Politics

‘China Accounts For Nearly Half Of World’s New Money Supply’

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– “China Accounts For Nearly Half Of World’s New Money Supply” (ZeroHedge, Feb 8, 2013):

When it comes to the creation of money in China, and specifically the asset side of the ledger, or loans, there is much more confusion than consensus, primarily because nobody knows who it is that is creating the money: private or public entities, SOEs, the PBOC, regional banks, shadow banks, or your next door neighbor.Another thing that is largely misreported: what the actual assets pledged as collateral to new loans are. Because while it is well-known that corporate debt in China is now greater as a percentage of GDP than in any other country, the comprehensive picture is still confusing (albeit GMO did a fantastic summary recently of what is known) as reporting standards are still non-existent, and the government flat out lies about its balance sheet.

Yet one very simple shortcut to get a sense of what is truly happening in monetary China is to peek at the liability side of the consolidated balance sheet, and one line in particular, namely deposits. Because unlike in the US, where the vibrant equity Ponzi scheme has rarely been stronger, in China it is still all about the cash and as a result the bulk of the newly created money once again return back to the banking sector in the form of a deposit. Ironically, that is what banking should be about (instead of the entire industry being a glorified hedge fund) although in China even this practice has gone on way too far, and like in Europe, has long passed the point where there is real collateral value backing up the new money created (which explains the emergence of various letters of credit collateralized by copper still not dug out of the ground which reappear every time Chinese inflation spikes above 5%).

So how do deposits look when comparing the US and China? Well, after having less than half the total US deposits back in 2005, China has pumped enough cash into the economy using various public and private conduits to make even Ben Bernanke blush: between January 2005 and January 2013, Chinese bank deposits have soared by a whopping $11 trillion, rising from $4 trillion to $15 trillion! We have no idea what the real Chinese GDP number is but this expansion alone is anywhere between 200 and 300% of the real GDP as it stands now.

Read more‘China Accounts For Nearly Half Of World’s New Money Supply’

Venezuela Launches First Nuke In Currency Wars, Devalues Currency By 46%!

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Coming to a country near you … soon.

Got gold and silver?

–  Venezuela Launches First Nuke In Currency Wars, Devalues Currency By 46% (ZeroHedge, Feb  10, 2013):

While the rest of the developed world is scrambling here and there, politely prodding its central bankers to destroy their relative currencies, all the while naming said devaluation assorted names, “quantitative easing” being the most popular, here comes Venezuela and shows the banana republics of the developed world what lobbing a nuclear bomb into a currency war knife fight looks like:

  • VENEZUELA DEVALUES FROM 4.30 TO 6.30 BOLIVARS
  • VENEZUELA NEW CURRENCY BODY TO MANAGE DOLLAR INFLOWS
  • CARACAS CONSUMER PRICES ROSE 3.3% IN JAN.

And that, ladies and gents of Caracas, is how you just lost 46% of your purchasing power, unless of course your fiat was in gold and silver, which just jumped by about 46%. And, in case there is confusion, this is in process, and coming soon to every “developed world” banana republic near you.

and just as we (and Kyle Bass) have warned – this is what happens to the nominal price of a stock market as currency wars escalate… how do those US investors who flooded Venezuela with cash feel now? bringing back those VEF gains is going to hurt…

The chart above is a free lesson in nominal vs real: the hardest lesson for some 99.9% of the world’s population to grasp. One person who certainly knows how to devalue a currency in real terms is FDR, whose 70% devaluation of the USD courtesy of executive order 6102, is merely an appetizer of what is about to be unleashed upon the US.

From Bloomberg:

Venezuela devalued its currency for the fifth time in nine years as ailing President Hugo Chavez seeks to narrow a widening fiscal gap and reduce a shortage of dollars in the economy.

Read moreVenezuela Launches First Nuke In Currency Wars, Devalues Currency By 46%!

Davos 2013: Henry Kissinger Says Iran Nuclear Crisis Close

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Flashback:

– Henry Kissinger: ‘In 10 Years, There Will Be No More Israel’

– Bilderberg 2012: Detailed Member Bios, UK Guardian’s Video Report


A nuclear war in the Middle East would be a “turning point in human history,” says Mr Kissinger

– Davos 2013: Kissinger says Iran nuclear crisis close (BBC News, Jan 24, 2013):

Former US Secretary of State Henry Kissinger has warned that a crisis involving a nuclear Iran is in the “foreseeable future”.

