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Archive for December 22nd, 2011

Steorn Drops Four Bombshell Documents Validating Orbo

Posted by Admin on December 22, 2011

http://pesn.com/2011/09/14/9501914_Steorn_Drops_Four_Bombshell_Documents_Validating_Orbo/

The Dublin based, Irish free energy company Steorn, has allowed PESN to view and report on four documents written by third party scientists and engineers that appear to validate the Orbo overunity technology.

by Hank Mills
for Pure Energy Systems News

PESN has been given the opportunity by Sean McCarthy, the CEO of Steorn, to review four documents that provide confirmation of their overunity magnetic technology, named Orbo. The first three documents cover tests performed on permanent magnet based systems, and the final document discusses a test of a solid state Orbo in a calorimeter. The significance of these documents is that they seem to validate Steorn’s technology, and prove the Orbo technology works as Steorn has claimed.

Orbo’s Back Story 

Steorn is the Irish based company that in August of 2006 announced — via a full page advertisement in The Economist — they had developed a technology that offered free, clean, and constant energy. Around this same time, they opened a public forum (now closed) on their website, on which the CEO of the company, Sean McCarthy, frequently posted and contributed to discussions. This public forum evolved, and lead to the creation of a private forum for those willing to sign non-disclosure agreements. This private forum eventually became what is today called the “Steorn Knowledge Development Base” or SKDB.

Between 2006 and present day, Steorn has been rapidly developing their technology, which is all based on magnetism. Originally, in 2006, their technology utilized only permanent magnets interacting with other magnets in very specific ways. These original configurations utilized the concept of magnetic viscosity (the delay of a magnetic material to move on the BH curve or respond magnetically, when exposed to the field of another magnet) to produce gains or losses of energy. In a rotary system utilizing such a setup, if the rotor moved in one direction there would be a loss of energy, and if it moved in the other direction there would be a gain of energy. Over the course of time, Steorn enhanced their permanent-magnet-only configurations to include the use of “soft” (not having a permanent magnetic field of their own) magnetic materials — such as ferrite — and geometric relationships that allowed for greater amounts of OU. As their configurations evolved, so did their understanding of what was taking place to produce the gains/losses of energy. They came to the realization that the manipulation of the BH curve was at the heart of all their configurations.

At some point Steorn developed a design for an electric pulse motor — named E-Orbo – that did not produce back EMF (also known as counter EMF), and hence produced overunity gains of energy. Back EMF is the enemy of free energy in electric motors, because it is the signature of energy transfer between the circuit that powers the electromagnets (input) that are pulsed, and the rotor (output). If you can avoid producing back EMF, you simply will not be transferring energy from the input to the output. The concept is that the torque gained by the rotor will be thermodynamically free. Hence, the efficiency of such a setup will be infinite, since none of the input is actually consumed.

During late 2009 and early 2010, Steorn held a series of demonstrations of the E-Orbo at the Waterways Center in Dublin, Ireland. These demonstrations were streamed live onto the internet, and were posted to YouTube http://www.youtube.com/user/SteornOfficial . With high end oscilloscopes, current probes, inductance meters, and other equipment, Steorn was able to clearly show the E-Orbo systems present were producing overunity, and not producing back EMF (within the measurement capability of the equipment present). In fact, in addition to producing a gain of energy in the form of torque on the rotor, the coils being pulsed experienced an “induction gain.” Many individuals replicated the E-Orbo, and posted videos of their systems on the internet. In the recent past, the patent for E-Orbo has been published. It documents the system down to the smallest detail.

Steorn is first and foremost an intellectual property company that desires to accumulate a stock of patented, novel technologies they can license to developers. Their primary goal is not to develop products themselves, but to allow their licensees to do so. This drive to accumulate as much intellectual property as possible, is probably what drove them to pursue a solid state (no moving parts) version of their Orbo technology. The following description of their solid state technology was provided on a previous version of their website.

SolidState Orbo is the latest physical implementation of the Orbo technology platform. Solid State has numerous advantages over previous implementations. The fact that the Solid State version has no moving parts lowers the costs and reduces the time-frame for developers wishing to replicate the core effect. Testing is greatly simplified too. The only test equipment required is a simple digital oscilloscope.Solid State Orbo gains energy via control of a material’s inductance and domain rotation. As with all previous implementations of Orbo, these material permeability effects are fundamental to the production of an energy gain.

Although Solid State Orbo is in the early stages of development, rapid progress is being made with regards to optimisation. For this reason, it forms the basis of the Steorn Knowledge Development Base.

The development of the solid state Orbo technology seems to be their current focus. A solid state technology that can produce overunity gains of energy would be a huge achievement. Once hitting the marketplace, such a technology would have the potential to advance as rapidly as integrated circuit chips did in the 1990’s.

Awesome Scoop for PESN

After hearing very little from Steorn for quite a while, an email was sent to Sean McCarthy requesting an update on the status of their company. He very promptly (hours later) replied to the email, and offered PESN a great opportunity to review four papers — written by third party scientists and engineers — about the Orbo technology. The condition that came with the offer was that the papers themselves could not be posted, and the authors names could not be revealed. Also, Steorn would have right to review the article before it was published, which is a common courtesy we offer to many of the inventors and companies we compose feature articles about. Very quickly, we took him up on the offer!

Shortly after reviewing the four papers, their significance became obvious. They are all written by third parties outside of Steorn, who indicate that Steorn’s claims are valid. To be specific, three of the papers address permanent magnet configurations, and the final paper covers a solid state configuration tested in a calorimeter. It should be noted that Steorn has previously tested the E-Orbo in a calorimeter of their own design, and published the positive results on their website.

The remaining portion of this article will be divided into four parts, each part covering one of the four papers. In each part, we will share as much information as we can from the specific paper — while carefully avoiding content that could be considered too proprietary.

Paper #1 – Overunity Only Gets Better With Age

This fairly short paper is the oldest of the four (written in 2006), but verifies that early on, Steorn had third parties replicating, and hence validating, their technology. The author is a highly credible engineer and scientist who holds multiple advanced degrees. With degrees in physics and engineering, R&D (research and development) experience, and expertise in magnetism, he would seem like an ideal individual to test and validate Steorn’s claims about the Orbo technology.

The topic of the paper is a test of an early configuration that was performed at Steorn’s offices. The setup seems to be composed of a “main” wheel with a magnet attached to it, and a secondary, smaller wheel that also holds a magnet. One of the magnets would be set at an angle to the opposite magnet, on the other wheel. During each test, either the main wheel or the small wheel would rotate (the other being in a fixed or stationary position), and the magnets attached to each wheel would interact with each other. The torque of the wheel in motion would be measured with a torque meter, and the data would be analyzed. From this analysis, any anomalous torque in the system would be apparent.

To prepare for the test, the torque meter for each wheel was properly calibrated, and the friction and the electronic offset of each torque meter were determined. This information was used to correct the raw data that would come from each torque meter.

Multiple tests were performed in which one wheel (either the main wheel or small wheel) was fixed and the other was allowed to rotate. Also, the angle of the magnets were changed and then tested. After the data was corrected and analyzed, the conclusion was a gain of energy of .99 mill-joules or 6.2% of the total energy could be obtained in the experiment.

The author of the report states,

“The background friction cannot explain such a large unbalance. The calibration of the torque meter also rules out any experimental error associated with the readings. It is not clear what the source of this net energy [is], and further investigation is required to find a physical explanation for this phenomenon.”

This document clearly indicates that even Steorn’s earliest permanent magnetic configurations could produce gains of energy (in this case torque on a wheel), that could be detected by professionals with high quality, testing equipment. The fact a scientist and engineer of the caliber that wrote this paper would report such an anomalous gain of energy is a boost for Steorn’s credibility.

Document #2 – Real Men Love Torque Curves

(Editors Note: We have discovered this document is actually posted on Steorn’s website. It is the only one of the four documents that appears to be publicly available.)

This long and very detailed document, composed in 2008, was written by a consulting engineer, John A.M. Rice, who went to Steorn’s offices to perform a test of a permanent magnet configuration. In the document, the engineer specifically states his role, which was three fold.

- From an engineering and technical perspective, to formally observe a series of tests which aim to support the above-mentioned claim.

- To examine the test methods, equipment and procedures, with particular respect to their suitability, accuracy, and performance.

- To observe, verify, and report on specific tests carried out in support of the claim in the undersigned’s presence.

In the paper, the engineer specifically details the setup, all the components used, the testing equipment used, and the experiment to be performed. He goes on to describe how the equipment was calibrated, and all possible variables (such as bend in the rotor shaft, friction in the system, ovality of the wheel, the linearity of the data from torque meters, and possible interference from the Earth’s magnetic field) were measured and accounted for. All of this setup and preliminary work was vital to ensure the raw data could be appropriately corrected as necessary, so the results of the testing would be valid. The results of the testing in the form of many torque curves (graphs of the torque on the rotor over a 360 degree rotation) are included in the document.

The basic setup was a rotor (connected to a torque meter), with a stator. The rotor could be “stepped” (moved a tiny fraction of a degree at a time) repeatedly for “static” testing, or allowed to rotate continually for 360 degrees or more, never stopping during the range of degrees tested, for “dynamic” testing. Both the rotor and stationary stator could be fitted with magnets (neodymium in this case) and/or rods of soft ferrite. Multiple tests were performed (both static and dynamic) of various magnetic configurations. As an example, in one test the rotor held a rod of soft ferrite, with a neodymium magnet backing it in a configuration that “biased” the ferrite (as explained in a paper previously available on Steorn’s public website). The permanent magnet and biased ferrite interacted with a permanent magnet attached to the stator.

Over a 360 degree rotation there was a gain of energy, which the author reported with the following statement…

“In the test context distance involves a 360 degree rotation of the rig rotor. By integrating, i.e. summation, of the torque profile through a full revolution of the rotor, the associated energy can be calculated. This facility was setup in the test IE equipment.

“A zero energy gain applied to 4.2.10.5 (b) i.e. ferrite removed, but neo magnet only in rotor. Conversely, a net energy GAIN (through a 360 degree rotation) is evident for 4.2.10.5 (b) i.e. ferrite included in rotor. This latter result is the key outcome of the tests.”

This report also offered a very upbeat discussion of the test results.

DISCUSSION OF TEST RESULTS V. OBJECTIVE:Recapping on this short program of tests, the fundamental questions were:

(i) Is the test equipment appropriate and suitable for the purpose — YES.

(ii) Is the particular test rig, and its component parts, controls and IT systems utilized in a manner which delivers accurate, consistent and repeatable test results — YES.

(iii) Are the applied methods and procedures, as observed during the tests, objective and pertinent — YES.

(iv) Do the test results provide clear and explicit support of the claim? – YES.

So in short, when it comes to Steorn’s permanent magnet based Orbo technology, this author’s answer was, “Yes! Yes! Yes! Yes!”

It sounds like a pretty good endorsement to me!

Document #3 – I’ll Do It Better The Second Time Around

The author of this third paper — from 2009 — starts off by stating that he thinks Steorn may have “really stumbled across an experimental magnetic anomaly”, because Steorn’s test data (he references various test data provided by Steorn) seems to confirm a theoretical anomaly he has discovered, through his own calculations.

In the paper he elaborates on his theoretical anomaly that would be produced by a specific arrangement of a neodymium magnet on a rotor (or a soft ferrite biased by a neodymium magnet) interacting with a stator magnet, at a certain angle to the rotor. He states that the gain of energy in the setup would be, according to Steorn, due to specific conditions of “asymmetry and nonlinearity.” However, he adds that according to his theoretical anomaly, it is due to a change in anisotropic asymmetry that can apparently produce a gain of energy.&^&

He makes it clear in the paper that his analysis of Steorn’s data and his calculations do not prove that the theory of conservation of energy is being violated. However, he also states there is the chance that additional research may explain why it is not possible to produce energy from the magnetic effects, or it could indicate “unknown physics might reveal the impossible.”

A few additional bits of information he offers are as follows.

- The variables in the system (airgap, amount of biasing, and stator angle) must all be optimized to produce an obviously detectable gain of energy. For example, a change in the strength of the biasing of the soft ferrite or the angle of the neodymium stator magnet requires the other parameter to be altered. This is why it can be so difficult to detect the effect.

“There exists an optimized bias value for a fixed stator angle and also an optimized angle for a fixed bias value for which the effect has maxima. This together with the general smallness explains why it is so difficult to demonstrate the experimental anomaly!”

- The test data the author was given was not obtained in such a way to maximize the gain of energy, but to show the “importance of conditions.”

- The author details in a chart how both asymmetry and nonlinearity must be present for the Steorn effect to appear. For example, in a setup with an unbiased rotor magnet and a symmetric magnetic field produced by the stator magnet, there is no gain of energy. With a biased rotor magnet and an asymmetric magnetic field produced by the stator magnet, there is a gain of energy.

This report was not an absolute confirmation of the Steorn technology (the author makes this clear), but shows that highly credible scientists and engineers can see how the Orbo technology may work to produce gains of energy.

Document #4 – “It’s getting hot in here, turn off that Orbo!”

The fourth report that we were allowed to examine is unique from the others in that it is about a solid state version of Steorn’s technology. It is also the most recent of the documents, being written in March, 2011.

A solid state Orbo offers the potential of having no moving parts, having no need for bearings (as in permanent manget (PM) or E-Orbo configurations), being simpler to build, and potentially being simpler to test. Other advantages of solid state Orbo include fewer parts to wear out, and perhaps more potential to evolve quickly — in a similar manner to the way computers evolved during the past twenty years.

In this paper the author describes a very simple configuration that involves a coil wrapped around a nickel core (that is both magnetic and conductive) acting as an inductor. The coil and core is placed in a calorimeter composed of a vacuum chamber. Two thermocouples measure the temperature of the coil itself, and the temperature of the air in the room. A metered power supply provides the input power to the coil, and an oscilloscope monitors the current, voltage, and can also calculate total input power by using a math function of the scope.

The purpose of the test is to determine if the coil fed with a quantity of AC power, can produce more heat than the same coil fed with the same quantity of DC power. In the paper, the formula needed to calculate the total AC power is presented. The AC input and DC input is configured to be as identical as possible. Actually, the power input during the AC run was .9 (point nine) watts, and in the DC run it was 1 (one) watt. The fact that the input power during the AC run was slightly less than in the DC run actually biases the test against the AC run. This makes the results of the test even more significant.

