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Is A Financial Crisis Coming To Canada?

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“The pending credit cycle in Canada will be one for the ages.”

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– Marc Cohodes, May 3rd, 2017

Lately, the word “bubble” has been used more often to describe the overheated housing markets in Canadian cities like Toronto and Vancouver. Even Bank of Montreal’s Chief Economist didn’t hold back when he wrote in a report, “Let’s drop the pretense. The Toronto housing market — and the many cities surrounding it — are in a housing bubble”(1).

In March, house prices in Toronto rose a record 33.2% year-over-year and the city was ranked number 1 in the world with the fastest-growing house prices; Vancouver came in third on the list after Sydney, Australia (2).  It’s getting to be such a problem that Ontario’s premier has met with the mayors of Toronto and surrounding areas to discuss housing affordability, while the Prime Minister has admitted that the federal government is monitoring the housing market closely.

But what might have been the clearest sign yet that the housing market is in a bubble was the 2017 Real Estate Expo in Toronto where real estate agencies, developers, and banks paid celebrities like Tony Robins and Pitbull to encourage people to join in on the real estate buying frenzy. Real Estate agents on a stage told prospective buyers things like: “Toronto has become one of the last safe havens in the world,” “Fear will kill you,” and, “Just jump in!” (3)

Clearly, this message is getting around as statistics show an increasing portion of the population owning more than one residential home. This housing bubble, like all other financial bubbles, is the consequence of historically low interest rates, which is the beginning phase of a credit cycle that inflates the bubble. But eventually interest rates rise, and when they do the bubble pops, the cycle reverses, and prices fall.

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The question is, what happens when the cycle turns? If we take a close look at the situation in Canada, we can see instability across the board whether it’s in the economy, in the banking system, or in government finances, and due to this instability, we can reasonably assume that when this cycle turns, it will be pretty ugly for Canadians.

Home Capital Group

Home Capital Group is Canada’s largest non-bank mortgage lender focused primarily on the subprime market — mortgage applicants rejected by the banks — through its subsidiary Home Trust Company. On April 26th, the stock of Home Capital plunged 65% when news came out that the company secured an emergency loan worth C$2 billion to provide liquidity for the company after an overwhelming number of depositors withdrew their money from the high interest savings accounts Home Trust offers — money Home Capital uses to provide mortgages at a higher interest rate, profiting from the spread.

From April 24th to May 1st, Home Capital saw its deposits shrink from C$1.4 billion to C$391 million (4). The problems for Home Capital began back in 2014 when the company cut ties with 45 brokers who were creating mortgages with fraudulent income information that amounted to 10% of Home Trust’s total mortgage originations. Fast forward three years and the Ontario Securities Commission has now submitted formal allegations against the company and the three former and current executives, alleging they knowingly misled investors when discussing the impact of the fraudulent mortgages.

Meanwhile, Home Capital has seen their CFO retire, its Chief Risk Officier leave unannounced, several board members resign, its founder Gerald Soloway step down as CEO and remove himself from the board, his replacement CEO fired, and a total of 33 employees leave in 2016 alone. Representing only 1% of the total mortgage market, it’s too early to know whether Home Capital’s problems will spread, but already investors are losing what matters most in a highly leveraged business: confidence.

On April 26th, the day Home Capital lost 65% of its value, Equitable Group, First National Financial, and Street Capital Group saw their stocks fall 32%, 11%, and 10%, respectively. In the week proceeding, Equitable Group, a mortgage lender that mirrors Home Capital, saw C$75 million worth of deposits withdrawn as their stock fell 39% (5). Canada’s finance minister Bill Morneau has said there is no link between Home Capital and risks in the housing market and Bank of Canada governor Stephen Poloz has said that Home Capital’s problems are “idiosyncratic,” believing they won’t trigger a contagion effect.

Are these statements akin to when the chairman of the United States’ central bank, Ben Bernanke, said in 2007 that “the problems in the subprime market seems likely to be contained”(6)? Already we’ve seen actions being taken to safeguard contagion from spreading. The C$2 billion emergency loan that kept the lights on at Home Capital was provided by the Health Care of Ontario Pension Plan with very stringent terms. The loans have an effective interest rate of 22.5% and are secured against two pools of mortgages from Home Capital’s loan book.

In pool A, Home Capital can borrow C$0.50 of every dollar pledged and in pool B C$0.26 for every dollar pledged. These terms tell us what the HOOPP thinks about the quality of these mortgages being put up for collateral and of Home Capital’s ability to repay the loan. Meanwhile, as investors were dumping Home Capital’s stock en masse, two asset managing companies provided a floor for the stock. CIBC Asset Management increased its position from 2.46 million shares to 9.69 million, while Turtle Creek Asset Management, Home Capital’s biggest investor, was also a buyer (7). It is important to note that these two asset managers were not investing their own money, but were making “investments” on behalf of other people.

