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November 15th, 2009

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November 15th, 2009

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October Earnings

November 15th, 2009

Earnings for October came to a total of $2339.18. This is yet another outstanding result. Thank you to all direct contributors and to patrons of Cryptogon affiliates.


Dele Ogun – Democracy Gone Wrong

November 15th, 2009

Part 1

Part 2


Netherlands to Tax Drivers by the Kilometer; GPS Trackers in Every Vehicle

November 15th, 2009

Via: AFP:

The Dutch government said Friday it wants to introduce a “green” road tax by the kilometre from 2012 aimed at cutting carbon dioxide emissions by 10 percent and halving congestion.

“Each vehicle will be equipped with a GPS device that tracks how many kilometres are driven and when and where. This data will be then be sent to a collection agency that will send out the bill,” the transport ministry said in a statement.

Ownership and sales taxes, about a quarter of the cost of a new car, will be scrapped and replaced by the “price per kilometre” system aimed at cutting the Netherlands’ carbon dioxide emissions by 10 percent.

“Traffic jams will be halved and it helps the environment,” the ministry said.

Dutch motorists driving a standard family saloon will be charged 3 euro cents per kilometre (seven US cents per mile) in 2012. That would increase to 6.7 cents (16 US cents per mile) in 2018, according to the proposed law.

Every vehicle type will have a base rate, which depends on its size, weight and carbon dioxide emissions.

Taxis, vehicles for the disabled, buses, motorcycles and classic cars will all be exempt.

“An alternative payment will be introduced for foreign vehicles,” the ministry statement added.

The Dutch cabinet approved the road tax bill on Friday. It will need the backing of parliament before it becomes law.


The Truth About Ikea

November 14th, 2009

Via: Independent:

The wholesome Scandinavian image of furniture and lifestyle giant Ikea has been rudely shaken by a new book which claims the company is hostile to foreign employees and uses Stasi-style secret police methods to spy on its thousands of staff worldwide.

The explosive charges are made by a former senior Ikea executive Johan Stenebo, a Swede who started working for the company at one of its German outlets outside Hamburg over 20 years ago and rose to a senior management position. He resigned last year.

His book, entitled Sanningen om Ikea (The Truth about Ikea), contains wide-ranging allegations about a company which has become a global household name. Justifying the book to Gemany’s Der Spiegel magazine, he said: “I did not want to go along with it any more, but I could not stay silent.”

Mr Stenebo claims that Ikea, which employs 135,000 staff in 44 countries, is run with an iron fist by founder Ingvar Kamprad and his two sons Mathias and Peter, who were promoted to top management five years ago.

He describes Ikea as “one of the most secretive companies in the world” and claims that senior management were expected to show fanatical loyalty and devotion to Mr Kamprad. “There was an unwritten law for Ikea upper management: loyalty to Ingvar unto death,” he writes.

He alleges that Ikea used methods normally associated with former Communist East Germany’s hated Stasi secret police to spy on its staff and keep them in line. He claims that a close-knit network of company informers kept Mr Kamprad constantly updated on personal gossip about employees and the prevailing atmosphere in each office.

Foreigners who work for Ikea have been referred to by Swedish executives as “niggers”, he writes, and have no chance of being promoted to senior positions. In fact, most of the top Ikea jobs, he claims, go to employees from the town of Älmhult, in the Samaland region of Sweden, where Mr Kamprad grew up. Mr Stenebo claims Ikea has elaborately manipulated the image of its 83-year-old founder, now the world’s fifth-richest man, portraying him as “an ascetic, slightly dim geriatric” with alcohol problems and dyslexia, and confecting for him a typical Ikea lifestyle of modest, affordable simplicity, with a Klippan range sofa and the bog-standard Billy bookcase.

In reality, he writes, these stories were made up by Mr Kamprad (who actually drove a Porsche), then disseminated by media which fell for their quaint charm. There was good business sense to the strategy, he says: the company’s homely image “helped to push down prices with suppliers”.

