Urban Danger: Tempting Fate

May 31, 2011 by  
Filed under Commentary

By Silver Shield, on May 31st, 2011


We are coming up on the 3 year anniversary of the 2008 financial crisis. The economy has not improved. The unemployment payments, for most, have run out. People’s safety nets are destroyed. Housing is collapsing again. Inflation is ravaging what is left of our money. Now we are seeing a rash of violence all over the country, Miami, Myrtle Beach, Rochester, Long Beach, Charlotte, Nashville, Chicago, and Boston. All of this while things are still working. What is going to happen when the dollar collapses?

I have had a bunch of Strategy Sessions with members that have about their physical safety. Some are looking for international changes, most are simply trying to move out of urban areas. Many are asking about personal protection steps they should take. There are many things to consider and I am glad to see that people are thinking about this issue. It is unrealistic to think that you are going to be able to defend your property for any significant amount of time against a hoard of desperate people. Most homes are simply not able to withstand fire much less gunfire. This situation becomes even more untenable in a urban environment. I highly recommend that if you live in a urban area, get out now!

The last place I would want to be is in a multicultural, densely packed, urban area with huge wealth disparities when the dollar collapses. When the dollar collapses, food and fuel will become scarce and people will become desperate. We have seen riots in the past, but let me assure you that you have not seen anything yet. I remember the Rodney King riots and this collapse will make that look like child’s play. Those riots were over some verdicts on a few men, the dollar collapse is a verdict on all of us. The shock of abject poverty and sudden desperation, will bring out the worst in people. The police will be overwhelmed at a time when their paychecks stop or don’t buy anything and their pensions wiped clean. Those officers will not risk their lives out on the street trying to save some failed system. They will be at home defending their families or simply getting out of dodge. Leaving all of those left behind to fend for themselves.

Those areas that are most dependent on the dollar paradigm, will be the worst places when the dollar collapses. I have a good friend that lives in Southern California. I have told him that out of all of the places in America I would not want to be in when this happens, is Southern California. A 20 million strong multicultural population packed into an area that does not have a lot of water, millions of illegals, and huge wealth disparities. Urban areas only work, when the dollar works. Our power grid is extremely vulnerable. Penthouses in New York will become deathtraps if the power goes out and food and fuel stop moving in.

Most people have only a few days of food to exist on, and if the water gets shut, less than that for water. What is also not very well known, and very dangerous, is that we have 1/10th of the population is on anti-depressants. If people don’t get their pills, and come off too fast, they will suffer psychological breaks at a time when their real world is falling apart. It seems every school shooting or mother drowning her kids, are from people who stopped taking their meds. I would be willing to bet that the use of these kinds of drugs are significantly higher in urban areas than rural areas. This fact is only going to compound the problem in a world already gone mad.

Throw on top of this social unrest, the inevitable political unrest. Americans now watch hundreds of thousands in Egypt, Greece and Spain march against governments and bankers. This will come to America, and I believe it will be much, much worse. America is a very violent, aggressive culture now. There is going to be a lot of outrage as America goes from the Denial Stage to the Anger Stage. I believe that this violent period will only last 3 to 6 months after the dollar collapse. The violence will burn itself out and many people will die. Those that are wise, will be far away from danger, instead of tempting fate.

“Fortune favors the prepared mind.” -Louis Pasteur

Wake Some People Up!

We Care a Lot (with Jack Blood)

May 31, 2011 by  
Filed under Vintage Jack Blood

Jack Blood’s Deadline Live with guest Doyel Shamley – The Life and Death of William Cooper

May 31, 2011 by  
Filed under Vintage Jack Blood

Jack Blood interviews Doyel Shamley on the murder of William Cooper.

DEADLINE LIVE with Jack Blood is now in itâs 10th year of broadcasting. With several years of research and comprehensive information gathering, Jack has a serious understanding of how the Global Super Elite do their business, and can deliver a daily analysis of world events with satire and a song.


