Roubini On 2013's "Global Perfect Storm" And Greedy Bankers "Hanging In The Streets"

by Tyler Durden

In an extended interview with Bloomberg TV, Nouriel Roubini lives up to his doom-saying reputation and goes where few have as he opines on Lieborgate that: "bankers are greedy and have been for 1000 years" and "nothing is going to change" unless there are criminal sanctions; to which he follows up - briefly silencing the interviewer, "If some people end up in jail, maybe that will teach a lesson to somebody - or somebody will hang in the streets". The professor goes on to note that the EU "summit was a failure" since markets were expecting much more and warns that without full debt mutualization, debt monetization by the ECB, or a quadrupling of the EFSF/ESM 'bazooka'; Italian and Spanish spreads will continue to blow out day after day - leading to a crisis "not in six months but in two weeks". The only entity capable of stopping this is the ECB which needs to do outright unsterilized monetization in unlimited amounts which is 'politically incorrect' to talk about and claimed to be constitutionally illegal. 2013 will be a very difficult year to find shelter as policy-makers ability to kick-the-can runs out of steam as he sees the possibility of a 'Global Perfect Storm' of a euro-zone collapse, a US double-dip, a China & EM hard-landing, and a war in the Middle East.

Dr. Doom is back.

On Lieborgate:

Nothing has changed since the financial crisis. The incentives of the banks is to cheat - doing things that are either illegal or immoral. The only way to avoid that is to break up these financial supermarkets. There are no chinese walls and massive conflicts of interest.

On Greed:

Bankers are greedy - they have been for 1000 years.

On Sanctions:

There should be criminal sanctions. Noone has gone to jail since the global financial crisis. The banks do things that are illegal and at best they get a slapped with a fine. If some people end up in jail, maybe that will teach a lesson to somebody - or somebody will hang in the streets.
On TBTF banks:

There are more conflicts of interest today than four years ago. The banks that were too big to fail and now they are even bigger. Things are worse - not better.

On The EU Summit:

The summit was a failure. The markets were expecting much more.

Either you have debt mutualization (to reduce the spread), or you have debt monetization by the ECB, or the bazooka of the EFSF/ESM has to be quadrupled - otherwise the spreads on Italy and Spain are going to blow up day after day. Otherwise you will have another bigger crisis not in six months from now but in the next two weeks.

On The ECB saving the world:

The only entity capable of stopping this is the ECB which needs to do outright unsterilized monetization in unlimited amounts which is 'politically incorrect' to talk about and claimed to be constutionally illegal.

On Debt mutualization:

It is not just Germany that is resistant but other core nations including The Netherlands, Austria, and Finland. Finland doesn't even want to accept the recent indirect mutualization of the summit liabilities (of the EFSF/ESM).

On kicking the can:

By 2013, the ability of policy makers to kick the can down the road is going to run out of steam, and in the euro zone the slow motion train wreck will become a fast motion train wreck. The US seems close to stall-speed and an economic recession. The landing of China is becoming harder and EM nations (and BRICs) are sharply slowing down. And finally the potential for war between Israel, the US, and Iran - which will double oil prices overnight.

On 2013 being worse than 2008:

Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent - they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!

WATCH INTERVIEW

Pinching, purification and finding The Bridge to Total Freedom: Inside a very sinister induction at the Scientology HQ

* Members are checked if they are 'Clear' - which costs £82,000 to achieve
* Cameras and audio monitor Clearwater site to keep a check on followers
* Newcomers must undergo 'purification of toxins' which involves sweating out in a sauna

By Kerry Hiatt

I'd been pinched – hard – in some kind of strange lie-detector test and seen rooms where people went to be ‘purified’.

I’d spent an hour subjected to a gruelling and invasive ‘personality’ test and revealed my deepest inner thoughts as if hypnotised.

