Government should not be in the business of mandating personal choices and government should never be allowed to legislate choices which should be reserved for parents with regard to their children’s health and welfare. The parents are sovereign over the welfare of their children, not the state.
In the name of increasing the corporate bottom line, the government watchdog industries of the DEA and FDA, as well as the office of the President, have become the willing lap dogs for Big Pharma and this unholy alliance is serving to endanger our children.
Big Pharma has gone to great lengths to increase sales to the youth of America either through chemically castrating our children’s brains or by producing drugs with very serious side effects which serve to seriously degrade both the brain and the body. Our children are being systematically destroyed by the pharmaceutical industry.
The Ritalin Conspiracy
Let’s make up a brain disorder, which parallels normal restlessness of children and then transform a dangerous drug, methamphetamine, and get as many kids on the drug as possible. It is good work if you can find it and pharmaceutical companies like Merck and Eli Lilly are leading the way in medical fraud and in the name of record corporate profits
The use of Ritalin has become so rampant, that even the DEA has become alarmed by the tremendous increase in the prescribing of these drugs in recent years. Since 1990, prescriptions for methylphenidate have increased by 500%, while prescriptions for amphetamine for the same purpose have increased 400%. The American Pediatric Association claims Ritalin is over prescribed by 600%.
For well over a decade, many scientists have speculated that ADD drugs are dangerous and can cause serious injury and death. Etta Brown, a licensed educational psychologist and author of Learning Disabilities: Understanding the Problem and Managing the Challenges explained in response to her study that drugs like Ritalin actually destroy the neural function in children’s brains. As a result, children who have undergone treatment with Ritalin will actually have a much more difficult time processing information and learning new things. This kind of defeats the purpose of getting children to sit still in school while placed in a zombified state.
Brown further reported that Ritalin is responsible for the development of a permanent tic in the face, neck, and head of many of the children who have taken or are taking it. Ironically, Ritalin is responsible for causing far more serious neurological damage than the problems it is alleged to treat. Meta analyses studies over the years have revealed that while drugs like Ritalin visibly place children into a trance like state, these drugs destroy the vulnerable, delicate and developing nervous systems which can and does permanently cripple their ability to function as normal human beings.
The Gardasil Conspiracy
Last year a bill sponsored by Toni G. Atkins, D-San Diego passed into California state law which places every child in danger in California. Atkins bill begs the question of who has the ultimate authority of the welfare of our children. Is it the state or is it the parents? Well, if you live in California, the nanny state purports to have the final say. The Atkins bill makes it legal for a school district or a doctor to medicate or inoculate a child without parental notification.
In an era when Gardasil has resulted in needless tragedy for over 40,000 children who have been vaccinated by well intentioned doctors who are ignorant of the side effects, we are now witnessing states like California mandating the forced inoculation of young girls with Gardasil.
What the medical establishment is not telling you is that thousands of girls are having adverse reactions to the HPV Vaccines, some have even died -at last count, at least 103 lives have been lost to Gardasil. This is a brilliant strategy being invoked by California. Let’s kill the girls, thus preventing them from having sex, thus, preventing STD’s.
You remember MERCK don’t you? They were the creator of the wonder death drug, Vioxx. This is the same Merck, who only after intense pressure from the medical community and the media decided to pull the dangerous drug, Vioxx, from the market after an estimated 140,000 adverse reactions had already occurred. And the pulling of Vioxx occurred only after a safety trial was stopped because there was an undeniable and increased risk for serious cardiovascular dangers such as heart attacks and strokes from using the drug.
Merck has been no less reckless in their administration of Gardasil as they were with Vioxx. First and foremost, Merck and the Food and Drug Administration’s clinical trials have been called into question for blatant fraud committed during the required FDA testing period. Both the control group and the experimental group, in the clinical trials, were given the aluminum adjuvant contained in the Gardasil. Control group and experimental group comparisons are done to ensure public safety from adverse side effects as much as possible. In this case, it would have be standard practice to provide the control group with a saline solution instead of the aluminum adjuvant in order to determine the risk posed by the adjuvant given to the experimental group. In failing to follow these research norms, Merck and the FDA have endangered the public health.
These research protocols violate every known tenant to proper research; it represents an air of unprofessionalism, not to mention criminal fraud, which clearly demonstrates collusion to commit fraud against the general public on behalf of Merck as sponsored by the FDA. In fact, Judicial Watch was forced to file a lawsuit under the Public Records Act in order to obtain the obfuscated side effect results as the FDA tried to cover up their own complicity in this research fraud by refusing to release the relevant documents.
Gardasil is marketed as a vaccine that prevents cancer, but the drug has not been evaluated for the potential to cause cancer or genotoxicity. Gardasil is a prophylactic, preventative vaccine and is of absolutely no value in the treatment of a pre-existing HPV infection. It is neither a cancer vaccine nor a cure; yet, the public has been led to believe that this is the case. The New England Journal of Medicine found that there remains no conclusive proof that Gardasil altered the course of HPV-16 or HPV-18 infection for which the patient was symptomatic prior to the administration of the first dose. In other words, this is fraud in the first degree.
Gardasil is the most costly vaccine ever to be approved by the FDA. However, its long-term effectiveness is not known and several estimates state that Gardasil’s life as a vaccine could be only two to three years. This opens up the distinct possibility that a Gardasil vaccinated child will require several booster shots which will undoubtedly increase the bottom line for Merck, but the risk for side-effects among the vaccinated could increase exponentially with each successive vaccination.
The VAERS reports show that as many as eighteen people have died after receiving Gardasil. The VAERS reports document identifies 38 reports of Guillain-Barre Syndrome among juvenile females who previously received the Gardasil vaccine. Guillain-Barre Syndrome is a catastrophic illness that attacks the nervous system which can and often does result in paralysis. Ironically, Gardasil is being developed against only four types of HPV. However, there is over 100 strains of HPV, 30 of which are transmitted sexually. Just what could have Governor Brown and Atkins been thinking?
Do you not think that this is the first time that this kind of dangerous medical fraud has been and will be visited upon your children for profit and political career advancement? Think again! The American Academy of Pediatrics recommends that boys of the age of 11 to 12 years should be vaccinated with the vaccine against HPV with the Gardasil vaccination. Even my doctors are serving the Big Pharma agenda, as evidenced by the fact that my son’s former pediatrician relentlessly tried to give my then 11 year old son the Gardasil injection. When I presented the good doctor with some of the data contained in this report, he replied “your ideas are not contained within the mainstream of medicine.” Since when is scientific research required to reflect the mainstream of the Big Pharma agenda? The moral of this story is to fire your doctor and find a health care provider who is committed to the welfare of their patients.
The Teen Screen Conspiracy
On the surface, screening the mental health of children for suicidal tendencies is a noble idea worth pursuing. Yet, when the screening is mandated by the President of the United States and is done without the knowledge and consent of the parents of the children being tested, an eyebrow should be raised. When children, under this program can only be medicated with the most expensive psychiatric drugs which contain 2 to 20 times higher suicide rates and arecontraindicated for use by children, all of America should begin to dismantle this unholy marriage of the Police State and the pharmaceutical fraudsters.
There is an ongoing battle for the psychological health and welfare of America’s children and eventually all Americans, under the New Freedoms Commission (NFC), as it is the eventual intent to screen and treat, with mind numbing drug, all Americans for mental illness by using criteria designed to elicit false positives. The relatively new mind control programs have commenced with the intent of compelling the mental health testing of all 52 million school children and the 6.5 million adults who walk through doors of every school in America on any given weekday. Acting under the authority of the NFC, all 50 states are mandated to implement compulsory mental health screening. The screening exams are to be administered in kindergarten, fourth and ninth grade. The screening program requires no parental notification and carries the force of law and this program continues unabated to this day. As is the case with vaccinations, the diagnosis and treatment, under the mind control policies of the Bush and Obama administrations will eventually be universal because of an executive order signed by Bush upon taking office!
