23 December 2012: After a lengthy, self-imposed informational black-out, my high-level DHS contact known as “Rosebud” emerged with new, non-public information about plans being discussed and prepared for implementation by the Department of Homeland Security (DHS) in the near future. It is important to note that this black-out was directly related to the aggressive federal initiative of identifying and prosecuting “leakers,” at least those leaks and leakers not sanctioned by the executive office – the latter of which there are many.
Due to those circumstances, my source exercised an abundance of caution to avoid compromising a valuable line of communication until he had information he felt was significant enough to risk external contact. The following information is the result of an in-person contact between this author and “Rosebud” within the last 48 hours. With his permission, the interview was digitally recorded and the relevant portions of the contact are provided in a conversational format for easier reading. The original recording was copied onto multiple discs and are maintained in secure locations for historical and insurance purposes.
The following began after an exchange of pleasantries and other unrelated discussion:
DH: Do I have your permission to record this conversation?
RB: You do.
DH: I’ve received a lot of e-mail from people wondering where you went and why you’ve been so quiet.
RB: As I told you earlier, things are very dicey. Weird things began to happen before the election and have continued since. Odd things, a clampdown of sorts. I started looking and I found [REDACTED AT THE REQUEST OF THIS SOURCE], and that shook me up. I’m not the only one, though, that found a [REDACTED], so this means there’s surveillance of people within DHS by DHS. So, that explains this cloak and dagger stuff for this meeting.
DH: I understand. What about the others?
RB: They are handling it the same way.
DH: I’ve received many e-mails asking if you are the same person giving information to Ulsterman. Are you?
RB: No, but I think I know at least one of his insiders.
DH: Care to elaborate?
RB: Sorry, no.
DH: Do you trust him or her. I mean, the Ulsterman source?
DH: Okay, so last August, you said things were “going hot.” I printed what you said, and things did not seem to happen as you said.
RB: You’d better recheck your notes and compare [them] with some of the events leading up to the election. I think you’ll find that a full blown campaign of deception took place to make certain Obama got back into office. The polls, the media, and a few incidents that happened in the two months before the election. I guess if people are looking for some big event they can point to and say “aha” for verification, well then I overestimated people’s ability to tell when they are being lied to.
DH: What specific incidents are you referring to?
RB: Look at the threats to Obama. Start there. The accusations of racism. Then look at the polls, and especially the judicial decisions about voter ID laws. Bought and paid for, or where there was any potential for problems, the judges got the message, loud and clear. Then look at the voter fraud. And not a peep from the Republicans. Nothing. His second term was a done deal in September. This was planned. Frankly, the Obama team knew they had it sewn up long before election day. Benghazi could have derailed them, but the fix was in there, so I never saw anything on my end to suggest a ready-made solution had to be implemented.
DH: What’s going on now?
RB: People better pay close attention over the next few months. First, there won’t be any meaningful deal about the fiscal crisis. This is planned, I mean, the lack of deal is planned. In fact, it’ necessary to pave the way for what is in the short term agenda.
DH: Wait, you’re DHS – not some Wall Street insider.
RB: So you think they are separate agendas? That’s funny. The coming collapse of the U.S. dollar is a done deal. It’s been in the works for years – decades, and this is one of the most important cataclysmic events that DHS is preparing for. I almost think that DHS was created for that purpose alone, to fight Americans, not protect them, right here in America. But that’s not the only reason. There’s the gun issue too.
DH: So, what are you seeing at DHS?
RB: We don’t have a lot of time, tonight – our meeting – as well as a country. I mean I have heard – with my own ears – plans being made that originate from the White House that involve the hierarchy of DHS. You gotta know how DHS works at the highest of levels. It’s Jarrett and Napolitano, with Jarrett organizing all of the plans and approaches. She’s the one in charge, at least from my point of view, from what I am seeing. Obama knows that’s going on and has say, but it seems that Jarrett has the final say, not the other way around. It’s [screwed] up. This really went into high gear since the election.
But it’s a train wreck at mid management, but is more effective at the lower levels. A lot of police departments are being gifted with federal funds with strings attached. That money is flowing out to municipal police departments faster than it can be counted. They are using this money to buy tanks, well, not real tanks, but you know what I mean. DHS is turning the police into soldiers.
By the way, there has been a lot of communication recently between Napolitano and Pistole [TSA head]. They are planning to use TSA agents in tandem with local police for certain operations that are being planned right now. This is so [deleted] important that you cannot even begin to imagine. If you get nothing else out of this, please, please make sure you tell people to watch the TSA and their increasing involvement against the American public. They are the stooges who will be the ones to carry out certain plans when the dollar collapses and the gun confiscation begins.
DH: Whoa, wait a minute. You just said a mouthful. What’s the agenda here?
RB: Your intelligence insider – he knows that we are facing a planned economic collapse. You wrote about this in your articles about Benghazi, or at least that’s what I got out of the later articles. So why the surprise?
DH: There’s a lot here. Let’s take it step by step if you don’t mind.
RB: Okay, but I’m not going to give it to you in baby steps. Big boy steps. This is what I am hearing. Life for the average American is going to change significantly, and not the change people expect. First, DHS is preparing to work with police departments and the TSA to respond to civil uprisings that will happen when there is a financial panic. And there will be one, maybe as early as this spring, when the dollar won’t get you a gumball. I’m not sure what the catalyst will be, but I’ve heard rumblings about a derivatives crisis as well as an oil embargo. I don’t know, that’s not my department. But something is going to happen to collapse the dollar, which has been in the works since the 1990′s. Now if it does not happen as soon as this, it’s because there are people, real patriots, who are working to prevent this, so it’s a fluid dynamic. But that doesn’t change the preparations.
And the preparations are these: DHS is prepositioning assets in strategic areas near urban centers all across the country. Storage depots. Armories. And even detainment facilities, known as FEMA camps. FEMA does not even know that the facilities are earmarked for detainment by executive orders, at least not in the traditional sense they were intended. By the way, people drive by some of these armories everyday without even giving them a second look. Commercial and business real estate across the country are being bought up or leased for storage purposes. Very low profile.
