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Back in the early 1960s a dollar of new debt added almost a dollar to the nation’s output of goods and services. As more debt enters the system the productivity gained by new debt diminishes. This produced a path that was following a diminishing line targeting ZERO in the year 2015. This meant that we could expect that each new dollar of debt added in the year 2015 would add NOTHING to our productivity.

Then a funny thing happened along the way. Macroeconomic DEBT SATURATION occurred causing a phase transition with our debt relationship. This is because total income can no longer support total debt. In the third quarter of 2009 each dollar of debt added produced NEGATIVE 15 cents of productivity, and at the end of 2009, each dollar of new debt now SUBTRACTS 45 cents from GDP!

This is mathematical PROOF that debt saturation has occurred. Continuing to add debt into a saturated system, where all money is debt, leads only to future defaults and to higher unemployment.

This is the dilemma created by our top down debt backed money structure. Because all money is backed by a liability, and carries interest, it guarantees mathematically that there will be losers and that the system will eventually reach the natural limits, the ability of incomes to service debt.

Harmless amounts of radioactive carbon have been found in wines made from grapes harvested since the last atmospheric atomic bomb tests were carried out in the 1960s.

But the “bomb pulse” of radioactive carbon lingering in the alcohol of wines produced since could be a good thing for wine dealers and collectors.

Scientists have been able to pinpoint a wine’s vintage to within a year by analysing the levels of radioactive carbon in the wine, a technique they say could help detect fraudulent attempts to repackage cheap plonk as a high-end tipple.

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The wine industry has introduced special seals and labels in an attempt to frustrate fraudsters, but Jones believes analysing a wine’s bomb pulse may give people more confidence that they have not been conned.

Almost all the carbon dioxide in the atmosphere contains the stable carbon-12 form of the element. Each atom of carbon-12 has six neutrons and six protons in its nucleus. But atmospheric atomic bomb tests, which ended in 1963, released vast amounts of radioactive carbon-14 into the air. A carbon-14 atom has two extra neutrons.

When grapes grow on the vine, they absorb carbon dioxide, which contains both stable carbon and traces of radioactive carbon-14 left over from bomb tests, from the air. As time goes by, carbon dioxide emissions from fossil fuel burning dilutes the amount of carbon-14 in the atmosphere.

Speaking at the American Chemical Society annual meeting in San Francisco today, Jones said his team had been able to date wines by measuring the relative amounts of carbon-12 and carbon-14 in the alcohol produced from the grapes.

“The year that the grapes were grown fixes the age or vintage of the wine,” he added.

Earlier this month, Portugal passed an austerity budget aimed at cutting its budget deficit.

The downgrade heightened concerns about the health of some of Europe’s heavily indebted economies, forcing the euro lower against the dollar and the pound.

The euro fell by 1.34 cents, or 1%, against the dollar, to $1.3362.

Against the pound, it fell by half a penny to 89.325p.

The downgrade also sent major European stock markets into negative territory.

European impact

“A sizeable fiscal shock against a backdrop of relative macroeconomic and structural weaknesses has reduced Portugal’s creditworthiness,” Douglas Renwick of Fitch’s said.

Although the agency said Portugal’s austerity budget was “credible”, it said the government would need “to implement sizeable consolidation measures from next year”, as well as reverse stimulus measures this year, in order to get its debt levels under control.

The downgrade could mean Portugal has to pay higher yields on government bonds to attract investors, making it more expensive for the country to borrow money – even though other leading ratings agencies may not necessarily follow Fitch’s lead.

Analysts stressed the wider European impact the downgrade could have.

“The downgrade has more impact on the wider sovereign debt crisis, rather than on Portugal at the moment,” said Peter Chatwell at Credit Agricole.

There have been widespread concerns about the high levels of debt of a number of European countries, most notably Greece.

At the end of last year, Fitch and Standard & Poor’s, the second of the three major international credit ratings agencies, downgraded Greek government debt.

Retired Major General Robert Harding was nominated earlier this month to head the Transportation Security Administration after serving more than three decades in the military, including a stint as deputy to the Army’s chief of intelligence and director for operations in the Defense Intelligence Agency.

Aviation security has received heightened attention in recent months after a Nigerian man tried to blow up a U.S. commercial airliner flying from Amsterdam to Detroit last Christmas with a bomb hidden in his underwear.

Harding said that while the Israeli security system was smaller, it offered a blueprint for trying to thwart terrorism plots in the aviation system, which has remained a target for militant groups like al Qaeda.

