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Thursday, April 24, 2014

Senators Denounce Obama for Threatening 'Entire Constitutional System' By 'Nullifying' Immigration Laws
By Tony Lee

On Thursday, 22 Republican senators, including even Senate Minority Leader Mitch McConnell (R-KY), denounced President Barack Obama in a scathing letter for threatening America's "entire constitutional system" with his immigration "enforcement review" that threatens to "nullify" the nation's immigration laws.

"Your actions demonstrate an astonishing disregard for the Constitution, the rule of law, and the rights of American citizens and legal residents," the senators wrote in a letter to Obama. "Our entire constitutional system is threatened when the Executive Branch suspends the law at its whim and our nation’s sovereignty is imperiled when the commander-in-chief refuses to defend the integrity of its borders."

After intense pressure from pro-amnesty groups who fear that amnesty legislation will not pass this year, Obama's Homeland Security Secretary Jeh Johnson met with advocacy groups last month to reportedly consider administrative actions--such as granting more forms of amnesty, not deporting illegal immigrants who have not committed "major" crimes, and allowing bond hearings for illegal immigrants--to further erode the nation's laws. The senators said they had "grave concerns" with these potential actions because they "would represent a near complete abandonment of basic immigration enforcement and discard the rule of law and the notion that the United States has enforceable borders."

"These policies have operated as an effective repeal of duly enacted federal immigration laws and exceed the bounds of the Executive Branch’s prosecutorial discretion," the senators wrote. "It is not the province of the Executive to nullify the laws that the people of the United States, through their elected representatives, have chosen to enact.  Congress has not passed laws permitting people to illegally enter the country or to ignore their visa expiration dates, so long as they do not have a felony conviction or other severe offense on their record."

Illegal Immigration 

Obama's America!!!!!!!!!!!!!!!!!!!!!!!!!!!! 
Russia braces for crippling US sanctions as Ukraine turns deadly

US President Barack Obama has accused Russia of violating both the spirit and the letter of the Geneva deal to end the crisis in Ukraine
By Ambrose Evans-Pritchard

Deadly clashes in eastern Ukraine and warnings of broader US sanctions against Russia have sent tremors through Moscow’s financial markets and forced the country to cancel a sovereign debt auction yet again.

Russia’s RTS equities index fell to a one-month low, with Gazprom and Sberbank both down 3.5pc in volatile trading. Russia’s treasury pulled a 20bn rouble (£330m) bond auction intended to test the waters, saying there were no buyers at an acceptable cost. Yields on 10-year Russian bonds have jumped to 9.17pc.

Russian president Vladimir Putin admitted for the first time that US sanctions imposed after the annexation of Crimea are “causing damage” to Russia’s economy - already in or near recession - but insisted that the crisis had not yet become critical.

State-lender Sberbank said bond markets were almost completely shut for Russian banks, with companies and state bodies trying to roll over $712bn (£424bn) of foreign currency debt.

The authorities may have to raid the country’s reserve or national wealth funds to shore up the private sector, it said. Companies must refinance $54bn of foreign debt over the next six months.

UKRAINE.......................It's going to get MUCH Worse!!!!!!!!!!!!!!!!!!!!!!!!!!! 

PUTIN.......................He's OLD KGB!!!!!!!!!!!!!!!!!!!!!
Suspicion grows that China is exporting deflation worldwide by driving down yuan
By Ambrose Evans-Pritchard

The Chinese Yuan weakened yet again this morning, punching through the key line of 6.25 against the dollar. It is almost back to where it was two years ago. This is the biggest story in the global currency markets.

Yuan devaluation has reached 3.1pc this year. The longer this goes on, the harder it is to accept Beijing’s story that it is one-off measure to teach speculators a lesson and curb hot money inflows.

China's First-Quarter Current Account Surplus Shrinks
By Liyan Qi

BEIJING-China recorded a small current-account surplus of $7.2 billion in the first quarter of this year, compared with a $44.0 billion surplus in the fourth quarter of last year, the country's foreign exchange regulator said Friday.

The figures for the current account, the broadest measure of the nation's trade balance with the outside world, are preliminary and subject to revision.

Meanwhile, China posted a capital and financial account surplus of $118.3 billion in the first three months, indicating there were net inflows of investment funds, the State Administration of Foreign Exchange said in a statement on its website.

In the fourth quarter of 2013, China had a capital and financial account surplus of $127.0 billion.

China acquired $125.8 billion of foreign exchange reserves in the first quarter, the statement said. 

China Reserve Ratio’s Impact to Deepen With Rates in Flux
By Bloomberg News

China’s relaxation of interest-rate controls has left cutting banks’ required reserves as the chief monetary tool to counter a slowdown, focusing attention on an option used in the past decade only during financial crises. 

Recent depreciation risks significant losses under exotic currency derivatives
By Jonathan Cary

March 27 2014

RMB  depreciation

The renminbi (RMB) appreciation over the last several years appears to have halted for now, which  has taken much of the market by surprise. Indeed, the RMB’s recent accelerated depreciation towards 6.20 to the US$ has already  wiped out any appreciation from last year. Some market analysts are calling this a “danger zone” for the many Chinese businesses  and exporters that bought billions of US$ worth of exotic currency derivative products in an effort to “hedge” their position against an appreciating RMB.

China HARD Landing!!!!!!!!!!!!!!!!!!!!!!!! 
A Little Word Equation.................Huge Spike in Consumer Prices + Stagnate Wages = Recession and the Complete FAILURE of Abenomics!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Kyle Bass "IS" Going to be a VERY RICH Man when Japan LEADS The Global Economy toward the Mother of ALL ""***Recessions***""!!!!!!!!!!!!!!!!!!!!!!! 

Tokyo Inflation Quickens to Fastest Since 1992
By Masaaki Iwamoto and Chikako Mogi 

Tokyo’s consumer prices rose 2.7 percent in April from a year earlier, the biggest jump since 1992, pumped up by a sales-tax increase and a year of unprecedented stimulus from the Bank of Japan.

Inflation excluding fresh food accelerated from 1 percent in the previous month, while nationally the same price gauge rose 1.3 percent in March from a year earlier, statistics bureau data showed today. The Tokyo price gains compared to a 2.8 percent median forecast in a Bloomberg News.

Tokyo core CPI rises to 22-yr high after Japan's April tax hike
By Tetsushi Kajimoto and Leika Kihara

(Reuters) - Core consumer prices in Tokyo, a leading indicator of nationwide inflation, rose 2.7 percent in April from a year earlier to mark the biggest gain in more than two decades, offering the first glimpse on how Japan's sales tax hike is pushing up prices across the board.