Anyway, I am hearing that the plan from on high is to let the chaos play out for a while, making ordinary citizens beg for troops to be deployed to restore order. but it’s all organized to make them appear as good guys. That’s when the real head knocking will take place. We’re talking travel restrictions, which should no be a problem because gas will be rationed or unavailable. The TSA will be in charge of travel, or at least be a big part of it. They will be commissioned, upgraded from their current status.
They, I mean Jarrett and Obama as well as a few others in government, are working to create a perfect storm too. This is being timed to coincide with new gun laws.
DH: New federal gun laws?
RB: Yes. Count on the criminalization to possess just about every gun you can think of. Not only restrictions, but actual criminalization of possessing a banned firearm. I heard this directly from the highest of my sources. Plans were made in the 90′s but were withheld. Now, it’s a new day, a new time, and they are riding the wave of emotion from Sandy Hook., which, by the way and as tragic as it was, well, it stinks to high heaven. I mean there are many things wrong there, and first reports are fast disappearing. The narrative is being changed. Look, there is something wrong with Sandy Hook, but if you write it, you’ll be called a kook or worse.
RB: But Sandy Hook, there’s something very wrong there. But I am hearing that won’t be the final straw. There will be another if they think it’s necessary.
DH: Another shooting?
DH: That would mean they are at least complicit.
RB: Well, that’s one way of looking at it.
DH: Are they? Were they?
RB: Do your own research. Nothing I say, short of bringing you photographs and documents will convince anyone, and even then, it’s like [DELETED] in the wind.
RB: So what I’m telling you is that DHS, the TSA and certain, but not all, law enforcement agencies are going to be elbow deep in riot control in response to an economic incident. At the same time or close to it, gun confiscation will start. It will start on a voluntary basis using federal registration forms, then an amnesty, then the kicking-in of doors start.
Before or at the same time, you know all the talk of lists, you know, the red and blue lists that everyone made fun of? Well they exist, although I don’t know about their colors. But there are lists of political dissidents maintained by DHS. Names are coordinated with the executive branch, but you know what? They did not start with Obama. They’ve been around in one form or another for years. The difference though is that today, they are much more organized. And I’ll tell you that the vocal opponents of the politics of the global elite, the bankers, and the opponents of anything standing in their way, well, they are on the top of the list of people to be handled.
RB: As the situations worsen, some might be given a chance to stop their vocal opposition. Some will, others won’t. I suppose they are on different lists. Others won’t have that chance. By that time, though, it will be chaos and people will be in full defensive mode. They will be hungry, real hunger like we’ve never experienced before. They will use our hunger as leverage. They will use medical care as leverage.
DH: Will this happen all at once?
RB: They hope to make it happen at the same time. Big cities first, with sections being set apart from the rest of the country. Then the rural areas. There are two different plans for geographical considerations. But it will all come together.
End of Part I
24 December 2012: The following is the second part of my in-person interview with a DHS insider. For Part I, please click HERE.
DH: Wait, this sounds way, way over the top. Are you telling me… [Interrupts]
RB: [Over talk/Unintelligible] …know who was selected or elected twice now. You know who his associates are. And you are saying this is way over the top? Don’t forget what Ayers said – you talked to Larry Grathwohl. This guy is a revolutionary. He does not want to transform our country in the traditional sense. He will destroy it. And he’s not working alone. He’s not working for himself, either. He has his handlers. So don’t think this is going to be a walk in the park, with some type of attempt to rescue the country. Cloward-Piven. Alinsky. Marx. All rolled into one. And he won’t need the rest of his four years to do it.
DH: I need you to be clear. Let’s go back again, I mean, to those who speak out about what’s happening.
RB: [Edit note: Obviously irritated] How much clearer do you want it? The Second Amendment will be gone, along with the first, at least practically or operationally. The Constitution will be gone, suspended, at least in an operational sense. Maybe they won’t actually say that they are suspending it, but will do it. Like saying the sky is purple when it’s actually blue. How many people will look a the sky and say yeah, it’s purple? They see what they want to see.
So the DHS, working with other law enforcement organizations, especially the TSA as it stands right now, will oversee the confiscation of assault weapons, which includes all semi-automatic weapons following a period of so-called amnesty. It also includes shotguns that hold multiple rounds, or have pistol grips. They will go after the high capacity magazines, anything over, say 5 rounds.
They will also go after the ammunition, especially at the manufacturer’s level. They will require a special license for certain weapons, and make it impossible to own anything. More draconian than England. This is a global thing too. Want to hunt? What gives you the right to hunt their animals? Sound strange? I hope so, but they believe they own the animals. Do you understand now, how sick and twisted this is? Their mentality?
The obvious intent is to disarm American citizens. They will say that we’ll still be able to defend ourselves and go hunting, but even that will be severely regulated. This is the part that they are still working out, though. While the plans were made years ago, there is some argument over the exact details. I know that Napalitano, even with her support of the agenda, would like to see this take place outside of an E.O. [Executive Order] in favor of legislative action and even with UN involvement.
DH: But UN involvement would still require legislative approval.
RB: Yes, but your still thinking normal – in normal terms. Stop thinking about a normal situation. The country is divided, which is exactly where Obama wants us to be. We are as ideologically divided as we were during the Civil War and that rift is growing every day. Add in a crisis – and economic crisis – where ATM and EBT cards will stop working. Where bank accounts will contain nothing but air. They are anticipating a revolution and a civil war rolled into one (emphasis added by this author).
Imagine when talk show hosts or Bloggers or some other malcontent gets on the air or starts writing about the injustice of it all, and about how Obama is the anti-Christ or something. They will outlaw such talk or writing as inciting the situation – they will make it illegal by saying that it is causing people to die. The Republicans will go along with everything as it’s – we have – a one party system. Two parties is an illusion. It’s all so surreal to talk about but you see where this is headed, right?
DH: Well, what about the lists?
RB: Back to that again, okay. Why do you think the NSA has surveillance of all communications? To identify and stop terrorism? Okay, to be fair, that is part of it, but not the main reason. The federal agencies have identified people who present a danger to them and their agendas. I don’t know if they are color coded like you mentioned, red blue purple or peach mango or whatever, but they exist. In fact, each agency has their own. You know, why is it so [deleted] hard for people to get their heads around the existence of lists with names of people who pose a threat to their plans? The media made a big deal about Nixon’s enemies list and everyone nodded and said yeah, that [deleted], but today? They’ve been around for years and years.
