“You Will See Terrorists Attacks” in America: Iranian CIA Agent

By Dominique de Kevelioc de Bailleul

In another of a series of eye-opening interviews on TruNews Radio, CIA agent Reza Kahlili told host Rick Wiles he anticipates ongoing terrorist attacks in the United States in the event of war with Iran—a war, in which Tehran may even wish to engage.

“This is the era of The Coming,” says Kahlili, referring to Islam’s end-times prophecies of Muslim world domination.  “They expect war.  They’re going to create war.  They could be the initiator.

“Failure to understand that will come as a big shock to the civilized world.”

In agreement with oil analysts, an attack on Iran would engulf the region into war, as other nations take sides in the war with the U.S. and NATO allies, according to  him.  Scores of lives will perish, as well as many more scores of innocent victims go hungry and poor due to the $200+ per barrel print expected from a closing of the Strait of Hormuz.

“Millions will be dead and the global economy will collapse,” says Kahlili.

Though Iran has not initiated military aggression against another nation state since the 18th century, Kahlili states the present leadership in Tehran holds radical religious views typical of many Shi’ite Muslims, the overwhelming majority of Iranians.

“All of them” who control are zealots, says Kahlili, who goes on to say that the Iranian leadership is, not only preparing for a military confrontation with the West, but is also gearing up for a war on its own dissidents, academics and political activists in the country.

“They’ve created six teams,” Kahlili explains.  “Assassins, special battalions within Iran . . . <inaudible> . . . to kill Iranian people because once the war starts, Iranians will riot again.

“So they have prepared to mass murder Iranian people, while at the same time assassins will be throughout the world . . . terrorist activities, assassinations and other jihads to destabilize the world, because they believe that will create the circumstances for The Coming,” he adds.

Not too dissimilar to the activities and militarization of U.S. Department of Homeland Security (DHS), Iran has assembled its own DHS-like organization to squash dissent during the war—the Persian version of former President Bush’s  fascist rhetoric, “you are either with us or against us.”

“They have prepared battalions, special battalion forces, radical forces who will gun down the Iranian people,” says Kahlili, the once Iranian Revolutionary Guard soldier.  “And once the war takes place, every political prisoner, every political and human rights activists in Iran, will be assassinated, as per their plan, so that there won’t be anybody inciting riots.

“It’s a very dangerous time,” he adds.

Kahlili says he doesn’t know how many terrorist cells lurk in the U.S., but he is sure of terrorist cells living in safe houses throughout the U.S., awaiting instructions from Tehran.  They’re of “Latin American origin, some Mexicans, Sudanese, of many other nationalities,” working in five or six assassins per group.  When the cells get the order, the terrorist activities begin in the U.S, according to Kahlili.

“We will have violence in the USA.  It’s going to be a step-by-step, phase-to-phase war,” he says, adding that the coming attacks in America won’t necessarily be conducted, exclusively, through the use of traditional bombings of ‘soft’ targets.  The terrorist activities will include potentially more dangerous and damaging weapons made with simple instructions and ingredients that can be manufactured at inconspicuous locals, as well.

“ . . . theses chemical and biological bombs can be made in a garage, in a house in the U.S.,” says Kahlili.  “They are prepared; they have the knowledge; they could commit such heinous crimes.”

If U.S. Troops Fight WWIII, Who Fights the Coming American Civil War?

By Dominique de Kevelioc de Bailleul

U.S. troops available for deployment to fight a full-blown war is 1.4 million, with an additional 2.1 million, if all of NATO were to oblige.

On the other hand, if the Chinese commanded its people to deliver up every able 18-year-old male to fight a full-blown war, 6.5 million would need a uniform.  When all 18-year-old Chinese men are knocked off in first rounds of battle, another 6.5 million 19-year-old vengeful can step in, with another set of 17-year-old men coming of age at the rate of 500,000 per month.

With that back-of-the-napkin estimate of manpower available on both sides,  some group buried deeply within the true power structure out of reach of an American president must believe that the prize gained from winning a war with Iran is truly that large.

And what if a conventional ground invasion strategy turns into a nuclear one?  What prize is worth that?  With most of the Middle East and North Africa stirred into a frenzy of anti-American sentiment, how does that “snake pit” make it any easier on those wishing to control the region?

“What Washington has done, by destroying the secular governments that sat on these Islamist forces by destroying Saddam Hussein, by practically destroying Assad, by destroying Gaddafi, they’ve unleashed all of the virulent and extremist Islamist forces that are determined to throw off all forms of Western influence,” former Asst. Secretary of Treasury Dr. Paul Craig Roberts told Infowars’ Alex Jones.

“So how can they control it now?  They can’t.  The way its was controlled was by the people we’ve overthrown.  So we’ve produced this snake pit for ourselves,” he adds.

Those behind the overthrows won’t admit they were wrong about suggesting a high-risk mission of complete control the Middle East was a good idea, according to Roberts, “so they’ll stick with the same stupid policy,” he says.

In the end, hubris “will destroy them”— the elitists.

The much-talked-about nuclear option is truly insane; a conventional war cannot be won; and the finances to pay for a WWII-like scenario aren’t there.

Living in a cave for years to escape nuclear fallout doesn’t sound like a worthwhile benefit to those behind today’s U.S. foreign policy in the Middle East.

Fighting a conventional war necessitates the U.S. to bring back the draft, and by somehow forcing the growing percentage of ‘awaken’ men to put aside their differences with the state apparatchik to fight a national cause.  That’s highly unlikely.

Then, there is the matter of maintaining the value of the dollar while fighting an enemy that holds $2 trillion of U.S. Treasuries.

When the dollar collapses from a Chinese financial attack in the sovereign debt market, how does Washington pay for the troops?

“We have the fiscal cliff; it will be evaded, just like Congress evades the debt limit, the budget resolution,” says Roberts.  “They evade everything that’s a real problem, and they continue all of this pretense.  So in the end, there’s nothing but pretense.

“And so I think this is what brings down the empire and saves us from the police state.”

“It’s a culture and empire of delusion,” Roberts concludes.

“They’re building a wood chipper that they want to feed us into, but they’re the ones who end up going into it,” says Infowars’ Alex Jones.

