Archive for June, 2011

Threats Direct – Cutting Out The Middleman

Thursday, June 16th, 2011

 File:DeathOfASalesman.jpg

Ten who still believe the myth that they are vital in Washington are Dustin’ off their sample cases and channeling their War Powers for being passed over like so many aluminum siding  salesmen; “I am not a dime a dozen! I am Willy Loman, and you are Biff Loman!”

“times… when your safety is not directly threatened, but our interests and our values are.” 

President Barack Obama, Address to the Nation on Libya, March 28, 2011

In the Loman family tradition, these icons of political influence reflect the long lost constitutional spirit of the hardest working door-to-door salesman in the aluminum siding business.  Below is a link to the actual lawsuit filed by the following elected officials against President Obama.  It seems that they’re not accepting the more efficient distribution of taxpayer wealth found within the Direct Buy business model of NATO or the Big Box retail discounting of the country’s values and interests

Of the plaintiffs in the lawsuit filed against President Barack Obama and Defense Secretary Robert “Governments Lie” Gates in the Washington, D.C. Court, all are elected Congressmen, seven are Republicans, three are democrats and all ten of them don’t appreciate being cut out of the War Powers Act.  I know what you’re thinking.  Where did Dave learn to trade and how exactly does he avoid being cut out like the proverbial middleman?  He learned from Arthur Miller’s Dave Singleman of course, the eighty-four year old dirt drummer with clients in thirty-one states. 

Roscoe Bartlett represents the Sixth District of Maryland and has served in the United States House of Representatives since 1992. He is the Chairman of the Tactical Air and Land Forces Subcommittee of the House Armed Services Committee; a senior member of the Science, Space and Technology Committee as well as a member of the Small Business Committee. Throughout his ten terms in office, Representative Bartlett has remained one of the leading congressional members on matters relating to defense and scientific issues. He is a member of the Republican Party.

Dan Burton represents the Fifth District of Indiana and has served in the United States House of Representatives since 1983. He served as the Chairman of the House Committee on Oversight and Government Reform and currently serves as the Chairman of the House Foreign Affairs Subcommittee on Europe and Eurasia. He is also a Senior Member on the Oversight and Government Reform Committee. Throughout his fifteen terms in office, Rep. Burton has been a leading figure in the investigation of executive power and its abuse. Rep. Burton is a proud veteran of the U.S. armed forces, having served in the U.S. Army and U.S. Army Reserves. He is a member of the Republican Party.

Michael E. Capuano represents the Eighth District of Massachusetts and has served in the United States House of Representatives since 1984. He is a member of the House Committee on Transportation and Infrastructure and the House Committee on Financial Services. He also serves on the House Democratic Leadership team as a member of the Democratic Steering and Policy Committee. Throughout his seven terms in office, Rep. Capuano has been a leading voice for international human rights, including aid to the Darfur region of Sudan. Rep. Capuano received his law degree from Boston College Law School in 1977 and is a member of the Massachusetts bar. He is a member of the Democratic Party.

Howard Coble represents the Sixth District of North Carolina and has served in the United States House of Representatives since 1984. He is a member of the House Committee on the Judiciary and is the Chairman of the Subcommittee on Courts, Commercial and Administrative Law. He also serves on the House Committee on Transportation and Infrastructure, as well as the Subcommittee on Aviation, the Subcommittee on Coast Guard and Maritime Transportation, and the Subcommittee on Highways and Transit. In over a decade of service in Congress, Rep. Coble has been a leading voice on constitutional issues and legal reform. He received his law degree from the University of North Carolina and his Doctor of Laws from Elon University. Rep. Coble has proudly served five-and-a-half years in the U.S. Coast Guard and twenty-two years in the U.S. Coast Guard Reserve. He is a member of the Republican Party.

John Conyers, Jr. represents the Fourteenth District of Michigan and has served in the United States House of Representatives since 1965. He has served as Chairman of both the House Committee on Government Operations (now renamed Committee on Oversight and Government Reform) and the House Committee on the Judiciary. He is currently the ranking member of the House Judiciary Committee and serves on the Subcommittee on the Constitution, Civil Rights, and Civil Liberties. He is the second longest-serving incumbent member of the House. Throughout his twenty-three terms in Congress, Rep. Conyers has been a leading voice in the protection of civil liberties, civil rights, and human rights in addition to a host of other international and domestic issues.  He received his law degree from Wayne State University. Rep. Conyers is a proud veteran of the U.S. armed forces, having served in the National Guard and the U.S. Army Corps of Engineers during the Korean War. He is a member of the Democratic Party.

