Monday, October 9, 2023

"The October Stock Market Crash Is Rapidly Accelerating With 50% Value Drop"

Full screen recommended.
Epic Economist, 10/9/23
"The October Stock Market Crash Is 
Rapidly Accelerating With 50% Value Drop"

"October is known as the spookiest month for Wall Street, and the market movements of the next few weeks are going to serve up an extra dose of terror for traders. Since September, conditions are getting turbulent for the S&P 500, which shed almost 6% during the month. Several calculations suggest that the index is about to drop below 3,000 points in October – which would be at least a 30% crash from current levels. But market insiders point to a myriad of factors that could send share prices even lower. They say a 50% crash would not be ‘unsurprising’.

The feeling is changing so rapidly on Wall Street that two important market indicators are showing that investors are sitting on the edge of their seats. On Thursday, CNN reported that its Fear & Greed Index, which tracks seven market indicators, sank to an “Extreme Fear” reading of 14, which marks the index’s lowest level since last October.

And they are right to worry because, right now, U.S. stocks are on shakier ground. The Federal Reserve just warned that it will keep higher interest rates for longer, which is raising concerns about whether or not the U.S. economy can stay resilient. Many signs of trouble are brewing. Investment bank Raymond James said on a note to clients that the U.S. economy is set to enter an inflection point as soon as this quarter. JPMorgan also predicts a rocky few weeks on Wall Street.

The so-called Magnificent Seven stocks—Amazon, Alphabet, Meta, Apple, Tesla, Microsoft, and Nvidia—would be particularly hard-hit in such a scenario, sparking high double-digit losses as they catch down to the rest of the stock market and sectors like consumer staples and utilities. In the past few days, many other financial strategists started to raise the alarm about the imminent danger of an October crash. Notably, Albert Edwards, a global strategist at investment bank Société Générale, warned that markets were currently mimicking the run-up to 1987’s stock market crash.

The outlook today is eerily similar to the run-up to Black Monday when stocks were resilient amid rising bond yields right before the Dow crashed by 22% in a single trading session, its sharpest one-day decline in history, the strategist cautions.

Goldman Sachs and Citigroup also seem to be positioning themselves for more turmoil, lowering their year-end price target for the S&P 500 on Friday. Bank of America noted that at the end of September, investors were dumping stocks at the fastest rate since the end of 2022, and that won’t change in the coming weeks.

The scariest warning of all came from Jeremy Grantham, who said a 50% crash in the S&P500 would not be a surprise. During the latest episode of Bloomberg's "Merryn Talks Money" podcast, the legendary investor said that the market suffers from attention deficit disorder, “so it always thinks every rally is the beginning of the next great bull market."

With so much overvaluation going on, “the simple arithmetic suggests you'll either have a dismal return forever, or you'll have a nice bear market and then a normal return,” he cautioned. “And the nice bear market will be hopefully less than a 50% decline, but it won't be a huge amount less than 50% from the peak in real terms," Grantham stressed.

That’s what happens when there’s so much pressure on a very complicated financial system. At some point, things start to break. The pattern is very clear – it is always when everybody seems too distracted to pay attention to the signals that a disaster starts to unfold."
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The Daily "Near You?"

Malton, United Kingdom. Thanks for stopping by!

Jim Kunstler, "Here We Go Loop-de-Loop"

"Here We Go Loop-de-Loop"
By Jim Kunstler

“Palestine is not Ukraine. If America intervenes directly, all American locations in the region will become legitimate targets of the resistance axis and will face our attacks. And on this day there will be no red line left.” - Hezbollah Official Statement

"You know, of course, that the CIA’s job is to detect sinister doings in other countries, especially as they might affect our own country. Looks like they missed something lately in the spook-filled space between Iran and Israel. Do you suppose they’re too busy running Facebook? And their domestic companion, the FBI, has been working overtime for years now, between their mighty labors concocting RussiaGate and the current program to root out election deniers and other seditious riffraff - while millions of sketchy mutts from here, there, and everywhere in the world scuttle over our border with Mexico and decant across our fruited plains - with assistance, you understand, from our own border officials - and, yet, no questions asked. Here’s a free phone and an auto-refilling debit card. Have a nice day in Skokie, Plattsburgh, or wherever! And don’t forget to send in your court appearance forms by the 2030 deadline!

So, it came as a big surprise when southern Israel was overrun by Hamas dudes in tricked-out pickup trucks and para-gliders on Saturday, who carried home hundreds of nubile young women to have sport with, after slaughtering hundreds more people of all ages, like rampaging bronze age Philistines. That fresh enormity is, shall we say, quite a ways from resolution at this time. I’ll tell you what will be an even bigger surprise, though: when some organized unit of those aforesaid mutts of unknown origin who snuck across our border sets off something like a dirty bomb in New York, Los Angeles, or Washington DC. Or takes over a nuclear power station. Or… well, I wouldn’t want to put any ideas in a bad actor’s head. But you get the picture, I’m sure.

So, we’re in something that smells like uncharted territory this autumn Monday, and events are galloping faster than anyone can process. The scene looks a little bit like World War Three. At least any child of twelve could game it out that way in three easy steps. Say, the chief mullah in Teheran issues some crude remark about how Israel had it coming, yadda yadda … and the IDF forthwith fires a cruise missile up his qabaa… and next thing you know, so many mushroom clouds rise over the Levant that it looks like a shitake farm.

All this while the USA struggles to restore its political mental health after years of domestic abuse at the hands of our own government. A big question here is what kind of correction will it require to straighten out that abusive government… or can anything at all avail before having to shred the whole goshdarn operation and start over? Quien sabe? (As they say in Plattsburgh nowadays.)

