U.S. stocks were hammered on Monday, with benchmark indexes falling through key support levels after a gauge of factory activity disappointed, heightening concern about the economy before Friday’s monthly jobs report.

(Read more: The VIX is surging on market fear, but not loathing.)

Stocks had wavered ahead of the report that had U.S. manufacturing expanding at a substantially slower pace in January, driving overall factory activity to an eight-month low.

“A report like this scares people ahead of the payroll number on Friday,” said Andres Garcia-Amaya, global market strategist at J.P. Morgan Funds, who added the report’s soft new orders component was of particular concern.

“We had such a strong year last year there was complacency among investors,” who questioned whether they should take some profits or see if there were further reasons to invest in the U.S., with the trouble in emerging markets proving to be the initial catalyst for the steep selling in recent sessions, he added.

(See why: Bank of America pro believes the market dive is a ‘high-quality’ buying opportunity.)

Monday’s selling accelerated once stocks broke through support levels, which in the case of the S&P 500, was 1,770, wrote Bruce Bittles, chief investment strategist at RW Baird. The S&P’s next support is 1,708, said Bittles, who believes the final hour of trade will be telling.

(Watch Art Cashin on: Why stocks are getting slammed.)

“The significance of the ISM report is not lost on the markets that ar:e unsure how the new Fed Chair will respond. Janet Yellen comes before Congress on Feb. 11,” he added.


Read more:


Gerald Celente: Disastrous global collapse and riots will engulf the world

Eric King
King World News Blog
Thu, 30 Jan 2014 00:00 CST
Today the man who remarkably predicted months ahead of time that the Fed would taper in December, and then again in January, warned King World News that people need to brace themselves for a disastrous global collapse and riots that will engulf the entire world.

He also discussed exactly what will trigger and then accelerate this tragic collapse and ensuing chaos. Below is what Gerald Celente, founder of Trends Research and the man many consider to be the top trends forecaster in the world, had to say in this remarkable interview.

© King World News Gerald Celente
© King World News Gerald Celente

Eric King: “Gerald, so far this has proceeded exactly as you predicted, with the first taper in December and the second taper here in January. How bad will this get for the emerging markets?”

Celente: “This selloff in the emerging markets, with their currencies going down and their interest rates going up, it’s going to be disastrous and there are going to be riots everywhere….

“Now let’s get this straight: These countries are raising interest rates in order to protect their currencies as their economies are declining. Brilliant. That’s the exact opposite strategy for growth. So as the decline in their economies accelerates, you are going to see the civil unrest intensify.

You already see what’s going on in the Ukraine and in Turkey. You are going to see this spread to India and Europe. The people are restless and they are waking up to the corruption that’s going on throughout the world, and how the elites are taking almost everything, and how almost everybody else is left with nothing.

If you want to know a business that will thrive in 2014, it may well be guillotines because these are ‘Off with their heads’ moments. When you are hearing these people from Davos demeaning the people for complaining that far too few have much too much, and way too many have much too little, and the Davos horde compares it to ‘Krystallnacht,’ the German tragedy, you know that the Davos elites have lost their minds and they are completely out of touch with reality.

© King World News

This situation is going to get very ugly as the world continues to unravel. Look at what just happened in the Ukraine: They just repealed the law that prohibited protests because it’s turning into a civil war. The prime minister has resigned, and the riots have unnerved the president so much that he has just gone on ‘sick leave.’

Meanwhile, they just passed laws in Spain to stop people from protesting. But all the laws in the world do not feed starving people. All the laws in the world do not put roofs over people’s heads. That’s why you are going to see heads roll.
The entire global financial system has been floating on the fumes of the US Federal Reserve’s Ponzi scheme.

So now with the Fed announcing the first tapering, and then the second, you can already see chaos engulfing the world as the Fed’s global financial scheme is collapsing. This collapse is engulfing the entire world, from Russia, to South Africa, into China and emerging markets across the globe. And the only way to stop this global route will be for the Fed to reverse course and dramatically increase QE.”‘

Listen to the interview here

Ukraine and the rebirth of fascism in Europe

Eric Draitser
Stop Imperialism
Wed, 29 Jan 2014 16:07 CST
ukraine fascism

The violence on the streets of Ukraine is far more than an expression of popular anger against a government. Instead, it is merely the latest example of the rise of the most insidious form of fascism that Europe has seen since the fall of the Third Reich.