DH: I think it’s because of the nature of the lists today. What do they plan to do with their enemies?
RB: Go back to what Ayers said when, in the late 60′s? 70′s? I forget. Anyway, he was serious. But to some extent, the same thing that happened before. They – the people on some of these lists – are under surveillance, or at least some, and when necessary, some are approached and made an offer. Others, well, they can be made to undergo certain training. Let’s call it sensitivity training, except on a much different level. Others, most that are the most visible and mainstream are safe for the most part. And do you want to know why? It’s because they are in the pockets of the very people we are talking about, but they might or might not know it. Corporate sponsorship – follow the money. You know the drill. You saw it happen before, with the birth certificate.
It’s people that are just under the national radar but are effective. They have to worry. Those who have been publicly marginalized already but continue to talk or write or post, they are in trouble. It’s people who won’t sell out, who think that they can make a difference. Those are the people who have to worry.
Think about recent deaths that everybody believes were natural or suicides. Were they? People are too busy working their [butts] off to put food on the table to give a damn about some guy somewhere who vapor locks because of too many doughnuts and coffee and late nights. And it seems plausible enough to happen. This time, when everything collapses, do you think they will care if it is a bullet or a heart attack that takes out the opposition? [Deleted] no.
DH: That’s disturbing. Do you… [interrupts]
RB: Think about the Oklahoma City bombing in ’95. Remember how Clinton blamed that on talk radio, or at least in part. Take what happened then and put it in context of today. Then multiply the damnation by 100, and you will begin to understand where this is going. People like Rush and Hannity have a narrow focus of political theater. They’ll still be up and running during all of this to allow for the appearance of normal. Stay within the script, comrade.
But as far as the others, they have certain plans. And these plans are becoming more transparent. They are getting bolder. They are pushing lies, and the bigger the lie, the easier it is to sell to the people. They will even try to sell a sense of normalcy as things go absolutely crazy and break down. It will be surreal. And some will believe it, think that it’s only happening in certain places, and we can draw everything back once the dust settles. But when it does, this place will not be the same.
DH: Will there be resistance within the ranks of law enforcement? You know, will some say they won’t go along with the plan, like the Oath Keepers?
RB: Absolutely. But they will not only be outnumbered, but outgunned – literally. The whole objective is to bring in outside forces to deal with the civil unrest that will happen in America. And where does their allegiance lie? Certainly not to Sheriff Bob. Or you or me.
During all of this, and you’ve got to remember that the dollar collapse is a big part of this, our country is going to have to be redone. I’ve seen – personally – a map of North America without borders. Done this year. The number 2015 was written across the top, and I believe that was meant as a year. Along with this map – in the same area where this was – was another map showing the United States cut up into sectors. I’m not talking about what people have seen on the internet, but something entirely different. Zones. And a big star on the city of Denver.
Sound like conspiracy stuff on the Internet? Yup. But maybe they were right. It sure looks that way. It will read that way if you decide to write about this. Good luck with that. Anyway, the country seemed to be split into sectors, but not the kind shown on the internet. Different.
DH: What is the context of that?
RB: Across the bottom of this was written economic sectors. It looked like a work in progress, so I can’t tell you any more than that. From the context I think it has to do with the collapse of the dollar.
DH: Why would DHS have this? I mean, it seems almost contrived, doesn’t it?
RB: Not really, when you consider the bigger picture. But wait before we go off into that part. I need to tell you about Obamacare, you know, the new health care coming up. It plays a big part – a huge [deleted] part in the immediate reshaping of things.
DH: How so?
RB: It creates a mechanism of centralized control over people. That’s the intent of this monster of a bill, not affordable health care. And it will be used to identify gun owners. Think your health records are private? Have you been to the doctor lately? Asked about owning a gun? Why do you think they ask, do you think they care about your safety? Say yes to owning a gun and your information is shared with another agency, and ultimately, you will be identified as a security risk. The records will be matched with other agencies.
You think that they are simply relying on gun registration forms? This is part of data collection that people don’t get. Oh, and don’t even think about getting a script for some mood enhancement drug and being able to own a gun.
Ayers and Dohrn are having the times of their lives seeing things they’ve worked for all of their adult lives actually coming to pass. Oh, before I forget, look at the recent White House visitor logs.
DH: Why? Where did that come from?
RB: Unless they are redacted, you will see the influence of Ayers. Right now. The Weather Underground has been reborn. So has their agenda.
DH: Eugenics? Population control?
RB: Yup. And re-education camps. But trust me, you write about this, you’ll be called a kook. It’s up to you, it’s your reputation, not mine. And speaking about that, you do know that this crew is using the internet to ruin people, right? They are paying people to infiltrate discussion sites and forums to call people like you idiots. Show me the proof they say. Why doesn’t you source come forward? If he knows so much, why not go to Fox or the media? To them, if it’s not broadcast on CNN, it’s not real. Well, they’ve got it backwards. Very little on the news is real. The stock market, the economy, the last presidential polls, very little is real.
But this crew is really internet savvy. They’ve got a lot of people they pay to divert issues on forums, to mock people, to marginalize them. They know what they’re doing. People think they’ll take sites down – hack them. Why do that when they are more effective to infiltrate the discussion? Think about the birth certificate, I mean the eligibility problem of Obama. Perfect example.
DH: How soon do you see things taking place?
RB: They already are in motion. If you’re looking for a date I can’t tell you. Remember, the objectives are the same, but plans, well, they adapt. They exploit. Watch how this fiscal cliff thing plays out. This is the run-up to the next beg economic event.
I can’t give you a date. I can tell you to watch things this spring. Start with the inauguration and go from there. Watch the metals, when they dip. It will be a good indication that things are about to happen. I got that little tidbit from my friend at [REDACTED].
NOTE: At this point, my contact asked me to reserve further disclosures until after the inauguration.
DHS Insider: Obama’s cyber warriors & preparing for collapse
6 February 2013; The following information was provided to me by my DHS contact on two different occasions. Information from my first contact was previously published in two parts (here and here). I was asked to withhold the final portion of the information that was provided to me at that time until after the inauguration. The following resumes where part II left off. At the request of this source and for the sake of continuity, the following combines the information withheld and the information from our most recent contact on 4 February 2013.
DH: Do I have your permission to record this conversation?