I’m confident that Congress will sort out this new Speaker business in short order, now that the world appears to light up. But what of its current projects? For instance, the inquiry into the darkish business ventures of the Biden Family, Inc., and what to do about it? That look-see is tending toward a picture that shows an appalling connection between the Bidens’ lustful chasing of global main chances and the horrifying demolition of Ukraine currently ongoing. If it’s not already obvious to a majority of USA adults that “Joe Biden,” the cats-paw in the White House, must go, it will be in a matter of weeks as the bank records step into the spotlight and speak for themselves.

Are you ready for President Kamala and government-by-word-salad? E.g.: “It’s very important, as you’ve heard from so many incredible leaders, for us at every moment in time, and certainly this one, to seize the moment of time in which we exist, in our present, and be able to contextualize it, understand where we exist in history and in the moment as it relates not only to the past but the future,” she said. Doctoral dissertations will be penned explicating that mouthful for years to come (where and whenever those years might be located on time’s mystifying spectrum).

As for Congress and its grim duties, there is also the matter of the current laughable budget resolution running out again just before Thanksgiving. Work to do! The USA is in such a desperate debt and bond issuance dilemma that it’s like a trapped wild animal faced with having to chew off its own leg to escape death. And the cause of that dilemma is our legislature’s failure to control the nation’s spending. As America’s Venerable Bede, Sen. Everett Dirksen (d. 1969) used to say: “A billion here, a billion there, pretty soon you’re talking about real money.” Well, that game is drawing to a close. Reality is finally asserting its rugged old self to say that our country is as broke as broke can be and there has to be a painful adjustment. It will be presented as a Hobson’s choice: you can have no money… or you can have plenty of money that’s worthless. What’s it gonna be?

I’d guess that the new Speaker will have to be Mr. Jordan of Ohio, because at this time Congress badly needs to be led by someone who at least appears to be muscular and confident. One has to wonder, though, that even muscles and confidence might not be enough in the current situation — that moment of time in which we exist, as the Veep put it so well. And yet, so many things are happening at once that it feels like someone up there is monkeying with time itself. Or perhaps a giant blob has gummed up its wheels. But, really, I must ask: are you not a little tired of being a country that doesn’t know what it’s doing?"
The full title of Kunstler's website really does say it all...

"It Strikes Me...

“It goes against the American storytelling grain to have someone in a situation he can’t get out of, but I think this is very usual in life. There are people, particularly dumb people, who are in terrible trouble and never get out of it, because they’re not intelligent enough. It strikes me as gruesome and comical that in our culture we have an expectation that man can always solve his problems. This is so untrue that it makes me want to cry - or laugh.”
- Kurt Vonnegut

Judge Napolitano, "Col. Doug Macgregor, Prof. Jeffrey Sachs"

Judge Napolitano - Judging Freedom, PM 10/9/23
"Can the US Support Two Wars? w/Col Doug Macgregor"
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Judge Napolitano - Judging Freedom, PM 10/9/23
"NATO, Ukraine, and Israel w/Prof. Jeffrey Sachs"
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Redacted, Judge Napolitano, "Israel - Hamas War 10/9/23"

Full screen recommended.
Redacted, 10/9/23
"Egypt Just Dropped A Bombshell in the Israel - Hamas War"
"Egypt just did something unexpected in the conflict between
 Israel and Hamas. Clayton Morris is in Northern Egypt with this report."
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Judge Napolitano - Judging Freedom, PM 10/9/23
"How Long In Gaza? w/Larry Johnson fmr CIA"
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"How It Really Is"

Dan, I Allegedly, "AM/PM 10/9/23"

Full screen recommended.
Dan, I Allegedly AM 10/9/23
"You Need to Steer Clear of This"
"Wow. You can’t make this up. Today we’re going to learn 
about what could very well be the worst company ever."
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Full screen recommended.
Dan, I Allegedly PM 10/9/23
"Your Personal Data is Being Sold"
"We have heard about so many ransom ware and hacking attacks lately. Now it’s getting worse because they are selling your personal data on the black market. You need to protect yourself."
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Bill Bonner, "Power & Glory"

Statue of Pericles, 
general of Athens during its golden age.
"Power & Glory"
Warfare, welfare and the cost of getting hooked on the empire drug...
by Bill Bonner

Poitou, France - "Another war! Another flare up in a long-bubbling cauldron…Arabs vs. Jews in the Levant. Since 2008, the conflict has cost the lives of more than 3,500 people – almost all of them civilians. Not to worry, a US carrier “strike group” is now steaming across the Mediterranean. Not to protect innocent civilians…but to back up Israeli soldiers with even more firepower.

Who’s right? Who’s wrong? Who cares! That is what we learn from the spoofy “Report from Iron Mountain.” Like dogs and fleas, drunk drivers and lampposts, sinners and Hell – war and government go together. And now, the US is on course for a terrific smash-up. Its foreign policy spending is way out of line…at $1.5 trillion per year – an amount that is roughly the same as the deficit.

The Empire Drug: Unlike the welfare states of Europe, the US is more of a traditional warfare state. Most out-of-control in a whole out-of-control budget is its military spending. And since the US is cursed with a currency it can create at will, this inevitably means that it will try to ‘print’ its way out of its financial troubles, adding inflation, economic depression…and political turmoil (perhaps a revolution or a secession movement) into the mix of chaos and decline. The disaster, in other words, is likely to stretch across the whole nine yards of modern public policy catastrophes – finance, economics, and politics.

This is, of course, just a guess. And it will take many years to find out how good or bad a guess it was. But we just wanted to start out the week on a cheery note.