Nationwide core consumer inflation also matched a five-year high of 1.3 percent in March from a year ago, government data showed on Friday, and is expected to track the Tokyo index's spike next month.

Stripping off the impact of the April 1 tax hike, Tokyo core consumer inflation -- available a month earlier than nationwide figures -- rose 1.0 percent year-on-year in April, indicating that Japan is still some way off the central bank's 2 percent price target.

"Considering that the sales tax hike boosted prices by 1.7 percentage points, the Tokyo core CPI is steady with the March data and this shows that companies are not fully reflecting the tax hike in prices," said Junko Nishioka, chief economist at RBS Securities in Tokyo.

Japan Mar Core CPI +1.3%; Excl Tax Impact, Apr Tokyo on Trend

--Japan Mar Core CPI +1.3% Y/Y; MNI Median Forecast +1.4%
--Central Tokyo April Core CPI +2.7% Y/Y; MNI Median Forecast +2.8%
--Japan FY13 Core CPI +0.8% Vs -0.2% in FY12, 1st Rise in 5 Yrs
--Japan Mar CPI Energy Costs +6.1% Y/Y Vs Feb +5.8%
--Japan Mar CPI TVs -4.6% Y/Y Vs Feb +5.8%
--Japan Mar CPI Electronics Goods +0.1% Y/Y Vs Feb +6.3%
--Japan Mar CPI Food Ex-Perishables +1.2% Y/Y; Feb +0.9%

TOKYO (MNI) - Japan's consumer price index from the Ministry of Internal Affairs and Communications released Friday. CPI figures date to 1970 under the 2010 base year: 

First comes the ""GROWTH Recession"" and then the Mother of ALL ""Global Recessions""!!!!!!!!!!!!!!!!!!!!!!!!!! 

And Then There Is Everything Else: Summary Of All The Ignored Conflicts And Crises Around The World


Since the centrally-planned market is so broken it no longer has the capacity to evaluate and respond to any geopolitical threats and shocks, here - lest anyone think that with the S&P a hair away from all time highs there is nothing to worry about - is a summary of all the simmering, and in some cases, searing and/or scorching geopolitical conflicts and other tensions around the world.

From Guy Haselmann of Scotiabank

A Litany Of Tensions

Geo-political tensions have ratcheted up a notch recently and are likely to stay elevated throughout the year. Although geo-political risks always exist, those tensions seem particularly elevated compared to the last several decades. They also now come at a time when financial risk assets are priced for economic perfection and when the world has never been more globalized with extensive interconnected supply chains. This note will provide a non-comprehensive list of some of those tensions without going into extensive detail on any of them. 

""GLOBAL WAR"" in this DECADE!!!!!!!!!!!!!!!!!!!!!!

RECESSION DEAD Ahead for China!!!!!!!!!!!!!!!!! No Way can China begin to Address their Environmental Problems of AIR, Water and Soil without Effecting the Costs of Production on Manufacturing. China "IS" Looking at a VERY Ugly 2015!!!!!!!!!!!!!!!!!!!  

China Takes On Pollution With Biggest Changes in 25 Years
By Bloomberg News

China’s legislature passed the biggest changes to its environmental protection laws in 25 years, punishing polluters more severely as the government works to limit smog and contaminated water and soil linked to three decades of economic growth.

Amendments to the law “sets environmental protection as the country’s basic policy,” the official Xinhua News Agency reported yesterday. The rules hadn’t been changed since first enacted in 1989 as China began consuming more energy as the most-populous country grew into a global manufacturing hub. 

China HARD Landing 

Here IS a Short Story on what the EPA Costs the U.S. Economy. You Folks reading from China might want to take some notes!!!!!!!!!!!!!!! 

The LONG Version

EPA Power Plant Regulations: A Backdoor Energy Tax
By Nicolas Loris, Kevin Dayaratna and David W. Kreutzer, Ph.D.


The Environmental Protection Agency’s (EPA’s) proposed greenhouse gas regulations for new power plants, and forthcoming regulations for existing plants, will inflict higher energy costs on American families and businesses. The regulations, which will provide no meaningful environmental benefit, have a weak scientific underpinning and face much legal scrutiny. Three Heritage Foundation energy policy experts explain why Congress should remove the EPA’s and any other agency’s authority to regulate carbon dioxide and other greenhouse gas emissions.

The Environmental Protection Agency’s regulations of greenhouse gas emissions are not the only regulations threatening coal. The EPA, along with the Office of Surface Mining Reclamation and Enforcement (OSMRE) in the Department of the Interior, and the Mine Safety and Health Administration (MSHA) in the Department of Labor, have all introduced or finalized new rules that will adversely impact the coal industry and drive up costs for consumers and which are devoid of substantial environmental benefit.[16] Cumulatively, these regulations will substantially reduce the use of coal in America. Heritage Foundation analysts modeled the effects of what killing coal would do to our economy. Using the Heritage Foundation Energy Model, a derivative of the National Energy Model System (NEMS),[17] and analyzing a phase-out of coal between 2015 and 2038, by the end of 2023:

Employment falls by nearly 600,000 jobs.

Manufacturing loses over 270,000 jobs.

Coal-mining jobs drop 30 percent.

A family of four’s annual income drops more than $1,200 per year, and its total income drops by nearly $24,400 over the entire period of analysis.

Aggregate gross domestic product (GDP) decreases by $2.23 trillion over the entire period of the analysis.

Obama ""WAR on Coal""
A Civil WAR in Ukraine "IS" going to have a HUGE Impact on the Economy of the EU because it's a Virtual Guarantee that the Flow of Natural Gas to Europe through Ukraine WILL Be Disrupted. There "IS" a Whole LOT of Ugly heading toward the Global FX Market and when the Dust Clears...................Chinese Exports Will be a Casualty!!!!!!!!!!!!!!!!

China Reserve Ratio’s Impact to Deepen With Rates in Flux
By Bloomberg News

China’s relaxation of interest-rate controls has left cutting banks’ required reserves as the chief monetary tool to counter a slowdown, focusing attention on an option used in the past decade only during financial crises.

Premier Li Keqiang’s insistence that China won’t implement more-powerful stimulus than faster spending on railways and reserve-ratio cuts for rural banks has failed to sway almost half of surveyed economists, who predict the central bank will lower the ratio nationwide this year. The tool unleashes about $80 billion of liquidity into the banking system for every half percentage-point reduction.