Recent months have seen regular protests by the Ukrainian political opposition and its supporters – protests ostensibly in response to Ukrainian President Yanukovich’s refusal to sign a trade agreement with the European Union that was seen by many political observers as the first step towards European integration. The protests remained largely peaceful until January 17th when protesters armed with clubs, helmets, and improvised bombs unleashed brutal violence on the police, storming government buildings, beating anyone suspected of pro-government sympathies, and generally wreaking havoc on the streets of Kiev. But who are these violent extremists and what is their ideology?

The political formation is known as “Pravy Sektor”(Right Sector), which is essentially an umbrella organization for a number of ultra-nationalist (read fascist) right wing groups including supporters of the “Svoboda” (Freedom) Party, “Patriots of Ukraine”, “Ukrainian National Assembly – Ukrainian National Self Defense” (UNA-UNSO), and “Trizub”. All of these organizations share a common ideology that is vehemently anti-Russian, anti-immigrant, and anti-Jewish among other things. In addition they share a common reverence for the so called “Organization of Ukrainian Nationalists” led by Stepan Bandera, the infamous Nazi collaborators who actively fought against the Soviet Union and engaged in some of the worst atrocities committed by any side in World War II.

While Ukrainian political forces, opposition and government, continue to negotiate, a very different battle is being waged in the streets. Using intimidation and brute force more typical of Hitler’s “Brownshirts” or Mussolini’s “Blackshirts” than a contemporary political movement, these groups have managed to turn a conflict over economic policy and the political allegiances of the country into an existential struggle for the very survival of the nation that these so called “nationalists” claim to love so dearly. The images of Kiev burning, Lviv streets filled with thugs, and other chilling examples of the chaos in the country, illustrate beyond a shadow of a doubt that the political negotiation with the Maidan (Kiev’s central square and center of the protests) opposition is now no longer the central issue. Rather, it is the question of Ukrainian fascism and whether it is to be supported or rejected.

For its part, the United States has strongly come down on the side of the opposition, regardless of its political character. In early December, members of the US ruling establishment such as John McCain and Victoria Nuland were seen at Maidan lending their support to the protesters. However, as the character of the opposition has become apparent in recent days, the US and Western ruling class and its media machine have done little to condemn the fascist upsurge. Instead, their representatives have met with representatives of Right Sector and deemed them to be “no threat.” In other words, the US and its allies have given their tacit approval for the continuation and proliferation of the violence in the name of their ultimate goal: regime change.

In an attempt to pry Ukraine out of the Russian sphere of influence, the US-EU-NATO alliance has, not for the first time, allied itself with fascists. Of course, for decades, millions in Latin America were disappeared or murdered by fascist paramilitary forces armed and supported by the United States. The mujahideen of Afghanistan, which later transmogrified into Al Qaeda, also extreme ideological reactionaries, were created and financed by the United States for the purposes of destabilizing Russia. And of course, there is the painful reality of Libya and, most recently Syria, where the United States and its allies finance and support extremist jihadis against a government that has refused to align with the US and Israel. There is a disturbing pattern here that has never been lost on keen political observers: the United States always makes common cause with right wing extremists and fascists for geopolitical gain.

The situation in Ukraine is deeply troubling because it represents a political conflagration that could very easily tear the country apart less than 25 years after it gained independence from the Soviet Union. However, there is another equally disturbing aspect to the rise of fascism in that country – it is not alone.

The Fascist Menace Across the Continent

Ukraine and the rise of right wing extremism there cannot be seen, let alone understood, in isolation. Rather, it must be examined as part of a growing trend throughout Europe (and indeed the world) – a trend which threatens the very foundations of democracy.

In Greece, savage austerity imposed by the troika (IMF, ECB, and European Commission) has crippled the country’s economy, leading to a depression as bad, if not worse, than the Great Depression in the United States. It is against this backdrop of economic collapse that the Golden Dawn party has grown to become the third most popular political party in the country. Espousing an ideology of hate, the Golden Dawn – in effect a Nazi party that promotes anti-Jewish, anti-immigrant, anti-women chauvinism – is a political force that the government in Athens has understood to be a serious threat to the very fabric of society. It is this threat which led the government to arrest the party’s leadership after a Golden Dawn Nazi fatally stabbed an anti-fascist rapper. Athens has launched an investigation into the party, though the results of this investigation and trial remain somewhat unclear.

