the demise of the dollar

Independent | In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading. In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

blinding white flash

how nonsense sharpens the intellect

NYTimes | In addition to assorted bad breaks and pleasant surprises, opportunities and insults, life serves up the occasional pink unicorn. The three-dollar bill; the nun with a beard; the sentence, to borrow from the Lewis Carroll poem, that gyres and gimbles in the wabe.

An experience, in short, that violates all logic and expectation. The philosopher Soren Kierkegaard wrote that such anomalies produced a profound “sensation of the absurd,” and he wasn’t the only one who took them seriously. Freud, in an essay called “The Uncanny,” traced the sensation to a fear of death, of castration or of “something that ought to have remained hidden but has come to light.”

At best, the feeling is disorienting. At worst, it’s creepy.

Now a study suggests that, paradoxically, this same sensation may prime the brain to sense patterns it would otherwise miss — in mathematical equations, in language, in the world at large.

“We’re so motivated to get rid of that feeling that we look for meaning and coherence elsewhere,” said Travis Proulx, a postdoctoral researcher at the University of California, Santa Barbara, and lead author of the paper appearing in the journal Psychological Science. “We channel the feeling into some other project, and it appears to improve some kinds of learning.”

okc bombing tapes appear edited

Washington Post | Long-secret security tapes showing the chaos immediately after the 1995 bombing of the Oklahoma City federal building are blank in the minutes before the blast and appear to have been edited, an attorney who obtained the recordings said Sunday.

"The real story is what's missing," said Jesse Trentadue, a Salt Lake City attorney who obtained the recordings through the federal Freedom of Information Act as part of an unofficial inquiry he is conducting into the April 19, 1995, bombing that killed 168 people and injured hundreds more.

Trentadue gave copies of the tapes to The Oklahoman newspaper, which posted them online and provided copies to The Associated Press.

The tapes turned over by the FBI came from security cameras various companies had mounted outside office buildings near the Alfred P. Murrah Federal Building. They are blank at points before 9:02 a.m., when a truck bomb carrying a 4,000 pound fertilizer-and-fuel-oil bomb detonated in front of the building, Trentadue said.

"Four cameras in four different locations going blank at basically the same time on the morning of April 19, 1995. There ain't no such thing as a coincidence," Trentadue said.

He said government officials claim the security cameras did not record the minutes before the bombing because "they had run out of tape" or "the tape was being replaced."

"The interesting thing is they spring back on after 9:02," he said. "The absence of footage from these crucial time intervals is evidence that there is something there that the FBI doesn't want anybody to see."

A spokesman for the FBI in Oklahoma City, Gary Johnson, declined to comment and referred inquiries about the tapes to FBI officials in Washington, who were not immediately available for comment Sunday.

on going rogue...,

Gawker | Lynn Vincent, the woman who is writing a book called Going Rogue "by" Sarah Palin, sure can pick her co-writers. She's written books before with a general who kills "demons" for God and a guy who finds interracial dating "revolting."

As Charles Johnson—whose ongoing reformation from Muslim-hating wacko to right-wing apostate continues to puzzle and delight us—points out, Palin's ghostwriter's previous work includes Donkey Cons, a thoughtful investigative look at the Democratic Party's criminality that blows the lid off that "killer and traitor Aaron Burr." Vincent's co-writer on Donkey Cons was Robert Stacy McCain, a former Washington Times editor who writes things like this:

[T]he media now force interracial images into the public mind and a number of perfectly rational people react to these images with an altogether natural revulsion. The white person who does not mind transacting business with a black bank clerk may yet be averse to accepting the clerk as his sister-in-law, and THIS IS NOT RACISM, no matter what Madison Avenue, Hollywood and Washington tell us.

That was from a private e-mail McCain once wrote that a recipient posted online, so in his defense, McCain (no relation to Palin's running mate) wouldn't write something like that in public. In public, he says things like slaves and whites in the Old South had "cordial and affectionate relations," is a member of the League of the South, which wants to secede from the Union (again!), and writes for a web site called VDare, which proudly publishes the work of "rational and civil...white nationalists" who "unashamedly work for their people."

Anyway, when Palin was doing her due diligence before hiring Vincent, she probably didn't look into her association with McCain, because she probably just assumed it was John McCain, because she's an idiot. We're sure she will promptly reject and denounce Vincent's racist affiliations.

Progressive Alaska | Palin has been filmed declaring the Iraq War to be a holy war. She has stated that she wants Alaska Natives relocated to strategic hubs hamlets. Her sole trip to Alaska's Yukon Delta during the winter of 2009 was with proselytizing Cristianist supremacists Jerry Prevo and Franklin Graham. Both have made efforts in the past to suppress, if not eradicate, Alaska Native culture.

Vincent co-authored a book with Christianist zealot, Lt. Gen. William Boykin, called Never Surrender. Here's some classic Boykin:

As many will remember, we couldn't have gotten off to a better start on winning hearts and minds when Lt. Gen. William "Jerry" Boykin, on his speaking tour of churches in 2003, publicly and in uniform proclaimed that the so-called war on terror was really a fight between Satan and Christians.

He made comments like, "We in the Army of God, in the House of God, the Kingdom of God have been raised for such a time as this," saying that George W. Bush, who had ignorantly called the war a crusade, was "in the White House because God put him there," and referring to the capture of Somali warlord Osman Atto, said, "I knew that my God was bigger than his. I knew that my God was a real God, and his was an idol."

Speaking at a Rotary Club meeting in his hometown of Concord, N.C., in December 2006, one of Boykin's supporters, former Rep. Robin Hayes, R-N.C., pronounced that stability in Iraq ultimately depended on "spreading the message of Jesus Christ, the message of peace on earth, good will towards men. ... Everything depends on everyone learning about the birth of the savior."

Palin's fit with Vincent may be a stroke of sick genius. Imagine Vincent tossing Palin's verbal herbage into a lethal concoction, designed to spread more hatred of non-whites, urging people to reject the products of interracial marriage, conjuring up the false spirits of the Old South, touting carrying loaded weapons into public meetings, urging citizens to strike out openly and assertively against census workers - and on and on and........

set free....,

god inside the brain

Arstechnica | Why do some embrace religion and others reject it outright? For a long time, scientists have been trying to answer this question by probing the neural roots of religion. Until fairly recently, many thought the answer lay in a "God-spot"—a small region of the brain that has been linked to the mystical experiences associated with faith.

