Tag Archives: us

US pushing for (at least) one more front

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It’s no secret that the US is “jonesing” to engage in battle with Iran, and the latest ‘booga booga’ event will likely tip the scales and provide all the justification that they’re looking for to engage in some kind of encroachment on Iran.

We know that latest scare tactic against is nothing but that when someone like an official like ex-intelligence analyst Robert Baer joins the chorus of people warning that the US has it all wrong when it comes to policy concerning Iran.

This is exactly the kind of nonsense that brought about WWI and when the US encroaches on Iran, WWIII will be nothing short of official.

Category: iran, Politics, terror | Tags: , ,

Was Egypt’s Gentle Coup an American Takeover?

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Gee … I can’t imagine what life under a dictator would be like (maybe Canada could do with a little regime change?), but I know this:  life under the military will likely be harder for Egyptians.

The “Walk Like an Egyptian” campaign staged by hundreds of thousands of people seems to be subsiding, but let’s repeat who’s in charge now:  The military.

In most circles, a transition of power from the leader (regardless of how he or she got there) is called a coup d’etat.  As defined by Wikipedia:

A coup d’etat is the sudden, extrajudicial deposition of a government, usually by a small group of the existing state establishment—typically the military — to replace the deposed government with another body; either civil or military. A coup d’état succeeds if the usurpers establish their dominance when the seated government fails to disallow their consolidation of power.

In the case of Egypt, I would call it a gentle coup.  The military waited and they seemed to get what they wanted.  Not to sound cold, but few people died in the transition and right now, it actually seems like a responsible host of military leaders will help Egypt emerge from dictatorship.

Or will they?

In Egypt, we need to know to whom the military is beholden.  Are they representatives of Egyptians or an extension of the American military?

Don’t forget that Egypt is America’s second largest recipient of financial and military support – after Israel.  That kind of funding has to generate some kind of internal connections.

Did the turnover in Egypt occur because Hosni Mubarak wasn’t buying billions in new hardware?  In December, Wikileaks showed that the US made repeated attempts to encourage Mubarak’s regime to upgrade their military.  Substantial investments didn’t occur, resulting in Council of Foreign Relations expert Steven Cook to say this:

The cables reveal a military deeply reluctant to take part in regional counterterrorism efforts, and the focus on weapons necessary for desert battle is a reflection of that.  The Egyptian military is not good at or interested in, quite frankly, projecting power. It is there to ensure the survival of the regime and protect the country’s borders.

Not to defend Mubarak, but shouldn’t that be the priority of any government?

We also see that Israel was worried about Egypt’s commitments in the Middle East:

Meanwhile, Israel remains worried about Egypt’s current appetite for weapons. A July 2009 cable from Tel Aviv paraphrased political military chief Amos Gilad as saying “the Egyptian military led by Defense Minister [Mohamed] Tantawi continues to train and exercise as if ‘Israel was its only enemy.’ He added that … [Egypt’s] peace with Israel ‘is too thin, too superficial.’ ”

Looking at this information, one can’t help but wonder what was behind the activities for the last three weeks.  Was it a a pissed off Egyptian populace or an even more irate US industrial-military machine that was no longer getting support in Egypt’s upper echelons?  If bills weren’t being paid and hardware wasn’t being upgraded, could this have provided enough of a spark to overthrow Mubarak?

Other issues are at stake here, particularly the Suez Canal and the Gaza Strip.  The Suez is the most important oil asset to Europe and Gaza represents some of the most important real estate for Israel.  What happens next with these two locations will also reveal clues to why things happened the way they did in Egypt.

To sum up, as the military takes control, who they report to – the US or Egypt – will tell the full story.  Big, gluttonous upgrades and changes in real estate ownership will be the first sign to everyone that this had nothing to do with the will of the people.

US Due for Debt Collapse

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The US is due for a massive debt collapse – or hyperinflation.  My prediction is that it will be at some point in the next 6 to 12 months.  The result of this collapse is that we should expect to see the US dollar drop substantially further, sending commodity prices shooting through the roof.

US exported inflation (what I call ‘interflation’) will start to punish all of us for the largesse and excess that is destroying their economy.

Canada will benefit in the short term with oil prices driving the economy of Alberta and Saskatchewan to new levels, with royalties filling the coffers for everyone but eventually, we’ll have the same erosion of manufacturing and other industries throughout the rest of the country and Ontario will once again face financial issues as it tries to even catch up to the whirlwind that is coming.

The solution is to eliminate any pricing in US funds.  If we remove ourselves from US dollar pricing, we may be able to avoid the Canadian dollar becoming a ‘petro-buck’, something that’s more of a curse than a benefit.

Here’s the original text of the piece from Zero Hedge:

#1: The US Fed is now the second largest owner of US Treasuries.

That’s right, this week we overtook Japan, leaving China as the only country with greater ownership of US Debt. And we’re printing money to buy it. Setting aside the fact that this is abject lunacy, this policy is trashing our currency which has fallen 13% since June… as in four months ago. Want an explanation for why stocks, commodities, and Gold are exploding higher? Here it is:

dollar dropping.gif

#2:  “There are only about $550 billion of Treasuries outstanding with a remaining maturity of greater than 10 years.”

This horrifying fact comes courtesy of Morgan Stanley analyst David Greenlaw. And it confirms what I’ve been saying since the end of 2009, that the US has entered a debt spiral: a time in which fewer and fewer investors are willing to lend to us for any long period of time… at the exact same time that we must roll over trillions in old debt and issue an additional $100-150 billion in NEW debt per month in order to finance our massive deficit.

And only $550 billion of the debt we’ve got to roll over has a maturity greater than 10 years!?!?

So we’re talking about TRILLIONS of old debt coming due in the next decade. The below chart depicting the debt coming due between 2009 and 2039 comes courtesy of the US Treasury itself. In plain terms, we’ve got some much debt that needs to be rolled over that you can’t even fit it on one page and still read it.

maturing treasuries

#3: The US will Default on its Debt

… either that or experience hyperinflation. There is simply no other option. We can NEVER pay off our debts. To do so would require every US family to pay $31,000 a year for 75 years.

Bear in mind, I’m completely ignoring the debt we took on with the nationalization of Fannie and Freddie, AIG, and the slew of other garbage we nationalized or shifted onto the Fed’s balance sheet. And yet we’re STILL talking about every US family making $31,000 in debt payments per year for 75 years to pay off our national debt.

Obviously that ain’t going to happen.

So default is in the cards. Either that or hyperinflation (which occurs when investors flee a currency). Either of these will be massively US Dollar negative and horrible for the quality of life in the US. But they’re our only options, so get ready.