“That’s right.  I think that’s a good way to put it,” says Roberts.

“They’ve taken away our civil liberties; they’ve built these interment camps; they’ve broken the Posse Comitatus law,” Roberts continues.  “So they’re preparing to use the same force and violence against American citizens that they used against the Iraqis, the Afghans, the Pakistanis, the Yemenis, the Libyans.

“So what’s happened is: persuasion and argument and convincing people is no longer the policy; it’s violence, force—force and violence.”

How much force China will tolerate is unclear.  An attack on Iran seriously jeopardizes China’s industrial machine and weapon against U.S. hegemony.  Without support of the dollar, “people abandon the stock market, the real estate market, the bond market, the currency itself, and all of sudden the dollar is no long the reserve currency and all of a sudden the United State can no longer pay for its imports [8 million barrels of oil per day, especially] . . .

“So it ends the power.  The empire crumbles overnight.  The wars stop, because there is no means of financing them. . . . and that’s when it all comes unglued.”

Former State Dept. Veteran Drops Bombshell: WWIII Starts Sept. 25

By Dominique de Kevelioc de Bailleul

Speaking with Infowars’ Alex Jones, former Assistant Deputy Secretary of State Dr. Steve Pieczenik says Israel plans to attack Iran before the U.S. elections of Nov. 6., and, that an attack on Iran will assuredly kickoff WWIII, according to him.

Moreover, Pieczenik, a man whose career inspired the character Jack Ryan of the Tom Clancy book series, says the ‘October Surprise’ will not take place in October.  Instead, the big surprise will come earlier, in late September.

Dr. Pieczenik says the specific date of the strike on Iran is Sept. 25th or 26th, Yom Kippur—the Jewish holiday, which commences in the year 2012 at sundown on the 25th, and ends at nightfall, the following day.

“It [an Israeli attack on Iran] could be earlier than October, because we have Yom Kippur.  And I predicted on your radio show, and I predicted to our national security people, privately, that Benjamin Bibi Netanyahu would start something on Rosh Hashanah,” says Pieczenick.

“This [prediction] was over a year ago, and I said it on your radio show.  He was as predictable as a clock, and the Israelis will be very predictable, on Yom Kippur,” he adds.

Pieczenik says it’s clear to him that Israeli prime minister Bibi Netanyahu has already planned to attack Iran and has been desperately trying to enlist the U.S. to back him up.  But, with or without U.S. direct help, Pieczenik is certain that Israel will attack Iran.

Moreover, he says Netanyahu is an extremest, who will “lie” for his personal and selfish cause, a conclusion also drawn by many Israelis who protest his regime.

“Everything Bibi is saying to the Americans and the American Jews is an absolute, unmitigated lie,” Pieczenik, a Jew, himself, says forcefully,

“What we have here is a collusion between Saudi Arabia, neocon Jews of America and Israel, against a president, who, whether I like or dislike, and may have lied about Osama Bin Laden,” he adds, “he [President Obama] is the son . . . a son of a CIA operative, the grandson of a CIA operative, who understands very well what the issues of intelligence are.”

With help from his neocon friends, Netanyahu threatens the entire world with the suicidal notion that Iran must be attacked, and the Israeli prime minister must be stopped, even if it means assassination, according to Pieczenik

“In a couple of weeks, they [Israel, Saudi and neocons] will try to initiate another war, unless their ex-Mossad operatives and their ex-Shin Bet will take out Netanyahu, and do to Netanyahu what happened to Rabin,” exclaims Pieczenik.   “They know what I’m talking about.  Otherwise he will bring down Israel, the world, and there will be a third world war.”

He also says, “What we are, is [sic] at the brink of war, that is being precipitated by two major countries.  That is, Israel, particularly Bibi Netanyahu, who knows his country is failing economically, socially, politically.”  And the other country is “Saudi Arabia.”

Pieczenik says the Israelis, Saudis and neocons were behind the 9-11 attacks, an accusation also made some years ago by many researchers of the incident.  Once considered a crazy idea forwarded by some ‘conspiracy theorists’, who seek to see a conspiracy in every major world event, the conspiracy theorists have been mostly vilified, though no reinvestigation of the 9-11 incident has been seriously proposed by any member of Congress.

Today, the ‘conspiracy theory’, or ‘inside job’ theory, appears to be much, much closer to ‘fact’ than the account of that day was published through the official Congressional report of 9-11, giving rise to a strong possibility of a Mossad, Saudi and neocon conspiracy to carryout a false-flag attack on the United States and blame the crime on Osama bin Laden, Iraq and Afghanistan.

Given evidence of Mossad’s checkered past and involvement with the attack of the USS Liberty on Jun. 8, 1967, killing 34 American soldiers, Pieczenik comments won’t be received as a big surprise to many Americans.

I want Netanyahu to “begin telling the truth, that the involvement of Israel was, in 9-11” says Pieczenik.  “Over 134 Mossad operatives were picked up on 9-11.  The FBI picked them up [and] debriefed them.  They were clearly involved with the Pakistani ISI and Saudi Arabian intelligence” on 9-11.

And, as far as the U.S. Ambassador to Libya, Christopher Steven: he was murdered by the Israeli, Saudi Arabia and Zionist neocons cabal, according to Pieczenik.

“The killing of the ambassador is to precipitate war, so that Israel can finally get into Iran and try to destroy Iran,” he says.  “It will be the beginning of the end of Israel.  It’s Armageddon for Israel,” if it attacks Iran.

“The Pentagon source informed me the distance between the Libyan embassy, where the ambassador was, and where the rioters were, was so large, and two days of delay in response . . ., simply that they [the killers of Stevens and three other embassy employees] were professionals ready to take out our ambassador,” he adds, and with the “approval from Saudi Arabia.”

Adding to Saudi Arabia’s involvement of the two-plane demolition job in NY City, the crash of another alleged plane into the Pentagon, and the alleged downing of another plane into the woodlands of Pennsylvania, he says, “Saudi Arabia and Israel are twins. . . . There’s no way you can separate Israel from Saudi Arabia, or Saudi Arabia from Israel.  They go back all the way to 9-11.”