Thanks in large part to the growing sophistication of brain-scanning techniques, which let neuroscientists peer into the brain’s inner workings, that concept has largely been rendered moot; there is now widespread agreement that religious behaviors are modulated by well-defined neural pathways. Indeed, several studies have indicated that the feelings of joy, doubt, and self-reflection that are evoked by intense religious experiences can be correlated with specific patterns of brain activation. Earlier this year, a group of researchers led by the National Institute on Aging’s Dimitrios Kapogiannis identified several of the cognitive mechanisms and brain circuits that seem to be engaged during the processing of religious belief.

Their findings showed that, far from being an inscrutable phenomenon, religion could in fact be experimentally addressed and that its emergence may have been driven by changes in the neural capacity for language, logical reasoning, and other evolutionarily significant processes. In a follow-up study, the same group investigated whether the expression of religious beliefs could be tied to variability in the brain's architecture. Their results, which reveal that differences in regional cortical volumes correlate with key aspects of religiosity, were reported in PLoS ONE. Fist tap Dale.

the struggle between good and non-evil

cream of hurt

chinese economic juggernaut is gaining on japan

NYTimes | For years, Japan has been readying itself for the day that it is eclipsed economically by China. But as a result of the global slowdown, Japan’s difficulty in managing its economy and China’s rise — on vivid display Thursday as Beijing celebrated the 60th anniversary of the founding of the People’s Republic — that day may come sooner than anyone predicted.

Though recent wild currency swings could delay the reckoning, many economists expect Japan to cede its rank as the world’s second-largest economy sometime next year, as much as five years earlier than previously forecast.

At stake are more than regional bragging rights: the reversal of fortune will bring an end to a global economic order that has prevailed for 40 years, with ramifications across arenas from trade and diplomacy to, potentially, military power.

China’s rise could accelerate Japan’s economic decline as it captures Japanese export markets, and as Japan’s crushing national debt increases and its aging population grows less and less productive — producing a downward spiral.

“It’s beyond my imagination how far Japan will fall in the world economy in 10, 20 years,” said Hideo Kumano, economist at the Dai-Ichi Life Research Institute in Tokyo.

Not long ago, Japan was “the economic miracle,” an ascendant juggernaut on its way to rivaling the United States, which has the biggest economy.

Now, many here ask whether Japan is destined to be the next Switzerland: rich and comfortable, but of little global import, largely ignored by the rest of the world.

Yet even this widely held hope among the country’s 127 million people may be slipping from Japan’s grasp.

detroit: too broke to bury their dead

CNN | Money to bury Detroit's poor has dried up, forcing struggling families to abandon their loved ones in the morgue freezer. At 1300 E. Warren St., you can smell the plight of Detroit.

Inside the Wayne County morgue in midtown Detroit, 67 bodies are piled up, unclaimed, in the freezing temperatures. Neither the families nor the county can afford to bury the corpses. So they stack up inside the freezer.

Albert Samuels, chief investigator for the morgue, said he has never seen anything like it during his 13 years on the job. "Some people don't come forward even though they know the people are here," said the former Detroit cop. "They don't have the money."

Lifelong Detroit residents Darrell and Cheryl Vickers understand this firsthand. On a chilly September morning they had to visit the freezer to identify the body of Darrell's aunt, Nancy Graham -- and say their goodbyes.

The couple, already financially strained, don't have the $695 needed to cremate her. Other family members, mostly in Florida, don't have the means to contribute, either. In fact, when Darrell's grandmother passed recently, his father paid for the cremation on a credit card -- at 21% interest.

So the Vickers had to leave their aunt behind. Body number 67.

gore vidal - u.s. will have a dictatorship soon....,

Timesonline | Vidal originally became pro-Obama because he grew up in “a black city” (meaning Washington), as well as being impressed by Obama’s intelligence. “But he believes the generals. Even Bush knew the way to win a general was to give him another star. Obama believes the Republican Party is a party when in fact it’s a mindset, like Hitler Youth, based on hatred — religious hatred, racial hatred. When you foreigners hear the word ‘conservative’ you think of kindly old men hunting foxes. They’re not, they’re fascists.”

Another notable Obama mis-step has been on healthcare reform. “He f***ed it up. I don’t know how because the country wanted it. We’ll never see it happen.” As for his wider vision: “Maybe he doesn’t have one, not to imply he is a fraud. He loves quoting Lincoln and there’s a great Lincoln quote from a letter he wrote to one of his generals in the South after the Civil War. ‘I am President of the United States. I have full overall power and never forget it, because I will exercise it’. That’s what Obama needs — a bit of Lincoln’s chill.” Has he met Obama? “No,” he says quietly, “I’ve had my time with presidents.” Vidal raises his fingers to signify a gun and mutters: “Bang bang.” He is referring to the possibility of Obama being assassinated. “Just a mysterious lone gunman lurking in the shadows of the capital,” he says in a wry, dreamy way.

Vidal now believes, as he did originally, Clinton would be the better president. “Hillary knows more about the world and what to do with the generals. History has proven when the girls get involved, they’re good at it. Elizabeth I knew Raleigh would be a good man to give a ship to.”The Republicans will win the next election, Vidal believes; though for him there is little difference between the parties. “Remember the coup d’etat of 2000 when the Supreme Court fixed the selection, not election, of the stupidest man in the country, Mr Bush.”

He observes presidential office-holders balefully. “The only one I knew well was Kennedy, but he didn’t impress me as a good president. It’s like asking, ‘What do I think of my brother?’ It’s complicated. I’d known him all my life and I liked him to the end, but he wrecked his chances with the Bay of Pigs and Suez crises, and because everyone was so keen to elect Bobby once Jack had gone, lies started to be told about him — that he was the greatest and the King of Camelot.”

Today religious mania has infected the political bloodstream and America has become corrosively isolationist, he says. “Ask an American what they know about Sweden and they’d say ‘They live well but they’re all alcoholics’. In fact a Scandinavian system could have benefited us many times over.” Instead, America has “no intellectual class” and is “rotting away at a funereal pace. We’ll have a military dictatorship fairly soon, on the basis that nobody else can hold everything together. Obama would have been better off focusing on educating the American people. His problem is being over-educated. He doesn’t realise how dim-witted and ignorant his audience is. Benjamin Franklin said that the system would fail because of the corruption of the people and that happened under Bush.”