Home Capital has also raised money by selling C$1.5 billion in mortgage renewals to MCAP Corp., one of Canada’s largest independent mortgage financing companies that originates, securitizes, trades and services residential and commercial mortgages (8). Equitable Group, Home Capital’s mirror image who suffered its own bout of eroding investor confidence, has been given a C$2 billion funding backstop by a syndicate made up of the 6 major Canadian banks to provide support in case the lender should need it (9). All in all, the fear of contagion is clearly evident and the question that needs to be answered is whether the fraudulent mortgages in Home Capital loan book are limited to 10% or is it a much higher number? And, how many of these mortgages are insured by the Canadian taxpayer through the CMHC?

CMHC

The Canadian Mortgage and Housing Corporation is a government institution that has been a leading contributor to the inflating of the Canadian housing bubble. The institution is the largest provider of mortgage-insurance for homeowners unable to make a 20% down-payment, protecting lenders from default thus enabling them to make more risky loans.

The CMHC is similar to America’s Fannie Mae and Freddie Mac, two government institutions that were largely responsible for the collapse of the U.S. housing market. Like Fannie Mae and Freddie Mac, CMHC also buys and sells mortgage-backed securities, mortgages that are pooled together into a bond that became the popular financial instrument that sank the global financial system in 2008. The CMHC buying mortgages leads to more lenient lending standards as banks know they can make loans that they can later sell to the CMHC and not have to keep on their books.

All of this is backed by the Canadian government and thus the Canadian taxpayer. What’s really egregious about the CMHC is that while they provide banks with full insurance against losses, it’s the homeowner who pays the insurance premium and that taxpayer who pays the deductible, the banks pay nothing. Currently, the CMHC has about 9% equity against its liabilities outstanding (10). If there is a housing correction, the CMHC would need a taxpayer bailout of epic proportions.

Banks

It wasn’t too long ago that the Canadian banking system was considered the darling of the financial world. Back in 2008, a survey by the World Economic Forum listed Canada’s banking system as the world’s safest (11), a title also given to the country by the rating agency Moody’s in 2012 (12). But today the sentiment is much different as Moody’s has recently cut the credit rating of the 6 Canadian chartered-banks stating: “Continued growth in Canadian consumer debt and elevated housing prices leaves consumers, and Canadian banks, more vulnerable to downside risks facing the Canadian economy than in the past(13).

In March, the Bank of International Settlements (the Central Banks’ Central Bank) listed Canada as having the riskiest banking system of developed countries based on credit-to-GDP gap, property price gap, debt service ratio, and debt service ratio if interest rates rise (14). Residential mortgages make up about 52% of all Canadian bank loans so suffice it to say, the banking system is very vulnerable to a downturn in the housing market (15).

What makes matters worse are the leverage ratios of the Canadian banks. The leverage ratio is a capital adequacy figure that measures a bank’s ability to withstand negative shocks to its balance sheet. In a balance sheet, the difference between a company’s assets and liabilities is its equity so that if a company sells off its assets to pay its liabilities, the equity left over is returned to the owners. If a bank has $100 in assets and $90 in debt, then $10 is the difference and represents 10% equity or capital. The problem with assets is they can fall in value. If the capital ratio is at 10%, then that means assets can fall in value up to 10% before the bank is unable to pay its creditors. The leverage ratio is an international regulatory banking standard set up by the Basel Committee on Banking Supervision. The leverage ratio measures the core capital of a bank against its total assets.

As per their 2016 annual reports, the major Canadian banks leverage ratios are: RBC – 4.4%, TD – 4%, BMO – 4.2%, Scotia – 4.4%, CIBC – 4%, National Bank – 3.7% (16)(17)(18)(19)(20)(21). If the value of the assets of these banks fall in percentage more than these figures, then the banks become insolvent. And of course, in the banking industry, loans are considered assets and as stated earlier, 52% of the banks’ loan book is made up of residential mortgages. Compounding the situation is the report from credit agency Equifax that says they saw a 52% increase in suspicious mortgages between 2013 and 2016 (22).

This leads one to ask was Home Capital the only lender to partake in mortgage fraud? How secure are the uninsured mortgages on the banks’ loan book and what happens if these people lose their jobs and are unable to make mortgage payments? A recent survey suggests that over half of Canadians are $200 away from not being able to meet their financial obligations (23).

Canada’s Dependence on Housing

Since the decline of energy prices, Canada’s economy has become more reliant on the housing industry. In fact, without the growth in housing, Canada’s economy would be contracting. It is estimated that housing makes up 20% of Canada’s GDP with industries like real estate, construction, and financial services.