The Nobel Peace laureate, 89, was speaking about prospects in the Middle East at the World Economic Forum.

He said nuclear proliferation in the region triggered by an armed Iran would increase the chances of an atomic war – “a turning point in human history”.

He also urged the US and Russia to co-operate in resolving Syria’s conflict.

Read moreDavos 2013: Henry Kissinger Says Iran Nuclear Crisis Close

UKIP’s Nigel Farage On EU Propaganda Blitz Against Online Critics: ‘EU Parliament No Better Than A Banana Republic’ (Video)

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YouTube Added: 07.02.2013

– ‘EU Parliament no better than banana republic’ with PR campaign (RT, Feb 8, 2013):

As eurozone leaders lock horns over the budget deal, speculation is rife the EU is set to invest millions in a PR campaign against online critics. It puts the EU Parliament on a par with so-called ‘banana republics’, MEP Nigel Farage told RT.

“The words ‘legal’ and ‘European Union’ don’t fit together. Nothing matters here, there are no rules,” says the UK Independence Party’s Nigel Farage of the EP plan to spend huge sums of taxpayer money on social network smear campaigns against those who speak out against it.

Read moreUKIP’s Nigel Farage On EU Propaganda Blitz Against Online Critics: ‘EU Parliament No Better Than A Banana Republic’ (Video)

MI5 To Install ‘Black Box’ Spy Devices To Monitor Britain’s Entire Internet Traffic

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– UK government plans to track ALL web use: MI5 to install ‘black box’ spy devices to monitor British internet traffic (Daily Mail, Feb 6, 2013):

  • MPs’ report outlines spooks’ take on the draft Communications Data Bill
  • It shows they are keen to implement nationwide surveillance regime
  • They want ISPs to install ‘black boxes’ that can inspect all internet traffic
  • Spies claim they are only interested in ‘communications data’
  • Campaigners warn it will give spies unprecedented surveillance powers

    • UK spy agencies want to install ‘black box’ surveillance devices across the country’s communications networks to monitor internet use, it emerged today.

    A report by an influential committee of MPs tells how spooks are keen to implement a nationwide surveillance regime aimed at logging nearly everything Britons do and say online.

    The spy network will rely on a technology known as Deep Packet Inspection to log data from communications ranging from online services like Facebook and Twitter, Skype calls with family members and visits to pornographic websites.

    Read moreMI5 To Install ‘Black Box’ Spy Devices To Monitor Britain’s Entire Internet Traffic

    Is The Financial System Of Europe On The Verge Of A Meltdown?

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    – Watch The Financial Markets In Europe (Economic Collapse, Feb 7, 2013):

    Is the financial system of Europe on the verge of a meltdown?  I have always maintained that the next wave of the economic crisis would begin in Europe, and right now the situation in Europe is unraveling at a frightening pace.  On Monday, European stocks had their worst day in over six months, and over the past four days we have seen the EUR/USD decline by the most that it has in nearly seven months.  Meanwhile, scandals are erupting all over the continent.  A political scandal in Spain, a derivatives scandal in Italy and banking scandals all over the eurozone are seriously shaking confidence in the system.  If things move much farther in a negative direction, we could be facing a full-blown financial crisis in Europe very rapidly.  So watch the financial markets in Europe very carefully.  Yes, most Americans tend to ignore Europe because they are convinced that the U.S. is “the center of the universe”, but the truth is that Europe actually has a bigger population than we do, they have a bigger economy then we do, and they have a much larger banking system than we do.  The global financial system is more integrated today than it ever has been before, and if there is a major stock market crash in Europe it is going to deeply affect the United States and the rest of the globe as well.  So pay close attention to what is going on in Europe, because events over there could spark a chain reaction that would have very serious implications for every man, woman and child on the planet.

    Read moreIs The Financial System Of Europe On The Verge Of A Meltdown?

    Currency War ? Trade War ? Hot War

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    – Currency Wars Often Lead to Trade Wars … Which In Turn Can Devolve Into Hot Wars (ZeroHedge, Feb 8, 2013):

    Currency War ? Trade War ? Hot War?