RB: Please do.
DH: We’ve spoken at different times since the information you gave me was published. You have since given me additional information on top of the information you asked me to withhold until after the inauguration. First, what was the reason for asking me to wait to publish the remainder of our discussion until after the inauguration?
RB: This bunch, top level DHS brass, is clamping down on leaks. One way they are finding leakers is to put out false information specific to certain individuals. They can trace the information directly to the leaker due to the nature and specificity of the information. It was part self-preservation, part vetting one of my closest and most important contacts. It was a test to assure that I am not being used for disinformation purposes or being targeted as a leaker. It was something I felt I had to do, and I’m glad I did. I feel more comfortable now about my sources.
DH: So, if I understand you correctly, your sources “passed” whatever test you were performing?
DH: And you still have access to information, I mean, whistleblower type information?
RB: I know what you mean, so I guess that’s one way to put it. Okay.
DH: For continuity and to refresh your memory, I’m going to play the remainder of our recorded interview from our contact last month.
[At this point, we listened to the dialogue previously recorded. After the recording concluded, this DHS source suggested that we combine new information with the previously recorded information to avoid unnecessary repetition. It was agreed and the recorder was turned back on with his consent].
DH: Just to be clear, let me hit this again. The main reason you asked me to wait to publish your previous statements had more to do with you, your sources and well, your own self preservation than the content of our discussion.
RB: I guess you could say that. But the information is still valid and becomes even more important when combined with the latest information I have for you.
DH: Okay, we can get on with it, then.
RB: First of all, two days after the inauguration, at exactly 7:00 a.m. on January 23, something called “the Cyber-Warriors for Obama Project” was activated. I heard about this the week after the election, but only saw a hardcopy draft in late December. From what I was told, I believe this is a project that is being paid for through funds from Obama’s political corporation, the 501(c)4 Organizing for Obama, I believe it’s called. I can’t be sure, but that’s what I was told.
At that time, I was shown a white, three-ring binder with Obama’s circular campaign logo imprinted on the outside of the binder with the name “Cyber-Warriors for Obama” printed in blue across the top. Inside were the names and e-mail addresses of 3,575 “cyber assets,” or “warriors,” listed in alphabetical order under about a dozen or so “team leaders.” From a separate sheet I was shown, most of these “assets” are being paid just over minimum wage, but as I understand it, they work from home and have no overhead. I believe there are about two dozen supervisors who make substantially more.
Now I only had the binder for a minute, and could not take it from the room I was in, so this is strictly from memory.
It was tabbed, and one section with the word “targets” had a list of religious web sites, web sites I recognized as Christian. Another section was a listing of conservative Internet sites. There was another tab with the label “problem sites” that seemed quite extensive. I looked at that section, and it was broken down further into “birther” sites, “pro-gun” sites, “anti-abortion” sites, just to name a few.
There was also a section of the usual news sites, like CNN, ABC, you know. Numerous e-mail addresses were conspicuous under each news organization, which also included Fox… [unintelligible]. I figured you were going to ask.
The first page of the binder had bullet points labeled “objectives” and instructions for the cyber-assets. There was also a very detailed non-disclosure agreement with the word “DRAFT” typed in big, light grey letters across the body of the two-page agreement. The agreement and the instructions were typed on white paper with a warning, printed in red on each page, that the document was not to be copied or disseminated.
DH: Where did you see this? I mean, was it at DHS?
RB: Yes, and that’s as much as I can say on the location.
DH: What’s the magic behind the number 3,575?
RB: I asked the person showing me [the binder] that question. Supposedly, it has to do with their budget, or the project funding.
DH: Go on.
RB: The instructions seemed very specific. Infiltrate web forums, collect screen names, avatars, and posters’ tag lines, and attempt to resolve these to their actual identities. I read one paragraph that listed circumstances when the “asset” was only to monitor but do not disrupt without authorization. There was another section titled “Divert, Disrupt and Destroy,” listing “how to’s” in certain cases.
There was also a section on maintaining a social media presence, and another on the most effective use of Twitter.
Lastly, there was a “reference section,” which included statistics, specific language to use to marginalize different posters, and effective methods to discredit people while maintaining a sense of legitimacy.
It was surreal, to say the least.
Oh, one more thing that’s important. As I said, these “kids,” or young people I believe, are known collectively as “Cyber-Warriors for Obama.” The subheading was “And the truth shall set you free.” Truth? Really? They were hired on their hacking abilities, or more precisely on their abilities to make postings through proxy servers and effectively use alternate identities and multiple e-mail addresses. Their purpose is to spread disinformation, not truth.
There were also motivational statements on various pages, including one that referred to Obama as the “Pharaoh of the Internet,” which I thought was an odd characterization.
But what’s important is that suddenly, through the use of Internet aliases, multiple e-mail addresses, and screen names, a project that employs 3,575 people will have the appearance and effectiveness of maybe 10,000 or more different people.
DH: Do you know if these “team members” have their own copies of the binder you saw?
RB: No. I was told that these people were hired through the campaign offices located throughout the country, and that training meetings were held at various locations. The binders were for instructional purposes, not to hand out. Although I think the people have, or were given, a list of web sites.
I don’t know any more on the actual mechanics of the project.
DH: During our previous contact, you said that we should listen to Obama’s comments about the economy, I mean during the inaugural speech. What’s so significant about that?
RB: Well, this is perhaps the most important issue people need to understand. There will be, and was, talk of a recovery and a stronger economy, but it’s all propaganda. As you heard me say in the recording you just played, the complete inaugural address will be a “Baghdad Bob” moment, and it was. Many economists will use false figures and statistics to deceive the American people. People must not downplay the importance of the economic aspect of this address. The sudden collapse of the U.S. dollar (however it actually plays out) and everything that goes with it (such as social chaos and riots) will be one part of a plan that was set in motion a long time ago.
DH: And you are getting this from your current intelligence sources? Frankly, I’m not sure I completely understand the connection between DHS and what’s going on with the economy. Seems like it should be separate.
RB: What’s not to understand? The economic devastation that will take place is an attack, a planned attack on the U.S. Just look at it that way. This “regime” already knows the outcome, which is the debasement of our national currency. Like I said, it’s been in the works most recently since the 1990′s. A collapse does not happen without a lot of pain – people losing everything in their retirement accounts, savings and so on. Don’t you think that will cause one hell of a national security problem? And who is running our national or domestic security? DHS.