“We should move even closer to an Israeli model where there’s more engagement with passengers,” Harding told the Senate Commerce Committee that is considering his nomination. “I think that increases the layers and pushes the layers out.”

That is bad news; worse news is that governments are shoveling money into the world banking system to finance the debt expansion. Following the great bank bailout of 2008, the global banking system is socialized de facto, shifting its resources towards government debt and away from private sector financing.

Governments averted a financial apocalypse in 2009 by bailing out the bankrupt banking system. But who will bail out the governments? The answer for the time being is that they will bail themselves out at the expense of the private economy. In the post-apocalyptic financial world, private banks have turned into flesh-eating zombies that cannibalize the private economy in order to finance government borrowing requirements not seen since World War II.

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Note that the central banks of the world have not increased their holdings of US government securities to a significant extent. Their net purchases are running at a modest $20 billion a month, or an annual rate of $240 billion.

The US Treasury has become dependent on global private banks. According to Treasury data, $108 billion of the $180 billion in net foreign purchases of US Treasury securities during the three months through January came from London and the Cayman Islands.

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Republican members of the House Ways and Means Committee, a panel that oversees taxes and health issues, also charged that IRS audits will likely increase if health care legislation is passed. They added the IRS will require up to $10 billion to administer the new program. They also claimed the IRS may need to hire 16,500 additional employees.

“This dangerously expands IRS authority,” said Representative David Camp, (R., Mich.), the ranking Republican on the Committee on Ways and Means. “Most Americans will find it shocking and troubling.”

Rep. Charles Boustany (R., La.) led the investigation into the effect of the health care legislation on IRS authority. “This is a vast expanse of power that the American people need to know about,” he said.

The proposal by Sen. Charles Schumer (D-New York) and Sen. Lindsay Graham (R-South Carolina) comes as the states are grappling to produce another national identification card at the behest of the Department of Homeland Security. Virtually none of the states are in compliance with this Real ID program — adopted in 2005 — requiring state motor vehicle bureaus to obtain and internally scan and store personal information like Social Security cards and birth certificates for a national database.

Now comes a bid for a second card.

Homeland Security officials pointed to the Sept. 11 hijackers’ ability to get driver’s licenses in Virginia using false information as justification for the proposed $24 billion Real ID program. Schumer and Graham point to illegal immigration as cause for their plan.

“We would require all U.S. citizens and legal immigrants who want jobs to obtain a high-tech, fraud-proof Social Security card. Each card’s unique biometric identifier would be stored only on the card; no government database would house everyone’s information,” they said. “The cards would not contain any private information, medical information or tracking devices. The card would be a high-tech version of the Social Security card that citizens already have.”

Jim Harper, director of information policy studies at the Cato Institute, suggests the plan would undoubtedly lead to a national database. He added that “there is no practical way of making a national identity document fraud-proof.”

What’s more, Richard Esguerra, the Electronic Frontier Foundation’s in-house activist, notes that a national ID card likely would expand from its stated purpose.

“Because of the ID card’s proposed universality, it will likely be requested and required by airlines, insurance agencies, health care providers, mortgage lenders, credit card companies, and so forth,” he said.

It represents the pinnacle of modern aviation security. Baggage is passed through giant, state-of-the-art machines, and travellers – both arriving and leaving – are frequently subjected to lengthy, personal and repetitive questioning by officials, on their ethnic background and that of any local acquaintances they may have made.

It is not at all uncommon for the mostly youthful immigration officers to wander off, passports and tickets in hand, ostensibly to consult with their seniors. Surrendering documents at check-in or at immigration has hitherto been considered a necessary evil for all those travelling in and out of Ben Gurion.

But the evidence that the Israeli state has been taking the information gleaned from these inspections to create cloned identities for its spies introduces a new level of risk to the experience.

The report by the UK’s Serious Organised Crime Agency (Soca) into the use of cloned British passports in the Dubai assassination makes clear their view that this is what happened as Britons travelled through the airport in the months and years before the plot was hatched to kill the Hamas commander Mahmoud al-Mabhouh.

The Soca report concluded that the passports must have been cloned at the airport or at other interfaces with Israeli officialdom, such as airline offices in other countries. There were no other links between the 12 individuals whose identities were stolen.

According to insiders, the language in the Soca report, produced after a four-week investigation, was “direct” and the findings unequivocal: the inquiry showed that the victims’ data was taken, stored and passed on when they handed their passports to Israeli officials or those linked to them.

“We cannot pin it on individuals, but the evidence draws us to the conclusion that the only place these passports could have been cloned is when they were inspected at the Israeli border or in other countries, where they were passed to Israelis,” said one source.