Also on a cheery note, at least one presidential candidate has placed himself clearly at odds with the War & Empire agenda – Robert F. Kennedy Jr. He is hoping to pick up where his uncle, John F. Kennedy, left things when he was assassinated in Dallas in 1963. Our sources tell us that RFK, Jr. is going to break away from the Democratic Party in a speech, live streamed today from Philadelphia at noon. We wish him luck. But we give him low odds of success. People don’t usually give up the Power&Glory Empire drug until after they’ve hit bottom. We have a ways to go. And today, let’s ask ourselves: no one would want the scenario we outline above. So, why don’t ‘we’ make sure it doesn’t happen?

A Stiff Resolve: We could begin by noting that if leaders could prevent public policy disasters, they would never happen. Nobody wanted the Great Depression or the 16 million deaths in WWI. They happened anyway. Our hypothesis is that leaders (or more broadly, elites) don’t stop major disasters; they cause them. War is catnip to politicians. It stirs them to speechifying – ‘we will stop them on the beaches’….’four score and seven years ago’ – and provides them an opportunity not only to grab more fame and power, but also to exhibit their extraordinary strategic genius.

Probably the most notable of the genre was Pericles’ Funeral Oration, which Lincoln seemed to use as a model for his Gettysburg Address. Pericles began by telling the crowd how great the Athenians were – their government…their customs and so forth. Then he got down to business. The dead men (Athenians who died in their war with Sparta) died so that his great nation should not perish. And to that end: "So died these men as becomes Athenians. You, their survivors, must determine to have as unfaltering a resolution in the field, though you may pray that it may have a happier outcome."

The effect of Pericles’ speech was to stiffen Athens’ resolve to keep fighting. At the time, 431 BC, Spartan hoplites were outside the walls of the city. Crowded within the walls were the farmers from the surrounding territory, becoming increasingly weary of the war. They wanted peace so they could get back to their crops.

Pericles was a general as well as a politician. He exhorted the people to keep the faith…and to continue the war. But a plague soon ran through the packed city; approximately half the population of Athens died, including Pericles. The Athenians didn’t give up. The war went on until a Spartan general, Lysander, destroyed the Athenian fleet in 405 BC…and then Athens itself, facing siege and starvation, surrendered the following year.

Laughable Nonsense: And here, we pause to laugh. The ‘causes’ for war are always spelled out by the politicians and the press in the loftiest terms – to ‘free the Holy Land’…to ‘prevent foreign aggression’…to ‘make the world safe for democracy’…to “provide ‘living room’ for the German people.’ It is always laughable nonsense. In the current proxy war in the Ukraine, for example, the US claims to be defending a ‘rules based order’ – that is, a world of laws, not of brute force.

Invading another country is outlawed by the UN Charter, and the Nuremberg Tribunal. And in the US, the War Clause of the US Constitution also forbids an invasion not specifically backed by Congress with a Declaration of War. But in the real world of megapolitics, when you are powerful enough, you make the rules yourself. So it was that the US invaded Iraq in violation of all the rules – even its own constitution – and with much more firepower, death and destruction than Russia has used in Ukraine. The purpose of rules is to settle disputes without war. War though, has a purpose of its own. It doesn’t need a real dispute. And when it is ready, no rules will stop it.

Tomorrow…hate crimes! Stay tuned."

Scott Ritter, "Israel’s Massive Intelligence Failure"

Palestinians near the rubble of an Israeli missile strike on Gaza, Oct. 8
"Israel’s Massive Intelligence Failure"
by Scott Ritter

"As the scope and scale of the Hamas surprise attack on Israel becomes clearer, one question emerges more than any other from the detritus of the battlefield: How did such a massive, complex undertaking escape the notice of Israel’s vaunted intelligence service? An equally important question is why wasn’t this attack detected by the U.S. intelligence community as well, given the massive expenditures made in countering terrorism since the terrorist attacks on the U.S. homeland of September 11, 2001?

The answers lie in the history of success Israel has enjoyed in identifying and responding to Hamas operations in the past, success which manifested itself into a culture of complacency, resulting in the deaths of hundreds of Israeli citizens - the very people the intelligence services were dedicated to protect. The fact that this attack took place 50 years and a day from when Israel suffered what had been - up until this moment - Israel’s greatest intelligence failure, the 1973 Yom Kippur War, only reinforces the depth of the failure that transpired.

Findings of the Agranat Commission: In the weeks following the end of the Yom Kippur War, the government of Prime Minister Golda Meir formed a commission of inquiry headed by Shimon Agranat, the chief justice of the Israeli Supreme Court. The Agranat Commission, as it was subsequently called, focused on the flawed analysis conducted by Israeli military intelligence directorate (AMAN), with particular attention being placed on Eli Zeira, the head of AMAN’s Research and Analysis Department, or RAD.

Zeira was the principal architect of what became known as “the concept”, a dogmatic adherence to an analytical paradigm which had, until October 1973, proven itself reliable in the years that followed Israel’s victory in the six-day war of 1967. The “concept” held that the Arab armies, while possessing a limited ability to initiate a war with Israel, were not ready for an all-out war, and as such would avoid engaging in actions which logically would lead to such an all-out war with Israel.

The analysts of RAD were criticized for an over reliance on inductive reasoning and intuition and failing to use structured deductive methodology. One of the conclusions reached by the Agranat Commission was the need for so-called structured analytical techniques, in particular what is known as “Analysis of Competing Hypotheses.” This manifested itself in the development within AMAN of a culture of contrarian thinking, built around critical thinking designed to challenge unitary assessments and groupthink.