What makes Golden Dawn such an insidious threat is the fact that, despite their central ideology of Nazism, their anti-EU, anti-austerity rhetoric appeals to many in the economically devastated Greece. As with many fascist movements in the 20th Century, Golden Dawn scapegoats immigrants, Muslim and African primarily, for many of the problems facing Greeks. In dire economic circumstances, such irrational hate becomes appealing; an answer to the question of how to solve society’s problems. Indeed, despite Golden Dawn’s leaders being jailed, other party members are still in parliament, still running for major offices including mayor of Athens. Though an electoral victory is unlikely, another strong showing at the polls will make the eradication of fascism in Greece that much harder.

Were this phenomenon confined to Greece and Ukraine, it would not constitute a continental trend. Sadly however, we see the rise of similar, albeit slightly less overtly fascist, political parties all over Europe. In Spain, the ruling pro-austerity People’s Party has moved to establish draconian laws restricting protest and free speech, and empowering and sanctioning repressive police tactics. In France, the National Front Party of Marine Le Pen, which vehemently scapegoats Muslim and African immigrants, won nearly twenty percent of the vote in the first round of presidential elections. Similarly, the Party for Freedom in the Netherlands – which promotes anti-Muslim, anti-immigrant policies – has grown to be the third largest in parliament. Throughout Scandinavia, ultra nationalist parties which once toiled in complete irrelevance and obscurity are now significant players in elections. These trends are worrying to say the least.

It should be noted too that, beyond Europe, there are a number of quasi-fascist political formations which are, in one way or another, supported by the United States. The right wing coups that overthrew the governments of Paraguay and Honduras were tacitly and/or overtly supported by Washington in their seemingly endless quest to suppress the Left in Latin America. Of course, one should also remember that the protest movement in Russia was spearheaded by Alexei Navalny and his nationalist followers who espouse a virulently anti-Muslim, racist ideology that views immigrants from the Russian Caucasus and former Soviet republics as beneath “European Russians”. These and other examples begin to paint a very ugly portrait of a US foreign policy that attempts to use economic hardship and political upheaval to extend US hegemony around the world.

In Ukraine, the “Right Sector” has taken the fight from the negotiating table to the streets in an attempt to fulfill the dream of Stepan Bandera – a Ukraine free of Russia, Jews, and all other “undesirables” as they see it. Buoyed by the continued support from the US and Europe, these fanatics represent a more serious threat to democracy than Yanukovich and the pro-Russian government ever could. If Europe and the United States don’t recognize this threat in its infancy, by the time they finally do, it might just be too late.

BBC: Ukraine “on brink of civil war” — Gov’t: Threats to blow up nuclear plants

Facilities on high alert after seizure of energy ministry (VIDEO)

CNN, Jan. 30, 2014: [Leonid Kravchuk, Ukraine’s first President after it became independent] addressed a special parliamentary session aimed at seeking a way out of a deepening political crisis. […] “Let’s be honest, the situation is dramatic. Both Ukraine and the world recognize the country is on the brink of civil war,” Kravchuk said.

BBC News, Jan. 29, 2014: Ex-president warns Ukraine ‘on brink of civil war’ […] Catherine Ashton, who is holding talks in Kiev with the president and opposition leaders, said she was shocked by the unrest […]

PenzaNews, Jan. 29, 2014: The Ukrainian Security Service has reported anonymous threats to blow up hydropower and nuclear power plants, which have already tightened security by the order of Energy and Coal Industry Minister Eduard Stavitsky.

VoR, Jan. 29, 2014: The threat of explosions at hydro and nuclear power stations by radicals has sharply increased. […] Ministry of Energy has placed all the energy facilities on high alert.

BBC Monitoring, Moscow Times, Jan. 29, 2014: What the Papers Say, Jan. 29 — Rossiiskaya Gazeta […] Alexander Yemelyanenkov article entitled “Near-nuclear blackmail” says security has been stepped at nuclear facilities in Ukraine amid unrest in the country.

