until noon Eastern time.  Everyone on television looked at each other and just asked “How?”

0900 ET

I had forgotten to call in sick to work but then again the phone call from the company owner was pretty much a “well now what” as we laughed in a gallows humor discussion. He understood why I was home and he had already told the employees that he was closing at noon and would reopen when we could actually collect real money on what we sold and leased out. I told him I would call him at home later or meet him with a bottle on the golf course in the morning, weather permitting.

The chilling video of the Federal Reserve heads, Geithner and Obama boarding Air Force One to leave for Geneva from Washington, D.C. really had an impact on me.

1000 ET

The Canadian markets opened up 10% in ten minutes then rolled over down 31% by 10:30. The scary part was that the Canadian dollar kept on rising even though commodity trading was suspended and everyone was wondering just what gold would be priced at if the markets were allowed to trade.

As the day wore on, it was a blur of shocking story after shocking story. The President and his entourage arrived in Switzerland along with other world leaders but little was discussed or disclosed. The reports of banks being fire bombed by nuts throughout parts of the U.S. made the international news and caused all of us to feel somewhat uncomfortable as to what was next. The 8 p.m. interruption of normal prime time programming with a FEMA NEWS ALERT which lasted ten minutes and was repeated at the top of every hour with little if any information caused even more panic in the masses. Today I watched our dollar die in a matter of hours even though I knew how it was killed months if not years ago. I just wondered how bad the announcement out of Geneva was going to be as our bankers and politicians sold our souls out to save their rear ends.

I also wondered if I would ever sleep again.

(To continue reading this fictional account see Part II and Part III.)


Environmentalism, Liberty, and the Socialist Agenda

Environmentalism, Liberty, and the Socialist Agenda

By freemarketstudies

It is no doubt honorable for man to take care of his surroundings and eliminate waste where he can.  What is dishonorable is when those pretended “enlightened ones” use this worthy cause to further their hidden agenda.

There are certain types of people in the world who feel that they have the superiority to decide what is best for other people.  In this assumed superiority they feel it is their right to control others and to deprive them of their free agency.  These central planners are drawn by the lures of power – the ultimate power being able to decide the fate of the “lessor ones”.    These people are Socialists.  W. Cleon Skousen, in his book The Naked Communist, describes this personality as “the criminal mind”.  The criminal mind has no conscience nor morals.  It is evil and has no hesitation in lying to achieve its objectives.  It is fundamentally anti-human.

There are three important parts in this article that reveal the hidden motivations present in the current environmentalist movement.  The conclusion is that this agenda – if not stopped – will enlarge socialism (under the guise of “environmentalism”) which can only result in the further loss of individual liberty.

Part One:

The following excerpt is from a 2001 interview Dr. George Reisman, economics professor at Pepperdine University:

AEN: On environmentalism, you seem to go way beyond your teacher.

REISMAN: Mises has some relevant discussions. For example, he speaks about monopoly pricing of very scarce resources acting as a means of conservation. But mostly, this political ideology we call environmentalism began in the mid-1960s. I remember that I was in San Francisco in 1967, reading a column by Eric Severeid. He predicted that environmentalism would be a leading political movement in the next decade. I recall thinking: that’s preposterous.  It seemed so ridiculous, I couldn’t understand how anyone could take it seriously.

The whole movement seemed to grow out of Lady Bird Johnson’s objections to billboards on interstate highways. It began as a kind of silly political program to get rid of junkyards because they were unsightly. I recall that Al Capp had a solution to the problem of junkyards. He wanted Andy Warhol to put his signature on them and call them works of art. That was about the level of answer the whole thing deserved.

AEN: But in time, the movement would grow.

REISMAN: It is so large that it is impossible to get away from. A student told me that as a child he was exposed to all sorts of cartoons featuring children who fight dirty capitalists who own sludge factories. These kids are being indoctrinated, not only by cartoons but in school and in the culture at large.

What’s at issue here is a philosophical problem. The movement is fundamentally antihuman. That is what motivates it. This is a more widely occurring phenomenon than you might suppose. We know of serial killers, but every once in a while similar mentalities gain political power, as happened with the communists and the Nazis. There is a lot of hatred and hostility in many people that is just looking for something to attach itself to.

AEN: An attack on human life by another means.