In the first test, 1 watt of DC power is fed into the coil wound around the nickel core. The temperature of the coil increases until it reaches an equilibrium point of 36.1 degrees. This is the point at which the power lost by the coil via heat dissipation matches the electrical input power. Even if the input power stayed on for hours longer, the temperature of the coil would not increase above this temperature.

In the second test, .9 watts is fed into the same coil wound around the same exact nickel core. Obviously, this test took place a period of time after the first one, after the temperature of the coil has dropped back to its original value. The result of AC being fed into the coil is that it rises to an equilibrium temperature of 41.1 degrees. This means that in the AC test, the temperature of the coil reached a temperature five degrees higher than in the DC test.

The higher equilibrium temperature obtained when the coil was powered with AC, indicates an anomalous gain of energy. The gain of energy is unexplainable, because the input power in both tests were almost identical — actually slightly less when AC was utilized. As the paper continues, the author indicates that resistive heating cannot be the case for the increased temperature in the AC test run.

Here is the conclusion found at the end of the paper.

“The extra heating effect under the application of an AC signal is not explained simply by the transfer of input power to the coil. Consideration of the energy input to the system does not account for the energy output — as evidenced by the steady state temperature; there is an extra effect which needs to be isolated and identified.

“This investigation has not been able to suggest a reason for the energy output from the AC case. While it has been demonstrated and verified, and the DC case shows resistive heating as expected, there is no such simple explanation for the behavior of the coil under AC heating.”

The conclusion must be that this is an energy output which is higher than would be expected from the power input, and caused by the response of the coil to the alternating signal.”

It seems likely that this “extra effect” is part of Steorn’s magnetic overunity effect that allows for the production of free energy. After many months of hearing little about Steorn’s progress developing the Orbo technology, it is refreshing to read a report that demonstrates a clear, simple, and obvious gain of energy — in this case, in the form of heat.

A Breakthrough for the Free Energy Community

Although the amount of free energy produced in the fourth paper mentioned above is not huge, it seems to be well documented by a professional. The point of the experiment was not to produce large amounts of energy, but to document and prove an overunity magnetic effect. The test seems to have satisfied that goal. Scaled up and fully developed, this configuration might be capable of producing much greater amounts of excess energy.

One interesting thing to note is the experiment seems so simple it makes me think it could be fairly easily replicated. Of course Steorn may not be ready to share the additional information that would be useful for a replication, but if Steorn decided to even partially open source this technology (for individuals outside of Steorn to replicate) PESN would be eager to assist such an effort.

The first three papers documenting gains of energy from permanent magnet systems are also impressive. They clearly show that multiple third parties have tested the Orbo technology, and have demonstrated that it works as claimed.

In my opinion, these documents add even more evidence — in addition to the successful demonstrations of the E-Orbo at the Waterways Center — to the case that Steorn has developed multiple breakthrough technologies.

When the world catches up to what Steorn has accomplished, a rapid scientific and technological revolution may take place. The fact that free energy can be harnessed from magnetism (in a variety of configurations) will shake the scientific establishment to the core. This small company which has been attacked by skeptics and belittled by naysayers may just end up being able to tell the world…

“I told you so!”

The next step for Steorn may be when a client licenses one of their technologies and produces a working product.

PESN would like to thank Sean McCarthy for providing us with the four documents to review, and allow us to report on them.

# # #

This story is also published at BeforeItsNews.

What You Can Do

  1. Pass this on to your friends and favorite news sources.
  2. Get involved in the replication process.
  3. We at PES Network are in a pinch right now.  Donations would be greatly appreciated.
  4. Subscribe to our newsletter to stay abreast of the latest, greatest developments in the free energy sector.
  5. Let professionals in the renewable energy sector know about the promise of this technology.

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Mega Fail: 17 Signs That The European Financial System Is Heading For An Implosion Of Historic Proportions

Posted by Admin on December 22, 2011

http://www.pakalertpress.com/2011/12/14/mega-fail-17-signs-that-the-european-financial-system-is-heading-for-an-implosion-of-historic-proportions/

Posted on  on December 14, 2011 // Leave Your Comment

The Economic Collapse

What happens when you attempt a cold shutdown of one of the biggest debt spirals that the world has ever seen?  Well, we are about to find out.  The politicians in Europe have decided that they are going to “take their medicine” and put strict limits on budget deficits.  They have also decided that the European Central Bank is not going to engage in reckless money printing to “paper over” the debts of troubled nations.  This may all sound wonderful to many of you, but the reality is that there is always a tremendous amount of pain whenever a massive debt spiral is interrupted.  Just look at what happened to Greece.  Greece was forced to raise taxes and implement brutal austerity measures.  That caused the economy to slow down and tax revenues to decline and so government debt figures did not improve as much as anticipated.  So Greece was forced to implement even more brutal austerity measures.  Well, that caused the economy to slow down even more and tax revenues declined again.  In Greece this cycle has been repeated several times and now Greece is experiencing a full-blown economic depression.  100,000 businesses have closed and a third of the population is living in poverty.  But now Germany and France intend to impose the “Greek solution” on the rest of Europe.  This is going to create the conditions needed for a “perfect storm” to develop and it means that the European financial system is heading for an implosion of historic proportions.