Vidal adds menacingly: “Don’t ever make the mistake with people like me thinking we are looking for heroes. There aren’t any and if there were, they would be killed immediately. I’m never surprised by bad behaviour. I expect it.”

anthropocene musings....,

NewScientist | WHEN Nobel prize-winning atmospheric chemist Paul Crutzen coined the word Anthropocene around 10 years ago, he gave birth to a powerful idea: that human activity is now affecting the Earth so profoundly that we are entering a new geological epoch.

The Anthropocene has yet to be accepted as a geological time period, but if it is, it may turn out to be the shortest - and the last. It is not hard to imagine the epoch ending just a few hundred years after it started, in an orgy of global warming and overconsumption.

Let's suppose that happens. Humanity's ever-expanding footprint on the natural world leads, in two or three hundred years, to ecological collapse and a mass extinction. Without fossil fuels to support agriculture, humanity would be in trouble. "A lot of things have to die, and a lot of those things are going to be people," says Tony Barnosky, a palaeontologist at the University of California, Berkeley. In this most pessimistic of scenarios, society would collapse, leaving just a few hundred thousand eking out a meagre existence in a new Stone Age.

Whether our species would survive is hard to predict, but what of the fate of the Earth itself? It is often said that when we talk about "saving the planet" we are really talking about saving ourselves: the planet will be just fine without us. But would it? Or would an end-Anthropocene cataclysm damage it so badly that it becomes a sterile wasteland?

The only way to know is to look back into our planet's past. Neither abrupt global warming nor mass extinction are unique to the present day. The Earth has been here before. So what can we expect this time?

china's ties with iran complicate diplomacy

NYTimes | Leaders of the House Foreign Affairs Committee swept into Beijing last month to meet with Chinese officials, carrying a plea from Washington: if Iran were to be kept from developing nuclear weapons, China would have to throw more diplomatic weight behind the cause.

In fact, the appeal had been largely answered even before the legislators arrived.

In June, China National Petroleum signed a $5 billion deal to develop the South Pars natural gas field in Iran. In July, Iran invited Chinese companies to join a $42.8 billion project to build seven oil refineries and a 1,019-mile trans-Iran pipeline. And in August, almost as the Americans arrived in China, Tehran and Beijing struck another deal, this time for $3 billion, that will pave the way for China to help Iran expand two more oil refineries.

The string of energy deals appalled the Democratic chairman of the Foreign Affairs Committee, Representative Howard L. Berman of California, who called them “exactly the wrong message” to send to an Iran that seemed determined to flout international nuclear rules.

But some analysts see another message: as the United States issues new calls to punish Iran for secretly expanding its nuclear program, it is not at all clear that Washington’s interests are the same as Beijing’s.

That will make it doubly difficult, these analysts say, to push meaningful sanctions against Iran through the United Nations Security Council, where China not only holds a veto but has also been one of Iran’s more reliable defenders.

“Their threat perception on this issue is different from ours,” said Zalmay Khalilzad, who as the American ambassador to the United Nations under President George W. Bush helped persuade China to approve limited sanctions against Iran. “They don’t see Iran in the same way as we do.”

François Godement, a prominent China scholar and the president of the Paris-based Asia Center, put it more bluntly. “Basically,” he said, “the rise of Iran is not bad news for China.”

oil and ideology keep china from joining push against iran

Washington Post | In its effort to muster support for sterner action against Iran, the Obama administration will have to overcome China's reluctance to punish a country that is one of its top oil suppliers and a major beneficiary of its energy-related investments.

The administration's frustration with Beijing is growing. U.S. officials have noted that China has appeared even more reluctant than Russia to take action against Iran after disclosures about its nuclear program. U.S. officials said they are particularly concerned that China has blocked their efforts to target freight-forwarding companies based in Hong Kong that reship goods, including prohibited weaponry, to Iran.

The Chinese "have not displayed a sense of urgency" on Iran, said a senior administration official. Instead, the official said, China has attempted to "have it both ways," preserving its relationship with Iran while also working with the United States and other countries involved in the effort to prevent Iran from developing a nuclear weapon.

Why is China protecting Iran? Two reasons, analysts say: oil and ideology.

Iran is China's second-biggest supplier of oil, and imports are rising. In a country where more people are expected to buy cars this year than in the United States, China's appetite for oil is unquenchable.

Furthermore, China's rapid economic growth is the ruling Communist Party's single most important claim to legitimacy. Tougher economic sanctions against Iran would probably cause the price of oil to spike in China, threatening its economic juggernaut.

China's investments in Iran also lessen the likelihood that Beijing will support enhanced sanctions. China's state-run oil behemoths have committed so much money to Iran -- an estimated $120 billion over the past five years -- that analysts estimate that its engineering firms will not be able to handle all the work.

obama risks a domestic military intervention

Newsmax posted this column tuesday and pulled it yesterday. I reposted it in its entirety before it slides down the collective memory hole. As some of you who visit this watering hole already know, I suspect that Obama and Sec Def Gates have been working to defuse a dominionist insurrection in the DoD ranks for some months now.

Obama Risks a Domestic Military Intervention - By: John L. Perry

There is a remote, although gaining, possibility America's military will intervene as a last resort to resolve the "Obama problem." Don't dismiss it as unrealistic.

America isn't the Third World. If a military coup does occur here it will be civilized. That it has never happened doesn't mean it wont. Describing what may be afoot is not to advocate it. So, view the following through military eyes:

# Officers swear to "support and defend the Constitution of the United States against all enemies, foreign and domestic." Unlike enlisted personnel, they do not swear to "obey the orders of the president of the United States."

# Top military officers can see the Constitution they are sworn to defend being trampled as American institutions and enterprises are nationalized.

# They can see that Americans are increasingly alarmed that this nation, under President Barack Obama, may not even be recognizable as America by the 2012 election, in which he will surely seek continuation in office.

# They can see that the economy -- ravaged by deficits, taxes, unemployment, and impending inflation -- is financially reliant on foreign lender governments.

# They can see this president waging undeclared war on the intelligence community, without whose rigorous and independent functions the armed services are rendered blind in an ever-more hostile world overseas and at home.

# They can see the dismantling of defenses against missiles targeted at this nation by avowed enemies, even as America's troop strength is allowed to sag.

# They can see the horror of major warfare erupting simultaneously in two, and possibly three, far-flung theaters before America can react in time.

