Breaking: Assassination Attempt of Hillary Clinton in Israel

By Dominique de Kevelioc de Bailleul

Iran’s Al-Alam News  reports an assassination attempt of U.S. Secretary of State Hillary Clinton during her visit to Israel Sunday.

Al-Alam article translation from Arabic to English:

Israeli sources reported that the procession of Hillary Clinton Secretary of State was shot on yesterday, while passing through on the road to Jerusalem – Tel Aviv,” states Al-Alam News.

According to information published by the site ‘rueter’, the Israeli kind of car ‘Citroen’ white approached a car in the convoy carrying Clinton and what appeared to be fired from a car Citroen DS.

According to the guards the convoy, the car Citroen DS ‘s assistant fled from the place and no one was hurt from the passengers of a footnote to Hillary Clinton.

Israeli police declared alert in the place in which fired him fire (red night).

According to the site, the process of fire were on the road to Jerusalem (Tel Aviv)

The large police forces of the place.

Police did not confirm the Israeli occupation that has already been shooting toward a car Hillary Clinton but confirmed that they are combing through the wide (Tel Aviv) Jerusalem, especially at the crossroads violent.

Interestingly, no mention of the incident was reported by western media outlets.

About Al-Alam News

Al-Alam is an Arabic news channel broadcasting from Iran and is owned by the state-owned media corporation Islamic Republic of Iran Broadcasting (IRIB). The network’s political coverage tends to be the most popular; however, other subjects, such as commentaries, analysis, business and sports also get a share of the audience. Programs are broadcast for over 300 million Arabic-speaking people around the world, with large audiences in the Persian Gulf and Mediterranean regions. The satellite channel can be received in five continents. Al-Alam has news bureaus in Tehran, Beirut and Baghdad. Unlike many other channels, Al-Alam can be viewed in Iraq without the use of a satellite receiver, as it is able to use a terrestrial transmitter close to the Iran-Iraq border. An English language website, known as Alalam News, was launched on August 15, 2006, claiming to disseminate news in an impartial moderate manner. Alalam News Network has launched its Persian Website in April, 2007 in order to cover merely the exclusive Alalam news in Persian language.

“Allocated” Gold Scandal to Shock the World, $5,000 Gold: ‘Crazy’ Jim Willie

By Dominique de Kevelioc de Bailleul

Following trader Dan Norcini’s (of JSMineset) report that major banks now hold net long positions in the gold market for the first time in recent memory, the eery feeling of the next shoe to drop in the global financial fiasco reaches a fevered pitch after another newsworthy article by The Hat Trick Letter’s Jim Willie posts to the public domain.  In his latest read, Willie pens that a protected source told him that yet another scandal will soon surface at the money center banks—this time, the fraud will be exposed in the “allocated” gold business.

“My firm belief is for event #6 to be Gold Allocated Account raid scandal,” Willie states in the second of an unusual back-to-back open letter to investors, titled, Extreme Danger Signposts.

Through a well-guarded source, the American expatriate from Costa Rica estimates that 20 to 40 tons of gold bullion held in allocated accounts riddled throughout the Western banking system have been quietly and illegally replaced with paper certificates—paper promises to secure the real thing, physical bullion.  Customers who believe they hold physical gold will wake up one day and be told that they, too, have been defrauded in another MF Global-style swindle, according to Willie’s source.

“My gold trader source is adamant about the level of raids, and expects a scandal to shake the Western world banking system to the core, resulting in massive prosecution,” Willie adds, who also asserts that, this time bankers will be criminally prosecuted and jailed.

Incidents of illegal foreign currency swaps by the Fed to bailout Europe, the MF Global scandal, PFG fraud, JP Morgan’s blown-up swaps, accusations of fraud at the NY Fed post-Lehman crash, and LIBORgate clearly demonstrate that Hat Trick Letter’s  ‘Crazy’ Jim Willie isn’t really crazy after all.  He has boldly stated for years that looting, lying and fraud will eventually become so blatant and pervasive in the banking sector that the global financial system will collapse from public shock, panic and, eventually, distrust, with a panicked public incited by a monstrous gold swindle coming next on the Willie time-line of events to financial Armageddon.

“WHEN THE ALLOCATED GOLD SCANDAL HITS, THE GOLD PRICE WILL RISE TO MULTIPLES OF THE CURRENT PRICE,” stated Willie [large caps, his]  “IT WILL BREAK RANKS FROM THE PAPER CLUTCHES AND PHONY PRICE DISCOVERY METHODS. THE GOLD PRICE WILL EASE PAST THE $5000 PER OUNCE MARK, AND TAKE SILVER ON A GREAT UPWARD RIDE. YOU SEE: THE BANKERS WILL HAVE TO REPLACE THE GOLD BY OPEN MARKET PURCHASES AS RESTITUTION!!”

And Egon von Greyerz of Swiss-based Matterhorn Asset Management agrees wholeheartedly.  The market veteran told King World News he suspects central bank statistics regarding its gold holdings are as corrupted as the banking cartel’s entire business model, and when brought to light as another scandal to grossly outdo even LIBORgate, will panic the world into physical gold in a manner consistent with Willie’s moonshot prediction for the yellow metal.  But von Greyerz takes it a step further; he expects the gold Ponzi scheme will collapse by the close of 2013, soaring gold prices to shocking heights, rapidly.

“Of course the banks don’t have the physical gold to satisfy their commitments,” von Greyerz told King World News.  “Central banks, and most probably the Fed, don’t have the gold they say they have.  The 8,000 tons the U.S. government is supposed to hold is probably not there.

“The IMF’s 3,000 tons is probably double-counted and not there either.  And banks don’t even have the allocated gold they say they have. …

“The effect of this is the paper markets will not be trusted.  So people will rush into physical gold.  I see gold reaching $3,500 to $5,000 in the next 12 to 18 months.  Within 3 years, I see the gold price reaching at least $10,000.”

Too many trusted analysts have come out recently with bold predictions—predictions which come many times via carefully guarded sources privy to official communiques, tips and ‘tells’.