Then the subject of the killing of alleged mastermind of 9-11, Osama bin Laden.  According to Pieczenik, the account of Navy Seal Admiral William McRaven and President Obama regarding bin Laden’s death in Pakistan is another unmitigated “lie.”

“Then we get to the issue of Osama Bin Laden, which Obama said incorrectly and lied to the public that Osama Bin Laden was killed by Seal Team 6,” states Pieczenik.  “Admiral McRaven had lied, repeatedly—unfortunately, a decent admiral, but for whatever reason he repeatedly insisted on saying Seal Team 6 killed Osama Bin Laden.”

Pieczenik says Bin Laden had already been dead, and McRaven had known that.

And the names that came out of 9-11 unofficial investigation are, what Pieczenik calls, the “neocon chicken hawks” of “Paul Wolfowitz, Elliot Abrams and Michael Chertoff.”

He adds, “Chernoff, the Chernoff Group, which is nothing more than a cover for the CIA and FBI, run by Charles Allen, a former CIA operative.”

Moreover, U.S. intelligence was behind the uprising in Libya, the assassination of Libyan president Muammar al-Gaddafi, and the murder of U.S. Ambassador to Libya Christopher Stevens, according to Pieczenik.

“Why this particular ambassador,” Pieczenik asks, rhetorically.  “I think it’s very important for your audience to understand . . . Stevens was an ‘Arabist’. . . ”

He goes on to explain to the Infowars listeners that so-called Arabists are experts of Arabic culture, language and Arab history.   But, these State Dept. professionals also could pose a threat to Israel’s ongoing propaganda war in a long-standing effort to elicit sympathy for the Jewish state.

Israel is no friend of America, according to Pieczenik.

He says, “From a geopolitical point of view, Israel is a strategic liability and has been a strategic liability for over 20 years.  Since 1968, we have had no need for Israel other than the fact it covered us under the Soviet Union on the eastern, southern and northern flank.”

Presently, Israel is engaged in an all-out “provocation propaganda” campaign, according to Pieczenik, with the knee-jerk accusation from Netanyahu of Iranian involvement in the tourist bus explosion in Bulgaria, as the most recent and egregious example.  The Bulgarian bus bomb incident is still under investigation.

But the Obama Administration won’t bite to being drawn into another unpopular war—following the failures, war crimes and lies surrounding the attack of Iraq and Afghanistan by the Bush Administration.

“Netanyahu has no idea that Petreus will not save him; Dempsey will not save him; our Navy will not save him; McRaven will not save him; neither will Obama,” states Pieczenik.  “He cannot get that message through, so he’s pushing this through until he kills one of our ambassadors, precipitate what we call ‘provocation propaganda’, only with the approval of Saudi Arabia.”

Yom Kippur falls on the dates Sept. 25 and 26.  Watch for those dates, says Pieczenik.

Fed to Crash Markets Before Launching QE3

By Dominique de Kevelioc de Bailleul

Desperate to print Wiemar-style to fight off the most viscous Kondratiev Winter on record, Federal Reserve Chairman Ben Bernanke may not satisfy ‘inflation trade’ onlookers at the close of his Jackson Hole speech scheduled Friday.  He may, instead, merely allow months of anticipatory front-running of stocks do the work of propping up asset prices for him.

And if investors don’t get the ‘all-systems go’ at Jackson Hole, there’s always the FOMC meeting of Sept. 12 & 13 to get the good news.  That’s when market volatility could move off the charts, maybe extreme volatility to the downside, according some Wall Street analysts.

“With the equity market pricing in a significant chance of QE3, stock prices are no longer as useful a signal to Fed officials. Should the Fed disappoint at its September policy meeting, the risk of a stock sell-off is high,” Bank of America Merrill Lynch analysts wrote in a note to clients, Aug. 21.

“Some in the markets think that the Fed effectively targets equity prices, meaning that to predict Fed policy, one merely needs to track the U.S. stock market,” the analysts add.  “There is a curious circularity to this view, however: the Fed will not launch QE3 so long as stock prices are high, yet the stock market is high because it anticipates QE3.”

The old adage on the Street, ‘buy the rumor, sell the fact’, may be at play here. But if Bernanke plays too-hard-to-get with investors in the coming weeks, a nasty fall could be in store for the Fed chief—a fall that could outright overwhelm the NY Fed’s PPT and result in a stock market plunge akin to the Crash of 1987.  Maybe.

The chart of the S&P 500, Spanish IBEX 35 and Chinese SSEC shows the gaping chasm between U.S. stocks and two indexes represented by two economies with, again, divergent outlooks.  Spain’s fiscal outlook in coming years isn’t much different from the federal budget outlook for the U.S., while the Chinese $3 trillion war chest of reserves couldn’t be in a better relative position to survive the righting of the bogus ‘World is Flat’ global agenda.

Would Bernanke risk a market meltdown that snaps the notion of an eternal ‘Bernanke put’?  Is he that confident that the remaining holdouts of an obviously rigged market will plunge the world economy into the anticipated financial Armageddon—before a U.S. presidential election?

The answer may be a shocking, even cockamamy—YES and YES!  And it may not be that much of a risk.  A surprise ‘not yet’ to further money printing at Jackson Hole and the FOMC meeting could be forthcoming.

Consider the geopolitics in the Middle East, and contemplate the dire political tug-o-war between Israel’s Prime Minister Benjamin Netanyahu and U.S. President Barrack Obama regarding Iran.  Netanyahu insists military action against Iran be taken before the U.S. election in November, while Obama remains adamant that the issue surrounding Iran must wait until after the election—a stand which probably infuriates the warmongering neocons and bankers, who have since put their stock on Republican candidate for president Mitt Romney as their next bankster puppet.

And the white-hot ambitious, some say, narcissistic, Romney won’t be taking any chances leading up to what is expected to be a close election, if recent polls serve as a guide.  He may need a little help from a financial catastrophe to convince enough voters that they may have to believe in a different kind of change.

But first, Romney must take the pledge—for the record.

Jul. 29, he told a gathering of Israelis in Jerusalem:

“We serve the same cause and we provoke the same hatreds in the same enemies of civilization. It is my firm conviction that the security of Israel is in the vital national security interests of the United States . . .

