FUSION MAGAZINE EXCLUSIVE: The Truth Behind the Trees - Infiltrating the Grove

By Jon Ronson


 


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Them: Adventures with Extremists

For years conspiracy theorists have spoken of a network of secret clubs from which evil, shadowy cabals rule the world. Sometimes these cabals are known as The Illuminati, sometimes the New World Order

Some conspiracy theorists say these wicked elitists attend a secret summer camp called Bohemian Grove in the forests of Northern California, where they dress up in robes and hoods and perform a bizarre ritual that culminates in a human effigy being thrown into the fiery belly of a 50-foot stone owl. They say the Bushes regularly attend, as does Dick Cheney and Henry Kissinger.

“That can’t be true,” I thought.  But yet the rumors persisted, so I decided to see for myself.  I snuck into Bohemian Grove. 

An Inside Job

I had no idea how to accomplish this. My original plan had been to enter the forest alone, perhaps climb up some hills, and basically just scout around until I found it. Recognizing that this was an ill- conceived strategy, I telephoned Alex Jones, a famous conspiracy talk-show host from Austin, Texas. He instantly invited himself along.

“That place is sick,” he yelled. “You’ve got presidents and corporate chieftains running around naked. They have orgies. They worship their devil owl. I’ll smuggle a camera in and get right up in their faces.”

“I think stealth might be a better approach if we want to witness the owl burning ceremony,” I said.

“You’re right,” said Alex. “Stealth.”

I rendezvoused with Alex and his friend Mike at the Occidental Motel, near Monte Rio. A local lawyer named Rick – who had infiltrated the Grove himself – agreed to give us advice on how to get in.

I told Rick my vague river/terrain plan.

“Going in that way,” he replied, “will get you killed. We are talking about a sheer rocky canyon.”

“So what’s the secret?” I asked.

“Just walk up the drive,” he said. “That’s what I did. There’ll be one or two security guys sitting on the side of the road looking bored.  What you don’t do is stand out. Dress preppy. Hell, I’ll come in with you.”

The next morning we drove into town to buy preppy clothes at Eddie Bauer. The visual transformation was astonishing. Alex and Mike no longer looked like highly-strung Texans. They were now the very picture of East Coast elite, dressed in sport shirts and khaki.  They honed their newfound preppiness back at the hotel by wandering up and down the corridor in an effeminate fashion and discussing nanotechnology.

In the end Alex and Mike went in separately from me. They couldn’t be completely sure that I wasn’t part of some complex trap to capture them and offer them up as a sacrifice to the owl god.

Rick stayed with me and we walked up the drive together. We were immediately approached by a security guard.

“Hey there,” said Rick.

“You guys should have driven up here,” smiled the guard.

“Oh, we wanted to enjoy the air,” said Rick.

“No problem,” the guard replied. “Have a good time.”

And that was that; we were in Bohemian Grove. I couldn’t believe it was that easy.

Cremation of Care

The first thing we noticed were clusters of canvas tents everywhere. Red lanterns hung in the trees like little devil eyes. The Grove’s ambience seemed deliberately spooky, as if a designer had been instructed to give it some kind of chic druid-Satanic milieu.

“Look,” Rick said. He was standing by a notice board of snapshot photographs of elderly preppy-looking gentlemen drinking and laughing. Some were dressed in full drag, with fishnet stockings and hideously applied make-up, humorously oversized fake breasts protruding from their nylon blouses. There was also something else on the board: a guest list. I quickly scanned the names.  Bohemians were wandering past me and I didn’t want to appear too nosey. Under C was the name Cheney, Richard.  Under B was Bush, George.

I turned around to find myself face to face with a giant stone owl, nestled between two huge redwoods.

“The shrine,” whispered Rick. “Hey. There’s your friends.”

Sure enough, Alex and Mike were heading down the path towards us.

“Hi, you two!” I said.

“Don’t go that way!” hissed Alex. “There are cameras in the trees!”

“There are owls everywhere!” Mike exclaimed, his eyes wide in terror.

Before I could say another word, they were gone.

9pm. There was no formal announcement, but the Bohemians instinctively knew that the time had come for them to head down to the lagoon. Rick and I found a prime spot, directly opposite the owl.