The Hour of the Time has been on the air since 1993. Join us daily at 9pm EST and 10pm EST for new programs. For information on how to listen to our programs, please click here.

Our mission is to lead by example in the restoration of individual liberty and independence, as envisioned by America’s founders and referred to in their writings, by helping dedicated people educate themselves and prepare for the future.



“Dream” GOP Candidate Chris Christie the Al Gore of NJ?

May 31, 2011 by  
Filed under Commentary

ED NOTE: Like Newt, and Pawlenty, Rudy Ghouliani, John Huntsman, (and Bush McCain 08) – Golden Boy Christie seems to have a major problem on “Global Warming” – We at DEADLINELIVE.INFO do believe that there is “Climate Change” – BUT and this but is as Big as Gov Christie’s hind end… ‘Man Made’ is much more likely due to Geo Engineering, and ‘Weather Modification’ than it is due to my existence IE: Carbon is Peeeeeeple.

Depopulation, Carbon Tax, Life Laws, carbon (Toxic) Derivatives, and absurd regulations (always selectively enforced BTW) are NOT solutions… They are a Death Sentence.

~ Jack Blood


Christie is NJ’s Al Gore? Only met with alarmist scientists! Duped over Sea Level — Refused Skeptical Scientists?!‏

By Marc Morano –  Climate Depot

[Also see: Sierra Club’s Carl Pope recognizes Climate Depot as Kingmaker: ‘All seem to be mindful of the remarkable know-nothing standard set for GOP candidates by Marc Morano’

Climate Depot’s Morano on Christie: ‘His straight-shooting image has been shattered by his recent calculated and really bad climate claims’

Morano: ‘Christie did not respond to multiple meeting offerings from top scientists in New Jersey, but meets with a collection of alarmists scientists. He is following in the misguided footsteps of George W. Bush on climate. Christie is attempting to pursue the discredited strategy of accepting the alleged science of anthropogenic AGW while rejecting so called solutions’

Climate Depot’s Morano on Christie: ‘Christie’s absurd claim that more than 90% of scientists agree is the verbal equivalent of sitting on a love seat with Nancy Pelosi’

Christie has no clue what he is talking about: Flashback: Climate Con: 97% ‘consensus’ claims exposed! Only 75 anonymous scientists are behind the media’s 97% of scientists ‘agree’ claims! — More on 90% consensus claims here.

SPECIAL REPORT: More Than 1000 International Scientists Dissent Over Man-Made Global Warming Claims – Challenge UN IPCC & Gore

Why did Christie refuse to meet with Happer of Princeton?! On global warming, Christie needs to visit NJ’s own Dr. Will Happer (and Freeman Dyson!)

Flashback 2009: Will Happer Tells Congress: Earth in ‘CO2 Famine’ — ‘The increase of CO2 is not a cause for alarm and will be good for mankind’ — ‘Children should not be force-fed propaganda, masquerading as science’

Gov. Gullible — Christie duped by warmist professors! ‘Gov. Christie has chosen to listen to viewpoints outside the realm of serious science for basing policy’

‘Christie needs to show that [converstion to warmist] was a one-off mistake in judgment and correct it immediately’


Christie Listening To Alarmists Outside Of Mainstream Climate Science — ‘taking the counsel of fringe alarmists’

Christie’s Key Climate advisor Prof. Ken Miller’s sea level predictions ‘are far outside range of UN IPCC estimates & measured data’ — ‘Europe’s Envisat satellite shows sea level rising at only 3 inches per century, and that sea level is lower now than when they started measuring 8 years ago…Tide gauges in NJ indicate less than a foot of ‘sea level rise’ will occur this century and most of this is due to the land sinking rather than sea level rising’


Write-off Christie!? GOP Gov. Chris Christie now a warmist! His belief in man-made global warming ‘will surely send shock waves through the Republican Party’


‘Chris Christie: New Jersey’s Al Gore’: ‘Chris Christie for President? No thanks. I’ll write in Kris Kringle first’