“Israel and America are, in many respects, reflections of one another.  We both believe in democracy, in the right of every people to select their leaders, and choose their nation’s course. We both believe in the rule of law, knowing that in its absence, willful men will be inclined to oppress the weak. We both believe that our rights are universal, granted not by our government, but by our creator.”

Later in the speech, Romney spoke the magical words that signaled the Netanyahu regime that he, not Obama, is your man.

Stopping Iran from acquiring nuclear weapons “must be our highest national security priority” and “we must use any and all measures” to destroy that capability.

“Containment is not an option,” Romney added.

And because “both men [Obama and Netanyahu] share a deep dislike and distrust of each other,” writes Anshel Pfeffer of the leftist Israeli newspaper Haaretz, the Israeli and Anglo-American mutually aligned partnership in the petrodollar wars must not be jeopardized by a Commander and Chief not willing to do what’s necessary, in the eyes of the neocons, of course.

Therefore, Obama must go, leaving the banking cartel’s lead man at the Fed, Bernanke, to continue manipulating the markets, but this time, to the downside to throw the game for Romney and the neocons at this critical moment (for Israel) in the Middle East.  Bernanke can always come in with a bazooka money blast and ‘make things better’ for Wall Street while putting that one last lid on the gold price (maybe) before the out-of-control launch of the yellow metal truly begins during the first year of a Romney first term.

“If the S&P drops 150 or 200 points, you can be sure that there will be more QE, not only QE3 but QE4 and so forth,” Swiss money manager Marc Faber tells GoldSeek Radio this past weekend.

But, not to worry. QE is coming, but a little politics comes first to nail down decades-long geopolitical strategy in the oil patch concerning a much bigger war between the U.S., Russia and China regarding the U.S. dollar and the gold price.

Though Faber doesn’t speculate on the upcoming Fed actions, he does state “it’s premature to say that this a genuine breakout” in gold and silver, and I “say that with great confidence.”

Breaking: Egypt Attacks Sinai; Israel Wants Yom Kippur II; Mossad Suspected Again

By Dominique de Kevelioc de Bailleul

In response to an attack upon Egyptian security-checkpoint guards by ‘unidentified’ gunmen in the Sinai Peninsula, Wednesday, the Egyptian air force “pounded the hideouts” of the covert attackers, killing 20 of them, according to Russia Today and PressTV.

It’s “the first air strike in the Sinai since 1973,” the year of the Yom Kippur War between Egypt and Israel, stated Russia Today, and comes off the heals of earlier attacks by the same operatives in the region, resulting in the murder of 16 Egyptian border guards.

“Egyptian President Mohamed Morsi has pledged to strongly respond to the ‘cowardly attacks’, vowing that the assailants would pay for the deadly attacks,” stated PressTV.

Now known as a tourist destination, the Sinai becomes the second tourist spot in less than one month where the Israel’s spy agency, Mossad, is believed to be involved in false-flag attacks in an effort to engender Western sympathy for Israel and its dangerous dispute with Iran.

Prior to Wednesday’s attacks, an ‘alleged’ Mossad operation, which killed five Israeli tourists in a bus bomb explosion in Bulgaria, prompted immediate accusations of Iranian involvement from politically unpopular Israel prime minister Benjamin Netanyahu.  Iran strongly denies the accusations and awaits the results of a proper investigation of the incident.

How the U.S. and Israel spin the incident assuredly will be forthcoming through the Western ‘mainstream media’ cartel, but according to those closest to the information trail, Mossad is most likely behind the latest in a recent string of murders of its own citizens, and now Egyptians, in an effort to draw the U.S. into stopping Israel’s U.S.-funded monopoly on a nuclear deterrent—a deterrent Iran would also like as protection against U.S.-NATO-Israel contiuned aggression and ‘alleged’ atrocities in Iraq, Sudan, Somalia, now Syria, and neighboring Afghanistan.

In the case of the Sinai, Mossad, again, may be behind the auspicious timing (during Ramadan and a U.S. presidential election) of flareups in a region that has been replaced by gunfire with tourism throughout the past 30 years following the Sinai Disengagement Agreements after the war.

“Egypt’s Muslim Brotherhood and the Palestinian resistance movement Hamas say Israel’s spy agency Mossad was behind the earlier attack,” prompting swift retaliation from neighboring Egypt, according to PressTV.

As if to process the same intelligence as oil traders of NYMEX crude, earlier this week (up $5, independent of other commodities), or privy to the inside scoop of put option (betting on a drop in the value of an underlying security) speculators of American Airlines prior to the attacks of 9-11, Trends Research Institute Founder Gerald Celente and his latest interview with CJAD talk show host Tommy Schumacher, Monday couldn’t be more timely.

“It [war drumming] is reaching a critical mass right now, and I haven’t felt this way since December 14, 2000,” said Celente, and also noted that he senses Benjamin Netanyahu’s behavior mimics one of previous psychopath leaders who have led unsuspecting citizens to the slaughter house for their own selfish goals. “I have that feeling now” with Netanyahu, said Celente.

“This guy, Netanyahu, he has 60 percent disapproval rating right now, and I’ve seen it before,” Celente continued.  “I remember Bill Clinton, you know—wag the dog.  Every time he’d get into trouble with Monica Lewinsky, it was bomb over Baghdad.  They continually do this.”

The 65-year-old Celente expects WWIII as a result of the Israel-NATO-U.S. axis engaging in heightened covert operations in the Middle East in the war for resources and to maintain U.S. dollar hegemony, a parallel war waged against Russia, China and other members of the BRICS nations.  And the neocons are behind these nasty deeds in the Middle East and Afghanistan, according to him and echoed by former Asst. Secretary of Treasury (1981-2) Paul Craig Roberts.

You can’t make war in the Middle East without Egypt and you can’t make peace without Syria. —Former U.S Secretary of State, Henry Kissinger

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.