I’d also been invited to cross the Bridge To Total Freedom – but, in a panic, instead I found myself running away from Scientology as fast as I could – after just a day as a guest of the controversial religion.

look back on my visit last week to Scientology’s Florida headquarters  to celebrate July 4 as one of the most unsettling experiences of my life, and yet it all started so innocently... 

The invitation from the Scientologists had suggested we celebrate Independence Day at ‘the Friendliest Place in the Whole World’. Why should I refuse? The event sounded fun. There would be a barbecue, pool games, live music, a petting zoo and fireworks – just like other celebrations across America.

However, there was a hint that this party would be different. The invitation also said: ‘Get briefed on Scientology’s exponential expansion across the globe, our penetrating 4th Dynamic Dissemination Campaigns and a full view to our future.’

It had been sent to a close relative of mine who had briefly worked for Scientology almost a decade ago, inviting him to the Florida town of Clearwater, Scientology’s spiritual headquarters – where Scientologists own more than 200 shops, restaurants, hotels, banks and small businesses.

Invasive: The new Super Power Building of the Scientologists in Clearwater Florida

Almost 9,000 members live and work here, alongside non-Scientologists. They run schools, day-care centres and a drug-rehabilitation clinic.

Given that Katie Holmes had reportedly just ended her marriage amid fears Tom Cruise planned to send their daughter Suri to Clearwater – known to Scientologists as ‘Land Flag Base’ – my curiosity was piqued and we decided to go along.

Bizarrely, the invitation did not mention times or venues. We called into the opulent Fort Harrison Hotel – owned by Scientologists – to ask for directions. A security guard stopped us. We showed him the invitation and my relative explained that he had previously been a Scientology staff member and still received event invitations via email.

‘Name?’ the guard asked my relative, striding to a computer. He tapped it in and the screen filled with information. Our information. My new home address was there. How did they have such personal details and why was this data accessible on a hotel lobby computer?
The guard looked at the screen and raised an eyebrow. ‘You’re Clear?’

‘Clear’ is one of the very highest levels within Scientology. The status had either been conferred on my relative without his knowledge, or there was a mix-up in the system. The cost of reaching this level is estimated at $128,000 (about £82,000) and Clear members are among the church’s most trusted.

‘It says you’re Clear,’ the guard repeated before giving us directions to the Sandcastle Spiritual Retreat, where the party was being held. We’d passed the first hurdle.

Mysterious: It's anyone's guess what this room would be used for - but no doubt it would be difficult to find out from the Scientologists

Scientology symbols are everywhere in Clearwater; on plaques, in paving stones, and engraved into the architecture. Security cameras are on all Scientology properties and even hidden in the shrubbery. Every move and, no doubt conversation, can be monitored. It feels incredibly sinister.

The town is dominated by the Church’s £57 million Super Power Building which will, eventually, be a centre for learning. Construction paper covers doors and windows so I couldn’t see what was inside and no one could tell me when it would open.

The Sandcastle – another Scientologist-owned hotel – was a ten-minute walk. There was live music and a bouncy castle in the grounds, red, white and blue balloons tied to the patio furniture and smoke rising from the barbecue. Families wandered around in bathing suits. I relaxed.

But again, the second we entered the lobby, we were interrogated by  a guard. Who had sent the event invitation? Where were we from? Eventually, another computer was consulted.

‘Ah, you’re Clear,’ the receptionist smiled. We purchased our day tickets and made our way out to the swimming pool. Children laughed and splashed all around us.

Later, sitting in the shade, I turned to my relative and asked whether he had seen the bizarre series of posters – featuring, among others, John Travolta and Kirstie Alley promoting Scientology movies –  that lined the Spiritual Retreat’s lobby walls.

He stared at me in dismay and it was only then that I noticed a small camera and audio device  poking out of a bush close to my chair. I felt panic.

Strange: Presumably the changing rooms for the saunas, where you would be expected to clear your body from 'toxins'

Had they heard me mocking the posters? ‘Why don’t we get out of this sun and watch a movie?’ he said.

