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Do Wall Street Insiders Expect Something Really BIG To Happen Very Soon?

In Economy, News, Other Leaks, USA on February 7, 2013 at 11:23 PM

02/06/2013

Why are corporate insiders dumping huge numbers of shares in their own companies right now?  Why are some very large investors suddenly making gigantic bets that the stock market will crash at some point in the next 60 days?  Do Wall Street insiders expect something really BIG to happen very soon?  Do they know something that we do not know? What you are about to read below is startling.  Every time that the market has fallen in recent years, insiders have been able to get out ahead of time.  David Coleman of the Vickers Weekly Insider report recently noted that Wall Street insiders have shown “a remarkable ability of late to identify both market peaks and troughs”.  That is why it is so alarming that corporate insiders are selling nine times as many shares as they are buying right now.  In addition, some extraordinarily large bets have just been made that will only pay off if the financial markets in the U.S. crash by the end of April.  So what does all of this mean?  Well, it could mean absolutely nothing or it could mean that there are people out there that actually have insider knowledge that a market crash is coming.  Evaluate the evidence below and decide for yourself…

For some reason, corporate insiders have chosen this moment to unload huge amounts of stock.  According to a CNN article, corporate insiders are now selling nine times more of their own shares than they are buying…

Corporate insiders have one word for investors: sell.

Insiders were nine times more likely to sell shares of their companies than buy new ones last week, according to the Vickers Weekly Insider report by Argus Research.

What makes this so alarming is that corporate insiders have been exceedingly good at “timing the market” in recent years.  The following comes from a recent CNBC article entitled “Sucker Alert? Insider Selling Surges After Dow 14,000“…

“In almost perfect coordination with an equity market that was rushing toward new all-time highs, insider sentiment has weakened sharply — falling to its lowest level since late March 2012,” wrote David Coleman of the Vickers Weekly Insider report, one of the longest researchers of executive buying and selling on Wall Street. “Insiders are waving the cautionary flag in an increasingly aggressive manner.”

There have been more than nine insider sales for every one buy over the past week among NYSE stocks, according to Vickers. The last time executives sold their company’s stock this aggressively was in early 2012, just before the S&P 500 went on to correct by 10 percent to its low for the year.

“Insiders know more than the vast majority of market participants,” said Enis Taner, global macro editor for RiskReversal.com. “And they’re usually right over a long period of time.”

There are other indications that the stock market may be headed for a significant tumble in the months ahead.  For example, as a Zero Hedge article recently pointed out, the last time that the financial markets in the U.S. were as “euphoric” as they are now was right before the financial crisis of 2008.

And as I mentioned above, some people out there have recently made some absolutely jaw-dropping bets against stocks which will only pay off if there is a financial crash at some point in the next few months.

According to Business Insider, the recent purchase of 100,000 put options by a mystery investor has a lot of people on Wall Street talking…

According to Barron’s columnist Steven Sears, someone made a big bet against the financials ETF yesterday (ticker symbol XLF), and it has everybody buzzing.

The trader bought 100,000 put options on the ETF (a put option increases in value when the price of the underlying asset, in this case, the ETF, goes down).

To put that number in perspective, Sears writes, “Few investors ever trade more than 500 contracts, so a 100,000 order tends to stop traffic and prompt all sorts of speculation about what’s motivating the trade.” According to Sears, the trade “has sparked conversations across the market.”

Reportedly, those put options expire in April.

And as Art Cashin of UBS has noted, there was also another extremely large bet that was placed recently that is banking on a financial crash within the next two months…

A Very Big Bet In A Somewhat Unlikely Instrument – My friend, Jim Brown, the ever-alert consummate professional over at Option Investor pointed us to a rather unusual trade. Here’s what he wrote in last night’s edition of his valuable newsletter:

In past years I have reported on trades that were so large it appeared someone had inside knowledge of a pending event. Sometimes those were massive put positions on the S&P. A new trade just appeared that suggests there will be a market event in the near future. Last week somebody put on a call spread on the VIX using the April 20 and 25 puts. They bought 150,000 contracts for a net of $75 per contract. That is an $11,250,000 bet that the VIX will move over 20 over the next 60 days. You would have to be VERY confident in your outlook to risk $11 million on a directional position with the VIX at five year lows and the markets trying to break out to new highs.