John J. Duncan, Jr. represents the Second District of Tennessee and has served in the United States House of Representatives since 1988. He is a member of the House Transportation and Infrastructure Committee and serves as Chairman of the Highways and Transit Subcommittee. He is also a member of the House Committee on Natural Resources. He received his law degree from The George Washington University and previously served as a judge. Rep. Duncan’s distinguished legal career led Lincoln Memorial University to name its new law school after him. He has been a leading voice against foreign wars and for compliance with the doctrine of separation of powers under the U.S. Constitution. Rep. Duncan is a proud veteran of the U.S. armed forces, having served in the U.S. Army National Guard and the U.S. Army Reserve. He is a member of the Republican Party.

Timothy V. Johnson represents the Fifteenth District of Illinois and has served in the United States House of Representatives since 2000. He is a member of the House Committee on Agriculture and serves as Chairman of the Subcommittee on Rural Development, Research, Biotechnology, and Foreign Agriculture. He also serves on the House Committee on Transportation and Infrastructure. In addition to his leadership on agricultural issues, Rep. Johnson has been a leading voice on constitutional issues, including opposing excesses in national security laws. He received his law degree from the University of Illinois College of Law. He is a member of the Republican Party.

Walter Jones represents the Third District of North Carolina and has served as a member of the House of Representatives since 1995. He is a member of the House Committee on Armed Services and the House Committee on Financial Services. Throughout his sixteen years in Congress, Rep. Jones has been a leading voice for military personnel and a leader on military issues. He introduced the War Crimes Act of 1996, which allows prisoners of war to bring their persecutors to justice in U.S. courts. He was also the author of language in the 2010 National Defense Authorization Act that guarantees treatment for returning troops suffering from post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI) from the ongoing wars. He is a member of the Republican Party.

Dennis Kucinich represents the Tenth District of Ohio and has served as a member of the United States House of Representatives since 1996. He is the Ranking Member of the Regulatory Affairs, Stimulus Oversight and Government Spending Subcommittee of the Oversight and Government Reform Committee. He is also a member of the Education and Workforce Committee. He has served as an official United States delegate to the U.N. Convention on Climate Change (1998 and 2004). Throughout his eight terms in Congress, Rep. Kucinich has been a leading voice on worker rights, civil rights and human rights. He is a member of the Democratic Party.

Ron Paul represents the Fourteenth District of Texas and has served as a member of the United States House of Representatives since the 1970s, with one break from 1984 to 1997, when he relinquished his seat to return to his medical practice. He is a member of the Committee on Foreign Affairs and the Subcommittee on Oversight and Investigations. He is also a member of the Committee on Financial Services, the Chairman of the Subcommittee on Domestic Monetary Policy and Technology, and a member of the Subcommittee on International Monetary Policy and Trade. Dr. Paul has been a leading voice for limited government and constitutional rights. Dr. Paul has proudly served as a flight surgeon in the U.S. Air Force. He is a member of the Republican Party.

Here’s a link to the actual complaint filed with the court:  http://info.publicintelligence.net/LibyaWarPowersComplaint.pdf

Update: If you haven’t heard the name Walter Dellinger lately, get ready because you will probably start hearing it a lot. He’s a constitutional law expert and exactly the type of person you turn to in regard to questions such as the War Powers Act and the conflict in Libya. I happen to know Walter from many years ago.  I don’t agree with everything he says, but unlike some folks who claim to be Constitutional law experts, Walter actually is one.  Here’s a link to his memo from the war in Bosnia that may provide some background for Libya: http://www.justice.gov/olc/bosnia2.htm

UPDATE ON THE MOMENTOUS TRANSITION

Here is a link to the White House official response for the justification of military action in Libya during the “sensitive” and “momentous transition.”  The report includes the following three key points in regard to America’s interests.

• To limit the spread of violence and instability in a region pivotal to our security interests, particularly while it is undergoing sensitive transitions;

• To prevent an imminent humanitarian catastrophe; and 

• To show the people of the Middle East and North Africa that America stands with them at a time of momentous transition.

http://info.publicintelligence.net/ObamaLibyaJustification.pdf

Tear Gas With Stacy

Wednesday, June 15th, 2011

Follow the live Twitter stream from Stacy Herbert and Max Keiser live from Athens!

http://twitter.com/#!/stacyherbert

Twist & Shout ~ What’s The Frequency Kenneth?

Tuesday, June 14th, 2011

low frequency original Pixy Stix

New & Improved High Frequency Giant Pixy Stix

There’s 1960′s Twist & Shout courtesy of the The Beatles and The Isley Brothers.  That’s low frequency twisting and shouting. 