Teen Screen, created by Laurie Flynn, arose out of the expressed desire of the NFC to test all American school children for suicidal tendencies. There are several problems with this screening instrument. For example, the screening device has a high rate of false positives. The rigor (e.g., measure of reliability and validity, utilization of genuinely representative population samples used in the norming process) of the screening mechanics have also been called into question. Additionally, Teen Screen allows for the use of unsupervised nonprofessionals to both administer and interpret the screening instrument. In an effort to cover their malpractice behinds, Teen Screen is careful to state that the program is not a substitute for clinical evaluation, but they act as a substitute for clinical evaluation. Remember, freedom is slavery, war is peace, and being drugged on medication which will damage a developing brain is exciting in this version of pharmaceutical 1984.
Despite its self-proclaimed message that Teen Screen has a wonderful diagnostic tool from which to predict suicidal behavior resulting from depression, Teen Screen states that the instrument is not a diagnostic tool. If you had to reread the previous four sentences in order to try to make sense out Teen Screen’s, “doublespeak,” you are not alone. Although the diagnostic tool is not heralded as a clinical tool, the schools which use the Teen Screen tool can still label the child as being emotionally disturbed and this label can follow this child for the rest of their life. Further, school-initiated treatment protocols can be triggered as a result of the findings. Recent research demonstrates that Teen Screen is on the rise and is promoting the most dangerous psychotropic drugs. In fact, according the National Institute of Health, psychotropic drugs should only be given to children only under the most dire set of circumstances.
Teen Screen Penetration
Teen Screen is now in almost every state.
The diagnostic instrument devised by Teen Screen produced a false positive rate of 84% in comparison with other tried and tested diagnostic instruments. Here is an example of a typical Teen Screen diagnostic question:
Teen Screen Diagnostics
When at a party, have you ever felt lonely or misunderstood?
Of course the average person would answer in the affirmative. However, in Teen Screen speak, you would be diagnosed with social phobic disorder and possibly a mild case of depression. And what prize do children win when they volunteer to misdiagnosed 84% of the time? The win access to the world of psychotropic drugs in which even The National Institute of Health even states that the use of psychotropic drugs is contraindicated for young, developing minds and they do permanent damage. And just as devastating, when these children receive their false positive diagnosis, their ability to obtain health insurance down the road is severely impaired.
Teen Screen, just as it is with Gardasil, is a scam designed to get the children hooked on psychotropic drugs through the use of a bogus screening instrument and it was done without parental notification and permission in the same manner being implemented in California.
Everyone Has a Price
Undoubtedly, school districts will be provided incentives as they do in the Teen Screen scam as another Big Pharma giant, Eli Lilly, is attempting to entice every school district in the country to test pre-teens and teens for suicidal depression.
As was the case with Teen Screen, your children will be bribed with movie tickets and coupons for pizza in order to get them to line up for their Gardasil vaccination. And of course, as was the case with Governor Brown and Gardasil, the government lent their support to the TeenScreen effort as well when President George W. Bush issued an executive order which sanctioned this insanity. Bush, Brown and every other Gardasil endorsing politician drink from the same troth and your children need you to protect them from people and organizations such as these.
Unfortunately, Merck has its long financial arm in many state legislatures and soon every child in the country, both boys and girls, is going to be at risk thanks to this unholy partnership between the school districts, Merck and the politicians who are all too eager to curry favor from this pharmaceutical giant.
Everyone of these drugs has debilitating side effects on children’s brains and on their bodies
Your children are not the property of Eli Lilly, Merck, Governor Brown or any of the other political prostitutes. Your children look to you, their parents, to protect them from evil 1% such as the ones discussed here.
Occupy Big Pharma
Perhaps what we need to do in order to best protect our children is to begin an “Occupy Big Pharma” movement. Until that day arrives, and in the meantime, what will you do when the Gardasil fraud debuts in your community? I can unequivocally state that organizations like Teen Screen and the Big Pharma will never get their hands on my 12 year old son. Not now, not ever! Can you say the same for your child?
For the good of your children, distribute this article to your family, friends, neighbors, local school board members as well as your elected representatives. And at the end of the day, pray to almighty God that he will guard our children from the purveyors of Gardasil, Ritalin and the use of psychotropic drugs of Teen Screen.
Source: Dave Hodges - thecommonsenseshow.com
Here in Spokane, Washington, about 10:30 pm, two fresh chemtrails crisscrossed under the chin of the moon, creating a “skull and crossbones”—spectacular logo for chemtrailing. If only a skywriter had sprayed a headline to crown the scene, a certain motto…perhaps this line by Roger Waters from Pink Floyd’s The Wall:
“Mother should I trust the government?”
The government has been spraying chemtrails for years, heavier all the time, yet they call the whole chemtrail hullabaloo “conspiracy theory”. We don’t do Stratospheric Aerosol Geoengineering (SAG), they insist. Get over it, they’re just contrails.
So what about the Air Force training manual about chemtrails? 
Differences between contrails and chemtrails are dramatic.  And while all NATO countries are into chemtrailing, only Germany has admitted it—though they lie about what and why they are spraying.
Tacit justification for chemtrails is based on cooling Earth’s atmosphere by reflecting the sun’s energy. So what about nighttime chemtrails? The more you research chemtrail ingredients, the farther government designs blast beyond simple denial of spraying, into sinister crimes.
Perhaps a fair analogy of the simple denial: A federal agent is standing in front of you with a spray bottle, saying as he mists your face, “This is not happening. It’s conspiracy theory. Your face is not being misted. Trust me.” And there will always be people frightened by cognitive dissonance into convincing themselves that they are just getting sweaty…there’s a light drizzle…their face has reached the dew point….
Government by Contempt
Beneath the veil of sweet talk and tough love, utter contempt is the foundational sentiment Zionist-controlled politicians hold for the masses. Politicians not controlled by Zionists rarely get elected; those that stand up to the Israeli American Public Affairs Committee (AIPAC) are usually unseated by AIPAC-funded stooges. And Zionist-controlled mainstream media (ZMM) manages public perceptions with such mastery to even hypnotize the masses into believing they are coming up with their own ideas.
Not to say ZMM always lies—they tell a lot of truth, backwards. For independent thinkers, gleaning truth from ZMM is easy, simply reverse whatever they say. If ZMM declares peace, that means war. If they say, “terrorists” they mean Mossad/FBI/CIA patsies. ZMM “news” is all agenda; Zionist-occupied US government is all about elite power. Ultimately, there are no laws, only power.
“Let me issue and control a nation’s money and I care not who makes its laws.”
– Amschel Bauer Mayer Rothschild – 1838
It’s popular to say that the US is the world’s “Superpower”. But the more a person understands designs of power, the more likely they are to realize that when it comes to power, the US is a colony of Israel.
Rothschild Zionism, Rothschild-controlled central banks (in every nation on Earth but Cuba, North Korea, and Iran), the “Federal Reserve System”, the “City of London”—such is where dominant power resides, at least in terms of psychopathic contrivance in a system hideous in light of humanity’s potential for decency, capacity for…humanity. At the very least, humans could do better than relentlessly allowing psychopaths to rule. Pathocracy, rule by people born without a conscience, it’s rule by people whose veneration for human life is generally encompassed by their own skin. Humanity has had millennia to figure out how to keep psychopaths from power. Abject failure in that regard has built up a situation where humanity faces extinction—or at least we face the threat of humanity becoming extinct, but not humans.
A rare step in the right direction: Absolutely ban from positions of higher power anyone clearly pursuing power. Complicated challenge, sure, but at least psychopaths have very reliable markers.
Contempt for the masses runs so deep in the elite largely because of what we commoners allow the elite to get away with. Is there no false-flag “terrorist attack” Americans will not swallow? Everything from 9/11…to the Boston Marathon with amputee actors wearing blown-off-leg prostheses. And besides not being shy about displaying their contempt, the elite seem to revel in being above the “law”. “Too big to fail” has metastasized to include, “too big to prosecute”.
The death grip on humanity of Rothschild-controlled central banking makes the “New World Order” seem inevitable. Many people consider the Georgia Guidestones’ message to be the written-in-stone Ten Commandments of the New World Order. 