    According to numerous high-level insiders, the global currency war is accelerating:

    Read moreCurrency War ? Trade War ? Hot War

    DHS Watchdog OKs ‘Suspicionless’ Seizure of Electronic Devices Along Border … ‘Fourth-Amendment-Free Zone Stretches 100 Miles Inland’

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    – DHS Watchdog OKs ‘Suspicionless’ Seizure of Electronic Devices Along Border (Wired, Feb 8, 2013):

    The Department of Homeland Security’s civil rights watchdog has concluded that travelers along the nation’s borders may have their electronics seized and the contents of those devices examined for any reason whatsoever — all in the name of national security.

    The DHS, which secures the nation’s border, in 2009 announced that it would conduct a “Civil Liberties Impact Assessment” of its suspicionless search-and-seizure policy pertaining to electronic devices “within 120 days.” More than three years later, the DHS office of Civil Rights and Civil Liberties published a two-page executive summary of its findings.

    “We also conclude that imposing a requirement that officers have reasonable suspicion in order to conduct a border search of an electronic device would be operationally harmful without concomitant civil rights/civil liberties benefits,” the executive summary said.

    The memo highlights the friction between today’s reality that electronic devices have become virtual extensions of ourselves housing everything from e-mail to instant-message chats to photos and our papers and effects — juxtaposed against the government’s stated quest for national security.

    The President George W. Bush administration first announced the suspicionless, electronics search rules in 2008. The President Barack Obama administration followed up with virtually the same rules a year later. Between 2008 and 2010, 6,500 persons had their electronic devices searched along the U.S. border, according to DHS data.

    According to legal precedent, the Fourth Amendment — the right to be free from unreasonable searches and seizures — does not apply along the border. By the way, the government contends the Fourth-Amendment-Free Zone stretches 100 miles inland from the nation’s actual border.

    Read moreDHS Watchdog OKs ‘Suspicionless’ Seizure of Electronic Devices Along Border … ‘Fourth-Amendment-Free Zone Stretches 100 Miles Inland’

    Obama Declares Global Cyberwar

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    – Obama Declares Global Cyberwar (Veterans Today, Feb 8, 2013):

    Throughout his tenure, Obama governed lawlessly for the monied interests that own him. He’s waged no-holds-barred war on humanity.

    Strategy includes homeland tyranny, fear-mongering, saber rattling, hot wars, proxy ones, drone ones, domestic political ones, geopolitical ones, financial ones, anti-populist ones, sanctions, subversion, sabotage, targeted assassinations, mass murder, cyberwar, and more.

    In May 2009, Obama prioritized cybersecurity. He called cyber-threats “one of the most serious economic and national security challenges we face as a nation.”

    “America’s economic prosperity in the 21st century will depend on cybersecurity.”

    Read moreObama Declares Global Cyberwar

    Cops Nab 5-Year-Old For Wearing Wrong Color Shoes To School

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    – Cops Nab 5-Year-Old for Wearing Wrong Color Shoes to School (Take Part, Jan 18, 2013):

    In Mississippi, if kindergarteners violate the dress code or act out in class, they may end up in the back of a police car.

    A story about one five-year-old particularly stands out. The little boy was required to wear black shoes to school. Because he didn’t have black shoes, his mom used a marker to cover up his white and red sneakers. A bit of red and white were still noticeable, so the child was taken home by the cops.

    The child was escorted out of school so he and his mother would be taught a lesson.

    Ridiculous? Perhaps. But incidents such as this are happening across Mississippi. A new report, “Handcuffs on Success: The Extreme School Discipline Crisis in Mississippi Public Schools,” exposes just how bad it’s become.

    Read moreCops Nab 5-Year-Old For Wearing Wrong Color Shoes To School

    U.S. Postal Service Reports $1.3 Billion Loss

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    – Postal Service Reports $1.3 Billion Loss (Wall Street Journal, Feb 8, 2013):

    WASHINGTON—The U.S. Postal Service on Friday reported a $1.3 billion loss for its fiscal first quarter, highlighting the agency’s financial strain even during the historically profitable holiday season and election period.