Then there’s next generation Twist & Shout courtesy of  R.E.M., Dan Rather and the assailant who believes that his mind has been taken over by the mainstream media.  That’s high frequency twisting and shouting courtesy of Kenneth.   

To fully appreciate what only the chairdresser knows for sure, you have to appreciate his appreciation for financial history.  Ben Bernanke appears to be taking a page from history and the John F. Kennedy administration as the plan to implement Operation Twist has received a shout out via twitter from no other than Bill Gross of Pimco, who when it comes to bonds is even bigger than The Beatles.

For those of you having difficulty sleeping, Dave offers this elaboration on the High Frequency upon which Operation Twist will resonate:  http://www.brookings.edu/~/media/Files/Programs/ES/BPEA/2011_spring_bpea_papers/2011_spring_bpea_conference_swanson.pdf

 Here’s an article from 2008 that addressed a similar issue: http://seekingalpha.com/article/68166-fixing-the-mortgage-mess-operation-twist-take-two

Here’s Dave’s gut instinct.  This is a temporary attempt to strengthen the dollar artificially cooling inflation while attempting to coax cash off of corporate balance sheets into mid-term investments by inverting the yield curve and motivating banks to lend to businesses again due to attractive low, long-term rates.  What will it actually do?  Dave thinks it’s like “cash for clunkers”, but it’s really more just “cash for candy.”  It will create the need for increased liquidity and more paper money and it will increase the near-term velocity of cash actually creating a currency shortage.

It will be like a sugar high.  Like dropping a Mentos into a bottle of Coke.  Wow!  Then you’re left with a flat soda and sticky mess.  Is anyone foolish enough to sink long-term or even mid-term (say a 7 year term loan for a business) investments when you have such an unstable environment?  No.  So, what will happen is an increase in liquidations (further drop in real estate prices) in an effort to lock-in short term returns. 

In other words, companies will sell the ranch and use the money to chase the higher near-term returns which will allow them to pay stellar dividends which will rocket their stock price all while they destroy their (and our) long-term prospects… but who cares because they’ll make their numbers for the quarter while no one else is, which means they will not only survive, but prosper and further consolidate their leadership positions in the UPS/Fedex, Verizon/AT&T, Apple/Android, Coke/Pepsi duopolistic fantasy of a free market. If the sugar fix was legitimate investment and the dollar was fundamentally strong, then it would destroy the stock prices, spoiling our dinner and the intended wealth effect and we can’t have that now can we.

 Then again, I could be wrong.  Dave’s not a financial planner, but I did buy one of those pixie sticks when I was a kid and I remember how I felt when I ate it and how I felt a couple of hours later.  If you’re not old enough to know who news anchor Dan Rather is or that he used to sing with the band R.E.M., you need to bone up on your history like the chairdresser, then you’ll know for sure how to shake it up baby…

Extend & Pretend meet Exempt & Explode

Tuesday, June 14th, 2011

File:Eod2.jpg

The timer is set for JUNE 28.  What happens to the derivative market when you confuse C 4 explosives with section 4 C of The Commodities Exchange Act and in an attempt to exempt select market participants you simply build a bigger, more highly leveraged and explosive situation?  The bottom line is that the CFTC is over-reaching their authority in an attempt to provide “relief” for the Dodd-Frank legislation which Frankly speaking, they have no more authority to do than Barney the dinosaur cartoon character.

CFTC to extend Dodd Frank implementation until December 31, 2011.

Here’s the official fact sheet:

http://www.futuresmag.com/News/2011/6/PublishingImages/Effective%20Date%20-%20Fact%20Sheet.pdf

Here are a list of related documents:

The comments extension – http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-10884a.pdf

The proposed rules – http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-10737a.pdf

The adaptation of promulgation – http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-12270a.pdf

Here’s a link to the webcast from the June 14, 2011 meeting: http://www.capitolconnection.net/capcon/cftc/061411/wmarchive.htm

Here are links to the opening statements and additional documents presented at the meeting:

http://www.cftc.gov/PressRoom/Events/opaevent_cftcdoddfrank061411.html

The public comment section is organized into 12 separate areas for your comments.

http://comments.cftc.gov/PublicComments/ReleasesWithComments.aspxhttp://comments.cftc.gov/PublicComments/ReleasesWithComments.aspx

This document clearly states that public comments must be submitted within 14 days of publication in the Federal Register.  My guess is that means that the deadline for public comment is June 28 although I do NOT see that date published anywhere.  There are lots of dates (especially on the 12 separate public comment areas listed above) that are after that date, so this appears, at least on the surface, as a way to limit comments being submitted within the required timeframe.  The following would seem to be the key document for instructions on how to comment.