Monday, James Turk says the metals will explode this summer.   He places a high-confidence level on that call.

Jim Rickards predicts the Fed will make an announcement that includes highly unusual policy moves that could include open-market purchases of equities, spooking traders into thinking that desperation has overwhelmed the Fed.

Last Wednesday, Stephen Leeb couldn’t be more bullish on precious metals, adding, the “real scandal here is the banks don’t have the gold the customers are paying them to have on deposit.”  Leeb expects at some point, gold and silver could be sanctioned as eminent domain.

Rick Rule believes the markets are near an “epic collapse in confidence.”

Last Thursday, Bill Flerckenstein says the Fed is about to “panic and do something big.”

And there is more, much more.  Michael Pento reports a record euro484 billion drain at the ECB—within one day!  And former Office of Management and Budget under President Ronald Reagan, David Stockman, told Bloomberg, Monday, “We’re at the fiscal endgame.”

And people called Jim Willie, crazy?

Washington’s False-Flag WMD Claim Against Syria, U.S. Dollar at Stake

By Dominique de Kevelioc de Bailleul

With longstanding U.S. strategic plans to control oil production in Syria and Iran taking shape with the attempted overthrow of the Bashar al-Assad government in progress, a pretext for U.S. involvement to takeover from American surrogates Saudi Arabia and Qatar funding of Syrian rebels moved a step closer with an article published by the Wall Street Journal, titled, U.S. Concerned as Syria Moves Chemical Stockpile

While more international agreements to ditch the U.S. as a medium of exchange in global trade continue to pile up between the BRIC nations, the U.S. dollar’s last bastion of hope lies in the granddaddy of all trade, oil, and the 40-year petrodollar system.  To that end, Washington must build consensus for its aggression toward the nations that stand in the way of a continued petrodollar system.  In the case of the latest article by the WSJ on the subject of Syria, the business paper of record appears to act as a willing or unsuspecting outlet for CIA counterintelligence.

As the title of the article implies, unnamed “U.S. officials” grow concerned about the recent movement of biochemical weapons stockpiles (WMDs), according the WSJ.  With quotes from other unnamed sources riddled throughout the article, the suggestion of the possibility that a planted storyline by Washington of planned “ethnic cleansing” and assumptions of what Assad may or may not do with these so-called WMDs can easily be made given the unusual nature of basing a story on numerous sources unwilling to go on the record for further journalistic inquires.

The article begins, “Syria has begun moving parts of its vast arsenal of chemical weapons out of storage facilities, U.S. officials said, in a development that has alarmed many in Washington.

“The country’s undeclared stockpiles of sarin nerve agent, mustard gas and cyanide have long worried U.S. officials and their allies in the region, who have watched anxiously amid the conflict in Syria for any change in the status or location of the weapons.”

Since Syria is not a signatory to the Chemical Weapons Convention, the U.S. State Department remains suspicious of Syria’s non-transparency regarding its inventories, though the same suspicion of potential ethnic cleansing of Palestinians could be directed at Israel, a signatory to the CWC but never ratified by its democratically-elected representatives—a fact left out of the WSJ article.

“The regime has a plan for ethnic cleansing, and we must come to terms with this,” an unnamed U.S. official told the WSJ. “There is no diplomatic solution.”

During the buildup to an attack on Iraq, the U.S. official in the forefront of accusations that Iraq possessed WMDs was the president himself, George W. Bush.  But today, unnamed sources make the same accusations against a country loyal to Iran—Syria, the last country in the Middle East left to neutralize before taking on Iran for the prize of its second-largest oil production capacity in the Middle East.

But the Journal does quote a former  U.S. Army intelligence officer now working as an analyst at the Institute for the Study of War, Joseph Holliday, who helps the Journal  build a case of another dictator gone crazy enough to potentially gas his own people—a war crime under the Geneva Protocol of 1925.

“We can’t discount him using this, we just can’t,” said Holliday. “If we believe the Assad regime and their closest allies view this as an existential struggle, we have to assume they could use chemical weapons against their population at some point in the conflict.”

As a former Army intelligence officer, Holliday, it’s understandable that he may still be under the powerful influences of his high-level comrades in arms at the Pentagon.   Crafting a real or imaginary threat storyline can be used as a meaningful pretext for war with any nation uncooperative with the U.S., if covert operations to secure energy supplies in the Middle East fail.

Newsweek explains:

“Deep in the Pentagon, admirals and generals are updating plans for possible U.S. military action in Syria and Iran. The Defense Department unit responsible for military planning for the two troublesome countries is ‘busier than ever’, an administration official says,” according to a Newsweek  article of Sept. 2004.  “Some Bush advisers characterize the work as merely an effort to revise routine plans the Pentagon maintains for all contingencies in light of the Iraq war.  More skittish bureaucrats say the updates are accompanied by a revived campaign by administration conservatives and neocons for more hard-line U.S. policies toward the countries . . .

”Even hard-liners acknowledge that given the U.S. military commitment in Iraq, a U.S. attack on either country would be an unlikely last resort; covert action of some kind is the favored route for Washington hard-liners who want regime change in Damascus and Tehran.”

The WSJ article that cites unnamed official sources feels like a CIA trial balloon to gauge public sentiment for U.S. direct involvement in Syria, or it’s a sloppy piece of journalism deployed as a tactic to apply international pressure upon Russia and China to back off support of Syria.  Last week, U.S. Secretary of State Hillary Clinton displayed a Cold War sense of urgency to the Syria question at the ‘Friends of Syria’ conference.

“I don’t think Russia and China believe they are paying any price at all – nothing at all – for standing up on behalf of the Assad regime,” Clinton told an audience of delegations from more than 100 nations.  “The only way that will change is if every nation represented here directly and urgently makes it clear that Russia and China will pay a price . . .”

Previous propaganda disseminated through CIA-complicit media outlets, such as reports of the killing of incubator babies at Iraqi hospitals during the 1991 Gulf War, and the gassing of Kurds by Saddam Hussein during the Iran/Iraq War, have either since been discredited by investigative journalists or have gone unconfirmed (as to who was responsible) in the case of the gassing incident of 5,000 Kurds in Halabja in 1988 during the Iran/Iraq War.

