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Friday, February 24, 2012

Babylon Rising Part Two

Joseph Herrin (02-14-2012)

Each day when I get up I consider what subject I should address in my writings. I have been desiring to return to the series No Apologies and finish it up. I have been experiencing what some might describe as “writer’s block” on this series. I suspect there are spiritual forces weighing in on this matter, for the entire series, although anointed, has come forth with great difficulty.

Perhaps the difficulty was in part due to the Father wanting me to pay attention to some current events at this season as well, for there have been many parables to be plumbed in a variety of national and world events, including Joe Paterno’s passing, the Costa Concordia disaster, the symbolism found in Super Bowl XLVI, and the death of Whitney Houston a few days ago. Much more could be written on these subjects, but I seek to be discerning of how much attention the Father would have me to give to each matter.

I was made aware of Nicki Minaj’s performance at the Grammy Awards Sunday night. Although the performance was definitely Satanically inspired, I am not inclined to spend time digging through the rubbish to discern the message at this time. Suffice it to say that we live in very dark days of which the prophet Isaiah spoke.

Isaiah 60:2

For behold, the darkness shall cover the earth, and deep darkness the people; but Yahweh will arise over you, and His glory will be seen upon you.

This world is growing increasingly dark as Satan is marshaling his forces and extending his visible control over the earth, its governments, media, finances, entertainments, and even its religions. With 2012 being the year of the Water Dragon according to the Chinese calendar, it seems timely that the adversary of all that is righteous and holy should be pouring forth rivers of deception and filth from his mouth.

Revelation 12:15-16

So the serpent spewed water out of his mouth like a flood after the woman, that he might cause her to be carried away by the flood. But the earth helped the woman, and the earth opened its mouth and swallowed up the flood which the dragon had spewed out of his mouth.

Truly the world is drinking up that which Satan pours forth. We live in an hour when many plans of the adversary will be brought to fruition. The long sought after rebuilding of Babylon upon the earth is at hand. The nations will be brought back under the government of a single ruler who will be a pawn of Satan.

I have spoken of this work of Satan in seeking to overturn the judgment of Yahweh at Babel on a number of occasions. Satan’s work goes on apace and is approaching its grand fulfillment even as we see the One World Trade Center rising to its predicted completion in the year 2013. The number 13 is Biblically significant. Satan is the first and chief rebel against Yahweh, and the number 13 is the number of rebellion.

We must go back to the first occurrence of the number thirteen [in scripture] in order to discover the key to its significance. It occurs first in Gen 14:4, where we read "Twelve years they served Chedorlaomer, and the thirteenth year they REBELLED."

Hence every occurrence of the number thirteen, and likewise of every multiple of it, stamps that with which it stands in connection with rebellion, apostasy, defection, corruption, disintegration, revolution, or some kindred idea.

[E.W. Bullinger, Number in Scripture]

Bullinger provides fascinating and overwhelming evidence that the number 13 is employed by Yahweh to denote rebellion, having clear links to both men and angels who rebelled against God.


It is not to be wondered at that Madonna’s half-time show at Super Bowl XLVI was 13 minutes in length. It served as an announcement of Satan rising, as was observed in a myriad of symbols from the all-seeing eye and pyramid forms

to the final dark image of the Phoenix rising as the words “World Peace” were displayed.

Emblematically, the words “World Peace” form the fire from which the Phoenix is rising, signifying that it is through the removal of peace from the earth that Satan will establish his kingdom. Satan will bring such bloodshed, war, famine, suffering and calamity to the earth that all mankind will cry out for a savior to deliver them. Satan’s man will then be presented, offering peace to the world.

On February 17th, 1950, James Paul Warburg, son of Paul Warburg who was a driving force behind the establishment of the Federal Reserve System, spoke the following before the United States Senate:

We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.

Henry Kissinger spoke at the Bilderberger Conference, Evians, France, in 1991. During his speech he stated:

Today, America would be outraged if U.N. troops entered Los Angeles to restore order [referring to the 1991 LA Riot]. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.

It must be understood by Christians that the establishment of a one world government is not the scheme of a cabal of super wealthy men and women. Satan is the author of it. He desires to unite all mankind under his rule as an act of usurpation and rebellion against Yahweh. Ever since the scattering of mankind at the Tower of Babel, the devil has been laboring to unite mankind that he might openly declare his rule over all.

The phrase “E pluribus Unum” which is found on the money of America is a declaration of Satan’s plan. This Latin phrase is translated as “Out of Many, One.” Yahweh took a single race of men with one language and purpose, and divided them. He confused their languages, giving to mankind a variety of tongues, that they might scatter into families, tribes, and nations. Satan, ever the rebel, is seeking to unite the nations again.

United Nations Plaza, New York

The UN Plaza occupies an 18 acre site (6+6+6) on the East River in New York City. Its main building is 39 stories tall (13+13+13).

[Data Source: http://www.un.org/cyberschoolbus/untour/subunh.htm]

The existence of the United Nations serves as a testimony to the lateness of the hour and the closeness of the end of the age when Satan will establish his rule over a united mankind.

Revelation 13:3-8

And all the world marveled and followed the beast. So they worshiped the dragon who gave authority to the beast; and they worshiped the beast, saying, "Who is like the beast? Who is able to make war with him?" And he was given a mouth speaking great things and blasphemies, and he was given authority to continue for forty-two months. Then he opened his mouth in blasphemy against God, to blaspheme His name, His tabernacle, and those who dwell in heaven. It was granted to him to make war with the saints and to overcome them. And authority was given him over every tribe, tongue, and nation. All who dwell on the earth will worship him, whose names have not been written in the Book of Life of the Lamb slain from the foundation of the world.