While my companion organised a film screening, I explored. Just off the lobby was a large gift shop and cafe. There were stacks of merchandise featuring L. Ron Hubbard,  Scientology’s founder: books, films, pads and pens.

One wall was dedicated entirely to brightly coloured vitamin-pill bottles. ‘The vitamins are for use during the purification process,’ it was explained by an older lady who had approached me.

‘When we start services, it’s important to rid our bodies of our former life’s toxins, whether it be from  pesticides, alcohol or drug use.

‘You can see the rooms just down the hall where we spend several hours a day during purification.’
I went to see the ‘purification rooms’ – which were nothing more than a small gym and sauna.

I retraced my steps to find my relative waiting, about to be subjected to a two-hour DVD celebrating L. Ron Hubbard’s life.

‘I understand you’re new,’ a Scientologist said to me. ‘I’ll take you to be tested and assessed.’
The testing centre was a short walk away and I was placed in the care of a young woman around my own age.

At the centre, after a short DVD introduction to Scientology, I was hooked up to the infamous ‘e-meter’, an electronic device used during ‘auditing’. The e-meter is supposed to indicate whether a person has been cleared of the spiritual impediment of past experiences.

Another world: The inside of the Super Power Building looks more like something out of a spacecraft

To illustrate how I was holding on to bad experiences, I was pinched and told to recall the pinch over  and over again. Instead, to see what would happen, I silently recalled scenes from The Sound Of Music. Unsurprisingly, the e-meter did what was expected and I was told I was carrying painful memories that were holding me back in life.

What did she recommend? ‘A  personality test. You must answer a series of questions before I can assess what steps you need to take.’

I spent the next hour under observation by Sea Org members – elite Scientologists – while I answered hundreds of questions such as ‘Do you smile much?’ and ‘Does life seem vague and unreal to you?

The test results were analysed by computer – yet more data to be stored away, no doubt – and I was told that I’d tested as extremely nervous and irresponsible. ‘Are you nervous?’ the woman asked. ‘Do you take too much on in life and feel as though you can’t cope?’

I’m usually a private person but I opened up by talking about my occasional feelings of inadequacy and my need to strive for perfection.

Why was I telling her things, I wondered? I remembered reading that many Sea Org members use hypnosis techniques when communicating. I didn’t believe I’d been hypnotised but I’d certainly said much more than I’d intended.

‘You’re an extremely smart cookie who could move up The Bridge very quickly,’ the woman said.
‘The Bridge To Total Freedom’  is the training process by which Scientologists try to reach the state of being ‘Clear’. They can then move on to higher levels.

‘I’d like to start you on the Hubbard Qualified Scientologist and Dianetics Book Courses,’ she said.
‘You could finish those in a matter of weeks. Each would cost just $60.’

I was led into a classroom filled with people studying. ‘You will study here for a few hours per day. We have lots of different study rooms in this building, including ones specifically for children.’
‘How old are children when they start services?’ I asked.

‘They start as soon as they can read and write.’ I thought of Katie Holmes and Suri.

‘You need to begin your purification process, too. That ranges between $3,000 and $5,000 and you’ll need to spend several hours a day sweating out the toxins of your life while adhering to a strict vitamin regime. You can start that today.’

Things seemed to be moving far too quickly. Surely she didn’t expect me to sign up for these things now?

‘Well, actually I’d like to have my relative look over your course recommendations and see what he thinks, if that’s OK?’ I said.

‘That’s fine. Give me your cell phone number so I can find you during the fireworks.’

Suddenly everything seemed to be a demand, the atmosphere had changed. I gave a false phone number, promised to meet her and then bolted.

Back at the Spiritual Retreat, I found my companion. It was already dark. Suddenly, I longed to go home. As the fireworks exploded, we were already on our way out of Clearwater, checking periodically to see if we were being followed. Why I thought we might be, I can’t explain.