“Commandment” number one of the Geogia Guidestones:
“Maintain humanity under 500,000,000 in perpetual balance with nature”.
The inescapable question, or challenge, for the elite: How to exterminate over 90% of human population (roughly six billion people) without rendering Earth uninhabitable. The power elite’s death-and-destruction toolbox is loaded with such as Fukushima, nuclear war, climate disruption, full-spectrum pollution, GMOs, food additives, mass fluoridation, engineered diseases, vaccines…so many shock-and-awesome tools in just the toolbox top drawer. Chemtrail spraying is somewhat of a “Crescent Wrench”, a tool with enormous range of menace.
Researchers have identified many constituents of the witches’ brew routinely sprayed over us, a diabolical concoction containing:
Aluminum oxide particles, barium salts, barium titanates, ethylene dibromide, cadmium, methyl aluminum, desiccated human red blood cells, nano-aluminum-coated fiberglass, sub-micron particles (containing live biological matter), polymer fibers, unidentified bacteria, enterobacteria cloacal, enterobacteriaceae, mycoplasma, human white blood cells-A (restrictor enzyme used in research labs to snip and combine DNA), mold spores, bacilli and molds, yellow fungal mycotoxins, lead, mercury, nitrogen trifluoride, nickel, calcium, chromium, radioactive cesium, radioactive thorium, selenium, arsenic, titanium shards, silver, streptomyces, strontium, uranium….
In addition to adjustable menace, chemtrailing has apparently come up with its own signature disease. Morgellons. 
Zionist-occupied government is spending vast amounts of our money to spray us with witches’ brew, while the fed (Rothschild parasite disguised as part of the federal government) sprays the elite with fresh dollars charged to us at compound interest.
Natural predators take only what they need to survive, improving genetic integrity of their prey. Humanity’s psychopathic predators destroy what they need to survive.
Please consider the elite’s contempt for humanity in terms of what humanity might achieve if not being hounded by psychopaths. The elite subject humanity to continuous and vicious demonic predation, mutilation of mind, body and soul—then scorn humanity’s condition!
Doesn’t that seem…Satanic?
Some important questions during acceleration toward extinction of humanity, perhaps, along with apparent answers:
Are chemtrails being sprayed over us day and night? YES
Is chemtrailing considered conspiracy theory? YES
Is the very term conspiracy theory a premier psyop? YES
Do the masses have power the government/elite will do anything to keep from being focused—anything to keep public power from threatening elite power? YES
Do you trust the government? ____
In a 155-page report, four US nuclear experts have called upon the Obama administration to impose tougher economic sanctions against Iran and resort to overt operations through using warplanes and missiles on Iranian nuclear sites.
Apart from the fact that morbid mindset of this nature only helps fan up chaos and serves as an impetus to widespread pandemonium in the region, any mention of any such policy let alone an adoption of it will gradually terminate in an endless array of military legitimizations.
Co-authored by Mark Dubowitz, who runs Zionist-controlled Foundation for the Defense of Democracies (FDD) and David Albright, a physicist who heads the Institute for Science and International Security (ISIS) and who is responsible for concocting lies and myths about Iraq having weapons of mass destruction and drawing the country into an abysmal vortex of destruction and devastation, the report can be but seen in the light of yet another overtly brash attempt by the US to push ahead with further militarism in the Middle East.
Dubbed as ‘U.S. Nonproliferation Strategy for the Changing Middle East,’ the report falls short of mentioning any other Middle Eastern countries, which may be seeking a nuclear weapons program, and instead focuses heavily on the Islamic Republic of Iran. The authors of the conspiratorial report urge Washington to “undertake additional overt preparations for the use of warplanes and/or missiles to destroy Iran’s nuclear capabilities with high explosives” and “increase Iranian isolation, including through regime change in Syria and deepening Iran’s diplomatic isolation.”
Naturally, the words have been deliberately and carefully chosen in the report. By ‘overt preparations’, the authors explicitly admit that the US government has in the past used ‘covert operations’ as well i.e. assassinating Iranian nuclear scientists and infiltrating and disrupting the computer systems. Somewhere in the report, the authors unambiguously refer to Washington’s sabotage activities in Iran. They say, “Press reports indicate that sabotage has been used to slow the Iranian nuclear program, including through infiltration and disruption of procurement networks and cyberattacks designed to inflict physical damage to the program. Judicious use of this tool should be included in continued U.S. efforts to constrain the Iranian nuclear program.”
Iran will save itself, the report says, only if it accepts the terms set by the authors. In other words, Iran has to kowtow to the terms set by the report which are as follows:
1) Suspension by Iran of the following proliferation-sensitive nuclear activities: (a) all enrichment-related and reprocessing activities, including research and development, to be verified by the IAEA; and (b) work on all heavy water-related projects, including the construction of a research reactor moderated by heavy water, also to be verified by the IAEA;
2) Provision by Iran of such access and cooperation as the IAEA requests to be able to verify the suspensions and to resolve all outstanding issues, as identified in IAEA reports;
3) A full accounting and resolution of all outstanding questions about Iran’s past and any current (as of the time of agreement) nuclear weapons related activities;
4) Complete closure of the Fordow facility and any other deeply buried enrichment facility that is either complete or under construction; and
5) Iran’s binding agreement to intrusive and comprehensive inspections that are at a minimum as stringent as those outlined in the IAEA’s Additional.
If truth be told, these terms are nothing new and only reek of a Zionist influence contaminating the already decomposing American policy. On May 9, 2012, just ahead of the May 23 talks in Baghdad, where six world powers were slated to sit down with Iranian officials and resolve the so-called nuclear issue, Israeli Prime Minister Benjamin Netanyahu said the talks will be successful only if Iran agrees to “halt all uranium enrichment, ship its current stockpile of enriched uranium out of the country and dismantle an underground enrichment facility near the city of Qom (Fordow).” Interestingly, when the IAEA-Iran meeting took place in May, these three demands were exactly (but not coincidently) put on IAEA’s agenda and the Iranian side was demanded to abide by these if it sought any resolution of the issue.
What strikes the mind as reasonably acceptable is that the authors are no political well-wishers; rather, they are indeed so morbidly obsessed with paving the way for another ravaging war in the Middle East that they are trying to cook up another fairy tale as David Albright and his ‘company’ did in Iraq.
In point of fact, similar lies were told about Iraq before the US invaded the country. US intelligence agencies announced in 2003 that Iraq “could be planning a chemical or biological attack on American cities through the use of remote-controlled “drone” planes equipped with GPS tracking maps”. They even said that these “vehicles have already been, or could be, transported” inside the United States. Add to this a more blatant lie: Iraq could be ‘months away’ from building nuclear bomb. Analysts at the International Institute for Strategic Studies (IISS) said in 2002 that Saddam Hussein could be “months” away from assembling a nuclear bomb and has stockpiled possibly thousands of liters of deadly anthrax”.
Former US president George W. Bush who was extremely keen on launching a war came up with ‘new evidence’ which he said showed Iraq’s ‘continued appetite’ for nuclear bombs. His evidence: Iraq had tried to buy thousands of high-strength aluminum tubes which Bush said “were used to enrich uranium for a nuclear weapon”. Bush presented this as a document to the UN. However, UN weapons inspectors conducted investigations for weeks and were quite confident that the tubes were never meant to be used for enriching uranium (See Iraq, Lies, Cover-Ups, and Consequences By Rodney Stich p. 141).
The Iraq war was waged on the strength of a heap of lies disseminated by all and sundry in the US government and that which claimed the lives of over one million people. The bitter irony is that those who are responsible for playing havoc with the lives of a million people are not surprisingly fettered by shackles to await a sore chastisement as the essence of humanity necessitates it; instead, they are free and to crown it all, they are even allowed the latitude to continue with their myths and engage in yet another military mischief.
The U.S. Army Corps of Engineers plans to supervise construction of a five-story underground facility for an Israel Defense Forces complex, oddly named “Site 911,” at an Israeli Air Force base near Tel Aviv.
