Important Week Ahead

Sun, Sep 8, 2013 - 11:34pm

I interrupt my regularly scheduled article to bring you more late breaking news. I'll save my historical treatise for another date as everyone seems focused on the events in Syria and whether or not the Fed will continue QE. No sense in fighting the news trend and since many of you are already talking about it, I might as well dedicate this Sunday Evening/Monday Morning post thread to Syria and QE3.

Last week was a pretty intense week with accusations that the administration is committing war crimes, a 100 point plunge in the Dow on Friday morning, and Crude getting a boost on Syria. The Syrian situation is giving a rise to saber-rattling between the US and Russia that we haven't seen since the Cold War of the 1950's and the Gulf of Tonkin. As we learned on Friday courtesy of Jim Comiskey, Russia is sending military ships to the Syrian coast

Will Russia consider a strike against Syria an international violation and act of War against the Russians?

In case you haven't seen it, on Sunday Russia issued a 100 page report saying that the Syrian rebels are behind the Sarin Gas attacks and that John Kerry and the US are liars.

"The Russian statement warned the United States and its allies not to conduct a military strike against Syria until the United Nations had completed a similarly detailed scientific study into the Aug. 21 attack. It warned that what it called the current “hysteria” about a possible military strike in the West was similar to the false claims and poor intelligence that preceded the United States invasion of Iraq."

What I'd like for you to keep in mind about Syria is that Israel has invaded Syrian airspace 3 or 4 times this year and struck surgical targets including anti ship cruise missiles. No fuss was made by US media or much discussion about it in the alternative media. Russia also has already been sending anti-ship and anti-air craft missiles to Syria, and reports indicated that they have been sending in technical experts to set up the system.

So with on going missile attacks between Israel and Syria, continued Russian involvement in the region, why has the threat of a garden variety missile strike by the US become an international incident? Has what has already been going on reached a peak? Or is there a reason the US media wants us focused on this event?

Taper Talk

As most of you have heard by now Friday's nonfarm payroll report showed that while the economy created 169,000 new jobs, the numbers were below expectations and represented a continued drop in labor participation. Remember, the Fed has said that it is decisions regarding taper was predicated on improving unemployment.

Whether or not the Fed tapers , the threat of tapering will certainly continue to build up and any fall in the major stock indices or the metals will surely be attributed to the anticipation of the Fed tapering and it's possible impact on economic activity. As many you have noted, as well as most metal analysts, a taper would have disastrous effects on the economy. In addition, all that money that is sitting in the bank reserves is unlikely to get lent out thereby reducing reserves and threatening bank contagion, and a very inflationary situation that the Fed would find unacceptable.

As I mentioned in a previous article, the Fed has focused it's monetary policy specifically on mortgage backed securities as a swap where the reserves mostly remain with the banks. I suggested that the mantra QE to infinity does not address the ways in which the Fed could begin influencing other area's of the economy if it decided to lessen the amount of MBS it buys. Also the anticipation of what the Fed will do is occurring as the prospective new Fed chairman, Larry Summers, is going through his selection process. Larry Summer's has said that QE3 has had virtual no effect positively or negatively on the economy.

Finally, a lighter piece of news announcing the new Obama Presidential's an outhouse. It has stirred a bit of controversy in this small New Mexico town.

About the Author

Green Lantern


Mr. Fix
Sep 9, 2013 - 1:52pm

An update on Syria:

I've been watching a little bit of television, Fox news to be exact. Apparently, Susan Rice just gave a press conference, where she is doubling down on dumb, and still arguing a case to bomb Syria, despite them turning control of their weapons over to the UN.

So whoever is keeping score, it's the United States zero, and our enemies infinity since Obama has taken office.

Once again, he has chosen a course of action that will undeniably have the worst possible outcome for the United States.

He is not backing down, he is doubling down. It appears he is in the process of making the United States the world's largest terrorist organization on the planet. (I know it was already, but now everyone is noticing).

The international community will be left with no choice but to become firmly allied against us.

How long do you think the US Dollar can remain as the world's reserve currency under these circumstances?

Sep 9, 2013 - 1:55pm

Big bank failures and the price of gold

Got curious if the failure of a big bank(s) has an observable effect on the price of gold.

Two observations:

Lehman Brothers bankruptcy Sept 15, 2008.

Europe banks bail-in rules established (after Cyprus bank bail-in) June 26, 2013.