AP, Jan. 25, 2014: Protesters on Saturday morning seized the headquarters of the energy ministry, but left it several hours later. Energy Minister Eduard Stavitskiy was quoted by the Unian news agency as saying that all the country’s nuclear power facilities were put on high alert after the seizure.

VoR columnist Valentin Mandrasescu, Jan. 28, 2014: Storming governmental buildings […] and trying to enter control rooms of nuclear power plants […]

ITAR-TASS, Jan. 28, 2014: Ukrainian minister says state of emergency not ruled out if extremist continues rising — Ukraine’s Minister of Energy and Coal Industry Eduard Stavitsky said Monday he did not rule out a possible introduction of a state of emergency in the country […] Government offices and organizations have been getting anonymous threats of all sorts recently and some of them spoke of a possible seizure of a nuclear power plants in the western Rovno region […] “I see smiles on some of your faces here but I can tell you for sure there’ll be no one to smile out there /should the threats be translated in reality,” Stavitsky said. […] Energy Ministry […] now maintaining full readiness for an assault that might begin anytime.

Watch the BBC’s broadcast here


Bank Run Fears Escalate as Russian Lender Bans Cash Withdrawals

Economic jitters continue to spread

Paul Joseph Watson
January 28, 2014

Fears of bank runs have escalated with the news that Russian lender ‘My Bank’ has banned all cash withdrawals until next week.

Image: Russian Ruble (YouTube).

“Bloomberg reports that ‘My Bank’ – one of Russia’s top 200 lenders by assets – has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia. Russia sovereign CDS had recently weakened to 4-month wides at 192bps,” reports Zero Hedge.

The source of the story is a person working inside the ‘My Bank’ call center, although officials for the bank have refused to comment.

On Saturday it emerged that HSBC was restricting large cash withdrawals for UK customers from £5000 upwards, forcing them to provide documentation of what they plan to spend the money on, a form of capital control that more and more banks are beginning to adopt.

This was followed by the story, which subsequently turned out to be false but caused market jitters nonetheless, that China’s commercial banks had been instructed to suspend cash transfers.

An IT glitch that prevented thousands of Lloyds Banking Group customers from withdrawing cash at ATMs in the UK also contributed to the concerns.

As we reported back in November, Chase Bank also recently imposed restrictions which prevent its customers from conducting over $50,000 in cash activity per month, as well as banning business customers from sending international wire transfers. Financial expert Gerald Celente said the news was a sign that Americans should prepare for a bank holiday.

Questions were already being asked of Chase after an incident last year when customers across the country attempted to withdraw cash from ATMs only to see that their account balance had been reduced to zero. The problem, which Chase attributed to a technical glitch, lasted for hours before it was fixed, prompting panic from some customers.

In November it was also reported that two of the biggest banks in America were stuffing their ATMs with 20-30 per cent more cash than usual in order to head off a potential bank run if the US defaults on its debt.

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Paul Joseph Watson is the editor and writer for and Prison He is the author of Order Out Of Chaos. Watson is also a host for Infowars Nightly News.

U.S. Intelligence Boss Predicts More Violence in Ukraine

Violent demos staged by Soros funded and State Dept. encouraged activists

Kurt Nimmo
January 29, 2014

Obama’s intelligence boss, James Clapper, set the stage on Wednesday for further violence in Ukraine and a more robust response by the United States.

“Firmly intent on maintaining his hold on power, Yanukovych will probably resort to coercion, extralegal means, and other tactics to tilt the playing field in his favor and ensure his reelection, threatening a further erosion of democratic norms,” National Intelligence Director Clapper said in a statement sent to the Senate.

He said the financial aid package sent by Russia in December will prevent an immediate collapse of the Ukrainian economy in the “short term” and will increase dependence by the government in Kiev and make it vulnerable to Russian political pressure. Clapper made the remarks in an annual assessment by sixteen intelligence agencies.

The spy agency critique arrives as Leonid Kravchuk, Ukraine’s president from 1991 to 1994, warned the country is on the “brink of civil war” as increasingly violent protests against the government of President Viktor Yanukovych escalate. “It is a revolution. It is a dramatic situation in which we must act with the greatest responsibility,” he said to a standing ovation before the Ukrainian Parliament.