    The Postal Service earlier this week said it planned to eliminate Saturday delivery of mail, but not packages, in August in an attempt to trim losses. Postmaster General Patrick R. Donahoe said the move is expected to save $2 billion a year.

    The loss for the October-through-December period compares with a $3.3 billion shortfall a year earlier. A continued decline in first-class mail and a congressional mandate to set aside more than $5 billion a year for future retiree-health-care expenses were the driving factors for the most recent loss, the Postal Service said.

    Read moreU.S. Postal Service Reports $1.3 Billion Loss

    Sandy Hook DA Cites ‘POTENTIAL SUSPECTS’

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    – Sandy Hook DA cites ‘potential suspects,’ fears witness safety (Digital Journal, Feb 5, 2013):

    Connecticut State’s Attorney Stephen Sedensky has argued that unsealing warrants in the Sandy Hook case might “seriously jeopardize” the investigation by disclosing information known only to other “potential suspects.”

    Sedensky said that unsealing the warrants would also:

    “identify persons cooperating with the investigation, thus possibly jeopardizing their personal safety and well-being.”

    The statement by the CT prosecutor’s office is the first indication from state authorities that Adam Lanza may have not acted alone.

    Read moreSandy Hook DA Cites ‘POTENTIAL SUSPECTS’

    Christopher Dorner Manhunt: Police Hunt For Suspected Cop Killer – Full Uncensored Manifesto From Retired LAPD Officer Christopher Dorner

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    – Christopher Dorner Manhunt: Police Hunt for Suspected Cop Killer With Door-to-Door Search (ABC News, Feb 8, 2013):

    More than 100 police officers were going door-to-door and searching for new tracks in the snow in hopes of catching suspected cop-killer Christopher Dorner overnight in Big Bear Lake, Calif., before he strikes again, as laid out in his rambling online manifesto.

    Police late Thursday night alerted the residents near Big Bear Lake that Dorner was still on the loose after finding his truck burning earlier in the day.

    San Bernardino County Sheriff’s spokeswoman Cindy Bachman said authorities can’t say for certain that he’s not in the area. More than half of the 400 homes in the area had been searched by police as of late Thursday. Police traveled in two-man teams.

    Bachman urged people in the area not to answer the door, unless they know the person or see a law enforcement officer in uniform.

    …

    – Christopher Dorner Manhunt: Search For Ex-Cop Suspected Of Killing 3 Covers California (Huffington Post, Feb 8, 2013):

    BIG BEAR LAKE, Calif. — A police officer and a pair of soon-to-be newlyweds were dead.

    Another officer, riddled with bullets, was in intensive care.

    Two more police were shot at but got away, one of them grazed by gunfire. Two innocent and uninvolved women were shot by police who feared a dangerous suspect.

    And despite a massive manhunt that touched three states and Mexico, the heavily armed ex-Los Angeles police officer believed behind the rampage, who promised in his rambling writings to bring “warfare” to police and their families, remained free.

    …

    – Los Angeles Manhunt: Who Is Christopher Dorner? (ABC News)

    – Christopher Dorner Manifesto Posted Online (ABC News)


    In this handout picture provided by Los Angeles Police Department, the alleged suspect Christopher Jordan Dorner is seen on February 7, 2013 in Los Angeles, Calif. (Photo by LAPD via Getty Images)

    – Full Uncensored Manifesto from Retired LAPD Officer Christopher Dorner:

    From: Christopher Jordan Dorner /7648

    To: America

    Subj: Last resort

    Regarding CF# 07-004281
    Christopher Dorner w/ Chief William Bratton

    Christopher Dorner w/ Chief William Bratton

    I know most of you who personally know me are in disbelief to hear from media reports that I am suspected of committing such horrendous murders and have taken drastic and shocking actions in the last couple of days. You are saying to yourself that this is completely out of character of the man you knew who always wore a smile wherever he was seen. I know I will be villified by the LAPD and the media.

    Unfortunately, this is a necessary evil that I do not enjoy but must partake and complete for substantial change to occur within the LAPD and reclaim my name. The department has not changed since the Rampart and Rodney King days. It has gotten worse. The consent decree should never have been lifted. The only thing that has evolved from the consent decree is those officers involved in the Rampart scandal and Rodney King incidents have since promoted to supervisor, commanders, and command staff, and executive positions.