The number is significantly higher when you consider the indirect impact of a booming housing market. Lawyer fees, government revenues, and increased retail purchases due to the wealth effect of rising home equity values enabling households to spend more (24). Consumer spending as a share of GDP is around the highest since the 1960s (25).

Debt-to-disposable income was at a record high 167% in March (26), and while this ratio has little impact day-to-day as Canadians aren’t expected to pay off their debts tomorrow, it does highlight the vulnerability of Canadians to economic shocks. Another indicator, the debt-to-service ratio, which is the cost to carry debt relative to income, is at 14% and has remained there since 2008, but that’s because interest rates have been at historic lows since 2008. What happens if interest rates rise? A survey by Manulife Bank found that out of 2,098 people polled, 72% said they would have difficulty paying their mortgage if their payments rose by 10%. An increase of 10% in mortgage payments could take as little as a single percentage point increase in interest rates (27).

HELOCs = Home Equity Loans of Canadians

Government Debt

Moving on to the problems in the public sector, we’ve already seen the harm government can do with the CMHC distorting the housing market by guaranteeing mortgages and mortgage-backed securities, and blame should also be put on the central bank’s historic interest rate policy. But looking specifically at government finances, the debt held by provincial governments is alarming. Ontario has the largest debt held by any sub-sovereign in the world at over C$300 billion.

Quebec is at over C$180 billion in debt. Other provinces are currently running deficits with no end in sight. At the federal level, debt isn’t too bad at just over C$700 billion when you compare it to America’s $20 trillion, but that could change by the time the Trudeau administration is voted out of office. It is estimated that Canada could run deficits until 2050 (28) with the policies enacted by Prime Minister Trudeau and he’s on pace to break the all-time record for federal government spending per Canadian despite Canada not being in a recession or at war (29).

Excessive debt is future consumption denied while higher taxation ensured, both outcomes are destructive to an economy, as more of the country’s capital and resources are directed towards paying the interest on the debt rather than being used in the real economy. Moreover, as a country becomes addicted to government spending, it becomes more reliant on it and thus harder to cut. If the government is forced to cut spending, it will have negative ramifications throughout the country for many Canadians dependent on it.

Gold

A development that was largely ignored by the corporate media, but should concern Canadians, is that the Canadian government has almost no gold left in its reserves (30). Unlike America, Germany, Russia and China, countries with vast gold reserves, practically all of Canada’s reserves are pieces of paper. This is foolish and short-sighted as gold has proved to be the ultimate form of money that will retain its value during a crisis, while paper assets can easily evaporate in value during a crisis of confidence and a deterioration in confidence is exactly what could ignite a financial crisis in Canada.

The Loonie

The Canadian loonie has been under pressure in the wake of the Home Capital debacle, dipping below 0.73 to the U.S. dollar. In 5 years, the loonie has gone from being at par with the U.S. dollar to falling under 0.70 at the end of 2015, when oil prices were at its lowest. This weakness in the loonie creates price inflation for Canadians as prices are a reflection of the value of money. I believe this 0.70 mark is an important psychological level for the Bank of Canada because when the loonie falls below this level people start to feel it more at the grocery store and financial commentators start to make noise about it.

The bank has two means of supporting the loonie: raising interest rates or using their reserves to buy it in the currency markets. If we explore scenario one it’s not a pretty picture. The current rate at the Bank of Canada is 0.5% and people have been calling for them to begin raising it for a while, especially now that the U.S. central bank has begun raising its rates putting further pressure on the loonie/dollar exchange. A rise in interest rates will in all likelihood pop the housing bubble as debt becomes more expensive, decreasing demand for mortgages.

When house prices fall, reflecting the decrease in demand, that’s when delinquency rates rise as homeowners, especially in the subprime market, go underwater as their mortgages become more expensive than the value of the home. As delinquencies rise, houses are foreclosed and put on the market increasing supply, putting more downward pressure on prices. The CMHC (taxpayer) then needs to cover all the mortgages and securities it insured, while at the same time the value of their assets are falling. With only 9% equity, the CMHC would need a massive government bailout. If the banks’ assets fall below their leverage ratios, then they too become insolvent, needing either a bail-in or bailout. At this point, a full-blown crisis emerges, leading to further erosion of confidence in Canada and the loonie. Rising inflation is countered with higher interest rates, and the higher cost of debt cripples the economy as highly indebted individuals, businesses and governments all have to cut back on their spending leading to higher unemployment.

It’s clear why the Bank of Canada has been so reluctant to raise interest rates. Scenario two, using reserves to prop up the loonie, will likely be futile as the market is more powerful than governments. It may work at the beginning and buy time, but as the Bank of Canada bleeds through its reserves, this in itself will erode confidence leaving them in the same position they found themselves in at the beginning, only this time without any bullets left in the barrel. A third scenario is to just let the loonie crater and let price inflation run rampant. This might be feasible to start, but as consumer prices explode Canadians will be squeezed as their cost of living outpaces their income leading to lower living standards and social unrest.