GLD ETF Raid Imminent as China Flushes JP Morgan of Physical

Sources close to newsletter writer Jim Willie of the Hat Trick Letter tell him the Chinese are finally putting an end to the Fed-sponsored JP Morgan’s gold manipulation scheme—but not until the Eastern juggernaut strips every ounce of physical gold in a brilliant Sun Tzu maneuver against the Comex gold cartel.

With the cartel levered as much as an estimated 100-to-one in the gold market, JP Morgan is trapped into a game it cannot win in the end.  As normal market forces seek higher prices to quell demand, JP Morgan’s price suppression activities only serve to hasten the day when the gold price will be set free—but on China’s timetable and at a level of gold stock the Eastern giant feels comfortable stripping before crushing the hold of the G-8 and the menacing U.S. dollar standard from which China wishes to extricate itself.

“My firm belief is that a fair equitable gold price will come only after the price goes dark in the normal traditional paper dominated channels,” Willie began his update of the gold market in a piece posted on GoldSeek.com, suggesting that, at some point, the price quoted at the Comex will be revealed as merely a camouflaged official price-fixing mechanism to throw off traders into thinking rallies and plunges in the price of gold are part of a normal price discovery process.

In other words, instead of Treasury announcing on a periodic basis a new pegged price for gold under a broken Bretton Woods configuration, the U.S. can lever dollar against ridiculously low gold reserves to match the dismally low dollar reserves against assets held on the books of Fed member banks via JP Morgan’s gold manipulation scheme.

The customer(s) of JP Morgan that Blythe Masters had referred to in an interview with CNBC is, accounting for the lion’s share in terms of dollar volume, the Fed itself—which makes sense in that JP Morgan is one of the owners of the Fed (contrary to the obfuscation presented on the Fed’s Web site).

“We store significant amounts of commodities, for instance silver [gold for instance], on behalf of customers. We operate vaults in New York City, in Singapore and in London. Often when customers have that metal stored in our facilities they hedge it on a forward basis through JPMorgan, which in turn hedges in the commodities market,” Masters told CNBC on Apr. 5. Emphasis added to text.

“If you see only the hedges and our activity in the futures market but you aren’t aware of the underlying client position that we’re hedging, then it would suggest inaccurately that we’re running a large directional position,” she added. “In fact that’s not the case at all. We have offsetting positions. We have no stake in whether prices rise or decline.”

At a ratio of approximately 100-to-one of paper “hedges” against physical gold, the only customer who would be large enough to cover such a bet for JP Morgan would be a printing press—the Fed.

Back to Willie.  He goes on to say in his article that the “Eastern coalition” has been stripping JP Morgan of physical gold at intervals of $10 in a “reverse pyramid,” or higher amounts of buy orders as the price drops.  As the Chinese lay a net of buy orders of physical during the massive de-leveraging process conducted by the European banks, the gold sold by the EU in an effort to remain liquid shifts from the West to East at fire sale prices made possible by JP Morgan’s paper shorts throughout the gold bull market.

“The gold price will not rise until the Eastern Coalition has had their fill in a Western diet rich in gold,” Willie stated.  “ . . . In the process of de-leveraging, the cartel is losing their gold bullion. They are vulnerable, made worse by their insolvency, aggravated by their lack of liquidity. The paper gold price is imploding, but not the physical price.”

Willie’s intelligence of renewed aggressive Eastern alliance gold buying—as well as the just-released news flash from Reuters of Vladimir Putin’s decision to skip the G-8 summit—appear to dovetail at this time with geopolitical events concerning Iran.  Though Russia is a member of the G-8, China is not.  Escalating aggression by the U.S. against Iran has pushed Iranian allies China and Russia into a formidable alliance against America and may explain Russia’s abstention from the meeting in a show of allegiance with China against their mutual enemy in battle for another gold—black gold—oil.

If the U.S. can secure Iranian oil, China loses its leverage in the currency war and its timetable for the renminbi to be elevated as a world’s reserve currency—which the Russians would benefit as well, as the ruble would be elevated (and included in the proposed SDR with the renminbi) as dollars leave the oil market through bilateral trade agreements forged by anti-American forces, globally.

Gold market insiders sense that, as Willie reports, China and its Eastern partners have a window of opportunity before the U.S. presidential election and/or a Fed announcement of more QE to accumulate as much gold as possible before the gold price moves higher to relieve the massive physical buying at the hands of the Chinese.

But it appears the U.S. could buy more time in the event of a gold raid by the Chinese (akin to Europe’s raid on U.S. gold during the late 1960s) as a force majeure in the gold market would collapse the dollar and the means of funding U.S. military operations against Iran and countless other operations hostile to China and Russia.  That physical gold, not available to JP Morgan, would need to come from the confiscation of private gold assets, such as those held for the Barclay GLD ETF.

“Unfortunately, the Eastern gold raids waged against the Western gold cartel might be satisfied with gold bullion pulled from the back door of the GLD exchange traded fund. As the Eastern Coalition observes the de-leverage process and swoops to exploit the insolvent condition compounded by lack of liquidity, the demands made on cartel member gold reserves might come from the GLD fund itself,” Willie speculated.

He added, “The cartel simply shorts the GLD stock, entitling themselves to vast truckloads of GLD gold bars in illicit grabs. The tracks are covered by altered bar lists, whose track record is so abysmal and faulty that new covered tracks are easily made. The GLD fund is destined for a day like Madoff and Corzine before the Congress, but with far more lawsuits. Given the vast conduits between Europe and the United States, any event triggered on the continent will extend quickly to the U.S. and UK.”

Gold traders should realize that Willie’s analysis strikes at the heart of the U.S. dollar, taking Jim Rickard’s thesis to a much deeper and poignant level—a level that Rickards will not dare to go.

In fact, Rickards told TruNews radio that investors of gold will be disappointed by a probably confiscatory tax of “90 percent” on gold held by American citizens, leaving that Rickards comment to beg the question: then where do Americans go to flee the dollar?

The answer is still—GOLD!—and the corollary? Store it outside the jurisdiction of the U.S. and away from a criminal Washington hell bent to sacrifice every American in its effort to achieve its objectives.  But Rickards, the DoD consultant, won’t tell you that, which suggests to anyone who listens to him that it is futile to protect yourself from a fascist U.S. government intent on sacrificing a nation’s privately-held treasure for its globalist agenda.