# They can see the nation's safety and their own military establishments and honor placed in jeopardy as never before.

So, if you are one of those observant military professionals, what do you do?

Wait until this president bungles into losing the war in Afghanistan, and Pakistan's arsenal of nuclear bombs falls into the hands of militant Islam?

Wait until Israel is forced to launch air strikes on Iran's nuclear-bomb plants, and the Middle East explodes, destabilizing or subjugating the Free World?

What happens if the generals Obama sent to win the Afghan war are told by this president (who now says, "I'm not interested in victory") that they will be denied troops they must have to win? Do they follow orders they cannot carry out, consistent with their oath of duty? Do they resign en masse?

Or do they soldier on, hoping the 2010 congressional elections will reverse the situation? Do they dare gamble the national survival on such political whims?

Anyone who imagines that those thoughts are not weighing heavily on the intellect and conscience of America's military leadership is lost in a fool's fog.

Will the day come when patriotic general and flag officers sit down with the president, or with those who control him, and work out the national equivalent of a "family intervention," with some form of limited, shared responsibility?

Imagine a bloodless coup to restore and defend the Constitution through an interim administration that would do the serious business of governing and defending the nation. Skilled, military-trained, nation-builders would replace accountability-challenged, radical-left commissars. Having bonded with his twin teleprompters, the president would be detailed for ceremonial speech-making.

Military intervention is what Obama's exponentially accelerating agenda for "fundamental change" toward a Marxist state is inviting upon America. A coup is not an ideal option, but Obama's radical ideal is not acceptable or reversible.

Unthinkable? Then think up an alternative, non-violent solution to the Obama problem. Just don't shrug and say, "We can always worry about that later."

In the 2008 election, that was the wistful, self-indulgent, indifferent reliance on abnegation of personal responsibility that has sunk the nation into this morass.
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Newsmax explains decision to take down coup column

The conservative magazine Newsmax has sent over a statement explaining why it took down a column published on its Web site that appeared to suggest a military coup against President Obama.

The statement, which appears in full below, tries a couple of dodges to get Newsmax off the hook, and they don't quite succeed.

inside occult america

Daily Grail | Mitch Horowitz is a writer and publisher of many years' experience, with a lifelong interest in man’s search for meaning. As the editor-in-chief of Tarcher/Penguin in New York, Mitch has published some of today’s leading titles in world religion, esoterica, and the metaphysical. He has now authored his own book, Occult America: The Secret History of How Mysticism Shaped Our Nation, (Amazon US and UK) "an engaging, long-overdue portrait of one nation, under many gods, whose revolutionary influence is still being felt in every corner of the globe." This short Q&A discusses a number of the topics covered in Occult America, including Ouija, the occult symbolism on the dollar bill, and the influence of occult and New Age thinking on some of the biggest personalities in US history.

Q: Many of our Presidents and Vice-Presidents brought occult influences to the White House. One of the most fascinating examples is Henry A. Wallace. Can you tell us a bit about his beliefs and how they shaped his political aspirations?

Mitch: Henry A. Wallace was Franklin Roosevelt’s second vice-president, preceding Harry Truman. While Wallace is largely forgotten today, he was once considered a chief spokesman for the New Deal and a potential successor to Roosevelt himself. Wallace was also a great intellectual searcher, and his curiosity extended into the occult. This fact ultimately led to his public downfall. Wallace was born to a prominent Iowa farming and political family and was first tapped as FDR’s secretary of agriculture. In that role Wallace introduced a wide range of agricultural reforms that helped sustain American farming during the Great Depression. In this respect, he is considered perhaps the finest secretary of agriculture in American history. He also described himself as a “practical mystic” who was deeply interested in Theosophy, Freemasonry, astrology, Native American shamanism, Eastern faiths – and also in the work of a Russian mystic-artist, Nicholas Roerich. In short, Wallace wrote some very doting letters to Roerich, which fell into the hands of a Hearst newspaper columnist who used them to bury Wallace. Today, Truman is a household name while Wallace is obscure. Yet his legacy can be found on our dollar bill. It was Wallace who introduced the Masonic-influenced symbol of the eye-and-pyramid on the back of the US dollar in 1935.

church attacks spike

Washington Post | The youth choir belted out "O Happy Day" as folks trickled in through the church doors. Few noticed the accountant sitting in the back pew, his eyes flickering over each latecomer.

In one hand, he held a Bible. In the other, tucked inside his coat pocket, he gripped a .38 caliber revolver.

He had come to People's Community Baptist Church in Silver Spring looking for his estranged wife. And once she arrived and began arguing with him outside, the Bible would be forgotten. The gun would be raised. And in a matter of seconds, the congregation's sense of sanctuary would be shattered.

What happened that Sunday morning at People's Church was just one in a string of fatal shootings at houses of worship across the country. The most high-profile incidents -- a Kansas abortion doctor gunned down in May, an Illinois pastor shot mid-sermon in March, a Tennessee church attacked during a children's play in 2008 -- have begun to alter the way many churches operate.

Sanctuaries that once left their doors open all day now employ armed guards, off-duty police officers, surveillance cameras and even undercover plainclothes guards who mingle with the congregation.

A small cottage industry of faith-specialized security firms has sprung up almost overnight, offering nervous churches, synagogues and mosques vulnerability assessments, security systems and emergency planning. Many were already on alert for the kind of crimes that have plagued religious institutions for years: churches being burned, synagogues and mosques being desecrated.

People's Church, in fact, had a security plan in place for its 3,000-member congregation that included off-duty officers hired for traffic and protection. But none of it stopped Kevin Kelly from firing five bullets into Patricia Simmons Kelly's chest Feb. 22.

And now, like other places of worship shaken by violence, its members are grappling with deep wounds -- psychological and spiritual -- that have lingered long after the police cars and ambulances pulled away.

religious life won't be the same after downturn

AP | Organized religion was already in trouble before the fall of 2008. Denominations were stagnating or shrinking, and congregations across faith groups were fretting about their finances.

The Great Recession made things worse.

It's further drained the financial resources of many congregations, seminaries and religious day schools. Some congregations have disappeared and schools have been closed. In areas hit hardest by the recession, worshippers have moved away to find jobs, leaving those who remain to minister to communities struggling with rising home foreclosures, unemployment and uncertainty.

Religion has a long history of drawing hope out of suffering, but there's little good news emerging from the recession. Long after the economy improves, the changes made today will have a profound effect on how people practice their faith, where they turn for help in times of stress and how they pass their beliefs to their children.