The WSJ did, however, find a source with a name and position that denied the claims of the multiple unnamed ‘official’ U.S. sources of the story.   The named source added, if the U.S. or its surrogates would stop smuggling weapons to the Syrian rebels, the peace process could begin—an alleged goal of the U.S. State Department.

“This is absolutely ridiculous and untrue,” Syria’s foreign ministry spokesman, Jihad Makdissi, told the WSJ.  “If the U.S. is so well-informed, why can’t they help [U.N. envoy] Kofi Annan in stopping the flow of illegal weapons to Syria in order to end the violence and move towards the political solution?”

In conclusion, the WSJ article provides little substance for a proper article typically expected of them.  The signs of another nefarious intent on the part of either the U.S. State Department, the WSJ, or both, to dupe the public into another war cannot be ruled out.  But, considering the dire nature of the U.S. dollar’s rapid decline as a reliable reserve currency, other articles and television programming demonizing Syria can be expected.

CNBC Interview: Warren Buffett Shows Fear

By Dominique de Kevelioc de Bailleul

In one of the most revealing interviews with the man who has always been optimistic for a continued prosperous America, Berkshire Hathaway Chairman Warren Buffett, for the first time, appears noticeably fearful about the future of the U.S. economy.

Buffett cult members must have noticed his more-than-usual speech stammer as he searched for the right words in response to questions posed by CNBC’s Becky Quick—who, incidentally, is one of CNBC’s softest of softball interviewers.  In contrast, a Buffett interview with Rick Santelli would most likely drop the Dow 1,000 points within the first few minutes of questioning.

There’s little doubt, if you read between the lines of Buffett’s responses to questions from stick-figure journalist Becky Quick, it’s time to head for the hills and buy gold, gun and take up God.  The 81-year-old investor had nothing good to say about the U.S. economy—a first for the Orifice of Omaha.

When Quick asked whether Buffett’s optimistic assessment of the U.S. economy of six weeks ago is still on track, Buffett began with a mea culpa nervous laugh, as if to say, ‘Oops, I misread the tea leaves.  Sorry fans; this thing is going down.’

Stripping out the filler and avuncular chit-chat ‘Uncle Warren’ persona, the cold-hearted Nebraskan is saying that the outlook for the U.S. economy is not good—just as Jim Rogers and Marc Faber have warned investors many months ago.  In fact, if Buffett wasn’t such a cheerleader for the establishment—the establishment that has feathered his nest for so many years—he’d stop treating investors with disdain though his condescending obfuscations to direct questions and hokey homilies of America the Beautiful—and come clean with investors.

Not Warren.  Joining the Washington mafia is for life.  No exceptions.

“Well, I’ve got a little different story this time,” Buffett chuckled, and went on to say that he’s been looking for a turnaround in the economy for more than two years, but nothing stands out as a potential catalyst of future growth.  The GDP stall, back to flat-line, hasn’t been led by any particular sector; “ . . . it’s pretty general,” he said.

Quick asked, “Well with everything else — not a reversal, a slowdown in the growth, what happened? What happened six weeks ago to spook people, to spook businesses?”

Buffett responded, disingenuously, of course,  “I don’t know the answer to exactly why it’s happening. And I don’t know what it will be three months from now or six months from now because three months ago I didn’t know what it would be today.”

The Sergeant Schultz of billionaires doesn’t know what Jim Rogers knows, or Marc Faber knows, or Peter Schiff knows—and Max Keiser, Eric Sprott, John Williams, Ben Davies, James Turk and about a dozen regulars of Eric King’s King World News.  Buffett knows nothing, the Hogan’s Goat of Washington.

As the mountain of sovereign, corporate and personal debt chokes the economy—while the Fed won’t allow the markets to clear with its ZIRP policy—while the dollar debases at rates never seen since the Civil War, Buffett knows nothing of why the U.S. economy isn’t miraculously recovering from the post-Minsky Moment.

Lies through omission are still lies, Uncle Warren.

In short, the 81-year-old ‘legend’ has turned into a ‘has-been’ overnight.  Or better yet, Buffett the oligarch is about to tank along with the U.S. economy, American exceptionalism, his Cadillac, his ice cream cones, See’s peanut brittle, and his phony blue-collar flag-waving imitation.

Instead of fighting the good fight throughout his storied career to prevent the U.S. from sinking into a fascist plutocracy, like the humble Texan Ron Paul has for three decades, maybe Buffett would gain some respect from other analysts who’ve been too busy being told they’re doom-and-gloomers, nut cases and extremists by the ‘prestitutes’ of main stream media.  While Ron Paul was telling it straight, refusing Medicare payments from his elderly patients during his time as a practicing physician, Buffett smiled, chuckled and played paddy fingers with Charlie Munger and the boys in Washington who bailed him out with TARP.

Recall Uncle Charlie Munger’s comment about goldbugs.  May 7, he said on CNBC, with who else, but the Tokyo Rose of the oligarchy, Becky Quick, “Gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.”

And another oligarch, George Soros, should know exactly what Munger is talking about.  Through his own admission, the teenage Soros turned in Jews to the Gestapo during the reign of the Third Reich in the 1930s.  Soros is civilized, but people escaping the tyranny of Nazi Germany or 21st century America are uncivilized cattle.  But, then again, Soros owns gold, hedging again from tyranny.

What a cast of characters.

Back to Buffett, who said this about JP Morgan gold cartel kingpin Jamie Dimon, “I think Jamie Dimon is one of the best bankers in the world.”

Sure, and Bernie Madoff was one of the best fund managers, too, until it was discovered that Bernie’s phony profits were just that, phony, a smaller Ponzi scheme than the one managed by a man at the helm of America’s largest bank.

“There’s No Way You Can Bet Against America & Win,” Buffett had said in his previous interview with Quick of six weeks ago, which begs the question: What America is he talking about?  Central America?  Those are the strangest words from a disgrace of a man who was ashamedly Made in America.

Source: CNBC

Jim Rogers: Duck and Cover, Your Cash is NOT Safe

By Dominique de Kevelioc de Bailleul

As another sign that American institutions have degenerated toward banana-republic class, what was once considered safe and risk-free, cash balances held at brokerage firms as well as many other institutions, are no longer safe, according to legendary investor Jim Rogers of Rogers Holdings.

With the latest scandal involving $215 million of missing customer funds at Chicago-based privately-held futures trading firm Peregrine Financial Group Inc. (PFGBest) a distinct trend has emerged that will most likely reveal in the months and years to come that the entire financial system is riddled with fraud, the level of which, could be so pervasive and systemic as to provide for the proverbial ‘black swan’ bank run of the collapse of the global financial system—despite central banker efforts to prop asset prices up with sanctioned counterfeit money.

“No such thing as safe when you talk about it,” Rogers told OilPrice.com in response to a question regarding investing during times of crisis.  “Even if you put your money in cash, if you put your money in the wrong cash, you lose a lot of money. As the people in Iceland have found out, as the people in Europe on the Euro have found out.  So, no such thing as safe.”

The 69-year-old Rogers has gone on record on more than a dozen occasions that he sees terrible times for the U.S. economy and markets after the November elections, with the years 2013 and 2014 drastically changing the mood among Americans from one of hope to one of panic and despair.

“The problem is: I expect to see serious economic problems in 2013 and 2014 in the U.S,” Rogers said.  “If and when that happens, we’re going to see a final panic in the markets and the economy and everything will have a crescendo and a selling climax.”

And a continuation of the economic downturn, which began in 2008, is expected to reveal, not only how bad and to what extent the economy and investment marketplace have deteriorated, but how much of the shocking state of decline of enterprise America has been hidden from the public through the complicity of the traditional media outlets.

Though Rogers wears a reputation as a mild-mannered straight-talking billionaire, appealing to a more-general audience of investors, another Jim, investment newsletter writer Jim Willie, in contrast, ‘gives it’ to his readers hard, fast and dirty.

“The entire financial system of the Western world is imploding,” Willie, the publisher of the famed Hat Trick Letter, said in an interview with Bull Market Think, Dec. 5, 2011.  “There is exponentially rising risks for individuals and their money…the risk right now–is people losing their entire life savings. I cannot seem to get people to understand this.”

Willie, who, before the crash of 2008, was referred to as “Crazy Jim” by his peers for his seemingly outrageous market and social-political predictions, warned investors in December 2011, a month following the MF Global fraud, “Several million private accounts may vanish–Brokerage accounts, Pension funds, Mutual funds; they’re all at risk.  We are getting into the middle stages of implosion, where I believe the public will not wake up until at least one million private accounts are stolen, and completely vanish.”

It now appears that another Jim Willie “crazy” prediction has splashed cold water of truth on the faces of his critics, with the straight-laced Rogers now backing him up.

Irrespective of style and tone, both the pre-baby boomer Jim Rogers and baby boomer Jim Willie have communicated their analysis of today’s America and financial system to a broad audience desperately seeking wisdom and advice during these most extraordinary times.  And, again, for the record, both men advocate holding gold during the bizarre financial, political and geopolitical upheaval we witness on a daily basis, because, as former partner of Jim Rogers at the famed Quantum Fund, George Soros, has said, “Act II” of the global financial crisis is yet to come.

Nothing but gold (silver, too) in your hands comes with a counter party or access to tax from a criminal government desperate enough to confiscate your wealth to keep their power.

Gold: Brace for Bizarre QE3 Hail Mary and Hyperinflation

By Dominique de Kevelioc de Bailleul

If a 1.53 percent yield on 10-year U.S. Treasuries isn’t enough to spook investors of a global economy on the verge of implosion, Michael Pento of Pento Portfolio Strategies expects the Fed to aggressively respond by ceasing to pay interest on excess reserves held at the U.S. central bank—and removing all reserve requirements on purchases of sovereign debt.  Fed Chairman Bernanke has his sites on negative rates.  The gold bugs will surely like that.

The one-two punch of a bazooka QE3 of that size, the potential onslaught of capital fleeing into hard assets as a result of a no-reserve global banking system, could be more than the Fed bargained for, and clearly indicates how desperate central bankers have become to prevent the largest Ponzi scheme of history from collapsing, according to Pento.

“So let me put it together for your listeners,” Pento told King World News (KWN), Sunday.  “We have $1.42 trillion of excess reserves.  We are now going to be told that there will be no capital reserve requirements on owning sovereign debt. You will have commercial banks flooding the market with the purchase of sovereign debt.  Not just U.S. debt, Portuguese debt, Spanish debt, Greek debt, all of that debt will have zero capital requirements.”

In other words, the Fed intends to lower the rate of the riskiest of all sovereign debt while punishing cash hoarders of the least risky sovereign debt, because, surely, rates on the shorter end of the Treasury curve will turn negative and it’s hoped will move the 10-year Treasury that much closer to zero, as well.  Ditto for sovereign and commercial debt across the entire spectrum of the global credit markets.

That’s the plan, according to Pento, but the market reaction to such a desperate, high-risk policy move is expected to soar commodities and the precious metals, as the last step beyond a no-reserve requirement banking system is ‘helicopter money’ directly into the hands of consumers.

“Let me be clear on this, I’m not saying it could increase M2 money supply to $15 trillion, this could increase it by $15 trillion,” Pento continued.  “So we’re talking perhaps about $24 trillion.   It has the potential to increase to rapidly increase the global money supply, and it would be a tremendous boost to commodities, oil and precious metals.”

Pento’s expectations for such a move is consistent with earlier policy suggestions made by the Treasury Borrowing Advisory Committee in January 2012 (reported by zerohedge, Feb. 1, 2012), which stated in its report to the Secretary of the U.S. Treasury, “There was a lengthy discussion regarding the bid-to-cover ratios at recent Treasury bill auctions. It was broadly agreed that flooring interest rates at zero, or capping issuance proceeds at par, was prohibiting proper market function.

“The Committee unanimously recommended that the Treasury Department allow for negative yield auction results as soon as logistically practical.”

And it would make no sense for the Fed to impede the plan by requiring reserves on top of the U.S. Treasury actually charging bill and note holders of U.S. debt for lending the U.S. government money.  In this perverse environment of targeting negative interest rates, it’s become clear that the Fed has given up on the U.S. economy, and more broadly, hopes of the global economy pulling the U.S. out of its nosedive; Bernanke and Company are merely playing out a losing hand—a hand that ShadowStats economist John Williams has said will lead to hyperinflation by the close of 2014.  Lowering borrowing costs to offset lower tax receipts to service $15.8 trillion of U.S. debt in addition to the fiscal 2013 budget is the only option left open to the Fed.

“Outside timing on the hyperinflation remains 2014, but events of the last year have accelerated the movement towards this ultimate dollar catastrophe,” Williams said in an interview with KWN, Jan. 26, 2012.  “Following Mr. Bernanke‘s extraordinary efforts to debase the U.S. currency in late-2010, the dollar had lost its traditional safe-haven status by early-2011.  Whatever global confidence had remained behind the U.S dollar was lost in July and August [2011].”

Pento agrees, understating the Fed’s goal of negative interest rates—on top of zero reserve requirements—as “not a good idea.”

Pento said in his July 8 interview with KWN, “What he [Bernanke] needs to do is let the free market work, and I can tell you that unleashing $1.5 trillion into the American economy, and having that money roll-over and multiply (to $15 trillion), through the money-multiplier-effect, is not a very good idea.”

Indeed, it is not a good idea, but there is no other idea left for the Fed to execute.

Spot gold: $1,569 per Troy ounce.

Roubini: “Global Perfect Storm” Leads to “Hanging Bankers”

By Dominique de Kevelioc de Bailleul

What Zerohedge stated is a “must watch 9 minutes of reality,” Dr. Doom Nouriel Roubini, Monday, broke the bad news about the global economy to Bloomberg News.   That day, the day that everyone has been hoping to avoid is now unavoidable.  No later than 2013, the world will know how hard the collapsing Ponzi scheme will crash, which, according to him, will be much worse than 2008, if that can be imagined following nearly seven decades of successful central banking policy maneuvers.

But first, Roubini discussed the historically-rooted social/political implications of the next crisis.  Since the beginning of recorded historical events, money changes  have been a root of social decay, crime, political oppression, revolutions and wars.  In the end, reforms and a new start are made, but not until revenge is exacted on the scourge of society—the bankers.

“Bankers are greedy; they’ve been greedy for the last hundreds of years,” said the 53-year-old self-described “global nomad.”  “It’s not a question if they are more immoral today then they were a thousand years ago, you have to make sure they behave in ways in which you minimize those risks.

“One way of doing it is to separate activities, so you minimize the conflicts of interest,” he added.  “Otherwise, this thing is going to happen over and over again.”

When asked for his opinion about the best way to manage banker greed, criminal activity and immoral behavior, Roubini didn’t mince words, a refreshing departure from comments made by analysts dependent upon the Wall Street/Washington circle of friends for a paycheck.  Criminal behavior should be punished through appropriate and sanctioned criminal proceedings, according to him.  That assessment comes following Barclay’s ‘crime of the century’, in which, it appears no one will be criminally prosecuted for jury rigging an estimated $100 trillion worth of debt securities marked to LIBOR+.

“Well, they [jail sentences] should occur, because no one has gone in jail since the global financial crisis for any of these things,” he said in a matter-of-fact manner.  “The banks do things that are illegal, at best, a slap you know, a fine.  Some people will end up in jail, maybe that will teach a lesson to somebody.  Yeah, or maybe someone hanging on the streets.”

As far as the media and ‘official’ portrayal of the crisis, it’s all propaganda, cover up and lies, according to many financial analysts led by ‘On the Edge’ host Max Keiser, Euro Pacific Capital’s Peter Schiff, economist Marc Faber and commodities trader Jim Rogers.  Roubini strongly agrees with these men.

“Things have become worse, not become better,” stated Roubini, in direct contradiction to senior ‘officials’ at the European parliament and a complicit media from both sides of the Atlantic.  “Nothing has changed.”

After the European summit and the ECB’s cutting of policy rates, the yield on the 10-year Spanish note is back above seven percent.  “Nothing has changed,” Roubini stated, again.  The summit was a failure and the ECB’s policy move to cut interest rates had no effect on the market, according to him.  After the knee-jerk reaction of lower yields for Spanish and Italian notes of a week ago, the yields are back above the seven and six percent, respectively—a warning sign of another Greek-like sovereign debt collapse could be imminent if not attended to quickly.

Unless a “bazooka” is deployed to the problem in the eurozone, Roubin added,  “you’ll have a worse crisis, not six months from now—you’ll have another bigger crisis in the next two weeks.”

Roubini said the only way to stop the crisis is for the ECB to embark on “debt monetization,” a drastic and political third-rail issue among the core member nations of the eurozone: Germany, Holland, Austria and Finland.  Moreover, each of these nations also must overcome legal hurdles before a political decision can be made to allow the ECB to mimic the U.S. Federal Reserve’s monetization of U.S. Treasuries—an action the Fed incredulously denies.

On the question of where to find shelter before the European crisis moves from a “slow-motion train wreck” to sudden collapse, Roubini avoided the question, an interesting omission to witness for the gold bugs and other hard money advocates such as Goldmoney’s James Turk, Sprott Asset Management’s Eric Sprott, and the folks at GATA.

Roubini summed up the “perfect storm” as he sees it, delineating the major issues that will most likely overwhelm central bankers and politicians in coming months.  Incidentally, Jim Rogers has gone on the record that he, too, expects 2013 to be the year the global financial system cracks wide open.

Roubini’s concerns, of which he sees trouble brewing:

1) Slow-motion or fast motion train wreck in Europe

2) U.S. economic stall to the next leg down in the Depression

3) China landing harder rather than softer

4) Emerging markets (BRICS) sharply slowing in growth

5) Geopolitical time bomb of war between the U.S., Israel and Iran

In 2013, chances are the U.S. will decide to attack Iran, “doubling” oil prices overnight, said Roubini.  “So, it’s a perfect storm,” he said.