Final Remarks

Using the 2008 financial crisis in America as a model, it wasn’t until September 2008 when the government nationalized Fannie Mae and Freddie Mac – which backed $6.2 trillion worth of mortgages – making it clear to everyone that a major crisis was unfolding, but there were many signs leading up to that moment that indicated something bad was brewing in the housing market, including in April 2007 when America’s largest subprime lender, New Century Financial, declared bankruptcy.

In Canada, already the Toronto developer Urbancorp has filed for bankruptcy and Home Capital would have done the same if not for the rescue loan and it’s still highly probable that Home Capital will file for bankruptcy in the weeks or months to come. Are we in the early innings of a financial crisis in Canada? What will happen to the loonie if the markets and its speculators lose confidence in Canada? And how will the Bank of Canada respond to a falling loonie? So far in 2017, the loonie has been the worst-performing major currency in the world. I’m not predicting that a major storm is a certainty, but there’s no denying that there are dark clouds forming above Canada.

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New Study Links Acetaminophen (Tylenol) To Attention Deficit Disorder with Hyperactivity

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Another damning study indicates it is simply time to pull the plug on this outdated drug.

The study just published in JAMA Pediatrics once again indicated that women who take acetaminophen during pregnancy are more likely to have a child with attention deficit hyperactivity disorder (ADHD). The researchers also found that prenatal exposure to the medication was associated with a higher risk of having children who exhibit other emotional or behavioral symptoms.

Recent detailed analysis of clinical studies on acetaminophen (Tylenol) have concluded that this popular drug was ineffective for low back pain and provided no significant clinical relief of hip or knee osteoarthritis (OA) pain, while quadrupling the risk for liver damage.

All together, the results from all of these analyses further calls into question whether this drug should still be on the over-the-counter market or at all.

Background Data:

Acetaminophen is the only remaining member of the class of drugs known as “aniline analgesics” that is still on the market, as the rest were discontinued long ago. Acetaminophen only blocks the feelings of pain and reduces fever, it exerts no significant anti-inflammatory or therapeutic action.

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It is well-known that acetaminophen is very hard on the liver. About 40% of regular acetaminophen users show signs of liver damage. Acetaminophen reduces the liver’s store of the important detoxifying aid and antioxidant glutathione. When acetaminophen is combined with alcoholic drinks or other compounds toxic to the liver including other medications, its negative effects on the liver are multiplied. It should definitely not be used in anyone with impaired liver function and given the stress the liver experiences during pregnancy, it appears unwise to use it while carrying a child for both mother and the developing fetus.

Acetaminophen is often the drug of choice in children to relieve fever. However, use for fever in the first year of life is associated with an increase in the incidence of asthma and other allergic symptoms later in childhood. Asthma appears to be another disease process that is influenced greatly by antioxidant mechanisms. Acetaminophen severely depletes glutathione levels not only in the liver, but presumably other tissues as well, and should definitely not be used in people with asthma.

Each year acetaminophen causes over 100,000 calls to poison control centers; 50,000 emergency room visits, 26,000 hospitalizations, and more than 450 deaths from liver failure. In addition, regular use of acetaminophen is linked to a higher likelihood of Alzheimer’s disease, infertility, and hearing loss (especially in men under 50 years of age). Acetaminophen use during pregnancy has also been linked to the development of ADHD confirming animal studies showing acetaminophen use in pregnancy can disrupt normal brain development.

New Data:

To more closely assess the associations between maternal prenatal acetaminophen use and behavioral issues in their children, researchers in the United Kingdom collected and analyzed data 7,796 mothers along with their children. The data included acetaminophen use and behavioral assessments of the children were 7 years old. From this data the estimated risk ratios for behavioral problems in children after prenatal exposure to acetaminophen was determined.

The results showed that prenatal acetaminophen use at 18 and 32 weeks of pregnancy was associated with a 42% increased risk of the child having conduct problems and hyperactivity symptoms, while maternal acetaminophen use at 32 weeks was also associated with a 29% increased risk of the child having emotional symptoms and a 46% increase in total behavioral difficulties.

Obviously, the researchers concluded “Children exposed to acetaminophen prenatally are at increased risk of multiple behavioral difficulties, and the associations do not appear to be explained by unmeasured behavioral or social factors linked to acetaminophen use.”

Comment:

The results from this study and others are clear. Stay away from acetaminophen. Most people consider acetaminophen (e.g., Tylenol) as being an extremely safe pain reliever for both children and adults. The reality is that it can be extremely dangerous and causes significant side effects. The FDA has done a poor job alerting the public to the dangers of acetaminophen. In my opinion, it is a drug that serves no real medical purpose in the 21stcentury. Bottom line, it is time to pull it from the market.