The grassy bank was soon packed. A thousand men had drifted down and were crowded together, sitting cross-legged on the grass. A few scrutinized me. I was probably the youngest person there.

I looked behind me and spotted Alex and Mike. We briefly made eye contact.

Suddenly we were plunged into darkness. The drums thundered. Boom! Boom!  As each boom rang out a robed man carrying a flaming torch appeared amid the trees.

“Hail, Bohemians!” said the High Priest, wearing a robe of silver and gold.

After much pomp and circumstance, the High Priest informed the crowd, these men of wealth and power, that “Dull Care,” arch-enemy of “Beauty,” must be slain!

“Bring fire!” he roared.

A startling thunder crack rang out through the trees, followed by a scary, cackly voice. It was the voice of Dull Care.

“FOOLS!” he roared. “FOOLS! When will ye learn that me ye cannot slay? When ye turn your feet to the marketplace am I not waiting for you as of old?”

“Nay, thou mocking spirit,” spluttered the High Priest. “We know thou waitest for us when this our sylvan holiday shall end. But this too we know: year after year, within this happy Grove, our fellowship has banned thee for a space. So shall we burn thee once again!”

At this moment, a papier-mâché effigy was thrown into a bonfire in front of the owl.

“AAAARGH,” said Dull Care, his grotesque death-rattle filling the forest.

“Hooray!” The crowd erupted with celebration.

Fireworks went off, we all clapped, and the Grove descended once again into silence, broken only by the sound of elderly men murmuring to their neighbors: “Could you possibly help me get up?”

Seeing is Not Always Believing

I met up with Alex back at the motel.

At one o’clock in the morning Alex hooked his hidden camera up to the TV set. He’d managed to capture the whole thing.

“Nobody has ever lived to get this footage out before,” Mike said. 

“I’m not going to lie, I was scared to death in there.”

It was clear that the Texans’ interpretation of the ceremony differed from my own. My lasting impression was of an all-pervading sense of immaturity: the men in drag, the odd spooky rituals. Alex and Mike, on the other hand, saw it as proof that the ruling elite are evil and satanically worship owl gods.

“It was much worse than I expected,” Alex said.  “I was hearing little bits of conversation. Old men were saying, ‘Yes! That’s the key! We must burn him again! I do want to burn him again.’ These people were in a fever.”

“Even so,” I replied, “it isn’t as if you overheard any of them secretly discussing global control or anything like that.”

There was a short silence.

“Yes I did,”Alex exclaimed. “I heard old men going around bragging about how they manipulate the world. I heard two guys saying to each other, ‘Yes, we’re going to get him elected.’”

“These people are sick,” Mike added.

Reflecting on the Grove

In the weeks that followed, Alex streamed his footage of the ritual onto Google video, where you can still watch it for yourself. His voice-over inferred that it might have been actual human sacrifice that we witnessed. Soon after, Richard McCaslin, a fan of Alex’s who believed his warped interpretation of the events, was caught trying to break into the Grove.

He was heavily armed.

Jon Ronson is an author and documentary film maker from London. His books include Them: Adventures with Extremists (in which you can read more of his Bohemian Grove adventure) and The Men Who Stare At Goats.

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Trouble ahead for the housing market

CHRIS J RATCLIFFE/AFP/Getty Images

Our good friend John Rubino over at DollarCollapse.com just released an analysis titled US Housing Bubble Enters Stage Two: Suddenly Motivated Sellers.

He reminds us that housing bubbles follow a predictable progression:

  • Stage One: Mania -- Prices rise at an accelerating rate as factors like excess central bank liquidity/loose credit/hot foreign money drive a virtuous bidding cycle well above sustainably afforable levels.
  • Stage Two: Peak -- Increasingly jittery owners attempt to sell out before the party ends. Supply jumps as prices stagnate.
  • Stage Three: Bust -- As inventory builds, sellers start having to lower prices. This begins a vicious cycle: buyers go on strike not wanting to catch a falling knife, causing sellers to drop prices further.