“Next year could be a global perfect storm,” he added.  “It’s much worse” than 2008.  Policymakers have run out of “policy rabbits to pull out of the policy hat.”  There is no “safety net” left to the system.

One day everyone will wake up and figure out that, it’s a “problem of solvency, not liquidity,” but then the damage will have already become apparent via a deeper Depression in Europe and the United States.

Roubini also predicts a complete breakup of the eurozone within five years.

Syria Could Crash the U.S. Dollar

By Dominique de Kevelioc de Bailleul

While incessant and escalating incidences of blatant assaults upon the Bill of Rights of the American people riddle the pages of the full spectrum of media, it is now not a matter of, will a state of emergence message by the president be made, it is a matter of when the event happens and what triggered the historical act.  No doubt, a collapsed U.S. dollar or a nuclear blast on American soil rank high on the list of probably catalysts for an emergency call to martial law by a sitting president.

One or both of these doomsday catalysts for a U.S. lock down took a giant leap forward in France, Friday. Cold War-like comments made at the “Friends of Syria” conference in Paris by U.S. Secretary of State Hillary Clinton toward Russia and China strongly suggest that a showdown between the former Cold War rivals, now to include China, is on.  The prize: oil—and by implications the future of the U.S. petrodollar standard and the American way of life.

“I don’t think Russia and China believe they are paying any price at all – nothing at all – for standing up on behalf of the Assad regime,” Clinton told an audience comprised of delegations from more than 60 nations.  “The only way that will change is if every nation represented here directly and urgently makes it clear that Russia and China will pay a price . . .”

Auspiciously, delegations from Moscow and Beijing did not attend the meeting.

The U.S. Secretary of State went on to accuse Russia, China and Iran of supporting Syria’s Assad regime economically and militarily, and called upon other nations to comply with UN sanctions levied upon Syria—sanctions which would also include refusing oil shipments from Syria’s vital economic support and trusted ally, Iran.  But for continued sanctions against Syria to be effective, “much will remain dependent on persuading the two reluctant powers [Russia and China] to pressure Assad into action [of peaceful regime change in Syria],” according to Canada’s CBCNews.

Though, Russia and China have already agreed to a peaceful resolution to the Syrian civil war, signing off on the Security Council plan drafted by former-UN Secretary-General Kofi Annan, it’s more likely that Moscow and Beijing are playing politics of cooperation to buy more time for the Assad regime.  Russia and China do not want regime change in yet another Middle Eastern country for a host of economic and political reasons, of which, the primary one is to stop the U.S. from controlling the region’s oil supplies to Russia’s ally and co-founding member of the Shanghai Cooperation Organization (SCO), China.

Authors John Barry and Dan Ephron of a Sept. 2004 Newsweek article, titled, War-Gaming the Mullahs: The U.S. weighs the price of a pre-emptive strike explain that Syria and Iran have been targets of interest of the U.S. for quite some time, as Washington under the George W. Bush Administration had known that a day would come when the U.S. and China would bang heads for precious crude supplies in the Middle East.  Whether it’s the Obama Administration or another neocon U.S. president in control of the executive branch, the petrodollar standard must be defended in the Middle East.  The Iranian/Syrian alliance has stood in the way of total U.S. dominance in the region, but now the matter has become urgent following Iran’s announcement in Feb. 2012, that it has broken ranks in the petrodollar scheme.  It now will not accept the dollar as payment for Persian oil.

“Deep in the Pentagon, admirals and generals are updating plans for possible U.S. military action in Syria and Iran. The Defense Department unit responsible for military planning for the two troublesome countries is ‘busier than ever’, an administration official says,” according to the Newsweek authors.  “Some Bush advisers characterize the work as merely an effort to revise routine plans the Pentagon maintains for all contingencies in light of the Iraq war. More skittish bureaucrats say the updates are accompanied by a revived campaign by administration conservatives and neocons for more hard-line U.S. policies toward the countries . . .

”Even hard-liners acknowledge that given the U.S. military commitment in Iraq, a U.S. attack on either country would be an unlikely last resort; covert action of some kind is the favored route for Washington hard-liners who want regime change in Damascus and Tehran.” [emphasis added]

But according to Barry and Ephron, CIA war-games simulating military action against Iran and, by proxy, Syria, would end up very badly for the U.S.  In fact, an unidentified Pentagon source told Newsweek, “The war games were unsuccessful at preventing the conflict from escalating,” whereby the magazine concluded: “This daredevil scheme horrifies U.S. military leaders, and there’s no evidence that it has won any backers at the cabinet level.”

As U.S. policymakers watch the eurozone crumble, brace for a renewed global economic depression, and wonder where the money will come from to finance monstrous sovereign debts and deficits without a mult-trillion-dollar central bank global re-inflation scheme, desperation to make a decisive and final strategic move in the Middle East against Syria and Iran must be overwhelming—and Russia, China, Iran and Syria know it and have planned for it.

Either the U.S. dollar temporarily withstands an all-out war against the most formidable foes since the Germany-Japan-Italy axis of WWII, or it doesn’t.  But in the end, odds heavily favor an abandonment of the dollar as the world’s premier reserve currency; it’s just become too much trouble for too many nations, now.  The conditioning of the U.S. population to expect a heavy-handed government continues unchecked and unchallenged by the Congress, because internally Washington knows the dollar’s days are numbered—and it could be as close as the day of next scheduled military conflict in the Middle East.

“It’s Final” U.S. Will Strike Iran, Says Saudi Informant

By Dominique de Kevelioc de Bailleul

The triggering event to WWIII could be as early as October, according to Debka-Net-Weekly’s intelligence moles.  Iran cannot be allowed to sell Iranian oil for any other currency other than the U.S. dollar—a fatal mistake Iraq’s Saddam Hussein made in his quest to lead the charge to undermine U.S. dollar hegemony in 2000.

