goldmap

The Obama Doctrine and the bogeyman du jour- 8/30/14

 

"There is no possible reason why the U.S. would not let the Germans see their gold.  It’s not ‘a security issue.’  Its Germany’s gold.  The whole thing is preposterous.  However, it is a security issue if the vault is empty or damn near empty.  Then you can’t let the Germans in because it really is a security issue.  So when a country is backed into a corner the way the U.S. was with regards to the German gold, well, desperate times call for desperate measures.” -- Grant Williams, 8/19 in a Kingworld News interview

 

Dear All,

Let's begin with this video of St. Louis police murdering a man. The victim, 25 year-old Kajieme Powell was accused of stealing items from a convenience store. He had no gun and according to police had threatened the officers with a knife. There was no attempt by the officers to extricate themselves from any threat nor were they in imminent danger. They made no effort to buy time or diffuse the situation. Instead they opened fire at close range within 20 seconds of their arrival at the scene and did so with deadly intent. While the government is attempting to scare the bejeezus out of you in order to justify increased state authority, it may interest you to know that you’re eight times more likely to be killed by a police officer than a terrorist.

For the past several years and as recently as this July post I have been bringing to your attention the disturbing and growing trend of the militarization of the country's police forces. Then, in Ferguson, Mo. last month this happened:  

 

First a fashion question: What's with the camouflage suits?  The subject terrain is asphalt, 7-11 and KFC. These goofballs (and they are goofballs) are wearing grown-up versions of the Halloween costumes and GI Joe outfits of their youth. Aside from the live ammo, little has changed for them. 

The Dept. of Homeland Security has since 9/11/01 been providing police departments with grants for the procurement of military equipment for "terrorism preparedness." At the same time, under its 1033 Program the Pentagon has since 1997 transferred over $5.1 billion worth of military hardware to state and local law enforcement. Not surprisingly there are now over 80,000 police SWAT raids per year in the U.S. yet until the disgusting display of militarized police force in Ferguson, Mo. this month few Americans have raised much objection. Because cowards freely relinquish their civil liberties in order to feel "safe," boobus massachusus applauded the military lock-down of the entire Boston metro area amid the pursuit of the two Marathon bombing suspects. The post 9/11 hysteria engendered an acceptance of a militarized country in which Americans trade their personal freedoms for protection wherever they are told that danger lurks. Personally, I'd prefer to be backpack-bombed than consent to such a thing but in a 2012 Harris poll nearly one third of Americans stated that they are willing to be subjected to a body cavity search by the TSA in order to feel safe when they fly.

But in Ferguson, unlike in Boston the police turned their military machinery on civilian demonstrators. Perhaps the Ferguson events will retard the militarizing trend -- perhaps at least until the next bogeyman appears (actually, the fear merchants have already rolled out their latest version) and the U.S. citizenry recoils once again, acquiescing to whatever the State informs is in the public's best interest. Nothing should terrify you more than the idea of the government looking out for your best interest.

Now let's suppose you've observed the heavily fortified police with their impressive body armor and thought-- perhaps they're onto something...perhaps the streets are more dangerous than I've realized... Maybe I really ought to buy some protective gear for myself and my kids. