- There were a record number of evictions in 2012, foreclosures are expected to increase in 2013.
- Some 400,000 eviction proceedings have been opened in Spain since 2007, with roughly half of the families involved having already lost residential properties due to foreclosures. That means Spain is only half-way through the crisis.
- There are now 1.7 million Spanish households in which not a single family member still earns a salary.
- 4 million people have lost their jobs since 2007
- 27 percent of the population lives below poverty level
- Evictions now affects pensioners, who have used their own homes as collateral to take out loans for their sons and daughters
- A joint study by UNICEF, Oxfam and Doctors Without Borders concluded that the country will need over 20 years to regain the standard of living it attained in the prosperous, pre-crisis years.
- In the Catalonia region, unemployment is 26 percent
- Youth unemployment is over 50%..."
Friday, December 28, 2012
Social Trap in Spain: Mortgage Nightmare; Why Spain (or Germany) is Guaranteed to Leave Euro
"Looking for a synopsis of the problems facing Spain? A summary of bullet points I gathered from the Spiegel article Evictions Become Focus of Spanish Crisis shows just how hopeless the situation is.
France Economic Implosion Underway; French Retail Sales Contract 9th Consecutive Month as Cost Inflation Surges
"Inquiring minds are noting the expected (at least in this corner) collapse in European retail sales as measured by PMI indices.
The spotlight for this post is France, the second largest Eurozone economy following Germany.
The Markit France Retail PMI® shows French retail sales fall for ninth consecutive month.
The spotlight for this post is France, the second largest Eurozone economy following Germany.
The Markit France Retail PMI® shows French retail sales fall for ninth consecutive month.
Key points:
- Sales fall at sharper pace on both monthly and annual measures
- Purchasing costs rise at strongest rate in ten months
- Stocks of goods for resale decline at faster pace..."
at http://globaleconomicanalysis.blogspot.com/2012/12/france-economic-implosion-underway.html#7MdfG9e27jjBvtox.99
3 Key Charts Show Massive Money Flows Into Gold & Silver
"Many of the King World News readers have asked how much physical
gold and silver are available and stockpiled around the world. Today we are
pleased to provide the answer with several key graphics which were sent to us
from Nick Laird of ShareLynx out of Australia. This is the second in a series
of charts that KWN will be releasing from Laird which give a visual snapshot of
what is really taking place in the gold and silver markets. We thank Laird for
sharing these fascinating charts with our global readers.
King World News note: The
gold chart below illustrates the total published repositories, mutual funds, and
ETFs, in terms of total number of gold ounces:..."
6 Shocking Gold Charts Depicting Stunning Western Decline
"The following gold charts reveal the true horror of the decline of Western influence and power, and the rise of Eastern economic dominance and power. These fascinating, yet disturbing, graphics were sent to us from Nick Laird of ShareLynx out of Australia. This is the third and final in a series of releases where KWN featured charts from Laird which gave a visual snapshot of what is really taking place in the gold and silver markets. We thank Laird for sharing these incredible charts with our global readers.
King World News note: The
chart below illustrates world gold reserves, and Asian reserves as a percentage
of world reserves:..."
Monday, December 24, 2012
Eight ways China’s military is catching up to the US
"By John Reed
Although the Pentagon has routinely dismissed some of China’s very publicly touted military advances as being decades behind the United States, they are still significant. Just because someone gets a new piece of tech later than you doesn’t mean that you will always be better at using it than they are. So, we thought we’d bring you a list of the eight most noteworthy military enhancements that China is making by buying, stealing and innovating:
Stealth jets
First up are China’s J-20 and J-31 stealthy-looking fighters. We call them “stealthy looking” because until more information is made public, we won’t know how well the jets mask their heat signatures, noise and electronic emissions — all critical elements of modern stealth that go beyond radar-evading shapes and radar-absorbent coatings. Nevertheless, China has developed two jets that appear stealthy. Chengdu Aircraft Industry Group’s large J-20 made its first flight in early 2011 and is thought to be either a high-speed interceptor, designed to fly out and shoot down incoming enemy bombers (similar to the famous MiG-25 Foxbat), or a stealthy bomber along the lines of the US F-111 Aardvark or the more recent F-15E Strike Eagle, meant to penetrate enemy defences and bomb bases and ships. One has to notice the similarities between the cockpit and nose section of the J-20 and the US Air Force’s F-22 Raptor.
Less than two years after the J-20 appeared, Shenyang Aviation Corporation unveiled China’s second stealthy fighter, the J-31. This jet is smaller than the J-20, and its fuselage bears a striking resemblance to the US’s F-22 and F-35 Joint Strike Fighter. (It has been widely reported that the computers of numerous defense contractors working on the F-35 program were hacked and information on the jet was stolen.) Some speculate that the J-31 will be used as a complement to the J-20 — similar to the role that F-16 Vipers play for F-15 Eagles or F-35s play for the F-22s. Others point to the twin wheels on the J-31’s nose landing gear as sign that it is being developed as a carrier-based fighter.
Aircraft carriers
Speaking of aircraft carriers . . . after decades of buying old British and Russian Cold War-era aircraft carriers and turning them into museums and theme hotels, China converted the hull of the incomplete 1980s vintage Soviet aircraft carrier Varyag into its first operational carrier: the Liaoning. Chinese investors purchased the ex-Varyag from Ukraine in 1998, claiming they would turn it into a casino. That obviously didn’t happen, and China spent much of the last decade completely modernizing the old hulk, installing new engines, electronic warfare gear, radars, defensive weapons, and modernized interior spaces (right down to the galleys). She took to sea for the first time in August 2011 and was commissioned into Chinese naval service in September 2012. The first carrier landings and takeoffs by Chinese fighters occurred in late November.
Interestingly, China’s first carrier fighter, the J-15, is a knockoff of another Soviet/Russian design, the Sukhoi Su-33. China may have purchased a partially completed Su-33 from Ukraine in 2001, after Russia refused to sell it the aircraft because China was reverse-engineering the very similar Sukhoi Su-27s that Russia was selling to China. (Got that?) While many are quick to point out that China is conducting its first carrier ops more than a century after Eugene Ely landed on the deck of the USS Pennsylvania, it’s worth noting that China plans to have at least three carriers by the middle of this decade. Still, the learning curve is extremely steep for carrier ops.
Spaceplanes
Next up is China’s very own spaceplane, the Shenlong or “Divine Dragon,” which first flew in January 2011 (roughly the same time the J-20 took its maiden flight). While there’s been plenty of speculation about the mission of the US Air Force’s super secret X-37B robot space shuttle, the United States isn’t alone in having a reusable spaceplane. What interests some China watchers most about the Divine Dragon is the fact that China flew such a craft less than a year after the United States did. (Granted, the United States could have done so much earlier, given its decades of experience with the Space Shuttle, which could easily have been flown as a large, unmanned spaceplane.) Speculation surrounds both the US and Chinese spaceplane programs, with observers suggesting the vehicles could be used for everything from spying on and destroying enemy satellities to simply repairing their own nation’s satellites.
Anti-satellite weapons
Of course, China doesn’t need fancy robot spaceplanes to destroy enemy satellites. In 2007, China became only the second nation (after the United States) to shoot down a satellite when it destroyed one of its own weather satellites using a modified version of the DF-21 ballistic missile. Needless to say, the United States and several other nations condemned the test, saying the debris created by the shot posed a serious risk to other nations’ satellites, spacecraft, and space stations. The incident also alarmed U.S. defense officials, who saw this development as evidence that Chinese military planners are preparing to knock out a major U.S. advantage in the event of war: its network of spy, communications, and navigation satellites. This worried some in the U.S. military so much that the Pentagon has begun working on terrestrial and airborne backups to its space systems, and the Air Force has even begun practicing operations without relying on satellites under the theme “a day without space.”
UAVs
Next up is China’s growing fleet of UAVs, which for now strongly resemble U.S. drones. Simply look at Shenyang’s Pterodactyl, a recently introduced armed drone that appears to be a blatant copy of General Atomics’s MQ-9 Reaper — the US Air Force’s premier armed drone. According to Chinese press accounts, Beijing is testing up to 10 different UAVs, including high-altitude drones that may have a strategic reconnaissance mission similar to the United States’s RQ-4 Global Hawk. Then there’s China’s fleet of small, stealthy-shaped models and miniature UAVs, which appear to be the precursors to full-size jet-powered stealth drones. (Remember, models of the design that eventually became the J-31 emerged years before we saw the production aircraft.)
Carrier killers
Remember the DF-21 China used to shoot down its satellite? Well, the ballistic missile has other uses as well. The missiles are designed to zoom into space and then rain down on US bases or moving ships, such as aircraft carriers, as far as 900 miles from their launch sites — hence the nickname “carrier killer” and the reason that the United States is sending many of its ballistic missile defense ships to the Pacific. China has been building a fleet of the missiles that is thought to have become operational in 2009 or 2010. And it is fielding the DF-21D in conjunction with a host of advanced radars, surveillance drones, spy satellites and so-called triple-digit surface-to-air missiles designed by Russia that are capable of shooting down most U.S. aircraft. All of these systems are part of China’s “area denial” strategy, aimed at keeping enemy ships and aircraft far from its shores.
Aegis Destroyers
The Chinese navy has been investing in everything from a new fleet of hovercraft that will land troops ashore during amphibious assaults to the new Type 052D class guided-missile destroyers, equipped with Aegis-style phased-array radars designed to track missiles and aircraft. (This is in addition to the older Type 052C class equipped with similar systems.) The Chinese navy is also fielding a new generation of nuclear missile-carrying submarines, the Type 094, designed to fire the JL-21 nuclear-tipped ballistic missile. Beijing’s navy is also beefing up its amphibious assault capabilities with the ZDB05 fighting vehicle. The ZDB05 — think of it as a swimming armored personnel carrier with guns — is capable of hitting 16 knots in the water and then using its 30mm cannon, 7.62mm machine gun, and antitank missiles to protect the five to seven infantrymen it can deliver to the beach. Could be useful if China wanted to stake a claim on some islands in the South China Sea.
Cyber
No conversation about China’s rapidly expanding military would be complete without mentioning the Chinese military’s focus on using an enemy’s own computer networks against it. Click here to read the US China Economic and Security Review Commission’s report on the country’s use of cyber to gain military advantage. While you’re at it, read the House Permanent Select Committee on Intelligence’s claim that Chinese telecommunications companies Huawei and ZTE, both of which have a large presence in the United States, may be doing the work of China’s military and intelligence agencies. China has numerous military units dedicated to corrupting the data in enemy computer networks or taking those networks out entirely.
As the Economic and Security Review Commission report notes: “PLA leaders have embraced the idea that successful warfighting is predicated on the ability to exert control over an adversary’s information and information systems, often preemptively. This goal has effectively created a new strategic and tactical high ground, occupying which has become just as important for controlling the battlespace as its geographic equivalent in the physical domain.”
WP-Bloomberg"
at http://thepeninsulaqatar.com/views/219134-eight-ways-china%E2%80%99s-military-is-catching-up-to-the-us.html
Although the Pentagon has routinely dismissed some of China’s very publicly touted military advances as being decades behind the United States, they are still significant. Just because someone gets a new piece of tech later than you doesn’t mean that you will always be better at using it than they are. So, we thought we’d bring you a list of the eight most noteworthy military enhancements that China is making by buying, stealing and innovating:
Stealth jets
First up are China’s J-20 and J-31 stealthy-looking fighters. We call them “stealthy looking” because until more information is made public, we won’t know how well the jets mask their heat signatures, noise and electronic emissions — all critical elements of modern stealth that go beyond radar-evading shapes and radar-absorbent coatings. Nevertheless, China has developed two jets that appear stealthy. Chengdu Aircraft Industry Group’s large J-20 made its first flight in early 2011 and is thought to be either a high-speed interceptor, designed to fly out and shoot down incoming enemy bombers (similar to the famous MiG-25 Foxbat), or a stealthy bomber along the lines of the US F-111 Aardvark or the more recent F-15E Strike Eagle, meant to penetrate enemy defences and bomb bases and ships. One has to notice the similarities between the cockpit and nose section of the J-20 and the US Air Force’s F-22 Raptor.
Less than two years after the J-20 appeared, Shenyang Aviation Corporation unveiled China’s second stealthy fighter, the J-31. This jet is smaller than the J-20, and its fuselage bears a striking resemblance to the US’s F-22 and F-35 Joint Strike Fighter. (It has been widely reported that the computers of numerous defense contractors working on the F-35 program were hacked and information on the jet was stolen.) Some speculate that the J-31 will be used as a complement to the J-20 — similar to the role that F-16 Vipers play for F-15 Eagles or F-35s play for the F-22s. Others point to the twin wheels on the J-31’s nose landing gear as sign that it is being developed as a carrier-based fighter.
Aircraft carriers
Speaking of aircraft carriers . . . after decades of buying old British and Russian Cold War-era aircraft carriers and turning them into museums and theme hotels, China converted the hull of the incomplete 1980s vintage Soviet aircraft carrier Varyag into its first operational carrier: the Liaoning. Chinese investors purchased the ex-Varyag from Ukraine in 1998, claiming they would turn it into a casino. That obviously didn’t happen, and China spent much of the last decade completely modernizing the old hulk, installing new engines, electronic warfare gear, radars, defensive weapons, and modernized interior spaces (right down to the galleys). She took to sea for the first time in August 2011 and was commissioned into Chinese naval service in September 2012. The first carrier landings and takeoffs by Chinese fighters occurred in late November.
Interestingly, China’s first carrier fighter, the J-15, is a knockoff of another Soviet/Russian design, the Sukhoi Su-33. China may have purchased a partially completed Su-33 from Ukraine in 2001, after Russia refused to sell it the aircraft because China was reverse-engineering the very similar Sukhoi Su-27s that Russia was selling to China. (Got that?) While many are quick to point out that China is conducting its first carrier ops more than a century after Eugene Ely landed on the deck of the USS Pennsylvania, it’s worth noting that China plans to have at least three carriers by the middle of this decade. Still, the learning curve is extremely steep for carrier ops.
Spaceplanes
Next up is China’s very own spaceplane, the Shenlong or “Divine Dragon,” which first flew in January 2011 (roughly the same time the J-20 took its maiden flight). While there’s been plenty of speculation about the mission of the US Air Force’s super secret X-37B robot space shuttle, the United States isn’t alone in having a reusable spaceplane. What interests some China watchers most about the Divine Dragon is the fact that China flew such a craft less than a year after the United States did. (Granted, the United States could have done so much earlier, given its decades of experience with the Space Shuttle, which could easily have been flown as a large, unmanned spaceplane.) Speculation surrounds both the US and Chinese spaceplane programs, with observers suggesting the vehicles could be used for everything from spying on and destroying enemy satellities to simply repairing their own nation’s satellites.
Anti-satellite weapons
Of course, China doesn’t need fancy robot spaceplanes to destroy enemy satellites. In 2007, China became only the second nation (after the United States) to shoot down a satellite when it destroyed one of its own weather satellites using a modified version of the DF-21 ballistic missile. Needless to say, the United States and several other nations condemned the test, saying the debris created by the shot posed a serious risk to other nations’ satellites, spacecraft, and space stations. The incident also alarmed U.S. defense officials, who saw this development as evidence that Chinese military planners are preparing to knock out a major U.S. advantage in the event of war: its network of spy, communications, and navigation satellites. This worried some in the U.S. military so much that the Pentagon has begun working on terrestrial and airborne backups to its space systems, and the Air Force has even begun practicing operations without relying on satellites under the theme “a day without space.”
UAVs
Next up is China’s growing fleet of UAVs, which for now strongly resemble U.S. drones. Simply look at Shenyang’s Pterodactyl, a recently introduced armed drone that appears to be a blatant copy of General Atomics’s MQ-9 Reaper — the US Air Force’s premier armed drone. According to Chinese press accounts, Beijing is testing up to 10 different UAVs, including high-altitude drones that may have a strategic reconnaissance mission similar to the United States’s RQ-4 Global Hawk. Then there’s China’s fleet of small, stealthy-shaped models and miniature UAVs, which appear to be the precursors to full-size jet-powered stealth drones. (Remember, models of the design that eventually became the J-31 emerged years before we saw the production aircraft.)
Carrier killers
Remember the DF-21 China used to shoot down its satellite? Well, the ballistic missile has other uses as well. The missiles are designed to zoom into space and then rain down on US bases or moving ships, such as aircraft carriers, as far as 900 miles from their launch sites — hence the nickname “carrier killer” and the reason that the United States is sending many of its ballistic missile defense ships to the Pacific. China has been building a fleet of the missiles that is thought to have become operational in 2009 or 2010. And it is fielding the DF-21D in conjunction with a host of advanced radars, surveillance drones, spy satellites and so-called triple-digit surface-to-air missiles designed by Russia that are capable of shooting down most U.S. aircraft. All of these systems are part of China’s “area denial” strategy, aimed at keeping enemy ships and aircraft far from its shores.
Aegis Destroyers
The Chinese navy has been investing in everything from a new fleet of hovercraft that will land troops ashore during amphibious assaults to the new Type 052D class guided-missile destroyers, equipped with Aegis-style phased-array radars designed to track missiles and aircraft. (This is in addition to the older Type 052C class equipped with similar systems.) The Chinese navy is also fielding a new generation of nuclear missile-carrying submarines, the Type 094, designed to fire the JL-21 nuclear-tipped ballistic missile. Beijing’s navy is also beefing up its amphibious assault capabilities with the ZDB05 fighting vehicle. The ZDB05 — think of it as a swimming armored personnel carrier with guns — is capable of hitting 16 knots in the water and then using its 30mm cannon, 7.62mm machine gun, and antitank missiles to protect the five to seven infantrymen it can deliver to the beach. Could be useful if China wanted to stake a claim on some islands in the South China Sea.
Cyber
No conversation about China’s rapidly expanding military would be complete without mentioning the Chinese military’s focus on using an enemy’s own computer networks against it. Click here to read the US China Economic and Security Review Commission’s report on the country’s use of cyber to gain military advantage. While you’re at it, read the House Permanent Select Committee on Intelligence’s claim that Chinese telecommunications companies Huawei and ZTE, both of which have a large presence in the United States, may be doing the work of China’s military and intelligence agencies. China has numerous military units dedicated to corrupting the data in enemy computer networks or taking those networks out entirely.
As the Economic and Security Review Commission report notes: “PLA leaders have embraced the idea that successful warfighting is predicated on the ability to exert control over an adversary’s information and information systems, often preemptively. This goal has effectively created a new strategic and tactical high ground, occupying which has become just as important for controlling the battlespace as its geographic equivalent in the physical domain.”
WP-Bloomberg"
at http://thepeninsulaqatar.com/views/219134-eight-ways-china%E2%80%99s-military-is-catching-up-to-the-us.html
Russian military presence in Syria poses challenge to US-led intervention
"Russian military advisers are manning some of Syria's more sophisticated air defences – something that would complicate any future US-led intervention, the Guardian has learned.
The advisers have been deployed with new surface-to-air systems and upgrades of old systems, which Moscow has supplied to the Assad regime since the Syrian revolution broke out 21 months ago.
The depth and complexity of Syria's anti-aircraft defences mean that any direct western campaign, in support of a no-fly zone or in the form of punitive air strikes against the leadership, would be costly, protracted and risky. The possibility of Russian military casualties in such a campaign could have unpredictable geopolitical consequences..."
at http://www.guardian.co.uk/world/2012/dec/23/syria-crisis-russian-military-presence
The advisers have been deployed with new surface-to-air systems and upgrades of old systems, which Moscow has supplied to the Assad regime since the Syrian revolution broke out 21 months ago.
The depth and complexity of Syria's anti-aircraft defences mean that any direct western campaign, in support of a no-fly zone or in the form of punitive air strikes against the leadership, would be costly, protracted and risky. The possibility of Russian military casualties in such a campaign could have unpredictable geopolitical consequences..."
at http://www.guardian.co.uk/world/2012/dec/23/syria-crisis-russian-military-presence
Banks Pledge Same Gold to Numerous People
"Big banks pledged the same mortgage to numerous people.
Similarly, big bullion banks borrow gold from central banks, and then rehypothecate it numerous times:..."
at http://www.washingtonsblog.com/2012/12/banks-pledge-same-gold-to-numerous-people.html
Similarly, big bullion banks borrow gold from central banks, and then rehypothecate it numerous times:..."
at http://www.washingtonsblog.com/2012/12/banks-pledge-same-gold-to-numerous-people.html
Currency Wars Expand Their Battlefield
"The price of gold has been in decline over the past few weeks. Despite the Federal Reserve launching a fourth round of quantitative easing, the precious metal can not seem to stem the heavy selling pressure. However, long-term investors are not likely to be deterred by the short-term price action as central banks around the world continue to engage in currency wars.
In a recent speech at the Economic Club of New York, Bank of England Governor Mervyn King predicted a continuation of currency wars next year. He explains, “I do think 2013 could be a challenging year in which we will, in fact, see a number of countries trying to push down their exchange rates. That does lead to concerns. Will other countries react in kind? What will happen? The policies pursued by countries for domestic purposes are leading to tension collectively.” He also adds, “There are limits to how far monetary policy can be effective in the very long run shifting spending for the future to today.”
At this point in the war, central banks are still trying to find their limits. Over the past six years, the maestros of the printing presses have injected the financial system with roughly $11 trillion and show no signs of slowing down. At its two-day policy board meeting, the Bank of Japan decided to increase its asset purchase program for the third time in only four months. The central bank effectively launched QE10 by expanding the monetary easing weapon by 10 trillion yen to 101 trillion yen. Including the latest move, the BOJ has expanded its quantitative easing program five times this year. “Japan’s economy is weakening further and is expected to remain weak for the time being,” explained the central bank, according to Reuters..."
at http://www.ibtimes.com/currency-wars-expand-their-battlefield-955824
In a recent speech at the Economic Club of New York, Bank of England Governor Mervyn King predicted a continuation of currency wars next year. He explains, “I do think 2013 could be a challenging year in which we will, in fact, see a number of countries trying to push down their exchange rates. That does lead to concerns. Will other countries react in kind? What will happen? The policies pursued by countries for domestic purposes are leading to tension collectively.” He also adds, “There are limits to how far monetary policy can be effective in the very long run shifting spending for the future to today.”
At this point in the war, central banks are still trying to find their limits. Over the past six years, the maestros of the printing presses have injected the financial system with roughly $11 trillion and show no signs of slowing down. At its two-day policy board meeting, the Bank of Japan decided to increase its asset purchase program for the third time in only four months. The central bank effectively launched QE10 by expanding the monetary easing weapon by 10 trillion yen to 101 trillion yen. Including the latest move, the BOJ has expanded its quantitative easing program five times this year. “Japan’s economy is weakening further and is expected to remain weak for the time being,” explained the central bank, according to Reuters..."
at http://www.ibtimes.com/currency-wars-expand-their-battlefield-955824
UK troops in Gulf part of move 'to encircle Iran'
"AS British PM Cameron eyes up defense co-operation with the UAE, wider British and US plans to increase their armed forces in the Gulf may be part of a geopolitical move to encircle Iran and expand NATO.
David Cameron, the Prime Minister, announced the possible deployment on Friday ahead of a visit to Oman where he is expected to conclude a 2.5 billion dollar deal with the Omani government for 12 Typhoon fighter jets.
These are the latest sales of a plane the Prime Minster has said he is “very keen” to promote. Saudi Arabia already has 72 of the aircraft and Cameron wants to set up a defense partnership with the United Arab Emirates which could involve an order for up to 60 more.
“What you are seeing specifically with the United Arab Emirates is not just a plan to sell Typhoon aircraft, but a big, significant defense co-operation, which could lead to more British troops stationed in the country,” Cameron told journalists at camp Bastion in Afghanistan on Friday.
“This is an exciting possibility for both countries to have a proper strategic defense relationship, a defense partnership, and I think that’s the way the world is going. People don’t just want to just buy equipment now, they want to have a proper industrial and defense partnership,” he continued.
However Patrick Henningsen, a geo-political analyst, told RT that one of the reasons for beefing up the British and American presence in the region could be to launch air attacks on Syria and ultimately Iran..."
at http://rt.com/news/uk-military-nato-gulf-691/
David Cameron, the Prime Minister, announced the possible deployment on Friday ahead of a visit to Oman where he is expected to conclude a 2.5 billion dollar deal with the Omani government for 12 Typhoon fighter jets.
These are the latest sales of a plane the Prime Minster has said he is “very keen” to promote. Saudi Arabia already has 72 of the aircraft and Cameron wants to set up a defense partnership with the United Arab Emirates which could involve an order for up to 60 more.
“What you are seeing specifically with the United Arab Emirates is not just a plan to sell Typhoon aircraft, but a big, significant defense co-operation, which could lead to more British troops stationed in the country,” Cameron told journalists at camp Bastion in Afghanistan on Friday.