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/federalregister061411.pdf

Here’s some key excerpts from the above instructions on how to submit comments

Through the CFTC website:  http://comments.cftc.gov

Through the Federal eRulemaking Portal: http://www.regulations.gov

Through the mail: Send to David A. Stawick, Secretary, Commodity Futures Trading Commission, Three Lafayette Centre, 115521 st Street, NW, Washington, DC 20581

If you’re looking for material to reference for your submissions, we’ve been following this issue for a while and provided links below.  However, the overriding issue is that the CFTC is attempting to exert their “exemptive authority” (section 4c) of their to create definitions of what “swaps” really mean.  There are significant questions as to whether or not the CFTC even has the authority to override the Dodd-Frank legislation which is what they are doing.

Here’s some more background on the section 4c London Clearing House exemption and how the so-called “relief” is structured and allowed by the CFTC.  To Dave, the entire “relief” concept looks like the ultimate loophole around the legislation.

http://www.cftc.gov/opa/press98/opa4163-98-att.htm

http://www.cftc.gov/opa/press99/opa4247-99-attch.htm

Here’s some legal commentary on how the changes to the Commodity Exchange Act take into consideration a participant’s previous trading practices.  In other words, if you are a TBTF institution and you  regularly raid the precious metals market, then you’re exempt from the rules.

http://www.corporatefinancialweeklydigest.com/2011/03/articles/cftc-1/cftc-publishes-a-proposed-interpretive-order-on-disruptive-trading-practices-under-doddfrank/

Here are links to our previous blog posts on the CFTC and everyone’s favorite commissioner Bart Chilton:

http://tradewithdave.com/?p=6559

http://tradewithdave.com/?p=6611

http://tradewithdave.com/?p=6336

http://tradewithdave.com/?p=6291

http://tradewithdave.com/?p=6031

http://tradewithdave.com/?p=5863

http://tradewithdave.com/?p=5583

http://tradewithdave.com/?p=5384

http://tradewithdave.com/?p=5293

http://tradewithdave.com/?p=4791

http://tradewithdave.com/?p=4618

http://tradewithdave.com/?p=4419

http://tradewithdave.com/?p=4331

http://tradewithdave.com/?p=4185

http://tradewithdave.com/?p=4101

http://tradewithdave.com/?p=3816

http://tradewithdave.com/?p=3193

http://tradewithdave.com/?p=3059

http://tradewithdave.com/?p=1170

http://tradewithdave.com/?p=891

http://tradewithdave.com/?p=703

It’s hard to say for sure, but Dave thinks he might just be seeing a pattern here…

Jeff & Ken Meet Jobs (not Steve)

Tuesday, June 14th, 2011

President Barack Obama tours the General Electric plant in Schenectady, N.Y., with Jeff Immelt, CEO and Chairman of General Electric, left,  and Kevin Sharkey, GE Infrastructure/Plant Manager,  Jan. 21, 2011.

Dave asks the $64,000 question “Do they make these in your town?” 

In this article (see link below) provided by the White House in conjunction with the Larry Summers “Jobs Crisis” article, General Electric CEO Jeff Immelt and American Express CEO Ken Chenault spell out exactly how they are meeting the job creation challenge. 

Challenge #1 –   Train Workers

Solution #1 –  Private partnerships with community colleges and tech schools

Dave #1 –   Doesn’t really work.  Private businesses have to hustle.  People that run community colleges are great, but they’re not known for hustle or as up-to-date as folks in places like South Korea, India or Malaysia. 

___________________________________

Challenge #2 – Cut red tape on infrastructure permits

Solution #2 – White House makes it easier for connected lobbyists to win business and exploit loopholes

Dave #2 – Jobs Crisis meet Washington – this is the one solution that works, but only for folks like Jeff and Ken and Steve “Jobs” Jobs. 

____________________________________________

Challenge #3 – Boost Travel & Tourism

Solution #3 – Allow more foreign students to come to the U.S. to take summer jobs away from Americans

Dave #3 – This makes it nearly impossible to order a pizza when you’re on vacation at the beach because the order taker doesn’t speak english.  It also makes getting directions impossible from convenience store clerks, but we have Garmin for that.  Putting seven students from Kazakhstan sleeping on the floor in a single hotel room for the summer doesn’t really qualify as tourism, but they do have to buy plane tickets, phone cards and pay for time on the internet connecting with the friends they miss back home.  So when it comes to satisfying numbers for the Bureau of Labor Statistics it works… but when it comes to satisfying your pizza craving, you’re on your own.  To put it another way, America may run on Dunkin’, but Dunkin’ runs on India if you hadn’t noticed and over 100 million Indians run on Islam which increasingly exempts them from the law of the land, but rather subjects them to the growing prevelance of Muslim Personal Law (i.e. Sharia).   