Expected to take more than two years to build, at a cost of up to $100 million, the facility is to have classrooms on Level 1, an auditorium on Level 3, a laboratory, shock-resistant doors, protection from nonionizing radiation and very tight security. Clearances will be required for all construction workers, guards will be at the fence and barriers will separate it from the rest of the base.
Only U.S. construction firms are being allowed to bid on the contract and proposals are due Dec. 3, according to the latest Corps of Engineers notice.
Site 911 is the latest in a long history of military construction projects the United States has undertaken for the IDF under the U.S. Foreign Military Sales program. The 1998 Wye River Memorandum between Israel and the Palestinian Authority has led to about $500 million in U.S. construction of military facilities for the Israelis, most of them initially in an undeveloped part of the Negev Desert. It was done to ensure there were bases to which IDF forces stationed in the West Bank could be redeployed.
As recorded in the Corps’ European District magazine, called Engineering in Europe, three bases were built to support 20,000 troops, and eventually the Israeli air force moved into the same area, creating Nevatim air base. A new runway, 2.5 miles long, was built there by the Corps along with about 100 new buildings and 10 miles of roads.
Over the years, the Corps has built underground hangers for Israeli fighter-bombers, facilities for handling nuclear weapons (though Israel does not admit having such weapons), command centers, training bases, intelligence facilities and simulators, according to Corps publications.
Within the past two years the Corps, which has three offices in Israel, completed a $30 million set of hangars at Nevatim, which the magazine describes as a “former small desert outpost that has grown to be one of the largest and most modern air bases in the country.” It has also supervised a $20 million project to build maintenance shops, hangars and headquarters to support Israel’s large Eitan unmanned aerial vehicle.
Site 911, which will be built at another base, appears to be one of the largest projects. Each of the first three underground floors is to be roughly 41,000 square feet, according to the Corps notice. The lower two floors are much smaller and hold equipment.
Security concerns are so great that non-Israeli employees hired by the builder can come only from “the U.S., Canada, Western Europe countries, Poland, Moldavia, Thailand, Philippines, Venezuela, Romania and China,” according to the Corps notice. “The employment of Palestinians is also forbidden,” it says.
Among other security rules: The site “shall have one gate only for both entering and exiting the site” and “no exit or entrance to the site shall be allowed during work hours except for supply trucks.” Guards will be Israeli citizens with experience in the Israeli air force. Also, “the collection of information of any type whatsoever related to base activities is prohibited.”
The well-known Israeli architectural firm listed on the plans, Ada Karmi-Melamede Architects, has paid attention to the aesthetics of the site design as well as the sensibilities of future employees. The site, for example, will be decorated with rocks chosen by the architect but purchased by the contractor. Three picnic tables are planned, according to the solicitation.
The Corps offered a lengthy description of the mezuzas the contractor is to provide “for each door or opening exclusive of toilets or shower rooms” in the Site 911 building. A mezuza (also spelled mezuzah) is a parchment which has been inscribed with Hebrew verses from the Torah, placed in a case and attached to a door frame of a Jewish family’s house as a sign of faith. Some interpret Jewish law as requiring — as in this case — that a mezuza be attached to every door in a house.
These mezuzas, notes the Corps, “shall be written in inerasable ink, on . . . uncoated leather parchment” and be handwritten by a scribe “holding a written authorization according to Jewish law.” The writing may be “Ashkenazik or Sepharadik” but “not a mixture” and “must be uniform.”
Also, “The Mezuzahs shall be proof-read by a computer at an authorized institution for Mezuzah inspection, as well as manually proof-read for the form of the letters by a proof-reader authorized by the Chief Rabbinate.” The mezuza shall be supplied with an aluminum housing with holes so it can be connected to the door frame or opening. Finally, “All Mezuzahs for the facility shall be affixed by the Base’s Rabbi or his appointed representative and not by the contractor staff.”
What’s the purpose of Site 911? I asked the Pentagon on Tuesday, and the Corps on Wednesday said that only an Israeli Defense Ministry spokesman could provide an answer.
This may be a trend-starter. The Corps is also seeking a contractor for another secret construction project in Israel in the $100 million range to awarded next summer. This one will involve “a complex facility with site development challenges” requiring services that include “electrical, communication, mechanical/
HVAC [heating, ventilation, air conditioning] and plumbing.” The U.S. contractor must have a U.S. secret or equivalent Israeli security clearance for the project, which is expected to take almost 21/2 years to complete.
That sounds like a secure command center.
The purpose of Site 911 is far less clear.
Source: Walter Pincus | TheWashingtonPost
The first ever lawsuit concerning risks of nanotechnology was filed in federal court last month when several groups jointly sued the US Food and Drug Administration for its lack of response to a 2006 petition demanding that products with nanomaterials be labeled and their affects tested for safety. [Image]
Led by the International Center for Technology Assessment (ICTA), plaintiffs also include Friends of the Earth, Food and Water Watch, the Center for Environmental Health, the ETC Group, and the Institute for Agricultural and Trade Policy (IATP).
“It is unacceptable that the FDA continues to allow unregulated and unlabeled nanomaterials to be used in products consumers use every day,” said Wenonah Hauter, executive director of Food & Water Watch. “It is past time for this agency to live up to its mission and protect public health by assessing the health and environmental risks of nanomaterials, and to require labeling so that consumers know where these new materials are being used.”
Based on the scientific literature so far, several hundred products should be recalled due to their toxicity to lab animals and bacteria. Much of the 2011 complaint argues that because nanomaterials are patented, and exhibit novel characteristics unique to their size, they clearly represent new substances requiring regulation and safety tests. Plaintiffs demand a recall on all such products until their safety is proven.
Consumer groups including some of the same plaintiffs in the current lawsuit also filed petitions urging nanotech regulation with the Environmental Protection Agency back in 2006 and 2008, reports the Chemical Regulation Reporter.
Nanotechnology is the science of manipulating materials on an atomic or molecular scale, measured in billionths of a meter. Nanotech-engineered materials (NEMs) are used in food, cosmetics (including toothpaste and sunscreen), drugs, fertilizers, and home cleaning products with little regulation in the U.S. They are found in ice cream and the coating sprayed on fruits and vegetables, and even line bottles and cans, reported Andrew Schneider in his 2010 exposé on the subject.
NEMs are also used in industry processes and military applications including drones, combat gear and miniature devices. The Dept. of Defense has spent billions on nanotech R&D. Per its 2007 report, nanotech is used in “chemical and biological warfare defense; high performance materials for platforms and weapons; unprecedented information technology [like smart clothes]; revolutionary energy and energetic materials; and uninhabited vehicles and miniature satellites.” (Also see the2011 National Nanotechnology Initiative Strategic Plan.)
In June 2011, both the FDA and the EPA issued draft guidelines on NEMs. Though nano-pesticides are already on the market, the EPA made its first approval last month. The Swiss firm, HeiQ, now sells its composite nanosilver and nano-silica for use in clothing (to reduce microbial odor) with EPA approval.
Upon publication of the FDA’s voluntary guidlines, the Alliance for Natural Healthimmediately demanded that nanomaterials be banned from organic certification, as they are in Canada.
The FDA has done nothing on NEM regulation since last June. Prior to that, the FDA absurdly denied that any nanofoods were being sold in the U.S.
“Not true, say some of the agency’s own safety experts, pointing to scientific studies published in food science journals, reports from foreign safety agencies and discussions in gatherings like the Institute of Food Technologists conference,” reports Schneider.
Several of the plaintiffs have issued public reports on nanotech, including IATP. InRacing Ahead: U.S. Agri-Nanotechnology in the Absence of Regulation, IATP notes that as of March 2011, there were over 1,300 products known to contain NEMs. That’s up from 200 in 2006, but the number is conservatively expected to rise to 3,400 by 2020. The ETC Group estimates well over 1,600 products in its 2010 report, The Big Downturn? Nanogeopolitics.
The Project on Emerging Nanotechnologies (PEN), a partnership of the Pew Charitable Trusts and the Woodrow Wilson International Center for Scholars, a U.S. government research center, notes that there is no registry of nano-scale ingredients and materials used in products or industrial processes.