Rubino cites recent statistics that may indicate the US national housing market is finally entering Stage Two after a rip-roaring decade of recovery since the bursting of the 2007 housing bubble:

  • the supply of homes for sale during the "all important" spring market rose at 3x last year's rate
  • 30 of America's 100 largest cities now have more inventory than they did a year ago, and
  • mortage applications for new homes dropped 9% YoY

Taken together, these suggest that residential housing supply is increasing as sales slow, exactly what you'd expect to see in the transition from Stage One to Stage Two.

If that's indeed what's happening, Rubino warns the following comes next:

Stage Two’s deluge of supply sets the table for US housing bubble Stage Three by soaking up the remaining demand and changing the tenor of the market. Deals get done at the asking price instead of way above, then at a little below, then a lot below. Instead of being snapped up the day they’re listed, houses begin to languish on the market for weeks, then months. Would-be sellers, who have already mentally cashed their monster peak-bubble-price checks, start to panic. They cut their asking prices preemptively, trying to get ahead of the decline, which causes “comps” to plunge, forcing subsequent sellers to cut even further.
Sales volumes contract, mortgage bankers and realtors get laid off. Then the last year’s (in retrospect) really crappy mortgages start defaulting, the mortgage-backed bonds that contain their paper plunge in price, et voila, we’re back in 2008.

Rubino's article is timely, as we've lately been seeing a proliferation of signs that the global boom in housing is suddenly cooling. I've also recently encountered similar evidence that the housing market in my own pocket of northern California is weakening, and I'm curious to learn if other PeakProsperity.com are seeing the same in their hometowns.

The Global Housing Bubble

Housing, as they accurately say, is local. Conditions differ from region to region, making generalizations of the overall market difficult.

That said, the tsunami of $trillions printed by the world's central banking cartel since 2008 clearly found its way into the housing market.

The world real estate market is HUGE, over $200 trillion. That dwarfs the global debt and equity markets. So it's no surprise the central authorities did all they could to reverse the losses the GFC created for property owners.

As a result, many of the most popular locations to live are now clearly in bubble territory when it comes to home prices:

UBS map of global housing bubbles

The chart above displays the most bubblicious major cities around the world in red. But it's important to note that the merely 'overvalued' markets denoted in yellow, and even some of the green 'fair-valued' ones, are still wildly-unaffordable for the average resident.

For example, in "yellow" San Francisco, where the median home now costs $1.6 million, prices are well-above the excesses seen during the previous housing bubble:

And in 'fair-valued' New York City, the median household must spend 65% of its annual income on housing alone.

Is it any wonder that 70% of millennials who don't yet own a home fear they'll never be able to afford one?

Signs Galore Of Topping Markets

At the end of a speculative bubble, it's the assets that are most overvalued that correct first and correct hardest.

So we would expect that as the highest-priced real estate markets fare from here, the general real estate market will follow.

When we take a closer look at what's currently going on with the red-hot real estate markets noted in the chart above, we indeed see evidence supportive of Rubino's claim that the decade-long Stage One mania may now be ending.

Here's a spate of recent headlines about these cities:

Sure looks like Rubino's predicted Stage Two symptoms of rising supply and stagnating prices.

Local Signs, Too

As mentioned, I live in northern California, quite close to Santa Rosa.

Things here aren't as nuts as they are in San Franscico; but it's still a moderately-affluent region with lots of second homes. It's one of the semi-frothy areas I'd expect to see cooling off in first should there be a downwards turn in macroeconomic conditions.

Located less than an hour north of San Francisco, residential housing prices here have roughly increased 2x over the past six years as the Bay Area has boomed. Supply has been in chronic shortage, exacerbated by the loss of thousands of structures burned during last October's destructive Tubbs fire.

But recently, for the first time in many years, realtors here are beginning to talk of a softening they're seeing in the local housing market.

Median sale prices dropped from May to June, which is counter to previous years. And several towns are seeing year-over-year declines in median price -- something unheard of over the past 7 years.

Meanwhile, the days-on-market ratio for properties is beginning to creep up.

Of the greatest concern to the realtors in my area: bidding wars are no longer happening. Houses are selling either at or below asking prices now. That's a *big* development in a market where houses have routinely sold for $50-100K+ above the listing price.

In a similar vein, I'm hearing evidence of the softening rents down in San Franscico and the East Bay (Oakland/Berkeley). Wolf Richter has done a good job chronicalling the substantial volume of newly-constructed units that have recently hit the market threatening to depress rents, and I've heard from a multi-family unit owner down there how landlords in the area are now finding their rents ~$500 too high for the market to bear.

