[Arktwo] Some breaking news

[Bruce Beach]

Would you like to see how 
the news comes to me. 
Then handle this one yourself:

This is from the OFFICIAL US Federal Reserve 
calendar site:

http://www.federalreserve.gov/calendar.htm

August 31 Speech - Chairman Ben S. Bernanke
Housing and Monetary Policy
Federal Reserve Bank of Kansas City Economic Symposium, 
Jackson Hole, Wyoming
10:00 a.m.   (8 a.m. MDT) 
-----------------

Some questions that I ask myself. 

a. Why does Kansas City meet in Jackson Hole, WY
b. What is in Jackson Hole 
	other than one of the largest 
	COG (Continuity of Government) sites.
c. What is so important to take the Chairman there
d. What does this have to do with 
	the current world financial situation 
	that the Fed Reserve 
	is so heavily involved with. 
----------
These are the kinds of questions 
upon which I dare not speculate 
in this newsletter, 
since you already know my editorial standards. 
Still - 
I wish to give you a sample 
of the kinds of information that comes my way.

There are also other pieces of information 
about troop movements 
that I dare not speculate upon. 
The reason that I dare not make such speculations 
is that my expectations are already so extreme 
from what most people hold - 
that such speculations would come out as - 
"Beach says", 
while in reality they would be just speculations. 

Speculations are simply 
the thinking about 'possible' scenarios. 
They fall far short of the confidence 
which I have in my 'expectations' - 
which are already over the horizon 
of what can be predicted with any high degree 
of confidence - 
so that they also often fail to materialize. 

So - such speculations 
are 'wild man' thoughts -
and as such 
I will leave you to do your own.

-------------
A couple of newsletters ago - 
I was speculating about 
suicide among the US troops in Iraq - 
and now this comes to my attention.

http://tinyurl.com/yr7j8o

------------
Here is another speculation 
that is making the rounds, 
and which has come to me 
from several sources. 
What you may find interesting is 
who is printing it here.

http://tinyurl.com/2vw6rc

-------------
As they come to me 
I try to gather together 
in a file the items 
that I think I might include 
in a newsletter. 
Looking at the character count 
at the moment 
it is almost twice 
what my server permits me to send out.

Ergo - 
I have to select and edit.
Unfortunately - 
at the moment 
I have little time 
to do any analysis 
because things are happening so fast 
at Ark Two. 

Yesterday was doggy day - 
in which we had to spend the whole day 
taking Chyna back for more training 
to work with autistic children.

Sunday we had 13 people 
working on Ark Two - 
some of which had come from Michigan 
for several days effort. 
An immense amount accomplished - 
but we are about to cease making 
physical improvements. 

We are now down to such things 
as wiring in the back-up dryer 
for babies' diapers. 
Although we already have 
so much more 
than most anywhere else - 
one could just go on and on - 
but we are going to have to go with what we have. 

We still need help 
on the electronics end - 
and if there are any telephony experts 
on this list - 
I would appreciate your writing to me

	DawnSayer@webpal.org

and I will discuss with you  
the particular problems. 

Two big group meetings on our calendar. 
The doctor's committee in September 
in which we hope to have doctors attend 
from Canada and several states in the US - 
and
the Shelter Manager training meeting 
in October. 

You need to be an MD 
or the equivalent 
to attend the first 
and we do have requirements for the second 
but let me know if you are interested.

------------
I receive lots of 
stock market / financial market news -
insights - projections - etc. 
Some people subscribe to VERY EXPENSIVE 
newsletters and such - 
and then send me information from them.

Now, to review briefly the myth 
and the reality. 

When I was a kid 
we thought people 'invested' money 
in the stock market - 
based upon what they thought 
the prospects of a particular company were. 

They looked at the difference 
of what they expected the dividends would be 
between common stock, preferred stock, bonds, 
US Treasury instruments, and US bonds, 
listed here as to decreasing risk 
and in order of what they were hoping for 
in return for taking risk or saving. 

In time this changed 
for the stock market investors 
from clipping coupons 
to receive the quarterly dividends - 
to speculating on the price of the stock itself. 
They came to care little about how the company itself 
would do - 
but rather what the stock price would do - 
some betting on it to go up - 
and others betting it to go down (selling short).

Large investors - 
trusts for unions - 
gigantic insurance companies - 
investment branches of banks - 
investment houses and investment funds - 
eventually became the majority holders 
in the market. 