I’m already receiving emails inviting me back for more special events but I won’t be returning.
In fact, I will never set foot in a Scientology-owned building again.

U.S. too weak to wage war against Iran: Washington ambassador

TEHRAN – U.S. Ambassador to Switzerland Donald Beyer has said that given the severe economic crisis in the United States the country’s military option against Tehran is beyond the realms of possibility.
 
The U.S. overall debt has exceeded $16 trillion and the country’s unemployment rate stands at 8.2 percent, Beyer said, according to Press TV.
 
The low-spending level in the U.S. budget over the past two years is unprecedented, the American envoy said, adding that there is a tacit consensus among Democrats and Republicans that the country’s military budget needs to be reduced.

With 900 military bases abroad, the U.S. has the highest military expenditure in the world, however the matter is no longer acceptable, he noted.
 
Under the prevailing circumstances, no one considers war with Iran as an option, Beyer stated.

The United States and the Zionist regime have frequently threatened threatened to use military force against Iran if Tehran does not stop its nuclear program.
 
As a signatory to the nuclear non-proliferation regime Iran is legally entitled to develop nuclear technology for peaceful purposes.

Clinton: Syria on brink of catastrophe as rebels advance. The region in danger

DEBKAfile Special Report

“There is still a chance to save the Syrian state from a catastrophic assault that would be very dangerous not only to Syria, but to the region,” said US Secretary of State Hillary Clinton in Tokyo, Sunday, July 8. She did not elaborate, but stressed earlier, “… the opposition is getting more effective in defense of themselves and going on the offensive against the Syrian military.”

debkafile’s military sources note that her over-the-top language comes at a pivotal moment in the Syrian conflict: The rebels are winning more and more territory and not only encircling Damascus but fighting inside the capital. To save itself, the Assad regime which still controls the army outside Damascus may in desperation open up its arsenals and deploy weapons of mass destruction in a bid to drive off the rebels while also spreading the flames to other parts of the region, including Israel.

Persian Gulf sources reported Sunday that inside the capital, the Syrian army no longer moves troops in military convoys for fear of rebel attack. They now travel in unmarked civilian vehicles. Some officers prefer to stay on base for fear of assassination or kidnap on their way home.

Clinton did not explain how the rebels were suddenly able in the last few days to develop their ubiquitous capabilities, rising numbers and military organization - or where they procured weapons for their wholesale offensive against the Syrian army.

According to debkafile’s intelligence and military sources, Turkey, Saudi Arabia and Qatar have substantially stepped up the flow of munitions to the rebels. They are reaching combatants inside Syria as well as the trainees at Turkish military facilities.

Their numbers have, furthermore, risen to 50,000 armed men who are efficiently organized in 17 brigades. Fighting inside the country are 260 military units, each consisting of one or two battalions, which mostly range from 1,000-1,500 men - depending on the arena. Some are brigades of 3,000 men.

By the first week of July, the rebel army had put in place an efficient logistical system:

1. The Free Syrian Army had been able to establish a geographical presence in all of Syria’s provinces, barring the minority regions (Kurds and Druzes) which are outside the conflict, and the pro-regime Alawite region.

2.  A regional operational command was working in all those provinces (260). It was equipped with hi-tech communications connecting the provinces and linked to the FSA’s high command in Turkey.

3.  A well-organized arms smuggling ring was transferring weapons from one command to another as required for local attacks on Syrian military and security forces. This pipeline is fed by Turkish, Saudi and Qatari suppliers via Jordan, Iraq, Lebanon, and Turkey..

4.  A foreign “military adviser” is posted at each provincial command center. They are usually special forces experts mainly from the British, French, Turkish, Saudi and Qatari armies.

Up until last month, the rebels were fighting primarily to sever a strategic strip of land from Idlib in the north to Deraa in the south in order to tie down the regime in Damascus and its Allawite loyalist forces in the west and center and cut it off from the rest of the country. 