Oh, and one of the reasons I wanted to include more recent information into our discussion relates to something you did last month, after our talk. I know you said you did not want to source your own work, but there was one important radio program you did that caused a very angry response inside DHS.
DH: How so?
RB: You had a financial insider on your program who went by some letter, like the first or last letter of his name.
DH: Yes, that was “V” who is a source for Steve Quayle. We did a program at the beginning of January, I think – I’d have to look. [Edited to add that the actual program was 11 January 2013.]
RB: Yeah, that was it. If you ask your network, I think you’ll find a request was made for the transcript of that program by DHS. The information given by that source was protected, or confidential, especially regarding the actions of big bankers here in the U.S. and the foreign markets. These international bankers are playing a big role in killing the U.S., and although they’re bold, they still don’t want certain things disclosed before their time.
DH: But that information had nothing to do with national security. I mean, how would this relate to DHS?
RB: Now you’re giving me a headache [laughter]. Let me spell it out for you, and this is the crux of everything. We have Obama (or whatever his real name is) in the Oval Office. You’ve said it before, that America is a “captured operation.” Well, it is, and every top level operative at DHS and Justice knows it. They have his dossier.
Think about Obama’s mother working in microfinance with Timothy Geithner’s father. What are the odds? And that’s just one “coincidence.”
A lot of people won’t get this until it’s too late, or maybe never get it. But take a good look at Obama and the people who surround him. Look at the 2008 economic crisis under Bush. Look at the run up to where we’re at today. The orchestrated boom of the 1990′s. The GLB Act signed into law under Clinton that changed the complexion of our domestic economy. Look at the people who are still around, the architects of this. It’s a big lie! It’s all been rigged, and the insiders know this! Look at the continuity of agenda since “Bush senior.”
Now listen to what I am telling you. This is a continuing operation that involves many of the same people on both sides of the aisle in Washington. This is one of the reasons why no one wants to talk about Obama’s past. He is the product of a continuing intelligence operation, put in power to oversee the dismantling of the U.S., with the economy being the lynchpin of our destruction. Obama, Jarrett, and the Clintons are in constant contact with all high level operatives inside the DHS. Perhaps not directly in all cases but through their contacts. They are working together to see to it that the U.S. economy is brought down, robbing the people of their wealth and then blaming partisan politics for the crash.
For the first time in recent history, you’re going to see people hungry and out in the streets. Those unprepared or those thinking this is all [expletive deleted]. Desperate and begging for food. Think Katrina, but on a national scale. That’s what is being planned for Americans, and few people are willing to see what’s happening, or willing to believe it. Now here’s where DHS, my sources and information comes in.
Everybody is looking at the gun “problem” in America. Fights over the Second Amendment. State laws that go against the Constitution. Blame it on Sandy Hook or Colorado. Tell people we need to be disarmed because it’s for the children. It’s all [expletive deleted]. Most people know it’s all [expletive deleted], but that’s where their rational assessment stops. Why do you think the people in power want to – no – need to disarm the public? It’s because they are planning an economic collapse, and an armed and informed populace is a danger to their plan.
DH: Wait, wouldn’t it make sense to let the guns stay in the hands of the people and have the people shoot it out among themselves? Wouldn’t this fit in with their desire for chaos, and make it easier for Martial Law to be implemented?
RB: In a way, but you’re still not thinking big enough. The way this is being planned includes that scenario, but they are very afraid that once total chaos breaks out, they will become the targets. So to a point you’re right, but then a crackdown must take place.
DH: But the elected ones are well protected.
RB: Yeah, but you are not thinking like them. There are several scenarios or models they have commissioned. They exist in printed form and have been given to Obama and Jarrett specifically. It’s war gaming with the American people. That caused some mid-level military people with a conscience to ask what the hell is going on, and some even refused to take part in these exercises. By the way, Napolitano is the go-to person for these models.
Anyway, there is a fear that their own people won’t be loyal to them when everything begins to implode. You’ve been seeing purges lately. Remember what Jarrett supposedly said about being “hell to pay” after the re-election? That process has started.
DH: Those who have been “purged” – why haven’t we seen anyone speak out about what’s going on?
RB: They’ve been threatened. Some were not worth even being threatened and became “examples.”
DH: Like who?
RB: Oh c’mon, look at the recent mysterious deaths. Pick one.
DH: Okay, but wouldn’t they be safer by speaking out, by telling everything they know? Some ordinary people might call them cowards. Why not just go public [interrupted/over talk]
RB: Yeah, how’d that work out so far? And go public to who? CNN? They are in real danger, and so are their families. Anyone close to them. Even if one or two would go public, how do you think that would work out for them? I’ll tell you how. They would make [Senator] McCarthy look like an American hero, which he was, but that’s… They’ve made it so that no one will be able to make any real difference to their agenda. They know that.
DH: So no one is going to say anything – ever?
RB: That’s not what I said. Some will talk when the time is right. Some have “insurance policies” that will be used at the right time, when they will make the most difference.
DH: I feel like we’re getting off point. So, what is being planned?
RB: The DHS will oversee the domestic crackdown that will happen when the perfect storm bears down on us. And the perfect storm is the economy, meaning the U.S. dollar collapse and hyperinflation, racial or class riots sparked by a high-profile incident, and another mass causality event involving guns. Watch for these three things to happen all at once, or in close succession.
The polarization caused by these events will be sufficient to cause a second civil war.
DH: When? How soon will all of this happen?
RB: I don’t have a crystal ball, but I have seen various reports referencing unprecedented “drills” to take place in later March and April. I’ll mention this because I know a lot of people on the inside at DHS have seen this. A document called “Operation Thunderdome.” It’s maybe 50 or 60 pages, I’m not certain. It describes an economic collapse in the U.S., followed by an attack on the government by “a made-up patriotic group.” It combines gun owners, Constitutionalists, and even Christians into an enemy group that pulls off an attack in Washington.
But don’t fall into the trap of trying to pick the time of these events. Their plans are flexible, but their objectives are carved in stone.
DH: Sounds like a Reichstag type event – sometime.