It is hard for my mind to conceive that I am living in that hour when those things prophesied 2,000 years ago by the apostle John must be fulfilled. I do not doubt that your own mind grapples with the reality of these things. Yet, the signs are all being fulfilled. The world is marching toward a fulfillment of things prophesied long ago. As Christians, we need to understand the hour we live in.

A sister in Christ (Thanks Dianne) recently sent me a link to a children’s book that is in print at this hour that focuses upon President Barack Obama. Everywhere one looks they are being met with the evidence that the plans of Satan are nearing completion.

Out of Many, One (Available on Amazon)

It has been previously noted in this blog that the day the results of the election were announced for President of the United States in 2008, the Illinois Pick Three lottery came up with the winning numbers 6 - 6 - 6. Barack Obama’s campaign headquarters in Chicago had the zip code 60606. The Secret Service has nicknamed the limousine that the President rides in as “The Beast.” Such things are not Internet rumor. I have verified each item personally, and have shared links in previous posts where readers might validate the information themselves.

(Image copied from the Chicago Tribune website.)

For those who are interested in the symbolism of the other lottery results that same day, the number seven denotes fulness of time in Scripture, and the number 9 denotes judgment. America has reached its end of days as a free nation. She has been given into the hands of brutal men skilled in destruction. Tragically, much of the church goes on unaware of the hour they live in, or the terrible events that are even now at the doorstep.

Do not be swept away with the flood of deception and corruption that Satan is spewing forth. Seek Yahweh now. Surrender your life to the leading of His Spirit. Begin to experience what it is to be led of the Spirit in your daily life and every decision. Invite the Father to lead you on that narrow path that leads to life, of which Christ testified there would be few who would find it.

I would correct a statement I made in the post titled Super Bowl XLVI - Strange Flesh and Giants. I had mentioned that the stage resembled a spaceship that landed atop a pyramid in the movie Stargate. This statement inadvertently led some on a wild goose chase as they sought to provide pictures for me of the spaceship in that movie. Seeing the images, I realized I had wrongly identified the movie in which I had seen this image. The actual movie was Dune. I have provided the pictures below to show the similarity.

Emperor Shaddam’s Ship

Emperor’s Ship on its Base

Madonna Super Bowl Stage (Rays of Light form Pyramid on Floor)

In the movie Dune, the Emperor Shaddam (Satan), ruler of the known Universe, arrives in a ship that rests atop a pyramid, paralleling that image which Satan has employed to represent his rule over the world.

Maryland Senate passes gay marriage bill

I Timothy 1:8-11

Gov. Martin O'Malley's bill to legalize same-sex marriage quickly won approval in the Maryland Senate Thursday night. The measure now needs the governor's signature.

Cheers erupted in the Senate chambers after the 25-22 vote was read out loud and the group of seven gay and lesbian lawmakers from the House of Delegates rushed to the middle of the floor to embrace supportive senators.

"I think I'm speechless," said Sen. Richard Madaleno, the only openly gay senator. "This is a remarkable day."

O'Malley, a Democrat, shook hands with activists after the vote. "This has been a difficult issue for many people," he said. "But as one Maryland we came together around the principal of human dignity. … It does feel good to have this issue resolved."

The vote makes Maryland the eighth state to approve gay nuptials — and the fourth state legislature to do so in the past 12 months.

Underscoring how the debate has put Maryland in the national spotlight, reaction came swiftly from U.S. House Democratic Leader Nancy Pelosi, who called it "an extraordinary victory," and several D.C.-based gay rights groups.

The approval in Annapolis caps years of failed attempts by gay-rights advocates to gain equal access to marriage and the legal protections that accompany the union. The governor said he plans to sign the legislation next week.

Implementation of the measure is far from certain. Even supporters concede that the law will likely be petitioned to referendum, and they expect Maryland voters to have the final say in November. The legislation has an effective date of January 2013 — well after the November election.

"We move on to the next phase," said Senate Republican leader E.J. Pipkin, who tried to defeat the bill. "There will be a robust referendum effort." Recent polls have shown that Marylanders are evenly split on the issue, so it is difficult to predict what will happen at the ballot box.

Still, supporters rejoiced. Among those who came to witness the vote from the Senate galleries — and applaud its outcome — were Katie Fitzsimmons and Coley Haywood of Annapolis, a gay couple who would like to marry.

Fitzsimmons, 32, said she was overjoyed. "I can't explain the emotion. I was smiling and then I was crying," she said.

The pair, who have been a couple for four years, said they have waited to get married until they could do so in Maryland. If the law survives the expected referendum, "we'll get married right away," Fitzsimmons said. "It's a game-changer. This changes our lives forever," she said.

"We can be equal with everyone else," said Haywood, 31. "Our friends and family can't wait."

Just three years ago, the same-sex marriage effort in Maryland seemed stalled because a key Senate committee lacked the votes needed to move a bill to the floor. That changed after the 2010 election, when the chamber picked up two more Democrats and Senate President Thomas V. Mike Miller reconfigured the membership of all committees.

Miller never supported the bill, but he allowed it to come to the floor and worked to ensure that a filibuster could be cut off if needed. He took the unusual step of explaining his red vote from the rostrum.

"I don't think this is civil rights, but this is history," he said.

"Am I on the wrong side of history?" Miller asked. "As a historian, there is no doubt about it. But I understand that and I'll deal with that in my own mind. I believe marriage is between a husband and a wife, and that is why I voted the way I did," Miller said.

