Four Iranian Bankers Sentenced to Hang; Iran Leads America

By Dominique de Kevelioc de Bailleul

As an example of justice for the people, Iran sentenced four banksters Monday to hang for their role in the Persian state’s largest-ever fraud scandal.

In addition to the four capital cases, thirty-five other defendants face punishments ranging from life imprisonment to “flogging and fines,” according to BBC News.

The scandal stems from charges issued in Sept. 2011 that some of the defendants forged documents on the behalf of an investment company to secure loans for the purchase of state-owned properties during a four-year period under the government’s privatization scheme.  In all, three trillion Iranian rials, or equivalent to approximately $2.6 billion were fraudulently obtained by the banker cabal.

The high-profile case fueled infighting between Iranian President Mahmoud Ahmadinejad and the nation’s ruling clerics.

Moreover, the fallout of the scandal included an impeachment vote of Iranian Economy Minister Shamseddin Hosseini, an Ahmadinejad appointment.  Hosseini narrowly escaped conviction in Nov. 2011 for his alleged dereliction of duty to pursue the fraud.

In contrast, financial fraud in the United States and Europe involving trillions of dollars has not been prosecuted, though calls for prosecutions to save the fading reputation, credibility and legitimacy of the Western banking system falls on deaf ears in Washington, London and Brussels.

Economists suggest that taking a blind eye to massive and pervasive financial fraud leads to capital flight and distrust of American and European institutions, not to mention the demoralizing effects upon the citizenry.  It’s an age-old and rudimentary issue, according to economist and Iranian Jew Nouriel Roubini.

“Bankers are greedy; they’ve been greedy for the last hundreds of years,” Roubini told Bloomberg News earlier in the month.  “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.”

When asked specifically about the LIBOR scandal, Roubini replied that if government watchdogs don’t begin prosecuting bankers, the public may eventually take matters into their own hands.  The issue is that serious.

“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.  “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.”

See BER article, Roubini: “Global Perfect Storm” Leads to “Hanging Bankers”

Not surprisingly, former British Prime Minister Tony Blair—who, Andrew M. Lobaczewski, author of Political Ponerology: A Science on The Nature of Evil adjusted for Political Purposes states exhibits the behavior of a psychopath—disagrees with Roubini.

Society won’t be better off “if we hang 20 bankers at the end of the street . . ,” Blair, a top adviser to JP Morgan, told the Daily Telegraph last week.

Statements such as the one from Blair naturally infuriates the victims of banker fraud and do nothing to restore credibility in Western banking and finance.

In an impassioned plea to his viewers of Dec. 2010, InfoWars host Alex Jones believes the crisis of morality at the top levels of government and Wall Street is so bad that the U.S. may slip into a period akin to the “Dark Ages” due to the last damage of blatant injustice and callousness exhibited by bad actors represented by Tony Blair.  Jones concludes his message by stating that there is no room for equivocation on the issue of banker fraud, as a pass would eventually lead the U.S. degenerating into a third-world banana republic.

“It’s the bankers or us,” he said.

Here’s How Iran Could Launch Silver to $100

As the latest news from Tehran suggests Iranian oil exports to France and the UK will be cut off in response to EU sanctions on the world’s fifth largest oil producer, the oil price inches to a breakout price above $105 per barrel.  Silver, too, is again prepping in sympathy for the possibility of a major move up to test $37, which, if cleared, could prompt traders to eye the last bastion of resistance at $50! Sign-up for my 100% FREE Alert

In essence, by his latest move, the confident and smiling and Ahmadinejad has told the Obama Administration to ‘bring it on’ and be thrown out of office as the US teeters to a market-driven bankrupt, not unlike Russia 1989 following its war with Afghanistan.

Iran’s oil ministry spokesman Ali Reza Nikzad-Rahbar stated on the ministry’s Web site during the weekend that “crude oil exports to British and French companies have been halted,” adding, “We have our own customers and have no problem to sell and export our crude oil to new customers.”

The threat of $150+ (maybe more likely $200) oil price from an attack on Iran during an election year will most assuredly usher in a Republican, and Obama knows it.  Inflation will kick him out of the presidency as fast as Jimmy Carter tumbled out of the Oval Office in 1980—over the same issue:  Iran.

“Above $115, there really isn’t any technical resistance until the $140 level, near the all-time high,” technician Dan Norcini told King World News.  “If we see two consecutive closes above $115, you dramatically increase the odds that crude oil will be revisiting the all-time highs near $150. . .”

On the other hand, the inflation that’s already primed into the financial system can be masked by a war with Iran, providing perfect cover for the Fed and its drive to lower the value of the U.S. dollar.  Could Obama benefit politically as a war-time president?  History shows Americans rally around their president during war irrespective of his popularity prior to the war.

What this may mean, is silver bugs could soon have their day in the sun despite the blatant dereliction of duty at the CFTC to put an end to JP Morgan’s criminal enterprise.

So, it turns out, instead of the ‘good guys’ ensuring a free market in silver, Iran, backed by the might of Russia and China, could free silver from the financial repression scheme of US policymakers.

The chart, below, shows the relationship between the oil and silver price.  As oil ran away from the silver in 2008, silver caught up with crude during the monster silver rally of July 2010 – April 2011, taking the price of silver from $18 to nearly $50 within eight months.

How high the silver price can achieve during the next rally could pop some eyes for sure.

The silver market is razor thin.   And with reports from both Eric Sprott of Sprott Asset Management, Goldmoney’s James Turk and the U.S. Mint indicating that the number of dollars moving into the silver market has equaled the amount of dollars moving into the gold market for months following the violent 50 percent silver correction last year, it’s difficult to imagine anything but spectacular moves to the upside could result.

Sprott recently told the Silver Doctors:

“ . . . [investors are] buying 50 times more physical volume of silver than they are gold. And when you go to the US Mint site, they sell the same number of dollars of silver as gold. Which means people are buying 50 times the volume of silver than gold.

“But when you look at what’s available to buy- you know we produce 80 million ounces of gold a year, and maybe 70 million of that is available for investment, and we produce 900 million ounces of silver, and theoretically let’s say 200 million ounces are available for investment, well that means you can only buy 3 times more silver than gold for investment purposes.

“But we see so many instances where the ratio is 50 to 1! And GoldMoney’s the same thing. Almost every time I talk to a metals dealer my favorite question- How much silver do you sell vs. gold? And every time, I get the same answer: We sell as many dollars of silver as gold. Well, that’s impossible. It’s just impossible that people can keep buying at that rate, and we not end up with some type of shortage. It’s those data points that make me so optimistic about silver.”

The chart, below, suggests a move in oil to $150 could spark that silver breakout above $50 that silver bugs have anticipated since the beginning of the year.  At $150 oil, silver could clear $50 easily, moving traders to the next target of the round number of $100.

Numerous predictions of big moves in silver for 2012 have streamed in since the start of the new year.  One standout, financial author Stephen Leeb, told King World News on Jan. 31 that he wouldn’t be surprised if silver cracks $100 in 2012.  He believes that, not only is silver an under-priced monetary metal, it’s a critical industrial metal for China’s alternative energy programs.

“I think the outlook for silver, both as an industrial metal and certainly as a monetary metal, is as bright as it can possibly be,” he said.  “I’m sticking with my target of at least $100, but I tell you, Eric [King], it will happen this year.  We are definitely headed for triple digit silver in the not too distant future.”

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