The Lehman failure resulted in gold price rise from $670 (Sept 2008) to $1,900 (July 2011)

The establishment of formal bail-in rules for the remaining Euro banks may have started a turn in gold prices from a $1,180 low (June 27, 2013).

Just saying, an observation. Maybe the big money does start shifting their assets when they see big money accounts being lost/raided.

After the Lehman Brothers bank failure, the price of gold advanced a factor of 2.83 in 33 months. An advance of 2.8 times from the June 2013 low would result in a gold price of $3,300/Troy oz (maybe Sept 30, 2016). Another TBTF bank failure might accelerate and increase this potential move.

ancientmoney Mr. Fix
Sep 9, 2013 - 2:07pm

@Mr. Fix re: doubling down . . .

"How long do you think the US Dollar can remain as the world's reserve currency under these circumstances?"


It seems to me that obama knows the end of dollar hegemony is very, very close. He may be threatening war in hopes that:

1. China/Russia/BRICs stop their formation of alternative-to-dollar-settled trading, or else:

2. War is the answer to keep the international bankers in power.

A careful and thoughtful read of this article is recommended for those who doubt this opinion:

It was posted here before, I know, but many likely did not read it yet. I think she is spot-on.

Mr. Fix
Sep 9, 2013 - 2:21pm

@ ancientmoney :

I agree with you that a dollar collapse is imminent, but I can only conclude that Obama's actions will hasten the creation of a dollar trade alternative. I do not see how his actions would actually prop the Ponzi scheme up further, with international consensus firmly allied against the United States, a dollar collapse is guaranteed.

As far as keeping the international bankers and power, they might even agree with the plan, and I know that it It is a generally accepted premise that Barack Obama is a banker puppet, but I still say his loyalties are with the Muslim brotherhood, radical Islam, and Saudi Arabia. (He may only be answering to Allah.)

I also believe that in the past destroying the United States was a goal that the international bankers and Barack Obama could agree upon, but we are starting to venture into territory where their interests may not coincide so much.

It is increasingly looking like Obama is trying to start a hot war with Russia, and the rest of the world will side with Russia. This tells me that the bankers have either given up trying to maintain their control (doubtful),

or Obama is now running his own agenda, a jihad if you will, he is not even concerned about his own political capital anymore. I think he considers himself and his presidency expendable if it means the accomplishment of his goal.

He is unequivocally doing as much damage to the United States as possible, his entire “team”, seem to be on the same page.

silver foil hat
Sep 9, 2013 - 2:22pm

Sotero: Russian agent?

Let's see:

Soetoro pushes US to war with Russia,

the rest of the world no longer sees the US as a 'superpower' to be respected (and won't 'jump' just because the regime says 'jump'),

Russia offers the US a way 'out',

Soetoro gives the rest of the world 'the bird' and attacks anyway


Soetoro backs off.

Either way, his main objective of his regime was always to 'bring America down' to where it was no longer viewed as a superpower or as a prosperous economy.

I guess it's too bad his goal of removing the US as a superpower was complete before he was able to finish the work of the banksters that wanted to install a central bank in every country.

You know, since Libya didn't have one, Syria doesn't have one, North Korea doesn't have one (at least not all in the IMF / BIS) and I believe two other countries that escape me at the moment.

Want to know where the next FF will be blamed on?

Look no further than that list.

Like I said, the 'respect as a superpower' clock ran out before the end of his term.

I'd better end it here otherwise something may be misconstrued.

Just another random music video:

XTC - The Ballad Of Peter Pumpkinhead
Sep 9, 2013 - 2:32pm

@Mr. Fix re: obama and the bankers . . .

I guess it is possible that obama is what you say. However, I think he truly is a banker sock-puppet. The western bankers hollowed out the U.S. already, as we know full well; only Wall Street remains. The bankers have already moved on. There is no need to continue the America we used to know. They are now establishing their footholds where the easiest and cheapest resources of the world exist. They are battling the Russian and Chinese oligarchs now, using the last vestige of U.S. power (military) to their advantage. obama may have no other choice, if he wants to avoid Arkancism.

Mr. Fix
Sep 9, 2013 - 2:35pm
Sep 9, 2013 - 3:01pm

US Dollar

"a dollar collapse is imminent." I disagree, the worlds reserve currency is not just going to collapse, the main issue is that there is no alternative.