"In 2010, I think we're going to see 10 or 15 percent of congregations saying they're in serious financial trouble," says David Roozen, a lead researcher for the Faith Communities Today multi-faith survey, which measures congregational health annually. "With around 320,000 or 350,000 congregations, that's a hell of a lot of them."

The sense of community that holds together religious groups is broken when large numbers of people move to find work or if a ministry is forced to close.

high court to consider issue of church state separation

Washington Post | MOJAVE NATIONAL PRESERVE, Calif. -- It would be easy to miss among the yucca and Joshua trees of this vast place -- a small plywood box, set back from a gentle curve in a lonesome desert road. It looks like nothing so much as a miniature billboard without a message.

But inside the box is a 6 1/2 -foot white cross, built to honor the war dead of World War I. And because its perch on a prominent outcropping of rock is on federal land, it has been judged to be an unconstitutional display of government favoritism of one religion over another.

Whether the Mojave cross is ever unveiled again -- or taken down for good -- is up to the Supreme Court led by Chief Justice John G. Roberts Jr. Next week, it will get its first major chance to divine the meaning of the First Amendment command that "Congress shall make no law respecting an establishment of religion."

If the court reaches the constitutional issues at hand, all sides agree it could provide clarity to the court's blurry rules on church-and-state separations. It could also carry important implications for the fate of war memorials around the country that feature religious imagery -- the Argonne Cross in Arlington National Cemetery, for instance, or the Memorial Peace Cross in Bladensburg.

The Mojave cross's protectors, which include veterans groups and the federal government, say the symbol is a historic, secular tribute; its original plaque from the 1930s said it was erected to honor "the dead of all wars." They argue that Congress has taken the steps to distance itself from any appearance of endorsing a religious display.

But the American Civil Liberties Union, Jewish and Muslim veterans, and others say government actions have only deepened the problem. In an effort to avoid the lower courts' rulings that it must come down, Congress has designated the site the country's only official national memorial to the dead of World War I, elevating it to an exclusive group of national treasures that includes the Washington Monument and Mount Rushmore.

Congress's actions ensures that "the cross necessarily will reflect continued government association with the preeminent symbol of Christianity," the ACLU said.

what do these numbers mean?

our perilous path to simple enslavement

AlterNet | Every American needs to realize that if they look at a police officer sideways they will be shot with electricity regardless of whether the officer has other choices.

Pam Spaulding put up a list of the 39 people (that we know of) who have been killed so far this year by tasers. (The list was compiled by Electronic Village, which is keeping track of the statistics.) Unsurprisingly, nearly 40% of the victims were black, despite being only 6% of the population.

But lest anyone who isn't black think they are immune, consider this:

An 81-year-old man tased during his arrest by a Stockton CHP officer says he may take legal action.

Victor Schiaffini says he is considering filing an excessive use of force complaint.

Schiaffini walks with a cane, has no use of his left arm after suffering six strokes, and takes several prescription medications daily.

The CHP says he attacked an officer with a deadly weapon, his cane.

Schiaffini was pushed to the ground and tased three times during his arrest.

"That was the worst whoopin' I've ever taken in my life," Schiafiini told CBS13.

Schiaffini spent three days in San Joaquin County Jail following his arrest in July.

The District Attorney reduced Schiaffini's charges to an infraction and he pleaded guilty.

Again, every American needs to realize that if they look at a police officer sideways or misunderstand their orders they will be shot with electricity regardless of whether the officer has other choices.

When you see a half paralyzed, 81 year old man tasered, you know for sure that it cannot be possible that they needed to taser him three times to subdue him. It was to teach him and anyone who was watching a lesson: if you fail to quickly comply with a police officer's instructions, no questions asked, you will be electrocuted and hauled off to jail. That's just the way it is.

And the more this is officially sanctioned the more common it will be become. The famous Milgram Experiment showed that people are more than willing to inflict pain on their fellow humans if they are instructed to do so by someone in authority.

our perilous path to energy enslavement

Techworld | Saving the world is not just for movie plots anymore. All indications are that another major economic crisis is looming, and it will have more far-reaching and long-lasting effects than the recession we're just starting to climb out of now. The problem is oil, and unless it's solved, reforming healthcare and winning wars abroad won't be possible.

Earlier this month, I had the opportunity to watch Andy Grove talk about saving the U.S., and I was once again taken with what made him a truly great CEO. It isn't that he is articulate or simply on message -- it's that he conveys a combination of intelligence and passion rarely found in any current leaders. It is also fascinating to see he can still make ex-Intel executives sweat at an Intel (Nasdaq: INTC) More about Intel alumni reunion, even though many of them now run their own companies.

Hidden in the messaging at the Intel Developer Forum (IDF) last week was a goal to dramatically lower U.S. electricity bills and, in conjunction with Andy and the ex-Intel employees, save the country from becoming an energy slave to China by 2020. At the core of this is the view that the current Obama administration may be focused on the right things but in the wrong order.

For instance, if we don't fix the energy problem -- in short, our addiction to oil -- first, then other things -- like healthcare More about healthcare reform and the war on terror -- will fail.

Here is the problem in short form. China's need for oil is increasing at a near-vertical rate, and it should pass the U.S. in consumption is just a few years. Production isn't increasing much at all, which means there will be massive oil shortages.

The most credible projections I've seen place the shortage crisis at around 2013-15 (there is clear disagreement on the cause but the effect is consistent) and suggest that oil will veer upward of US$150 a barrel at that time. That would suggest gas prices exceeding $7 a gallon -- and going vertical after that.

crude world - the violent twilight of oil

NYTimes | Oil is the curse of the modern world; it is “the devil’s excrement,” in the words of the former Venezuelan oil minister Juan Pablo Pérez Alfonzo, who is considered to be the father of OPEC and should know. Our insatiable need for oil has brought us global warming, Islamic fundamentalism and environmental depredation. It has turned the United States and China, the world’s biggest consumers of petroleum, into greedy, irresponsible addicts that can’t see beyond their next fix. With a few exceptions, like Norway and the United Arab Emirates, oil doesn’t even benefit the nations from which it is extracted. On the contrary: Most oil-rich states have been doomed to a seemingly permanent condition of kleptocracy by a few, poverty for the rest, chronic backwardness and, worst of all, the loss of a national soul.