The United States also examined the root causes of its intelligence failures regarding the Yom Kippur War. A multi-agency assessment of the October 1973 intelligence failure published by the U.S. in December of that year concluded that the issue at that time wasn’t the inability to collect or even accurately assess intelligence data - in fact, the report stated, evidence of an a surprise attack by the armies of Egypt and Syria had been “plentiful, ominous, and often accurate” and that U.S. intelligence analysts debated and wrote about this evidence. In the end, the December 1979 report said however, that the U.S. analysts - like their Israeli counterparts - had concluded there would be no attack, conclusions which, as the post-mortem noted, “were - quite simply, obviously, and starkly - wrong.”

Some of the critical issues which emerged from this assessment included the over-reliance by U.S. analysts on Israel to know its own security posture; analysts being married to preconceived notions about Arab military capabilities; a tendency for plausible interpretation of the same evidence; and a failure by analysts to challenge the “rational actor” fallacy.

Israel and US at Odds: In the years that followed the Yom Kippur War, the intelligence communities of Israel and the U.S. established their own gravitational “pull”, with Israel employing a methodology of threat predictions and assessments that underpinned decisions to intervene militarily in Lebanon, often putting it at odds with U.S. policy makers.

Policy in Washington was made based on briefings by U.S. intelligence analysts who had developed a culture of downplaying Israeli intelligence in favor of their own. The resulting gap in analytical approaches and conclusions led to the intelligence crisis of 1990-1991 surrounding the threat posed by Iraqi SCUD missiles. This crisis was predicated on the differences of priorities placed on the SCUD threat, both in the lead up to, and execution (regardless of the military objectives) of Operation Desert Storm, the U.S.-led campaign to evict Iraqi forces from Kuwait conducted in January-February 1991.

These differences only became exacerbated in the years that followed the end of that conflict, when both the U.S. and Israel struggled with how best to respond to the threat of Iraqi weapons of mass destruction, including its SCUD missiles.

I was at the center of the U.S.-Israeli intelligence controversy during this time, having been brought into the United Nations to create an independent intelligence capability to support the inspection-based effort to disarm Iraq. From 1991 until 1998, I conducted sensitive liaison with both the C.I.A. and AMAN, and often found myself caught in the middle of the clash of cultures that had developed between the two.

This clash sometimes took the form of vaudeville comedy, such as the time I had to be ushered out the back door of an AMAN building to avoid being seen by the C.I.A.’s chief of station, who had arrived for the purpose of finding out what intelligence the Israelis were sharing with me.

On another occasion, I had run into a team of C.I.A. analysts on the streets of Tel Aviv who had been advising me on a particular inspection that was being planned. They were critical of the Israeli intelligence I was using to support this mission. The purpose of their visit was to put pressure on Israel to stop the flow of information to the U.N. through me, arguing that, as a U.S. citizen, I should be getting my information from U.S. sources, and therefore Israel should flow all intelligence to me through them. Our meeting, it turned out, was no “chance” encounter, but rather set up by the Israelis, without my knowledge, so that I would be aware of the duplicity of my U.S. counterparts.

Such duplicity led to interactions of a more ominous character, with the C.I.A. green-lighting an F.B.I. investigation into allegations that I was spying on behalf of Israel. The U.S. actions had nothing to do with genuine concerns of espionage on my part, but rather were part of a larger campaign designed to minimize the influence of Israeli intelligence upon a U.N. inspection effort that the U.S. believed should instead be marching to the beat of a drum dictated by U.S. intelligence.

CIA vs. Israeli Intelligence: The animus that existed within the C.I.A. regarding Israeli intelligence was real and was grounded in the differing policy approaches taken by the two nations regarding the role of weapons inspectors and Iraqi WMD. The U.S. was engaged in a policy of regime change in Iraq and was using weapons inspections as a vehicle to continue economic sanctions designed to contain the government of Saddam Hussein, and as a source of unique intelligence that could enable the U.S. to carry out operations designed to remove Saddam Hussein from power.

The Israelis were singularly focused on the security of Israel. While the Israelis had entertained a regime change option in the first two years following the end of Desert Storm, by 1994 they had determined that the best way forward was to work with the U.N. inspectors to achieve the verifiable elimination of Iraq’s weapons of mass destruction, including the SCUD missiles.

One of the starker manifestations of the difference in approaches taken by the C.I.A. and Israel dealt with the effort I had led in accounting for Iraq’s SCUD missile arsenal. In November 1993, I was summoned to the White House to brief a C.I.A. team, headed by Martin Indyk and Bruce Reidel, on my investigation, which had concluded that all of Iraq’s missiles had been accounted for.

The C.I.A. rejected my findings, declaring that their assessment of Iraqi SCUD missile capability was that Iraq maintained a force of 12-20 missiles along with several launchers, and this assessment would never change, irrespective of my work as an inspector. By contrast, when I visited Israel for the first time, in October 1994, I had been approached by the head of AMAN, Uri Saguy, about my assessment regarding the accounting of Iraq’s SCUD missiles. I gave the AMAN director the same briefing as I gave the C.I.A. Saguy, accompanied by the head of RAD at that time, Yaakov Amidror, accepted my conclusions in their entirety, and used them to brief the Israeli prime minister.

My experience with Israeli intelligence is far more revealing than my contemporaneous experience with the C.I.A., if for no other reason than the Israelis were trying to solve an intelligence problem (what was the real status of Iraqi weapons of mass destruction), while the U.S. was trying to implement a political decision regarding regime change in Iraq.

Between 1994 and 1998, I conducted 14 trips to Israel where I worked closely with AMAN, personally briefing two directors (Saguy and, from 1995, Moshe Ya’alon), two chiefs of RAD (Yaakov Amidror and Amos Gilad), and developed a close working relationship with intelligence analysts and operators from several Israeli intelligence organizations, including the legendary Unit 8200 - Israel’s signals intelligence unit.