Christie should join Pelosi on Love seat: WSJ: Gov. Christie’s promotion of man-made global warming ‘likely to dampen the enthusiasm of some grassroots conservatives’

WSJ: ‘Christie might have felt he needed cover for such a controversial decision. Then again, his supporters have come to admire him precisely because he doesn’t usually run for cover’


Say it ain’t So! Chris Christie tries to out Newt Newt on Climate!? Christie the warmist: ‘This decade, avg. temps have been rising. Temp changes are affecting weather patterns’

Christie’s presidential hopes go poof: ‘When you have over 90% of the world’s scientists who have studied this stating that climate change is occurring and that humans play a contributing role, it’s time to defer to the experts’


Christie Duped By Propaganda Science Claims! Christie’s Climate advisor: Prof. Ken Miller of Rutgers University claims ‘What we’re seeing today [with sea level] is unprecedented’

Ken Miller: kgm@rci.rutgers.edu

Reality Check on Prof. Miller: ‘His comparisons may be off by two orders of magnitude, but that doesn’t mean Gov. Christie shouldn’t listen to him’


Was Christie really that courageous? Warmist Paper: ‘Christie’s decision to withdraw from the regional treaty on climate change is not a major blow to the [global warming] cause’

Warmist Newspaper: ‘If you hear shrieks of horror from environmentalists over the next few days, advise them to take a pill. The economic slowdown and the sharp drop in natural gas prices have already reduced emissions beyond expectations…Ideally, Christie would have stuck with the treaty for its political symbolism’


Meet the Prof. Christie Listens to on Climate! Rutger’s Prof. Alan Robock drools over Castro and his VIP treatment in 2010 trip to Cuba robock@envsci.rutgers.edu

Robock’s lusty meeting with Castro: I stayed at ‘nicest hotel…I went in a black Mercedes…I went to private meeting with Fidel & his family…we had photo taken together…[then went in] even fancier Mercedes… this was all very surreal…I went to night club show with lots of dancers…presented me with a ‘distinguished guest’…my name engraved (‘loyalty award’)…Then to one of fanciest restaurants…One of the joys of going to Cuba is seeing the old American cars’


Christie & the Castro Enamored Prof.?! Rutger’s prof. Alan Robock educated Christie on science — Is Robock a man Christie wants to tout?! Robock enamored with Fidel Castro and VIP treatment in Cuba


Flashback: Scientists offer climate lesson for Christie: ‘Rutgers U. [warmist] scientists came to NJ Statehouse with reams of documents in the hope of convincing Christie’


Christie takes advice from this guy? After refusing to meet with Dr. Will Happer?! ‘Paul Falkowski of Rutgers U. said: ‘There is no honest argument against human climate change’


Rutgers professors briefed Christie on climate change


‘Gov. Christie a Global Warming Disciple’: ‘It’s sad to see someone of Christie’s caliber allow himself to be duped by the herd instinct to go along with these lab-coated charlatans’


Christie Affirms: I’m REALLY Not Ready to be President — ‘But Christie’s entire shtick is that he’s the guy speaking truth to all of these entrenched powers, industries, political sacred cows et al’

Christie met with climate alarmists ‘recommended by the New Jersey Environmental Federation’


Conservatives at FreeRepublic.com react to Christie’s climate views: ‘Christie’s way of saying irrefutably that he is not running for president’


‘Christie is a strange bird. He’s almost like a reverse RINO on many issues. That is, he says the liberal thing, but does the Conservative thing’


No more Christie for me: RINOism confirmed’


Global warming splits Christie administration: ‘Supporting the [AGW] was Dept. of Env. Prot. Commiss Robert Martin. On [skeptical] side was Lee Solomon, pres. of Board of Public Utilities’


Warmist NYC GOP Mayor Bloomberg: ‘I’d run away from [cap-and-trade] too’


Gov. Gullible? Gov. Christie Meets with Warmists Professors –and they convinced him AGW is a problem!