“This is an exciting possibility for both countries to have a proper strategic defense relationship, a defense partnership, and I think that’s the way the world is going. People don’t just want to just buy equipment now, they want to have a proper industrial and defense partnership,” he continued.
However Patrick Henningsen, a geo-political analyst, told RT that one of the reasons for beefing up the British and American presence in the region could be to launch air attacks on Syria and ultimately Iran..."
at http://rt.com/news/uk-military-nato-gulf-691/
Roubini : Balkanization of Economic Activity, Banking systems, and public-debt markets continues
"Nouriel Roubini : ........Moreover, balkanization of economic activity, banking systems, and public-debt markets continues, as foreign investors flee the eurozone periphery and seek safety in the core. Private and public debt levels are high and possibly unsustainable. After all, the loss of competitiveness that led to large external deficits remains largely unaddressed, while adverse demographic trends, weak productivity gains, and slow implementation of structural reforms depress potential growth. CommentsTo be sure, there has been some progress in the eurozone periphery in the last few years: fiscal deficits have been reduced, and some countries are now running primary budget surpluses (the fiscal balance excluding interest payments). Likewise, competitiveness losses have been partly reversed as wages have lagged productivity growth, thus reducing unit labor costs, and some structural reforms are ongoing. - in project-syndicate"
at http://nourielroubini.blogspot.com/2012/12/roubini-balkanization-of-economic.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29
at http://nourielroubini.blogspot.com/2012/12/roubini-balkanization-of-economic.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29
Sunday, December 23, 2012
Russia and America’s New Arms Race
"If reports in Russian state media last Friday are accurate, the world may be on the brink of seeing a new intercontinental ballistic missile (ICBM) race, though of a conventional type rather than the nuclear arms race of the Cold War.
According to a report by RIA Novosti, Moscow may be developing a heavy-liquid-fuel, non-nuclear, precision-guided payload capability for a new class of ICBMs, which would give Russia near-global coverage similar to that sought by the U.S. under the controversial “Prompt Global Strike” program.
Using rhetoric that harkened back to the dark days of the Cold War, Russian Strategic Missile Forces Commander Colonel General Sergei Karakayev warned that Russia could develop its own strategic conventional ICBM force if the U.S. did not pull back from its efforts to create such a system, which gives the U.S. the ability to strike targets anywhere in the world within a matter of minutes.
In an apparent reference to U.S. and NATO plans to deploy missile defense systems in Europe, Karakayev said the new ICBM would be able to penetrate “any missile defense system likely to emerge in the near future.” Although the U.S. claims that the defense systems are targeted at a nuclear-armed Iran, Moscow contends that the deployment will also allow for the intercept of Russian ICBMs and thus undermine its deterrent capability.
Unlike current solid-fuel ICBMs, “the higher energy provided by liquid fuels gives it more varied and effective methods of countermeasures against global missile defense screens, including space-based elements of those systems,” Russian media quoted Karakayev as saying (“while less stable than solid fuel,liquid fuel propellants provide the highest energy per unit of fuel mass and variable thrust capability”).
Karakayev’s remarks could furthermore indicate breakthroughs in missile maneuverability, an important component in a missile’s ability to penetrate air defenses.
According to the Colonel General, the new missile will be deployed by 2018 and will be “largely superior” to its predecessors, including the Voyevoda (SS-18 “Satan”)..."
at http://stratrisks.com/geostrat/9935
According to a report by RIA Novosti, Moscow may be developing a heavy-liquid-fuel, non-nuclear, precision-guided payload capability for a new class of ICBMs, which would give Russia near-global coverage similar to that sought by the U.S. under the controversial “Prompt Global Strike” program.
Using rhetoric that harkened back to the dark days of the Cold War, Russian Strategic Missile Forces Commander Colonel General Sergei Karakayev warned that Russia could develop its own strategic conventional ICBM force if the U.S. did not pull back from its efforts to create such a system, which gives the U.S. the ability to strike targets anywhere in the world within a matter of minutes.
In an apparent reference to U.S. and NATO plans to deploy missile defense systems in Europe, Karakayev said the new ICBM would be able to penetrate “any missile defense system likely to emerge in the near future.” Although the U.S. claims that the defense systems are targeted at a nuclear-armed Iran, Moscow contends that the deployment will also allow for the intercept of Russian ICBMs and thus undermine its deterrent capability.
Unlike current solid-fuel ICBMs, “the higher energy provided by liquid fuels gives it more varied and effective methods of countermeasures against global missile defense screens, including space-based elements of those systems,” Russian media quoted Karakayev as saying (“while less stable than solid fuel,liquid fuel propellants provide the highest energy per unit of fuel mass and variable thrust capability”).
Karakayev’s remarks could furthermore indicate breakthroughs in missile maneuverability, an important component in a missile’s ability to penetrate air defenses.
According to the Colonel General, the new missile will be deployed by 2018 and will be “largely superior” to its predecessors, including the Voyevoda (SS-18 “Satan”)..."
at http://stratrisks.com/geostrat/9935
US to deploy newest navy ships, weapons to Asia-Pacific
"The United States plans to deploy some of its newest warships and other high-tech weapons to the Asia-Pacific as part of a strategic shift to the region, a US defense official said Wednesday.
The Pentagon will send P-8 submarine-hunting aircraft, cruise missiles, Virginia-class submarines, coastal combat ships and F-35 fighter jets to Asian ports and bases in coming years, the senior official told reporters
“What you’re seeing is part of a bigger effort, the Pacific theatre will get the newest weapons systems first,” he said, speaking on condition of anonymity.
The Pentagon has promoted a tilt to Asia after a decade of ground wars in Iraq and Afghanistan, reflecting concern over China’s growing military power and its assertive stance in territorial disputes with its neighbors.
The United States already plans to deploy more than half of its fleet to the Asia-Pacific and to station four littoral combat ships — speedy new vessels designed to operate near coastlines — for rotational deployments in Singapore.
Defense Secretary Leon Panetta said Tuesday that the stealthy F-35 Joint Strike Fighter, which is still in development, could be deployed at the Iwakuni air station in Japan’s Yamaguchi prefecture by 2017.
Washington also is providing Japan with another powerful X-band radar to bolster its missile defenses, a move announced in September..."
N. Korea develops missiles capable of reaching US – Seoul
"Pyongyang is developing missiles capable of reaching the US, South Korean officials have claimed. The allegations came as North Korean leader Kim Jong-Un called for the development of more powerful rockets after the successful launch of a satellite.
The North's launch of a three-stage Unha-3 rocket on December 12 prompted numerous allegations that the event was a secret missile test, rather than the purported satellite launch. South Korea has claimed that their analysis of the rocket's debris shows that Pyongyang may have developed technology allowing it to mount a nuclear warhead on a long-range missile.
"Based on our analysis of the material of Unha-3, North Korea had secured a range of more than 10,000 km if the warhead is 500 to 600 kg," a South Korean Defense Ministry official said on Sunday.
If the claims are true, North Korea has developed missiles capable of reaching the US..."
at http://rt.com/news/north-korea-rocket-missile-668/
The North's launch of a three-stage Unha-3 rocket on December 12 prompted numerous allegations that the event was a secret missile test, rather than the purported satellite launch. South Korea has claimed that their analysis of the rocket's debris shows that Pyongyang may have developed technology allowing it to mount a nuclear warhead on a long-range missile.
"Based on our analysis of the material of Unha-3, North Korea had secured a range of more than 10,000 km if the warhead is 500 to 600 kg," a South Korean Defense Ministry official said on Sunday.
If the claims are true, North Korea has developed missiles capable of reaching the US..."
at http://rt.com/news/north-korea-rocket-missile-668/
Bank of Japan Holdings of Japanese Government Bonds Exceeds 100 Trillion Yen for First Time
"Bloomberg reports BOJ Holdings of JGBs Exceed 100 Trillion Yen for First Time
A quadrillion is a number with 15 zeros. 1,000,000,000,000,000. Can that ever be paid back? How?
US has been running budget deficits exceeding $1 trillion for four straight years. What the heck is that other than Keynesian stimulus?
It has failed. But economists like Paul Krugman want more of it (please see Mish on Capital Account: "Time for Krugman to Leave Ivory Tower for Real World")..."
at http://globaleconomicanalysis.blogspot.com/2012/12/bank-of-japan-holdings-of-japanese.html#Y1y2bYTwcrW8ekXG.99
The Bank of Japan holdings of the government’s bonds exceeded 100 trillion yen ($1.2 trillion) for the first time, raising the risk that yields will jump on perceptions that it is financing public spending.If QE worked and fiscal stimulus worked, Japan would not have debt-to-GDP ratio of 230%. Japan's national debt now exceeds a quadrillion yen!
The central bank held 104.9 trillion yen of the debt at the end of September, 11.1 percent of all government bonds, a quarterly central bank report showed today in Tokyo. The BOJ said it was the highest on record. Bond holdings by foreign investors rose to a record 9.1 percent.
The BOJ yesterday expanded its asset purchase program for the fifth time this year, with half of the 10 trillion-yen increase to be spent on JGBs. Incoming Prime Minister Shinzo Abe wants more central-bank action to defeat deflation and has pledged fiscal stimulus to stoke growth, even as he’s constrained by the world’s largest public debt.
A quadrillion is a number with 15 zeros. 1,000,000,000,000,000. Can that ever be paid back? How?
US has been running budget deficits exceeding $1 trillion for four straight years. What the heck is that other than Keynesian stimulus?
It has failed. But economists like Paul Krugman want more of it (please see Mish on Capital Account: "Time for Krugman to Leave Ivory Tower for Real World")..."
at http://globaleconomicanalysis.blogspot.com/2012/12/bank-of-japan-holdings-of-japanese.html#Y1y2bYTwcrW8ekXG.99
The Real Reasons the Fed Announced QE 4
"On December 12, the US Federal Reserve surprised yet again by
announcing QE 4: a program through which it would purchase $45 billion of US
Treasuries every month.
Between this program and the Fed’s QE 3 Program announced in September, the Fed will be monetizing $85 billion worth of assets every month ($40 billion worth of Treasuries and $45 billion worth of Mortgage Backed Securities) ad infinitum.
Indeed, the Fed’s new policies are anchored to its goal of getting employment down to 6.5%. This means the Fed will buy these assets non-stop until employment gets down to 6.5%.
I’ve spoken to a number of people in the financial community as well as outside investors and no one seem to grasp the significance of this announcement.
First and foremost, QE does not create jobs. The UK has announced QE efforts equal to an amount greater than 20% of its GDP and has not seen any meaningful job growth. Similarly, Japan has announced nine rounds of QE for a combined effort equal to 20% of its GDP over the last 20 years and job growth remains dismal there.
Based on this, the Fed’s decision to anchor its QE efforts to employment is a bit hard to swallow. Indeed, I would argue that the Fed’s moves have very little to do with employment and instead are meant to address the following:
Similarly, the ECRI, which has proven a far better judge of the onset of US recessions than the NBER, has stated that the US likely slipped back into recession in September. Bernanke and the Fed have close ties to the ECRI. I believe they’re moving preemptively based on this announcement.
We get additional indication of things worsening in the US economy from the NFIB’s Small Business Optimism Index. This measure has entered an absolute free-fall, posting its single largest drop in over 30 years. To put this into perspective, this indicates that Small Business Owners are becoming less optimistic about the future of the economy faster now than they were after Lehman failed..."
at http://www.zerohedge.com/contributed/2012-12-23/real-reasons-fed-announced-qe-4
Between this program and the Fed’s QE 3 Program announced in September, the Fed will be monetizing $85 billion worth of assets every month ($40 billion worth of Treasuries and $45 billion worth of Mortgage Backed Securities) ad infinitum.
Indeed, the Fed’s new policies are anchored to its goal of getting employment down to 6.5%. This means the Fed will buy these assets non-stop until employment gets down to 6.5%.
I’ve spoken to a number of people in the financial community as well as outside investors and no one seem to grasp the significance of this announcement.
First and foremost, QE does not create jobs. The UK has announced QE efforts equal to an amount greater than 20% of its GDP and has not seen any meaningful job growth. Similarly, Japan has announced nine rounds of QE for a combined effort equal to 20% of its GDP over the last 20 years and job growth remains dismal there.
Based on this, the Fed’s decision to anchor its QE efforts to employment is a bit hard to swallow. Indeed, I would argue that the Fed’s moves have very little to do with employment and instead are meant to address the following:
- The US economy is nose-diving again and the Fed is acting preemptively.