Iran ‘Looking for War’ to Fulfill End-Times Prophecy, Says Undercover CIA Mole

CIA undercover operative, formally with the Iranian Revolutionary Guard, and author of A Time to Betray, Reza Kahlili (pseudonym), shocked TruNews host Rick Wiles with the revelation that the Iranian regime actually welcomes an attack by Israel or the United States.

The seemingly suicidal position of Iran to defy every sanction and threat imposed by the U.S. since the Islamic Revolution of 1979, mocking the superpower and its allies with tit-for-tat retaliations to match the taunting smiles from its most-recent president Mahmoud Ahmadinejad as well as threatening salvos from the Mullah leadership of Iran, is no bluff and no propaganda; it’s real and could spark a holocaust the world has never seen, according to Kahlili.

In fact, Iran, shockingly, is “looking for war,” he said.

“The regime in Iran is preparing for a final confrontation, and there is a book they have distributed, a publication they’ve distributed throughout all of their forces, called The Last Six Months,” he explained.  “And they have based it on centuries of hadith, and the signs and that they believe that—that time is very close.  And they say an attack on Syria or Iran will trigger the ‘End of Times’.  So they’re preparing for that; they’re preparing to create that circumstance. . . . Actually, they look for war.”

Under Shiite theology, the reappearance of the last Islamic messiah rises up in Persia to “kill the rest of the infidels and bring the world under one flag, one government—Islam,” he said.

Kahlili goes on to brief TruNews listeners with Iran’s capabilities of executing a holocaust of events, of which were carefully acquired following the Iran-Iraq War of the 1980s—potentialities which neighboring Iraq couldn’t imagine mustering under the regime of Saddam Hussein during the same period.

When Iran Defense Minister Ahmad Vahidi stated in 2009 that Iran is expanding operations in the Atlantic, he was referring to Iranian submarine fleets operating off the coast of the United States, according to Kahlili.   With these vessels, “long-range ballistic missiles [could be launched]; they could attack our homeland without any warning,” he warned.   “So we should take it seriously.  They mean what they say.  They have plans for the U.S.”

He added, “The Ayatollah often said publicly, the demise of America is at hand.  And that the U.S. and Israel will soon be destroyed.  And that they’re going to consider, they’re proceeding with the nuclear bomb project and currently have enough enriched uranium for six nuclear bombs.”

Host Rick Wiles asked Kahlili whether the Iranians can threaten the U.S. with a doomsday blast from off the coast of the U.S. without detection, the threat that American civilians should be most concerned.

“They sure can,” said Kahlili, noting that Iran has developed smaller submarines for the intent purpose of lurking off the coast of the U.S. within a three-mile reach of New York, Boston, or other cities with significant Jewish populations.

“Same thing as Pearl Harbor,” added Kahlili.  “You can be surprised by an attack out of nowhere.  But they really do not care about the response because of their ideology, and ultimately this is a very dangerous situation.”

Wiles asked Kahlili about other threats and capabilities of Iran that the American public should be aware of.  Kahlili said the real threat comes from North Korean weaponry research and technologies, and one in particular, called electromagnetic (EMT) weapons.

With an EMT blast, entire communications infrastructure would be destroyed, essentially ‘frying’ all electrical circuits and destroying the U.S. economy as quickly as a currency collapse.  Kahlili has confirmed through CIA intelligence, Iran is known to be procuring the technology from North Korea—the third nation of George Bush’s ‘Axis of Evil’.

“And these are super EMT weapons,” Kahlili said.  “They could launch it on top of a ballistic missile and blow it up over the skies, and it can act as a super EMT weapon and it could destabilize the infrastructure of the U.S. and send us back to the 18th century, immediately.  All power, water, food supply, everything—they’ll be destruction in all telecommunications.  Life will stop—period.”

Congressional advisory boards have estimated that after one year of an EMT blast, up to two-thirds of American would perish from a multitude of problems, from food supply to revolution.  “They have the bombs; they have the missiles, and I don’t think we’re paying attention to that.”

In a flurry of missile sightings off the coast of the U.S. of approximately two years ago, Wiles noted that it may have been the Iranians (not Chinese) who were testing, making a dry run of the EMT weapons in the Pacific Ocean, the Atlantic Ocean and Gulf of Mexico.  Three separate incidents within less than a six-week period of what appeared to be ICBM launches, one in the Pacific, one off the coast of New York, and the last one near Texas (Gulf of Mexico), were not adequately reported, though statements made by witnesses of the events seeped into the back pages of mainstream media and Internet news sites.

But the International Atomic Energy Agency (IAEA) didn’t miss the events, which were mentioned in its latest report to the international community.

“The IAEA in its recent report documented that they have experimented with launching missiles from their naval vessels [submarines?] and detonating the warheads over the surface of the earth,” said Kahlili.  “So they [the Iranian subs] would launch it straight up, then they detonated it, and then everyone would think that was the third launch.  But what the purpose of the launch, as documented by the IAEA, is that, that’s for an EMT attack.”

As those expecting a replay of the war with Iraq, Kahlili said the circumstances surrounding Iran’s fanatic drive to fulfill Shiite prophecy should not be underestimated, because the conflict planned by Iran could exact casualties in the United States and Israel numbering in the millions—of civilians.  It’s about religious beliefs, not necessarily geopolitics, according to him.

“So an attack on Syria or Iran, that’s the trigger and then they will go into action to attack Israel, attack the U.S. and that’s the start of the Last Six Months . . .,” Kahlili explained.  “They are looking forward to this day.  So this is a very important thing that you have to understand: they are looking for war and therefore their war rhetoric, which is considered here in the West as merely a propaganda, or talking to their choir, to their loyals in Iran, but that’s not it; they truly believe in this.  And they are looking forward to an attack on Iran because they have made the preparations for that scenario.”

He continued, “Thousand of cells have been placed throughout the world, with Hezbollah, the <inaudible> forces, Islamic Jihad and other proxies, even in U.S.  And these cells are ready to carryout the order and they will attack simultaneously many. Many cities and others, and at the same time hundreds of missiles will rain down on Israel and the war will expand, Hezbollah, Syria and others would get involved and there will be attacks on U.S. homeland.