“It is already decided,” one Saudi prince told an unnamed European official, according to Debka-Net-Weekly.  When asked by the ‘European’ if America will back out of the hatched plan to strike Iran, the prince said, “Anything can happen, of course. But this time we’re sure the American decision to attack is final and we are already making appropriate preparations.”

However, according to the source, the prince doesn’t know if a strike on Iran will come before or after the elections in November.  But, “the question now isn’t if the Americans will attack Iran, but when,” the prince said.

And the Saudis should know best.  Fears of an Iranian attack on Saudi Arabia run deep in the kingdom for its role in allowing a formidable US presence in the Persian Gulf for more than four decades, a sin for which Saudi Arabia will never be forgiven by the Muslim alliance in the region, and has necessitated a close U.S.-Saudi alliance to counter threats from Iraq (no longer an issue), Saudi Shiites and Iran.

Iran’s hatred for the U.S. can be traced to 1953, the year of a successful coup by MI6 and the CIA to overthrow the Mohammad Mosaddegh government.  But after the fall of the last Shah of Iran, Mohammad Reza Shah Pahlavi, in 1979, decades of Iranian defiance of American demands to open Persian oil fields to the West, in a similar manner to the Saudi kingdom’s quid pro quo with Washington regarding access to Saudi Arabia’s abundant Ghawar oil fields, have been repeatedly spurned by Iran’s secular and religious leadership.  But as long as the Iranians continued to transact in U.S. dollars for Persian oil, a strong case for averting a high-risk war with Iran at this time could be made.

But, Feb. 27, 2012, Iran crossed the proverbial line in the sand following an American-led effort to cut Iran from the international bank clearing system, called SWIFT.  The Persian central bank announced that, not only will any country doing business with Iran be allowed to pay in any currency other than the U.S. dollar, but those countries wishing to transact in gold (anti-dollar) are encouraged to do so, with the latter option especially troublesome and defiant.

“Significant difficulties in making dollar payments to Iranian banks have forced Iran’s trading partners to look for alternative ways to settle transactions, including direct barter deals,” according to Reuters.

“In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency,” Reuters quoted central bank governor Mahmoud Bahmani as saying. “If a country should so choose, it can pay in gold and we would accept that without any reservation.”

That latest transgression, just as all the other transgressions of Iran since 1979, this time, the de-linking of the U.S. dollar to Iranian oil, must be punished, according to MIT professor and U.S. foreign policy expert Noam Chomsky.

“Iran broke ranks with the United States in 1979, and this is a crime for which it has to be punished,” said Chomski in a discussion with Gilbert Archcar for the book, Perilous Power.  “And it goes way beyond rational state interests. As with Cuba, it’s the Mafia mentality: You can’t allow disobedience to exist; it’s too dangerous because other people might get the idea that they can be disobedient as well.  So Iran’s going to have to be punished for that act of disobedience.”

Punishment of Iran through sanctions for an uncooperative regime regarding U.S. interests in the Middle East is one thing, dropping the U.S. dollar is quite another—an act so grave that, if the U.S. allows Iran to go unchallenged or unpunished, other countries seeking to ditch the poorly managed dollar will do so, as well.  That’s the line in the sand that must lead to military action, according to William Clark, author of The Real Reasons Why Iran is the Next Target: The Emerging Euro-denominated International Oil Marker

Written some time prior to Feb. 2012, Clark, at that time, focused his discussion on the dollar-euro rivalry for international trade as it relates to Iran’s Oil Bourse.  Iran’s goal of only accepting euros for its oil is enough to find Iran in hot water,  but Iran’s one-step-further threat to U.S. dollar hegemony by including gold in its February 2012 announcement, the Achilles’ Heel of the nonredeemable U.S. dollar, only serves to underscore Clark’s thesis that much more.

“In 2005-2006, The Tehran government has a developed a plan to begin competing with New York’s NYMEX and London’s IPE with respect to international oil trades – using a euro-denominated international oil-trading mechanism,” Clark wrote.  “This means that without some form of U.S. intervention, the euro is going to establish a firm foothold in the international oil trade.

“Given U.S. debt levels and the stated neoconservative project for U.S. global domination, Tehran’s objective constitutes an obvious encroachment on U.S. dollar supremacy in the international oil market.”

And Tehran’s “obvious encroachment” comes at a very bad time—for the U.S., that is—but comes at an opportunistic time for Iran, as it will be able to count on a strong Russian and Chinese alliance against U.S. aggression for control of crude oil in the Middle East—oil badly needed by the Chinese and strategically aligned Russia.

At this stage, odds now seem to favor WWIII, a risk Washington must take to achieve an all-or-nothing outcome to the alternative: the inevitable end to the U.S. dollar as the world’s premiere reserve currency and the dire implications of second-world status for the United States, hyperinflation and civil unrest, or worse.

Clark stated, “Clearly, there are numerous risks regarding neoconservative strategy towards Iran. First, unlike Iraq, Iran has a robust military capability. Secondly, a repeat of any ‘Shock and Awe’ tactics is not advisable given that Iran has installed sophisticated anti-ship missiles on the Island of Abu Musa, and therefore controls the critical Strait of Hormuz.

“In the case of a U.S. attack, a shut down of the Strait of Hormuz – where all of the Persian Gulf bound oil tankers must pass – could easily trigger a market panic with oil prices skyrocketing to $100 per barrel or more. World oil production is now flat out, and a major interruption would escalate oil prices to a level that would set off a global Depression. Why are the neoconservatives willing to takes such risks? Simply stated – their goal is U.S. global domination.

Oil already trades at $100, partly as risk premium to a closing of the Persian Gulf.  When an attack on Iran is underway, all bets are off for any graceful transition to new global reserve currency scheme.

CFTC’s Bart Chilton, A Slick PR Man

By Dominique de Kevelioc de Bailleul

CFTC Commissioner Bart Chilton smiles.  He frowns and head-nods to mimic his audience’s predictable emotions of the criminal news story of the day.  He understands you and the anger you must feel.  He even sports anti-establishment long hair to blend in with his audience.  He’s a likable guy with a pleasant face, blond hair and blue eyes, a corn-fed country-boy look about him, who communicates more with facial expressions and clever tone control to serve as an excellent public relations man.

