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Jun 10, 2009

China "We are buying 80 Billion dollars worth of gold" (That is 2 fort knoxes worth )

Here's something you don't see on Fox News very often.

The original interview was with U.S. Representative Kirk from Illinois, yesterday, June 9, and is on you tube. He says the Chinese have funded and are planning to buy $80 billion worth of gold.

What's really interesting, is someone saw the same interview today on Fox, and they edited out the last part about buying gold!

Part of the original interview transcript is as follows:

"China has lent about $300 billion to the US for Fannie Mae and Freddie Mac. They're very worried about that; another $700 billion in treasury bills. And. they're particularly worried about the feds new policy of buying treasury debt. Cause they're worried that one part of the federal government is buying another part of the federal government. Sounds like printing money... They already are beginning to hedge. I think they expect quite a bit of inflation in the United States next year, so they made a major investment.

****They funded a second strategic petroleum reserve and they plan to buy $80 billion worth of gold. That's two Fort Knox's. Both of those investments only make sense if you expect significant dollar inflation.****"

Here is the original video with the remark about gold: you need to goto 3:24 to hear the gold comments (last 5 seconds of the video)

http://www.youtube.com/watch?v=PUl9DedlQJw

More: Russia May Swap Some U.S. Treasuries for IMF Debt
June 10 (Bloomberg) — Russia may switch some of its reserves from U.S. Treasuries to International Monetary Fund bonds, the central bank said today. The comment drove Treasuries and the dollar lower. Alexei Ulyukayev, first deputy chairman of Russia’s central bank, said some reserves may be moved from Treasuries into IMF debt, reiterating comments made last [...]

Warring out of depression

Great article published today on Feral Scholar, by Stan Goff:

"The irresistible, if not totally accurate, comparisons of Obama’s administration with that of the lionized FDR ought to include the decisive masterstroke of the cunning patrician Franklin Roosevelt to leave behind the Great Depression once and for all: war. We always hear about the Works Progress Administration and other quasi-socialist measures taken by Roosevelt’s government, but the real exit strategy from that bout with general deflation was to build the US military-industrial complex, financing it through indebting other war-weakened allies.

Under their own circumstances, the New Dealers had the good fortune to enter the war by phases; first letting others take the brunt of the war — Europe as a battleground, and in particular the USSR, which would surrender around 27 million souls to the charnel house of WWII to debilitate the Wehrmacht — second, becoming the supplier of materiel, thereby indebting the rest of the Allied world while enriching the US prior to actual participation in combat, then finally, entry into the war against a bled-out Germany and Japan to ensure the US would be occupying key terrain in Europe and Asia as a preface to filling the vaccum left in the wake of the imperial collapse of UK and France.

Everybody loves Obama, because he sounds more reassuringly intelligent than George W. Bush even as Obama retains many of the very worst aspects of the Bush regime. Hey, he is the first Black Prez, he picked Carolina as this year’s basketball champs, and he could charm a badger.

But Obama is planning to use war as his deus ex machina, too. His war is to be the Pakistan-Afghan-Iran War, with Iraq stuck to his shoe. (He is not “withdrawing” from Iraq; and has stated that he hasn’t the least intention of doing so, unless one considers a force of 30,000 troops to be a non-occupation.)

Roosevelt used Keynesianism at home and war abroad to save capitalism. But Obama is not inheriting Roosevelt’s circumstances; his war will fail, and his “Keynesian” measures remain so contaminated with neoliberalism’s residues that it will leave the US domestic economy in a shambles that his dangerous (potentially nuclear) military adventures will only exacerbate.

Obama is applying an anachronism in his emulation of FDR, and compounding his foolishness by taking a page or two from the LBJ/Nixon playbooks for Vietnam, as we see in his nomination of the smooth-talking torture-chief and “unconventional” warfare commander, Stanley McChrystal, to head up the Afghanistan-Pakistan surge, coming soon to a theater near you. The Phoenix Program redux… writ larger still.

I shouldn’t blame Obama; and I don’t really. But he’s the name and address where the buck stops these gray days as the foundations of the Empire crack: pyramiding debt, weakening dollar hegemony, and the myth of American military invincibility unmasked. He gets to be at the helm during that ambiguous phase where he is subordinate to domestic political forces that are still in place but threatening to go under — Wall Street on the one hand, and an increasingly anxious Suburbia that delivers votes for the candidates and policies that Wall Street approves. He’s mortgaged the future of the great political bloc of Suburbia in order to rescue Wall Street — from his perspective, and the perspective of all Chief Executives of the US state, an inevitable decision.

It is that inevitability that defines Obama’s powerlessness… and the powerlessness of us all here in the wounded core nation.

The lethal cross-border attack on the Abi Talib mosque in Iran week before last, launched from Pakistan’s volatile Balochistan (on the Iranian side, called Sistan-Balochistan province), demonstrates the ethnic permability of political borders in the region, and why Iran will inevitably be drawn into the Obama’s Laos-Cambodia gambit. (There was another attack in Peshwar yesterday, on a hotel.)

Obama is gambling on Balochistan, even if the press completely ignores it. He needs his war (now called “Overseas Contingency Operations,” which should cause the Bush spin-meisters to blush with envy) as a means of bootstrapping the American economy; and the case for Balochistan is overdetermined by several factors. From Balochistan and the New World Order (2006):

Balochistan has only four percent of Pakistan’s population, though it occupies 44% of Pakistan’s land mass. Like its neighbor, Afghanistan, it is populated by religiously conservative ethnic Pashtuns living in extremely rugged and mountainous terrain. Like its neighbor, Iran, it possesses a geologic relic in abundance: fossil fuel, in this case the Sui natural gas field that produces 45% of Pakistan’s supply. It also contains a warm water port — Gwadar — only 70 kilometers from the Iranian border…

…there are suggestions that well-armed Balochi nationalists will soon be assisting in a fresh Taliban offensive against NATO occupation forces.