As far as alternatives to acetaminophen during pregnancy, I would recommend ginger. Historically, the majority of complaints for which ginger (Zingiber officinale) was used concerned the gastrointestinal system as well as pain and inflammation. Several double-blind studies have shown ginger to yield positive results in a variety of gastrointestinal issues, especially those related to nausea and vomiting including severe morning sickness. In regards to pain and inflammation, dozens of clinical studies have supported this use with positive results in various forms of arthritis, chronic low back pain, muscle pain, and painful menstruation.

Ginger powder, ginger tea or a shot of fresh ginger juice added to any fresh fruit or vegetable juice is certainly a much better option to acetaminophen anytime, but especially during pregnancy.

My overall interpretation of the study is that depletion of glutathione caused by acetaminophen leaves cells, especially brain cells, susceptible to damage. I believe that future studies will not only show more evidence of a link to ADHD, but also autism as well. Glutathione is absolutely critical in protecting cellular function. Any factor that depletes glutathione is obviously going to alter proper development. In addition to acetaminophen, the following factors can deplete glutathione:

To boost your glutathione level it is important to focus on a diet rich in colorful fruits and vegetables. Their rich source of antioxidant phytochemicals and nutrients spare the use of glutathione and help to keep cellular levels high.

For additional related research use the following links: 


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Reference

Stergiakouli E, Thapar A, Smith GD. Association of Acetaminophen Use During Pregnancy with Behavioral Problems in Childhood. Evidence Against Confounding. JAMA Pediatrics. Published online August 15, 2016. doi:10.1001/jamapediatrics.2016.1775


Dr. Murray is one of the world’s leading authorities on natural medicine. He has published over 40 books featuring natural approaches to health. His research into the health benefits of proper nutrition is the foundation for a best-selling line of dietary supplements from Natural Factors, where he is Director of Product Development. He is a graduate, former faculty member, and serves on the Board of Regents of Bastyr University in Seattle, Washington. Please Click Here to receive a Free 5 Interview Collection from Dr Murray’s Natural Medicine Summit with the Top Leaders in the Field of Natural Medicine. Sign up for his newsletter and receive a free copy of his book on Stress, Anxiety and Insomnia.

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‘Targeted Individuals’ Activist Getting Stonewalled In Seeking Anti-‘Organized Torture’ Legislation

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In Brief

  • The Facts:

    Dr. Tomo Shibata, who has asked 9 California legislators to introduce a bill that specifically criminalizes 'Organized Covert Torture,' has uncovered evidence of undue influence from the perpetrators over the legislative process.

  • Reflect On:

    How can those of us within the awakening community take the efforts of Dr. Shibata and use them to help us all better understand the truth about 'Organized Covert Torture' in a way that we are empowered to put an end to it?

In a previous article, “New California Bill Proposal Aims To Protect ‘Targeted Individuals’,” I described how Dr. Tomo Shibata proposed a bill to members of the California legislature entitled ‘The Organized Torture Act,’ which seeks to criminalize many of the types of attacks that are clandestinely made on targeted individuals.

Now, it appears that Dr. Shibata is getting stonewalled by the California lawmakers she has approached to introduce the bill. And it is Dr. Shibata’s belief that the very forces she is fighting against, including the U.S. Department of Homeland Security’s Fusion Center intelligence contractors in coordination with local law-enforcement officials, are influential in dissuading these politicians from introducing the bill.

What Is ‘Organized Covert Torture’?

This article by Ramola D explains the genesis of Dr. Shibata’s bill proposal and helps us better understand the attacks that ‘targeted individuals’ are facing:

This proposal was made, Dr. Shibata states, on the basis of complaints to human rights groups from high numbers of residents across California from various cities including San Diego, Berkeley, Los Angeles, San Francisco, Palo Alto, and others, of “organized covert torture” whereby, in lieu of outright abduction, victims are kept under constant control of the covert torture organizations by organized stalking, sustained surreptitious monitoring, cyberstalking, and stealth physical assault and battery with radiation weaponry such as microwave/radar surveillance weapons. Different sources offer varying estimates, running into hundreds of thousands, of the numbers of organized covert torture victims often labeled “Targeted Individuals” within the USA and around the world.

It may be hard for some to believe that this phenomenon is real, let alone affecting hundreds of thousands, and possibly millions of individuals on the planet. But that is why this is such a diabolical process. It is designed to appear to outsiders as though it is not happening at all, while some of the tactics are not fully hidden from the victims themselves, when the desire is to inflict a sense of helplessness and paranoia upon the victim.

What is beyond doubt, for those who have researched into this matter, is that technology does indeed exist to remotely target individual people with invisible weapons that cause physical pain as well as debilitating mental and auditory stimulation (source).