RB: Exactly. Maybe not just one. They have plans and back-up plans and back-ups for the back-ups. And in spite of the warnings, and history, enough people will be outraged and side with the government. This brings me to my final point. What do you think all of the prepositioning of paramilitary assets, caches of ammunition, and the opening of non-descript buildings owned or leased by the federal government are for?
It’s for you and people like you. It’s for those who are turned in by their neighbors, friends, co-workers, and others who are hungry, broke and broken. What we are about to experience will be like it was during the Civil War, only worse. People will be outgunned, surveillance will be everywhere, and it will be much more difficult to hide and fight back. Not impossible, but more difficult.
DH: So you’re painting a picture of a Mad Max scenario, hence the reference to Thunderdome?
RB: Believe it or not, part of the model, or at least one of them, includes the depiction of a somewhat “normal” society, at least after the initial “hostilities.” People will be controlled by the national government, centralized – in order to escape the chaos. Think of it this way. You want food and medical care? You will not be able to own a gun, period. The current federal legislation is all window dressing – a distraction. No one expects anything meaningful to pass. It won’t have to. States, yes, but those states are lining up for federal money. The elected leaders are of the same ideology as Obama, but aside from those, we’ll see many people turning in their weapons for food, shelter, medical care, and false guarantees of safety. That’s what the new normal will look like.
As I said, you’ve got to think bigger – much bigger. The lies are bigger than most people can imagine. The people at the top are laughing at us. Think about that. They are laughing at us because it’s right in front of our noses. And you know, the bigger the lie…
DH: Yes, the more people will fall for it.
RB: Right. I think we’re done here for now. I’ve given you as much information as I know, as I have seen. Watch the economy – the indicators. Watch for a false flag. We are being baited. Let people pooh-pooh this information, seek information through FOI requests. Not gonna happen. We’re talking about an operation so black and so big, and one that has to be done in the next few years, under Obama.
This is something that is international in scope. The plan is international, and is dedicated to the dismantling or destruction of America. It’s happening right in front of us, but too few can actually see it.
DH: I’m sure you, well… We’ll be accused of scaring people without citable evidence.
RB: People need to wake up. Believe me or don’t. It’s their choice.
DH: Wait, one more thing. What should we be looking for next?
RB: Look around. You’re seeing it. We’ll talk again. Please shut off the recorder.
Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar’s structure isn’t in doubt.08/13/2012 By Martin Hesse
Otmar Issing is looking a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.
He begins with an anecdote. “Dear Otmar, congratulations on an impossible job.” That’s what the late Nobel Prize-winning American economist Milton Friedman wrote to him when Issing became a member of the ECB Executive Board. Right from the start, Friedman didn’t believe that the new currency would survive. Issing at the time saw the euro as an “experiment” that was nevertheless worth fighting for.
Fourteen years later, Issing is still fighting long after he’s gone into retirement. But just next door on the stock exchange floor, and in other financial centers around the world, apparently a great many people believe that Friedman’s prophecy will soon be fulfilled.
Banks, investors and companies are bracing themselves for the possibility that the euro will break up — and are thus increasing the likelihood that precisely this will happen.
There is increasing anxiety, particularly because politicians have not managed to solve the problems. Despite all their efforts, the situation in Greece appears hopeless. Spain is in trouble and, to make matters worse, Germany’s Constitutional Court will decide in September whether the European Stability Mechanism (ESM) is even compatible with the German constitution.
There’s a growing sense of resentment in both lending and borrowing countries — and in the nations that could soon join their ranks. German politicians such as Bavarian Finance Minister Markus Söder of the conservative Christian Social Union (CSU) are openly calling for Greece to be thrown out of the euro zone. Meanwhile the the leader of Germany’s opposition center-left Social Democrats (SPD), Sigmar Gabriel, is urging the euro countries to share liability for the debts.
On the financial markets, the political wrangling over the right way to resolve the crisis has accomplished primarily one thing: it has fueled fears of a collapse of the euro.
Cross-Border Bank Lending Down
Banks are particularly worried. “Banks and companies are starting to finance their operations locally,” says Thomas Mayer who until recently was the chief economist at Deutsche Bank, which, along with other financial institutions, has been reducing its risks in crisis-ridden countries for months now. The flow of money across borders has dried up because the banks are afraid of suffering losses.
According to the ECB, cross-border lending among euro-zone banks is steadily declining, especially since the summer of 2011. In June, these interbank transactions reached their lowest level since the outbreak of the financial crisis in 2007.
In addition to scaling back their loans to companies and financial institutions in other European countries, banks are even severing connections to their own subsidiaries abroad. Germany’s Commerzbank and Deutsche Bank apparently prefer to see their branches in Spain and Italy tap into ECB funds, rather than finance them themselves. At the same time, these banks are parking excess capital reserves at the central bank. They are preparing themselves for the eventuality that southern European countries will reintroduce their national currencies and drastically devalue them.
“Even the watchdogs don’t like to see banks take cross-border risks, although in an absurd way this runs contrary to the concept of the monetary union,” says Mayer.
Since the height of the financial crisis in 2008, the EU Commission has been pressuring European banks to reduce their business, primarily abroad, in a bid to strengthen their capital base. Furthermore, the watchdogs have introduced strict limitations on the flow of money within financial institutions. Regulators require that banks in each country independently finance themselves. For instance, Germany’s Federal Financial Supervisory Authority (BaFin) insists that HypoVereinsbank keeps its money in Germany. When the parent bank, Unicredit in Milan, asks for an excessive amount of money to be transferred from the German subsidiary to Italy, BaFin intervenes.
Unicredit is an ideal example of how banks are turning back the clocks in Europe: The bank, which always prided itself as a truly pan-European institution, now grants many liberties to its regional subsidiaries, while benefiting less from the actual advantages of a European bank. High-ranking bank managers admit that, if push came to shove, this would make it possible to quickly sell off individual parts of the financial group.
In effect, the bankers are sketching predetermined breaking points on the European map. “Since private capital is no longer flowing, the central bankers are stepping into the breach,” explains Mayer. The economist goes on to explain that the risk of a breakup has been transferred to taxpayers. “Over the long term, the monetary union can’t be maintained without private investors,” he argues, “because it would only be artificially kept alive.”