REISMAN: That is essentially what environmentalism amounts to. It is the political movement where the destructive impulse has parked itself today. First you have the hatred, then you have a cultural vehicle, such as a totalitarian political movement or an insane religion, that allows and encourages the hatred to be expressed.

Intellectually, environmentalism is nothing more than the death rattle of socialism and should be much easier to overcome. Socialists used to masquerade as defenders of science and reason, and now they are openly anti-science and technology, as we see with environmentalism.

AEN: Also, they don’t promise to better our lot.

REISMAN: It’s true that the communists always claimed that if they had control, they would improve the material lot of mankind. The environmentalists don’t offer that; quite the opposite, they say that mankind is too well off.  They claim they want collectivist control in order to avoid what they claim will be immense catastrophe.

But their idea of success is thwarting human success. In their view, the environment is only destroyed by human beings. The caribou eat the vegetation, and that’s okay. The wolves kill the caribou, and that’s okay. Microbes are  killing them both, and that’s okay. The only thing that’s not okay is if human beings attempt to do anything. Only then does the environment need protection,  in their view. We can conclude from this that it is only human beings they are really after.

AEN: What about the economic arguments?

REISMAN: We can distinguish between two types of natural resources: what nature provides and the fraction of what nature provides that man has become able to make useable and accessible. The whole physical world and universe consists of nothing but natural resources— matter, in all of its elemental forms, and energy, in all of its forms—provided by nature. The useable, accessible fraction of those resources can be progressively enlarged.

Menger speaks to this issue. He shows that we must create the goods character of any resource. If we do not, it is not a good and has no value. The more knowledge and physical power we exercise over nature, the larger becomes the supply of useable, accessible natural resources.

Our use of nature’s resources—of the chemical elements and energy provided by nature—does not reduce their overall physical quantity. It merely improves their relationship to our well-being. It thereby improves the external material conditions of our lives, which means: it improves our environment.

Despite all the propaganda, the market has led to vast improvements in such things as air quality. The fact that I’m sitting in an air-conditioned room in August in Alabama and not sweating is quite a testimonial to the improvement in air quality. So is central heating in winter time, and modern ventilation systems in kitchens and bathrooms. So is the automobile, which has eliminated the stench of horse manure and horse urine in the streets.   So is the iron and steel industry, which made possible the low-cost pipe that enabled the streets to stop serving as sewers.

AEN: What other problems are they responsible for?

REISMAN: The waste involved in the forcible imposition of environmental regulations is incalculable.

Part Two:

Here is a post by Dr. Gary North:

It’s Not Just That Global Warming Is Fake. What Matters Is Why This Fakery Is Being Promoted.

Gary North

July 3, 2009

Global warming is based 100% on junk science. The most vocal promoters are not interested in the details of physical science. They are interested in two things: political control over the general public and the establishment of international socialism.

Junk Science vs. Real Science

For a detailed, footnoted, 12-page article, written by three scientists, two with Ph.D’s from CalTech, click here.

This paper was sent to tens of thousands of natural scientists in the United States.

Over 31,000 scientists have put their reputations on the line and signed a politically incorrect petition opposing the 1997 Kyoto agreement or protocol. Here is a photocopy of a signed petition.

Here is a letter from a former president of the National Academy of Sciences. He asks recipients of the petition to sign it.

Back in the 1970′s, the bugaboo was the coming ice age, as this Time Magazine article promoted. Not to be outdone, Newsweek got on board. The article warned: “Climatologists are pessimistic that political leaders will take any positive action to compensate for the climatic change, or even to allay its effects.” Want more examples? Click here.

It, too, was based on junk science. It, too, had the same solution: government control over the economy. The goal never changes: government management over the economy. The justification has changed. If the voters won’t accept control over their lives on the basis of one brand of junk science, maybe they will accept another. As they used to say in the Nixon Administration: “Let’s run this up the flagpole and see if anyone salutes.”

Socialism’s Last Stand

The global warming movement is not about global warming. It is about the creation of an international political control arrangement by which bureaucrats who favor socialism can gain control over the international economy.

This strategy was stated boldly by economist Robert Heilbroner in 1990. Heilbroner, the multi-millionaire socialist and author of the best-selling history of economic thought, The Worldly Philosophers, wrote the manifesto for these bureaucrats. He did this in an article, “Reflections: After Communism,” published by The New Yorker (Sept. 10, 1990).