The easiest way to deal with a debt spiral is to let it keep going and going.  That is what the United States has done.  Sure, “kicking the can down the road” makes the crisis much worse in the long run, but bringing the pain into the present is not a lot of fun either.

Europe has decided to do something that is unprecedented in the post-World War II era.  They have decided to put very strict limits on budget deficits and to impose tough sanctions on any nations that break the rules.  They have also decided that they are not going to allow the European Central Bank to fund the debts of troubled nations with reckless money printing.

Without a doubt, this is a German solution for a German-dominated Europe.  Germany does not want to pay for the debt mistakes of other EU nations, and so they are shoving bitter austerity down the throats of those that have gotten into too much debt.

But this solution is not going to be implemented without a massive amount of pain.

In fact, this solution is going to make a massive financial collapse much more likely.  The following are 17 signs that the European financial system is heading for an implosion of historic proportions….

#1 As noted above, when you reduce government spending you also slow down the economy.  We have already seen what brutal austerity has done to Greece – 100,000 businesses have shut down, a third of the population is living in poverty and there is rioting in the streets.  Now that brand of brutal austerity is going to be imposed in almost every single nation in Europe.

#2 As the economy slows down in Europe, unemployment will rise.  There are already 10 different European nations that have an “official” unemployment rate of over 10 percent and the next recession has not even officially started yet.

#3 Before it is all said and done, the EU nations that are drowning in debt will likely need trillions of euros in bailout money just to survive.  But at this point Germany and the other wealthy nations of northern Europe are sick and tired of bailouts and do not plan to hand over trillions of euros.

#4 The European Central Bank could theoretically print up trillions of euros and buy up massive amounts of European sovereign debt, but this would go against existing treaties and most of the major politicians in Europe are steadfastly against this right now.  But without such intervention it is hard to see how the ECB will be able to keep bond yields from absolutely skyrocketing for long.  In fact, without massive ECB intervention it is hard to see how the eurozone is going to be able to stay together at all.  Graeme Leach, the chief economist at the Institute of Directors, said the following recently….

“Unless the ECB begins to operate as a sovereign lender of last resort function, with massive purchases of eurozone public debt, the inexorable logic is that the eurozone will break up.”

#5 European leaders are hoping that the new treaty that was just agreed to will be ratified by the end of the summer.  In reality, it will probably take much longer than that.  German Chancellor Angela Merkel has made it clear that the solution to this debt crisis is going to take a long time to implement….

“It’s a process, and this process will take years.”

Unfortunately, Europe does not have years.  Europe is rapidly running out of time.  A massive financial crisis is steamrolling right at them and they need solutions right now.

#6 Sadly, the cold, hard reality of the matter is that none of the fundamental problems that Europe is facing were fixed by this recent “agreement” as Ambrose Evans-Pritchard recently noted in one of his columns….

There is no shared debt issuance, no fiscal transfers, no move to an EU Treasury, no banking licence for the ESM rescue fund, and no change in the mandate of the European Central Bank.

In short, there is no breakthrough of any kind that will convince Asian investors that this monetary union has viable governance or even a future.

Germany has kept the focus exclusively on fiscal deficits even though everybody must understand by now that this crisis was not caused by fiscal deficits (except in the case of Greece). Spain and Ireland were in surplus, and Italy had a primary surplus.

#7 Nobody wants to lend to European banks right now.  Everyone knows that there are dozens of European banks in danger of failing, and nobody wants to throw any more money into those black holes.  The U.S.Federal Reserve and the European Central Bank have been lending them money, but a lot of European banks are already starting to run out of “acceptable forms of collateral” for those loans as one Australian news source recently explained….

“If anyone thinks things are getting better, they simply don’t understand how severe the problems are,” a London executive at a global bank said. “A major bank could fail within weeks.”

Others said many continental banks, including French, Italian and Spanish lenders, were close to running out of the acceptable forms of collateral, such as US Treasury bonds, that could be used to finance short-term loans.

Some have been forced to lend out their gold reserves to maintain access to US dollar funding.

So will the U.S. Federal Reserve and the European Central Bank keep lending them money once they are out of acceptable collateral?

If not, we could start to see banks fail in rapid succession.

Charles Wyplosz, a professor of international economics at Geneva’s Graduate Institute, is absolutely certainthat we are going to see some major European banks collapse….

“Banks will collapse, including possibly a number of French banks that are very exposed to Greece, Portugal, Italy and Spain.”

#8 Not only does nobody want to lend money to them, major banks all over Europe are also dramatically cutting back on lending to consumers and businesses as they attempt to meet new capital-adequacy requirements by next June.

According to renowned financial journalistAmbrose Evans-Pritchard, European banks need to reduce the amount of lending on their books by about 7 trillion dollars in order to get down to safe levels….