- The Fed is trying to provide increased liquidity going into the fiscal cliff.
- The Fed is funding the US’s Government massive deficits.
Similarly, the ECRI, which has proven a far better judge of the onset of US recessions than the NBER, has stated that the US likely slipped back into recession in September. Bernanke and the Fed have close ties to the ECRI. I believe they’re moving preemptively based on this announcement.
We get additional indication of things worsening in the US economy from the NFIB’s Small Business Optimism Index. This measure has entered an absolute free-fall, posting its single largest drop in over 30 years. To put this into perspective, this indicates that Small Business Owners are becoming less optimistic about the future of the economy faster now than they were after Lehman failed..."
at http://www.zerohedge.com/contributed/2012-12-23/real-reasons-fed-announced-qe-4
The amount standing for deliveries in silver advances another 1.7 million oz/Silver OI advances/Iraq purchases official gold equal to 41 tonnes in last 3 months/Brazil purchases 14 tonnes with Russia adding 3 tonnes/
"Gold
closed up by $14.00 to finish the comex session and the week at
$1659.10
Silver closed up 53 cents at $30.14. No doubt all bourses were influenced by the cancelling of the Plan B vote by the Republicans in the House. Immediately it dawned on many that the USA may go over the fiscal cliff. Asian stocks plummeted but European stocks seemed to take the news in stride.
In physical news, we witnessed that Iraq is the latest country's central bank to purchase gold. In 3 months this nation has purchased 41 tonnes of gold. The Russians announced another 100,000 oz (3 tonnes ) of gold that they purchased to which they added to their official reserves. Finally Brazil continues on a torrid pace of acquiring gold. This month they added 14 tonnes of metal.
As far as silver is concerned the big raid orchestrated on Thursday did not see the OI (open interest) complex contract. It rose again as many investors are resolute in their conviction of the value of silver and they seem immune to the crooked antics of the bankers. What is more fascinating is the fact that the number of ounces of silver standing for December has increased every day from the 6th of December onward including Friday. Actually on Friday we saw the biggest jump this month in ounces standing.... a whopping 1.7 million oz. We are also witnessing many round number of ounces of silver being either deposited or withdrawn and it seems to me that the comex is settling in paper and not metal.
No wonder we hear that investors do not want to have JPMorgan or HSBC settle upon them with metal and they seek non comex vaults. Strange things happening inside the comex silver vaults. We will go over these and other stories but first..."
at http://harveyorgan.blogspot.com/2012/12/the-amount-standing-for-deliveries-in.html
Silver closed up 53 cents at $30.14. No doubt all bourses were influenced by the cancelling of the Plan B vote by the Republicans in the House. Immediately it dawned on many that the USA may go over the fiscal cliff. Asian stocks plummeted but European stocks seemed to take the news in stride.
In physical news, we witnessed that Iraq is the latest country's central bank to purchase gold. In 3 months this nation has purchased 41 tonnes of gold. The Russians announced another 100,000 oz (3 tonnes ) of gold that they purchased to which they added to their official reserves. Finally Brazil continues on a torrid pace of acquiring gold. This month they added 14 tonnes of metal.
As far as silver is concerned the big raid orchestrated on Thursday did not see the OI (open interest) complex contract. It rose again as many investors are resolute in their conviction of the value of silver and they seem immune to the crooked antics of the bankers. What is more fascinating is the fact that the number of ounces of silver standing for December has increased every day from the 6th of December onward including Friday. Actually on Friday we saw the biggest jump this month in ounces standing.... a whopping 1.7 million oz. We are also witnessing many round number of ounces of silver being either deposited or withdrawn and it seems to me that the comex is settling in paper and not metal.
No wonder we hear that investors do not want to have JPMorgan or HSBC settle upon them with metal and they seek non comex vaults. Strange things happening inside the comex silver vaults. We will go over these and other stories but first..."
at http://harveyorgan.blogspot.com/2012/12/the-amount-standing-for-deliveries-in.html
Roubini : The drag from the Periphery was now hitting he Eurozone’s core
"Nouriel Roubini : “Unless we restore economic growth in five years’ time this will become financially, socially and politically unsustainable. Europe has not spent enough time talking about what are the intelligent and creative ways to jump-start economic growth in the periphery and the core.”He pointed to potential infrastructure expenditure, even in Germany, and added the Eurozone’s periphery needed the euro to weaken “10% to 20%” against major trading partners’ currencies, whereas Germany “could live with the euro at 130”.He said the drag from the periphery was now hitting he Eurozone’s core, and it is now “quite clear France, for example, is entering recession and next year there will be a degree of debt consolidation [there].” - in investmenteurope"
at http://nourielroubini.blogspot.com/2012/12/roubini-drag-from-periphery-was-now.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29
at http://nourielroubini.blogspot.com/2012/12/roubini-drag-from-periphery-was-now.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29
Maguire - Shocking $2.89 Premium For Physical Silver In China
"...Maguire also added: “One
of the things I wanted to talk to you about today was something I saw in
Shanghai early this morning. Eric, I had to double-check, in fact I had to
triple-check. We’re talking about the kind of divergence (in the physical
market) now that’s unprecedented.
Today I looked at the opening premiums and there was
a $2.89 disparity in silver. I’m not talking gold. When spot silver was
trading in London at $29.61, silver actually traded at $32.50 (in Shanghai).
If you take an equivalent Comex contract, and I
realize spot isn’t Comex, but if you take an equivalent 5,000 ounce Comex
contract, that equates to a $14,430 premium per contract. I mean it’s
ludicrous. There are reasons why you may or may not have a premium in Shanghai,
but not to that extreme.
Shanghai (softened but) still closed at a $6,100
premium to equivalent Comex contracts. So what we’re saying here is that the
divergence has now become ridiculous. I mean these high and low closing
premiums literally illustrate the massive divergence between the paper market
(and the physical market).
And, Eric, this is on an exchange (Shanghai) that
within the next two years is actually going to become the world hub of physical
gold and silver trading. It’s going to have its own fixes. So I think they
(the manipulators) really pushed it a little too far today.
You’ve (also) got the short-selling algorithms, and
they have absolutely no or little if any input relating to the physical market.
So if this price turns against them, they are not going to understand why it has
turned. They won’t understand the fact that central banks have been buying 6,
12, 20 (tons of gold), and I still haven’t even got the numbers for today, but
there was very large physical take-up (today as well).
So when it (price) turns, they are not going to
understand what’s happened, they will just follow it. But the concern to the
bullion banks (here) is they are fully aware of the physical drain, and I
absolutely guarantee you that they are going long on this final stage of the
selloff.
Price up to now has really been assisted by (US)
government defense of the dollar in the over-the-counter FX gold markets, but
the central banks (out of the East) and the bullion banks are (now) jointly
buying this discount.”
Celente: This Will Usher In A Massive Financial Collapse in 2013
"Today top trends forecaster Gerald Celente spoke with King World
News about what he believes will usher in a massive financial collapse in 2013.
Celente also discussed the recent gold and silver smash, and told KWN he is
buying physical gold and silver right now. Celente is the founder of Trends
Research, and the man many consider to be the top trends forecaster in the
world.
Eric King: “Gerald, I
wanted to take a look at this upcoming issue you have coming out. (In here it
says,) ‘Bonds Away! The bond bomb is ready to explode ... threatening to make
the real estate and dot-com bubbles, and even the Great Recession, look like
market corrections.’ Can you talk about that?”
Celente: “Yes. This piece
is being penned by Dr. Paul Craig Roberts, the former Assistant Treasury
Secretary under Ronald Reagan. And he is convinced that the bond bubble is
about to burst. This cannot continue to go on the way it is. Everyone knows
that the whole game is rigged, and so is this....
“The whole game is rigged. It’s ready to go down, and Dr. Paul Craig Roberts
believes it’s ‘Bonds Away’ in 2013 as the bond bubble explodes and brings about
a financial disaster even worse than the Great Depression.”
Friday, December 21, 2012
US Intelligence Suspects Foreign Nations Of Using Corporate Takeovers To Get At Critical Tech
"Foreign nations may be using a "coordinated strategy" of corporate takeovers to access critical U.S. technology, according to a report highlighted by the Financial Times from the Committee On Foreign Investment in the United States:
The details behind that assertion are classified, but the report gives some examples of what could serve as evidence:
at http://www.businessinsider.com/foreign-nations-acquiring-key-us-companies-2012-12#ixzz2FiXrGM6v
Based on its assessment of transactions identified by CFIUS for purposes of this report, the U.S. Intelligence Community (“USIC”) judges with moderate confidence that there is likely a coordinated strategy among one or more foreign governments or companies to acquire U.S. companies involved in research, development, or production of critical technologies for which the United States is a leading producer. Information supporting this assessment is provided in the classified version of this report. Indications of other coordinated strategies may go unobserved due to limitations on intelligence collection, or may be hidden or misconstrued because of foreign denial and deception activities.
This is a big turnaround from last year's report, which judged it "unlikely" that such a coordinated strategy existed. The details behind that assertion are classified, but the report gives some examples of what could serve as evidence:
- A pattern of actual or attempted acquisitions of U.S. firms by foreign entities
- Evidence that specific completed or attempted acquisitions of companies with critical technologies had been ordered by foreign governments or foreign government-controlled firms
- The provision of narrowly targeted incentives by foreign governments or foreign-controlled firms (e.g., grants, concessionary loans, or tax breaks), especially those that appear to market observers to be disproportionately generous, to acquire U.S. firms with critical technologies..."
at http://www.businessinsider.com/foreign-nations-acquiring-key-us-companies-2012-12#ixzz2FiXrGM6v
We’re Going to be in a New Recession-John Williams
"Economist John Williams thinks the economy is in worse shape than most people think. In 2013, Williams predicts, “As this goes forward, you’re going to see we’re going to be in a new recession.” The Federal Reserve announced last week it is now printing a total of $85 billion every month to reduce unemployment and stimulate the economy. Williams says, “That’s nonsense. . . . There’s nothing they can do to stimulate the economy.” Williams has long contended the Fed is really just using the weak economy to continue to prop up the banking system. Williams says, “If the Fed wasn’t doing what it’s doing . . . I’d presume you’d be on the road to a banking system collapse. The banking system is still in trouble.” Williams warns the “open-ended” printing of $85 billion a month “. . . will be part of what will eventually become hyperinflation.” And if there is no deal on the so-called “fiscal cliff,” then Williams expects “heavy selling pressure on the U.S. dollar.” Join Greg Hunter as he goes One-on-One with John Williams of Shadowstats.com..."
at http://usawatchdog.com/were-going-to-be-in-a-new-recession-john-williams/
at http://usawatchdog.com/were-going-to-be-in-a-new-recession-john-williams/
Whistleblower: CBs Buying, Who’s Supplying & Is Paulson Selling
"On the
heels of another smash in the gold and silver markets, today renowned silver
market whistleblower Andrew Maguire addressed rumors that Paulson is being
forced to sell his gold. Maguire also spoke with King World News about the
amount of tonnage that central banks have been buying over the past few days and
who he suspects is actually supplying the gold.
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/20_Whistleblower__CBs_Buying,_Whos_Supplying_%26_Is_Paulson_Selling.html
This
is the third in a series of interviews with Maguire lifting the curtain on what
is going on behind the scenes in the gold and silver war.
Eric King: “Andrew, let’s
just look at today, and we’re speaking on a Thursday, but what kind of tonnage
or offtake are we seeing in these markets right now by the central
banks?”
Maguire: “I can say that
over the last few days we’ve seen order sizes of 6 tons, 12 tons, and today I’m
still getting reports but it looks like between 20 and 25 tons (of physical gold
being purchased by central banks)...
“People might ask, “How is that possible (when) we
(the price) declined into the fix?’ It’s possible because, as we described
earlier, it’s really due to massive shorting in the over-the-counter markets by
(the US) government in defense of the dollar. The resulting price is the price
(where gold can be purchased).
Where is the gold coming from? My best opinion on
that would be that the Bank for International Settlements (the BIS) is very
likely the only source of enough physical leased metal that could be supplied to
actually meet these deliveries. Because these deliveries are not cash
settlements on the books of an LBMA bullion bank.
These are actually physical deliveries that are
exiting the LBMA system, (being) re-melted into kilo bars, and they are going to
be vaulted outside of the LBMA system (in the East). So to me it’s a
desperation act.”
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/20_Whistleblower__CBs_Buying,_Whos_Supplying_%26_Is_Paulson_Selling.html
US Debt & Liabilities Set To Increase A Staggering $70 Trillion
"...Greyerz also added: “U.S.
debt is increasing by approximately $1.5 trillion per year. If you add to that
the increase in unfunded liabilities, you get an increase, only in 2012, of $7
trillion.