And so Obama enters the Great Game. But it will yield neither pacific compliance from Southwest Asia nor the war-profit at home. Those ships sailed a long time ago.

As America needs most desperately to re-tool its entire environment from our current abject dependence on peripheral loot (including fossil hydrocarbons), the political establishment — dominated in the end by demagogues — will continue with the equivalent of enabling addicts with comforting lies and provision of the drugs of choice. That the drugs will run out — and this is sure — is the decisive reality that ensures Obama’s failure.

But failure — terrifying as it may be — is not nearly so awful as the unintended consequences latent in fueling war in this highly strategic and volatile situation.

While the world stands breathless before Obama after his speech in Cairo, one where a head of the US state (atypically) acknowledged the basic humanity of a billion Muslims, reviving hope of some new direction for the world, this war that could even make eventual allies of Iran and the US is already rippling through the fragile demographic and political condition of Pakistan, where nuclear weapons are readied in their bunkers, and anti-Muslim Hindutva nationalism threatens a hostile resurgence in nuclear-neighboring India. The world’s second largest nation-state, India, is awash in Hindutva reactionaries who identify their masculinity with “The Hindu Bomb.” (For a more in-depth look, albeit slightly dated, see “India Takes the Stage” — Part 2.)

While the Abi Talib attack and increasingly frequent acts of political nihilism by violent Islamists have redirected Pakistani ire, for the moment, away from the US over its drone attacks, with their terrible civilian casualties, and against the Taliban-aligned forces; this will not last. The US will inevitably encounter the limits of unmanned aerial attacks — both in cold-blooded efficacy and in the thresholds of tolerance for a people who watch the civilian casualties mount from this technological war of moral cowardice.

War is the economic recovery package of last resort for superimperialism (now morphing into exterminism). It is already on the table.

Plenty of changes. Not a lot of hope. Source

We use gasoline just because of a conspiracy

From Rense, (hat tip to Dprogram):

"Oil companies like Chevron have pressured PBS, commercial TV networks and other news media to keep this basic information from the public for decades – and the censorship continues to this day.

We Don’t Need Gasoline, Never Did

Facts: Scientific and historical about gasoline and alcohol

1. The original automobiles ran on alcohol because when they were invented gasoline was not available.

2. Rockefeller spent $4 million (that we know of) to promote Prohibition, a ban on alcohol manufacturing in the US that started in 1919 just as the car industry was taking off.

3. When Prohibition was lifted in 1933, gasoline stations were ubiquitous and most engines ran on gasoline only.

4. Alcohol can be manufactured locally and on a community level from renewable plant material for $1 per gallon.

5. The growing of plant material for alcohol would have no effect on the price of food.

6. The growing of plants for fuel would more than neutralize the carbon created by burning alcohol for fuel.

7. In Brazil, over 50% of new cars sold can already run on 100% alcohol.

8. Producing alcohol from plant material is incredibly energy efficient.

9. The oil companies aggressively promote garbage science to deceive the public into believing that alcohol fuels: a) will cause starvation, b) are uneconomical, and c) are net polluters.

10. Gasoline is a high toxic material.

11. It is entirely unneeded to fuel our cars.

12. Oil companies like Chevron have pressured PBS, commercial TV networks and other news media to keep this basic information from the public for decades – and the censorship continues to this day."

More at: http://www.PermaCulture.com

(my addendum): I would add that even the first diesel engine was designed to run using vegetable oil (and many diesel owners still use it, myself included -in reasonable proportions).

You can find on the net a similar story about the success of nylon following the prohibition of hemp/weed (which was largely used to make almost anything, from paper to clothes, very economically). Even in this case I seem to remember that Rockfeller was one of the main supporters of the prohibition and main beneficiaries of the consequences.

London's Metropolitan Police accused of waterboarding suspects

Metropolitan Police officers subjected suspects to waterboarding, according to allegations at the centre of an anti-corruption inquiry.

The torture claims are part of an investigation which also includes accusations that evidence was fabricated and suspects’ property was stolen. It has already led to the abandonment of a drugs trial and the suspension from duty of several officers. WRH permalink

italian police seized 134 billions US$ in bonds to two japanese

Strangely, I did not find this news on any english language source.
Here is the official communication from the italian financial police

Google translation here

More about it (in italian only) on Google news

Update: More (in english) on Asianews.it

More on Cryptogon

Wired magazine examines E-Gold founder and his trouble with U.S. government

Wired magazine has published a long and sympathetic treatment of E-Gold founder Douglas Jackson and his trouble with the U.S. government, headlined "Bullion and Bandits: The Improbable Rise and Fall of E-Gold," and you can find it here: http://www.wired.com/threatlevel/2009/06/e-gold/

True or False: U.S. Economic Stats Lie

Smart Money magazine has published a profile of John Williams, proprietor of the Shadow Government Statistics Internet site, who long has documented how the U.S. government has been falsifying economic statistics. The profile is headlined "True or False: U.S. Government Statistics Lie," and you can find it at the Smart Money site here.

Quote:
"...If Williams is right, unemployment is over 20%, gross domestic product is shrinking by 8% and consumer prices are jumping by nearly 7%. His forecasts border on apocalyptic. The government is creating so much new money, he says, that the all but inevitable result is hyperinflation, where “your highest denomination, the $100 bill, becomes worth more as toilet paper than money.” Buy physical gold, he advises..."

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Protect Your ASSets: Buy Gold or Silver NOW - If you wait you will be late.
(He who panics first, just may salvage something.