Recent depreciation risks significant losses under exotic currency derivatives
By Jonathan Cary

March 27 2014

RMB  depreciation

The renminbi (RMB) appreciation over the last several years appears to have halted for now, which  has taken much of the market by surprise. Indeed, the RMB’s recent accelerated depreciation towards 6.20 to the US$ has already  wiped out any appreciation from last year. Some market analysts are calling this a “danger zone” for the many Chinese businesses  and exporters that bought billions of US$ worth of exotic currency derivative products in an effort to “hedge” their position against an appreciating RMB. 

China SHADOW Banking!!!!!!!!!!!!!!!!!!!!!!!!!
How to Lose in Ukraine
By Mohamed A. El-Erian

Having failed on several occasions to calm tensions in Ukraine, Russia and the West are being pushed by a deteriorating situation into a rapidly narrowing set of options. In coming days, the outlook will seem particularly complex, and the outcome could be bad for all involved.

Viewed from Western capitals, no combination of carrot or stick seems capable -- at least so far -- of deterring Russia and President Vladimir Putin from interfering in Ukraine. The annexation of Crimea has been followed by spreading instability in eastern Ukraine that the West insists is driven, at least in part, by Russia.

Viewed from the other side, there are few justifications for the West’s interference with what Russia sees as its legitimate national and regional interests. The last thing Moscow wants is a Kiev government overwhelmingly aligned with the West. It views the West as not particularly credible when it comes to translating its threatening rhetoric into action.

To YOU Folks in Ukraine, YOUR going to be SCREWED from 2 Fronts...............These WAR Games are nothing more than a DRILL to INVADE Your Country.......................Putin and the Russian Military Will Invade and Obama and the West are going to GIVE Plenty of LIP SERVICE but will do NOTHING to Stop the Invasion!!!!!!!!!!!!!!!!!!!!!!!!!

My Advice, The Ukrainian Government Should ARM Ever Citizen and prepare for Unconventional Warfare like what the Russian Military Faced in Afghanistan when they Invaded in 1979!!!!!!!!!!!!!!!!!!!!!!!!! If You put up a FIGHT and Make PUTIN Really Suffer, The WEST will be more than Happy to Supply you the ARMS needed to Fight, but you have to PROVE that You CAN Fight!!!!!!!!!!!!!!!

Russia holds war games near Ukraine; Merkel warns of catastrophe
By Stephen Brown and Timothy Heritage

(Reuters) - Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down on plans to annex its neighbor's Crimea region despite a stronger than expected drive for sanctions from the EU and United States. 

UKRAINE........................It's going to get MUCH Worse!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Might Be Time to Short the Euro
By A. Gary Shilling

(This is the third article in a three-part series.)

In parts 1 and 2 of this series, I explored looming deflation in Europe and why central banks fret over it. The European Central Bank is gearing up to depress the euro, which it blames for much of the deflation threat in the euro area, or at least the portion it can influence.

The ECB reduced its overnight reference interest rate from 0.5 percent to 0.25 percent in November. If it cut the rate again, the ECB would join the Federal Reserve and the Bank of Japan with rates of essentially zero. With all the central-bank-created liquidity sloshing around the world, these rates are largely symbolic. Yet another ECB reduction could make foreign investment in the euro area less attractive, to the detriment of the euro.

Currently, ECB member banks are paid nothing on their deposits. A negative rate -- charging banks to leave their money at the central bank -- would encourage them to lend and invest elsewhere. That would push down returns in the euro area and discourage foreign investors, also to the detriment of the euro.

The Economic Monster Called Deflation
By A. Gary Shilling

(This is the second in a three-part series.)

In part one of this series, I wrote about the deflation specter that is haunting Europe. Central bankers are so fearful of deflation that they want an inflationary cushion to prevent an economic shock or geopolitical crisis from sending low inflation into negative territory. The Federal Reserve, European Central Bank, Bank of England and Bank of Japan have inflation targets of 2 percent.

Why is deflation so troubling to central bankers?

Deflation Is About to Wallop Europe
By A. Gary Shilling

(***This is the first in a three-part series.)

The euro has been defying gravity for years. Europe's Teutonic North and Club Med South were joined under one monetary policy. But the 18-member euro area has no common fiscal policy and probably never will, given its vast cultural and economic differences. This hardly makes the euro a safe-haven currency.

After dropping from 1.60 per U.S. dollar to 1.20 during the global recession, the euro has risen to 1.38. And that’s despite Europe's follow-on recession, which began in the fourth quarter of 2011 and lasted six quarters. Real gross domestic product growth since then has averaged only 0.9 percent annually, well below the 2.3 percent in the U.S. Does the euro really deserve to be strong against the greenback? 

Currency Crisis 

EUROPE Deflation........................Your Worse Nightmare!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

PaPa Bear Gary Shilling 
China Army Targets Students for Officers to Match Weapons
By Bloomberg News

China’s military has used annual budget increases in excess of 10 percent to buy precision-guided weapons, fighter jets and an aircraft carrier. Now it’s seeking to upgrade its recruits to operate them.

For Wu, a 20-year-old journalism student at a university in Beijing, that means his college fees are paid and he has an extra 3,500 yuan ($561) a year to live on. Wu, who asked to be identified only by his surname because he’s forbidden from speaking publicly, takes extra lessons on war strategy alongside regular classes. He’ll join the People’s Liberation Army as a trainee officer when he graduates in 2016.

China Rises as America Weakens
By Bill Gertz

    We are entering an era where American dominance on the seas, in the skies, and in space can no longer be taken for granted.

—Defense Secretary Chuck Hagel

For the past five and a half years, the United States military has suffered the devastating effects of hundreds of billions of dollars in budget cuts. At the same time, China’s armed forces—both conventional and nuclear—have made dramatic gains. The People’s Liberation Army was derided a decade ago by some China-watchers as a “junkyard army” incapable of coming close to matching the military prowess of the U.S. Army. Today, the PLA boasts new strategic capabilities that validate Hagel’s words about the new era of declining American military dominance.

The new Chinese military is armed with highly sophisticated weaponry. They include cyber-warfare forces capable of crippling American electrical and financial infrastructures from computer keyboards in Shanghai as well as precision-guided anti-satellite missiles that can quickly enfeeble the U.S. military’s unparalleled ability to combine long-distance war-fighting with precision attack.

The new power balance—a weakening American military facing a rising Chinese power—has dire implications for global peace and stability. Furthermore, the sharp decline in funds for U.S. military operations and modernization, coupled with China’s rapid buildup of forces, has rendered President Obama’s premier foreign-policy initiative, to strategically shift toward the Asia Pacific and away from conflicts in the Middle East and Southwest Asia, all but impossible to achieve.