Where is there a better currency? The Euro? No. The Yen? No. The pound? No. At the end of the day, the dollar is the best of the worst. Are the BRIC's going to create some new currency to counter the dollar? Not a chance, Brazil, India are going to knock over the US dollar, that is just silly.

The dollar will suffer a devaluation at some point, all developed nations with huge debt will have this outcome, it may be a long time away, longer that anyone thinks (5-15 years), a 50% devaluation is not the end of the world, it's not a collapse.

Strongsidejedi Mr. Fix
Sep 9, 2013 - 3:01pm

@Mr Fix : Barnhardt interview

Youtube just failed on me only 2 minutes into the Barnhardt interview.


Does it work for other people?

Hunt brother
Sep 9, 2013 - 3:17pm

Bullish for gold and silver...

Louise Yamada is on KWN stating that gold and silver are still in a bear market.

She completely missed the June 28 bottom. Yamada gives a lame excuse for her missing the bottom because accumulation does not detect V bottoms. Yamada reminds me of the local tarot card reader.

I am also seeing the $1050 gold forecasts again. These appeared in July and August during pullbacks which preceded $100 up moves in gold.

I sense $1500 gold and $ 30 silver in a few weeks.

Sep 9, 2013 - 3:23pm

Re Barnhardt

Working for me. Listening now.

She makes Jim Willie sound sane.

I actually think she has the right idea - in that one group is behind all these sub groups, for one agenda. However, I think it has nothing at all to do with countries and or religion. NWO via banks. The rest is just a means to an end.

We look at sovereign lines, religion, black, white, straight, gay, pro life, free choice, left v right, global warming, global cooling, terrorist this and that, freedom fighting rebels, this and that. Democracy, communism. Collectivism, libertarian. CIA drugs - war on drugs


Edit: Fix: Not that Obama is deliberately bad for US interests. He is just working for the Bankers. Who use what the US has, for its own agenda. Military power, world reserve currency etc. He is just looking as if he has bad intentions - no, the US is just flotsam and jetsam, a tool (scuse intended pun)

argent rampant
Sep 9, 2013 - 3:24pm


Yes, too many people expect everything, including the demise of the dollar, to happen as a singular, dramatic event. I have always felt your scenario seems more likely. I think if we look at what happened to the UK and the British Pound after the British Empire dissolved and they had to confront the fact that they were broke. The BP is still around and in use, but it is no longer the dominant currency it once was. The same will happen, IMO, with our dollar. The big linchpin is the "petrodollar". When that falls, the USD will have to be devalued. That event may not happen for a few years, or it could be something that happens sooner and more suddenly that anyone expects.

Sep 9, 2013 - 3:44pm


I know that this pertains to a posting on Sat's thread,but the news came out about beef was being sold as beef but was actually 100% horsemeat. The sales dept. for Wendy's is now in private talks with Hillary Clinton to do a modern commercial of Clara Pellar asking "Where's the Beef?"

Sep 9, 2013 - 3:49pm

Dr Jerome

Send it to them, that way they don't have to waste any brain cells.

Sep 9, 2013 - 3:50pm


Frankly, I find it irresponsible that so many casually call for a collapse of the worlds reserve currency. The US has the largest military, the largest economy (EU officially the largest).

There is no reason for a US dollar collapse, a devaluation yes, that doesn't mean the dollar is gone!

The US has too much debt, but so does every other developed nation, the US has too many future obligations, that will be dealt with in one fashion or another.

The US dollar is going to be here next year, and the next decade, it may not purchase as much, and that is where gold provides that hedge.

Does anyone ask why China and others have NOT sold their US T-Bills yet? After 5 years of QE, they still hold it. It's called not shooting yourself in the foot, and cooperation is taking place, there is no mistake about it.

ancientmoney zman
Sep 9, 2013 - 3:52pm

@ zman re: dollar will last a long time . . .

I doubt it.

It won't even take a new WRC to be instituted. If the BRICs create a new trading block devoid of the dollar, it means the U.S. can only trade with those countries using gold or other tangibles like soybeans, corn, or energy.

This can happen without notice, at anytime. China can begin it in two minutes, by dumping USTs into the market.

Normalcy bias is strong. It prevents people from seeing reality, and prevents them from preparing. I'm guessing 95% of the people still see it as you do.

Sep 9, 2013 - 3:58pm

CIA, bankers, Wall Street, NSA

Are all one and the same!

They own the President and congress.

The one I Don't get is Michele Obama.

Her first photos after her husband was elected showed her working in the new White House garden.