Opponents were initially caught off guard last year when a same-sex marriage bill cleared the Senate, but activists — primarily from black churches and the Maryland Catholic Conference — put their forces together. The bill stalled in the House of Delegates; it was pulled from the floor when supporters realized they did not have the votes for passage.

This year, the governor put his name, and the full force of his office, behind the bill. He worked closely with a progressive coalition and House Democratic leaders to find the votes needed.

Baltimore Sun

Iran court convicts Christian pastor to death for apostasy from Islam, Any comment for this Mr. President?

Germany’s top human rights official is urging Iran to release a pastor sentenced to death for converting to Christianity.

Markus Loening said Wednesday the German government is extremely concerned about Yusuf Naderkhani’s fate amid reports of his imminent execution.

Loening urged Tehran to “release Naderkhani, lift his death sentence and grant him a fair trial.”
He says an execution also breaches international obligations guaranteeing religious freedom.

Naderkhani, who is in his early 30s, converted to Christianity when he was 19 and later became a pastor in the Iranian city of Rasht. He was convicted of apostasy in 2010.

Wintery Knight

Obama sends letter of apology for Qur'an burning

KABUL, Afghanistan — President Barack Obama apologized Thursday for the burning of copies of the Muslim holy book at a U.S. military base this week, as violent protests raging nationwide led a man dressed in an Afghan army uniform to kill two U.S. troops.

The Afghans' furious response to the Qur'an burning -- three days of riots in several cities nationwide -- reflected the anger at what they perceive as foreign forces disrespect for Afghan laws and culture.

In a letter sent to Afghan President Hamid Karzai, Obama expressed his administration's "regret and apologies over the incident in which religious materials were unintentionally mishandled," White House national security council spokesman Tommy Vietor said. He added that the letter was delivered by Ryan Crocker, the U.S. ambassador to Afghanistan, Thursday afternoon.

Karzai's office said Obama called the Qur'an burnings "inadvertent," adding that the U.S. "will take the appropriate steps to avoid any recurrence, to include holding accountable those responsible."

U.S. apologies for the desecration -- and an appeal from Karzai for calm -- have failed to temper the anger of Afghans, who staged rallies in seven provinces Thursday, sparking clashes with Afghan police and security forces that left at least five demonstrators dead. Seven protesters were killed in clashes on Wednesday.

The two NATO service members were killed in eastern Afghanistan by a man dressed in an Afghan army uniform. Both troops were Americans, according to a U.S. official, who confirmed their nationalities on condition of anonymity because he was not authorized to disclose the information.

Mohammad Hassan, an official in Nangarhar province where the shooting took place, said the two Americans were shot by an Afghan soldier after soldiers fired in the air to disperse protesters outside a U.S. base in the Khogyani district. Two protesters were also killed in the ensuing gunfire, Afghan officials said.

A rising number of Afghan security forces, or militants wearing their uniforms, have shot and killed U.S. and NATO service members.

The Taliban on Thursday called on Afghans to attack foreign troops, and their spokesman has issued a statement ordering its commanders to embrace and protect the families of any Afghan policeman or soldier who turns his gun on foreign troops. "Call them heroes," he said.

Protesters also rioted outside a U.S. base in Mehterlam, the capital of Laghman province. Police broke up a demonstration using water cannons and batons after protesters tried to storm the base.

"Hundreds of our people in Laghman province gathered because of the burning of the holy book by the Americans," said protester Mohammad Issa.

"Everyone is so emotional. The burning of the Qur'an broke our hearts and we are attacking the PRT because they are American," he said, using the acronym for the provincial reconstruction team.

In Oslo, Norwegian military spokesman Ivar Moen said a Norwegian soldier was wounded after demonstrators threw a hand grenade into a military base in Maimanah, in northwestern Faryab province where Norwegian, Latvian, Afghan and U.S. troops are deployed.

The soldier was wounded after up to 200 demonstrators hurled rocks at the base and shouted epithets. Norwegian troops responded with warning shots and tear gas. Moen said the demonstration was over, but new protests are expected tomorrow.

In the city of Baghlan in the north, clashes between police and protesters attacking the police headquarters left one person dead. Police said 10 officers were also wounded, two from gunshot wounds.

Police said another two protesters were killed and six wounded in another exchange of gunfire during a protest in southern Uruzgan province.

The riots erupted Tuesday after Afghan workers at the main American military base, Bagram Air Field, saw soldiers dumping books in a pit where garbage is burned and noticed Qurans and other religious material among the trash.

The top U.S. and NATO commander, Gen. John Allen, quickly issued an apology and telephoned Karzai and major news organizations to explain that a collection of religious materials, including Qurans, had mistakenly been sent to be incinerated. As soon as someone realized what they were burning, they stopped and retrieved what was left, Allen said.

Karzai also met Thursday with parliamentarians -- many of whom had called Wednesday for Afghans to wage a holy war against international forces. He told them that a U.S. officer responsible for the incident "didn't understand" what he was doing and the United States "accepted the mistake of its officer."

He commended the U.S. government for "acting quickly regarding this issue and apologizing." Karzai said that he was most concerned with making sure that such acts are not repeated.

Four copies of the Qur'an were burned before the incineration was halted, according to initial Afghan government reports.

NATO and Afghan investigators Wednesday visited the Parwan detention facility, where the Qurans were taken from. U.S. officials said they had been removed from the shelves of the facility's library because they contained extremist messages or inscriptions. The White House said it was an accident that they were sent to be burned.