“Establishing such a registry, as well as consumer products registry,” advises IATP, “would be necessary components of the eventual regulation of nanotechnology.”
Meanwhile, some products containing nanomaterials can be found with PEN’s iPhone application for using the Nanotechnology Products Inventory.
“There is a dependent relationship between size and surface area and nanoparticle toxicity; as particles are engineered smaller on the nano-level, they are more likely to be toxic,” plaintiffs wrote in their 2006 petition. “Many relatively inert and stable chemicals, such as carbon, pose toxic risk in their nano-scale form.”
That small of a size makes nanoparticles capable of crossing the blood-brain barrier noted food research scientist Ellin Doyle. In 2006, she published a literature review on nanotechnology advising, “Nanoparticles are readily taken up by many types of cells in vitro and are expected to cross the blood-brain barrier that excludes many substances that might harm the brain.”
Despite this, in 2006, the FDA ruled that “particle size is not an issue” for regulation. Basic chemistry teaches the opposite. At that small of a scale, a particle’s electrochemical features more heavily influence its interactions with nearby substances, including viruses, bacteria and DNA. The small nanosize means there are more atoms on its surface than inside the particle.
Both the US Patent Office and the National Nanotechnology Initiative, an agency of the US National Science Foundation, refuted the FDA’s stance, explaining that the small size of nanoparticles enable “unique and novel characteristics” that impact not only electrochemical interactions, but also their optical, photoreactive, magnetic, persistence, bio-accumulation, toxicity and explosiveness features.
Nanosized aluminum, a suspected ingredient in chemtrails, has been shown to spontaneously combust, reports ETC. Texas-based Quantum Logic Devices holdsPatent No. 7,338,711, which is an “enhanced nanocomposite combustion accelerant” used in fuels, propellants and explosives.
In its 2007 Nanotechnology Task Force Report, the FDA finally reversed itself admitting that, “at this scale, properties of a material relevant to the safety and (as applicable) effectiveness of FDA-regulated products might change repeatedly as size enters into or varies within the nanoscale range.”
In addition to several studies showing nanosize-induced harm cited in the 2006 petition, ETC listed ten studies from 1997 through early 2004 that showed DNA and brain damage, lung dysfunction, and bioaccumulation (whereby earthworms and other creatures absorb, inhale or ingest the nanoparticles and pass them up the food chain).
This is especially significant as nanopollution grows with the release of thousands of pounds of nanomaterials into the environment, notes Friends of the Earth in its 2006 report, Nanomaterials, sunscreens and cosmetics. (More studies can be found at this companion FOE report.)
ETC also pointed to studies showing that nanoparticles can break down in the body causing metal poisoning, and can cross the placenta from mother to unborn fetus.
A 2010 British study confirmed that anything smaller than 100 nm poses even greater health risks because it can “access all areas of the body” and can even penetrate the nucleus of cells where DNA is located.
Under its 2011 guidelines, the FDA will consider particles that are from 1 to 100 nanometers in size, but up to one micron if the end products “exhibit properties or phenomena, including physical or chemical properties or biological effects, that are attributable to its dimension(s).”
By dragging its feet on nanotech regulation for the past several years, the FDA and EPA have allowed the proliferation of nanomaterials into consumer products without disclosure. Similar to the federal government’s refusal to label genetically modified foods, US consumers are once again lab animals for the biotech industry. Hopefully, this lawsuit will spur appropriate safety testing and the removal of unsafe products from the market.
On Dec. 6, New York’s Suffolk County government will hold a public hearing on a proposal to ban aerial spraying of aluminum oxide, barium, sulfur, and other salts into the air over the county without first filing an Environmental Impact Statement with and receiving approval from the county’s Department of Health Services, Division of Environmental Quality.
Exempted from the proposed ban are aerosol spraying operations for agriculture, and for lyme disease, Eastern equine encephalitis (EEE), West Nile virus (WNV), and other disease vector control operations.
The hearing will be held at the Riverhead Legislative Auditorium, Evans K. Griffing Building, 300 Center Drive in Riverhead, NY at 2:30 pm.
If the public is able to convince legislators of the risk from such geoengineering operations, the legislation will then be voted on at the Dec. 20th session. Otherwise, the proposed ban will be tabled indefinitely.
Initiated by Cindy Pikoulas and her husband Jim, along with Siobhan Ciresi of Long Island Sky Watch (LISW), with the assistance of chemtrail opponent Rosalind Peterson of Agriculture Defense Coalition, the bill was finalized and proposed by legislator Edward P. Romaine (1st District). (Full text below.)
Involved in Suffolk County government since 1989, Romaine is a fiscal conservative who prioritizes saving farmland and protecting the environment. In August, he organized Long Island’s first countywide farmers market, along with the Long Island Farm Bureau.
Romaine has represented the 1st District (eastern end of Long Island) continuously since 2005. He serves on the Environment, Planning & Agriculture Committee, which voted on Nov. 28 to submit the proposed law banning such aerial spraying to a public hearing.
The Piloulases and Ciresi will speak on Dec. 6 and are urging people to “pack the hearing” to show support for the ban.
“If this proposal becomes law in Suffolk County, Long Island, it would be the first in the nation. It would be a starting point for others to follow,” said LISW in a press release. “Eventually, our governments would have to investigate why our trees are dying in record numbers; why our waters contain toxic levels of aluminum, barium and strontium; why 90% of us are vitamin D deficient; why our crops are failing; and where all of this crazy weather is coming from.”
Cindy Pikoulas of LISW spoke with New York Sky Watch radio on Nov. 20, when she advised that tree samples from Suffolk show high levels of barium, strontium and aluminum. She is asking Long Islanders to have their water and trees tested for these chemicals in order to build a body of evidence that would spur investigations by health and environment authorities.
In addition to attending the Dec. 6 hearing, Long Islanders can contact their county legislators viahttp://legis.suffolkcountyny.
Are Exemptions Necessary?
Though exempted under the proposed ban, disease vector spraying may be a subterfuge for weather control operations, given the extreme rarity of EEV and WNV. According to the U.S. Dept of Health and Human Services:
“Eastern equine encephalitis (EEE) is a rare but serious viral disease caused by a virus transmitted by the bite of an infected mosquito with more severe symptoms than for West Nile virus. EEE is an arbovirus (short for arthropod-borne, meaning spread by insects). Birds are the source of infection for mosquitoes, which can sometimes transmit the infection to horses, other animals, and, in rare cases, people.
“West Nile Virus (WNV) was first seen in the US in 1999, in the New York City area of Queens. WNV can live in a number of types of birds and is passed bird to bird by certain types of mosquitoes. Occasionally, an infected mosquito will pass the virus to humans or other animals. Most healthy people do not get sick from the virus, but sometimes it may cause symptoms.”
Per the US Geological Survey, two horses caught WNV in 2011 and 12 caught EEE, none of them in Suffolk. Of humans, 43 contracted WNV in New York State in 2011, four of them in Suffolk County. Only one person contracted EEE in the entire state.
Of the other vector-borne diseases of concern to health authorities – St Louis Encephalitis, La Crosse Encephalitis, Powassan Virus, and locally-acquired Dengue Fever – no New Yorkers contracted any of them in 2011. (But 40 New Yorkers did contract Dengue Fever when traveling outside the US in 2011.)
Considering that the population of NYS is 19 million, the application of toxic chemicals purportedly to control for such rare vector-borne diseases where only 44 people became ill in 2011 seems absurd.
US health officials admit that Ugandans and Egyptians, where WNV was first discovered, develop a natural immunity before reaching adulthood. Using toxic chemicals that pollute the environment, leading to cancer and respiratory diseases, instead of allowing humans to develop immunity to such diseases, is an unsustainable and irresponsible control method.
Whether these vector control spray programs are involved in other activities such as solar radiation or rainfall management is uncertain. But, in addition to the obvious jets laying chemtrails at 30,000 feet, they may be involved in contributing to the high levels of aluminum, barium and strontium found in Suffolk waters and trees.