Newt Recants!? Maybe Gingrich DOES read Climate Depot now: Newly-minted climate skeptic Newt changes tune after pressure from Climate Depot!?

Welcome to scientific reality Newt! Gingrich: ‘Climate change is the newest excuse to take control of lives and you want a new bureaucracy to run our lives on behalf of the newest thing. But remember, in the mid-1970’s there was a cover of Newsweek and Time that says we’re in the age of a brand new glacial period and they had a cover of the Earth covered in ice. Now many of those scientists are still alive and they were absolutely convinced’


The New Skeptical Newt! After pressure from Climate Depot — Politico: ‘Gingrich doesn’t buy the established science of global warming’




Rhode Island Gov Caves to Fed, Stops Medical Marijuana Centers

May 31, 2011 by  
Filed under Police State

Meet the New Boss – Same as the Old Boss


5/2/2011 – Governor Lincoln Chafee has announced that he will put an indefinite hold on the state’s three medical marijuana dispensaries from opening after receiving a threatening letter from US Attorney Peter Neronha on April 29th.

The Providence Journal published Chafee’s press statement:

May 2, 2011
Statement from Governor Lincoln D. Chafee Regarding Compassion Centers

The United States Attorney for the District of Rhode Island delivered a letter to me on Friday afternoon which was copied to the Director of the Department of Health and the three Compassion Center applicants. That letter, as well as similar letters sent to officials in other states, clarified the Department of Justice’s position on medical marijuana. The Department of Justice previously indicated that it would not focus its limited resources on doctors and their sick patients who prescribe and use marijuana if such use was permitted by state law. This position was interpreted by some states as giving them latitude to authorize medical marijuana cultivation and distribution programs. Friday’s letter makes it clear that DOJ will now pursue certain commercial cultivation and distribution of medical marijuana, even if such cultivation and distribution is permitted by state law. Compassion centers, their owners, landlords, financiers and other operations “facilitators” are identified as potential targets of federal law enforcement activities.

None of Rhode Island’s compassion center applicants have received a certificate of registration to date. In light of the United States Attorney’s articulated position on closing compassion centers, seizing proceeds and prosecuting business enterprises that market and sell medical marijuana, I have placed a hold on the State’s medical marijuana certificate of registration program. During this hiatus, I will be consulting with the governors of other states with similar medical marijuana programs, with federal officials and with the compassion center applicants themselves.

Several governors have recently alluded to a planned meeting on the medical marijuana issue. The National Governors Association is the official body of these elected officials. NGA is currently led by Governor Christine Gregoire of Washington.  DOJ also sent a letter to Gregoire, that action prompted her to veto parts of a new law that would have regulated medical cannabis dispensaries.

Read more at Freedomisgreen.com:

Fed Curls Fist at Rhode Island Marijuana Dispensaries

Progressives Finally Tire of Mr Ed Shultz, MSNBC-GE Job in Question… (2 down 3 to go)

May 31, 2011 by  
Filed under Commentary

By Jack Blood


I have a pretty high tolerance for screaming Neo Libs, but the crew over at GE never fails to make me consider canceling my cable. From ADMITTED Socialist and gun grabber Larry O’bamaDonnell – to Fabian (Rhodes Scholar) Rachel Mad Cow, and of course Mr race card himself Chris (Obama gives me a “tingle” down my leg) Matthews…… The phony Left vs Right, Establishment Dems can do no wrong; partisan hack attacks on good men like Rand Paul seem more worthy of Moveon.org or some other Soros / Carnegie Mellon, Rockefeller, or Ford Foundation vehicle, than on a major cable “news” station in the USA.

First Keith O’bamamann went down after it was revealed that he was contributing to the campaign of Rand Paul’s opponent Trey Grayson, all the while bashing Sen Paul and using his position and MS-GE to lie, distort, and cover. Victory!

Now Mr Ed seems to be in hot water.