The fear of a collapse is not limited to banks. Early last week, Shell startled the markets. “There’s been a shift in our willingness to take credit risk in Europe,” said CFO Simon Henry.
He said that the oil giant, which has cash reserves of over $17 billion (€13.8 billion), would rather invest this money in US government bonds or deposit it on US bank accounts than risk it in Europe. “Many companies are now taking the route that US money market funds already took a year ago: They are no longer so willing to park their reserves in European banks,” says Uwe Burkert, head of credit analysis at the Landesbank Baden-Württemberg, a publicly-owned regional bank based in the southern German state of Baden-Württemberg.
And the anonymous mass of investors, ranging from German small investors to insurance companies and American hedge funds, is looking for ways to protect themselves from the collapse of the currency — or even to benefit from it. This is reflected in the flows of capital between southern and northern Europe, rapidly rising real estate prices in Germany and zero interest rates for German sovereign bonds.
‘Euro Experiment is Increasingly Viewed as a Failure’
One person who has long expected the euro to break up is Philipp Vorndran, 50, chief strategist at Flossbach von Storch, a company that deals in asset management. Vorndran’s signature mustache may be somewhat out of step with the times, but his views aren’t. “On the financial markets, the euro experiment is increasingly viewed as a failure,” says the investment strategist, who once studied under euro architect Issing and now shares his skepticism. For the past three years, Vorndran has been preparing his clients for major changes in the composition of the monetary union.
They are now primarily investing their money in tangible assets such as real estate. The stock market rally of the past weeks can also be explained by this flight of capital into real assets. After a long decline in the number of private investors, the German Equities Institute (DAI) has registered a significant rise in the number of shareholders in Germany.
Particularly large amounts of money have recently flowed into German sovereign bonds, although with short maturity periods they now generate no interest whatsoever. “The low interest rates for German government bonds reflect the fear that the euro will break apart,” says interest-rate expert Burkert. Investors are searching for a safe haven. “At the same time, they are speculating that these bonds would gain value if the euro were actually to break apart.”
The most radical option to protect oneself against a collapse of the euro is to completely withdraw from the monetary zone. The current trend doesn’t yet amount to a large-scale capital flight from the euro zone. In May, (the ECB does not publish more current figures) more direct investments and securities investments actually flowed into Europe than out again. Nonetheless, this fell far short of balancing out the capital outflows during the troubled winter quarters, which amounted to over €140 billion.
The exchange rate of the euro only partially reflects the concerns that investors harbor about the currency. So far, the losses have remained within limits. But the explanation for this doesn’t provide much consolation: The main alternative, the US dollar, appears relatively unappealing for major investors from Asia and other regions. “Everyone is looking for the lesser of two evils,” says a Frankfurt investment banker, as he laconically sums up the situation. Yet there’s growing skepticism about the euro, not least because, in contrast to America and Asia, Europe is headed for a recession. Mayer, the former economist at Deutsche Bank, says that he expects the exchange rates to soon fall below 1.20 dollars.
“We notice that it’s becoming increasingly difficult to sell Asians and Americans on investments in Europe,” says asset manager Vorndran, although the US, Japan and the UK have massive debt problems and “are all lying in the same hospital ward,” as he puts it. “But it’s still better to invest in a weak currency than in one whose structure is jeopardized.”
Hedge Fund Gurus Give Euro Thumbs Down
Indeed, investors are increasingly speculating directly against the euro. The amount of open financial betting against the common currency — known as short positioning — has rapidly risen over the past 12 months. When ECB President Mario Draghi said three weeks ago that there was no point in wagering against the euro, anti-euro warriors grew a bit more anxious.
One of these warriors is John Paulson. The hedge fund manager once made billions by betting on a collapse of the American real estate market. Not surprisingly, the financial world sat up and took notice when Paulson, who is now widely despised in America as a crisis profiteer, announced in the spring that he would bet on a collapse of the euro.
Paulson is not the only one. Investor legend George Soros, who no longer personally manages his Quantum Funds, said in an interview in April that — if he were still active — he would bet against the euro if Europe’s politicians failed to adopt a new course. The investor war against the common currency is particularly delicate because it’s additionally fueled by major investors from the euro zone. German insurers and managers of large family fortunes have reportedly invested with Paulson and other hedge funds. “They’re sawing at the limb that they’re sitting on,” says an insider.
So far, the wager by the hedge funds has not paid off, and Paulson recently suffered major losses.
But the deciding match still has to be played.
Translated from the German by Paul Cohen
- DER SPIEGEL: Investors Prepare for Euro Collapse (investmentwatchblog.com)
- Spiegel: Investors Prepare For Euro Collapse | ZeroHedge (underinformation.wordpress.com)
- Spanish Banks’ ECB Loans Rise as Rajoy Mulls Second Bailout Call – Bloomberg (bloomberg.com)
- Stop Fooling Yourself… NO Entity On Earth Can Stop This (zerohedge.com)
- Things Are Going To Collapse Again In Europe ( Bank of America and AMP) (ampgoldportfolio.com)
- Merkel Returns to Crisis as Leaders Squabble Over Bond Purchases (bloomberg.com)
- Hedge Funds Capitulate on European Shorts Fastest Since 2009 (bloomberg.com)
- The Market Oracle – DK Matai – European Bankers And Top Politicians Fear Collapse Of The Euro – 12 August 2012 (lucas2012infos.wordpress.com)
May 11, 2012
“The target is marked by the burning LOH.”
When I was an reconnaissance helicopter pilot in the Army many years ago, that was a popular saying that was passed down by the more experienced pilots, some of whom had flown during the Vietnam War. It was meant to convey our own frailty, and the foolishness of being too eager about finding the enemy’s location.
LOH back then stood for Light Observation Helicopter, either a Hughes OH-6 Cayuse or a Bell OH-58. It was pronounced as “loach”. They were 4-seat commercial helicopters that were bought by the Army and adapted for use in scouting for enemy forces. A pilot had little more than his eyes and his wits as weapons, and the .040″ aluminum skin and Plexiglas windows were not much protection from enemy fire. The idea was to fly low, using the terrain for cover and concealment, and try to find the enemy so that fighter planes or attack helicopters could be called in to deliver ordinance on the enemy’s position.