We can’t be rid of the stuff soon enough.
Such is the message of Peter Maass’s slender but powerfully written new book, “Crude World: The Violent Twilight of Oil.” Unquestionably, by fueling better and faster transportation and powering cities and factories, oil has been critical to modern economies. But oil has also made possible the most destructive wars in history, and it has left human society in a historical cul-de-sac. Despite much hue and cry today, Maass argues, we seem unable to move beyond an oil-based global economy, and we are going to hit a wall soon.

Maass, a contributing writer for The New York Times Magazine, tends to endorse the predictions of industry skeptics like Matthew Simmons, who argues the earth is about to surpass “peak oil” supplies. Even with the recent fallback in prices, the petroleum that’s left to discover will be harder and more expensive to extract. Last year’s $147-a-barrel oil was just a “foretaste of what awaits us,” Maass writes.

Maass is less interested in crunching oil-supply numbers, however, than in exposing the cruelty and soullessness of human­kind’s lust for this “violence-­inducing intoxicant,” as he calls it. His book teaches us an old lesson anew: that the true wealth of nations is not discovered in the ground, but created by the ingenuity and sweat of citizens. It’s the same lesson the Spanish learned centuries ago when they discovered gold, the oil of their time, in the New World. They piled up bullion but squandered it on imperial fantasies and failed to build enduring prosperity, while destroying the civilizations from which they seized it.

Destruction, or at least a lack of progress, has been the fate of most of the nations unlucky enough to sit on top of large pools of “black gold” today. They have grown corrupted by it, their leaders relieved of the need to show accountability as long as they can buy off well-connected foreigners and pay for the security and protection they need from their own angry, disenfranchised citizens. In starkly titled chapters — “Fear,” “Greed,” “Empire,” “Alienation” and so on — Maass shows how each oil state has found its own way to failure. “Just as every un­happy family is unhappy in its own way, every dysfunctional oil country is dysfunctional in its own way,” he writes.

Scitizen | As the troubling realities of future oil supplies begin to penetrate official circles, the oil optimists are making even more outlandish claims. Last month the pugnacious Michael Lynch, an independent energy analyst and perpetual oil supply optimist, told the readers of The New York Times that the world's total endowment of oil is actually around 10 trillion barrels of which we have only discovered 2 trillion so far. That leaves 8 trillion to be extracted.

Lynch admits that with current technology only 2.5 trillion barrels of what remains can be produced though he believes future advances in technology will greatly increase the recoverable amount. He adds that he is not even including production from tar sands or other nonconventional sources. He writes all this as if it were a matter of settled fact and without citing a single piece of evidence for his views.

Lynch's most recent boast is part of a series of ever-escalating estimates by oil optimists starting a decade ago. Today, such estimates carry with them a tone of desperation as the evidence mounts that we are approaching a worldwide peak in the production of oil. The timing of peak oil production is important because there is currently no viable substitute for oil. A nearby peak would raise havoc with a global economy addicted to ever-increasing supplies of cheap oil to fuel its growth. If oil supplies begin to decline soon, that growth may be difficult and perhaps impossible to achieve.

oil addiction - a nasty way of life...,

AlterNet | The great age of renewable energy is in our distant future. Before then, energy prices will rise, environmental perils will multiply and conflict will grow. Buckle your seatbelts.

The debate rages over whether we have already reached the point of peak world oil output or will not do so until at least the next decade. There can, however, be little doubt of one thing: we are moving from an era in which oil was the world's principal energy source to one in which petroleum alternatives -- especially renewable supplies derived from the sun, wind, and waves -- will provide an ever larger share of our total supply. But buckle your seatbelts, it's going to be a bumpy ride under Xtreme conditions.

It would, of course, be ideal if the shift from dwindling oil to its climate-friendly successors were to happen smoothly via a mammoth, well-coordinated, interlaced system of wind, solar, tidal, geothermal, and other renewable energy installations. Unfortunately, this is unlikely to occur. Instead, we will surely first pass through an era characterized by excessive reliance on oil's final, least attractive reserves along with coal, heavily polluting "unconventional" hydrocarbons like Canadian oil sands, and other unappealing fuel choices.

There can be no question that Barack Obama and many members of Congress would like to accelerate a shift from oil dependency to non-polluting alternatives. As the president said in January, "We will commit ourselves to steady, focused, pragmatic pursuit of an America that is free from our [oil] dependence and empowered by a new energy economy that puts millions of our citizens to work." Indeed, the $787 billion economic stimulus package he signed in February provided $11 billion to modernize the nation's electrical grid, $14 billion in tax incentives to businesses to invest in renewable energy, $6 billion to states for energy efficiency initiatives, and billions more directed to research on renewable sources of energy. More of the same can be expected if a sweeping climate bill is passed by Congress. The version of the bill recently passed by the House of Representatives, for example, mandates that 20% of U.S. electrical production be supplied by renewable energy by 2020.

But here's the bad news: even if all these initiatives were to pass, and more like them many times over, it would still take decades for this country to substantially reduce its dependence on oil and other non-renewable, polluting fuels. So great is our demand for energy, and so well-entrenched the existing systems for delivering the fuels we consume, that (barring a staggering surprise) we will remain for years to come in a no-man's-land between the Petroleum Age and an age that will see the great flowering of renewable energy. Think of this interim period as -- to give it a label -- the Era of Xtreme Energy, and in just about every sense imaginable from pricing to climate change, it is bound to be an ugly time.

big oil, little people...,

treat corporations like people?

NYTimes | Re “The Rights of Corporations” (editorial, Sept. 22), about the Supreme Court case Citizens United v. Federal Election Commission:

When our Constitution was written, corporations may have had much broader interests in civic matters that might have made them generous toward civic affairs, yet they were not personified.

Today, corporations have evolved to have the narrow interest of maximizing returns to their investors and to their executives, often denying the rights of their employees and the small stockholder. To allude to their control, or behavior, as being representative of the stockholders, or the will of the people, is delusional.

They aggregate great wealth, and use this exclusively to advance toward more wealth. And, when applied to influence legislation, they are devoid of personhood. To give them new rights would show that they have bought a place in our government, at the deepest level, the Supreme Court.

deep in bedrock, clean energy and earthquake fears

Click on Image to Start Multimedia Presentation on the danger of digging deeper

NYTimes | Markus O. Häring, a former oilman, was a hero in this city of medieval cathedrals and intense environmental passion three years ago, all because he had drilled a hole three miles deep near the corner of Neuhaus Street and Shafer Lane.