Read more: http://www.ctv.ca/CTVNews/TopStories/20120223/obama-apology-quran-koran-burning-120223/#ixzz1nJCN8IJC

The U.S. Postal Service announced plans on Thursday to eliminate up to 35,000 jobs

(Reuters) - The U.S. Postal Service announced plans on Thursday to close or consolidate 223 mail processing centers and eliminate up to 35,000 jobs as part of its strategy to cut costs by reducing its network of facilities.

The Postal Service has been losing billions of dollars each year as email chips away at mail volumes and as it faces massive annual payments to the federal government.

Postal officials said in September they would study more than 250 of the 461 processing sites for possible consolidation with other facilities as part of a series of cost-cutting steps. They also announced plans to end next-day delivery to cut back on overnight work.

Postmaster General Patrick Donahoe has said the agency needs to reduce $20 billion in annual costs by 2015. Moving processing away from the 223 centers would reduce operating costs by $2.6 billion annually, according to the Postal Service's website.

That includes eliminating as many as 30,000 full-time jobs and 5,000 non-career positions, USPS spokesman Sue Brennan said. The agency has gotten rid of about 140,000 jobs in the last five years, mainly through attrition, but still had about 650,000 workers at the end of 2011, according to its first-quarter financial statement.

None of the facilities would close before mid-May due to a temporary moratorium announced in December that is intended to give Congress time to pass legislation to help overhaul the mail agency.

The Postal Service, which does not receive taxpayer funds, wants Congress to eliminate an annual payment to prefund retiree health benefits and let it end Saturday mail delivery.

The agency also wants to take over its health benefits from the federal government and to close thousands of post offices.

Lawmakers have been deeply divided on whether to allow facility closures, end the prefunding payment and other measures. Some lawmakers have praised the Postal Service for "rightsizing" its network, while others say the planned closings will hurt the agency's business model.

"At a time when the Postal Service is competing against the instantaneous delivery of information from email and the Internet, slowing down mail delivery service will result in less business and less revenue," said Senator Bernie Sanders of Vermont in a statement on Thursday.

Donahoe told lawmakers last week, in a letter announcing the agency's five-year turnaround plan, that failing to take all of its planned cost-cutting actions could lead to annual losses of $18.2 billion by 2015.

Gerald Celente on the Alex Jones Show

Clinton suggests Syrian rebels will get arms

US Secretary of State Hillary Clinton suggested on Thursday Syria's opposition will ultimately arm itself and said she would bet against Syrian President Bashar Assad's staying in power.

Speaking directly to Russia and China, which have blocked UN Security Council resolutions designed to end the violence in Syria, Clinton said the government's "brutality" against its own people was unsustainable in the Internet age.

"The strategy followed by the Syrians and their allies is one that can't stand the test of legitimacy or even brutality for any length of time," Clinton told reporters in London.

"There will be increasingly capable opposition forces. They will from somewhere, somehow, find the means to defend themselves as well as begin offensive measures," she added.

"It is clear to me there will be a breaking point. I wish it would be sooner, so that more lives would be saved, than later, but I have absolutely no doubt there will be such a breaking point."

Speaking ahead of a gathering of Western and Arab powers on Friday, US officials separately said the group planned to challenge Assad to provide humanitarian access within days to civilians under assault by his forces.

The officials, speaking before a "Friends of Syria" meeting expected to gather more than 70 nations and international groups in Tunis, did not say what specific consequences would follow if Syrian authorities failed to provide access.

The Syrian military pounded rebel-held Sunni Muslim districts of Homs city for the 20th day on Thursday, despite international protest over the previous day's death toll of more than 80, including two Western journalists, activists said.

"One of the things you are going to see coming out of the meeting tomorrow are concrete proposals on how we, the international community, plan to support humanitarian organizations ... within days, meaning that the challenge is on the Syrian regime to respond to this," said a US official.

For more than a year the Syrian opposition has called for Assad, whose family has ruled Syria for four decades, to step down in the latest of the "Arab Spring" uprisings against authoritarian rulers in the Middle East.

The continued strife reflects both Assad's determination to remain in office as well as the major powers' inability to agree on a strategy on whether to try to ease, or force, him out.

Russia has said it will not attend the gathering in Tunis.

Russia has repeatedly said it does not want a resolution to become a pretext for regime change, something it believes took place when the Security Council authorized the use of force to protect civilians in Libya and that ultimately helped drive former dictator Muammar Gaddafi from power.

Clinton, however, suggested Russia and China may not be able to sustain their opposition for ever.

"The pressure will build on countries like Russia and China because world opinion is not going to stand idly by. Arab opinion is not going to be satisfied watching two nations, one for commercial reasons one for commercial and ideological reasons, bolstering a regime that is defying every rule of modern international norms," she added.


Residents of Homs fear Assad will subject the city to the same treatment his late father Hafez inflicted on the rebellious town of Hama 30 years ago, when 10,000 were killed.

"When Assad's father conducted his horrific attacks back in the early '80s, there was no Internet, there was no Twitter, there were no social communication sites. There was no satellite television. There were no on-the-ground witnesses," Clinton said.

"It's much harder, and thankfully so, to have that level of brutality - shelling with artillery your own people - not be known by everyone, most particularly your own people, not after the fact but in real time," she added.

Clinton did not provide details about what the United States and its Arab and European allies might do if Assad refused to let humanitarian aid in, though she spoke of tightening existing sanctions and possibly considering new ones.

"In the event that he continues to refuse, we think that the pressure will continue to build," she said. "So it's a fluid situation. But if I were a betting person for the medium term and certainly the long term, I would be betting against Assad."