This is all early and anecdotal data. It's too little at this point to claim definitively that my local housing market has entered Stage Two.

But I'm curious to hear from other PeakProsperity.com readers. What are you observing in your local markets? Are you seeing similar signs of concern?

Please share any insights you have in the Comments section below. Collectively, we may be able to add clarity, in one direction or another, to Rubino's hypothesis.

Prepping For Stage Two

Whatever the timing, Stage Two is an inevitability for today's ridiculously-overpriced real estate markets. It's not a matter of if it (as well as Stage Three) arrives, but when.

Given the data above, I think Rubino is correct in his assessment. Or at least, correct enough that prudent action is warranted today.

This makes even greater sense when considered along with the current trends of rising interest rates and quantitative tightening. Remember, home prices and interest rates have a mathematically inverse relationship: as rates go up, home prices must go down (all else being equal). And as central banks start withdrawing in earnest the excess liquidity that inflated property values to their current nose-bleed heights, expect further downward pressure on prices.

To drive the urgeny home even harder, we haven't even yet talked about the damage an economic recession and/or a painful correction in the financial markets would wreak on the real estate market. With the current expansion cycle the second-longest on record and our all-time-high markets looking increasingly vulnerable, it seems very unlikely we'll avoid at least one of those crises in the near to mid-future.

Here are worthwhile steps we recommend at this point:

  • Consider selling: If you're a homeowner and are not committed to remaining in your property for the next decade+, do some scenario planning. If prices fell 20%, how much of a financial and emotional impact would that have on you? If you have substantial equity gains in your home, Stage Two is the time to protect them. If you have little equity right now, make sure you're fully aware of the repercussions you'll face should you find yourself underwater on your properity. What will your options be should you lose your job in the next recession? Whether to hold, or sell now and rent, is a weighty decision; and the rationale differs for each household -- so we strongly recommend making it with the guidance of your professional financial advisor.
  • Raise cash: The vicious cycle that begins as Stage Two transitions into Stage Three is deflationary. Lower prices beget lower prices. During this period, cash is king. By sitting on it, your purchasing power increases the farther home prices drop. And when the dust settles, you'll be positioned to take advantage of the resulting values in the real estate market. We've written at length about the wisdom of this strategy given current market conditions, as well as how, while waiting for lower prices, you can get 30x the return on your cash savings than your bank is willing to pay you, with lower risk. Our recent report on the topic is a must-read.
  • Educate yourself: Yes, real estate is overpriced in a number of markets. But it has been and will remain one of the best ways available to the non-elites to amass income and tangible wealth. And as mentioned, when the next Stage 3 brings prices down, there will be value to be had -- potentially extreme value. If you aren't already an experienced real estate investor, now is the time to educate yourself; so that you'll be positioned to take informed action when the time to buy arises. Our recent podcast interview on Real Estate Investing 101 is a good place to start.

In Part 2: The Case For Starting To Build A (Small) Short Position, we conduct a similar analysis into the overvaluation and growing vulnerability of the financial markets (which are highly likely to correct much faster, sooner and more violently than the housing market), including the details on a recent short position we've started building.

The tranquil "free ride" the financial and housing markets have had for nearly a decade are ending. The string of easy gains with little effort are over now that the central bank money spigots are turning off at the same time the "greater fools" pocketbooks are tapping out.

For a brief time, prices will waiver, as investors remain in denial and refuse to sell at lower prices. But soon that denial will turn to panic, and prices will plummet.

Make sure you're positioned prudently before then.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

It's a bad day when you've stepped in dog poop.

But it's an even worse day when you're stepping in human poop — especially when underneath the poop is a dirty needle. That's the glory that is San Francisco today.

The city doesn't know what to do. There's more human feces in the street than ever before. This is starting to look like human evolution in reverse. And I want to be a helper in this situation.

RELATED: What the 💩 is going on in San Francisco?

And so, as a helper, I've got an idea for San Francisco. And I'm going to share it with you — free — at absolutely no cost to you. This is a public service.