In regard to the real hot shots that they need more green cards to import, here’s an article from Politico.com.  You won’t find these minds at your local community college: http://www.politico.com/news/stories/0611/56868.html

__________________________________

Challenge #4 – More small business loans through the SBA 

Solution #4 – “Help small-business owners obtain the information and support…” 

Dave #4 – Same problem as the community college (see # 1 above).  Small businesses have to hustle.  SBA administrators don’t have to hustle.  If you want entrepreneurs to borrow money then the Federal Reserve would not have been bailing out European Banks.  Private banks with connections to local communities either don’t exist anymore or are teetering with their own default.  Entrepreneurialism has been removed from local banking and if you’re counting on the SBA to stimulate local economic development you’re dreaming. 

Do you really believe for one minute that an SBA staff member can provide “support” to a small business owner?  Lending is about money and interest, not about process and so-called “support.”  Dave has built many companies, hired hundreds of people and borrowed millions of dollars.  The SBA is a joke, but it’s great default insurance (at the taxpayer’s expense) when you can get it.  If you’re counting on Karen Mills to single-handedly save the country, good luck with that.

______________________________________________

Challenge # 5  – Put construction workers back to work

Solution # 5 – Private & Public Sector can step up

Dave # 5 – The public sector needs to “step up?”  That’s a joke right.  What was the taxpayer funded Hank Paulson bailout if it wasn’t the public sector stepping up?  Sure it was highway robbery in support of  Too Big To Fail.  The private sector steps up everyday and I can tell that I know a lot of people in construction and there are only two types of companies that are making it.  The first is the large, connected companies that carefully split up the large infrastructure projects and they have the time and resources to be politically connected.  The second type is the small subcontractor who is willing to hire illegal aliens, work them 60 hours per week and not pay overtime. 

The second type of company does the heavy lifting for the first type of company because that’s the only way that they can continue to win the bids and still have a margin of profitability.  Small operators who abide with the laws and restrictions, especially those who are union members are barely getting by.  A system has been created where the only people that win are those who either cheat outright or those that do seasonal work and lay off their employees each year allowing them to collect unemployment while still doing side work for cash.  Ask someone in construction if this is true and they’ll tell you Dave knows what he is talking about.

As far as the big infrastructure projects that were approved with the stimulus, these were heavily supported by the global banking cartel for the simple reason that the plan is to sell off and privatize these big projects such as toll roads, bridges, airports and the like.  It’s no different than the government sponsored enterprises like Fannie Mae.  They’re government backed when it comes to assuming risk, but they’re privatized when it comes to extracting the wealth.  Watch what happens to your state’s new bridges, airports, highways and prisons over the next few years.  They look like public projects but they will be administered by private contractors who will make a killing at the public expense.     

As far as the suggestion that making buildings more energy efficient is a catalyst for new jobs.  This has been one of the few areas (replacement windows, insulation, etc.) where the tax credits and construction/remodeling industry has actually seen some business on the local level and helped to drive down the cost of wasted energy for homeowners.

__________________________________________ 

Here’s a link to the full article in the Wall Street Journal: http://online.wsj.com/article/SB10001424052702304259304576380323311523538.html?KEYWORDS=immelt#printMode

If you want to see the reality of the situation go to the 25 minute mark of the following video and listen to the comment about the fact that “behavioral change” would be needed on the part of banks before anything will change.

To learn more about the White House plan to solve the jobs crisis, you may want to read the article below where Larry Summers channels I Am A Strange Loop and his plan to increase “confidence” by focusing on the importance of “confidence” in a self-referential feedback loop

Because I’m Worth It

Monday, June 13th, 2011

 

I use the most expensive confidence in the world.  Deference, by M’Oral Hazard.  It’s not that I care about money.  It’s that I care about my hair.  It’s not just the confidence.  I expect great confidence.  What’s worth more to me is the way my economy feels.  Smooth and silky but with body.  It feels good against my neck.  Actually, I don’t mind spending more for M’Oral Hazard… Because I’m worth it.

 What exactly do bad haircuts and the former Obama Chief Economic Adviser Lawrence Summers have in common?  They both grow back.  Here’s the latest fashion statement from the White House water-bearing Harvard professor’s pre-rinse for the payroll tax cut plus conditioner for maximizing the shampoo consumption while boosting confidence better than a blow drier; borrow, lend, spend, repeat… borrow, lend, spend, repeat… borrow, lend, spend, repeat… 

It’s clear from Larry’s curling iron consultation that the cause of your bad hair day (over-confidence) is also the solution (under-confidence).  The best part of your economic makeover is that with your newfound confidence your appearance will look like you lost decades, but with all the technologically-driven productivity gains all you really lost was your job.  Will the Summer’s “B-L-S repeat” plan to invoke a Volker solution work this time or will you need a double dip of M’Oral Hazard Hair Color to hide the roots of non-recovery?  Only your chairdresser knows for sure.     

Here’s a link to the complete Summers summer cut from the Financial Times of London’s new “A-List” of contributors including such runway fashion nameplates of the new normal as Soros, O’Neill and El-Erian.  You will probably have to register your email address to read the article…  but you’re worth it (or at least having your valid email address is):  http://www.ft.com/intl/cms/s/0/b3c143b6-952d-11e0-a648-00144feab49a.html#axzz1P9A1cD7D

To make sure you get your money’s worth from Dave, here are a few other posts on the great contributions to the quantification of confidence by Larry Summers:

http://tradewithdave.com/?p=334

http://tradewithdave.com/?p=2246

When The Lights Go Down In The Montreal Town

Sunday, June 12th, 2011

File:Stevie Nicks and Lindsey Buckingham.jpg

The Original Gold Dust Woman – Stevie Nicks (photo: Wikipedia)

♫ People out there turning taxes into gold…

Here’s a copy of the Google translation and a link to the press release from Revenue Quebec, the Canadian Tax Authority in regard to their “reason to believe” that over 125 companies have engaged in a tax avoidance scheme where scrap gold “objects” (a taxable item) are turned into pure gold “money” (a non-taxable item) through a series of artificial transactions.  To read what Dave thinks about all this dust being kicked up, don’t miss the paragraph at the bottom. 

Major investigation by Revenue Quebec on two networks in the gold sector
Montreal, June 9, 2011. – Revenu Québec is currently conducting a major investigation on two networks with companies and individuals who have engaged in tax evasion activities in the gold sector. Transactions generated by these activities would total $ 1.8 billion, which represents tax losses only in sales tax (QST), more than 150 million.

The operation is running more than 70 search warrants in the cities of Montreal, Westmount, Mont-Royal, Laval, Pointe-Claire, Rosemere, Brossard, Dorval and St-Bernard de-Lacolle. More than 175 investigators from Revenue Quebec were deployed to implement these mandates in business locations, residences, offices of accountants and trustees in bankruptcy.

This survey targets the activities of two networks that have participated in a business transaction involving artificial and repetitive use of a system of false invoicing. Revenue Quebec has reasonable grounds to believe that most companies Kitco Metals Inc.. and Carmen International inc. About 125 other companies are complicit in the scheme.

In addition, Revenue Quebec also has reasonable grounds to believe that Drs. Viken Gebenlian, Haroutioun Dakessian, Oskan Hazarabedian and Benjamin Bensimon and Ms. Shadia Khatib attended the production of false tax returns for certain companies involved in providing false invoices.

Revenue Quebec is also investigating similar crimes on the GST.

Revenu Québec must be uncompromising with those who violate tax laws and in particular may bring criminal prosecutions against them. Thus, companies and their directors who participated in a scheme of tax evasion, or any other person accomplice, if convicted, will pay the amounts evaded plus interest and penalties. In addition, any offender is liable to fines of 125% to 200% of the amount evaded and a maximum sentence of five years.

Revenu Québec’s mission is to ensure that each of us pays their fair share of funding for public services. In fact, tax compliance, it is in everyone’s interest.

Ploy in the gold sector

What is the ploy found?

There, in the gold industry, various structures involving companies that make artificial transactions for the sole purpose of requesting refunds of input tax.

The scheme is based primarily on the transformation of pure gold scrap gold, which are then sent to a refiner to be reprocessed into pure gold, thus repeating the cycle.

How is it possible to claim tax refunds on inputs using pure gold?

Participants in the scheme using zero-rating provisions contained in the Act on the sales tax (RSQ, c. T-0.1). Indeed, the peculiarity of this scheme is that pure gold, is a financial (eg money), is a zero.

However, transforming scrap into pure gold, it makes its taxable resale, which allows the acquiring company to request refunds of input tax. The vendor does not scrap the QST collected to Revenu Québec, the latter is to pay the taxes he never received.

It is important to note that the scheme based on artificial transactions. There is no real commercial activity, the only purpose of these transactions is to be able to request refunds of input tax.

How does the ploy?

1. The supplier of gold (A) sells gold pure gold to the processor (B). Because pure gold is zero-rated, there is no fiscal impact at the PST.

2. The processor of gold (B) transforms into pure gold scrap gold, making gold taxable.

3. The processor of gold (B) sells scrap gold gold supplier (A). The scrap gold is taxable, the processor receives gold QST.