US officials avoided answering questions on whether the "Friends of Syria" group may discuss the possibility of arming the opposition, something some nations favor and that the United States, in a change in emphasis, on Tuesday suggested could become an alternative.

Jerusalem Post

'March to Jerusalem' Wants To Bring 1 Million Arabs to Border

An attempt is being made by the BDSmovement to have a ‘Global March to Jerusalem’ on March 30, to coincide with the so-called “Palestinian Land Day,” in a repeat of the failed Naqba Day attempt last year.

“The concept behind it is to have a million people marching on Israel’s borders from all the surrounding countries – Lebanon, Syria, Jordan and Egypt,” CiF Watch reported.

The BDS movement declares, “Commemorating Land Day, the Palestinian BDS National Committee (BNC) invites people of conscience around the world to unite for a BDS Global Day of Action on 30 March 2012 in solidarity with the Palestinian people’s struggle for freedom, justice and equality and for Boycott, Divestment and Sanctions (BDS) against Israel.”

The project’s official website says:

“The march will confirm that the policies and practices of the racist Zionist state of Israel against Jerusalem and its people are a crime not only against Palestinians but against all humanity.”

The CiF Watch reported that the “results are therefore likely to be grave…The leaders of the ‘Global March to Jerusalem’ are very much aware of [its] links to proscribedterrorist groups, and yet its endorsers include a rather predictable list of organizations and US and other nationals, including a UN employee and a former British MP.”

Israel, like any other sovereign country, cannot permit any type of attack on its borders, threatening its right to self-defense and autonomy as an independent state.

On last year's Naqba Day (the day the state was established, called "catastrophe day" by Palestinian Arabs) media-hyped attempts by Arabs to cross the border werestopped by Israel on several fronts. Lebanese forces prevented marchers from approaching Israel's border, so as to avoid confrontation. Only Syria aided the marchers, hoping to get their minds off its own internal rioting, and some 100 did manage to enter Israel and were repelled. Israel has since taken measures to prevent a repeat of that possibility.

Israel National News

Bank of America breaks with Fannie Mae

Bank of America said Thursday that it would no longer sell new mortgages to Fannie Mae, underscoring tensions in a fight between giants of the home loan market over billions in losses in the housing bubble.

The latest move represents a major escalation in a protracted legal battle over how many defaulted mortgages Bank of America will have to buy back from Fannie because the original loans had not conformed to proper underwriting standards, market experts said.

“In mortgage circles, it’s pretty big,” said Guy Cecala, publisher of Inside Mortgage Finance, a trade publication. “It would be fairly extreme for a small or midsized lender to do this, but for a major lender, it’s very extreme.”

As one of the large government-sponsored mortgage finance enterprises, Fannie Mae takes mortgage loans from banks and packages them into securities that can be sold to investors or held on their own balance sheet. Fannie Mae backs about 40 percent of all mortgages in the United States.

Bank of America was Fannie’s third-largest provider last year, according to Inside Mortgage Finance. The bank originated $156.1 billion in mortgages last year, of which $37.7 billion were sold to Fannie, the trade publication said.

Bank of America insisted its customers would not be hurt by the decision, and said it can make up for the loss of Fannie as a backer by turning to Freddie Mac or Ginnie Mae, other government-sponsored mortgage buyers; the private sector; and by deploying its huge balance sheet.

“This decision will not affect the credit available to our customers, and we will rely on other sources of liquidity to continue to ensure we are lending to our customers and supporting the housing market recovery,” said Lawrence Di Rita, a spokesman for Bank of America. He added that the bank would continue to participate in assisting homeowners, including through the federal government’s loan modification program.

Bank of America agreed in January 2011 to buy back $2.5 billion in soured mortgages from Fannie and Freddie, but that deal left the door open to future claims from Fannie. Bank of America also reached an $8.5 billion deal with private investors to cover repurchase claims last June, but that accord is the subject of another legal fight.

Bank of America does not break out how much it has faced in claims from each company, but it has recorded losses on $9.2 billion worth of loans made from 2004 to 2008 that were later acquired by Fannie and Freddie.

Mr. Cecala said that while consumers should not feel the effects of the move in terms of access to credit, the absence of Fannie Mae as a backer could make Bank of America’s mortgage terms and rates less competitive in the future. A spokesman for Fannie Mae declined to comment.

Bank of America revealed the decision in a filing with the Securities and Exchange Commission on Thursday. The direct cause was the dispute over the repurchases, but it comes as Bank of America is reducing its overall size and streamlining its business, and shrinking its mortgage business in particular.

Meanwhile, Fannie and Freddie face questions over what role they will play in the housing market, as policy makers in Washington prepare to overhaul the government’s relationship with the mortgage industry.

Bank of America ranked as the nation’s second-largest originator of home loans for all of 2011, with an 11.6 percent market share, but by the fourth quarter it had slipped into fourth place behind Wells Fargo, JPMorgan Chase and Citigroup, according to Inside Mortgage Finance. Wells, in particular, has been an aggressive competitor, picking up much of the slack in the market and now accounting for one out of every four mortgage originations.

Bank of America, once the nation’s largest bank by assets, has been steadily shrinking its balance sheet, and now ranks second to JPMorgan Chase. Many of its problems stem from the disastrous 2008 decision to buy Countrywide Financial, a subprime mortgage lender that caused Bank of America to record more than $30 billion in losses.