A Rational Actor: The Israelis briefed me extensively on their post-Yom Kippur War methodology, especially their new contrarian approach to analysis. One of the more interesting aspects of this approach was the creation of a post, known within AMAN as “the doubting Thomas” (derived from the New Testament of the Bible, when Thomas - one of the 12 apostles of Jesus - would not believe that Jesus had come back from the dead until he saw him.)

I was introduced to the colonel who had this thankless task, explaining to me how he would receive every briefing before it was given to the director and proceeded to question conclusions and assertions. His queries had to be answered to his satisfaction before the briefing could be sent forward.

It was this colonel who helped formulate the Israeli conclusion that Saddam Hussein was a rational actor who would not seek a larger conflict with Israel that could result in the destruction of his nation - ironically embracing the same “rational actor” conclusions that had been erroneously reached in the lead up to the Yom Kippur War. On this occasion, the analysis was correct.

The analysis produced by “the doubting Thomas” allowed the Israelis to consider the possibility of a change in approach regarding Saddam Hussein. It did not, however, reduce the vigilance of Israeli intelligence in making sure that this assessment was, and remained, accurate.

I worked closely with AMAN and Unit 8200 to put together an intelligence collection plan which used imagery, technical, human, and signals intelligence to ascertain Iraqi capabilities and intent. I personally witnessed the diligence with which the Israeli analysts and collectors pursued their mission. Literally no stone was left unturned, no thesis left unexplored.

In the end, the Israelis were able to back up Uri Saguy’s embrace of my 1994 conclusion regarding the accounting of Iraqi SCUD missiles with their own detailed analysis derived from intelligence collected through their own means, as well as that collected through collaboration with myself and other U.N. inspectors. This success proved to be fatal to Israel and contributed to the failure of both U.S. and Israeli intelligence to predict the 2023 Yom Kippur-like attacks by Hamas.

In 1998 Yaakov Amidror was replaced as the head of RAD by Amos Gilad. Where Amidror fully embraced the contrarian approach taken by RAD and AMAN when it came to producing intelligence analysis, Gilad was of a different mind, believing that the Agranat Commission report had constrained Israeli intelligence from adapting to new challenges. He believed that the trauma of Yom Kippur had resulted in AMAN adopting a conservative and minimalist, analytical approach, focusing on analyzing capabilities while neglecting intentions, resulting in over-cautious conclusions.

Not a Rational Actor: Gilad was more inclined to embrace the C.I.A. assessments of the threat posed by Saddam Hussein and worked with the C.I.A. to dismantle the collaboration between the U.N. inspectors and AMAN. In the aftermath of the Sept. 11, 2001, terrorist attacks on the United States, Gilad had thrown out the previous conclusion that Saddam was a rational actor and, as such, had posed no threat to Israel (an assessment backed up by the conclusion reached through the extensive cooperation between the U.N. inspectors and AMAN that Iraq did not possess viable quantities of weapons of mass destruction, and that there was no effort by Iraq to meaningfully reconstitute the industrial capability to manufacture weapons of mass destruction.)

Instead, Gilad painted a fact-free picture that postulated Saddam as a threat worthy of military intervention, thereby helping underpin the U.S. intelligence that justified a U.S.-led invasion of Iraq. The fact that the intelligence regarding Iraqi weapons of mass destruction capabilities that was used to justify the U.S. invasion of Iraq was subsequently proven to be wrong did not undermine the newfound ardor between U.S. and Israeli intelligence. The political goal of regime change had been accomplished, and as such it did not matter that the analytical product that had been relied upon for the flawed assessments was wrong.

In the lead-up to the 1973 Yom Kippur War, AMAN had disregarded a plethora of intelligence reporting predicting the Arab attacks. Because the consequences of this failure had resulted in an Israeli political embarrassment, it was called out and remediation undertaken.

No Embarrassment, Unlike Yom Kippur: The lead-up to the 2003 invasion of Iraq was different. AMAN had disregarded its own considerable body of evidence, accumulated through years of close cooperation with U.N. weapons inspectors that showed Iraq did not possess meaningful quantities of weapons of mass destruction, nor the desire to reconstitute the production capabilities necessary for their reacquisition. But because the consequences of this failure did not manifest in political embarrassment in Israel, unlike with Yom Kippur, this failure was ignored.

Indeed, the principal culprit for this failure, Amos Gilad, was elevated in 2003 to head the powerful Political-Military Affairs Bureau, a position he held until 2017. During his tenure, Gilad was said to enjoy more influence over policy than anyone else. He helped strengthen ties between the U.S. and Israeli intelligence communities and returned Israel to the pre-Yom Kippur War practice of over reliance on inductive reasoning and intuition void of structured deductive methodology. One of the major consequences of Gilad’s long tenure as head of the Political Military Affairs Bureau was the re-subordination of the U.S. intelligence community to Israeli analytical judgements on the grounds that Israel knew best the threats it faced.

This reality was manifest in the words of U.S. National Security Advisor Jake Sullivan, speaking at The Atlantic Festival a week before the Hamas attacks, when he optimistically concluded that, “The Middle East region is quieter today than it has been in two decades,” adding that “the amount of time I have to spend on crisis and conflict in the Middle East today, compared to any of my predecessors going back to 9/11, is significantly reduced.” The foundation of Sullivan’s errant optimism seemed to be a joint U.S.-Israeli policy that sought the normalization of relations between Israel and the Arab world, first and foremost with Saudi Arabia.