Europe’s banks face a $7 trillion lending contraction to bring their balance sheets in line with the US and Japan, threatening to trap the region in a credit crunch and chronic depression for a decade.

When nobody wants to lend to the banks, and when the banks severely cut back on lending to others, that is called a “credit crunch”.  In such an environment, it is incredibly difficult to avoid a major recession.

#9 European banks are absolutely overloaded with “toxic assets” that they are desperate to get rid of.  Just as we saw with U.S. banks back in 2008, major European banks are busy trying to unload mountains of worthless assets that have a book value of trillions of euros.  Unfortunately for the banks, virtually nobodywants to buy them.

#10 European bond yields are still incredibly high even though the European Central Bank has spent over 274 billion dollars buying up European government bonds.

Up until now, the European Central Bank has been taking money out of the system (by taking deposits or by selling assets for example) whenever it injects new money into the system by buying bonds.  That makes this different from the quantitative easing that the U.S. Federal Reserve has done.  But at some point the European Central Bank is going to run out of ways to take money out of the system, and when that happens either the Germans will have to allow the ECB to print money out of thin air to buy bonds with or we will finally see the market determine the true value of European government bonds.

#11 Bond yields are going to become even more important in 2012, because huge mountains of European sovereign debt are scheduled to be rolled over next year.  For example, Italy must roll over approximately 20 percent of its entire sovereign debt during 2012.

#12 Once the new treaty is ratified, eurozone governments will lose the power to respond to a major recession by dramatically increasing government spending.  So if the governments of Europe cannot spend more money in response to the coming financial crisis, and if the ECB cannot print more money in response to the coming financial crisis, then what is going to keep the coming recession from turning into a full-blown depression?

#13 Credit rating agencies are warning that more credit downgrades may be coming in Europe. For example, Moody’s recently stated the following….

“While our central scenario remains that the euro area will be preserved without further widespread defaults, shocks likely to materialise even under this ‘positive’ scenario carry negative credit and rating implications in the coming months. And the longer the incremental approach to policy persists, the greater the likelihood of more severe scenarios, including those involving multiple defaults by euro area countries and those additionally involving exits from the euro area.”

#14 S&P has put 15 members of the eurozone (including Germany) on review for a possible credit downgrade.

#15 The stock prices of many major European banks are in the process of collapsing.  If you doubt this, just check out the charts in this article.

#16 Bank runs have begun in some parts of Europe.  For example, a recent article posted on Yahoo Newsdescribed what has been going on in Latvia….

Latvia’s largest bank scrambled Monday to head off a run among depositors who were gripped by rumours of the bank’s imminent ruin.

Weekend rumours that Swedbank was facing legal and liquidity problems in Estonia and Sweden sent thousands of Latvians to bank machines on Sunday, with some lines reaching as many as 50 people.

The Greek banking system is literally on the verge of collapse.  According to a recent Der Spiegel article, the run on Greek banks is rapidly accelerating….

He means that the outflow of funds from Greek bank accounts has been accelerating rapidly. At the start of 2010, savings and time deposits held by private households in Greece totalled €237.7 billion — by the end of 2011, they had fallen by €49 billion. Since then, the decline has been gaining momentum. Savings fell by a further €5.4 billion in September and by an estimated €8.5 billion in October — the biggest monthly outflow of funds since the start of the debt crisis in late 2009.

#17 There are already signs that European economic activisty (as well as global economic activity) is really starting to slow down.  Just consider the following statistics from a recent article by Stephen Lendman….

In November, French business confidence fell for the eighth consecutive month. In October, Japanese machinery orders dropped 6.9%, following an 8.2% plunge in September.

South Africa just reported a 5.6% drop in manufacturing activity. Britain recorded a 0.7% decline. China’s October exports fell 1.7% after dropping 3.8% in September.

Korea’s exports are down three consecutive months. Singapore’s were off in September and October. Indonesia’s plunged 8.5% in October after slipping 2% in September. India’s imploded 18.3% after being flat in September.

Are you starting to get the picture?

Europe is in a massive amount of trouble.

The equation is simple….

Brutal austerity + toxic levels of government debt + rising bond yields + a lack of confidence in the financial system + banks that are massively overleveraged + a massive credit crunch = A financial implosion of historic proportions

Unless something truly dramatic happens, the economy of Europe is a dead duck.

There is no way that Europe is going to be able to substantially reduce the flow of money coming from national governments and substantially reduce the flow of money coming from the banks and still be able to avoid a major recession.

Look, I want it to be very clear that I am in no way advocating government debt in this article.  It is just that under the debt-based monetary paradigm that we are all operating under, there is no way that you can dramatically reduce government spending without experiencing a whole lot of pain.

An economic “perfect storm” is developing in Europe.  All of the things that need to happen for a major recession to occur are falling into place.

So does anyone out there disagree with me?  Does anyone think that Europe is going to be just fine?