4. The processor of gold (B) does not QST perceived gold supplier (A) Revenue Quebec (where tax collected and not remitted).

5. The supplier of gold to Revenue Quebec for a refund of input tax for the QST paid to the processor of gold (B).

6. The supplier of gold (A) sends scrap gold to a refiner to turn waste into gold.

The same cycle is repeated transactions, and each time a new cycle begins, the scope of the scheme is increased profits from the fraud or money received from the State.

In addition, there are usually one or more intermediaries that are added between the supplier of gold (A) and the processor of gold (B) to complicate the structure and make detection more difficult trick.

Here’s a link to the Revenu Quebec website and press release in French: http://www.revenuquebec.ca/en/centre-information/communiques/ev-fisc/2011/9juin.aspx

DAVE COMMENTARY

If all this seems curious to you, then you may want to consider how the United States Treasury and the Federal Reserve manage to turn $1,500 per ounce gold into $50 buffalo gold coins.  It makes you wonder what the tax implications for such a transaction may be in regard to the benefit of the Federal Reserve.  Notice that unlike previous coins, prior to the $1 presidential coin act which authorized the buffalo gold coin, the words ”1 oz. fine gold” were not printed on the coin itself.  To Dave, that’s a dead giveaway that the coin isn’t a coin at all.  It’s money and it’s value is the price of gold, not $50, that is unless it’s taxes that you’re…. turning into gold.  

Here’s a link to Dave’s previous blog post on how not to be buffaloed by organizations that use the word ”Federal” in their name.  The whole thing connects back to the ridiculous Sorcha Faal/Strauss-Kahn disinformation incident from a couple of weeks ago.  There was just something about that release that still doesn’t sit right with Dave.  If you know anything about the intelligence business, then you know that disinformation is a currency unto itself.  Revenue Quebec is suggesting that 127 Companies, like so many wild indians, all moved off the same tax reservation at the same time?  Dave don’t think so Kimosabe. 

Here’s the link:  http://tradewithdave.com/?p=6640

May The Force Be With Jews

Saturday, June 11th, 2011

 File:Osmar Schindler David und Goliath.jpg

From the White House meeting this week, the alliance between Homeland Security and Jews marks the first time the governmental security agency has teamed up with a faith-based community to address the threat of terrorism.

“Homeland security begins with hometown security, and our nation’s faith-based organizations play a critical role in keeping our communities safe.  Expanding the ‘If You See Something, Say Something’ campaign to national Jewish groups, the first faith-based partnership for the campaign, is an important step in the Department’s ongoing effort to engage the American public in our nation’s security efforts.”

Janet Napolitano, Secretary of the Department of Homeland Security

“This new partnership with the Department of Homeland Security will empower us to counter this threat as we become more actively involved in our own protection.”

Michael Gelman, Executive Committee Chair of The Jewish Federations of North America

“For more than a century, Jewish Federations have been the connecting force of the North American Jewish community. We are grateful for the opportunity to work with DHS and SCN (Jewish Federation-backed Secure Community Network) to leverage our wide collective network to help better protect U.S. Jewish institutions from potential threats.”

Jerry Silverman, President and CEO of Jewish Federation of North America

The official press release from the trademark holder of See Something, Say Something your Department of Homeland Security: http://www.dhs.gov/ynews/releases/pr_1307733737148.shtm

The official press release from The Jewish Federations of North America: http://www.jewishfederations.org/page.aspx?id=242120

At the time of  the filing of this report, according to Dave [not King Dave - his motto was See Something/Throw Something (as in a stone... at Goliath)] the Psalms had still not been revised to reflect the new DHS/JFN/SCN partnership.

My help cometh from the LORD, which made heaven and earth.”  Psalm 121:2

For a handy list of things that qualify as suspicious behavior for both Jews and Gentiles, click here: http://tradewithdave.com/?p=5086

If you’re worried that your local sheriff won’t be able to handle all these calls, don’t worry.  The Jewish Federation, the Federal Government, the Federal Reserve and Federal Express have got you covered.  For more on how Fusion Centers by-pass the need for a local sheriff, click here: 

http://tradewithdave.com/?p=5380

http://tradewithdave.com/?p=1115

Editor’s Note:  This new government program is not to be confused with any similarly trademarked or public domain programs in South Philly in conjunction with the Cheesesteak Federation.  It’s a phrase which is commonly heard amongst students at the University of Pennsylvania and Drexel before heading south into the more terror-ridden neighborhoods associated with the killer grilled onions and force-filled order takers.  To be more specific such an initiative would be trademarked in your best Rocky Balboa accent, “May The Force Be With Yous.” 