He was prospecting for a vast source of clean, renewable energy that seemed straight out of a Jules Verne novel: the heat simmering within the earth’s bedrock.

All seemed to be going well — until Dec. 8, 2006, when the project set off an earthquake, shaking and damaging buildings and terrifying many in a city that, as every schoolchild here learns, had been devastated exactly 650 years before by a quake that sent two steeples of the Münster Cathedral tumbling into the Rhine.

Hastily shut down, Mr. Häring’s project was soon forgotten by nearly everyone outside Switzerland. As early as this week, though, an American start-up company, AltaRock Energy, will begin using nearly the same method to drill deep into ground laced with fault lines in an area two hours’ drive north of San Francisco.

Residents of the region, which straddles Lake and Sonoma Counties, have already been protesting swarms of smaller earthquakes set off by a less geologically invasive set of energy projects there. AltaRock officials said that they chose the spot in part because the history of mostly small quakes reassured them that the risks were limited.

Like the effort in Basel, the new project will tap geothermal energy by fracturing hard rock more than two miles deep to extract its heat. AltaRock, founded by Susan Petty, a veteran geothermal researcher, has secured more than $36 million from the Energy Department, several large venture-capital firms, including Kleiner Perkins Caufield & Byers, and Google. AltaRock maintains that it will steer clear of large faults and that it can operate safely.

But in a report on seismic impact that AltaRock was required to file, the company failed to mention that the Basel program was shut down because of the earthquake it caused. AltaRock claimed it was uncertain that the project had caused the quake, even though Swiss government seismologists and officials on the Basel project agreed that it did. Nor did AltaRock mention the thousands of smaller earthquakes induced by the Basel project that continued for months after it shut down.

smuggling europe's waste to poorer countries...,

NYTimes | ROTTERDAM, the Netherlands — When two inspectors swung open the doors of a battered red shipping container here, they confronted a graveyard of Europe’s electronic waste — old wires, electricity meters, circuit boards — mixed with remnants of cardboard and plastic.

“This is supposed to be going to China, but it isn’t going anywhere,” said Arno Vink, an inspector from the Dutch environment ministry who impounded the container because of Europe’s strict new laws that place restrictions on all types of waste exports, from dirty pipes to broken computers to household trash.

Exporting waste illegally to poor countries has become a vast and growing international business, as companies try to minimize the costs of new environmental laws, like those here, that tax waste or require that it be recycled or otherwise disposed of in an environmentally responsible way.

Rotterdam, the busiest port in Europe, has unwittingly become Europe’s main external garbage chute, a gateway for trash bound for places like China, Indonesia, India and Africa. There, electronic waste and construction debris containing toxic chemicals are often dismantled by children at great cost to their health. Other garbage that is supposed to be recycled according to European law may be simply burned or left to rot, polluting air and water and releasing the heat-trapping gases linked to global warming.

While much of the international waste trade is legal, sent to qualified overseas recyclers, a big chunk is not. For a price, underground traders make Europe’s waste disappear overseas.

china's threat revives race for rare earths....,

NYTimes | A Chinese threat to halt exports of rare minerals — vital for high-performance electric motors in wind turbines, hybrid cars and missiles — appears to have backfired.

With control of more than 99 percent of the world’s production of these minerals, China could try to use a ban to force other countries to buy the crucial motors for these high-tech end products, instead of just the minerals, directly from China.

But other governments and businesses reacted quickly as word of the proposed ban spread late this summer.

The Chinese threat has touched off a frenzied international effort to develop alternative mines, much as the 1973-74 Arab oil embargo’s repeated increases in oil prices prompted a global hunt for oil reserves.

In Washington, the House and Senate amended their defense budget authorization bills to require the Defense Department to review the military’s almost complete dependence on Chinese supplies of rare-earth minerals. In Australia, the government blocked a Chinese state-owned company on Thursday from acquiring a majority stake in a large mine being developed for these minerals, also called rare earths.

Meanwhile, Wall Street is financing exploration as the share prices of rare-earths mining companies soar — as much as sevenfold since March.

“Because of China’s focus on maximizing the benefits of its rare-earth resources for its own industry, there is now a focus on identifying alternatives elsewhere,” said Dudley J. Kingsnorth, a rare-earths production consultant in Perth, Australia.

Unleashing funding elsewhere has undercut China’s ability to take big stakes easily in new mines.

“You couldn’t borrow 10 cents from anybody in the financial community” to develop a rare-earths mine just three months ago, said James B. Engdahl, the chief executive and president of the Great Western Minerals Group, a rare-earths mining and processing company in Saskatoon, Saskatchewan. “We get inundated with calls offering financing these days.”

International pressure — including the possibility that the plan violated World Trade Organization rules — has forced the Chinese ministry drafting the ban to call for further review.

why the killer-apes will surely fail....,

postmodern times

simply brilliant....,

The Scientist | A project at Harvard Medical School aims to bring music to medicine in a way that goes beyond setting the mood in the waiting room. Gene transcription and translation are anything but simple. But by combining modern statistics with the sounds of a sweet melody, bioinformatician Gil Alterovitz may make interpreting these complex phenomena and diagnosing the diseases that result from abnormalities in gene expression much more manageable tasks.

"I think it's brilliant that Gil is using a completely different channel for communicating complex genomic information," Latin and ballroom DJ Taro Muso writes in an email to The Scientist. "I've always wondered why doctors don't seem to use their ears beyond listening for natural bodily sounds."

"It's deceptively simple," says bioinformatician Yves Lussier of the University of Chicago. "It was conceptually challenging to come up with it, but once we know of it, it's obvious we should have tried that in addition to visualization techniques we have been using."

By boiling down gene expression data to just a few components -- variables that condense one or more parameters of data -- and assigning each of those components a different note and musical instrument, Alterovitz and his colleagues are literally making genetics musical.

The team carefully chooses the notes such that normal gene expression patterns sound pleasantly in tune, while abnormal data yield discordant sounds. "When you hear inharmonious music it kind of catches your attention," Alterovitz says, "and that would be a sign of a pathological problem."

"Even amateur musicians can tell the difference between various chords," Muso agrees, "so there is a definite potential for motivated biologists to use harmony as a screening method."