    Read moreChristopher Dorner Manhunt: Police Hunt For Suspected Cop Killer – Full Uncensored Manifesto From Retired LAPD Officer Christopher Dorner

    FDA Approves First GMO Flu Vaccine Containing Reprogrammed Insect Virus

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    What could possibly go wrong?

    – FDA approves first GMO flu vaccine containing reprogrammed insect virus (Natural News, Feb 8, 2013):

    A new vaccine for influenza has hit the market, and it is the first ever to contain genetically-modified (GM) proteins derived from insect cells. According to reports, the U.S. Food and Drug Administration (FDA) recently approved the vaccine, known as Flublok, which contains recombinant DNA technology and an insect virus known as baculovirus that is purported to help facilitate the more rapid production of vaccines.

    According to Flublok’s package insert, the vaccine is trivalent, which means it contains GM proteins from three different flu strains. The vaccine’s manufacturer, Protein Sciences Corporation (PSC), explains that Flublok is produced by extracting cells from the fall armyworm, a type of caterpillar, and genetically altering them to produce large amounts of hemagglutinin, a flu virus protein that enables the flu virus itself to enter the body quickly.

    Read moreFDA Approves First GMO Flu Vaccine Containing Reprogrammed Insect Virus

    Iran Releases Footage From Hacked US Drone (Video)

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    – Iran Releases Footage From Hacked US Drone (ZeroHedge, Feb 7, 2013):

    Back in December 2011 the US government first lied, then grudgingly had to admit that Iran had seized one of its RQ-170 Sentinel drones, which crash-landed in the middle of the country, after Iran released a video showing its scientists attempting to reverse engineer the contents of the drone. Naturally, the US politely asked for its drone back, and just as naturally, Iran politely refused to comply. So what was Iran doing in the intervening 14 months? Hacking the drone of course, which it finally succeeded last night when it released a short clip of what it had supposedly extracted from the remains of the Sentinel. The full clip is below, and while it does not provide any incremental informational benefits to Iran, or any further humiliation to whoever created the US drone fleet without a self-destruct option, it certainly will boost Iranian morale on the ground for hacking the Great Satan.

    More from Telegraph:

    The video aired late on Wednesday on Iranian TV shows an aerial view of an airport and a city, said to be a US drone base and Kandahar, Afghanistan. The TV also showed images purported to be the Sentinel landing at a base in eastern Iran but it was unclear if that footage meant to depict the moment of the drone’s seizure.

    In addition, the TV also showed images of an Iranian helicopter transporting the drone, as well as its disassembled parts being carried on a trailer.

    In another part of the video, the chief of the Revolutionary Guard’s airspace division, Gen. Amir Ali Hajizadeh, said that only after capturing the drone, Iran realised it “belongs to the CIA.”

    Read moreIran Releases Footage From Hacked US Drone (Video)

    QE MADNESS: ‘In Feb 2013, Fed Will Buy 75% Of New 30y Treasury Supply’

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    – “In Feb 2013, Fed Will Buy 75% Of New 30y Treasury Supply” (ZeroHedge, Feb 7, 2013):

    We urge readers to read the bolded section below, which comes straight from this quariter’s Treasury Borrowing Advisory Committee (i.e., Primary Dealers) presentation to the Treasury Department, and explain, with a straight face, just how the Fed will ever be able to not only stop monetizing debt and injecting $85 billion of flow into the stock market, but actually sell any holdings.Federal Reserve Holdings (1 of 2)

    As of Dec 26, 2012 the Federal Reserve System Open Market Account (SOMA) held approximately $300 billion in 21+ year US Treasury debt

    • SOMA holds 41% of the 30y Treasury bonds issued since 2009
    • In Feb 2013, Fed will buy 75% of new 30y Treasury supply

    Twist and QE operations have significantly lengthened the WAM of the Fed’s SOMA portfolio

    The Fed currently owns 29% of all marketable 10yr Equivalents outstanding

    Read moreQE MADNESS: ‘In Feb 2013, Fed Will Buy 75% Of New 30y Treasury Supply’

    Russian Flyover Prompts Japanese Fighter Jet Scramble As Abe Opens Second ‘Disputed Island’ Front

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    – Russian Flyover Prompts Japanese Fighter Jet Scramble As Abe Opens Second “Disputed Island” Front (ZeroHedge, Feb 7, 2013):

    While the collapse in China-Japan foreign relations (and subsequently, and much more importantly, trade) over a handful of islands in the East China Sea and strategically located near potentially vast maritime oil and gas reserves is by now well-known to everyone, what may come as a surprise is that while Japan is engaged in one mini cold war over disputed rocks with China, none other than Russia tested the waters overnight so to speak, with a fighter jet flyover above yet another set of disputed islands, the Kuriles located in the far north of Japan.