U.S. Military Voices Worries Over South Korean Use of Chinese Telecom Gear

Huawei-LG deal threatens security of data, communications
BY: Bill Gertz

The U.S. military command in South Korea voiced concerns this week that a Chinese telecommunications deal with South Korea could undermine the security of communications on the tense Korean peninsula.

Chris Bush, a spokesman for the U.S. Forces Korea said the command is concerned that a deal between China’s Huawei Technologies, Inc. and the South Korean company LG could undermine operational security.

“Telecommunications equipment is inherently vulnerable to a multitude of threats, from interception and monitoring to malicious software and applications, regardless of service provider,” Bush told the Washington Free Beacon when asked about security concerns related to the Huawei-LG deal.

The U.S. military and all service members “take care to protect personal information as well as essential secrecy,” he said in a statement.

A former senior Obama administration official said he is very concerned that the use of Huawei equipment in a nationwide telecommunications system on the peninsula ultimately will be used for espionage during both peacetime and sabotage in a conflict. 

Obama Military Threats 

China Military 

Bill Gertz 
NOW Comes the ""GREAT WAR"" in the Middle East that WILL Not be Contained to the Region!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Obama "IS" ONE of the Greatest Threats to Israel's National Security and HE Proves My Point Weekly!!!!!!!!!!!!!!!!!!!!!!!!!!!

Hamas to Israeli Soldiers: ‘Our Harvest is Your Heads’
BY: Washington Free Beacon Staff
April 24, 2014 1:28 pm

The terror group Hamas has been running propaganda videos on its television station depicting the murder of Israeli soldiers and warning, “Our harvest is your heads.”

Hamas’s Al-Aqsa TV has been broadcasting the video, according to the media-monitoring group Palestinian Media Watch.

As actors portraying Israeli soldiers enter into the Gaza Strip, the video states, “You will end up in hell.”

The Israeli soldiers are then shot one-by-one in the head followed by a Hamas militant stealing the dead soldiers’ dog tags.

The video then states: “Our harvest is your heads.”

Hamas recently entered into a unity government with the rival Palestinian faction Fatah. The agreement effectively killed the peace process with Israel, but led groups such as J Street to demand that Israel begin negotiations with the terror group committed to its destruction. 

Kerry sees way forward on Mideast peace: 'We will never give up hope' for that possibility

US unwilling to give up Mideast peace process yet

WASHINGTON (AP) — The suspension of peace talks between Israel and Palestinians on Thursday delivered the harshest blow yet to Secretary of State John Kerry's ambitious, if perhaps quixotic, hope of ending the decades-long impasse at the cost of focusing on other crises around the world. But Kerry refused to accept defeat, saying "we will never give up our hope or our commitment for the possibilities" of Mideast peace. 

Hamas TV celebrates killing: “Our harvest is your heads”

Netanyahu On Failed Peace Talks With Palestinians (COMPLETE INTERVIEW)
Israel Prime Minister, Benjamin Netanyahu explains to Special Report's Bret Baier why peace talks with the Palestinians are dead for now, and worries openly about US talks with Iran. 

Israel Halts Mideast Peace Talks Over Hamas Deal
By Jonathan Ferziger and Calev Ben-David 

Israel said it will suspend Middle East peace talks because of the Palestinian Authority’s reconciliation agreement with Hamas.

The unanimous decision by Prime Minister Benjamin Netanyahu’s inner security cabinet yesterday may be the final blow to U.S. Secretary of State John Kerry’s campaign to resolve the Israeli-Palestinian conflict. It comes days before the April 29 deadline Kerry set in July for the talks to conclude.

Palestinian Authority President Mahmoud Abbas “signed an agreement with a murderous terrorist group that calls for Israel’s destruction,” Netanyahu said in a text message. “Whoever chooses Hamas’s terror doesn’t want peace.”

Israel suspends peace talks after Palestinian factions announce unity government

Israeli Prime Minister Benjamin Netanyahu: Palestinian Authority President Mahmoud Abbas "needs to choose between peace with Israel and an accord with Hamas."
By JC Finley

TEL AVIV, Israel, April 24 (UPI) -- Israel reacted strongly to news that two leading Palestinian factions were forming a unity government, suspending peace talks.

Israeli Foreign Minister Avigdor Liberman said Wednesday "It is impossible to make peace both with Israel and Hamas." 

Israel Iran...............................It's Going to HAPPEN!!!!!!!!!!!!!!!!!!!!!!!!!! 
Biggest Credit Bubble in History Runs Out Of Time
By Wolf Richter
Thursday, April 24, 2014 at 7:02AM

It has been a feeding frenzy for junk debt. Yield-desperate investors, driven to near insanity by the Fed’s strenuous interest-rate repression, are holding their noses and closing their eyes, and they’re bending down deep into the barrel and scrape up even the crappiest and riskiest paper just to get that little extra yield.

Last year, highly leveraged companies issued $1.1 trillion in junk-rated loans. It’s a white-hot market. Leveraged-loan mutual funds – dolled up in conservative-sounding names and nice charts to seduce retail investors – gorge on these loans. They saw 95 weeks in a row of inflows, week after week, without fail, adding over $70 billion to their heft, as Bloomberg reported, and only the sky seemed to be the limit. But suddenly, that endless flow of money reversed.

“It’s going to be a disaster on the way out,” Mirko Mikelic, who helps manage $7 billion in assets at ClearArc Capital, told Bloomberg. “On the way in, there’s insatiable demand....”

Private equity firms have been ruthlessly taking advantage of that “insatiable demand.” And they have a special self-serving trick up their sleeve: Their junk-rated overleveraged portfolio companies issue new loans, but instead of using the funds for expansion projects or other productive uses, they hand them out through the back door as special dividends. It’s one of the simplest ways PE firms use to strip cash out of their portfolio companies. It loads even more debt on the already highly leveraged portfolio company without adding productive capacity. And those who end up holding this debt – for example, the mutual fund in your portfolio – have a good chance of losing it all.

Junk Loans Record Inflows Halting; How Concerned Should You Be?
By Lisa Abramowicz

What happens when unprecedented flows into the $1.1 trillion junk-loan market stop? Investors may be about to find out.

Investors yanked $276 million from loan mutual funds in the week ended April 16, breaking a 95-week streak of deposits, Wells Fargo & Co. data show. Leveraged loans - those rated below investment grade - are poised for their first monthly loss since August, and the biggest exchange-traded fund investing in the debt yesterday reported its first withdrawal since June, according to data compiled by Bloomberg.