Below is the full text of Suffolk’s proposed legislation:
WHEREAS, there was duly presented and introduced to this County Legislature at a meeting held on [December 6], 2011, a proposed local law entitled, “A LOCAL LAW TO PROTECT AIR QUALITY IN SUFFOLK COUNTY” now, therefore, be it
RESOLVED, that said local law be enacted in form as follows:
LOCAL LAW NO. _____-2011, SUFFOLK COUNTY, NEW YORK
A LOCAL LAW TO PROTECT AIR QUALITY IN SUFFOLK COUNTY
BE IT ENACTED BY THE COUNTY LEGISLATURE OF THE COUNTY OF SUFFOLK, as follows:
Section 1. Legislative Intent.
This Legislature hereby finds and determines that Suffolk County is a leader in environmental protection and has several programs to protect soil and groundwater from contamination.
This Legislature also finds and determines that air pollution is another environmental issue that can impact the health and safety of County residents and may also contaminate soil and groundwater.
This Legislature further finds and determines that concerns have been raised that business and government entities may be discharging polluting chemicals, including barium, sulfur, salts, and aluminum oxide, into the air, which may impact weather and other environmental elements.
This Legislature finds that such particulates eventually fall from the atmosphere, exposing the public to these air pollutants and, upon landing, may contaminate soil and water.
This Legislature determines that County residents may be exposed to these chemicals while they are in the atmosphere, which can cause respiratory and other health problems.
This Legislature also finds that, to protect County residents from potential harm, any person who plans to discharge these chemicals into the airspace over Suffolk County should first file an Environmental Impact Statement with and receive approval from the Department of Health Services, Division of Environmental Quality.
Therefore, the purpose of this law is to require any person who plans to discharge sulfur, barium, salts or aluminum oxide into the airspace above the County of Suffolk to file a complete Environmental Impact Statement with the County prior to taking such action.
Section 2. Definitions.
As used in this law, the following terms shall have the meanings indicated: “PERSON” shall mean any natural person, individual, corporation, unincorporated association, proprietorship, firm, partnership, joint venture, joint stock association, or other entity or business of any kind.
Section 3. Requirements.
Any person who plans to discharge sulfur, barium, salts or aluminum oxide into the airspace above the County of Suffolk must file a completed environmental impact form, as established in Section 4 of this law, with the Suffolk County Department of Health Services, Division of Environmental Quality and with the Clerk of the Suffolk County Legislature and receive the approval of the Division of Environmental Quality prior to engaging in such discharge.
Section 4. Form Established.
The Department of Health Services, Division of Environmental Quality is hereby authorized, empowered and directed to develop an environmental impact form to be used by persons wishing to discharge sulfur, barium, salts or aluminum oxide into the airspace above the County of Suffolk. Such form shall require applicants to detail the nature and purpose of their proposed discharge and any potential environmental and/or public health impacts that may result from such discharge.
Section 5. Exemption.
The requirements set forth in this law shall not apply to any person engaging in aerosol spraying for agricultural or vector control purposes.
Section 6. Penalties.
A. Any person who violates any provision of this law shall be liable for a civil penalty of up to $2,500 for an initial violation, with a fine of $5,000 for each subsequent violation.
B. Any civil penalty may only be assessed by the Commissioner of Health Services following a hearing and opportunity for an alleged violator to be heard.
Section 7. Rules and Regulations.
The Commissioner of the County Department of Health Services is hereby authorized and empowered to issue and promulgate such rules and regulations as he or she deems necessary to implement and carry out the provisions of this law. Section 8. Applicability.
This law shall apply to all actions occurring on or after the effective date of this law.
Section 9. Severability.
If any clause, sentence, paragraph, subdivision, section, or part of this law or the application thereof to any person, individual, corporation, firm, partnership, entity, or circumstance shall be adjudged by any court of competent jurisdiction to be invalid or unconstitutional, such order or judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part of this law, or in its application to the person, individual, corporation, firm, partnership, entity, or circumstance directly involved in the controversy in which such order or judgment shall be rendered.
Section 10. SEQRA Determination.
This Legislature, being the State Environmental Quality Review Act (SEQRA) lead agency, hereby finds and determines that this law constitutes a Type II action pursuant to Section 617.5(c)(20), (21), and/or (27) of Title 6 of the NEW YORK CODE OF RULES AND REGULATIONS (6 NYCRR) and within the meaning of Section 8-0109(2) of the NEW YORK ENVIRONMENTAL CONSERVATION LAW as a promulgation of regulations, rules, policies, procedures, and legislative decisions in connection with continuing agency administration, management and information collection. The Suffolk County Council on Environmental Quality (CEQ) is hereby directed to circulate any appropriate SEQRA notices of determination of non-applicability or non-significance in accordance with this law.
Section 11. Effective Date.
This law shall take effect immediately upon filing in the Office of the Secretary of State.
At one point, California boasted itself the most beautiful state in the Union. In 1950, it housed a reasonable 10 million people. Known as the land of milk and honey—California’s mountains, coastline and weather beckoned. California condors soared through limitless blue skies. Yosemite National Park, giant Sequoia redwoods, whales and seals along its coastline, Hollywood and 77 Sunset Strip—created the California mystique.
Sixty-one years later, 38 million people cram, jam, gridlock and fume in their fumes on “forever” crowded freeways. Growing at 1,700 people daily and over 600,000 annually—California expects an added 21 million people within 35 years. (Source: www.capsweb.org)
What caused California’s overload? Answer: legal and illegal immigration. Latest estimates show in excess of four million illegal aliens call California home. Anywhere from five, ten to twenty million more, my estimate, constitute legal immigrants.
To illustrate environmental refugees, we discover 40 percent of Los Angeles residents were born outside the U.S. (Source: www.cis.org) They arrived from Mexico, Korea, China, Central and South America, Middle East and Asia.
Result? Massive subdivision housing sprawl! Roads, malls, schools, churches, firehouses and homes devour land like Kansas wheat combines. Developers demolish nature. They guzzle water. They vomit black smoke into the air. Cars whiz around like mad hornets. The more compacted the traffic, the more drivers suffer road rage. Few smiling faces can be seen on California freeways. Drivers busy themselves trying to stay alive.
Joe Guzzardi, a writer and college professor in Lodi, California, recently moved to Pennsylvania, said, “If we continue our suicidal immigration path, whether the inevitable development takes the form of sprawl by building on a city’s periphery or landfill by building inside the city limits, the net result will be the same—an eroded quality of life and a vanished sense of place.”
California’s developers brag ‘smart growth’, however, whether that means ‘slow growth’, ‘managed growth’, ‘brilliant growth’, ‘dumb growth’, ‘fast growth’, or ‘snail’s pace growth’—it equals up to 20 million more people swarming all over California in 30 years. (Source: Fogel/Martin, March 2006, “US Population Projections”)
Former Governor Arnold Schwarzenegger and state treasurer Phil Angelides stuffed themselves into the pockets of developers. Angelides said, “We are a state of 26 million cars, SUVs and trucks that travel 314 billion miles a year and burn 15 billion gallons of gas. We are on a path over the next 20 years to become a state with 36 million cars that travel 446 billion miles and burn nearly 18 billion gallons. We must choose to grow smarter, to give Californians more transportation options, the choice to drive fewer miles and burn fewer gallons of fossil fuel.”
That sounds like an idiot talking to a moron who then relays the story to an imbecile. Even Goober on “Mayberry RFD” possessed more common sense.
Some choice! How intelligent is Angelides’ statement? To top it off, former President Bush, in his last State-of-the-Union speech said, “In the next 10 years by 2017, the United States will reduce oil consumption by 20 percent by using conservation, hybrid cars and ethanol.”
He forgot to report America adding 30 million people via immigration in that 10 year span. Therefore, our consumption can only rise by a factor of 30 million people using gas, coal, natural gas and wood for energy.