His book also alleges that the company makes claims to being an eco-friendly concern, while in reality its huge market share means that it can dictate the lowest prices to its suppliers. “The key to Ikea’s low prices is the supply of cheap raw materials,” Mr Stenebo writes. “Instead of using the best they use the cheapest.”

Mr Stenebo insists that he chose to write his open denunciation of Ikea after a furious row with Mr Kamprad’s son Peter. “Economic power means a responsibility towards people and the environment, but Peter does not understand that,” he claimed.

The book has attracted enormous media attention in Sweden, with its unprecedented attack on a national institution by one of its former senior executives. The last time the furniture giant came in for such negative publicity was more than a decade ago when Mr Kamprad senior was unmasked as having been a wartime member of a Swedish pro-Nazi organisation.

He managed to survive that stain on his reputation by publicly apologising and writing personally to all of Ikea’s Jewish staff. This time around, Ikea has dismissed the book as “the author’s personal opinion on Ikea and the Kamprad family. Ikea sees no reason to make a comment on someone’s personal view on the company.”

Yet despite Mr Stenebo’s destructive criticisms, it is clear he has not entirely escaped entanglement with the old man’s charisma. He has no doubt his denunciations have come to the attention of the man who matters. “Ingvar will be reading the book with his chameleon eyes,” he told Der Spiegel with an unmistakable note of pride. “He hates me and he loves me.”

Research Credit: ltcolonelnemo


Trade Deficit in U.S. Increases by Most Since 1999

November 13th, 2009

Via: Bloomberg:

The trade deficit in the U.S. widened in September by the most in a decade, reflecting rising demand for imported oil and automobiles as the economy rebounded from the worst recession since the 1930s.

The gap grew a larger-than-anticipated 18 percent to $36.5 billion, the highest level since January, from a revised $30.8 billion in August, the Commerce Department said today in Washington. Imports surged by the most in 16 years, swamping a gain in exports.


U.S. Posts $176.36 Billion Deficit for October

November 13th, 2009

Via: Wall Street Journal:

The federal government kicked off fiscal year 2010 by posting its widest-ever October budget deficit, the Treasury Department said Thursday.

The $176.36 billion gap is more than $20 billion wider than the shortfall recorded in October 2008, driven up by lower tax receipts, stimulus-related revenue reductions and consistently high government outlays.

Treasury’s monthly budget statement shows receipts were $135.33 billion in October, down 18% from a year earlier and at the lowest level since October 2002. Meanwhile, outlays were $311.69 billion, down 3% from a year earlier and at their second-highest monthly level on record.

The October deficit figure is wider than the Congressional Budget Office’s estimate for a $175 billion deficit in the month and wider than the $165.9 billion expected by analysts surveyed by Dow Jones Newswires.

The Treasury on Thursday also revised September’s deficit to a slightly narrower $46.57 billion, from a previously reported $46.61 billion. Even with the revision, the U.S. in fiscal year 2009 posted a record total budget deficit of near $1.4 trillion — three times its previous record.

At the equivalent of 9.9% of gross domestic product, the figure is the widest U.S. deficit as a share of GDP since 1945.

The staggering number has had U.S. Treasury Secretary Timothy Geithner pledging to rein in the deficit as the nation’s economy recovers.


Feds Move to Seize Four Mosques, Tower Allegedly Linked to Iran

November 13th, 2009

Via: AP:

Federal prosecutors took steps Thursday to seize four U.S. mosques and a Fifth Avenue skyscraper owned by a nonprofit Muslim organization long suspected of being secretly controlled by the Iranian government.

In what could prove to be one of the biggest counterterrorism seizures in U.S. history, prosecutors filed a civil complaint in federal court against the Alavi Foundation, seeking the forfeiture of more than $500 million in assets.