But given the fact that enemy soldiers are usually not stupid, and don’t want to be spotted, often the first indication that a pilot had located the enemy’s position was that he was taking fire from the enemy. A lot of them got shot down. So then another helicopter crew would step in to radio the fast movers and guide them into the target. The fighter pilots would acknowledge that call, and the existence of enemy fire in the area, and then ask:
“Roger, how is the target marked?” The question was about the possible use of colored smoke, landmarks, or other features that can be seen while zooming in at 500 MPH.
And the answer would be, “The target is marked by the burning LOH.”
There is a corollary to this in the financial markets. Quite often at the end of a big price move, we learn about a big institution blowing up because they did not think that the trade would go so far against them. The 2006 case of Amaranth Advisors would be a classic example, with its bankruptcy in late 2006 marking the bottom for natural gas prices ahead of the big commodity bubble in 2008. There were several portfolios that blew up at the top of that bubble.
In this week’s chart, I have labeled several notable news events that served as markers of important turns for T-Bond prices. Back in 1994, Orange County, California went bankrupt because its treasurer, Robert Citron, had overextended his bets the wrong way in the bond market. That bankruptcy marked the bottom for the big price decline. Orange County was the burning LOH.
In late 1998, the money management firm Long Term Capital Management (LTCM) famously made huge bets on T-Bonds that were based on the limits of how far price moves had historically gone in the past. And the market taught them a lesson about how trends can persist longer than one can stay solvent. The Federal Reserve had to intervene, lining up several major banks to help take apart LTCM’s positions and keep it from cascading into a bigger problem. LTCM’s collapse was the burning LOH for that up move.
More recently, the collapses of Bear Stearns, Lehman Brothers, and MF Global each coincided with peaks in bond prices. Each was the burning LOH for its particular moment in history.
So now this week, we find out that J.P. Morgan Chase (NYSE:JPM) has suffered a $2 billion loss on financial derivative bets that went bad. And this news comes as T-Bond prices are once again getting back up to the price levels seen at last year’s MF Global collapse. The implication is that the news of JPM’s big loss is serving as the “burning LOH” of this current time frame, and the news arrives just as the stock market is about at the end of the corrective period suggested by both our eurodollar COT leading indication and the Presidential Cycle Pattern. Subscribers to our twice monthly newsletter and our Daily Edition have been watching the current stock market correction unfold pretty much right on schedule relative to those models, and now we have a portfolio blowup to help mark the beginning of the end of that corrective process.
Editor, The McClellan Market Report
- All Signs Are Go For The Last Great Ponzi Scheme (businessinsider.com)
- JPMorgan Chase (JPM): The Whale Turns Wily Coyote, or The Trader’s Epitaph (wallstreetpit.com)
- This Is Clearly Going To Cost JPMorgan Much More Than $2 Billion (businessinsider.com)
- JPM-Hit by the limits of statistics? (zerohedge.com)
- Fitch Downgrades JPM To A+, Watch Negative (zerohedge.com)
- JP Morgan – Aaaaarrrrgggghh (ritholtz.com)
End of the Euro?: The IMF warns that one country leaving the single currency could force its entire collapseBy Hugo Duncan PUBLISHED: 12:45 EST, 17 April 2012 UPDATED: 04:28 EST, 18 April 2012
In its World Economic Outlook report, the International Monetary Fund said the collapse of the crisis-torn single currency could not be ruled out.
It was the first time the Washington-based institution has accepted the prospect of the eurozone splitting up and follows fears over the health of the Spanish economy.
The IMF predicted a return to recession in the eurozone this year but upgraded its growth forecasts for Britain.
However, it warned that the world remains at risk of collapsing into a slump that would rival the Great Depression – with ‘acute risks in Europe’ the major threat.
‘Things have quietened down but there is a very uneasy calm,’ said IMF chief economist Olivier Blanchard. ‘I have a feeling that at any moment things could get very bad again.’
Speaking at the launch of the half-yearly report in Washington, Mr Blanchard said there was ‘no plan’ in place to deal with a country leaving the euro.
However Greece is widely expected to default on its crippling debts and quit the doomed single currency.
‘If such an event occurs, it is possible that other euro area economies would come under severe pressure as well, with a full-blown panic in financial markets,’ the IMF report said.
‘Under these circumstances, a break-up of the euro area could not be ruled out. This could cause major political shocks that could aggravate economic stress to levels well above those after the Lehman collapse.’
U.S. investment bank Lehman Brothers imploded in September 2008 – plunging the world economy into the worst recession since the 1930s. The IMF said that although ‘the outlook for the global economy is slowly improving again’ it is ‘still very fragile’.
It warned of the ‘possibility that several adverse shocks could interact to produce a major slump reminiscent of the 1930s’.
The IMF forecast growth of 0.8 per cent in Britain this year – more than the 0.6 per cent it predicted in January, but less than last September’s target of 1.6 per cent. Its 2013 forecast was unchanged at 2 per cent.
Asked about the IMF’s comments on the eurozone, a Downing Street spokesman said: ‘The eurozone still needs to get its house in order. Those issues still exist and no doubt will be a focus of discussions at the coming meeting of the IMF towards the end of the week, which the Chancellor will be attending.’
The IMF said Britain will outperform Germany and France this year – their economies are expected to grow by just 0.6 per cent and 0.5 per cent respectively.
The Italian and Spanish economies are forecast to decline by 1.9 per cent and 1.8 per cent, while a slump of 4.7 per cent is expected in Greece following a 6.9 per cent drop in 2011.
But the report warned that output in the eurozone could fall by 3.5 per cent over the next two years if the debt crisis escalates.
This would knock 2 per cent off the world economy, said the IMF, while a 50 per cent rise in the oil price would lower output by a further 1.25 per cent.
In the absence of such ‘shocks’ the global economy is expected to grow by 3.5 per cent this year, down from 3.9 per cent in 2011, with the U.S., Canada and Japan leading the way in the developed world.
‘Because of the problems in Europe, activity will continue to disappoint in the advanced economies as a group, expanding by only about 1.5 per cent in 2012 and by 2 per cent in 2013,’ said the report.
- Euro meltdown will be a bigger disaster than the credit crunch’ (express.co.uk)
- IMF: Euro Break-up Cannot Be Ruled Out (news.sky.com)
- IMF Exploits Euro-Crisis to Create Global Money Power (mb50.wordpress.com)