So total debt and unfunded liabilities increase in
2012 by (a staggering) $7 trillion. If you multiply $7 trillion by ten years
you get to $70 trillion. And you can see that the whole fiscal cliff debate is
about a measly $1.2 trillion over ten years, against a potential increase in the
total debt in the US of $70 trillion.
So it is so sad to see this desperate situation when
politicians worldwide refuse to face up to the real catastrophic state the world
is in. Instead, they are just tinkering with the edges.”
Monday, December 17, 2012
U.S. arms to Gulf allies hint of strategy
"The largest infusion of U.S. arms ever for Persian Gulf allies has shifted more toward offensive weapons at the same time that President Obama’s military strategy says it will rely more on allied firepower in any future war.
The only war on the horizon for Saudi Arabia, the United Arab Emirates and four other Gulf coalition partners would be with nearby Iran.
Noting U.S. sales of air defense-penetrating F-16s and F-15s, satellite-guided bombs and a pending order for ordnance that can burrow deep and then explode, analysts say Gulf nations could participate in a U.S. air campaign to strike Iran’s nuclear sites.
These American-armed nations could either be part of an overall war plan or be forced to enter the battle once Iran counterattacks, as expected, with missile launches.
“The thinking certainly is that Iran would retaliate against the Gulf states, or at least against the facilities in the Gulf that we use,” said Kenneth Katzman, a Middle East analyst at the Congressional Research Service. “That would certainly draw the Gulf states into any conflict that went on. The Gulf might become embroiled in this conflict, and I think they’ve calculated it’s best to be prepared.”
There has been public focus on the U.S. military buildup in the Gulf — more aircraft carriers, warplanes and strike groups studded with Tomahawk cruise missiles; more minesweeping ships; a visit by Air Force F-22 stealth jets; and thousands of Army soldiers positioned in Kuwait.
But just as methodically, the George W. Bush and Obama administrations have approved a series of large arms sales that are giving some oil-rich Gulf states offensive capabilities that would make Iran think twice about an attack..."
at http://www.washingtontimes.com/news/2012/dec/16/us-arms-to-gulf-allies-hint-of-strategy/#ixzz2FLKdmRkz
The only war on the horizon for Saudi Arabia, the United Arab Emirates and four other Gulf coalition partners would be with nearby Iran.
Noting U.S. sales of air defense-penetrating F-16s and F-15s, satellite-guided bombs and a pending order for ordnance that can burrow deep and then explode, analysts say Gulf nations could participate in a U.S. air campaign to strike Iran’s nuclear sites.
These American-armed nations could either be part of an overall war plan or be forced to enter the battle once Iran counterattacks, as expected, with missile launches.
“The thinking certainly is that Iran would retaliate against the Gulf states, or at least against the facilities in the Gulf that we use,” said Kenneth Katzman, a Middle East analyst at the Congressional Research Service. “That would certainly draw the Gulf states into any conflict that went on. The Gulf might become embroiled in this conflict, and I think they’ve calculated it’s best to be prepared.”
There has been public focus on the U.S. military buildup in the Gulf — more aircraft carriers, warplanes and strike groups studded with Tomahawk cruise missiles; more minesweeping ships; a visit by Air Force F-22 stealth jets; and thousands of Army soldiers positioned in Kuwait.
But just as methodically, the George W. Bush and Obama administrations have approved a series of large arms sales that are giving some oil-rich Gulf states offensive capabilities that would make Iran think twice about an attack..."
at http://www.washingtontimes.com/news/2012/dec/16/us-arms-to-gulf-allies-hint-of-strategy/#ixzz2FLKdmRkz
Moscow fires warning shot across bow of US naval-based ABM
"A top Russian official says a US missile defense system near Russia’s border is strategically destabilizing and may prompt an arms race.
Speaking on the threat of mobile, naval-based elements of the US missile defense system “suddenly appearing” on Russia’s coastline, Deputy Prime Minister Dmitry Rogozin said such an event would trigger “the harshest reaction from Russia."
"We must consider the effective protection of our strategic nuclear forces," Rogozin said in an interview with the magazine Voyenny Parade (‘Military Parade’).
Rogozin, while not elaborating on what Russia’s response would be, noted that Russia is taking definite steps to counter American ships “equipped with the Aegis integrated naval weapons system.”
Russia has warned its US and NATO partners on numerous occasions that unless the two sides can reach an acceptable agreement over NATO plans to unilaterally build a missile defense shield in Eastern Europe, another arms race is inevitable..."
at http://rt.com/politics/russia-us-abm-moscow-rogozin-186/
Speaking on the threat of mobile, naval-based elements of the US missile defense system “suddenly appearing” on Russia’s coastline, Deputy Prime Minister Dmitry Rogozin said such an event would trigger “the harshest reaction from Russia."
"We must consider the effective protection of our strategic nuclear forces," Rogozin said in an interview with the magazine Voyenny Parade (‘Military Parade’).
Rogozin, while not elaborating on what Russia’s response would be, noted that Russia is taking definite steps to counter American ships “equipped with the Aegis integrated naval weapons system.”
Russia has warned its US and NATO partners on numerous occasions that unless the two sides can reach an acceptable agreement over NATO plans to unilaterally build a missile defense shield in Eastern Europe, another arms race is inevitable..."
at http://rt.com/politics/russia-us-abm-moscow-rogozin-186/
Systemic risks in global banking: What available data can tell us and what more data are needed?
"...Conclusions
Even with improved aggregate banking statistics and better bank-level data, other dimensions of systemic risk will likely remain inadequately covered. While better coverage of banks is a top priority, non-banks, including pension funds, insurance companies and large multinational corporations, can also be systemically important. This suggests going forward including not only such non-bank institutions in the counterparty sector breakdown of banks’ exposures, but also bringing large non-bank firms under the data gathering umbrella."
at http://www.voxeu.org/article/systemic-risks-global-banking-what-available-data-can-tell-us-and-what-more-data-are-needed
Even with improved aggregate banking statistics and better bank-level data, other dimensions of systemic risk will likely remain inadequately covered. While better coverage of banks is a top priority, non-banks, including pension funds, insurance companies and large multinational corporations, can also be systemically important. This suggests going forward including not only such non-bank institutions in the counterparty sector breakdown of banks’ exposures, but also bringing large non-bank firms under the data gathering umbrella."
at http://www.voxeu.org/article/systemic-risks-global-banking-what-available-data-can-tell-us-and-what-more-data-are-needed
We Are Headed To A Historic Collapse Of The Financial System
"...“The monetary Blue Angels of our day have closed
their formation. With our Federal Reserve in the lead plane, the major central
banks have pulled into a tight formation with the Fed. We see such feats of
daring do as interest rates being driven to zero.
We see currencies, countries and institutions that
should have failed by now being supported by the unlimited printing of money.
Budgets and debt ceilings are passé. Crises come and go. Fiscal cliffs, debt
ceilings and the like come to the fore. Nothing is ever resolved, but deadlines
are moved and new plans for resolution are just around the corner.
While the central bankers might see themselves as
Blue Angel equivalents, the reality is that they are engaged in precision
balloon acrobatics. That image might trigger a smile, and even thought we know
that balloons cannot be flown with any precision, it still represents an
appropriate analogy. The balloons do rise, but chaotically. The hot air that
fills the balloons is the electronic printing press.
The precision monetary team is floating countries,
companies and markets. There are a few balloons such as the gold, silver and
oil markets that tag along, much to their dismay. Releasing hot air from those
balloons is considered a necessity to keep all eyes focused on the “right”
balloons. Gold and silver balloons tend to rise at a much faster rate under
these circumstances throughout history, so great effort must be made to tether
them as best is possible..
Nobody knows how high the central bank driven
balloons can go. The supply of hot air once appeared to be limitless. Perhaps
it is. At some altitude, however, a vessel under pressure will pop in the
absence of the counter force of atmospheric pressure. To the central bankers,
they are floating us skyward to a new reality. It is more likely that our fate
will be the black emptiness of outer space or a quick return to earth as the
balloons pop. Only time will tell..."
John Embry - Chinese Demand For Silver Has Exploded
"...“Right now there is infinitely more demand than there
is supply in the silver market. I was just reading a study talking about how
much the Chinese demand for silver has exploded in the last ten years. Chinese
demand for silver has literally skyrocketed.
When you put that together with everything else
that’s been going on in the rest of the world, and the fact that inventories
have declined dramatically, you can only arrive at one conclusion which is the
supply of silver is really limited. The question arises, where are they getting
enough in the near-term to carry out their paper shenanigans? That I can’t seem
to answer.”
Sunday, December 16, 2012
The Gas Triangle: China, Russia, and Europe
"The competition for Caspian gas supplies is usually seen as a contest between Europe andRussia. China, although acknowledged to play a role, is generally seen to be a marginal player. But at a recent Chatham House event titled Rebalancing the World Energy Markets: The Role of China, Russia and Central Asia it was underscored that Chinese energy demand will have a profound effect on energy markets: in Russia, Central Asia, and Europe.
Gas, in particular, is likely to become increasingly important in China’s energy mix. Even though, as one speaker put it, it could “never win a straight fight” on cost compared to coal, and remains expensive domestically, gas has risen from 2.4% in 2000 to 4.3% in 2010 and is targeted to reach 8.3% in 2015.
This takes place in the context of steadily rising overall demand over the next 20 years, although speakers varied on the expected scale of the demand. One estimate put 2020 (conventional) gas consumption at 230bcm, whilst another suggested 200bcm; one 2035 estimate suggested 550bcm whilst a 2030 baseline estimate was 390bcm, with 500bcm as a maximum estimate. In the Chinese context 30bcm here and there is fairly inconsequential – not so for Russia or Central Asia looking to build new pipelines..."
at http://stratrisks.com/geostrat/9787
Gas, in particular, is likely to become increasingly important in China’s energy mix. Even though, as one speaker put it, it could “never win a straight fight” on cost compared to coal, and remains expensive domestically, gas has risen from 2.4% in 2000 to 4.3% in 2010 and is targeted to reach 8.3% in 2015.
This takes place in the context of steadily rising overall demand over the next 20 years, although speakers varied on the expected scale of the demand. One estimate put 2020 (conventional) gas consumption at 230bcm, whilst another suggested 200bcm; one 2035 estimate suggested 550bcm whilst a 2030 baseline estimate was 390bcm, with 500bcm as a maximum estimate. In the Chinese context 30bcm here and there is fairly inconsequential – not so for Russia or Central Asia looking to build new pipelines..."
at http://stratrisks.com/geostrat/9787
World risks fresh credit bubble, Switzerland’s BIS warns
"Some asset prices appeared highly valued in a historical context relative to indicators of their riskiness,” said the bank in its quarterly report.
Yields on morgtage bonds have fallen to the lowest level ever recorded. Spreads on corporate debt have narrowed to the wafer thin margins of 2007, even though default rates are currently three times higher than they were then for junk bonds and twice as high for investment-grade companies.
The venerable Swiss-based institution – almost alone in warning of a global debt crisis in the build-up to the Great Recession – said it is rare for markets to gather steam at a time when the major forecasters are turning gloomy.
The International Monetary Fund and the OECD have downgraded their outlooks for 2012 and 2013, with sharp cuts for much of Europe as well as for Brazil, China, and India.
“Unusually, equity and fixed income gains coincided with a weakening of the global economic outlook. In the past, falling growth forecasts have usually been associated with rising expected default rates and higher bond yields,” it said.
The anomaly is doubly strange given the spate of profit warnings by companies on both sides of the Atlantic. The BIS said earnings expectations on Wall Street have dropped “particularly sharply” with an “unusually high proportion” of companies downgrading forecasts, yet equity prices have risen..."
at http://stratrisks.com/geostrat/9795
at http://stratrisks.com/geostrat/9795
Breaking Point: 17 US Warships And Thousands of US Soldiers Near Syrian Shore
"The U.S. aircraft carrier “Dwight D Eisenhower” has arrived off the shores of Syria.
The multipurpose nuclear attack carrier the U.S.S. Dwight D Eisenhower is leading the naval assault group which has arrived in the eastern Mediterranean.
It is in close proximity to the coast of Syria. On board the ship are 70 fighter-bombers and a total 8,000 US servicemen.
The Dwight D Eisenhower joined the amphibious assault helicopter carrier Iwo Jima, which has been in the area for almost two weeks.