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This form of torture and human experimentation has the most power when the general public does not believe in its existence. This is why the awakening community must stand behind victims and give their stories credence, as I outlined in a previous article ‘Targeted Individuals Need The Awakening Community To Believe Their Stories.’ And this may be one reason why Dr. Shibata is working tirelessly to get this bill proposal introduced in the California legislature, since just the introduction of the bill (let alone the passing of it into law) will bring it into the public domain and give this issue the legitimacy it desperately needs.

The Culprits

However, ‘legitimacy’ is the last thing that the perpetrators of organized covert torture want. This is why Dr. Shibata believes that these perpetrators are playing a direct role in overtly and covertly discouraging California State legislators from introducing ‘The Organized Torture Act.’

In Dr. Shibata’s email to me (which is the source of all the quotes from her in this article), she specifically points to local law enforcement in concert with Fusion Centers as the most visible culprits of ‘Organized Covert Torture’:

The U.S. Department of Homeland Security’s Fusion Center intelligence contractors “empower frontline law enforcement…to understand local implications of national intelligence, thus enabling local officials to better protect their communities.” (source)—the Fusion Center’s rationale for the organized surveillance and covert torture operations of those who are wrongfully named as criminals and/or terrorists without any due process, as per Former FBI Special Agent Geral Sosbee’s testimony.

Dr. Shibata believes that these intelligence contractors could “empower” police groups as a front organization to mind-control the California legislature:

The police have very strong lobbying groups at the California state legislature. The Fusion Center intelligence contractors could help police lobbying groups in becoming so “strong” in influencing the California legislature, by deploying the following technique: covertly manipulate those who exert the most influence on the target-legislators, who might introduce the bill to prohibit organized covert torture, in order to safeguard the excessive privileges of the police/intelligence contractors to torture targeted individuals.

And indeed, her experience dealing with legislators bears this out.

Stonewalled By Legislators

In total, Dr. Shibata has asked 9 California legislators to review the bill proposal and introduce it to the legislature. Any bill that amends the Penal Code is required to go through an ‘analysis’ by the Public Safety Committee Counsel. This analysis, according to Dr. Shibata, ‘exerts considerable influence on the voting outcome of the members of the committee.’ The committee majority approval is needed first before the bill is introduced to all members of the legislature for voting. So, although the proposed bill has not yet been introduced, the legislative director of Assembly Member Shirley Weber went ahead and asked the Assembly Public Safety Committee Counsel to issue a provisional analysis of the proposed bill, in order for Dr. Weber to find out the prospects for the proposed bill in the legislature. Dr. Shibata believes that the opinions of this counsel have resulted from the undue influence of police lobby groups that front the intelligence operations behind covert organized torture.

In communication with Dr. Weber’s legislative director, Dr. Shibata was made aware that Weber’s office received the following advice from Assembly Public Safety Committee Deputy Chief Counsel Sandy Uribe:

1. The acts of organized covert torture and organized stalking, which the proposed bill prohibits, are already proscribed by the current Penal Code. There is no need for an addition law.

2. The incident, where a civilian complained about his inner ears injured by the police’s ongoing act of using an ultrasonic weapon at him, shot and killed a rookie female police officer in Davis, CA (20-minute driving distance from Sacramento) on January 10, 2019, would discourage the legislature from voting favorably on the proposed bill. The location of the incident is so close to the California capitol that this incident would considerably influence the voting results of the proposed bill.

Dr. Weber decided not to introduce the proposed bill upon receiving this advice. Yet, Dr. Shibata finds the advice highly questionable, and refuted it as follows:

Assembly Public Safety Committee Counsel Deputy Chief Uribe’s above advice prejudicially interprets the proposed bill text and the recent police officer’s murder incident in the light that is most protective of the excessive privileges of the police to torture targeted individuals. Please note that the police abuse discretion vested in them and elect not to enforce the existing laws against organized covert torture and organized stalking. The socio-legal context of the proposed legislation parallels that of the anti-domestic violence legislation, because the police abused their discretion vested in them and did not enforce the pre-existing law against battery in domestic relations, prior to the anti-domestic violence legislation. Just as many police officers themselves committed domestic violence at home back then, many police officers commit organized covert torture themselves today, along with the Fusion Center contractors and under the supervision of the FBI, as per Former FBI Special Agent Geral Sosbee’s aforementioned testimony.

The anti-domestic violence legislation established the rule of law in domestic relations and drastically reduced the killings of husbands by the battered wives at home. The proposed bill will establish the rule of law surrounding organized covert torture and thus will substantially prevent the killings of the police officers by the civilian victims of organized cover torture by the police, as exemplified by the aforementioned Davis police shooter, who had a violent criminal record. Indeed, L.A. law enforcement officers fire electronic weapons remotely at prison inmates, which the ACLU describes as “tantamount to torture,” according to CBS News. Therefore, the recent Davis police officer’s lethal shooting incident only casts light on the urgent need for the rule of law surrounding organized covert torture, instead of discouraging the legislature from voting against the proposed bill.