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50 Economic Numbers From 2011 That Are Almost Too Crazy To Believe

Posted by Admin on December 22, 2011

http://www.pakalertpress.com/2011/12/16/50-economic-numbers-from-2011-that-are-almost-too-crazy-to-believe/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pakalert+%28Pak+Alert+Press%29

Posted on  on December 16, 2011 // 1 Comment

The Economic Collapse

Even though most Americans have become very frustrated with this economy, the reality is that the vast majority of them still have no idea just how bad our economic declinehas been or how much trouble we are going to be in if we don’t make dramatic changes immediately.  If we do not educate the American people about how deathly ill the U.S. economy has become, then they will just keep falling for the same old lies that our politicians keep telling them.  Just “tweaking” things here and there is not going to fix this economy.  We truly do need a fundamental change in direction.  America is consuming far more wealth than it is producing and our debt is absolutely exploding.  If we stay on this current path, an economic collapse is inevitable.  Hopefully the crazy economic numbers from 2011 that I have included in this article will be shocking enough to wake some people up.

At this time of the year, a lot of families get together, and in most homes the conversation usually gets around to politics at some point.  Hopefully many of you will use the list below as a tool to help you share the reality of the U.S. economic crisis with your family and friends.  If we all work together, hopefully we can get millions of people to wake up and realize that “business as usual” will result in a national economic apocalypse.

The following are 50 economic numbers from 2011 that are almost too crazy to believe….

#1 A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty.

#2 Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.

#3 If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official”unemployment rate put out by the U.S. government would be up to 11 percent.

#4 The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.

#5 One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.

#6 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.

#7 Since December 2007, median household income in the United States has declined by a total of 6.8%once you account for inflation.

#8 According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.

#9 A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.

#10 According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.

#11 Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.

#12 Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job.  In July, only 81.2 percent of men in that age group had a job.

#13 One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.

#14 The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.

#15 According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.

#16 As the economy has slowed down, so has the number of marriages.  According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married.  Back in 1960, 72 percent of all U.S. adults were married.

#17 The U.S. Postal Service has lost more than 5 billion dollars over the past year.

#18 In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.

#19 Nevada has had the highest foreclosure rate in the nation for 59 months in a row.

#20 If you can believe it, the median price of a home in Detroit is now just $6000.

#21 According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant.  That figure is 63 percent larger than it was just ten years ago.

#22 New home construction in the United States is on pace to set a brand new all-time record low in 2011.

#23 As I have written about previously, 19 percent of all American men between the ages of 25 and 34 are now living with their parents.

#24 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.

#25 According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980.  Today they account for approximately 16.3%.

#26 One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.

#27 If you can believe it, one out of every seven Americans has at least 10 credit cards.

#28 The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.

#29 It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.

#30 The retirement crisis in the United States just continues to get worse.  According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.

#31 Today, one out of every six elderly Americans lives below the federal poverty line.

#32 According to a study that was just released, CEO pay at America’s biggest companies rose by 36.5% in just one recent 12 month period.

#33 Today, the “too big to fail” banks are larger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.

#34 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.

#35 According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.

#36 If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.

#37 A higher percentage of Americans is living in extreme poverty (6.7%) than has ever been measured before.

#38 Child homelessness in the United States is now 33 percent higher than it was back in 2007.

#39 Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.

#40 Sadly, child poverty is absolutely exploding all over America.  According to the National Center for Children in Poverty, 36.4% of all children that live in Philadelphia are living in poverty, 40.1% of all children that live in Atlanta are living in poverty, 52.6% of all children that live in Cleveland are living in poverty and 53.6% of all children that live in Detroit are living in poverty.

#41 Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.

#42 In 1980, government transfer payments accounted for just 11.7% of all income.  Today, government transfer payments account for more than 18 percent of all income.

#43 A staggering 48.5% of all Americans live in a household that receives some form of government benefits.  Back in 1983, that number was below 30 percent.

#44 Right now, spending by the federal government accounts for about 24 percent of GDP.  Back in 2001, it accounted for just 18 percent.

#45 For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars.  That was the third year in a row that our budget deficit has topped one trillion dollars.

#46 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.

#47 Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars.  When Barack Obama first took office the national debt was just 10.6 trillion dollars.

#48 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.

#49 The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.

#50 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

Of course the heart of our economic problems is the Federal Reserve.  The Federal Reserve is a perpetual debt machine, it has almost completely destroyed the value of the U.S. dollar and it has an absolutely nightmarish track record of incompetence.  If the Federal Reserve system had never been created, the U.S. economy would be in far better shape.  The federal government needs to shut down the Federal Reserve and start issuing currency that is not debt-based.  That would be a very significant step toward restoring prosperity to America.

During 2011 we made a lot of progress in educating the American people about our economic problems, but we still have a long way to go.

Hopefully next year more Americans than ever will wake up, because 2012 is going to represent a huge turning point for this country.