Not from the evil conservatives (All of whom are portrayed as racist, know nothings, and killers of the elderly and the poor…) No. The attacks are coming from Ed’s “base”. Those who count themselves as REAL Liberals who are anti torture, assassination, police state, and war.
Those REAL Americans who might disagree with you and I, but whom also disagree with the Bush / Cheney like behavior of Cousin Barry O’bama.

Ed Shultz, Rachel Maddow, Chris Matthews, and Larry O’Donnell are perfect examples of how there really is not a whit of difference between Neo Cons and Neo Libs. Like wise… It could be said that there is little difference between Paleo Cons (Libertarians) and Paleo Libs (REAL Progressives) So can’t WE get along? Likely because of divisive disruptors like Shultz, Maddow, O’Donnell, and (alleged “moderate” Matthews!

And YES I have similar problems with Hannity, O’Rielly, and Beck.

Like building 7 on Sept 11th… MSNBC-GE-Comcast seems to be imploding from within. Could this be a prelude to 2012?

Salon.com is one of the leaders in this merciless take down of warmongering, establishment frenching Neo Libs like Mr Ed Shultz (himself a former Neo Con) – Here are just a few examples, and proof of why we think that Mr Ed’s days on my TV are numbered:

Ed Schultz blows up at David Sirota

The forgotten right-wing past of Ed Schultz

The most reliable Democratic partisan on television used to be the Rush Limbaugh of the Great Plains

When the U.S. began bombing Libya last month, MSNBC’s Ed Schultz mounted a robust and combative case in favor of the new war. Repeatedly showing footage of the aftermath of the 1988 Lockerbie bombing and invoking Americans allegedly killed by Moammar Gadhafi (in the 1980s), Schultz insisted on referring to the rebels as “freedom fighters.” At one point, he even questioned the patriotism of President Obama’s critics: “Where is the patriotism of the Republican Party?”

As one of the most reliably partisan voices on cable news, Schultz’s support for a Democratic president’s war would seem to be unsurprising. But his nationalist bombast also seemed to betray reactionary tendencies — and served as a reminder of an often overlooked chapter in the liberal talker’s biography: Schultz spent years as a rabid right-wing talk radio host in North Dakota before abruptly switching sides about a decade ago and emerging as one of the country’s preeminent left-of-center personalities.

Vestiges of the old Ed surface from time to time. Last September, for example, Schultz responded to a wave of gang violence in Chicago by calling on Obama to deploy the military in the city:

Mr. President, I got a great idea as to where you can send those troops that you just brought home from Iraq. How about Chicago, Illinois and a bunch of other big cities in this country? It’s time we look out for our own backyard, security is an issue.

But all of this pales in comparison to the sort of rhetoric Schultz served up in his days as the Rush Limbaugh of the Great Plains. His old station, KFGO in Fargo, told me that recordings of his old shows don’t exist. But a string of profiles from 2004, when Schultz was launching his left-leaning national radio show, remain available online and preserve some of his statements.

The right-wing version of Schultz opposed abortion in all circumstances, mocked homeless people by sneering, “How about getting a job?” and proclaimed that “I’d like to see the president get all the illegals out of the country, so we can start all over again.” And in an homage to Limbaugh, Schultz would tell listeners that he was broadcasting from “high atop” the studios of his Fargo radio station.

Ryan Bakken, a columnist at North Dakota’s Grand Forks Herald and a longtime Schultz skeptic, tells me Ed’s ideological shift was drastic. “Ed was about as conservative as you could come. He may not have switched 180 degrees, but he switched 179,” Bakken says.

Schultz declined to comment for this story through an MSNBC spokeswoman. But in his books, Schultz describes a first date with his future wife, Wendy — whom he met for lunch at a homeless shelter — as the event that sparked his reconsideration of politics. In his 2010 book, “Killer Politics,” Schultz claims he didn’t even know there were homeless people in Fargo:

Wendy asked me to meet her at a homeless shelter where she volunteered. It hadn’t really dawned on me that homelessness could exist in Fargo. In my mind, a homeless person was a slacker, someone who just wasn’t trying hard enough, and said these self-righteous things on the air. I didn’t know then that one in four homeless people is a Vietnam veteran.