We made a little sign — "No Human Pooping" — because I think that's clear enough, even for those who may be high on heroin, to understand.

Feel free to download and print as many copies as you'd like, and post them on your property. Or click the buttons below to share on social media.

Something has got to be done about this 💩.

Click here to download your printable copy of the sign.

What the 💩 is going on in San Francisco?

Justin Sullivan/Getty Images

Finally, a beautiful Sunday in your picturesque bayside city. You paid good money to move here. Not cheap. The $150,000 range leaves you just about middle class. In Ohio, that'd buy you a small town. But this is better than Ohio, you tell yourself. Sure, the city isn't as scenic as the postcards, but here you are, at the YMCA fields. You're coaching your kid's soccer team. And today is the co-ed Under-8 soccer final. Really, it's their World Cup. You bought the good oranges and Capri-Sun—the special edition kind with cold-sensitive images on the front. You worked hard for this moment.

RELATED: Illegal Immigrant Hits Jackpot and Is Awarded $190K From San Francisco for Deporting Him

Your job is demanding. Sometimes, you're there 60, 70 hours a week. But somebody needs to coach this soccer team so here you are. And, what. What is that. Your son, he's dribbling past the kid shoving dandelions into the ant hill, and, is he going to score a goal? Yes. Yes, he is, but all of a sudden, right as your son's leg angled back to kick the ball, you hear an animalistic scream behind you. You turn around, and see a man shrieking as he squats over the sidewalk. What is he doing, you ask yourself quickly. Oh, God. You know what he's doing.

Following the death of Mayor Ed Lee, San Francisco Mayor London Breed inherited quite a mess. San Francisco is in shambles. Despite topping nearly every list of the nation's highest cost-of-living prices, San Francisco has been plagued by homelessness, often with unbelievable negative consequences.

I'd like to add that, the segment begins with footage of Mayor Breed walking around San Francisco, and as she passes a group of homeless people, at least one person is openly injecting themselves with a needle.

I shouldn't even have to say this, but helping disadvantaged people is a good thing. The Bible is very clear on the subject.

"Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the poor and needy." - Proverbs 31:8-9

San Francisco's approach to dealing with the poor is in fact detrimental to the poor.

"Whoever oppresses the poor shows contempt for their Maker, but whoever is kind to the needy honors God." - Proverbs 14:31

"Looking at his disciples, [Jesus] said: "Blessed are you who are poor, for yours is the kingdom of God. Blessed are you who hunger now, for you will be satisfied. Blessed are you who weep now, for you will laugh." - Luke 6:20-21

San Francisco's approach to dealing with the poor is in fact detrimental to the poor. Walk around the city and you'll see a lot of thousand-dollar tents that function as homes, gifts from good-natured but ultimately misguided people, who function more as enablers than rescuers. The city has set up injection sites, where homeless heroin addicts are provided with clean syringes and allowed to shoot up without punishment. May God bless them. And may we help them in a better way.

Revolutions are started by youth. And the left is desperate for young blood, or, worse, for fresh blood. They're turning on their own.

As reported by the Los Angeles Times, Sen. Dianne Feinstein is more often considered too radical. In a show of force, California Democrats have chosen Feinstein's opponent, Kevin de León, over her.

RELATED: 'I remember thinking liberals were the good guys': Dave Rubin on why he really left the left

Lynne Standard-Nightengale, a member of the Amador County Democratic Central Committee, said she wanted to "send a message."

I just think we need a younger, progressive person there. The Democratic Party in California has moved to the left, and he personifies those values.

Feinstein and de Leon will face each other again in November because California has an open primary system in which the top two finishers face each other, regardless of party.

The left is going hard left. When Dianne Feinstein is not left enough for you—where are the press reports of the extremists taking over? The trend is spreading. A growing number of Trump's base are former Democrats, who voted for Obama.

When Dianne Feinstein is not left enough for you—where are the press reports of the extremists taking over?

So, in response, Democrats are prowling after a new base, a new young base, who's never voted before.

Thankfully, many have predicted that the next generation of voters will be the most conservative generation since pre-WW2. I guess they've watched as their older siblings (or parents) have returned from college with pink hair, atheism, exorbitant debt, and infinite genders, only to decide that personal responsibility, a moral compass, and belief in God are preferable.