For example, Chilton spoke with Bloomberg’s Erik Schatzer and Trish Regan Tuesday about the Barclay’s Libor-rigging scandal.  Notice carefully how Chilton deflects questions, but launches non-verbal language to camouflage his unresponsive answers to the poignant question on the minds of the public regarding the criminal probe of the Barclay’s incident—why aren’t people prosecuted and going to jail for bank fraud?

Schatzer: Bart (not ‘Commissioner), I presume, the CFTC wanted Bob Diamond and Jerry del Missier out at Barclay’s.  You could have made it a condition of your settlement.  Is this the right outcome?

How about asking the question: why aren’t bankers being prosecuted and going to jail if they commit fraud?  Why are deals being made in the first place?

Chilton: You’re correct; we could have made these things part of our settlement.  We could have tried to work on that.  It’s not part of our settlement.  We don’t talk about personalities, and to some extent I don’t want to get into personalities now, but I will say, ‘Look these guys broke the law’ <said with gusto>  ‘They broke the law’, and as you were just talking about it impacted interest rates all over the planet <again, said with gusto>.  So, it’s a big damn deal <increasing his angry tone>, and I think if you ask most people out there watching and people out in the countryside I talk to, whether they think this is a just outcome, they’d say, ‘sure‘.  They wonder why people aren’t in jail.  When people do the crime, they should do the time, not just pay the fine.  But that’s not in our settlement for the banks to determine, but I think there’s a lot of people out there who aren’t displeased.

Chilton said nothing the public doesn’t already know, but he did mimic how people feel about the incident with Barclay’s by showing a little anger while he stated the obvious points of the case.  In the sales profession, a technique called the ‘feel, felt, found’ is used to gain the prospect’s trust, with the well-know technique beginning with mimicking your prospect’s concerns by disarming the prospect by validating his feelings and objections.  Chilton demonstrated a knack for the ‘feel, felt, found’ method of culling the viewer to his side by cushioning the bad news with showing empathy for the public’s outrage that no banker is going to be criminally prosecuted for manipulating interest rate financial vehicles.  But the bottom line from Chilton is: people (in the countryside) should accept the settlement, the cop out, and if you do feel the Justice Department should prosecute, well, you’re in the minority.

After searching on the web for a public poll about what to do with bankers who commit fraud, not one formal poll conducted by a major newspaper could be found in Google’s search engine’s top results pages.

But, The Guardian conducted a poll in August 2011 regarding the victims of banker fraud who protested in the UK last summer.

The Guardian/ICM poll asked: “Do you think that people convicted of theft or other offences during the recent riots in London and elsewhere should or should not receive a tougher prison sentence than they might ordinarily expect, in order to set an example of them?”

“Of the respondents, 70% said they believed offenders should receive a tougher sentence, while 25% believed they should not.  Five per cent said they did not know,” The Guardian stated.

And Chilton wants the public to believe that the “people in the countryside” think a mere monetary fine is “just”?  Shouldn’t the Justice Department criminally prosecute to “set an example of them,” as The Guardian posed its poll question regarding the victims—the people of the countryside?  And reread Schatzer’s question again.  Does that sound like a question that would be asked by legendary investigative reporter, Jack Anderson?  The media, regulators, bankers and politicians are all in this mess together.  No one will break ranks until the public is pushed into serious action that threatens this flagrant cartel of fascists.

Chilton: They’ve violated the law.  Our Department of Justice are the ones who decide whether or not they’re going to prosecute and put somebody in jail.  They reached a settlement as you know for $160 million with Barclay’s, so they agreed not to prosecute anybody on this incentive to crime, send them to jail.  I’m not going to second-guess the Department of Justice, but what I’m saying is that there are a lot of people out there in the countryside who are watching this, they’re wondering about, in general, about this culture that’s been going on in the banks for years, since 2008, and I think there really does needs to be a culture shift, and so far I really think we’ve got a culture shaft a lot of times, and as we’ve seen sometimes it goes all the way to the top.

A culture shift?  It’s unlikely that “people in the countryside” believed that a culture of committing fraud was accepted as a right endemic to bankers.

Well, I think this [settlement] sends a good signal to people in the countryside that regulators on both sides of the Atlantic are on the job, that we are looking after it.  Now, it doesn’t mean the end, but again, I cannot say whether we have an investigation when there is a continuing probe, but it is a natural question and I can assure that its a question that we ask ourselves.  I just can’t comment unfortunately where it is. . .

No.  The signal to bankers is—no banker goes to jail, and the fine imposed will not seriously harm the institution which employed them.  But, “the people in the countryside” may think it’s a big deal to fine a bank the size of Barclay’s $160 million, unless, of course, the countryside bumpkins cares to look at Barclay’s balance sheet of $2.3 trillion in assets—or 0.0000695 of Barclay’s total assets.

Though the magnificent work of Gold Anti-Trust Action Committee board member Adrian Douglas can never be repaid to fit the job he does for all gold and silver bugs, the idea of calling Chilton “the modern-day equivalent of Eliot Ness” may be a mistake, but a most forgivable one in the case of Douglas and GATA.  GATA is dealing with the most clever, high-tech slimes the world has ever know, working on low budgets and high ambitions to fight the Fed, JP Morgan and banker fraud.  No one can ever challenge GATA’s good intentions successfully, though former Goldman Sachs ‘associate’ Jeff Christian had tried with no success other than to diminish his own reputation.

If Chilton is truly a ‘good guy’, how can he stay at the CFTC knowing that his work amounts to essentially nothing?  Could anyone imagine GATA’s Bill Murphy, Chris Powell or Adrian Douglas lasting 24 hours at the CFTC if catching guys who allegedly commit monstrous, outrageous and unspeakable fraud means essentially nothing?

Gold and silver bugs may want to rethink Bart Chilton’s real role at the CFTC.  He looks good, sounds good, but so do slick PR men.