I thought she must be sending a message. Then she wanted the school kids to eat a healthy lunch.

She almost sounds like a prepper! What's up wit dat?

Sep 9, 2013 - 4:00pm
Mr. Fix
Sep 9, 2013 - 4:01pm

Banker puppet, or secret agent?

At least now we have established that in no way shape or form is Obama looking out for American interests.

The only question: Is he working for the bankers? Or is he working for a foreign entity? Is he on a jihad?

Do they have common interests going forward?

Here is what I would look for:

This week, the House and Senate will vote on the war resolution. We can say with relative certainty that the Republican House members are employed by the banks.

If Obama does not get his war resolution, Than he has thumbed his nose at the bankers, and is on his own.

The Republicans have already threatened to impeach Obama if he proceeds without congressional authorization.

If Obama proceeds anyway, he would clearly be an enemy combatant at that point.

ancientmoney Bugzy
Sep 9, 2013 - 4:04pm

@Bugzy re: Barnhart . . .

"I actually think she has the right idea - in that one group is behind all these sub groups, for one agenda. However, I think it has nothing at all to do with countries and or religion. NWO via banks."


Agreed. The western bankers have created a world of fiat, in which they have controlled everything. The military would mutiny in an instant if they stopped getting those paychecks, or those paychecks became worthless.

Russia and China have played along with the western bankers for quite some time. However, the fiat system is failing now, and it has taken a few years for Russia, China, and BRICs to get their ducks in a row, to have a way to combat the western banking cabal.

When it comes to resources, the Russkies and Chinese have little desire to share with western banking oligarchs, who want it all under their full control.

It seems to me we have a seat in the front row to watch the battles play out between the western banksters and the eastern power brokers.

I just hope it doesn't go thermonuclear.

Mr. Fix
Sep 9, 2013 - 4:08pm

Obama might not have banker support.

Less Than 10% Of The House Support Obama: Congressional Support Update

Submitted by Tyler Durden on 09/09/2013 - 15:41

Less than 10% of the House publicly supports President Obama's plan for a military strik on Syria. As Bloomberg notes in this updated visual description of the hill he faces, at least 202 House members currently oppose military action.

Sep 9, 2013 - 4:31pm


"if the BRIC's create a new trading block devoid the dollar."

This is where I think it gets very speculative. Brazil has tons of its own problems, India is a total mess, Russia is a small economy, and China is just starting to become a developed economy, does anyone really expect this group to take over the global trade system? Over the US, Europe, and Japan, I don't think so.

What would be the ramifications for a Brazil or India trying to get one over on the West? Do anyone really think the US and Europe would just take it laying down, and do nothing? Not a chance.

Maybe many years down the road something will change in global trade, but for now it's status quo for the US and the West.

ancientmoney Mr. Fix
Sep 9, 2013 - 4:36pm

@Mr. Fix re: banker support . . .

Bankers may allow Congress to vote however it wishes. What happens after that will tell the tale.

My money is on obama acting on his own, even without Congress' support--that is, if the military acts on his orders. I think the bankers have drawn a line in the sand. They want that pipeline through Syria. Europe's freedom from Gazprom's dictates may be existential to the western banking cabal. It sure appears that way.

Barnhardt says the good guys are all drummed out of the military, and the drones are all that's left. If she's right, then look out below.

Sep 9, 2013 - 4:38pm


The Omaha World-Herald did report that (IA Rep Steve) King said, "it sounds as though the president is determined to kill some Syrians to send the message to Assad to stop killing Syrians."

ancientmoney zman
Sep 9, 2013 - 4:39pm

@zman re: status quo . . .

I hope you're right.

But I think you're wrong.

We can agree to disagree on this very basic point.

Sep 9, 2013 - 5:00pm
Sep 9, 2013 - 5:04pm
Sep 9, 2013 - 5:13pm
Sep 9, 2013 - 5:17pm


Came up with UK Royal Site,

The email I got was trying ton sell me India minted UK Sovereigns for £525 each.

A Sov' is just under a quarter Troy Oz !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


silver foil hat
Sep 9, 2013 - 5:30pm

I'm not going to post the underlying link....

(and you've likely seen this at ZH, among other sites)

....but really? Is this ad paid for by O-bomb-ya or his master?

Maybe some 'obstructionists' to his quest for global domination are called for now.

(Yeah, I know. Being right on one issue out of 10,000 still means you're wrong 99.99% of the time. But really. This ad


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