In this article, he made an astounding admission. He said that Ludwig von Mises had been right in 1920 in his article, “Economic Calculation in the Socialist Commonwealth.” Mises argued that without private ownership, central planners could not know what any resource is worth to consumers. With no capital market, the planners would be flying blind.

Heilbroner said that for 70 years, academic economists had either ignored this article or dismissed it without answering it. Then Heilbroner wrote these words: “Mises was right.”

Heilbroner was one of these people. There is no reference to Mises in The Worldly Philosophers.

This admission was the preliminary section of Heilbroner’s manifesto. He was cutting off all hope by socialists that there is a theoretically plausible response to Mises. The free market economy will always outproduce a socialist economy. Get used to it, he said.

Then, in the second section, he called on his socialist peers to get behind the ecology movement. Here, he said, is the best political means for promoting central planning, despite its inefficiency. In the name of ecology, he said, socialists can get a hearing from politicians and voters.

The article is not online. An abstract is. Here is the concluding thought of the abstract.

The direction in which things are headed is some version of capitalism, whatever its title. In Eastern Europe, the new system is referred to as Not Socialism. Socialism may not continue as an important force now that Communism is finished. But another way of looking at socialism is as the society that must emerge if humanity is to cope with the ecological burden that economic growth is placing on the environment. From this perspective, the long vista after Communism leads through capitalism into a still unexplored world that roust [must?] be safely attained and settled before it can be named.Heilbroner did not care that a worldwide government-run economic planning system would not be called called socialism. He just wanted to see the system set up.

Heilbroner’s peers got the message. That was what Kyoto was all about.

Conclusion

If you like poverty, inefficiency, and bureaucratic controls over the economy, and therefore control over your choices, the “climate change” movement is ideal.

If you want to subsidize China and India, neither of which will enforce the rules laid down by unelected international bureaucrats, this movement is for you.

If you want to pay more for less energy, there is no better way than to pass the cap and tax bill which the House has passed. It will be sent to the U.S. Senate next week.

The rest of us should oppose it.

I hereby authorize anyone to reprint this article or post it on any website, just so long as the text is not changed.© 2005-2009 GaryNorth.Com, Inc. All Rights Reserved. Reproduction without permission prohibited.

Part Three:

Now we come to see the “criminal mind” unmasked through this bombshell story:

ClimateGate – Climate center’s server hacked revealing documents and emails

November 20, 7:27 AMClimate Change Examiner – Tony Hake

Britain’s Climate Research Unit, University of East Anglia, suffered a data breach in recent days when a hacker apparently broke into their system and made away with thousands of emails and documents. The stolen data was then posted to a Russian server and has quickly made the rounds among climate skeptics. The documents within the archive, if proven to be authentic, would at best be embarrassing for many prominent climate researchers and at worst, damning.

Story recap & latest news: ClimateGate emails provide unwanted scrutiny of climate scientists

The electronic break in itself has been verified by the director of the research unit, Professor Phil Jones. He told Britain’s Investigate magazine’s TGIF Edition “It was a hacker. We were aware of this about three or four days ago that someone had hacked into our system and taken and copied loads of data files and emails.”

The file that has been making the rounds was initially brought to light by the website The Air Vent. The 61mb file contains thousands of documents and emails. As the archive was just discovered within the last 24 hours, its authenticity has not been determined and as such readers should cast a skeptical eye on the contents.  It should also be noted that it appears the emails were illegally obtained by whoever originally posted them.

At least one person that was included in some of the correspondence, Steve McIntyre of the website Climate Audit, verified the authenticity of at least some of the messages. McIntyre said, “Every email that I’ve examined so far looks genuine. There are a few emails of mine that are 100% genuine. It is really quite breathtaking.”

The contents of the archive contain documents and email correspondence from a veritable who’s who in climate science. Among those included in the emails are Phil Jones, Keith Briffa, his assistant, Michael Mann of the University of Virginia, Malcolm Hughes at the University of Arizona, Kevin Trenberth at the National Center for Atmospheric Research, James Hansen of NASA’s Goddard Institute of Space Studies and others.

The emails contain an array of discussions including what appear to be concerted efforts to withhold data. Just as troubling is conversations that allude to potentially manipulating climate data to “hide the decline” of temperatures seen in the last decade.