Another legislator Dr. Shibata asked to introduce the bill was Ed Chau, the chair of the Privacy and Consumer Protection Committee, and a former judge and an engineer, who has successfully authored bills against the technological invasion of privacy and is already aware of one of the most sophisticated technologies used against targeted individuals, “synthetic telepathy,” which is known to have been researched by the University of California at Irvine and funded by the Army (source). The task of preparing an internal report to Chau on the proposed bill was delegated to Privacy and Consumer Protection Committee Consultant/Attorney Nichole Rapier Rocha. In a phone conversation with Rocha, Dr. Shibata found out that Rocha had received unsolicited advice from Sandy Uribe similar to the advice she gave Dr. Weber’s office, which led Dr. Shibata to ask the following question:

Why did super busy Sandy Uribe go out of her way to identify/trace which influential staffer at the legislature was still reviewing the bill proposal for potential recommendation and further to “warn” that influential staffer of the said “problems” of the bill proactively?

While Ed Chau has not yet decided whether to sponsor the bill, the following legislators have already declined: Assembly Member Reginald Jones-Sawyer, Senator Nancy Skinner, Senator Jim Beall, and Senator Chris Holden. Their refusal to take up the challenge, according to Dr. Shibata, is partly “due to their apathetic complicity in leaving thousands of victims, in California alone, continuously and indefinitely exposed to irreversibly maiming torture and slow-kill murder.” But she also has seen telling signs of infiltration within legislators’ committees and the possible influence of the pharmaceutical industry in discouraging these legislators from introducing the bill.

Aside from Assembly Member Ed Chau, those legislators who have yet to make a decision are Senator Steven Bradford and Senator Holly Mitchell. Whether or not the tremendous effort made by Dr. Tomo Shibata to get this bill introduced to the California legislature will come to fruition rests in their hands. Time is short, as the bill introduction deadline is February 22, 2019. If you would like to show your support for Dr. Shibata, please try to let your opinions be known to these three remaining California legislators or go to Dr. Shibata’s GoFundMe Page.

The Takeaway

While her proposal to introduce legislation may not be accepted this time around, the time and effort that Dr. Shibata has put into this enterprise has still afforded us the opportunity to see a little more deeply into the mechanisms of control behind organized covert torture and the complicity between politics, law enforcement and intelligence that is needed to keep it in place. Her work is helping to bring the phenomena more into public awareness, and it is through growing awareness and our commitment to uncover the truth that we will one day end these kinds of operations.

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Alternative News

YouTube Will Stop Recommending Videos Of 9/11 ‘Conspiracy Theories’ To Users

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In Brief

  • The Facts:

    YouTube has decided to change its algorithm for recommending videos by excluding certain videos such as those they feel 'make blatantly false claims about historic events like 9/11.'

  • Reflect On:

    Can we see through the deception and come to know the truth about mainstream media's efforts to promote a false narrative and create within us a disempowering perception about our world?

Heartwarming, isn’t it? Social media giants like YouTube are willing to sacrifice advertising profits in order to ensure that their cherished viewers are deterred from seeing content that YouTube deems dangerous and potentially damaging to their viewers’ mental and emotional health. They’re doing this even though these viewers have demonstrated that they want to see this content. It’s just like having a Big Brother around to help steer us onto the straight and narrow path, isn’t it?

Examples the social media giant cited include videos “promoting a phony miracle cure for a serious illness, claiming the earth is flat, or making blatantly false claims about historic events like 9/11.”

Now, we can talk about any of these examples cited above for wildly different reasons, but let’s stick with the 9/11 theme. While there is no denying that it was a ‘historic event,’ what is implied by this phrase is that 9/11 has an established, well-proven historical account based on the government’s explanation of what happened and supported by the ‘official’ report cobbled together by the National Institute of Standards and Technology (NIST). For YouTube, this report is seen as the authoritative ‘last word’ on what happened in New York City on September 11th, 2001.

I could spend pages detailing how many 9/11 ‘conspiracy’ videos, like ones done by the Architects and Engineers For 9/11 Truth, are much more coherent, objective and evidence-based than the NIST report or mainstream media coverage on the subject. But no need, as this is fairly self-evident for anyone who has done a modicum of research into the subject.

What is important to note here is to read the phrase ‘making blatantly false claims’ as really meaning ‘making claims that deviate from the official, controlled mainstream narrative.’ In this regard, the takeover of social media companies by the global elite, as with the prior consolidation of traditional media companies, has been done mainly to try to continue to have a stronghold on how human beings interpret past events, in a way that advances their agenda.