This goal has now been abandoned. Today, the anti-Assad forces are concentrating on a single objective: The regime’s overthrow.

Lucky Number 7

The Nexus 7, the first tablet to wear Google’s Nexus brand, sets a new standard for smaller slates, proving that just because it isn’t as big as Apple’s iPad doesn’t mean it can’t be just as useful, as fast, or as fun. If you’ve been on the fence about Android, or tablets in general, this is the tablet you’ve been waiting for.

While the Nexus 7 isn’t a full-on iPad-killer, it far out-classes anything else offered in the 7-inch category, and most 10-inch tablets too. The Nexus 7 does this by offering smartly designed, powerful hardware and the best Android tablet experience to date. For those who only use their gadgets to surf the web, check e-mail, play games and update their social media feeds, the Nexus 7 might be an even better choice than an iPad, given how much easier it is to carry around.

But the feature that will probably be the most enticing to consumers is the price. The Nexus 7 sells for $200 with 8GB of storage. That’s the same price as the Amazon Kindle Fire and Barnes & Noble’s Nook Tablet at the same storage capacity. If you want a bit more room to download HD movies, music, games and apps, you can get the 16GB version for $250. At these prices, the Nexus 7 is frankly a steal when you compare it to what else is out there at the same cost.

The 1280×800 IPS touchscreen is beautiful. It’s the best display I’ve seen on a 7-inch tablet, and almost as good as the Asus Transformer Pad Infinity and the third-generation iPad. It’s not quite Retina display quality, but with a pixel density of 216ppi, it’s very close. Colors are balanced without being over-saturated, a common issue on many mobile devices nowadays, particularly those from Samsung.

Also absent are any software performance problems. Where the Fire and Nook suffer from unresponsiveness, slow animations and stuttering screens, the Nexus 7 screams. In fact, Google’s tablet responds as quickly and scrolls as smoothly as just about any tablet I’ve seen, no matter the size. It feels as fast as Asus’ larger Transformer tablets, and it performs as smoothly as the iPad, even when playing high definition games such as ShadowGun or playing back HD movies.

Basically, the Nexus 7 is a beast. Navigating around Android 4.1 Jelly Bean (yes, this is the first Jelly Bean tablet) is super clean. There’s no hesitation on the part of the Nexus 7 when loading magazines, books, apps, video, games, music or web pages.

This can be attributed to Nvidia’s 1.2GHz Tegra 3 quad-core processor — yep, this is the first quad-core 7-inch tablet, too. Alongside that is a 12-core Nvidia GPU and 1GB of RAM. The only noticeable delay comes when you first turn on the Nexus 7. There’s a lag of a few seconds while your content loads into the interactive home screen widgets pre-installed by Google.

The widgets show you what content — books, music, magazines, movies and TV shows — is available in the Google Play store for you to consume, via either streaming or downloading.

These widgets make extensive use of cover art, so they are colorful and attractive. They’re easy to use, expanding and contracting as you cycle through the various options. Most importantly, they reduce a lot of the friction around finding stuff in Google Play, both for content you’ve already purchased, as well as enticing new options. The widgets are very much “in your face,” and they clearly suggest that Google intends to be your go-to destination for buying, renting and streaming digital media.

The Fire and the Nook — the Nexus 7′s primary competitors, which also follow the “device as content portal” philosophy — also offer an array of entertainment options on their home screens, but Google’s arrangement is far prettier to look and less intrusive. Amazon Fire’s shows a cludgy carousel of content, and even that’s better than the random assortment of book covers found on the Nook’s home screen.

These Google Play widgets come installed by default on every Nexus 7, but you can easily remove them and use a fully customized Android home screen of your own design. If you’re not into buying content from Google, you can download Amazon’s apps and get your stuff there. You can still get Netflix, or Hulu for video. Rdio, Mog, Spotify, Pandora and other music streaming services are there, too. This isn’t a user experience that forces you to buy all your content from one storefront.

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