Investors are concerned that Fannie and Freddie, along with private investors, will force Bank of America and other giant mortgage lenders to repurchase tens of billions in mortgages that later defaulted, arguing they were not made with adequate documentation or proof of income, or otherwise failed to conform to proper underwriting standards.

Bank of America and its competitors have argued that many homeowners defaulted because of unemployment, the weak economy and other factors, not errors in the origination process.

Still, repurchase fears weighed on Bank of America shares in particular last year, and at one point Bank of America’s stock fell below $5 a share. Its shares closed at $8.02 on Thursday, up 7 cents.


Every single austerity plan to date has been a failure, in every nation attempted

Listen to the empty words of the last bailout for Greece. Credibility with the Jackass was lost back on the third bailout, well over a year ago, out of the six bailouts in total. Perhaps it is seven comprehensive final bailouts. The pattern is clear. The politicians, without popular support, forge agreements on debt coverage with the Greek officials. The deals fall through, hit the ground, and expose the lack of support even from the European bankers, led by the Germans. The pattern has been vividly clear for over a year, enough for my dismissal of new accords right away on the basis that the German bankers will not conform and agree to the deals struck. The political leaders in France (Sarkozy) and Germany (Merkel) are due to lose their offices, yet they continue to march around at useless summits attempting to cut last ditch agreements that mean nothing. The people are not willing in Germany to hand over any more than the $3 trillion to date, from the start of the common Euro currency experiment. The bankers, like at the Bundesbank, should attend the summits, but that would be too obvious on where the majority of power is held. What is unfolding is a comprehensive Greek Govt debt default from the inability to contain the situation, the impracticality of the austerity budgets put in place, the wreckage that has come to the Greek Economy, and the intractable solution.

My view is the entire charade for two years has been a grand delay to enable the big banks to sell out of their bonds and dump them on the Euro Central Bank. Almost every bailout has been of bank assets in some sort of redemption, not budget assistance. The biggest question posed and not answered is: HOW ANGRY ARE THE OWNERS OF THE FEDERALRESERVE AND EURO CENTRAL BANK TO ACCUMULATE AND OWN SUCH A MOUNTAIN OF TOXIC PAPER?? My German banker source says the Germans will make what seem like agreements or permit the politicians to make them, but the bankers will consistently obstruct them. He steadily stresses how Germany has wasted $300 billion in savings each year, is exhausted, and no longer is willing or able to provide national welfare for Southern Europe. They will write no more checks except what will successfully grab collateral prize properties. It has become obvious the Greeks will not hand over much of any property without lighting the city on fire. It is the end of the bailout road. A few months ago my firm position, stated in the newsletter, that the bailouts would end when the riots amplify. They have amplified. Conclusion: GAME OVER.

Next comes a planned or unplanned default. Let's see how inequitable they will make it. Obviously it will be inequitable, since all accords have greatly favored the bankers. The TARP Fund was the most egregious, but it only disguised the bigger multi-$trillion grants with zero cost to the many banks, both central bank and private bank. The upshot of the Financial Regulatory Bill is that the USFed must open its books, but only after such loans take place, not to be reversed. Back to Greece. For a few months, some clarity and realism has entered the discussions and analysis concerning the burning nation of antiquity. The new theme has been that Greece will default, must default, and cannot avoid a default. Exactly. So the challenge is to avoid the horrendous collateral damage that will come. The central bankers, regional commissars, and technocrats have been working overtime, but Davos was a missed opportunity for forging potential solutions or at least elements.

A great comment came out of the World Economic Forum in Davos. The comment came from one of the few Economics Nobel Winners who makes any sense at all. The recent parade of prize winners seems either clownish in support of the status quo in disaster mode, or abstruce to the point of irrelevance. Joseph Stiglitz uttered perhaps the only wisdom or story worth reporting from the forum, a country club gathering of bankers and their investment fund cohorts whose mission is to defend the failing system. Stiglitz said,"European leaders repeat the same kind of platitudes, [like] we need to get growth going, [like] austerity will not be enough, but no country has policies that will achieve growth. I have not heard a single thing here in Davos that has convinced me that the European leaders have any sense of what they need to do and will do. Nobody knows who owes what to whom, where the risks of a Greek default are." It reminds me of a premise that the first step in a reconstruction, remedy, and solution is to liquidate the big insolvent banks. But that is precisely where the power lies in controlling the USGovt. If not the banks, the agencies that have evolved into a private sprawling enterprise control much hidden power.
Blueprint for Damage Control

One must be serious and grounded in reality. No solution exists for Greece without liquidation of their debt, its restructure with huge writedowns if not total wipeout loss, a return to the Drachma currency, recapitalization of their banks, and a hands off to carpetbaggers. Almost none of these measures will be done, except blockage of the foreigners intending to exploit.Talk is clear about a 70% bond haircut, which does not seem enough even though it is brutal. The biggest practical impediments to the Greek Economy are the austerity plan and the absent ability to devalue the currency. Every single austerity plan to date has been a failure, in every nation attempted. They result in worse economic slowdowns, greater job loss, broad cancelation of projects, reduced pension security, and much wider deficits. Yet they continue in a grand procession of ruin. One must wonder if ruin is the goal, so that another technocrat can be put in power, unelected and with allegiance only to the syndicate. Who selected Papademous and Monti?