But in 2000, according to a Washington Post profile, Schultz announced on the air that he’d become a Democrat. It was auspicious timing. That year, George W. Bush was elected president, creating an eight-year bull market for left-leaning media.

Schultz’s transformation was so thorough that, in 2003, he even considered running for North Dakota governor against a Republican incumbent. Instead, Schultz — one of the few regional liberal radio hosts with solid ratings — was recruited to be part of an effort to create an alternative to conservative talk radio. His national show launched in ’04 with financial assistance from Democracy Radio, a group for which several Democratic senators — including Hillary Clinton, Tom Daschle and Debbie Stabenow — had raised money.

Some still doubt the motivations behind Schultz’s political shift.

“Ed saw an opening,” says Bakken, the Grand Forks Herald columnist. “He’s always been smart and able to take advantage of opportunities.” Bakken says that earlier in Schultz’s career, when he was a sportscaster covering football, he switched his allegiance from North Dakota State University to rival University of North Dakota after changing stations.

In an ’03 column, Bakken speculated that Schultz’s transformation was a response to competition from another right-wing talker:

The reason for his shift is that Scott Hennen moved next door in Fargo and took a foothold on the right side of the political spectrum. You can’t get to the right of Hennen without falling off the edge of the world. So that left the left as the only ground available to occupy. You can’t live in the thoughtful, open-minded middle and keep your job in talk radio.

But in his ’04 book, “Straight From the Heartland,” Schultz insists that “in a medium dominated by hard-right talkers, what I was doing looked a lot like career suicide. But it was simply a change of heart.”

AND…. This interview with Blackwater Author Jeremy Scahill might just have been the beginning of the end for Mr Ed:

So after all of this, it seems CLEAR…. Good things come to those who wait, and in the end there is no refuge for traitorous scoundrels!

Now lets just “Hope” that REAL Liberals keep holding these “repeaters” hooves to the fire.

The 2012 Presidential Quiz

May 31, 2011 by  
Filed under Americas

Al-Jazeera footage captures ‘western troops on the ground’ in Libya

May 31, 2011 by  
Filed under World

The London Guardian

Armed westerners have been filmed on the front line with rebels near Misrata in the first apparent confirmation that foreign special forces are playing an active role in the Libyan conflict.

A group of six westerners are clearly visible in a report by al-Jazeera from Dafniya, described as the westernmost point of the rebel lines west of the town of Misrata. Five of them were armed and wearing sand-coloured clothes, peaked caps, and cotton Arab scarves.

The sixth, apparently the most senior of the group, was carrying no visible weapon and wore a pink, short-sleeve shirt. He may be an intelligence officer. The group is seen talking to rebels and then quickly leaving on being spotted by the television crew.

The footage emerged as South Africa‘s president, Jacob Zuma, arrived in Tripoli in an attempt to broker a ceasefire. He described reports that he would ask Muammar Gaddafi to step down as “misleading”, and said he would instead focus on humanitarian measures and ways to implement a plan concocted by the African Union for Libya make a transition to democratic rule but not seek Gaddafi’s exile.

The westerners were seen by al-Jazeera on rebel lines late last week, days before British and French attack helicopters are due to join the Nato campaign. They are likely to be deployed on the outskirts of Misrata, from where pro-Gaddafi forces continue to shell rebel positions to the east.

There have been numerous reports in the British press that SAS soldiers are acting as spotters in Libya to help Nato warplanes target pro-Gaddafi forces. In March, six special forces soldiers and two MI6 officers were detained by rebel fighters when they landed on an abortive mission to meet rebel leaders in Benghazi, in an embarrassing episode for the SAS.