“They expect that two-thirds of the world’s population will cease to exist due to wars, chaos and lawlessness . . . And that’s all in the six months; that’s all that takes place, from the trigger to the time of the coming.”

Kahlili intimated that much of the preparations within the U.S. may be due to the National Security Advisers (NSA) catch-up efforts to mitigate the threat of an Iranian nuclear or EMT attack on U.S. soil.  He said the U.S. is not “well-protected at homeland” and an attack could “cause real fear here.”

Kahlili went on to say that thousands of terror cells lurk within the boarders of America waiting for the signal from Tehran to attack.  “Terror cells are on high alert to attack the U.S. . . . the cells are here; they are armed and ready to proceed,” he said.

“They’ve even recruited people of Mexican origin, or Latin American origin,” he added.

But according to Kahlili, for the most part, the Iranian population within the U.S. is no threat, because most Persians residing in the U.S. once fled from the regime in Iran, going as far back as the Islamic Revolution of 1979.  Iranians are as worried about the Iranian regime as other Americans.

And as far as the oil price?  Kahlili said an attack on Saudi and Kuwaiti oil fields could devastate the global oil market, taking millions of barrels of crude offline for too long a period to sustain even a modicum of hope of affordable pricing.

“What Iran is going to do by attacking many facilities within the region, Saudi Arabia, Bahrain, UAE, Kuwait, Qatar . . .,” he said about the potential impact on oil prices from a successful initial missile launches, “the first reaction would be hitting all the oil fields and creating a situation where oil would go over 500, 600, $700 a barrel, a total collapse of the world economy, then terror attacks across the world and a simultaneous attack with hundreds of missiles on Israel, and it can get worse from there.”

Kahlili suggested that the timetable for a confrontation with Iran could be as early as this July, with possibly Iran striking first.  But in the longer run, a WWIII may be inevitable given the fanatical religious beliefs of the present leadership in Iran.  Any hope of averting WWIII may come from regime change within Iran, according to him.

Source: TruNews, May 4, 2012

Operation ‘Easter Egg’: 200 Arab Billionaires Conspire to “Kill” the Dollar

Secret talks between 200 Arab billionaires in Abu Dhabi, UAE took place during Easter weekend in April 2010 to discuss the death of the petrodollar and the realignment of military protection of Middle East oil fields, according to a source close to Jim Willie of the Hat Trick Letter.

In an exclusive interview with TruNews on Apr. 24 (full audio interview), investigative reporter and newsletter writer Jim Willie told host Rick Wiles that the oil-rich nations of the Middle East plan for an eventual ditching of the U.S. dollar as payment for oil exports from the region. Sign-up for my 100% FREE Alerts

“In Easter weekend of 2010, there was a meeting of 200 billionaires who arrived in private jets in Abu Dhabi,” Willie said.  “And I heard about it from a very good reliable source.  And they decided on a lot of things, like policy toward Iran and how they’re going to handle things like Bahrain, and what they’re going to do regarding protection, and they made a decision.  They’re going to accept Chinese protection, and they’re going to accept the potential for an arms-weapon store from Russia, and they’re going to say good-bye to the American protection.”

While the U.S. pressures the international community to sanction Iran, China fears the move would cut its imports of Iranian oil, which in 2010 reached 12 percent of total Chinese imports of crude.  Saudi Arabia, on the other hand, reportedly fears that its oil revenue is in danger as the world moves increasingly off the dollar standard—a problem that Beijing’s strong renminbi currency offers as a solution to Saudi Arabia’s depleting cash-cow commodity.

Reminiscent of a deal struck between Russia and China in November 2010 to replace the dollar with renminbi and rubles to settle trade between the two countries, a meeting between China’s Premiere Wen Jiabao and members of the Saudi royal family was held a little more than a year later to discuss a back-up plan to the Iranian quagmire.

According to a Jan. 16, 2012, article in China Daily, “In what Riyadh calls ‘the largest expansion by any oil company in the world’, Sinopec’s deal on Saturday with Saudi oil giant Aramco will allow a major oil refinery to become operational in the Red Sea port of Yanbu by 2014.

“The $8.5 billion joint venture, which covers an area of about 5.2 million square meters, is already under construction. It will process 400,000 barrels of heavy crude oil per day. Aramco will hold a 62.5 percent stake in the plant while Sinopec will own the remaining 37.5 percent.

“The move reflected the two countries’ ‘firm willingness to join hands in coping with challenges and safeguard common interests amid profound adjustments to global situations’, Wen told Saudi Crown Prince Nayef bin Abdul-Aziz upon arrival in Riyadh late on Saturday.”

In January 2012, Iran shocked the world with a retaliation against a U.S.-led freeze of Iranian S.W.I.F.T transactions with an announcement that the third-largest Middle East oil producer will no longer accept U.S. dollars as payment for Iranian oil and that it would, instead, accept gold in addition to other currencies from China and India, among other nations, as settlement.

Mar. 29, 2012, New Delhi-based The Indian Express reported that a trade deal had been reached and signed between the leaders of the BRICS countries of Brazil, Russia, India, China and S. Africa—with Russia and China as the two lynchpin members of the extended agreement with India (nuclear weapons capabilities), Brazil and S. Africa.  The agreement includes dropping the dollar as settlement of trade between the five-nation compact.

The article stated, “The five-nation grouping of Brazil, Russia, India, China and South Africa (BRICS) today took the first step towards promoting trade in local currency, and also agreed to work towards creating a new development bank on the lines of the World Bank.”

Willie’s source told him the next step in the process to protect the BRICS, Iran and the oil cartel of the Arab nations is to strike the fatal blow to U.S. dollar hegemony with the “dollar kill switch.”

Russia’s overt intentions to protect Syria and Iran from U.S. aggression signals the tacit willingness of the BRICS to merge with Middle East members of OPEC, with Russia and China lending its military muscle to the expanded group of nation states.

But the kingpin of OPEC, Saudi Arabia, has one condition before it can take the final step: China must convince Iran to cooperate with the United States regarding Iran’s nuclear ambitions.