So does all of this guarantee that the stock market is going to move a certain way?

Of course not.

But when you step back and look at the bigger picture, it does appear that Wall Street insiders are preparing for something.

Meanwhile, the government continues to assure us that happy days are here again for the U.S. economy and that we don’t have anything to worry about.

The Congressional Budget Office has just released a report that contains their outlook for the next decade.  The report is entitled “The Budget and Economic Outlook: Fiscal Years 2013 to 2023″, and if you want a good laugh you should read it.

Here are some of the things that the CBO believes will happen…

-The CBO believes that government revenues will more than double by 2023.

-The CBO believes that government revenue as a percentage of GDP will rise from 15.8 percent today to 19.1 percent in 2023.

-The CBO believes that the unemployment rate will continually fall over the next decade.

-The CBO believes that the federal budget deficit will fall to just 2.4% of GDP in fiscal year 2015.

-The CBO believes that the federal budget deficit will only be $430 billion in 2015.

-The CBO believes that we will not have a single recession over the next decade.

-The CBO believes that inflation will stay at about 2 percent for the next decade.

-The CBO believes that U.S. GDP will grow by a total of 67 percent by 2023.

Wow, all of that sounds great until you go back and take a look at how CBO projections have fared in the past.

In fact, Bruce Krasting has gone back and looked at the numbers from the Congressional Budget Office’s Budget and Economic Outlook 2003.  I think that you will find the differences between the CBO projections and what really happened to be very humorous…

Estimated 10-year budget surplus = $5.6T.

Reality = $6.6T deficit. A 200+% miss.

 

Estimate for 2012 Debt Held by Public = $1.2T (5% of GDP).

Reality = Debt Held by Public = $11.6T. A 1000% miss.

 

Estimated fiscal 2012 GDP = $17.4T.

Reality = $15.8T. A $1.6T (10%) miss.

So should we trust what the CBO is telling us now?

Of course not.

Instead, perhaps we should listen to some of the men that successfully warned us about the last financial crisis…

-”Dr. Doom” Marc Faber recently stated that he “loves the high odds of a ‘big-time’ market crash“.

-Economist Nouriel Roubini says that we should “prepare for a perfect storm“.

-Pimco’s Bill Gross says that we are heading for a “credit supernova“.

-Nomura’s Bob Janjuah believes that the financial markets will experience one more huge spike before collapsing by up to 50%

I continue to believe that the S&P500 can trade up towards the 1575/1550 area, where we have, so far, a grand double top. I would not be surprised to see the S&P trade marginally through the 2007 all-time nominal high (the real high was of course seen over a decade ago – so much for equities as a long-term vehicle for wealth creation!). A weekly close at a new all-time high would I think lead to the final parabolic spike up which creates the kind of positioning extreme and leverage extreme needed to create the conditions for a 25% to 50% collapse in equities over the rest of 2013 and 2014, driven by real economy reality hitting home, and by policymaker failure/loss of faith in “their system”.

The truth is that no matter how much money printing the Federal Reserve does, it is only a matter of time before the financial markets catch up with economic reality.

The U.S. economy has been in decline for a very long time, and things just continue to get even worse.  Here are just a few numbers…

-The percentage of the civilian labor force that is employed has fallen every single year since 2006.

-According to John Williams of shadowstats.com, truly accurate numbers would show that U.S. GDP growth has actually been continuously negative all the way back to 2005.

-U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.

-One recent survey found that nearly half of all Americans are living on the edge of financial ruin.

-According to the U.S. Census Bureau, there are more than 146 million Americans that are considered to be either “poor” or “low income” at this point.