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Smart, Loving Universe or Mechanistic Physical Laws?: Interview

Posted by Admin on December 22, 2011

http://www.businessweek.com/news/2011-12-21/smart-loving-universe-or-mechanistic-physical-laws-interview.html

December 21, 2011, 7:02 PM EST

By Bloomberg

Interview by Zinta Lundborg

Dec. 20 (Bloomberg) — In “War of the Worldviews: Science vs. Spirituality,” Deepak Chopra and Leonard Mlodinow consider life’s big questions.

For Mlodinow, the infinite universe is governed by strict laws of nature that we are discovering.

Chopra says the universe has its source in a loving God or infinite consciousness.

A professor at the California Institute of Technology, Mlodinow has written on subjects ranging from randomness to hyperspace, including two books co-authored with Stephen Hawking. He’s also done scripts for “Star Trek: The Next Generation” and designed award-winning high-tech games.

An Indian medical doctor, Chopra runs a healing center in Carlsbad, California, focusing on the mind-body connection and has written more than 60 books that have been translated into 85 languages.

We spoke at Deepak HomeBase, a physical and virtual salon Chopra just opened in New York.

Lundborg: Deepak, in positing a conscious, benevolent universe, how do you know that you’re not engaging in magical thinking?

Chopra: I have a brain inside my skull that only senses things like pH and electrolytes and body temperature and has no exposure to the external world, yet it gives me the experience of color and sound and touch — that’s magical.

So all my thinking is magical.

Yesterday’s Magic

Lundborg: Science confronts the magical differently?

Mlodinow: Today’s technology was magic yesterday. What science will be able to create in hundreds of years would appear magical to us, just like our technology would appear magical to those in the past.

Lundborg: You have totally different world views: Science says the universe is going to end in equilibrium, cold and dark, while spirituality says the universe is evolving into greater complexity. So which is it?

Chopra: There is an omnipresence and omnipotence and omniscience to the cosmos, and it is very ordered, intelligent, and creative.

We are actually an activity of the universe and the universe is becoming self-conscious through the human nervous system.

Lundborg: Leonard, you disagree?

Nature’s Laws

Mlodinow: We look at what is, and when we look at nature we see there are certain laws that everything follows and those laws don’t include any kind of organizing principle or guiding force totaling creativity or imagination.

They’re purely mechanistic laws and the beauty of it is that wonderful conscious beings like us could appear based on those laws.

Lundborg: Where do you fundamentally agree?

Chopra: Where I fundamentally agree is that you can’t argue with scientific truth. But it’s only a partial truth because it’s all about what you observe there.

Science describes nature as it’s exposed to a human nervous system, to questions that human beings ask, and therefore ultimate truth remains elusive.

Mlodinow: I agree that the awesomeness of the universe drives you. If you’re a physicist, you’re looking at data concerning things like exploding stars and colliding black holes, and when you see the amazing power in the universe, it really is pretty mind boggling. Physicists are driven by a desire to understand it.

To me, there’s a separate ground for science and for spirituality or religion. What I do object to is when they say we can’t teach science in school. If you’ve got religious beliefs, that’s fine, but don’t go saying we have to change science.

At the very frontiers of science, there may be debates, but evolution is not one of them. Global warming is not one of them — there are not two sides to these issues.

Nuclear Weaponry

Lundborg: For you, Deepak, how does spirituality help?

Chopra: Science can give us better lives, okay, but science devoid of values will create nuclear weaponry, will destroy the planet, will cause global warming.

That, linked to very primitive identity, tribal identity, ethnic identity, fundamental religious identity, is everything that’s wrong with the world right now.

Spirituality provides some sense of connection to the cosmos. It’s the emergence of a morality that comes from that feeling of — whether we call it platonic values, truth, goodness, beauty, harmony, love, compassion, joy, equanimity, peace of mind — all of that is the essential religious experience.

Lundborg: Leonard’s mother said she couldn’t believe in God because of the Holocaust. Where does evil fit into these world views?

Chopra: Maximum diversity. The infinite contains everything; otherwise, it’s not infinite.

No child comes into the world evil, even Adolf Hitler. I think there was some abuse that happened in the very early stages of development that programmed the nervous system into that.

Blaming God

Mlodinow: I’m perturbed a little bit when I see people interviewed after a tragic event. They’ll say, “The tornado came and destroyed my house and killed my daughter, but at least God was watching over us so the rest of my kids survived.”

They’ll always take the death or the horrible thing as given. They credit God for what’s good.

When they get a horrible cancer, they thank God for healing it, but don’t blame God for giving them the cancer in the first place.

“War of the Worldviews” is published by Harmony (315 pages, $26). To buy this book in North America, click here.

(Zinta Lundborg is an editor for Muse, the arts and leisure section of Bloomberg News. The opinions expressed are her own. This interview was adapted from a longer conversation.)

–Editors: Manuela Hoelterhoff, Laurie Muchnick.

To contact the reporter on this story: Zinta Lundborg at zlundborg@bloomberg.net.

To contact the editor responsible for this story: Manuela Hoelterhoff at mhoelterhoff@bloomberg.net.

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