Some of the excerpts of emails within the archives (edited for brevity, emphasis added):

From Michael E. Mann (witholding of information / data):

“Dear Phil and Gabi,
I’ve attached a cleaned-up and commented version of the matlab code that I wrote for doing the Mann and Jones (2003) composites. I did this knowing that Phil and I are likely to have to respond to more crap criticisms from the idiots in the near future, so best to clean up the code and provide to some of my close colleagues in case they want to test it, etc. Please feel free to use this code for your own internal purposes, but don’t pass it along where it may get into the hands of the wrong people.”

From Nick McKay (modifying data):

“The Korttajarvi record was oriented in the reconstruction in the way that McIntyre said. I took a look at the original reference – the temperature proxy we looked at is x-ray density, which the author interprets to be inversely related to temperature. We had higher values as warmer in the reconstruction, so it looks to me like we got it wrong, unless we decided to reinterpret the record which I don’t remember. Darrell, does this sound right to you?”
From Tom Wigley (acknowleding the urban effect):

“We probably need to say more about this. Land warming since 1980 has been twice the ocean warming — and skeptics might claim that this proves that urban warming is real and important.”

From Phil Jones (modification of data to hide unwanted results):

“I’ve just completed Mike’s Nature trick of adding in the real temps to each series for the last 20 years (ie from 1981 onwards) amd from 1961 for Keith’s to hide the decline.”

From Kevin Trenberth (failure of computer models):

“The fact is that we can’t account for the lack of warming at the moment and it is a travesty that we can’t. The CERES data published in the August BAMS 09 supplement on 2008 shows there should be even more warming: but the data are surely wrong. Our observing system is inadequate.”

From Michael Mann (truth doesn’t matter):

“Perhaps we’ll do a simple update to  the Yamal post, e.g. linking Keith/s new page–Gavin t?  As to the issues of robustness, particularly w.r.t. inclusion of the Yamal series, we  actually emphasized that (including the Osborn and Briffa ’06 sensitivity test) in our  original post! As we all know, this isn’t about truth at all, its about plausibly deniable accusations.”

From Phil Jones (witholding of data):

“The skeptics seem to be building up a head of steam here! …  The IPCC comes in for a lot of stick. Leave it to you to delete as appropriate! Cheers Phil
PS I’m getting hassled by a couple of people to release the CRU station temperature data. Don’t any of you three tell anybody that the UK has a Freedom of Information Act !”

From Michael E. Mann (using a website to control the message, hide dissent):

“Anyway, I wanted you guys to know that you’re free to use RC [RealClimate.org - A supposed neutral climate change website] Rein any way you think would be helpful. Gavin and I are going to be careful about what comments we screen through, and we’ll be very careful to answer any questions that come up to any extent we can. On the other hand, you might want to visit the thread and post replies yourself. We can hold comments up in the queue and contact you about whether or not you think they should be screened through or not, and if so, any comments you’d like us to include.”

From Phil Jones (witholding of data):

“If FOIA does ever get used by anyone, there is also IPR to consider as well. Data is covered by all the agreements we sign with people, so I will be hiding behind them.”

If the emails and documents are a forgery, it would be an extremely large one that would likely have taken months to setup. No doubt much more will be coming out about these emails and their possible authenticity. Stay tuned to the Climate Change Examiner for updates as more information becomes available.

Update, 10:30am – Since the original publication of this article, the story is gaining steam and now the BBC is reporting on it. They report that a spokesman for the University of East Anglia’s Climatic Research Unit (CRU), “We are aware that information from a server used for research information in one area of the university has been made available on public websites.”

Analysis of the emails and documents in the archives continues. We must stress that the authenticity has not been proven however there have been no denials of such by the climate center.  Some of the more recent revelations include:

From Phil Jones (destroying of emails / evidence):

“Mike, Can you delete any emails you may have had with Keith re AR4? Keith will do likewise. He’s not in at the moment – minor family crisis. Can you also email Gene and get him to do the same? I don’t have his new email address. We will be getting Caspar to do likewise.”