For many more statistics that demonstrate that the U.S. economy has continued to decline in recent years, please see this article: “37 Statistics Which Show How Four Years Of Obama Have Wrecked The U.S. Economy“.

So where is all of this headed?

Well, after the next major financial crisis in America things are going to get very tough.

We can get a hint for how things are going to be by taking a look at what is going on over in Europe right now.

Can you imagine people trampling each other for food?  That is what is happening in Greece.  Just check out this excerpt from a Reuters article

Hundreds of people jostled for free vegetables handed out by farmers in a symbolic protest earlier on Wednesday, trampling one man and prompting an outcry over the growing desperation created by economic crisis.

Images of people struggling to seize bags of tomatoes and leeks thrown from a truck dominated television, triggering a bout of soul-searching over the new depths of poverty in the debt-laden country.

The suffering that the Greeks are experiencing right now will come to this country soon enough.

So enjoy this false bubble of debt-fueled prosperity while you can.  It is going to end way too soon, and after that there will be a whole lot of pain.

Via TheEconomicCollapse

DHS Purchases 21.6 Million More Rounds of Ammunition

In DHS, News, NWO, Other Leaks, Police State, USA on February 7, 2013 at 11:09 PM

02/07/2013

The Department of Homeland Security is set to purchase a further 21.6 million rounds of ammunition to add to the 1.6 billion bullets it has already obtained over the course of the last 10 months alone, figures which have stoked concerns that the federal agency is preparing for civil unrest.

A solicitation posted yesterday on the Fed Bid website details how the bullets are required for the DHS Federal Law Enforcement Training Center in Artesia, New Mexico.

The solicitation asks for 10 million pistol cartridge .40 caliber 165 Grain, jacketed Hollow point bullets (100 quantities of 100,000 rounds) and 10 million 9mm 115 grain jacketed hollow point bullets (100 quantities of 100,000 rounds).

The document also lists a requirement for 1.6 million pistol cartridge 9mm ball bullets (40 quantities of 40,000 rounds).

An approximation of how many rounds of ammunition the DHS has now secured over the last 10 months stands at around 1.625 billion. In March 2012, ATK announced that they had agreed to provide the DHS with a maximum of 450 million bullets over four years, a story that prompted questions about why the feds were buying ammunition in such large quantities. In September last year, the federal agency purchased a further 200 million bullets.

To put that in perspective, during the height of active battle operations in Iraq, US soldiers used 5.5 million rounds of ammunition a month. Extrapolating the figures, the DHS has purchased enough bullets over the last 10 months to wage a full scale war for almost 30 years.

Such massive quantities of ammo purchases have stoked fears that the agency is preparing for some kind of domestic unrest. In 2011, Department of Homeland Security chief Janet Napolitano directed Immigration and Customs Enforcement to prepare for a mass influx of immigrants into the United States, calling for the plan to deal with the “shelter” and “processing” of large numbers of people.

The federal agency’s primary concern is now centered around thwarting “homegrown terrorism,” but information produced and used by the DHS to train its personnel routinely equates conservative political ideology with domestic extremism.

A study funded by the Department of Homeland Security that was leaked last year characterizes Americans who are “suspicious of centralized federal authority,” and “reverent of individual liberty” as “extreme right-wing” terrorists.

In August 2012, the DHS censored information relating to the amount of bullets purchased by the federal agency on behalf of Immigration & Customs Enforcement, citing an “unusual and compelling urgency” to acquire the bullets, noting that there is a shortage of bullets which is threatening a situation that could cause “substantial safety issues for the government” should law enforcement officials not be adequately armed.

As we highlighted last month, the DHS’ previous ammunition solicitation was awarded to Evian Group, an organization that was formed just five days before the announcement of the solicitation and appeared to be little more than a front organization since it didn’t have a genuine physical address, a website, or even a phone number.