Momentum is starting to shift away from high-yield loans, long heralded as a way to ward off losses from rising interest rates. Investors are reconsidering how much protection the market will actually provide as the Federal Reserve unwinds record stimulus measures that have suppressed borrowing costs.


The Coming CORRECTION Will be BRUTAL!!!!!!!!!!!!!!!!!!!!!!!!!
Spring 2014: To Whom Does the U.S. Government Owe Money?
By Political Calculations

On Tax Day 2014, the U.S. federal government owed its lenders over $17.577 Trillion. Our chart below reveals who Uncle Sam's biggest creditors are:

The REAL Story on U.S. Household Income can only be told when ""Government TRANSFER Payments"" are included and if YOU Took that out...................Holy CRAP, The MIDDLE Class would looking like ROAD Kill!!!!!!!!!!!!!!!!!!! 

Real Median Household Income Declines 0.73% in March
April 24th, 2014
By Doug Short

Summary: The Sentier Research monthly median household income data series is now available for March. The nominal median household income was up $285 month-over-month and up only $1,494 year-over-year. Adjusted for inflation, it declined 0.73% MoM but is up 1.3% YoY.

The previous monthly gain was the second largest of the 171 data points in this series since the turn of the century. The latest number erased much of that gain. In real dollar terms, the median annual income is 7.5% lower (about $4,309) than its interim high in January 2008.

The traditional source of household income data is the Census Bureau, which publishes annual household income data in mid-September for the previous year.

Sentier Research, an organization that focuses on income and demographics, offers a more up-to-date glimpse of household incomes by accessing the Census Bureau data and publishing monthly updates. Sentier Research has now released its most recent update, data through January (available here). The data in their report differs from the Census Bureau's data in three key respects:

    It is a monthly rather than annual series, which gives a more granular view of trends.
    Their numbers are more current. The Census Bureau's 2012 data will remain its latest until September 2014.

The American MIDDLE Class 

Obama's America!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
To YOU Folks in Ukraine, YOUR going to be SCREWED from 2 Fronts...............These WAR Games are nothing more than a DRILL to INVADE Your Country.......................Putin and the Russian Military Will Invade and Obama and the West are going to GIVE Plenty of LIP SERVICE but will do NOTHING to Stop the Invasion!!!!!!!!!!!!!!!!!!!!!!!!! 

My Advice, The Ukrainian Government Should ARM Ever Citizen and prepare for Unconventional Warfare like what the Russian Military Faced in Afghanistan when they Invaded in 1979!!!!!!!!!!!!!!!!!!!!!!!!! If You put up a FIGHT and Make PUTIN Really Suffer, The WEST will be more than Happy to Supply you the ARMS needed to Fight, but you have to PROVE that You CAN Fight!!!!!!!!!!!!!!!

Russia holds war games near Ukraine; Merkel warns of catastrophe
By Stephen Brown and Timothy Heritage

(Reuters) - Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down on plans to annex its neighbor's Crimea region despite a stronger than expected drive for sanctions from the EU and United States.

In an unusually robust and emotional speech, German Chancellor Angela Merkel warned of "catastrophe" unless Russia changes course, while in Ukraine a man died in fighting between rival protesters in a mainly Russian-speaking city.

In Berlin, Merkel removed any suspicion that she might try to avoid a confrontation with Russian President Vladimir Putin,

"We would not only see it, also as neighbors of Russia, as a threat. And it would not only change the European Union's relationship with Russia," she told parliament. "No, this would also cause massive damage to Russia, economically and politically." 

Putin Warns of Consequences as Ukraine Steps Up Offensive
By Daryna Krasnolutska and Ilya Arkhipov

President Vladimir Putin warned Ukraine against continuing its anti-separatist offensive after government troops killed five rebels and prompted Russia’s military to begin new drills on the two nations’ border.

“If it’s true that the current regime in Kiev sent the army against citizens inside its country, then it is a very serious crime against its own nation,” Putin said today in St. Petersburg. “It will have consequences for the people who make such decisions, including relations between our countries. We’ll see how the situation develops and we’ll make conclusions based on the reality on the ground.”

Ukrainian Interior Ministry and army troops destroyed three road blocks as they fought pro-Russian separatists in the Donetsk region city of Slovyansk, the ministry said today on its website. Russia’s latest drills are a response to events in eastern Ukraine and involve warplanes near the border, Defense Minister Sergei Shoigu said, according to Interfax. 

Gingrich: WWI parallels...1914 

The twin dangers of the Ukraine crisis
By Newt Gingrich

Ukrainian troops take position near burning tires at a pro-Russian checkpoint in Slaviansk following an attack by Ukrainian soldiers on Thursday, April 24. Ukraine has seen a sharp rise in tensions since a new pro-European government took charge of the country in February.

(CNN) -- This year is the centennial of the First World War. One-hundred years ago this month, in April 1914, no one thought there would be a war. But war began, triggered by events in Eastern Europe, by the end of July. It came as an enormous shock, in retrospect almost like the Titanic hitting an iceberg.

In the end, it shattered Europe, cost tens of millions of lives, bankrupted countries and changed forever those who survived the horrors.

A century later, our focus is again on Eastern Europe, the site of a regional conflict that threatens to entangle the world's leading powers.

Ukraine foreign minister: Ready to fight Russia
Associated Press

PRAGUE (AP) -- Ukraine's foreign minister has blasted the Russian decision to start military maneuvers along their border and said Thursday his country will fight any invading troops.

Andriy Deshchytisa told The Associated Press in Prague that Russia's decision to launch the military exercises "very much escalates the situation in the region." 

Hagel says Russian military exercises up tensions

MEXICO CITY (AP) — Defense Secretary Chuck Hagel says Russian military exercises on its border with Ukraine increase tensions and run counter to a diplomatic agreement it signed just last week.

Hagel spoke with reporters in Mexico City after he was informed of the Russian military exercises that President Vladimir Putin said were designed to punish Ukraine for moves against pro-Russian insurgents.

Hagel called the military exercises "dangerously destabilizing" and "very provocative." Hagel said if such activities escalate they will make it more difficult to find a diplomatic solution to the situation in Ukraine.

Ukraine forces kill up to five rebels, Putin warns of consequences


SLAVIANSK Ukraine/ST PETERSBURG Russia (Reuters) - Ukrainian forces killed up to five pro-Moscow separatists in the east of the country, the Interior Ministry said on Thursday, as Russian President Vladimir Putin warned of "consequences" if Kiev used the army against its own people.