At least five people, including a police officer, have died during protests that began in November when Yanukovych signaled willingness to strengthen ties with Russia. The opposition demands closer ties to the European Union. On Tuesday, Russian President Putin reaffirmed his country’s commitment to Ukraine and warned of interference in its internal affairs.

Following the resignation of Prime Minister Mykola Azarov on Tuesday, the Ukrainian Parliament repealed a number of anti-protest laws enacted on January 16 curtailing freedom of assembly.

Soros Groups Continue Pressure on Government Despite Concessions

The George Soros Open Society Institute supported and funded group Spilna Sprava has agreed to end its occupation of the Agricultural Policy and Food Ministry in the center of Kiev. The occupation of government buildings by the radical group nearly resulted in a declaration of a national emergency by the government.

According to the Ukrainian nationalist political party Svoboda, Spilna Sprava has agreed to relocate to the Ukrainian House, a building originally erected as a Lenin museum in 1978. According to Svoboda Party member Oleksandr Leonov, Spilna Sprava needs to leave the ministry ahead of the passage of an amnesty bill that would apply to protesters arrested during “EuroMaidan” rallies.

Maidan, Ukrainian for “independence,” is the name of the square where the opposition continues to confront the government.

“The connections between the Kyiv uprising and the EU outside manipulators are so apparent, the Kyiv square that has become the ‘Tahrir Square’ of Ukraine is called ‘Euromaidan.’ The initial Tahrir Square uprising in Cairo, which overthrew Egyptian President Hosni Mubarak, was partly manipulated by Soros-financed and [CIA tactician Gene Sharp]-influenced street demonstrators who took their cues from professional political agitators hastily flown into Egypt from the United States and Europe,” Wayne Madsen wrote in December.

The Party of Regions, a Ukrainian political party described as euroskeptic by its detractors, told the Kyiv Post today it has ample evidence of U.S. complicity in the violent demonstrations.

“The Americans dole out cash to certain activists, $50,000 at a time just for fuel, right on the U.S. Embassy premises,” writes Katya Gorchinskaya for the Kyiv Post. “Some protesters are getting upwards of $500 per day for taking part in the protests, and the pay grows the more Molotov cocktails they throw at the defenseless police who have the law on their side to use weapons in such cases, but instead they act with great restraint.”

“Ever since the democracy manipulation efforts of international hedge fund brigand George Soros were joined with the artificial street revolution tactics of CIA tactician Gene Sharp to form the core strategy of the U.S. neo-conservative goal of imposing a ‘New American Century’ on the entire world, Ukraine has served as the prize of America’s interventionist foreign policy,” Madsen summarized late last year.

“Ukraine, which resisted efforts by the European Union to integrate it into Europe’s banker-led federation of austerity and poverty, came into the EU’s cross hairs after it abandoned an ‘Association Agreement’ pact with the EU. Instead, Kyiv opted for a more lucrative economic union with Russia. That move triggered off a mass street uprising in Kyiv’s Maidan (Independence) Square that demanded the resignation of Ukraine’s democratically-elected President and government,” writes Madsen.

According to a survey conducted by the Democratic Initiatives Foundation and the Razumkov Center, a large number of Ukrainians support the Yanukovych government.

“President Viktor Yanukovych would still get 30 percent of the vote in a presidential election,” writes Gorchinskaya. “This is an amazing result, that represents about 10 million people. And the number is truly stunning when you read that 71 percent of those polled said the situation in the country has gotten worse in the course of last year. This means many of those who are unhappy with the government, still endorse it.”

This political reality is not portrayed accurately in the West, however, where corporate media coverage gives the impression most Ukrainians want to merge with the European Union and accept a regimen of austerity and bankster-imposed “reforms” that invariably lead to a lower standard of living and ever increasing misery.

CNN, Fox, MSNBC and the rest of the corporate alphabet media continue to pay attention to sensationalistic EuroMaidan activists clad in balaclavas throwing Molotov cocktails while portraying Ukrainian police as thugs and the government as puppets sucking up to a post-Soviet regime in Moscow. The obvious activist links to Soros, the State Department, USAID, the CIA surrogate NED and the European Union, on the other hand, are completely ignored.

This article was posted: Wednesday, January 29, 2014 at 12:15 pm