Israeli Prime Minister Benjamin Netanyahu, who for more than three decades has been the poster child for Israeli security, had bought into the idea of normalization with the Saudis as the key component of a strategic realignment of power in the Middle East away from Iran, and toward Israel. This faith in the imperative of normalization was a vivid demonstration of how Israel’s new emphasis on intention over capabilities blinded it to the reality of the threats emanating out of Gaza.

Likewise, the fact that the U.S. had once again subordinated its threat analysis to Israeli conclusions - especially in circumstances where Israel saw no immediate danger - meant the U.S. did not spend too much time looking for indications that might contradict the Israeli conclusions.

Outsmarting AI: But perhaps the largest source of the Israeli intelligence failure regarding Hamas was the over reliance Israel put on intelligence collection and analysis itself. Gaza and Hamas have been a thorn in the side of Israel for years, and as such have attracted the overwhelming attention of the Israeli intelligence and security services. Israel has perfected the art of human intelligence against the Hamas target, with a proven track record of placing agents deep inside the Hamas decision-making hierarchy.

Unit 8200 likewise has spent billions of dollars creating intelligence collection capabilities which vacuum up every piece of digital data coming out of Gaza - cell phone calls, e-mails, and SMS texting. Gaza is the most photographed place on the planet, and between satellite imagery, drones, and CCTV, every square meter of Gaza is estimated to be imaged every 10 minutes.

This amount of data is overwhelming for standard analysis techniques relying on the human mind. To compensate for this, Israel developed a huge artificial intelligence (AI) capability which it then weaponized against Hamas in the short but deadly 11-day conflict with Hamas in 2021, named Guardian of the Walls.

Unit 8200 developed several unique algorithms which used immense databases derived from years of raw intelligence data collected from every possible source of information. Building upon concepts of machine learning and algorithm-driven warfare that have been at the forefront of Israeli military research and development for decades, Israeli intelligence was able to use AI to not only select targets, but also to anticipate Hamas actions. This ability to predict the future, so to speak, helped shape Israeli assessments about Hamas’s intent in the lead up to the 2023 Yom Kippur attacks.

Israel’s fatal mistake was to openly brag about the role AI played in Operation Guardian of the Walls. Hamas was apparently able to take control of the flow of information being collected by Israel. There has been much speculation about Hamas “going dark” regarding cell phone and computer usage to deny Israel the data that is contained in those means of communication. But “going dark” would have, by itself, been an intelligence indicator, one that AI would have certainly picked up.

Instead, it’s highly probable that Hamas maintained an elaborate communications deception plan, maintaining a level of communications sufficient in quantity and quality to avoid being singled out by AI - and by Israeli analysts deviating from the norm. In the same way, Hamas would likely have maintained its physical profile of movement and activity to keep the Israeli AI algorithms satisfied that nothing strange was afoot. This also meant any activity - such as training related to paragliding or amphibious operations - that might be detected and flagged by Israeli AI was done to avoid detection.

The Israelis had become prisoners of their own successes in intelligence collection. By producing more data than standard human-based analytical methodologies could handle, the Israelis turned to AI for assistance and, because of the success of AI during the 2021 operations against Gaza, developed an over reliance upon the computer-based algorithms for operational and analytical purposes.

Turning from the Contrarian: The origins of Israel’s massive intelligence failure regarding the 2023 Hamas Yom Kippur attacks can be traced to the decision by Amod Gilad to divorce Israel from the legacy of contrarian analysis born of the intelligence failure of the 1973 Yom Kippur War that produced the same over-reliance on inductive reasoning and intuition, which led to the failure to begin with.

AI is only as good as the data and algorithms used to produce the reports. If the human component of AI - those who program the algorithms - are corrupted by flawed analytical methodologies, then so, too, will the AI product, which replicates these methodologies on a larger scale.

In Volume 1 of "The Gathering Storm," Winston Churchill’s comprehensive history of the Second World, the British World War II leader quips, “It is a joke in Britain to say that the War Office is always preparing for the last war.” Human nature being what it is, the same quip can be tragically applied to the Israeli military and intelligence services in the lead up to the 2023 Yom Kippur attacks by Hamas. It appears that the Israelis were singularly focused on the successes they enjoyed in the 2021 Operation Guardian Walls, and the role played by AI in bringing about that success.

Denied the benefit of the contrarian approach to analysis put in place in the aftermath of the Agranat Commission, Israel set itself up for failure by not imagining a scenario where Hamas would capitalize upon the Israeli over-reliance on AI, corrupting the algorithms in a way that blinded the computers, and their human programmers, to Hamas’ true intention and capability. Hamas was able to generate a veritable Ghost in the Machine, corrupting Israeli AI and setting up the Israeli people and military for one of the most tragic chapters in the history of the Israeli nation."

Judge Napolitano, "Mossad and CIA: Eyes Open or Closed? w/Ray McGovern fmr CIA"

Full screen recommended
Judge Napolitano - Judging Freedom, AM 10/9/23
"Mossad and CIA: Eyes Open or Closed? 
w/Ray McGovern fmr CIA"
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"Adventures With Danno, And Elsewhere"

Full screen recommended.
Adventures With Danno, 10/9/23
"Frustrating Price Increases At Walmart! 
What's Next? What's Coming?"
"In today's vlog, we are at Walmart and are noticing some frustrating price increases on groceries! This is not good as grocery prices have already reached an all-time high! It's getting rough out here as more and more families struggle to put food on the table!"
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o
Meanwhile, elsewhere...
Full screen recommended.
Travelling With Russell,10/9/23
"Russian Typical (24/7) Supermarket Tour: Lenta"
"What does a Russian typical Supermarket really look like inside. Take a look with me at Lenta Hypermarket in Moscow, Russia to find out. This 24 hour per day Russian typical Supermarket is one of the largest in all of Russia. Discover what is for sale inside. "
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"Economic Market Snapshot 10/9/23"