Journalist Joe Guzzardi said, “If people would contemplate the additional 100 million people coming our way in the not too distant future, and our current gluttonous land use, then they might become more alarmed. In a word, the problem is population. If it can be stabilized through sensible immigration policies, then we have a chance to level off growth. We’d have a chance to save our state and the United States.”
This journalist has bicycled the length and width of California five times in the past 25 years. I’ve seen it change from paradise to hell on earth. Too many people fill its parks with too much trash. Its ocean beaches suffer dying seals and seabirds from too much sewage, plastic, glass and aluminum pollution. CBS News reported, fish stocks dropped 90 percent in the past decade. California skies fill with toxic smoke too thick to breathe. Yosemite National Park suffers wall-to-wall crowding. Millions of cars create a kind of insanity of movement far removed from the natural world. Condors no longer soar in pristine skies because the last of them perch in cages built to save their species.
Constant tension fills places like Los Angeles and San Francisco. You cannot avoid the crowding, metal, concrete, glass, wires, buildings, roads and loss of sense of place.
One of my favorite writers, a Californian, John Muir said, “Tell me what you will of the benefactions of city civilization, of the sweet security of streets—all as part of the natural up-growth of man towards the high destiny we hear so much of. I know that our bodies were made to thrive only in pure air, and the scenes in which pure air is found. If the death exhalations that brood the broad towns in which we so fondly compact ourselves were made visible, we should flee as from a plague. All are more or less sick; there is not a perfectly sane man in all of San Francisco.” (September 1874, JOM, page 191-92.)
If the United States can be compared to the Titanic, our country steams into dangerous waters, much too fast and overloaded with too many immigrants to stay afloat. California might be the bow of our ship and, as it begins failing, its own environmental refugees cannot help but abandon ship like rats in a hurricane. Had the Titanic been able to stop the in-flooding of the North Atlantic, it would not have become the greatest seagoing catastrophe of the last century.
However, few want to speak up or take action. I am confounded that no national leaders step into the center ring to call for a national immigration moratorium—especially with 14 million Americans unemployed. None talk about stopping the in-flooding of humanity with the simple choice of reasoned action—as Congress pumps 200,000 legal immigrants into the USA every 30 days without end.
It didn’t make any difference on the Titanic if you were first class, third class or shoveling the coal in the boilers. When the ship sank, everyone became a victim in one form or another. As California fails in areas of water shortages, diminished farmland, toxic air pollution, horrific crowding and mind-numbing expansion away from nature—where will anyone make their escape?
At the current legal immigration rate, we expect an added 72 to 75 million third world legal immigrants within 24 years. Is Congress, the president and average Americans stupid or what? Answer: really stupid. I don’t think Americans, our Congress or the last five presidents understand they are pushing our country toward collapse. If they do understand, like passengers on the Titanic, they will go down with us. London’s eruption two weeks ago is just a taste of what we are facing. All it takes is a spark of angry minorities in our big cities.
Stockpiles About 25% Of Global Inventories In Warehouses…
The derelict neighborhood off Michigan Avenue is a sharp contrast to Goldman’s bustling skyscraper headquarters near Wall Street, but the two operations share one important element: management by the bank’s savvy financial professionals.
A string of warehouses in Detroit, most of them operated by Goldman, has stockpiled more than a million tonnes of the industrial metal aluminum, about a quarter of global reported inventories.
Simply storing all that metal generates tens of millions of dollars in rental revenues for Goldman every year.
There’s just one problem: much less aluminum is leaving the depots than arriving, creating a supply pinch for manufacturers of everything from soft drink cans to aircraft.
The resulting spike in prices has sparked a clash between companies forced to pay more for their aluminum and wait months for it to be delivered, Goldman, which is keen to keep its cash machines humming and the London Metal Exchange (LME), the world’s benchmark industrial metals market, which critics accuse of lax oversight.
A warehouse contracted out by Goldman Sachs warehouse subsidiary Metro International Trade Services to hold metals is seen in Detroit in this photo taken July 12, 2011.
A warehouse contracted out by Goldman Sachs warehouse subsidiary Metro International Trade Services to hold metals is seen in Detroit in this photo taken July 12, 2011.
Analysts question why London’s metals market allows big financial players like Goldman to own the warehouses which store huge quantities of metal even as they trade the commodity. Robin Bhar, a veteran metals analyst at Credit Agricole in London says the conflict of interest is so acute he wants U.S. and European anti-trust regulators to weigh in.
“I think it makes a mockery of the market. It’s a shame,” Bhar said. “This is an anti-competitive situation. It puts (some) companies at an advantage, and clearly the rest of the market at a disadvantage. It’s a real, genuine concern. And I think the regulators have to look at it.”
Goldman said its warehouse subsidiary Metro International Trade Services has done nothing illegal, and abides by the LME’s warehousing rules. “Producers have chosen to store metal in Detroit with Metro,” a Goldman spokeswoman said. “We follow the LME requirements in terms of storing and releasing metals from our warehouses.”
The London Metal Exchange defends its rules. “There is a perception that consumers have not been able to get to their metal when the reality is that it is big banks, financing companies and warehouses that are not able to get to their huge tonnages of metal fast enough,” said LME business development manager Chris Evans.
Goldman’s warehouse business relies on a lucrative opportunity enabled by the LME regulations. Those rules allow warehouses to release only a fraction of their inventories per day, much less than the metal that is regularly taken in for storage.
In the year to June 30 Metro warehouses in Detroit took in 364,175 tonnes of aluminum and delivered out 171,350 tonnes. That represented 42 percent of inventory arrivals globally and 26 percent of the metal delivered out, according to the London Metal Exchange said.
A worker walks amidst high purity aluminium ingots at the Rusal Krasnoyarsk aluminium smelter in the Siberian city of Krasnoyarsk, May 18, 2011.
A worker walks amidst high purity aluminium ingots at the Rusal Krasnoyarsk aluminium smelter in the Siberian city of Krasnoyarsk, May 18, 2011.
The metal that sits in the warehouse generates lucrative rental income.
Little wonder that so many want in. Metro was acquired by Goldman in February 2010, while commodities trading firm Trafigura nabbed UK-based NEMS in March 2010, and Swiss-based group Glencore International acquired the metals warehousing unit of Italy’s Pacorini last September.
Henry Bath, a warehousing firm and founding member of the London Metal Exchange in 1877, has been owned for about 40 years by traders or banks including Metallgesellschaft in the 1980s and failed U.S. energy trader Enron at the turn of the century. It now comes under the umbrella of JP Morgan, which bought the metals trading business of RBS Sempra Commodities in July last year.
Despite its rental income, Goldman’s warehouse strategy apparently hasn’t been enough to snap a slumping performance in commodity trading, with the company reporting a “significant” drop in revenues from a year ago in its latest quarter, the sixth time in the past 10 quarters that it has failed to expand.
The long delays in metal delivery have buyers fuming. Some consumers are waiting up to a year to receive the aluminum they need and that has resulted in the perverse situation of higher prices at a time when the world is awash in the metal.
“It’s driving up costs for the consumers in North America and it’s not being driven up because there is a true shortage in the market. It’s because of an issue of accessing metal … in Detroit warehouses,” said Nick Madden, chief procurement officer for Atlanta-based Novelis, which is owned by India’s Hindalco Industries Ltd and is the world’s biggest maker of rolled aluminum products. Novelis buys aluminum directly from producers but is still hit by the higher prices.
Madden estimates that the U.S. benchmark physical aluminum price is $20 to $40 a tonne higher because of the backlog at the Detroit warehouses. The physical price is currently around $2,800 per tonne. That premium is forcing U.S. businesses to fork out millions of dollars more for the 6 million tonnes of aluminum they use annually.
It has also had a knock-on impact on the global market, which is forecast to consume about 45 million tonnes of the lightweight, durable metal this year.
Also pushing aluminum costs higher are bank financing deals, which are estimated to have locked up about 70 percent of the 4.4 million tonnes of the metal sitting in LME-registered warehouses around the world. ME inventories hit an all-time record above 4.7 million tonnes in May.
In a typical deal, a bank buys aluminum from a producer, agrees to sell it at some future point at a profit, and strikes a warehouse deal to store it cheaply for an extended time period.