    From Reuters: “Two Russian fighter jets briefly entered Japan’s air space near disputed islands and the northern island of Hokkaido on Thursday, prompting Japan to scramble combat fighters and lodge a protest, Japan’s Foreign Ministry said.” In other words, Russia is making it very clear that as Japan loses more credibility in the foreign affairs arena, China will not be the only one to gain from Japan’s loss, and that Russia has every intention of claiming what it too believes rightfully belongs to Putin. Which begs the question: how far is Japan’s far more nationalistic current government willing to go to alienate yet another key trading partner, and was this the plane by the China-Russia axis all along?

    Read moreRussian Flyover Prompts Japanese Fighter Jet Scramble As Abe Opens Second ‘Disputed Island’ Front

    Secret US Assassination Drone Base In Saudi Arabia Exposed

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    A US assassination drone firing a missile (file photo)

    – Secret US assassination drone base in Saudi Arabia exposed (PressTV, Feb 6, 2013):

    The existence of a previously secret US assassination drone base in Saudi Arabia has come to light amid President Barack Obama’s bid to install his counterterrorism adviser and architect of his covert targeted-killing policy, John Brennan, as the next CIA director.

    CIA terror drones flown out of a secret American base in Saudi Arabia were used to carry out the “only strike intentionally targeting a US citizen” to kill Anwar al-Awlaki and his 16-year-old son in a 2011 attack in Yemen, The Washington Post reports on Wednesday.

    Read moreSecret US Assassination Drone Base In Saudi Arabia Exposed

    US Awards Israeli Chief Of Staff Benny Gantz With ‘Legion Of Merit’

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    FYI.


    Israel’s Chief of Staff Lieutenant Benny Gantz (R) and his US counterpart Martin Dempsey (C) arrive at a ceremony at the Rabin military base in Tel Aviv, January 20, 2012.

    – US awards Israeli Chief of Staff Gantz with ‘Legion of Merit’ (PressTV, Feb 6, 2013):

    The Chairman of the Joint Chiefs of Staff of the US Armed Forces, General Martin E. Dempsey, has given the “Legion of Merit” award to his Israeli counterpart, Benny Gantz.

    The award was given to Gantz on behalf of US President Barack Obama, during a ceremony at the Pentagon, for what Washington called an outstanding and noteworthy command.

    During the ceremony, the Israeli military chief praised the cooperation between Israeli and US militaries.

    The US award and praise for the Israeli army chief comes a week after an Israeli airstrike on a Syrian research center in Damascus, which left several people killed and injured.

    Read moreUS Awards Israeli Chief Of Staff Benny Gantz With ‘Legion Of Merit’

    UK Government: All Dogs Will Now Be Microchipped

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    Flashback:

    – CASPIAN RELEASES MICROCHIP CANCER REPORT:

    A new paper titled “Microchip-Induced Tumors in Laboratory Rodents and Dogs: A Review of the Literature 1990–2006” has been released…

    More links on microchips are down below.

    All puppies will now have to be microchipped to make it easier to trace the owners of dangerous dogs.


    The number of patients treated in hospital for dog bites has more than doubled in a decade to more than 6,000 a year

    – All dogs will now be microchipped, the Government says (Guardian, Freb 5, 2013):

    Ministers will say that compulsory microchipping will ensure that all dogs can in future be traced back to their owners, who will then be held accountable for the animal’s behaviour.

    There have been growing calls for the Government to take action amid concern from animal charities about dangerous dogs being used as weapons and status symbols.

    Under the measures to be unveiled by Owen Paterson, the Environment Secretary, dog owners will also now face prosecution if an animal attacks anyone in their home.

    Read moreUK Government: All Dogs Will Now Be Microchipped