While Americans are being browbeaten with rhetoric about the necessity to give up semi-automatic firearms in the name of preventing school shootings, the federal government is arming itself to the teeth with both ammunition and guns. Last September, the DHS purchased no less than 7,000 fully automatic assault rifles, labeling them “Personal Defense Weapons.”

Via InfoWars

Related Links:

DHS Arms Itself to the Teeth While Obama Pushes for Gun Control

If “Assault Weapons” Are Bad…Why Does DHS Want to Buy 7,000 of Them for “Personal Defense”?

Is This the Secret U.S. Drone Base in Saudi Arabia?

In Drones, News, NWO, Other Leaks, Politics, Saudi Arabia, USA on February 7, 2013 at 10:46 PM

02/07/2013

These satellite images show a remote airstrip deep in the desert of Saudi Arabia. It may or may not be the secret U.S. drone base revealed by reporters earlier this week. But the base’s hangars bear a remarkable resemblance to similar structures found on other American drone outposts. And its remote location — dozens of miles from the nearest highway, and farther still to the nearest town – suggests that this may be more than the average civilian airstrip.

According to accounts from the Washington Post and The New York Times, the U.S. built its secret Saudi base approximately two years ago. Its first lethal mission was in September of 2011: a strike on Anwar al-Awlaki, the American-born propagandist for al-Qaida’s affiliate in Yemen, which borders Saudi Arabia. Since then, the U.S. has launched dozens of drone attacks on Yemeni targets. News organizations eventually found out about the base. But they agreed to keep it out of their pages — part of an informal arrangement with the Obama administration, which claimed that the disclosure of the base’s location, even in a general way, might jeopardize national security. On Tuesday, that loose embargo was broken.

The image of the airfield, available in Bing Maps, would be almost impossible to discover randomly. At moderate resolutions, satellite images of the area show nothing but sand dunes. Only on close inspection does the base reveal itself. In Google’s catalog of satellite pictures, the base doesn’t appear at all.

The images show a trio of “clamshell”-style hangars, surrounded by fencing. Each is more than 150 feet long and approximately 75 feet wide; that’s sufficient to hold U.S. Predator and Reaper drones. The hangars are slightly larger, though similar in shape, to ones housing unmanned planes at Kandahar Air Field in Afghanistan. Shamsi Air Field in Pakistan, which once held U.S. drones, boasts a group of three hangars not unlike the ones of the Saudi base. No remotely piloted aircraft are visible in the images. But a pair of former American intelligence officers tell Danger Room that they are reasonably sure that this is the base revealed by the media earlier this week.

“I believe it’s the facility that the U.S. uses to fly drones into Yemen,” one officer says. “It’s out in eastern Saudi Arabia, near Yemen and where the bad guys are supposed to hang out. It has those clamshell hangars, which we’ve seen before associated with U.S. drones.”

The former officer was also impressed by the base’s remote location.”It’s way, way out in the Rub al Khali, otherwise known as Hell, and must have been built, at least initially, with stuff flown into Sharorah and then trucked more than 400 kilometers up the existing highway and newly-built road,” the ex-officer adds in an e-mail. “It’s a really major logistics feat. The way it fits inconspicuously into the terrain is also admirable.”

Three airstrips are visible in the pictures; two are big enough to land drones or conventional light aircraft. A third runway, under construction, is substantially longer and wider. In other words: The facility is growing, and it is expanding to fly much larger planes.

The growth has been rapid. When the commercial imaging company Digital Globe flew one of its satellites over the region on Nov. 17, 2010, there was no base present. By the time the satellite made a pass on March 22, 2012, the airfield was there. This construction roughly matches the timeline for the Saudi base mentioned in the Post and in the Times.

“It’s obviously a military base,” says a second intelligence analyst, who reviewed the images and asked to remain anonymous because of the sensitivity of the subject. “It’s clearly an operating air base in the middle of nowhere, but near the Yemeni border. You tell me what it is.”