The combination of the financing deals and the metal trapped in Detroit depots, means only a fraction of the inventories are available to the market. Premiums for physical aluminum — the amount paid above the LME’s cash contract currently trading at $2,620 a tonne — in the U.S. Midwest hit a record high of $210 a tonne in May, up about 50 percent from late last year. In Europe, the premium is at records above $200 a tonne, double the levels seen in January 2010.
The ripple effect into Asia has seen the premium paid in Japan increase 6 percent to $120 a tonne in the third quarter from the previous quarter, the first rise in nearly six quarters.
Collecting the Rent
You won’t hear banks like Goldman complaining. Rental income continues to pour in at the 19 Detroit area warehouses run by Metro as of June.
From the outside one recent afternoon, a depot in the Detroit suburb of Mt Clemens appeared to be deserted. But neighbors say the place is a whirl of activity in the early hours of the morning when metal is usually delivered for storage.
The LME says the current maximum rent, set by warehouse operators, is 41 U.S. cents per day per tonne. At that rate, Goldman’s warehouse operation in Detroit — said to be holding more than 1.1 million tonnes — could be generating as much as $451,000 per day or about $165 million a year in revenue.
An exact figure cannot be calculated because many clients negotiate lower rental rates and Goldman declined to detail its income from its warehouse business. But when Swiss-based trading company Glencore listed earlier this year it revealed that its metals warehousing unit generated $31 million in profit on $220 million in gross revenue in 2010.
LONG HISTORY Caught between consumers and warehouse operators is the 134-year old LME, one of the world’s last exchanges with open-outcry trading. Sessions take place in a trading ring with red padded seats while visitors can watch from a gallery. Traders juggle multiple telephones and use archaic hand signals to fill orders from consumers, producers and hedge funds.
The ring is a perhaps more civilized version of the tumultuous trading pits made famous in Chicago. Each of six major industrial metals including copper and nickel are traded for five minute bursts in the morning and afternoon. Only 12 firms have access to the ring, arranged in fixed positions in a circle, with many others involved via the ring dealers and on the LME’s electronic trading system.
Longer sessions in the late morning and afternoon allow trading of all metals simultaneously and are known as “the kerb” from the days when dealers continued to trade on the kerb, or sidewalk, after leaving the exchange.
The LME certifies and regulates the Detroit sheds as part of a global network of more than 640 warehouses. The network is meant to even out swings in volatile metals markets. During recessions, surplus metal can be stored until economies recover and demand picks up, when the metal can be released.
But that function is now being undermined by the backlog in Detroit.
LME rules stipulate that warehouses must deliver a certain amount of metal each day. However the rules apply not to each warehouse but to each city that a company has warehouses in. At the moment, a warehouse operator needs to deliver just 1,500 tonnes a day per city, whether it owns one warehouse there or dozens. That means each of Metro’s Detroit warehouses need to release only 79 tonnes of aluminum a day. At that rate, it would take two years to clear the stocks held by Goldman’s Detroit warehouses.
The backlog sparked outrage last year, prompting the LME to task London-based consultancy Europe Economics to look into its rules. Europe Economics recommended the exchange raise its minimum delivery rates and earlier this month the exchange announced a new regime for operators with stocks of over 900,000 tonnes in one city.
From April 2012 the minimum delivery rate will double to 3,000 tonnes a day.
Critics dismiss the move as too small to have any real effect, especially because of the delay until it comes in.
“The move is too little and too late to have a material effect in the near-term on an already very tight physical market, particularly in the U.S.,” Morgan Stanley analysts said in a July note.
A senior executive at a metals brokerage told Reuters “the recommendations won’t change anything. The problem will still be there six, nine months down the line.” “If Detroit has 1.1 million tonnes at the moment, what’s to say it won’t have 2 million tonnes next year,” he said.
Moving More Metal
One obvious solution would be to impose minimum delivery requirements per warehouse or per square meter of warehouse space rather than per city. It’s not as if the warehouses can’t cope with delivering more stock: large operations can shift much more than 3,000 tonnes a day, warehousing sources say. An experienced forklift driver takes about 20 minutes to load one 20-tonne truck with aluminum in the United States. That means one warehouse in Detroit with two doors, two forklifts and an eight-hour working day could move out as much as 1,920 tonnes of metal every day.
“If you take Detroit in particular, those warehouses historically extracted metal at a faster rate … the infrastructure is there,” a senior analyst in the metals industry told Reuters.
Madden at Novelis said: “I don’t know the specific details of every warehouse but our view is that they seem to be able to absorb metal coming in at almost an infinite rate and so we feel there’s a lot more they can do on the output side to push up the (load out) rates.”
The LME could also crack down in the same way it did in 1998 when it banned Metro from taking any more copper into its Long Beach and Los Angeles warehouses. Then the complaints were said to have come from copper consumers worried that 80 percent of total copper stocks in LME-approved warehouses were held in California. The exchange argues that any change right now might disrupt the market.
“Changes to the delivery out rate have required careful consideration because it will impact the cost structure for those holding metal, and were those costs to rise sharply it could affect the way that metal is stored and traded,” said the LME’s Evans.
The exchange could also rule that a warehouse cannot charge rent once aluminum has been purchased, no matter how long it takes to ship it. But a change like that would hit the LME itself as it receives about 1 percent of the rental income earned by the warehouses it approves.
Nobody at the LME will say whether the Europe Economics study — industry sources said it talked to more than 40 companies — advised more radical measures, arguing that such information is “proprietary.” In any case, say metal markets sources, LME officials may be hesitant to make bigger changes because they fear legal action from the likes of Goldman, which could argue that Metro’s business model has been based on existing LME warehouse rules.
The LME declined to comment on possible legal challenges, but its Chief Executive Martin Abbott said at a recent briefing that the warehouse delays were not causing market and price distortions.
“No, I don’t believe it is,” Abbott said, when asked if the situation was causing distortions in the market. Abbott said the exchange had received no official complaints from consumers about bottlenecks at warehouses. The LME also dismisses concerns about banks trading metal and owning the warehouses where it is stored.
While a British parliamentary committee raised the issue in May, Britain’s Office of Fair Trading declined to open a probe. The U.S. Commodity Futures Trading Commission, which regulates the futures and options markets, said it would not comment. Britain’s Financial Services Authority, which regulates exchanges where commodity futures are traded but not warehouses that store physical material, declined to comment.
The lack of real change has some in the industry questioning the very structure of the LME, which, unlike its publicly owned U.S.-based rival commodities exchanges, is owned by many of the financial institutions that trade there.
“The belief is that they are focused on serving their shareholders; most of them being the banks … We see our clients and contacts trying to avoid the LME as much as possible now,” said Jorge Vazquez, Managing Director of the Aluminum Intelligence Unit at HARBOR Commodity Research.
That concern is growing. Critics of the exchange point to a potential problem with zinc supply though New Orleans, where inventories now account for 61 percent of total LME-registered stocks. Most of the warehouses in New Orleans are owned by Goldman and Glencore.
Metal industry sources believe regulators should take a closer look at the possible conflict of interest that arises when trading houses also own the warehouses.
“If the whole thrust of regulation and regulatory reform is increased transparency and open and above board operations, letting banks own warehouses seems to run entirely counter to that,” said Frances Hudson, global thematic strategist at Standard Life Investments said.
The LME says it enforces a strong separation between warehouses and the trading arms of their owners. Just this week it proposed that companies which own warehouses should engage an independent third-party to verify the robustness of Chinese walls.
“We enforce it through regular audits of warehouses,” said the LME’s Evans. “If people say Chinese walls are leaking then they should bring us evidence and we’ll investigate.”
(This story was updated to add details about how much aluminium was taken in and delivered by Metro warehouses in Detroit in the past year (paragraph 13) and to correct who sets the maximum rent for metal storage—it’s the warehouse owners, not the LME (paragraph 30). In paragraph 5 “a trickle” of aluminium leaving the warehouses was changed to “much less is leaving the depots than arriving…”)