In all there are now 17 American warships off the Syrian coast..."
at http://stratrisks.com/geostrat/9799
The multipurpose nuclear attack carrier the U.S.S. Dwight D Eisenhower is leading the naval assault group which has arrived in the eastern Mediterranean.
It is in close proximity to the coast of Syria. On board the ship are 70 fighter-bombers and a total 8,000 US servicemen.
The Dwight D Eisenhower joined the amphibious assault helicopter carrier Iwo Jima, which has been in the area for almost two weeks.
In all there are now 17 American warships off the Syrian coast..."
at http://stratrisks.com/geostrat/9799
Global Fire Sale: China’s accelerating overseas buys raise fears
"China’s biggest overseas takeover, the $15 billion purchase of Canada’s Nexen, is a huge step in Beijing’s push for foreign acquisitions — but its drive to secure resources and markets is causing unease.
The victory is particularly sweet for CNOOC after it was forced to withdraw its bid for another North American firm, US oil and gas producer Unocal, seven years ago following an outcry in Washington.
For the Chinese government, the deal is an affirmation of its decade-old drive to encourage companies to go abroad to build international players and secure supplies of energy and raw materials to keep the economy humming.
“It’s a milestone to show Chinese companies are getting more sophisticated when it comes to overseas acquisitions,” said Edward Tse, chairman for Greater China for management consulting firm Booz & Company.
“This case will help the Chinese go to other countries, in particular developed countries.”
Chinese firms have become more active in mergers and acquisitions since the global financial crisis that began in 2008, as economic distress has thrown up bargains around the world.
Between 2005 and 2011, the number of China’s overseas acquisitions tripled to 177 and jumped five-fold by value to $63 billion, according to law firm Squire Sanders and intelligence service Mergermarket.
But Chinese state media used the Nexen success to blast unspecified “Western powers” for alleged unfairness and protectionism.
“Chinese investors have been discredited by some Western governments and media as a group of cash-rich predators and spies,” the official Xinhua news agency said in a commentary.
“Western powers that harbour China-investment phobias should first drop their prejudice towards Chinese companies and let their entrepreneurs, not politicians, decide the business deals.”
A US congressional committee said in October that Chinese telecom manufacturers Huawei and ZTE should be excluded from government contracts because their equipment could be used to spy.
CNOOC offered a premium for Calgary-based Nexen, pledged to keep management in place and vowed transparency — helped by a possible listing on the Toronto stock exchange — to smooth the way for the acquisition..."
at http://stratrisks.com/geostrat/9813
This file photo shows a general view of the Chinese energy giant CNOOC and Anglo-Dutch firm Shell petrochemical plant in Daya Bay, in southern China, pictured on July 28, 2009. Chinese firms have become more active in mergers and acquisitions since the global financial crisis that began in 2008, as economic distress has thrown up bargains around the world.
Ottawa last week approved Chinese state-owned energy giant CNOOC’s purchase of the oil and gas company, despite political opposition in Canada.The victory is particularly sweet for CNOOC after it was forced to withdraw its bid for another North American firm, US oil and gas producer Unocal, seven years ago following an outcry in Washington.
For the Chinese government, the deal is an affirmation of its decade-old drive to encourage companies to go abroad to build international players and secure supplies of energy and raw materials to keep the economy humming.
“It’s a milestone to show Chinese companies are getting more sophisticated when it comes to overseas acquisitions,” said Edward Tse, chairman for Greater China for management consulting firm Booz & Company.
“This case will help the Chinese go to other countries, in particular developed countries.”
Chinese firms have become more active in mergers and acquisitions since the global financial crisis that began in 2008, as economic distress has thrown up bargains around the world.
Between 2005 and 2011, the number of China’s overseas acquisitions tripled to 177 and jumped five-fold by value to $63 billion, according to law firm Squire Sanders and intelligence service Mergermarket.
But Chinese state media used the Nexen success to blast unspecified “Western powers” for alleged unfairness and protectionism.
“Chinese investors have been discredited by some Western governments and media as a group of cash-rich predators and spies,” the official Xinhua news agency said in a commentary.
“Western powers that harbour China-investment phobias should first drop their prejudice towards Chinese companies and let their entrepreneurs, not politicians, decide the business deals.”
A US congressional committee said in October that Chinese telecom manufacturers Huawei and ZTE should be excluded from government contracts because their equipment could be used to spy.
CNOOC offered a premium for Calgary-based Nexen, pledged to keep management in place and vowed transparency — helped by a possible listing on the Toronto stock exchange — to smooth the way for the acquisition..."
at http://stratrisks.com/geostrat/9813
U.S. military to boost its forces in the Philippines; China tells army to be prepared
"U.S. and Philippine officials are expected to agree on an increase in the number of U.S. military ships, aircraft and troops rotating through the Philippines, Filipino officials said, as tensions simmer with China over its maritime claims.
Though he made no direct reference to the territorial disputes, new Chinese Communist Party chief Xi Jinping urged his military to prepare for a struggle. He made the comments during his visit to a South China Sea fleet ship in southern Guangdong province, but did not name any potential aggressor.
Senior U.S. and Philippine officials met on Wednesday in Manila to discuss strengthening security and economic ties at a time of growing tension over China’s aggressive sovereignty claims over vast stretches of the disputed South China Sea..."
at http://stratrisks.com/geostrat/9826
Though he made no direct reference to the territorial disputes, new Chinese Communist Party chief Xi Jinping urged his military to prepare for a struggle. He made the comments during his visit to a South China Sea fleet ship in southern Guangdong province, but did not name any potential aggressor.
Senior U.S. and Philippine officials met on Wednesday in Manila to discuss strengthening security and economic ties at a time of growing tension over China’s aggressive sovereignty claims over vast stretches of the disputed South China Sea..."
at http://stratrisks.com/geostrat/9826
Controversy over Korean spy agency’s alleged election intervention
"The ruling Saenuri party and main opposition Democratic United Party remain at loggerheads over whether state-run intelligence agency tried to illegally intervene in the presidential election slated for Dec. 19.
On Tuesday, the DUP claimed that a National Intelligence Service employee was posting slanderous comments about the party’s presidential candidate Moon Jae-in on the Internet.
“Recently we received a tip-off that NIS-affiliated psychosomatic information team had been reorganized into psychosomatic information bureau, and the members of the bureau had been working to make sure Moon loses in the upcoming election,” said DUP spokesman Jin Seong-jun.
Jin claimed a 29-year-old female employee surnamed Kim had been working for the past three months to “slander opposition candidates and manipulate public opinion” from a studio apartment in Yeoksam-dong, southern Seoul..."
at http://stratrisks.com/geostrat/9833
On Tuesday, the DUP claimed that a National Intelligence Service employee was posting slanderous comments about the party’s presidential candidate Moon Jae-in on the Internet.
“Recently we received a tip-off that NIS-affiliated psychosomatic information team had been reorganized into psychosomatic information bureau, and the members of the bureau had been working to make sure Moon loses in the upcoming election,” said DUP spokesman Jin Seong-jun.
Jin claimed a 29-year-old female employee surnamed Kim had been working for the past three months to “slander opposition candidates and manipulate public opinion” from a studio apartment in Yeoksam-dong, southern Seoul..."
at http://stratrisks.com/geostrat/9833
EU leaders vow to boost Europe's defence capabilities
" European Union leaders pledged on Friday to plug the gaps in Europe's military capabilities and strengthen its arms industry as austerity budgets threaten to damage both the continent's military capabilities and its weapons makers.
The leaders also pledged at a Brussels summit to try to boost the EU's role in tackling international crises now that the U.S. military focus is shifting to Asia, creating demand for a bigger EU security presence in Africa and the Mediterranean.
"Current financial constraints highlight the urgent necessity to strengthen European cooperation in order to develop military capabilities and fill the critical gaps, including those identified in recent operations," they said in the conclusions of the summit.
Security and the defence industry are scheduled to be a major item on the bloc's December 2013 summit, which will look at ways to strengthen the EU common security policy and to provide more resources for missions in conflict zones.
Many Western European countries have cut their defence budgets in response to the financial crisis, leading the EU's outgoing top military officer to warn in September that some EU states may be forced to scrap their air forces in a few years.
Europe's military deficiencies were exposed during last year's Libya campaign, when European states relied heavily on the United States for air-to-air refuelling, intelligence and surveillance..."
at http://www.trust.org/alertnet/news/eu-leaders-vow-to-boost-europes-defence-capabilities
The leaders also pledged at a Brussels summit to try to boost the EU's role in tackling international crises now that the U.S. military focus is shifting to Asia, creating demand for a bigger EU security presence in Africa and the Mediterranean.
"Current financial constraints highlight the urgent necessity to strengthen European cooperation in order to develop military capabilities and fill the critical gaps, including those identified in recent operations," they said in the conclusions of the summit.
Security and the defence industry are scheduled to be a major item on the bloc's December 2013 summit, which will look at ways to strengthen the EU common security policy and to provide more resources for missions in conflict zones.
Many Western European countries have cut their defence budgets in response to the financial crisis, leading the EU's outgoing top military officer to warn in September that some EU states may be forced to scrap their air forces in a few years.
Europe's military deficiencies were exposed during last year's Libya campaign, when European states relied heavily on the United States for air-to-air refuelling, intelligence and surveillance..."
at http://www.trust.org/alertnet/news/eu-leaders-vow-to-boost-europes-defence-capabilities
US missile defense system in Europe will intercept Russian ICBMs
"The missile defence system that the United States plans to deploy in Europe will be able to intercept Russian intercontinental ballistic missiles, deployed in European Russia.
This came in a statement at a news briefing in Moscow earlier today by the Commander of the Russian Strategic Missile Forces Sergei Karakayev.
The US claims that the European antimissile system will counter Iran’s missile threat.
But it is only Russia that has ICBMs in Europe. In this context, we understand that the US antimissile system will target Russia, since ICBMs and submarine-based ballistic missiles are the backbone of Russia’s nuclear containment force..."
at http://stratrisks.com/geostrat/9878
This came in a statement at a news briefing in Moscow earlier today by the Commander of the Russian Strategic Missile Forces Sergei Karakayev.
The US claims that the European antimissile system will counter Iran’s missile threat.
But it is only Russia that has ICBMs in Europe. In this context, we understand that the US antimissile system will target Russia, since ICBMs and submarine-based ballistic missiles are the backbone of Russia’s nuclear containment force..."
at http://stratrisks.com/geostrat/9878
War of pipelines
"US Ambassador to Pakistan Richard Olson’s statement on December 10 against the Pakistan-Iran gas pipeline (IP) was not a mere reiteration of the economic interests of the United States and its allies; it has serious political connotations, in an area that has always been the battlefield in the Great Game. The expression of concern by Olson came just two days after President Asif Ali Zardari skipped his scheduled visit to Tehran to finalise the project with his Iranian counterpart. The US has been opposing the pipeline since its inception and favouring the Turkmenistan-Afghanistan-Pakistan-India (Tapi).
The IP, a $1.2 billion project, has been lingering since 1995 when a memorandum of understanding (MoU) was signed between Iran and Pakistan. The Iran-Pakistan Working Group was formed in 2003 to move the project forward. Islamabad told Tehran that in case India was unwilling to join in, the Iran-Pakistan gas pipeline would be pursued as an independent project. But in 2005, a memorandum of understanding was signed to include India. In 2007, India and Pakistan provisionally agreed to pay Iran $4.93 per million British thermal units, but India subsequently withdrew from the deal, ostensibly over concerns about the price and security but in fact due to opposition from the US. Under the accord signed in June 2010, Iran was to provide about 21.5 million cubic metres of gas a day to Pakistan for 25 years. The deal is extendable by five years and volumes can rise to 30 million cubic metres a day. The project is now in doldrums.
The projected 1,680-kilometre Tapi gas pipeline is backed by the Asian Development Bank (ADB). It has the potential to bring 3.2 billion cubic feet of natural gas per day (bcfd) from Turkmenistan’s gas fields passing near the cities of Herat and Kandahar, crossing into Pakistan near Quetta and linking with existing pipelines at Multan.
After India’s withdrawal from the Iran-Pakistan gas pipeline project, China showed interest in it. In October 2011 Dr Asim Hussain said, “Our dependence on Pak-Iran pipeline is very high and there is no other substitute at present to meet the growing demand of the energy.” This statement irritated the US, which has been pleading the case for Tapi since the 1990s. Tapi was initially designed to provide Turkmen gas to Pakistan through Afghanistan. In April 2008, India was also invited to join in. Pakistan’s cabinet gave approval to the Gas Pipeline Framework Agreement (GPFA) for Tapi in its meeting on October 27, 2010. On November 13, 2011, Pakistan and Turkmenistan initiated the Gas Sales and Purchase Agreement (GSPA), which is likely to make the multi-nation project operational by 2016.