"Economic Market Snapshot 10/9/23"
o
Market Data Center, Live Updates:
Down the rabbit hole of psychopathic greed and insanity...
Only the consequences are real - to you!
"It's a Big Club, and you ain't in it. 
You and I are not in the Big Club."
- George Carlin
A comprehensive, essential daily read.
Financial Stress Index

"The OFR Financial Stress Index (OFR FSI) is a daily market-based snapshot of stress in global financial markets. It is constructed from 33 financial market variables, such as yield spreads, valuation measures, and interest rates. The OFR FSI is positive when stress levels are above average, and negative when stress levels are below average. The OFR FSI incorporates five categories of indicators: creditequity valuationfunding, safe assets and volatility. The FSI shows stress contributions by three regions: United Statesother advanced economies, and emerging markets."
Job cuts and much more.
Commentary, highly recommended:
"The more I see of the monied classes,
the better I understand the guillotine."
- George Bernard Shaw
Oh yeah... beyond words. Any I know anyway...
And now... The End Game...
o

Gregory Mannarino, "AM/PM 10/9/23"

Gregory Mannarino, AM 10/9/23
"Alert! Watch For A Major False Flag Event On US Soil, 
We Are Being Boxed In"
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o
Gregory Mannarino, PM 10/9/23
"Expect War To Expand Rapidly, 
Many People Will Die!"
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Sunday, October 8, 2023

"Alert! Russian Cyberattack On Israel; US Sends Aircraft Carrier For War With Iran/Russia"

Full screen recommended.
Canadian Prepper, 10/8/23
"Alert! Russian Cyberattack On Israel; 
US Sends Aircraft Carrier For War With Iran/Russia"
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o
"Iran Helped Hamas 'Plot Israel Attack Over Several Weeks',
 Gave Green Light, WSJ Reports"
"Officers of Iran’s Islamic Revolutionary Guard Corps had worked with Hamas since August to devise the air, land and sea incursions, and gave the green light for the assault last MondayA direct Iranian role would take Tehran’s long-running conflict with Israel out of the shadows, raising the risk of broader conflict in the Middle East. Senior Israeli security officials have pledged to strike at Iran’s leadership if Tehran is found responsible for killing Israelis. The IRGC’s broader plan is to create a multi-front threat that can strangle Israel from all sides - Hezbollah and the Popular Front for the Liberation of Palestine in the north and Palestinian Islamic Jihad and Hamas in Gaza and the West Bank, according to the senior Hamas and Hezbollah members and an Iranian official."

Remember Hezbollah has 150,000 missiles...and if Israel strikes Tehran they have 3,000 long range ballistic missiles and tens of thousands of shorter range missiles to retaliate with, and Hezbollah will instantly launch them all onto Israel. What then? Remember Israel's Samson Option...

Jeremiah Babe, "Warning! Red Dawn Events, All Hell Is Breaking Loose"

Full screen recommended.
Jeremiah Babe, 10/8/23
"Warning! Red Dawn Events, All Hell Is Breaking Loose"
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Musical Interlude: Deuter, "Atmospheres"

"Relax, find yourself in enchanted and blissful serenity..."
Deuter, "Atmospheres"

"A Look to the Heavens"

“The constellation of Orion holds much more than three stars in a row. A deep exposure shows everything from dark nebula to star clusters, all embedded in an extended patch of gaseous wisps in the greater Orion Molecular Cloud Complex. The brightest three stars on the far left are indeed the famous three stars that make up the belt of Orion. Just below Alnitak, the lowest of the three belt stars, is the Flame Nebula, glowing with excited hydrogen gas and immersed in filaments of dark brown dust.
 
Below the frame center and just to the right of Alnitak lies the Horsehead Nebula, a dark indentation of dense dust that has perhaps the most recognized nebular shapes on the sky. On the upper right lies M42, the Orion Nebula, an energetic caldron of tumultuous gas, visible to the unaided eye, that is giving birth to a new open cluster of stars. Immediately to the left of M42 is a prominent bluish reflection nebula sometimes called the Running Man that houses many bright blue stars. The above image, a digitally stitched composite taken over several nights, covers an area with objects that are roughly 1,500 light years away and spans about 75 light years.”

Free Download: Dietrich Bonhoeffer, “Letters and Papers From Prison”

“The fact that the foolish person is often stubborn must not blind us to the fact that he is not independent. In conversation with him, one virtually feels that one is dealing not at all with him as a person, but with slogans, catchwords, and the like that have taken possession of him. He is under a spell, blinded, misused, and abused in his very being. Having thus become a mindless tool, the foolish person will also be capable of any evil and at the same time incapable of seeing that it is evil. This is where the danger of diabolical misuse lurks, for it is this that can once and for all destroy human beings. “

Dietrich Bonhoeffer (Feb. 4, 1906 - April 9, 1945) was a Protestant Lutheran Pastor, theologian, and active in the German resistance to the policies of Hitler and Nazism. Due to his opposition to the Nazi regime, Bonhoeffer was arrested and executed at the Flossian concentration camp, during the last month of the war.
- Dietrich Bonhoeffer, “Letters and Papers From Prison”

Freely download “Letters and Papers From Prison”, by Dietrich Bonhoeffer:

"I Pity You, Too..."