Whatever they did - 
the market did. 
They controlled the market - 
although the myth continued 
that it was the individual investors 
that controlled the market  
the latter were in reality just the sheep 
for the shearing. 

A few years ago - 
there was a highly discounted rumour 
that there might be a secret PPT 
(Plunge Protection Team) 
established by the government - 
who told the BIG banks and investors 
that they had to cooperate 
to keep the market from collapsing. 

This was hotly denied 
about the 'free market', 
and the PPT remained rumoured 
but secret.

More secret yet - 
was that the government itself 
might invest (put money into) 
the 'free stock market system' 
and therefore be a controlling factor. 
ABSOLUTELY against the free enterprise 
free market concept - 
and completely derided, discounted, denied. 

But now - 
the veils have dropped away - 
and most people see now 
that is how it works. 

The problem was greed. 
The fund managers were up there 
making millions and millions individually 
for themselves - 
no matter how the companies were doing, 
or their employees, or their investors.

People were just betting on the stock prices -
with little or no concern 
about the realities of production. 
They even went beyond betting on the stock prices 
to betting on something called derivatives 
which was betting on combinations 
of prices - 
as to whether they would go up or down - 
something which they really didn't care which -
so long as the prices went the direction 
that they wanted them to. 
At this point they had absolutely no idea 
as to which companies made up those derivatives 
and they had absolutely no idea 
as to how those individual companies were doing. 

Their only concern 
was to make money. 
If they made it on company losses - 
or the losses of other people 
because the other people made the wrong bet - 
then that is still all they wanted to do - 
which was to make money on their gamble.

The gambles became immense 
and addictive 
as with any gamblers - 
but the gamblers here were the 
financial leaders of society. 

As they sat about their gambling tables 
taking each other's bet - 
and as each gambler put in its marker - 
(instruments based upon the derivatives it had created) -
they began to realize that they couldn't pay off 
their own markers 
unless the other gamblers were to pay off their's 
to them. 

Worse yet - 
some of the gamblers began to realize - 
that they were losers - 
and that their markers were not worth what 
they were saying they were - 
and if some of the other gamblers 
asked them to pay their markers - 
they wouldn't be able to pay them - 
and you know what happens to gamblers such as those. 

Well a couple of weeks ago - 
that happened. 
So some of the gamblers that still had some money -
asked  some of those that didn't 
to pay off some of their paper - 
which they couldn't do. 

This made the gamblers that thought 
they still had that money - 
to realise that they didn't 
and it all became a game 
of not taking the other fellow's marker - 
and trying to get everyone to take their's. 

You know what happened 
when Bear Stearns tried that - 
and it was called a loss of confidence - 
and on the part of the others 
an unwillingness to take risk. 

So - 
the veils dropped away - 
and as the stock market plunged - 
the PPT came out from behind the veils 
and the US Government, 
the Treasury Department, 
and the US Federal Reserve, 
made up markers by the billions, 
to give to the BIG Bankers. 

Some people thought that there might not 
be enough markers to go around 
so they stood in lines 
(we call it a bank run) 
at places like Countrywide Bank - 
to get their markers / money - 
and some had to go home at night without it - 
and others who didn't get their early 
were given only a part 
of what they had in the bank.

When those people couldn't get their money - 
and pay their debts - 
other people started eying other banks - 
so that the four biggest banks of all 
( Citigroup, J. P. Morgan Chase, Bank
of America, and Wachovia)
on August 22, 
borrowed $500 million each from 
the US Government 
to keep going. 
(Just about how much I need - 
to keep going :)

Now, 
we have reached a situation 
where more and more BIG banks 
are not willing to lend money 
to other BIG banks - 
and even little banks 
can't make loans for things 
like mortgages 
(to even small people like me)
(because the little banks 
borrowed their money from BIG banks) -
and so house builders, 
real estate agents, 
and mortgage lenders 
are laying people off -
and I have no idea what is happening to us. 

The mortgage lenders alone 
laid off 40,000 people 
last week.
But - 
not to worry - 
these may be little problems - 
compared to the ones we usually discuss 
in this newsletter. 

Hmmm. 
I just stopped to look at the stock market news -
so maybe someone IS worrying. 
What the problem may be 
is the PPT has now used up 
the resources that the US government gave it - 
and from this moment on  
will be losing their own money - 
so - 
now in accordance with their philosophy - 
it is every banker for himself - 
and this could make for interesting times.

Peace and love,
Bruce
DawnSayer@webpal.org