Alterovitz got the idea ten years ago while doing his PhD at the Massachusetts Institute of Technology. When he donned his scrubs and joined surgeons in the operating room as part of his graduate research project, he was distracted by the numerous monitors measuring nearly two dozen biological signals. Sometimes an alarm would go off, he recalls, but most of the time it wasn't really relevant, and they were simply turned off and ignored.

"Wouldn't it be useful if we somehow integrated [all] those variables so that we could present something that was not just a binary alarm but holistic information about the whole system?"

a BRIC through the window...,

NYTimes | President Obama will announce Friday that the once elite club of rich industrial nations known as the Group of 7 will be permanently replaced as a global forum for economic policy by the much broader Group of 20 that includes China, Brazil, India and other fast-growing developing countries, administration officials said Thursday.

The move highlights the growing economic importance of Asia and some Latin American countries, particularly since the United States and many European countries have found their banking systems crippled by an economic crisis originating in excesses in the American mortgage market.

For more than three decades, the main economic group was the Group of 7 — the United States, Britain, Canada, France, Germany, Italy and Japan. During the Clinton years, Russia was gradually added, not because of the size of its economy, but to help integrate it with the West. Administration officials said the group would still meet twice a year to discuss security issues. But for practical purposes, the smaller group will become more like a dinner club that defers to the broader group on the economic issues that have dominated summit meetings for nearly three decades. The development, as Mr. Obama was hosting a summit meeting here for leaders of the Group of 20 — 19 countries and the European Union — also highlighted the lingering disparity between the elite group of mostly Western powers and the mass of poorer nations. For all of Mr. Obama’s talk about greater inclusiveness for countries like Brazil and China, the meeting in Pittsburgh remains dominated by the financial crisis that began in the United States and has preoccupied the old boys’ club.

lost vegas

The Sun | LOVEBIRDS Steven and Kathryn share a well-organised home in bustling Las Vegas.

They have a neat, if compact kitchen, a furnished living area, and a bedroom complete with double bed, wardrobe and bookshelf featuring a wide selection including a Frank Sinatra biography and Spanish phrase book.

And they make their money in some of the biggest casinos in the world.

But their life is far from the ordinary.

Because, along with hundreds of others, the couple are part of a secret community living in the dark and dirty underground flood tunnels below the famous strip.

Rather than working in the bars or kitchens they "credit hustle", prowling the casinos searching the fruit machines for money or credits left by drunken gamblers.

Despite the risks from disease, highly venomous spiders and flooding washing them away, many of the tunnel people have put together elaborate camps with furniture, ornaments and shelves filled with belongings.

Steven and girlfriend Kathryn's base - under Caesar's Palace casino - is one of the most elaborate. They even have a kettle and a makeshift shower fabricated out of an office drinking water dispenser.

luxury hotels risk default as $850 rooms remain empty..,

Bloomberg | Luxury hotel owners risk defaulting on their debt as the recession cuts occupancies and the credit crunch constrains refinancing.

Loans secured by more than 1,500 hotels with a total outstanding balance of $24.5 billion may be in danger of default, according to Realpoint LLC, a credit rating company that tracks commercial mortgage-backed securities. Some of the biggest loans, put on the company’s watch list because of late payments, decreasing occupancies or cash flow, were made to luxury properties where rooms can cost more than $850 a night.

“All segments are showing signs of distress but the luxury segment carries much higher loan balances and is more clearly affected,” Frank Innaurato, managing director of CMBS analytical services at Horsham, Pennsylvania-based Realpoint, said in a telephone interview.

Lodging owners are struggling after adding rooms and properties at the peak of the CMBS market from 2004 to 2007, when $83.4 billion in hotel-backed securities was issued. Occupancy among chains with the costliest rooms fell to 60 percent in the first half from 70 percent a year earlier, according to Smith Travel Research. The decline was the industry’s largest for that period.

“Luxury hotels have been aggressively financed during the peak CMBS issuance years,” David Loeb, an analyst at Robert W. Baird & Co., said in a phone interview. “That’s why luxury hotel loans crowd these watch lists.”

"fed" lynching in kentucky..,

MSNBC | WASHINGTON - A U.S. Census worker found hanged from a tree near a Kentucky cemetery had the word "fed" scrawled on his chest, a law enforcement official said Wednesday, and the FBI is investigating whether he was a victim of anti-government sentiment.

The law enforcement official, who was not authorized to discuss the case and requested anonymity, did not say what type of instrument was used to write the word on the chest of Bill Sparkman, a 51-year-old part-time Census field worker and teacher. He was found Sept. 12 in a remote patch of the Daniel Boone National Forest in rural southeast Kentucky.

The Census Bureau has suspended door-to-door interviews in rural Clay County, where the body was found, pending the outcome of the investigation. An autopsy report is pending.

Investigators have said little about the case. FBI spokesman David Beyer said the bureau is assisting state police and declined to confirm or discuss any details about the crime scene.

"Our job is to determine if there was foul play involved — and that's part of the investigation — and if there was foul play involved, whether that is related to his employment as a Census worker," said Beyer.

Attacking a federal worker during or because of his federal job is a federal crime. Fist tap Rembom.

u.s., government may fail in 5-10 years

Interview with Marc Faber - By Bloomberg News 09/22/09

pile up the debt with even more debt to bail out the debt

SCToday | FDIC weighs extraordinary steps, including loans from banks, to shore up insurance fund. The Federal Deposit Insurance Corp. is weighing several costly - and never-before-used - options as it struggles to shore up the dwindling fund that insures bank deposits.

The agency is considering borrowing billions from healthy banks. Alternatively, it may impose a special fee on the banking industry.

Each option carries risk: Drawing money from healthy banks would take dollars out of the private sector, making that money unavailable for investment in the weak economy. But charging the whole industry a fee to replenish the fund could push weaker banks toward failure.

A third option - borrowing from the Treasury - is politically unpalatable, since it would resemble another taxpayer-financed bailout.

A fourth option would be to have banks pay their regular insurance premiums early. But this idea wouldn't solve the fund's long-term cash needs.

"The bottom line is, there's no good solution," said Jaret Seiberg, an analyst with the research firm Concept Capital. "This is a fight over which option is least bad."

The FDIC is expected to propose a solution, possibly combining two or more of the options, at a board meeting next week.

Bank failures since the financial crisis struck have drained the fund to its lowest level since 1992, at the peak of the savings-and-loan crisis. The fund insures deposit bank accounts of up to $250,000.