From Tom Wigley (data modification):

“Phil, Here are some speculations on correcting SSTs to partly explain the 1940s warming blip. If you look at the attached plot you will see that the land also shows the 1940s blip (as I’m sure you know). So, if we could reduce the ocean blip by, say, 0.15 degC, then this would be significant for the global mean — but we’d still have to explain the land blip. I’ve chosen 0.15 here deliberately. This still leaves an ocean blip, and i think one needs to have some form of ocean blip to explain the land blip (via either some common forcing, or ocean forcing land, or vice versa, or all of these). When you look at other blips, the land blips are 1.5 to 2 times (roughly) the ocean blips — higher sensitivity plus thermal inertia effects. My 0.15 adjustment leaves things consistent with this, so you can see where I am coming from. Removing ENSO does not affect this. It would be good to remove at least part of the 1940s blip, but we are still left with “why the blip”. Let me go further. If you look at NH vs SH and the aerosol effect (qualitatively or with MAGICC) then with a reduced ocean blip we get continuous warming in the SH, and a cooling in the NH — just as one would expect with mainly NH aerosols. The other interesting thing is (as Foukal et al. note — from MAGICC) that the 1910-40 warming cannot be solar. The Sun can get at most 10% of this with Wang et al solar, less with Foukal solar. So this may well be NADW, as Sarah and I noted in 1987 (and also Schlesinger later). A reduced SST blip in the 1940s makes the 1910-40 warming larger than the SH (which it currently is not) — but not really enough. So … why was the SH so cold around 1910? Another SST problem? (SH/NH data also attached.) This stuff is in a report I am writing for EPRI, so I’d appreciate any comments you (and Ben) might have. Tom.”

From  Thomas R Karl (witholding data) :

“We should be able to  conduct our scientific research without constant fear of an “audit” by Steven McIntyre;  without having to weigh every word we write in every email we send to our scientific colleagues.  In my opinion, Steven McIntyre is the self-appointed Joe McCarthy of climate science. I  am unwilling to submit to this McCarthy-style investigation of my scientific research.  As you know, I have refused to send McIntyre the “derived” model data he requests, since all of the primary model data necessary to replicate our results are freely available to  him. I will continue to refuse such data requests in the future. Nor will I provide  McIntyre with computer programs, email correspondence, etc. I feel very strongly about  these issues. We should not be coerced by the scientific equivalent of a playground bully.  I will be consulting LLNL’s Legal Affairs Office in order to determine how the DOE and LLNL should respond to any FOI requests that we receive from McIntyre.”

From Tom Wigley (ousting of a skeptic from a professional organization):

“Proving bad behavior here is very difficult. If you think that Saiers is in the greenhouse skeptics camp, then, if we can find documentary evidence of this, we could go through official AGU channels to get him ousted.”

From Phil Jones (forging of dates):

“Gene/Caspar, Good to see these two out. Wahl/Ammann doesn’t appear to be in CC’s online first, but comes up if you search.  You likely know that McIntyre will check this one to make sure it hasn’t changed since the IPCC close-off date July 2006! Hard copies of the WG1 report from CUP have arrived here today. Ammann/Wahl – try and change the Received date!  Don’t give those skeptics something to amuse themselves with.”

From a document titled “jones-foiathoughts.doc” (witholding of data):

“Options appear to be:
1. Send them the data
2. Send them a subset removing station data from some of the countries who made us pay in the normals papers of Hulme et al. (1990s) and also any number that David can remember. This should also omit some other countries like (Australia, NZ, Canada, Antarctica). Also could extract some of the sources that Anders added in (31-38 source codes in J&M 2003). Also should remove many of the early stations that we coded up in the 1980s.
3. Send them the raw data as is, by reconstructing it from GHCN. How could this be done? Replace all stations where the WMO ID agrees with what is in GHCN. This would be the raw data, but it would annoy them.”

From Mick Kelly (modifying data to hide cooling):

“Yeah, it wasn’t so much 1998 and all that that I was concerned about, used to dealing with that, but the possibility that we might be going through a longer – 10 year – period of relatively stable temperatures beyond what you might expect from La Nina etc. Speculation, but if I see this as a possibility then others might also. Anyway, I’ll maybe cut the last few points off the filtered curve before I give the talk again as that’s trending down as a result of the end effects and the recent cold-ish years.”

Update, 3:45pm MDT: In regards to the authenticity, not one report disputing the veracity of the emails has come out. Many sources have talked to some of the email authors and they have not disputed the messages.

It would appear at this point that there is little doubt that the emails are authentic.  If they were not, the principle players would certainly have said so by now.