Late night invasions of such neighborhoods in an effort to lower the munchy threat level from red to yellow  were the original inspiration for being active in your own individual appetite suppresion rather than mere institutional protection via forced government intervention.  It’s unclear at this time as to whether or not any infringement on the DHS trademark may have transpired as it is difficult to ascertain when terms such as ”Jews” and “Yous” and “Juice” fall within the vocabulary of hometowns across the Jersey Shore which is a stronghold of all related federations and is a likely financial beneficiary of said programs.

When you’re as religious about security as Pat –  The King of Steaks is about maintaining order, you understand that learning to follow instructions is the key to survival.  Regardless of what might happen, keep in mind the Pat’s protocol of  the original SCN (Secure Cheesesteak Networks) “don’t panic” just move to the back of the line and start over.  Website coming soon.  http://www.patskingofsteaks.com/

Tag… You’re It… Almost

Thursday, June 9th, 2011

Don’t I know you from somewhere?…

Facebook rolls out facial recognition.  Think of it as the Easy Button for privacy invasions at cocktail parties.  It will no doubt bring new meaning to the slogan… “Who was that masked man?”

Facebook’s official blog entry on how opting you in works: http://blog.facebook.com/blog.php?post=467145887130

The Guardian’s U.K. report: http://www.guardian.co.uk/technology/2011/jun/08/facebook-privacy-facial-recognition

The Financial Time’s U.K. report: http://www.ft.com/cms/s/2/ffe3edb4-92c8-11e0-bd88-00144feab49a.html#axzz1Opb0xE7I

The Financial Times again June 9: http://www.ft.com/intl/cms/s/2/00b50d52-9253-11e0-9e00-00144feab49a,dwp_uuid=9a36c1aa-3016-11da-ba9f-00000e2511c8.html#axzz1Opb0xE7I

Keep in mind that Facebook said that they received “almost no user complaints.”  That’s good enough for Dave.  Dave’s big on horsehoes and hand gernades and anything where “almost” is almost all you need to win.  It leaves privacy regulations open to individual interpretation and it really really helps when nobody knows you made the change, you automatically opt people in and it doesn’t even show up in mainstream media Stateside. 

If you did want to file a privacy invasion complaint with Facebook, you could do it here:    http://www.facebook.com/help/contact.php?show_form=ui_privacy

If you want to know how we got here Kimosabe you can go back to the beginning and read one of Dave’s epic posts on Facebook… “Trust and the Trillion Dollar Brain”:  http://tradewithdave.com/?p=261

WSJ Affirms Dave In “Too Cute To Fail”

Thursday, June 9th, 2011

In a sweeping follow-up to the hard-hitting Andrew Ross Sorkin stoning of Matt Taibbi in the New York Times, Rupert Murdoch piles on in today’s Wall Street Journal confirmation by Holman Jenkins that Goldman Sachs, as reported first by Dave, is indeed “Too Cute To Fail.”

Here’s an excerpt from the in-depth Holman analysis of the motivations of Senator Carl “$&^##* Deal” Levin. 

“To be fair, intellectual honesty was always extraneous to Mr. Levin’s purpose. If people with freckles or fanciers of schnauzers were suddenly to become popularly reviled, Mr. Levin would position himself as chief reviler.”  

Holman Jenkins for the Wall Street Journal, June 7, 2011

Here’s a link to the full article.  To be intellectually honest like Jenkins, I never know if the WSJ has an actual paywall… good luck getting through…

http://online.wsj.com/article/SB10001424052702304432304576371452698816400.html

Here’s a link to Matt Taibbi’s response to the Ross Sorkin Rubdown from Rolling Stone Magazine: http://www.rollingstone.com/politics/blogs/taibblog/andrew-ross-sorkin-gives-goldman-a-rubdown-20110607

Here’s a link to the New York Times, Goldman Sachs and Tata Sponsored (aka Save The Old Gray Lady’s) Dealbook Ross Sorkin article which Dave  affectionately refers to as “The Cookbook.”  The only thing kids love more than a puppy is a home cooked meal from the grandma of all paper-based journals: http://dealbook.nytimes.com/2011/06/06/the-fine-print-of-goldmans-subprime-bet/

If you’re tired of scooping up behind Fido and want to download the entire doggy deal in one data dump, here’s the link to Senators Levin & Coburn full report on cleaning up Wall Street… Washington style: http://tradewithdave.com/?p=6811

For those who don’t want to just scoop the surface, you can dig a little deeper into the laptop bulging  dumpsters of the bulge bracket click here, Febreze included: http://tradewithdave.com/?p=6650