The absent path to a currency devaluation hits as the central flaw of the common Euro region. The weakest cannot compete against the strongest. In time the strong nations refuse to provide the higher standard of living at their own domestic expense. The German standard of living has fallen badly, angering many of its citizens. The normal evolutionary path calls for a troubled nation to do debt restructure, to enact broad reforms, to devalue the currency, and to stimulate the economy. The path taken for two years has been to dance around the debt table. No action at all on devaluation, since removal from the Euro currency umbilical would mean enormous debt writeoffs for the major European banks. This is the same obstructive dynamic at work in the United States. Greece needs to go back to the Drachma, devalue it by 30% or more, and enjoy some stimulus. Their list of export items is not in great volume. The austerity budgets are the exact opposite of stimulus. Lunacy has taken root, like with an entire class of public contract workers must work for no pay. The power center of the big banks prevents solutions. So the next phase will be full of risk and intrigue, if not treachery.
Layers of Risk

Big Bank losses: The big banks in Europe face staggering losses. The attempts to make a mere 35% bond loss haircut in past deals was so unworkable as to be laughable. They fooled nobody. Reality has entered the room, as a 70% writedown figure has been proposed on current bailout deals. The big banks are already reeling from credit portfolios damaged by property like home mortgage and commercial mortgage. They are hurt by sovereign debt generally, not just from Greece. The Italian and Spanish Govt debt losses will be higher in volume, lower in percentage loss. The big bank exposure extends also to private debt within the Greek Economy, like with mortgages and commercial loans. They are all at heavy risk. The Basel II rules have forced de-leveraging as a warmup process that weakened many banks. The big European banks should enter failure from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Contagion to Banks outside Europe: The interwoven nature of Western banking does not add to its strength, like in integrated plywood sinews, but rather exposes its weakness. The London banks own a huge amount of Southern Europe sovereign debt. The New York banks own a sizeable portion also. A recent conversation with a sturdy German banker revealed that Citigroup owns an enormous amount of debt in Greece, Italy, and Eastern Europe in the mortgage sector. Most will be written off with big losses. The amount of PIGS sovereign debt owned by banks in France is enormous, well detailed, but under-reported. The cross pollenation will come to the fore as the ripples are felt. The German banks own too much sovereign debt. The big banks outside Europe are at great risk, just like those throughout the Continent. Many non-European banks should enter failure from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Euro Central Bank: Like the US Federal Reserve, these two central banks have served as the buyer of last resort for toxic bonds that both nobody wants and have nearly worthless value. Their owner lords (think castles in London and Switzerland) must be pushing back hard. The new EuroCB head Mario Draghi at first stated a firm position of not wishing to buy Southern European sovereign bonds, since badly impaired. When the Italian and Spanish Govt Bond yields rose toward or past the 7% magic mark, he relented. The stability returned in the bond market, but at the high cost of further wrecking the EuroCB balance sheet. It is hard to know which is more ruined, loaded with toxic paper, the EuroCB or the USFed. Both in my view are wrecked entities and control towers. Neither can serve adequately as a central bank when acting like a proxy for the entire banking system. They must remove the bank reserves held as hostage from private banks. The major central banks should face severe insolvency from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Credit Default Swaps: The bond insurance market is even more corrupt than the mortgage market. At least the mortgage arena contained some hint of regulatory oversight. The derivative market has none at all. Some fine analysts like Chris Whalen stated two and three years ago that without the derivative trade, the US banks would have keeled over dead long ago. They took in huge fees on contracts whose legitimacy and effectiveness are unclear. The ISDA has issued rulings on bond debt default that seem corrupt to the core. The next round of Greece Govt Bond writedowns apparently will feature CDSwap insurance responses in the form of awards in exchange for bond ownership, the inherent asset swap. Like the SEC and CFTC, the ISDA is loaded with bankers from the everpresent Wall Street revolving door. They will serve the banks at the expense of the system and economy. The interwoven nature of Western banking does not add to its strength, but rather exposes its weakness. The claimed offset on derivative ownership is nonsense, as Bank A holds derivatives that cover Bank B, and vice versa. They do not cancel out for net neutral. Both banks are killed, neither able to aid the other. The payouts for Credit Default Swap contracts being enforced should cause tremendous additional damage to the entire financial system, from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Exposure of Profound Fraud again: The strain from any imposed default skein will expose the derivative market. The cast of counter-parties is too diverse. The obligations are too unclear. The nature of the contracts is too untested. The enforcement by the ISDA rulings are too subservient. Like with the mortgage sector, liquidations reveal the seriously putrid underbelly. With mortgages, no widespread liquidation of mortgage bonds could be done, since the process would reveal bond fraud to the extreme. Its mortgage contract fraud is in the open for full view. So patchwork was done, even nationalization of Fannie Mae and AIG under the USGovt wing. The fraud is contained supposedly, but without the basis of a solution. Hyper monetary inflation goes down a Black Hole. So also is the nature of the derivative market. Liquidations will reveal the seriously corrupted core of the business. After the recent MFGlobal, JPMorgan, and COMEX episode, one more log on the raging fraud bonfire. The system's foundation of integrity is burning. The CDSwap contract award process should expose profound fraud in the system from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Recapitalize domestic banking systems: The banking system has operated in the Western nations amidst deep insolvency for three years or more. When the Greek default is begun, that insolvency will be much worse. Some banks will fail. The dominos will fall. The impact will be understood quickly. The need to rebuild the banking system will be an obvious and very painful realization, but the volume will result in shock. The big banks serve as the core for the domestic credit engines, the machinery to pump credit into the many businesses. That engine is sputtering badly. Some measures will be done to enable new Euro Bonds to take senior position, but expect it to backfire since bond dealers and bond funds will resist the favored treatment and retreat. Several $trillion will be needed to recapitalize the banking systems, not just a few banks. With the dependence upon newly printed unbacked money, the banking systems should lose further integrity from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Debt Rating Agencies: Since the autumn months of 2008, the agencies have acted more responsibly. The Standard & Poors downgrade of the USGovt debt was a wakeup call of unprecedented manner. However, the Moodys and Fitch agencies did not follow suit. Worse, the S&P chief executive was forced out of office, probably by a Wall Street phone call, replaced by a Citigroup veteran. In the last several months to perhaps 18 months, the debt rating agencies have been doing their job reponsibly, but their focus is entirely on Europe. They have ignored the United States, even ignored the embattled insolvent US States. They are piling on with European sovereign downgrades, European bank downgrades, even European stability fund downgrades. Instead of putting the debt rating agencies at greater risk from an imposed Greek Govt debt default and restructure, the pressure will be on them as a group to focus more attention on the USGovt and the US States. Their collective financial condition is equally bad as Greece.