The assets include bank accounts; Islamic centers consisting of schools and mosques in New York City, Maryland, California and Houston; more than 100 acres in Virginia; and a 36-story glass office tower in New York.

Confiscating the properties would be a sharp blow against Iran, which has been accused by the U.S. government of bankrolling terrorism and trying to build a nuclear bomb.

A telephone call and e-mail to Iran’s U.N. Mission seeking comment were not immediately answered. Nor was a call to the Alavi Foundation.

It is extremely rare for U.S. law enforcement authorities to seize a house of worship, a step fraught with questions about the First Amendment right to freedom of religion.

The action against the Shiite Muslim mosques is sure to inflame relations between the U.S. government and American Muslims, many of whom are fearful of a backlash after last week’s Fort Hood shooting rampage, blamed on a Muslim American major.

The mosques and the skyscraper will remain open while the forfeiture case works its way through court in what could be a long process. What will happen to them if the government ultimately prevails is unclear. But the government typically sells properties it has seized through forfeiture, and the proceeds are sometimes distributed to crime victims.

Prosecutors said the Alavi Foundation managed the office tower on behalf of the Iranian government and, working with a front company known as Assa Corp., illegally funneled millions in rental income to Iran’s state-owned Bank Melli. Bank Melli has been accused by a U.S. Treasury official of providing support for Iran’s nuclear program, and it is illegal in the United States to do business with the bank.

The U.S. has long suspected the foundation was an arm of the Iranian government; a 97-page complaint details involvement in foundation business by several top Iranian officials, including the deputy prime minister and ambassadors to the United Nations.

“For two decades, the Alavi Foundation’s affairs have been directed by various Iranian officials, including Iranian ambassadors to the United Nations, in violation of a series of American laws,” U.S. Attorney Preet Bharara said in a statement.

There were no raids Thursday as part of the forfeiture action. The government is simply required to post notices of the civil complaint on the property.

As prosecutors outlined their allegations against Alavi, the Islamic centers and the schools they run carried on with normal activity. The mosques’ leaders had no immediate comment.


Questions on Gold

November 13th, 2009

Warning: This is not a recommendation to buy, sell or hold any financial instrument.

Some readers are asking for my thoughts on gold.

At this time, my analysis from October 29th remains current. I’ll quote the key sentences below:

The medium term picture on the dollar should concern dollar bears with shorter time horizons. Technically, the dollar started an uptrend in early 2008 that remains intact. Additionally, there is a lot of support below the current action on the dollar. I have indicated several of those supports with green lines.

While the dollar may continue lower, it would be an imprudent bet to fight those supports, from a short to medium term technical perspective.

Here’s an updated daily chart of the U.S. Dollar Index. Shorter term dollar bears and gold bulls, that upper channel line is your line in the sand.

U.S. Dollar Index, Daily Interval

U.S. Dollar Index, Daily Interval

Short to medium outlook dollar bears and gold bulls: Stay the course as long as the downtrending channel on the USDX remains intact. Keep in mind, however, that a move up and out of the downtrending channel on the USDX above could mean substantial pain in the weeks and months ahead for dollar bears and gold bulls.

Traders with longer term outlooks should just look away and ignore the howls and squeals about any dollar rally that materializes.

I’ll say it again: I’m in the process of accumulating U.S. Dollars to balance out my positions in anticipation of a dollar rally. Key word: balance. My goal is merely to remain flat to up a bit and I’ve been overweight things that rise in value when the dollar falls.

Do I see any fundamental reason for the dollar to rally?

Hell no. The fact that it’s viable at all is absurd from a fundamental perspective.

However, I never trade based on what I think I know about fundamentals, and past experience tells me not to fight multiple horizontal support lines near an all time low and an up trending support line all in the same price area. That’s just me. Your Magic 8 Ball and chicken entrails may vary.

Is it possible that the dollar could slice down and through all of that support and keep falling? Absolutely. Just keep an eye on that upper channel line.

For Technicians Only: Gold might be about to BARF.


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