According to a cable leaked by WikiLeaks, published by the NY Times, a meeting in Riyadh between Foreign Minister Yang Jiechi of China and King Abdullah was held on Jan. 13, 2009, in which it was revealed that “Saudi Arabia understood China was concerned about having access to energy supplies, which could be cut off by Iran.”

“ . . . A later cable noted simply, ‘Saudi Arabia has told the Chinese that it is willing to effectively trade a guaranteed oil supply in return for Chinese pressure on Iran not to develop nuclear weapons,’”  the Times stated.

On April 26, 2012, Associated Press broke the story that suddenly Iran might be cooperating with the U.S.-led international pressure on the Persian state.  But Iran’s apparent decision to acquiesce to U.S. demands came following a meeting between Iran with Russia.

“TEHRAN, Iran — Iran’s official news agency says Iran might ratify the additional protocol of the nuclear Non-Proliferation Treaty (NPT),” stated AP.

“The IRNA report Thursday quoted Iran’s ambassador to Moscow, Reza Sajjadi. He said it could be part of a Russian framework under which Iran would stop expansion of its nuclear program if the West halts further sanctions,” the news wire agency added.

While the 200 Arab billionaires’ plan to execute a “dollar kill switch” may be a “year or two” away, according to Willie’s source, the foundations for an alternative to the U.S. dollar are clearly in place and solidifying rapidly.

Willie told his source that a “dollar kill switch” sounds like an end to the petro-dollar and “the Saudis have agreed to move on.”  Willie told TruNews’ that his source responded, “Bingo!” Sign-up for my 100% FREE Alerts

Marc Faber: Brace for “Massive Wealth Destruction”

Reminiscent of the 1970s and the U.S. fiscal and monetary conditions which soared gold from $35 to $875 per ounce by Jan. 1980, Marc Faber, author of the Gloom Boom Doom Report warned investors of the dire implications of the world’s central banks presently engaged in a global currency war.  Sign-up for my 100% FREE Alerts

But unlike the 1970s and the problems with the U.S. dollar, this time, in addition to the dollar, the euro, pound sterling and yen are also devaluing against everything of tangible value.  And the speed at which these currencies depreciate in the coming years will most likely dwarf the decade which included the Vietnam War, Middle East conflicts, U.S. budget deficits and resulting stagflation.

“Somewhere down the line we will have a massive wealth destruction that usually happens either through very high inflation or through social unrest or through war or credit market collapse,” he told CNBC, Monday. “Maybe all of it will happen, but at different times.”

Though the Iraq War didn’t ignite massive protests as witnessed during the Vietnam protests of the 1970s, the extent of the financial damage to the federal budget grossly eclipses the Vietnam War, not just in nominal terms, of course, but in real terms, after inflation.

In December 2011, The Wall Street Journal reported studies at Columbia and Harvard universities estimate the U.S. has already spent approximately an average of $18.5 billion on the Iraq and Afghanistan Wars throughout nine years of conflict.  That’s more than three times the cost in inflation-adjusted monthly costs of the Vietnam War, according to research published by Foreign Policy in Focus.

“ . . . studies at Columbia and Harvard universities, estimate the U.S. has already spent $2 trillion on the wars after including debt interest and the higher cost of veterans’ disabilities,” wrote the Journal’s Christopher Hinton.

So, the “massive wealth destruction” Faber expects as a result of war is already baked into the federal budget, contributing to an annual budget deficit of approximately $1.4 trillion, or 10 percent of U.S. GDP.  And today’s federal debt has reached $15 trillion.  And now the U.S. threatens to go to war with Iran.

In contrast, the culmination of the dollar crisis in 1980 included a $60 billion deficit against a $2.8 trillion U.S. economy, calculating to a meager two percent deficit to GDP.  By 1986, U.S. GDP rose to $4.46 trillion and the budget deficit peaked at $220 billion, or approximately a five percent deficit to GDP.

Total federal debt as a percentage of GDP during the blowout deficit spending of the Reagan years peaked at 39 percent—a far more manageable debt load than today’s 100 percent—with expectations of another 10 percent of GDP tacked on for fiscal 2013.

With U.S. GDP still expected to remain flat to negative for 2012 (see ShadowStats.com to access more accurate data), and those very same baby boomers who protested the Vietnam War begin drawing on Social Security and Medicare in greater numbers each year, there’s no other means of funding U.S. obligations short of draconian federal spending cuts.

The overall consensus among economist is, that won’t happen anytime soon, as the Keynesian prescription to a sluggish economy includes further deficit spending, not to mention the political suicide politicians would be expected to make by campaigning on budget cuts to avert a crisis.

The only option left to fund deficit spending will need to come from the Federal Reserve, according to Faber.  That means QEIII, much larger than QEII, and more asset-price inflation expected as an outcome.

“It [QEIII] would have to be very significant to boost all asset prices including homes, stocks, bonds and commodities…Much larger [than QE1 and QE2],” he said, suggesting that the only hope the Fed believes it has of generating U.S. consumer spending, therefore GDP, is to raise asset prices as a means of recreating a wealth effect and consumer confidence that has traditionally been generated through higher stock and real estate prices.

In the end, the Fed’s plan won’t work, according to Faber.  He believes investors will balk at higher stock prices after earnings disappointments begin to come in.

Basically I think that earnings may begin to disappoint. That corporate profit margins could deteriorate. And I think we still have a lot of issues. Don’t forget we have QE1, QE2 and Operation Twist. I think in order to really hold asset prices across the board much more QE3 would have to be gigantic. I’m not ruling out that stocks can continue to go up but I doubt they will go up at the same rate as the first quarter. And if you look at the technical under underpinnings of the market, they have deteriorated. The list of new highs is deteriorating. The short positions are way down. And we have an overbought condition in the market if we measure the number of stocks above the 50-day and 200-day moving average. So, generally I would say maybe April is traditionally still a month of seasonable strength but somewhere in the next six months I think you can buy the whole market much cheaper.

Faber recommends accumulating gold on a monthly dollar-cost-averaging basis, as well as buying foreign stocks (Asia) yeilding a dividend. Sign-up for my 100% FREE Alerts