If this picture does prove to be a secret U.S. drone base, it wouldn’t be the first clandestine American airfield revealed by public satellite imagery. In 2009, for instance, Sen. Diane Feinstein accidentally revealed that the U.S. was flying its robotic aircraft from Pakistani soil. The News of Pakistan quickly dug through Google Earth’s archives to find Predator drones sitting on a runway not far from the Jacobabad Air Base in Pakistan – one of five airfields in the country used for unmanned attacks. The pictures proved that the Pakistani officials were actively participating in the American drone campaign, despite their public condemnation of the strikes. Until then, such participation had only been suspected. While the drone attacks continued, the U.S. was forced to withdraw from some of the bases.

So far, reaction to the Saudi base has been relatively muted. American forces officially withdrew from Saudi Arabia years ago, in part because the presence of foreign troops in the Muslim holy land so inflamed militants. It’s unclear how the drone base changes this calculation, if at all.

The drone base’s exposure is part of a series of revelations about the American target killing campaign that have accompanied John Brennan’s nomination to be the director of the CIA. Brennan currently oversees targeted killing operations from his perch as White House counterterrorism adviser, and would be responsible for executing many of the remotely piloted missions as CIA chief.

In addition to the drone base disclosure, an unclassified Justice Department white paper summing up the Obama administration’s criteria for eliminating U.S. citizens was leaked this week to NBC News; the document argues that a judgment from an “informed, high-level” official can mark an American or robotic death – even without “clear evidence that a specific attack on U.S. persons and interests will take place in the immediate future.” (.pdf) The White House has since promised to give select Congressmen the classified and detailed legal rationales behind the white paper. But Sen. Ron Wyden told Brennan at his Senate confirmation hearing that the Justice Department is not yet complying with President Obama’s promise to disclose those legal memoranda. Feinstein said she was seeking eight such memos in total.

In their hours of questioning Brennan, however, the Senators didn’t once ask the CIA nominee about the secret Saudi drone base. Perhaps that’s because they didn’t have a visual aid.

Via WIRED

Related Links:

An “Informal Arrangement” to Not Report the News

US Media Yet Again Conceals Newsworthy Government Secrets

Anonymous: Operation Goldman Sachs – February 14th

In Anonymous, News on February 7, 2013 at 10:30 PM

02/07/2013

Renowned hacking group Anonymous said it is planning to attack Goldman Sachs (NYSE: GS) on Feb. 14.

According to Anonymous’ Twitter account, the hacktivist group is planning on shutting down Goldman Sachs’ Facebook and Twitter page on Feb. 14 to express their hatred of the financial behemoth. The account tweeted out the request to their 869,000-plus Twitter followers on Thursday.

Anonymous reportedly released several e-flyers in several different languages today from its various Twitter accounts — all e-flyers say the attack will involve three steps: First, they are encouraging supporters to report the Goldman Sachs Facebook and Twitter accounts as spam. Then, the flyer provides a URL where users can fill out an abuse form on Twitter (you can do the same on Facebook), encouraging users to fill out the form and say Goldman Sachs has been abusing Twitter. The final step said to make “friendly” phone calls to the Goldman Sachs’ offices in London, Paris, or Dublin, depending on which flyer you saw.

The operation, dubbed “Operation Goldman Sachs,” is being run through an official Tumblr page. While “#OpGm” might be the most recent case of Anonymous hacking into Goldman Sachs, it isn’t the only instance that Anonymous has targeted the financial firm. Back in 2011, Anonymous published the private personal information of a number of Goldman employees, including CEO Lloyd Blankenfein. CNN wrote at the time that a Twitter user named CabinCr3w tweeted out that he had “doxxed,” or released, personal info of Goldman’s CEO, including Blankenfein’s age, education, recent addresses, and legal cases he had been involved in. At the time, Goldman Sachs declined to comment on the leak.