From the very beginning, the US and its allies wanted Pakistan to abandon the project with Iran, which wants to diversify gas sales to Asian markets. Tehran’s projection of IP as a “peace pipeline” has the support of Russia and China..."
at http://www.thenews.com.pk/Todays-News-9-148121-War-of-pipelines
The IP, a $1.2 billion project, has been lingering since 1995 when a memorandum of understanding (MoU) was signed between Iran and Pakistan. The Iran-Pakistan Working Group was formed in 2003 to move the project forward. Islamabad told Tehran that in case India was unwilling to join in, the Iran-Pakistan gas pipeline would be pursued as an independent project. But in 2005, a memorandum of understanding was signed to include India. In 2007, India and Pakistan provisionally agreed to pay Iran $4.93 per million British thermal units, but India subsequently withdrew from the deal, ostensibly over concerns about the price and security but in fact due to opposition from the US. Under the accord signed in June 2010, Iran was to provide about 21.5 million cubic metres of gas a day to Pakistan for 25 years. The deal is extendable by five years and volumes can rise to 30 million cubic metres a day. The project is now in doldrums.
The projected 1,680-kilometre Tapi gas pipeline is backed by the Asian Development Bank (ADB). It has the potential to bring 3.2 billion cubic feet of natural gas per day (bcfd) from Turkmenistan’s gas fields passing near the cities of Herat and Kandahar, crossing into Pakistan near Quetta and linking with existing pipelines at Multan.
After India’s withdrawal from the Iran-Pakistan gas pipeline project, China showed interest in it. In October 2011 Dr Asim Hussain said, “Our dependence on Pak-Iran pipeline is very high and there is no other substitute at present to meet the growing demand of the energy.” This statement irritated the US, which has been pleading the case for Tapi since the 1990s. Tapi was initially designed to provide Turkmen gas to Pakistan through Afghanistan. In April 2008, India was also invited to join in. Pakistan’s cabinet gave approval to the Gas Pipeline Framework Agreement (GPFA) for Tapi in its meeting on October 27, 2010. On November 13, 2011, Pakistan and Turkmenistan initiated the Gas Sales and Purchase Agreement (GSPA), which is likely to make the multi-nation project operational by 2016.
From the very beginning, the US and its allies wanted Pakistan to abandon the project with Iran, which wants to diversify gas sales to Asian markets. Tehran’s projection of IP as a “peace pipeline” has the support of Russia and China..."
at http://www.thenews.com.pk/Todays-News-9-148121-War-of-pipelines
China's strategic focus with Russia, an opportunity for Asia
"With global political scenarios changing with a rapid pace, China has been high on its heels in pursuit of increasing influence in the region. The amount of recent investment by Beijing on military and naval technology is more than what it used to be in the past. With successful inauguration of its first major aircraft carrier, it seems China wants to flex its wings more than ever in order to improvise on the power vacuum that the world is currently facing due to a series of ongoing wars and conflicts.
With this magnitude of emphasis on military might, many economic experts and analysts have been proved wrong who were previously of the opinion that China would primarily focus on attaining economic rather than military influence. The international media recently laid huge emphasis on China's pursuit of a Mega Blue Water Navy. Not only did the media portray its growing strength as a threat to the US Navy, but also raised concerns for the Indian navy. It has been said time and again that China is developing a two-pronged navy structure, one for local conflicts and the other for international operations.
Military analysts and experts around the world are of the view that the Chinese spending on the navy should not be seen as an effort to match the US; rather it should been seen as an effort to prepare itself for future local disputes, such as the dispute with Japan over the Sekaku Islands.
Playing it safe, China is also vying for strong military and strategic alliances in the region. During a recent visit to China by Russian Defence Minister Sergei Shoigu, Beijing pledged to strengthen military ties with Moscow in order to further the already bolstering ties. Xu Qiliang, General of the People's Liberation Army, stated that coordination on the strategic level between both the states maintains a positive and progressive outlook.
"China is willing to work with Russia to positively implement the two leaders' important agreement and further promote pragmatic communication and cooperation so as to upgrade their military relations to a higher level," said Xu while meeting Shoigu. He further expressed China's desire to push increased strategic cooperation with Moscow.
The past few years have witnessed the Russian-Chinese alliance reach an unfathomable level. With both the states jointly opposing any sort of military interventions, it seems that a common global interest is the primary element in creating such a strong bond among the two.
It is not only Russia that has become a major focus of Chinese foreign policy, rather Pakistan and Iran are also reaping the fruits of affordable military technology coming from China as a result of fruitful bilateral ties.
Pakistan and China can already boast of a supersonic jet, the JF-17 Thunder, a state-of-the-art modern tech airplane that was built as a result of joint efforts by experts from both the countries. Pakistan army's Heavy Military Complex also contains many important installations that have resulted from joint Pak-China efforts..."
Russia enters USA's strategic territories in Africa
"The visit of the President of Uganda, Yoweri Museveni, to Moscow was covered in the local press as confidential. African leaders are not frequent guests in Moscow. They hardly ever have meetings with the Russian president even if they do visit Russia. The latest visit of the Ugandan leader was even more unique. Until recently, Uganda has been an outpost of the U.S. in East Africa.
Museveni arrived in Moscow on December 10 at the invitation of President Vladimir Putin to mark the 50th anniversary of diplomatic relations between the countries. However, this visit is highly significant: it shows that Russia returns to Africa. Moreover, it returns to the places of the U.S. dominance..."
Russia to create two new super missiles, more powerful than Satan
"Two kinds of new strategic missiles, which Russian experts develop, should become a response to the deployment of the U.S. missile defense system in Europe. It goes about a heavy liquid-fuel intercontinental ballistic missile (ICBM) weighing 100 tons. The new missile will surpass the most powerful missile in the world RS-20B Voyevoda (Satan). The second type is a solid-fuel ICBM, which is said to replace fifth-generation Yars and Topol-M complexes. The news was revealed Friday by the Commander of Strategic Missile Forces of Russia, Colonel General Sergei Karakayev.
Since the potential of solid-fueled ICBMs may not be enough to overcome the U.S. missile defense, a heavy liquid ICBM will be able to oppose the system. Such an ICBM would create a strategic precision weapon with non-nuclear equipment of "practically global reach," if the United States does not refuse from its program, ITAR-TASS quoted the commander as saying..."
7 Secret Ways America’s Stealth Armada Stays Off the Radar
"It's no secret how America's stealth warplanes primarily evade enemy radars. Their airframes are specifically sculpted to scatter radar waves rather than bouncing them back to the enemy. Somewhat less important is the application, to select areas, of Radar Absorbing Material (RAM) meant to trap sensor energy not scattered by the plane's special shape.
In short, the four most important aspects of stealth are "shape, shape, shape and materials," to quote Lockheed Martin analyst Denys Overholser, whose pioneering work resulted in the F-117 Nighthawk, the world's first operational stealth warplane.
But in addition to shaping and RAM, the Pentagon's current stealth planes -- the B-2 Spirit bomber, the F-22 Raptor fighter, the RQ-170 Sentinel drone and the in-development F-35 Joint Strike Fighter -- boast other, lesser-known qualities that help them avoid detection. (We left the Army's stealth helicopter out of the discussion owing to a lack of information.)
These other stealth enhancements include: chemicals to eliminate telltale contrails; sophisticated, untraceable sensors and radios; specially designed, hard-to-detect engine inlets; radar-canceling paint; and cooling systems for reducing a plane's heat signature. All of these evasion methods have been disclosed by the Air Force, although sometimes in scant detail.
With China and Russia both demonstrating a rapidly improving grasp of stealth shaping -- and materials to a lesser extent -- these other, possibly harder-to-master aspects of radar-evasion are arguably becoming more important to maintaining America's aerial advantage..."
at http://www.wired.com/dangerroom/2012/12/steath-secrets/
In short, the four most important aspects of stealth are "shape, shape, shape and materials," to quote Lockheed Martin analyst Denys Overholser, whose pioneering work resulted in the F-117 Nighthawk, the world's first operational stealth warplane.
But in addition to shaping and RAM, the Pentagon's current stealth planes -- the B-2 Spirit bomber, the F-22 Raptor fighter, the RQ-170 Sentinel drone and the in-development F-35 Joint Strike Fighter -- boast other, lesser-known qualities that help them avoid detection. (We left the Army's stealth helicopter out of the discussion owing to a lack of information.)
These other stealth enhancements include: chemicals to eliminate telltale contrails; sophisticated, untraceable sensors and radios; specially designed, hard-to-detect engine inlets; radar-canceling paint; and cooling systems for reducing a plane's heat signature. All of these evasion methods have been disclosed by the Air Force, although sometimes in scant detail.
With China and Russia both demonstrating a rapidly improving grasp of stealth shaping -- and materials to a lesser extent -- these other, possibly harder-to-master aspects of radar-evasion are arguably becoming more important to maintaining America's aerial advantage..."
at http://www.wired.com/dangerroom/2012/12/steath-secrets/
NGO Says Russia Ordered It Out Over USAID Funding
"A Washington-based political advocacy group, the International Republican
Institute (IRI), said on Thursday it was ordered to leave Russia because it is
funded by a US government agency.
Russian officials told IRI that it must halt its work in Russia because it is financed by the US Agency for International Development (USAID), which was forced out of the country earlier this year, IRI spokeswoman Lisa Gates told RIA Novosti.
The Russian government in recent years has tightened its oversight of foreign funding of political groups that are highly critical of Russia’s leaders—measures it calls necessary to prevent outside interference in its political process.
Political opposition groups, meanwhile, say these initiatives are aimed at stifling dissent.
The closing of IRI in Russia comes on the heels of a Russian law enacted in July requiring nongovernmental organizations (NGOs) that receive foreign financing and engage in political activities to register as “foreign agents.”
But Gates said that the organization’s looming exit was precipitated not by the new NGO law, but rather by its funding from USAID, which was ordered by Moscow in September to halt its work in Russia.
“IRI was told by Russian officials it had to leave the country since it was funded by USAID,” Gates said in emailed comments. “It had nothing to do with the NGO law.”
Russian officials have previously accused IRI of meddling in the country’s domestic politics.
The Russian Foreign Ministry could not immediately be reached for comment on Thursday..."
at http://axisoflogic.com/artman/publish/Article_65218.shtml
Russian officials told IRI that it must halt its work in Russia because it is financed by the US Agency for International Development (USAID), which was forced out of the country earlier this year, IRI spokeswoman Lisa Gates told RIA Novosti.
The Russian government in recent years has tightened its oversight of foreign funding of political groups that are highly critical of Russia’s leaders—measures it calls necessary to prevent outside interference in its political process.
Political opposition groups, meanwhile, say these initiatives are aimed at stifling dissent.
The closing of IRI in Russia comes on the heels of a Russian law enacted in July requiring nongovernmental organizations (NGOs) that receive foreign financing and engage in political activities to register as “foreign agents.”
But Gates said that the organization’s looming exit was precipitated not by the new NGO law, but rather by its funding from USAID, which was ordered by Moscow in September to halt its work in Russia.
“IRI was told by Russian officials it had to leave the country since it was funded by USAID,” Gates said in emailed comments. “It had nothing to do with the NGO law.”
Russian officials have previously accused IRI of meddling in the country’s domestic politics.
The Russian Foreign Ministry could not immediately be reached for comment on Thursday..."
at http://axisoflogic.com/artman/publish/Article_65218.shtml
RAIL INDICATORS: The Economy Continues To Soften
"More weakness in this week’s rail traffic report. The AAR reported a -0.3% reading in intermodal. This is the second consecutive negative weekly reading. This brings the 12 week moving average down to 1.3%. That’s about in-line with the consensus Q4 GDP predictions and indicative of an economy that is growing, but just slightly..."
at http://pragcap.com/rail-traffic-economy-continues-to-soften#ixzz2FFGfwQKD
at http://pragcap.com/rail-traffic-economy-continues-to-soften#ixzz2FFGfwQKD
Japan's LDP surges back to power, eyes two-thirds majority with ally
"An LDP win will usher in a government committed to a tough stance in a territorial row with China, a pro-nuclear energy policy despite last year's Fukushima disaster and a potentially risky prescription for hyper-easy monetary policy and big fiscal spending to beat deflation and tame a strong yen..."
at http://www.reuters.com/article/2012/12/16/us-japan-election-idUSBRE8BE05E20121216?feedType=RSS&feedName=worldNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FworldNews+%28Reuters+World+News%29
at http://www.reuters.com/article/2012/12/16/us-japan-election-idUSBRE8BE05E20121216?feedType=RSS&feedName=worldNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FworldNews+%28Reuters+World+News%29
Saturday, December 15, 2012
China’s Communist Party Chief Acts to Bolster Military
"Xi Jinping, the new Communist Party chief and civilian commander of the Chinese military, is moving quickly to make strengthening the country’s armed forces a centerpiece of what he calls the “Chinese dream” of national rejuvenation.