The group was withdrawn soon afterwards and a new “liaison team” sent in its place. Asked for comment on Monday, a Ministry of Defence spokeswoman said: “We don’t have any forces out there.”

The subject is sensitive as the UN security council resolution in March authorising the use of force in Libya specifically excludes “a foreign occupation force of any form on any part of Libyan territory”.

Despite more than two months of bombing by Nato, rebels have remained unable to advance west of Misrata, or west of Brega, 300 miles to the east. The capital, Tripoli, also remains in the grip of Gaddafi, who has defied all attempts to force him to leave.

However, a fresh blow to his position came yesterday as eight Libyan army officers appeared in Rome, saying they were part of a group of as many as 120 military officials and soldiers who had defected from Gaddafi’s side in recent days.

The eight officers – five generals, two colonels and a major – spoke at a news conference organised by the Italian government. The officers said they had defected in protest at Gaddafi’s actions against his own people, citing killings of civilians and violence against women. They claimed that Gaddafi’s campaign against the rebels was rapidly weakening.

Air force pilots landed in Italy and defected earlier in the rebellion. Under-trained and under-manned rebel forces have been encouraging defections as a way to whittle away support for Gaddafi in the absence of a ground army sent to assist them.

The latest group are reported to have been spurred largely by tensions arising from the appointment newcomers to senior positions in the security services.

The behaviour of these men, many of them relatively youthful Gaddafi loyalists in their mid-30s, are throught to have stirred anger and dismay among the army’s officer ranks.

In April, William Hague announced that an expanded military liaison team would be dispatched to work with the Benghazi-based Transitional National Council, which is positioning itself as a democratic alternative to Gaddafi’s rule.

The foreign secretary said the team would help the rebels improve “organisational structures, communications and logistics” but stressed: “Our officers will not be involved in training or arming the opposition’s fighting forces, nor will they be involved in the planning or execution of the [transitional council’s] military operations or in the provision of any other form of operational military advice.”

There were unconfirmed reports at the time that Britain was planning to send former SAS members and other experienced soldiers to Libya under the cover of private security companies, paid for by Arab states, to train the anti-government forces.

Homeland-$ecurity Business Still Booming Ten Years Later

May 31, 2011 by  
Filed under Economy

Published: Sunday, 29 May 2011 | 10:25 AM ET
By: Constance Gustke,
Special to CNBC.com

A decade after the 9/11 terror attacks, homeland security is still a growth business.

The niche—that includes James Bond-like tools such as infrared cameras, explosive detectors and body scanners—is expected to grow 12 percent annually through 2013, according to Morgan Keegan.

Source: Getty Images

“Homeland security is reactive,” says Tim Quillen, a senior equity analyst at investment banking firm Stephens Inc. “The stocks are hedges against bad things happening.”

One example: the underwear bomber, who was thwarted in late 2009. After that a bell weather homeland security stock OSI Systems [OSIS  39.22  0.11  (+0.28%)   ] rocketed 30 percent within a month. “The stock went on a tear,” says Brian Ruttenbur, a research analyst at Morgan Keegan. Why? OSI makes X-ray and metal detectors used to scan people, baggage and cargo that it sells worldwide. During the past 12 months ending yesterday, the stock has popped from $25 to $40, driven by border and port growth.

Much has changed, since the government spent over $20 billion beefing up airport baggage screening nationwide with X-ray devices.

Airline security is a small business: about $1 billion. There’s 2,100 airport security lanes in the U.S., and 90 percent use X-ray scanners.

“The scanners are ten plus years old now,” says Ruttenbur and “going through an upgrade cycle.” Recently, the government has ordered another 500 scanners though.

Screening cargo going on aircraft and boats at ports is also spiking. Now, only a small percentage of all cargo is scanned. Security screening will grow ten percent to 15 percent annually in coming years, says Ruttenbur in a recent report. This driver will help OSI Systems pump out strong security earnings.

Tiny Niche, Big Clout

There aren’t any pure plays within homeland security though—neither stocks or ETFs. Some players like OSI Systems sell their screening devices to healthcare companies too, so their homeland security earnings are diluted.