Economies suffer from Austerity: The impact of every austerity plan is to put in place what appears to be a more rigid spending process. But the dependence of the domestic economies is so great upon the public sector for jobs and projects and grants and subsidies, that the damage is instant and deep. No austerity budget plan has resulted in improved finances in the first two years of emplacement. None! The economists seem blind to the effect. The politicians seem ignorant. The corporate leaders are frustrated. No solution exists for remedy short of a five year period. Many economies in the West should suffer even worse and more painful recessions from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Amplified Inflation Risk: All solutions proposed involve the disposition of new money, either from outright printing without backing or from grander fiscal deficits. The austerity plans result in worse deficits, thus worse pressure on inflation. Any banking system recapitalization would be the crown jewel of monetary inflation. Imagine the effect of $1 trillion or $2 trillion in recapped banks, only to find they require another $1 trillion several months later. The inflation impact could be enough to push the water level over the bunker banker walls. Those walls have prevented the staggering hyper monetary inflation from spilling over into Main Streets across the nation. The bank sector has enjoyed 98% of the bailout benefits. The public has been told to tighten belts and to eat cake. Look for the bank recapitalization project, if it occurs, to finally push the inflation process in such a way that price inflation hits the USEconomy in force. Refer to rising wages and rising prices, not just costs. Tremendous pressure should come on systemic price inflation from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Interest Rate Swap Risk: If price inflation rises in unexpected fashion, the pressure put on the USTreasury Bond market will be greater than any time in the last ten years. So far, the abuse of the Interest Rate Swap contract has provided outsized leverage in keeping down the USTBond yields generally, by creating artificial bond demand. The financial press is totally oblivious to this phenomenon. Investors do not flock to USTBond as safe haven. The Wall Street leverage machinery has created bond demand from the basement working overtime for over two years. The smoking gun was the 1Q2011 report on derivative growth by the Office of the Comptroller & Currency. It revealed $8 trillion in notional derivatives put on by Morgan Stanley alone. So much for investor bond demand and contradiction of the S&P downgrade of USGovt debt. What a clever tactic. However, the Greek Govt debt unraveling could place tremendous strain on the IRSwap device, even to expose it during a time of increased foreign creditor isolation. The US sovereign bond market inner circle hidden devices should be brought into the open from an imposed Greek Govt debt default and restructure. The Greek losses will strain the system to the hilt.

Unintended Consequence Risk: The last risk to cite is the risk of the unknown, the unexpected, that which cannot be properly planned. The potential unintended outcomes and pressures emanating from a comprehensive planned Greek Govt debt default defy description. In my view, it is like herding 100 cats freed from bondage on a truck in an open field. The Jackass loves cats, but never have they been captured in a yard when attempted. They jump fences, crawl under fences, disappear in holes under houses, even hide in car engines. They are fast and elusive, changing directions with extreme quickness and agility. So will be the consequences to a planned Greek demolition of their indebted edifices. The Powerz must realize the challenge that lies ahead, and look upon each with some trepidation.
Gold & Silver

The battle has been waged in the 1750 to 1800 price corridor for almost a full month. It is critically important. A smaller battle to overcome the 1650 mark was a success, thus making the Gold price recovery firm and recognized. As a solution is worked out in Greece, or the absence of one with another in a series of grand missteps, watch the Gold price cast a vote. The system's integrity lies in the balance. The pressure points are across the entire financial and economic systems. The solutions are elusive since the basic initial step of big bank liquidation is refused, too much damage to be doled to the banks that control the power. The zinger is the recapitalization of the banking system, an urgent need and requirement, the understood impact from the imposed Greek comprehensive solution. Expect more favored treatment to the banks. However, as they are put back on solvent feet, a process only possible with vast hyper monetary inflation directed specifically at the banking pillars, the retribution from within the system will possibly be the first serious price inflation leakover. For over three years, the monetary inflation leakover has been contained, to the detriment of the economy.

The anticipation of that systemic price inflation event could be seen in the Gold price. The direct response to the imposed Greek debt solution could be some sort of capitulation, a recognition that the Western financial and monetary system cannot be fixed. Any perception that bank system reconstruction would assure another powerful bout of price inflation as the heavy cost could be a major unintended consequence. The Gold price could explode past $2000 per ounce if that were to occur. If the planned demolition of the Greek Govt bond building does not go according to plan, look to the Gold price for a powerful upward response. The list of unintended consequences and collateral damage is very long indeed. The risk is staggering acute and not easily measured. Gold should serve as the effective pressure valve. Most every attempt to push down the Gold price in the last few weeks with yet more naked shorting has been thwarted and opposed by the Eastern Coalition, their new project.

gold target 1950
Jim Willie