Reports also surfaced recently that Anonymous had hacked into the US Federal Reserve. In an interview with ABC News, ex-Anonymous member Greg Housh said the hack was a result of the lack of prosecution of “big bankers that caused a lot of the problems we’ve had over the last few years.” Housh also said to expect more Anonymous attacks on governments in the future.

The hack into the Federal Reserve resulted in the leaking of personal information of over 4,000 bankers. ABC News says the Federal Reserve hack may have been a part of “Operation Last Resort,” which was started earlier this year when Reddit co-founder Aaron Swartz commited suicide over charges of wire fraud, computer fraud, unlawfully obtaining information from a protected computer and recklessly damaging a protected computer. Swartz faced as much as 35 years in prison if he was found guilty.

According to Insider Media Group, the upcoming operation is due to a recent interview given by Huw Pill, a chief economist at Goldman. While talking to the Huffington Post, Pill suggested that France lower wages by approximately one-third in an effort to increase competition in the labor force. The Operation Goldman Sachs Tumblr page is written in French, and might be an indicator that French hackers may be planning an attack on Goldman due to those comments.

Advocates are turning to Twitter to express their support for Operation Goldman Sachs, under the hashtag #OpGm.

Via IBTimes

Safety Group Blows Lid on Secret Virus “Gene VI” Hidden in GMO Crops

In GMO, Monsanto, News, Other Leaks on February 7, 2013 at 10:11 PM

02/07/2013

Yet another disturbing reason has emerged as to why you should be avoiding health-devastating genetically modified organisms, and it may be one of the most concerning yet. We know that GMO consumption has been linked to a host of serious conditions, but one thing we are not so sure about is the recent discovery of a hidden viral gene deep within genetically modified crops.

For years, GMOs have been consumed knowingly and unknowingly around the globe, with Monsanto and the United States government claiming that the altered franken crops are perfectly safe despite very limited (or virtually none in some cases) initial testing and scientists speaking out against the dangers. One such danger that has actually not been spoken about has been revealed in a recent report by a safety watchdog group known as the European Food Safety Authority (EFSA).

Another Dirty Secret of Monsanto

In the EFSA report, you can find (within the scientific wording) that researchers discovered a previously unknown viral gene that is known as ‘Gene VI’. What’s concerning is that not only is the rogue gene found in the most prominent GMO crops and about 63% of GMO traits approved for use (54 out of 86 to be precise), but it can actually disrupt the very biological functions within living organisms. Popular GMO crops such as Roundup-Ready soybeans, NK603, and MON810 corn were found to contain the gene that induces physical mutations. NK603 maize, of course, was also recently linked to the development of mass tumors in rats.

According to Independent Science News, Gene VI also inhibits RNA silencing. As you may know, RNA silencing has been pinpointed as vital for the proper functioning of gene expression when it comes to RNA. Perhaps more topically, it is a defense mechanism against viruses in plants and animals alike. On the contrary, many viruses have developed genes that disable this protective process. Independent Science News reports that the Gene VI is one such gene.

Overall, there is a degree of knowledge on Gene VI. What we do know going by information within the report is that the gene:

  • Helps to assemble virus particles
  • Inhibits the natural defense of the cellular system
  • Produces proteins that are potentially problematic
  • Makes plants susceptible to bacterial pathogens

All of which are very significant effects that should be studied in depth by an independent team of scientists after GMO products are taken off the market pending further research on the entire array of associated diseases. And that does not even include the effects we are unaware of.

This is yet another incident in which Monsanto and other biotech companies are getting away with an offense against the citizens of the world with (most likely) no action taken by the United States government. What we have seen, however, is nations like Russia, Poland, Hungary, and Peru taking a stand against Monsanto in direct opposition to their disregard for public safety. Russia, in fact, banned Monsanto’s GMO corn variety after it was linked to mass tumors in rats.

As more and more dirty secrets come out from the GMO industry at large, it gives further reason and more support to remove GMOs as a whole from the food supply.

Via NaturalSociety

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