Interior Ministry forces backed by the army removed three checkpoints manned by armed groups in the separatist-controlled town of Slaviansk, the ministry said in a statement.

"During the armed clash up to five terrorists were eliminated," it said, adding that one person had been wounded on the side of government forces.

Under an international accord signed in Geneva last week, illegal armed groups, including the rebels occupying about a dozen public buildings in the largely Russian-speaking east, are supposed to disarm and go home. 

UKRAINE.....................It's going to get MUCH Worse!!!!!!!!!!!!!!!!!!!!!!!!!!

Maybe more like 1939!!!!!!!!!!!!!!!!!!!!!!!
Recent depreciation risks significant losses under exotic currency derivatives
By Jonathan Cary

March 27 2014

RMB  depreciation

The renminbi (RMB) appreciation over the last several years appears to have halted for now, which  has taken much of the market by surprise. Indeed, the RMB’s recent accelerated depreciation towards 6.20 to the US$ has already  wiped out any appreciation from last year. Some market analysts are calling this a “danger zone” for the many Chinese businesses  and exporters that bought billions of US$ worth of exotic currency derivative products in an effort to “hedge” their position against an appreciating RMB.

As the RMB depreciates (in the short term at least), many businesses and investors are facing  considerable losses. Once again, attention is being directed to the financial institutions that  sold these currency derivatives.


Until recently, China’s export led growth had resulted in pressure from its main trading partners  (for example, the EU and US) to “strengthen” the RMB in order to curtail a perceived advantage for  Chinese exporters; namely, the relatively “cheap” RMB. However, the gradual appreciation of the RMB (as with the Yen a few years back) resulted  in many businesses in China borrowing large amounts in US$ (at, in effect, negative interest rates, accounting for inflation) in order to  repatriate funds back to their domestic markets, thereby hoping for: (i) better investment returns  and (ii) further gain with an appreciation of the RMB. This phenomenon has become known as the  so-called “carry trade”. It has been seen in Japan and other economies in the Far East.

“Currency  hedging”

Currency hedging is important to businesses in the export market because their income is partly  dependent on an exchange rate and not only on sales in their own currency. As their own currency  appreciates, there is a need to protect the value of their income and mitigate the commercial  impact of their exports becoming more expensive.

As a result, many Chinese businesses have purchased complex currency derivative products. These  products have rather grand or exotic sounding names, such as: “Target Redemption Forwards” (TRFs),  “Knock-in, Knock-outs” (KIKOs) or “Target Redemption Notes” (TARNS).

Morgan Stanley Warns Of "Real Pain" If Chinese Currency Keeps Devaluing

The seemingly incessant strengthening trend of the Chinese Yuan (much as with the seemingly inexorable rise of US equities or home prices) has encouraged huge amounts of structured products to be created over the past few years enabling traders to position for more of the same in increasingly levered ways. That was all going great until the last few weeks which has seen China enter the currency wars (as we explained here). The problem, among many facing China, is that these structured products will face major losses and as Morgan Stanley warns "real pain will come if CNY stays above these levels," leading to further capital withdrawal, illiquidity, and a potential vicious circle as it appears the PBOC is trying to break the virtuous carry trade that has fueled so much of its bubble economy. 

The "Real Pain" Is About To Begin As Chinese Currency Slumps To 19-Month Lows

The PBOC's willingness to a) enter the global currency war (beggar thy neighbor), and b) 'allow' the Yuan to weaken and thus crush carry traders and leveraged 'hedgers' is about to get serious. The total size of the carry trades and hedges is hard to estimate but Deutsche believes it is around $500bn and as Morgan Stanley notes the ongoing weakness means things can get ugly fast as USDCNY crosses the crucial 6.25 level where losses from hedge products begin to surge. This is a critical level as it pre-dates Fed QE3 and BoJ QQE levels and these are pure levered derivative MtM losses - not a "well they will just rotate to US equities" loss - which means major tightening on credit conditions...


Morgan Stanley believes that one such carry-trade structured product that will be the "pressure point" for this - should the Yuan continue to depreciate - is the Target Redemption Forward (TRF) which has a payoff that looks as follows...............

Deutsche Bank concludes...
Looking forward it’s possible that the PBOC is not attempting to actively engineer a sustained depreciation of the Renminbi but rather is attempting to increase the level of two-way volatility in the market to discourage the carry trade and also excessive capital inflows. In terms of the broad risk going forward the sheer scale of the challenge the PBOC has set out to tackle likely means they will have to move with restraint. This is certainly a story to watch...

As Morgan Stanley warns however, this has much broader implications for China... 

Yuan $150 Billion Bet Inflates Dollar Swap: China Credit
By Kyoungwha Kim

The weakening of China’s currency had already caused investors to hedge yuan structured products estimated by Morgan Stanley at $150 billion before today’s widening of the trading band threatened even greater volatility.

The extra interest payments to lenders of yuan in one-year cross-currency swaps slumped more than 1.5 percentage points in the past eight months to a two-year low of 1.02 percent on Feb. 24, reflecting rising demand for dollars. The yuan in Hong Kong weakened 2 percent in the past month, Asia’s worst decline, to 6.1560 per dollar. Holders of products called Target Redemption Forwards will suffer significant losses should it fall into the “danger zone” between 6.15 and 6.20, Morgan Stanley estimates.

Yuan's fall raises risk of big losses on offshore products

* Estimated $350 bln of structured products sold in past 14 months

* 6.20 yuan per dollar seen as inflection point below which losses multiply

* Regulators looking into impact of yuan fall on FX trades - sources

* Yuan set for biggest weekly loss on record

By Saikat Chatterjee

HONG KONG, Feb 28 (Reuters) - China's weakening of the yuan over the past 10 days has exposed risks created by the rapid growth of offshore derivative products, with holders seen potentially facing billions of dollars of losses if the currency keeps falling.

Bankers say the buyers of these leveraged bets -- and Deutsche Bank estimates $100 billion have been sold this year alone -- have largely been Chinese companies with large dollar receivables, who saw the products as a way to earn some extra income given the seemingly inexorable rise of the yuan. 


China HARD Landing 

China SHADOW Banking!!!!!!!!!!!!!!!!!!!!!!!