Understanding ‘Recommended’ Videos

Now, to be specific, YouTube is not simply deleting videos they don’t want on their platform (well, they’ve done that too, but that’s another story). They are changing the process by which YouTube ‘recommends’ videos to users based on that viewer’s preferences.

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‘Recommended’ videos are those videos that YouTube makes available to the viewer alongside whatever video they are watching, using artificial intelligence to come up with a selection most likely to tempt viewers to continue watching after they are done with the video they are engaged with.

Guillaume Chaslot, a former Google engineer that helped build the artificial intelligence (AI) used to curate recommended videos, said the goal of YouTube’s AI was to keep users on the site as long as possible in order to promote more advertisements. What’s the ‘problem’ with this, according to YouTube? This algorithm encouraged some people with a penchant for ‘Conspiracy Theory’ (to use the famed psy-op label coined by the CIA) to go down a dangerous rabbit hole of misinformation, delusion and potential violence.

Andrew Mendrala, supervising attorney of Georgetown Law’s Civil Rights Clinic warns that the previous YouTube algorithm is “an echo chamber. It’s a feedback loop. It creates an insular community that is continually fed misinformation that reinforces their prejudices.”

Chaslot agrees with this sentiment, saying that when a user was enticed by multiple conspiracy videos, the AI not only became biased by the content the hyper-engaged users were watching, it also kept track of the content that those users were engaging with in an attempt to reproduce that pattern with other users. In a thread of tweets he recently posted, Chaslot praised the change that actually prevents flagged videos from being included within the recommended selection. His comment about this change should give us pause:

“It’s only the beginning of a more humane technology. Technology that empowers all of us, instead of deceiving the most vulnerable.”

Humane? Censorship and controlling information have been couched in many terms recently, but to call this change ‘humane’ feels like the height of hypocrisy. It truly strains credulity to imagine that a corporation like YouTube actually cares about the ‘most vulnerable’ people in society.

Mainstream Rationalization

Let’s call this most recent change in policy by a social media giant what it is: a small step in a subtle, ongoing effort to control the minds of people and reinforce mainstream perceptions rather than letting people sift through a variety of opinions and think for themselves.

There is little the public can do about the policy change itself because YouTube is a private company with legal rights to decide what is broadcast on their platform. But it is the rationalization that we hear in the mainstream for justifying this change that is hard to endure. YouTube claims that the change “strikes a balance between maintaining a platform for free speech and living up to our responsibility to users.” Here’s how a Guardian article frames the mainstream narrative on this particular subject:

YouTube, Facebook and other social media platforms have faced growing scrutiny in recent years for their role in hosting and amplifying political propaganda and abusive content that spark real-world consequences and can lead to violence.

In 2016, the conspiracy theory that became known as “Pizzagate” – a popular rightwing fake news story alleging that the Comet Ping Pong restaurant was linked to a child sex ring involving the Hillary Clinton campaign – motivated a gunman to fire a weapon inside the restaurant.

It’s amazing how often this one stooge firing a weapon inside Comet Ping Pong–quite possibly a staged event–is pulled out in mainstream media to try to discredit any investigations into Pizzagate. This technique is used often to bring fear and ridicule upon people following alternative narratives in an attempt to sway the public back to the mainstream perception.

Mainstream Projection

Then the mainstream parades out people like Mendrala, who will make claims that providing viewers more of what they are interested in creates an ‘echo chamber’ and a ‘feedback loop.’ In reality, these comments are pure projection, as this is what mainstream media has been and is desperately trying to continue to be: an untouchable, self-perpetuating Ministry of Truth. As George Orwell wrote in his novel 1984:

“Who controls the past controls the future. Who controls the present controls the past.”

Accordingly, we see how the mainstream media has been working in alliance with the social media giants to ‘control the present’ by incrementally removing certain content from view as we move forward, a slow and patient high-tech form of ‘book burning.’ In controlling the present, they then control the past–i.e. they get to say what events in the past mean, creating a controlled interpretation of the past that then informs us about who we are and what life is about. This then allows them to control the future, which enables the gradual acceleration of the program to enslave humanity.

The Takeaway

Our ability to see through the mainstream deception is going to be our greatest asset in averting the agenda of global elite enslavement. While they do have the power and the wealth, we have the numbers, and we have the truth on our side. If together we truly aspire to awaken to know the truth, it will set us free.

Help Support Collective Evolution

The demand for Collective Evolution's content is bigger than ever, except ad agencies and social media keep cutting our revenues. This is making it hard for us to continue.

In order to stay truly independent, we need your help. We are not going to put up paywalls on this website, as we want to get our info out far and wide. For as little as $3 a month, you can help keep CE alive!

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