“Said a philosopher to a street sweeper, “I pity you. Yours is a hard and dirty task.” And the street sweeper said, “Thank you, sir. But tell me, what is your task?” And the philosopher answered saying, “I study man’s mind, his deeds and his desires.” Then the street sweeper went on with his sweeping and said with a smile, “I pity you, too.”
- Kahlil Gibran

"We Are All Like Elephants"

"We Are All Like Elephants"
by Marc Chernoff

"In many ways, our past experiences have conditioned us to believe that we are less capable than we are. All too often we let the rejections of our past dictate every move we make. We literally do not know ourselves to be any better than what some opinionated person or narrow circumstance once told us was true. Of course, an old rejection doesn't mean we aren't good enough; it just means some person or circumstance from our past failed to align with what we had to offer at the time. But somehow we don't see it that way - we hit a mental barricade that stops us in our tracks.

This is one of the most common and damaging thought patterns we as human beings succumb to. Even though we intellectually know that we're gradually growing stronger than we were in the past, our subconscious mind often forgets that our capabilities have grown. Let me give you a quick metaphorical example.

Zookeepers typically strap a thin metal chain to a grown elephants leg and then attach the other end to a small wooden peg that's hammered into the ground. The 10-foot tall, 10,000-pound elephant could easily snap the chain, uproot the wooden peg and escape to freedom with minimal effort. But it doesn't. In fact the elephant never even tries. The worlds most powerful land animal, which can uproot a big tree as easily as you could break a toothpick, remains defeated by a small wooden peg and a flimsy chain.

Why? Because when the elephant was a baby, its trainers used the exact same methods to domesticate it. A thin chain was strapped around its leg and the other end of the chain was tied to a wooden peg in the ground. At the time, the chain and peg were strong enough to restrain the baby elephant. When it tried to break away, the metal chain would pull it back. Sometimes, tempted by the world it could see in the distance, the elephant would pull harder. But the chain would not budge, and soon the baby elephant realized trying to escape was not possible. So it stopped trying.

And now that the elephant is all grown up, it sees the chain and the peg and it remembers what it learned as a baby - the chain and peg are impossible to escape. Of course this is no longer true, but it doesn't matter. It doesn't matter that the 200-pound baby is now a 10,000-pound powerhouse. The elephants self-limiting thoughts and beliefs prevail.

If you think about it, we are all like elephants. We all have incredible power inside us. And certainly, we have our own chains and pegs - the self-limiting thoughts and beliefs that hold us back. Sometimes it's a childhood experience or an old failure. Sometimes it's something we were told when we were a little younger. The key thing to realize here is this: We need to learn from the past, but be ready to update what we learned based on how our circumstances have changed (as they constantly do)." 

The Daily "Near You?"

Mira Loma, California, USA. Thanks for stopping by!

'We Don't Have A Clue..."

“We don’t have a clue what’s really going down, we just kid ourselves that we’re in control of our lives while a paper’s thickness away things that would drive us mad if we thought about them for too long play with us, and move us around from room to room, and put us away at night when they’re tired, or bored.”
- Neil Gaiman

"Perfect Storm Hit Banks And The Collapse Nobody Thinks Possible Is Already Upon Us"

Full screen recommended.
Epic Economist 10/8/23
"Perfect Storm Hit Banks And The Collapse
Nobody Thinks Possible Is Already Upon Us"

"A perfect storm is now hitting U.S. banks. New data reveals that the same distortions that preceded the Lehman collapse in 2008 and the failures of four major U.S. banks earlier this year are currently affecting hundreds of institutions, and creating a crisis that will impact our personal finances, thousands of U.S. businesses, and put the economy and financial markets at serious risk.

Current problems in the banking system are reviving uncomfortable memories of the global financial crisis, and the risks of widespread bank failures are higher than at any other period. That’s why Wall Street analysts are pointing the finger of blame to regulators once again. In a recent analysis published on Parade.com, financial experts Pam and Russ Martens exposed that U.S. regulators and the central bank are withholding important information about the real financial condition of several large financial institutions for over a year and a half not to alarm the public, and spark more bank runs and failures.

They discovered that on March 30, 2022, the Fed reported that unrealized losses on available-for-sale securities at the 25 largest U.S. banks were approaching the levels they had reached during the financial crisis in 2008. On that same day, the central bank stopped reporting data about the bank’s unrealized gains and losses on securities. It can’t be just a coincidence that this data series was halted right after the Fed started raising rates on March 17, 2022.

That made things exponentially worse for U.S. banks because they had loaded up on low-interest-rate Treasury securities and federal agency Mortgage-Backed Securities. They did so because their deposit balances had swollen to a historic level as a result of the trillions in stimulus payments that the federal government directly deposited into depositor accounts at banks during the health crisis. Back then, the pandemic led to mass business closings which negatively impacted business loan demand and made banks turn to government-backed bonds as a safe place to park the trillions of dollars in extra deposits. But these lost a good deal of value as interest rates were increased. Lenders ended up with paper losses, leaving investors unimpressed.

At this moment, nearly 200 banks are in danger of suffering the same woes as Silicon Valley Bank. If just 10 small and mid-sized banks fail in the months ahead, that could trigger a cascade of failures and that would bring down larger banks as well. In turn, a major credit crunch would make it impossible for businesses and consumers to access credit. In fact, a credit crisis is already in motion. Last week, bank credit fell further on a year-over-year basis. Meanwhile, corporate and personal bankruptcies are already spiking, and so are consumer debt delinquencies.

Many Americans already report that their access to credit has deteriorated in 2023, and they shouldn’t expect a reversal any time soon. On top of all that, more bank failures would certainly cause more bank runs on these vulnerable financial institutions, damaging confidence in the banking system and causing a broader panic. Ultimately, when lending dries up, that will weigh on the value of stocks, real estate, and other assets, and crimp overall demand - a recipe for a disastrous recession and the worst financial crisis in our lifetimes, just as the experts have been warning all along."
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"How It Really Is"