The nationalist message of building up the People’s Liberation Army has been broadcast loudly in the aftermath of Mr. Xi’s recent visit to south China. The trip, which began Dec. 7, was Mr. Xi’s first outside Beijing as party chief and is now being examined for his policy priorities. This week, the state news media gave prominent coverage to Mr. Xi’s visit with troops of the Guangzhou military region, including a trip aboard the Haikou, a destroyer that belongs to the fleet patrolling disputed waters in the South China Sea.
“We must insist on using battle-ready standards in undertaking combat preparations, constantly enhancing officers’ and troops’ thinking about serving in battle, and leading troops into battle and training troops for battle,” Mr. Xi said, according to a report on Wednesday by Xinhua, the state news agency, that was later published by prominent state-run newspapers. “And we must insist on rigorous military training based on the needs of actual combat.”
China submits oceanic claims to United Nations
"China provided the United Nations with detailed claims to waters in the East China Sea on Friday, apparently padding out its legal argument in an ongoing territorial dispute with Japan.
at http://news.yahoo.com/china-submits-oceanic-claims-united-nations-124151699.html
The Foreign Ministry said it submitted documents claiming waters extending beyond its 200-nautical-mile (370-kilometer) exclusive economic zone. It said geological features dictated that China's claim extended to the edge of the continental shelf off the Chinese coast, about 200 kilometers (124 miles) from Japan's Okinawa island.
A statement posted to the Foreign Ministry's website gave no specifics, but China had pledged to make such a submission shortly after its dispute with Japan over uninhabited islands in the East China Sea flared again in September. Japan angered China by buying the islands from their private Japanese owners to block a rival bid by Tokyo's nationalist mayor, a move Japan had hoped would prevent a bigger crisis.
Violent anti-Japanese protests then broke out across China to assert what many Chinese believe is their country's ages-old claim on the rocky outcrops, known as Senkaku in Japan and Diaoyu in China. Taiwan also claims them.
China's move is a way for it to underscore its claim, but will have little real impact. The U.N. commission to which it submitted its claim, which comprises geological experts, evaluates the markers on technical grounds but has no authority to resolve overlapping claims.
The U.N. submission represents one aspect of China's approach to the dispute. Another involves dispatching vessels to patrol in the area and confront Japanese Coast Guard ships.
On Thursday, China for the first time dispatched a plane over the islands, prompting Tokyo to accuse it of violating Japanese air space. Japan's Defense Agency said four Japanese F-15 jets headed to the area in response, but the nonmilitary Chinese plane was nowhere to be seen by the time they got there. The Foreign Ministry said a formal protest was sent to the Chinese government through its embassy in Japan..."
at http://news.yahoo.com/china-submits-oceanic-claims-united-nations-124151699.html
US Pivot Heightens Asian Disputes
"With newly re-elected President Barack Obama having chosen Southeast Asia as his first foreign destination, where he also attended the much-anticipated pan-Pacific East Asia Summit, the U.S. has underscored its commitment to its so-called strategic ‘pivot’ to the Asia-Pacific region.
Months after the 2011 U.S. military withdrawal from Iraq, President Obama signaled the formal launch of the pivot in a November speech to the Australian parliament: “As a Pacific nation, the United States will play a larger and long-term role in shaping this region and its future.”
The U.S. already has around 320,000 troops stationed in the region, as well as 50 percent of its formidable global naval assets. Under the pivot strategy, the U.S. is set to commit several thousand additional troops and increase its naval strength by another ten percent in the coming few years.
The Obama administration has repeatedly denied that the pivot is a containment strategy aimed at Beijing, arguing it is simply a logical ‘rebalancing’ towards the region in light of Asia’s stunning economic growth and the increasing importance of maintaining U.S. interests there.
However, more than two years into the so-called U.S. pivot, many strategic commentators across the Pacific have raised major questions as to its real intentions, actual impact, and practicability, given the United States’ deep fiscal constraints ahead of scheduled defence-spending cuts.
Reacting to lingering uncertainties over the U.S. strategy, China, which views the pivot as an act of provocation, as well as other countries in the region such as Vietnam, Philippines, and Japan, have stepped up their territorial claims in the Western Pacific – indirectly testing America’s resolve to uphold its strategic commitments.
In this sense, the pivot – purportedly to reinforce the United States’ role as an ‘anchor of stability and prosperity’ in the Pacific – has ironically contributed to greater uncertainty, turbulence, and belligerence vis-à-vis the festering maritime disputes.
In a recent op-ed for the Singapore-based daily The Straits Times, Barry Desker, the dean of the Singapore-based S. Rajaratnam School of International Studies (RSIS), called for ‘mutual restraint’ by all disputing littoral states to ‘diffuse’ tensions, while contending that all parties are “guilty of occupying uninhabited islands and land features.”
at http://original.antiwar.com/javad-heydarian/2012/12/14/us-pivot-heightens-asian-disputes/
Months after the 2011 U.S. military withdrawal from Iraq, President Obama signaled the formal launch of the pivot in a November speech to the Australian parliament: “As a Pacific nation, the United States will play a larger and long-term role in shaping this region and its future.”
The U.S. already has around 320,000 troops stationed in the region, as well as 50 percent of its formidable global naval assets. Under the pivot strategy, the U.S. is set to commit several thousand additional troops and increase its naval strength by another ten percent in the coming few years.
The Obama administration has repeatedly denied that the pivot is a containment strategy aimed at Beijing, arguing it is simply a logical ‘rebalancing’ towards the region in light of Asia’s stunning economic growth and the increasing importance of maintaining U.S. interests there.
However, more than two years into the so-called U.S. pivot, many strategic commentators across the Pacific have raised major questions as to its real intentions, actual impact, and practicability, given the United States’ deep fiscal constraints ahead of scheduled defence-spending cuts.
Reacting to lingering uncertainties over the U.S. strategy, China, which views the pivot as an act of provocation, as well as other countries in the region such as Vietnam, Philippines, and Japan, have stepped up their territorial claims in the Western Pacific – indirectly testing America’s resolve to uphold its strategic commitments.
In this sense, the pivot – purportedly to reinforce the United States’ role as an ‘anchor of stability and prosperity’ in the Pacific – has ironically contributed to greater uncertainty, turbulence, and belligerence vis-à-vis the festering maritime disputes.
In a recent op-ed for the Singapore-based daily The Straits Times, Barry Desker, the dean of the Singapore-based S. Rajaratnam School of International Studies (RSIS), called for ‘mutual restraint’ by all disputing littoral states to ‘diffuse’ tensions, while contending that all parties are “guilty of occupying uninhabited islands and land features.”
at http://original.antiwar.com/javad-heydarian/2012/12/14/us-pivot-heightens-asian-disputes/
147 Technocratic "Super Entities" Rule the World
"By Susanne PoselOccupy Corporatism
The Swiss Federal Institute (SFI) in Zurich released a study entitled “The Network of Global Corporate Control” that proves a small consortiums of corporations – mainly banks – run the world. A mere 147 corporations which form a “super entity” have control 40% of the world’s wealth; which is the real economy. These mega-corporations are at the center of the global economy. The banks found to be most influential include:
at http://financearmageddon.blogspot.com/2012/12/147-technocratic-super-entities-rule.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FCRkw+%28The+Economy++Collapse%29
The Swiss Federal Institute (SFI) in Zurich released a study entitled “The Network of Global Corporate Control” that proves a small consortiums of corporations – mainly banks – run the world. A mere 147 corporations which form a “super entity” have control 40% of the world’s wealth; which is the real economy. These mega-corporations are at the center of the global economy. The banks found to be most influential include:
• BarclaysHowever as the connections to the controlling groups are networked throughout the world, they become the catalyst for global financial collapse. http://www.blacklistednews.com/Swiss_Study_Shows_147_Technocratic_%E2%80%9CSuper_Entities%E2%80%9D_Rule_the_World_/21945/0/0/0/Y/M.html?morestories=obinsite"
• Goldman Sachs
• JPMorgan Chase & Co
• Vanguard Group
• UBS
• Deutsche Bank
• Bank of New York Melon Corp
• Morgan Stanley
• Bank of America Corp
• Société Générale
at http://financearmageddon.blogspot.com/2012/12/147-technocratic-super-entities-rule.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FCRkw+%28The+Economy++Collapse%29
Largest Capital In The World Now Entering Gold & Silver Space!
"Today
Rick Rule told King World News that the most massive and most intelligent pools
of capital on the planet are now looking to crowd into the gold and silver
space. This is huge news for a sector that has been in a state of consolidation
for over a year, and strongly supports the thesis that 2013 will be a banner
year for gold and silver..."
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/13_Largest_Capital_In_The_World_Now_Entering_Gold_%26_Silver_Space%21.html
at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/13_Largest_Capital_In_The_World_Now_Entering_Gold_%26_Silver_Space%21.html
Fed’s Balance Sheet To Hit A Shocking $6 Trillion
"...Ben’s balance sheet was just $800 billion in 2007. It
is now $2.8 trillion and is expected to grow to roughly a shocking $6 trillion
by the end of 2015. A few more years of trillion dollar deficits that are
completely monetized by the Fed should ensure that our government’s creditors
will demand much more than 1.6% for a ten-year loan.
The problem is that rising interest rates will cause
the Fed to either rapidly and tremendously expand their money printing efforts,
which could lead to hyperinflation; or to begin to sell trillions of dollars
worth of government debt at a time when bond yields are already rising.
If yields are already rising due to the fact that our
creditors have lost faith in our tax base to support our debt, just think how
much higher yields will go once the bond market becomes aware that the Fed will
become another massive seller.
The Fed’s new policy is incredibly dangerous and
virtually guarantees our economy will suffer a severe depression in the near
future. For the reasons stated above, it is prudent to use the austerity
threats emanating from the Debt ceiling and Fiscal Cliff as an opportunity to
accumulate precious metals and their equities. Once those issues are resolved
gold should be the primary beneficiary.”
Two Important Charts For Gold & Silver Investors
"...It is always interesting to look at historical
comparisons. When the Roman Empire started to fall in the 3rd century, the Roman silver coin, the Denarius, reflected
a massive bubble economy that was coming to an end. Over 100 years, the Denarius
fell by around 97% as reflected by the lower silver content. Then in the late
4th century the silver content fell to zero, which
means that the currency became worthless. For the next 200 years the silver
content of the Denarius reflected a devaluation of around 99%.(see chart
below).
For investors who are concerned that the gold price is not going up fast enough, I stress time and time again that gold will continue to reflect the accelerating money printing worldwide. Below I show a chart of the US Debt Ceiling (courtesy Nick Laird, sharelynx) vs. the gold price. The debt ceiling has increased around 150 times since 1917. It is absolutely guaranteed that it will continue to increase in the next few years in parallel with the increase in debt. This means that it is also guaranteed that the price of gold will go up in coming years.
Although gold (and silver) didn’t go up in the last couple of days, it is absolutely guaranteed that the continued destruction of paper money will lead to substantially higher prices in the precious metals. But remember you have to hold physical metals and store them outside the banking system..."
In the last 100 years since the creation of the Fed
in 1913, the dollar and most other currencies have fallen 97-99%. So we only
have a 1-3% fall left to reach a total collapse of the current monetary system.
That is likely to happen in the next few years.
For investors who are concerned that the gold price is not going up fast enough, I stress time and time again that gold will continue to reflect the accelerating money printing worldwide. Below I show a chart of the US Debt Ceiling (courtesy Nick Laird, sharelynx) vs. the gold price. The debt ceiling has increased around 150 times since 1917. It is absolutely guaranteed that it will continue to increase in the next few years in parallel with the increase in debt. This means that it is also guaranteed that the price of gold will go up in coming years.
Although gold (and silver) didn’t go up in the last couple of days, it is absolutely guaranteed that the continued destruction of paper money will lead to substantially higher prices in the precious metals. But remember you have to hold physical metals and store them outside the banking system..."
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