Exactly Like 7 Years Ago? 2014 Is Turning Out To Be Eerily Similar To 2007
By Michael Snyder

The similarities between 2007 and 2014 continue to pile up.  As you are about to see, U.S. home sales fell dramatically throughout 2007 even as the mainstream media, our politicians and Federal Reserve Chairman Ben Bernanke promised us that everything was going to be just fine and that we definitely were not going to experience a recession.  Of course we remember precisely what followed.  It was the worst economic crisis since the days of the Great Depression.  And you know what they say - if we do not learn from history we are doomed to repeat it.  Just like seven years ago, the stock market has soared to all-time high after all-time high.  Just like seven years ago, the authorities are telling us that there is nothing to worry about.  Unfortunately, just like seven years ago, a housing bubble is imploding and another great economic crisis is rapidly approaching.

Posted below is a chart of existing home sales in the United States during 2007.  As you can see, existing home sales declined precipitously throughout the year...

HELL I have OVER 2 YEARS of Proof that Shows the U.S. Housing Recovery(JOKE) WAS/"IS" All BULLSHIT!!!!!!!!!!!!!!!!!!!! 

Economists Stunned By Housing Fade, But I Told You So
By Lance Roberts

Since 2012, almost every economist has predicted that the housing recovery would continue into each coming year and would be a key driver of economic growth. That was again the plan for 2014, but with the housing recovery now on the ropes those same economists are perplexed as to why. Yet, "hope" remains that the recent slowdown is just a "weather related" casualty.

For me, I now get to say "I told you so." The slowdown in housing is not due to the "weather." It began prior to the onset of the recent winter blasts. Nor will reduced distressed sales, delinquencies, negative equity or rising inventories salvage the predictions. These are all indicators "OF" the housing market, but not what "DRIVES" the housing market. The real answer to the slowdown in housing is not so difficult to comprehend and is something I have argued heavily in past missives as listed below: 

100% of economists think yields will rise within six months

Economists are unwavering in their assessment of where yields are headed in the next half year.

Jim Bianco, of Bianco Research, points out in a market comment Tuesday that a survey of 67 economists this month shows every single one of them expects the 10-year Treasury  10_YEAR -0.41% yield to rise in the next six months.

The survey, which is done each month by Bloomberg, has been notably bearish for some time now, with nearly everyone expecting rising rates. In March, 97% expected rising rates. In February, 95% expected yields to climb. And in January, 97% held that expectation. Since the beginning of 2009, there have only been a handful of instances where less than 50% expected rates to rise.

Interest Rate Predictions Meet Bob Farrell's Rule #9
By Lance Roberts

This is very striking from the standpoint that a separate poll of economists showed that there were none, zero, nada expecting an economic contraction either.

With literally 100% of all surveyed economists bullish on the economy it suggests that there is nothing but clear sailing ahead for investors. Of course, it is also important to remember that it was this same group of "economists" that have been predicting the return of economic growth and higher interest rates for the last three years, as well. As we enter into the sixth year of the current economic expansion the unanimous "bullish bias" is indeed fascinating.

As I read the article, I was nearly deafened by the voice in my head screaming Bob Farrell's Rule #9 which simply states: 

The Coming CORRECTION Will be BRUTAL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Disgusted Kerry And Lavrov Can't Even Hold A Phone Conversation Any More

With the "truce deal" laying torn asunder by un-de-escalation by each and every side in this dangerous game of chicken, it now seems even diplomacy is off the table. The Russian foreign ministry reports that the planned on April 23 and 24 telephone conversations between, Minister of Foreign Affairs of the Russian Federation Sergey Lavrov and U.S. Secretary of State John Kerry , unfortunately did not take place for reasons beyond Moscow's control, adding that


Заявление МИД России в связи с проводимой Киевом силовой операцией на Юго-Востоке Украины


Непредсказуемость развития ситуации в юго-восточных регионах Украины, где против населения брошены регулярные воинские части, спецподразделения и ультранационалистические военизированные формирования, требует срочных действий по принуждению опекаемых США киевских властей к сдержанности и неприменению силы.

Планировавшиеся на 23 и 24 апреля телефонные контакты Министра иностранных дел Российской Федерации С.В.Лаврова и Государственного секретаря США Дж.Керри, к сожалению, не состоялись по независящим от Москвы причинам. В преддверии назначенного на 25 апреля разговора глав внешнеполитических ведомств двух стран российская сторона вновь настоятельно призывает Вашингтон использовать все свое влияние на временное правительство в Киеве, чтобы образумить его и убедить воздержаться от опрометчивых шагов, ввергающих Украину все глубже в пучину кризиса.

Мы рассчитываем, что США, наконец, предпримут срочные меры в интересах деэскалации обстановки в соответствии с положениями Женевского заявления от 17 апреля. Вашингтон должен заставить нынешнее украинское руководство немедленно прекратить военную операцию на Юго-Востоке, обеспечить отвод подразделений вооруженных сил Украины и ее силовых структур в места постоянной дислокации. Пока не сделано ничего для решения этой неотложной задачи. Надеемся, что в Вашингтоне понимают всю меру своей ответственности за происходящее. 

Statement of the MFA of Russia in connection with the ongoing operation of the power of Kiev in the South- East of Ukraine


The unpredictability of the situation in the south- eastern regions of Ukraine , where people are thrown against regular military units, special forces and paramilitary forces , ultranationalist , requires urgent action forced wards U.S. Kiev authorities to show restraint and not to use force .

The planned on April 23 and 24 telephone contacts , Minister of Foreign Affairs of the Russian Federation Sergey Lavrov and U.S. Secretary of State John Kerry , unfortunately, did not take place for reasons beyond Moscow reasons. In the run scheduled for April 25 conversation of foreign ministers of the two countries , the Russian side once again urges Washington to use all his influence on the interim government in Kiev to reason with him and convince refrain from hasty steps , Ukraine plunged deeper into crisis .

We hope that the U.S. finally take urgent measures for de-escalation of the situation in accordance with the provisions of the Geneva Declaration on April 17. Washington should make the current Ukrainian leadership to immediately stop military operation in the South East , to ensure allocation of units of the armed forces of Ukraine and its security forces to their permanent deployment . While nothing has been done to address this urgent task . We hope that Washington understands the full measure of their responsibility for what happens.

Well it's looking like the Ukrainian ""Civil WAR"" WILL be Starting this Weekend!!!!!!!!!!!!!!!!!!!!!!! 

To YOU Folks in Ukraine................If the Shooting does Starts, it ain't going to be JUST Eastern Ukraine in Play HERE, PUTIN Will move on the Entire Country!!!!!!!!!!!!!!!!!!!!! Every Citizen of Ukraine better be READY to Fight or LEARN to Speak RUSSIAN!!!!!!!!!!!!!!!!!!!!!!