“You have to spread the net wide and separate reality from hype,” says Quillen

Both OSI Systems and Flir Systems [FLIR  35.72  0.20  (+0.56%)   ] are undervalued right now, says Quillen.

Flir Systems is a well-managed market leader in infrared cameras used to protect critical buildings, he says. This fast-growing market is slated to expand 20 percent annually, though only half of Flir Systems’ revenue come from government business. The  stock rose from $29 to $36 in the past year. And Quillen has a 12-month price target of $43 on it.

OSI Systems is another favorite. In the first quarter of the year, OSI’s security group revenues grew 27 percent over last year’s.

“The stock is a long-term play,” says Jonathan Richton, an analyst at Imperial Capital, citing OSI’s developing cargo scanning business. Analysts peg five-year earnings growth at 20 percent. Another plus driving earnings: OSI Systems is aggressively tightening operating margins.

A third player, American Science and Engineering [ASEI  85.95  -0.12  (-0.14%)   ] makes cargo and parcel search systems. But the stock is expensive right now, say analysts, since the company missed first-quarter revenue targets.

In the past year, the stock has risen from $77 to $88. Ruttenbur expects only 4-percent earnings growth this year but 10 percent to 15 percent in the next few years, as orders pick up. His 12-month price target: $94.

For investors casting a wide net, L-3 Communications [LLL  81.745  0.145  (+0.18%)   ] is a homeland security monolith. It’s also the sixth largest U.S. defense contractor.

The company makes surveillance equipment for airports and checkpoint scanners. “They’re playing a meaningful role,” says Quillen, “but security revenue is only about 5 percent.”

Its stock price has been flat over the last year.

These days, homeland security niche players are a safe bet though — even after the recent death of 9/11 mastermind Osama bin Laden.


U.K. admits training Saudi forces used to crush Arab uprising

May 31, 2011 by  
Filed under World

Raw Story

The British Ministry of Defense (MoD) confirmed last week that U.K troops may have trained Saudi Arabia’s national guard before they were used to help crush civil rights protests in Bahrain.

Documents obtained by The Observer under Britain’s Freedom of Information Act revealed that British forces regularly instructed the Saudi national guard in “weapons, fieldcraft and general military skills training, as well as incident handling, bomb disposal, search, public order and sniper training.”

“All BMM personnel, as well as support costs such as accommodation and transport” was paid for by Saudi Arabia, according to the documents. Up to 20 teams a year are sent to the kingdom.

In March, 1,200 Saudi troops entered Bahrain to help quell demonstrations. The Sunni Saudi royal family was reportedly worried that the Shiite majority in Bahrain could gain control there.

While the U.K. said it was “deeply concerned” about human rights abuses by Saudi troops, the U.S. denied that the operation amounted to an occupation.

“Britain’s important role in training the Saudi Arabian national guard in internal security over many years has enabled them to develop tactics to help suppress the popular uprising in Bahrain,” the Campaign Against Arms Trade’s Nicholas Gilby told The Observer.

“Last year we raised concerns that the Saudis had been using UK-supplied and UK-maintained arms in secret attacks in Yemen that left scores of Yemeni civilians dead,” Amnesty International’s U.K. Arms Programme director Oliver Sprague said.

“We need a far more rigorous case-by-case examination of the human rights records of those who want to buy our equipment or receive training,” he added.

Additional Freedom of Information Act responses obtained by The Independent indicated that Britain also trained Bahraini army officers. That training continued even after the Bahraini royal family began to use the military to crush protests.

“All overseas requests for defense training are considered on a case-by-case basis and it would not be provided if we thought such training would lead to human rights abuses,” an MoD spokesman said. “Indeed, providing training to the same high standards used by UK armed forces helps to save lives and raise awareness of human rights.”

At least 29 people have died in demonstrations in Bahrain since February. Hundreds more have been injured.

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