""The order to use force against civilians has already been given, and if this military machine is not stopped, the amount of casualties will only grow,” Russian Defense Minister Sergey Shoigu said during an official meeting in Moscow.""

Ukraine gives Russia 48 hours to explain exercises

KIEV (Reuters) - Ukraine has asked Moscow, under European OSCE security arrangements, to explain and give details of its military exercises near the border within 48 hours, the Foreign Ministry said on Thursday.

In a statement in response to remarks by the Russian defense minister earlier in the day announcing exercises linked to tension in Ukraine, the ministry said Russia was trying to influence Kiev's efforts to fight militants in the east.

It said that under the Vienna Document of the Organization for Security and Cooperation in Europe (OSCE) it was entitled to an account of the goals and other details of the exercises within 48 hours of its request - namely noon GMT on Saturday. 

UKRAINE...............It's going to get MUCH Worse!!!!!!!!!!!!!!!!!!!!! 

Hey Hillary......................Shut the ""***FUCK UP***""!!!!!!!!!!!!!!!!!!!!!!!! 

You had your Chance to play Joan of Arc in Benghazi Libya.....................4 Americans DIED There and YOU and Obama are STILL ""*****LYING*****"" about what happened that Night!!!!!!!!!!!!!!!!!!!!!!!!!! 

Yea I'm SURE Putin "IS" Peeing ALL over himself with the Idea that Hillary has now Weighed in with her John Wayne Imitation!!!!!!!!!!!!

"Russia will pay a big price" for Ukraine crisis, Hillary Clinton says 

Benghazi attack could have been prevented if US hadn't 'switched sides in the War on Terror' and allowed $500 MILLION of weapons to reach al-Qaeda militants, reveals damning report

  • Citizens Committee on Benghazi claims the US government allowed arms to flow to al-Qaeda-linked militants who opposed Muammar Gaddafi
  • Their rise to power, the group says, led to the Benghazi attack in 2012
  • The group claims the strongman Gaddafi offered to abdicate his presidency, but the US refused to broker his peaceful exit
  • The commission, part of the center-right Accuracy In Media group, concluded that the Benghazi attack was a failed kidnapping plot
  • US Ambassador Chris Stevens was to be captured and traded for 'blind sheikh' Omar Abdel-Rahman, who hatched the 1993 WTC bombing plot 

Jihadists Now Control Secretive U.S. Base in Libya
By Eli Lake

A key jihadist leader and longtime member of al Qaeda has taken control of a secretive training facility set up by U.S. special operations forces on the Libyan coastline to help hunt down Islamic militants, according to local media reports, Jihadist web forums, and U.S. officials.

In the summer of 2012, American Green Berets began refurbishing a Libyan military base 27 kilometers west of Tripoli in order to hone the skills of Libya's first Western-trained special operations counter-terrorism fighters. Less than two years later, that training camp is now being used by groups with direct links to al Qaeda to foment chaos in post-Qaddafi Libya.

Last week, the Libyan press reported that the camp (named "27" for the kilometer marker on the road between Tripoli and Tunis) was now under the command of Ibrahim Ali Abu Bakr Tantoush, a veteran associate of Osama bin Laden who was first designated as part of al Qaeda's support network in 2002 by the United States and the United Nations. The report said he was heading a group of Salifist fighters from the former Libyan base.

In other words, Tantoush is now the chief of a training camp the U.S. and Libyan governments had hoped would train Libyan special operations forces to catch militants like Tantoush.

One U.S. defense official told The Daily Beast that the media report matched U.S. intelligence reporting from Libya. Another U.S. official in Washington said intelligence analysts were aware of the reports but had yet to corroborate them, however. A spokesman for Africa Command declined to comment for the story.

Tantoush himself on Tuesday evening gave an interview to Libyan television where he confirmed that he was in the country but also said he had not direct or indirect link to the camp. In the interview, Tantoush, who was indicted in 2000 for his role in the 1998 al-Qaeda bombings of two U.S. embassies in Africa, also claimed he has never participated in terror attacks for al Qaeda, and boasted of traveling to Libya on a fake passport. 

Intel analyst: Gadhafi wanted out
Says it was U.S. failure to respond that set up disaster
By Alana Cook

WASHINGTON – A top intelligence analyst who participated in negotiations to keep Muammar Gadhafi in power says the Libyan crisis and the Benghazi attacks were avoidable – because a “brutal” Gadhafi wanted out – he wanted peace – and the chance to pursue al-Qaida himself.

Instead, Gadhafi’s requests for exile received silence from the U.S. government and allies.

That meant the door to peace was closed, and al-Qaida was armed because of the inaction of the U.S. government, the analyst said.

That same inaction, former naval intelligence officer and retired Rear Adm. Chuck Kubic said, is responsible for the deaths of Ambassador Chris Stevens and U.S. Special Forces members in the terror attacks on U.S. facilities in Benghazi.

“What went on there was un-American. We don’t put people in the field and not come to their support,” retired Adm. James “Ace” Lyons told reporters at a Citizens Commission news conference Tuesday. 

Joe Wilson Was Right
60 Percent of the Time, Obama Lies Every Time
BY: David Rutz
April 24, 2014 5:00 am

Rep. Joe Wilson (R., S.C.) created an outcry in September 2009 when he blurted out “You lie!” at President Barack Obama while he discussed health care reform before Congress.

Wilson may have been off base on the particular claim on which he challenged Obama, but it turns out he was ahead of the curve. A host of statements by Obama since his first campaign for president up through this past month have been proven to be false or completely contradictory to earlier statements.

The public has caught up to Wilson, as well. Sixty-one percent of voters said in a Fox News poll that they believe Obama lies “most” or “some” of the time on important issues. On everything ranging from Obamacare to Syria to Fast & Furious to Benghazi, the fact-checkers have agreed.

May 13, 2013

“With respect to Benghazi … the day after it happened, I acknowledged that this was an act of terrorism.”

Obama, barely containing the anger in his voice after being forced to address Benghazi at a press conference, asserted he called the deadly attack on the U.S. consulate an “act of terrorism,” but he never did.

In fact, in the Rose Garden and at campaign events in the days following the attack, Obama said that “no act of terror” could ever shake the resolve of the country. He did not directly call it an “act of terrorism,” perhaps in keeping with his campaign credo about having al Qaeda on the run.

Indeed, at first the administration peddled the false narrative that the Benghazi assault was the spontaneous result of a protest against an anti-Islamic video. The Washington Post noted the initial unedited talking points didn’t call it an “act of terrorism” either.

The Washington Post’s “Fact-Checker” gave this claim Four Pinocchios, its harshest rating.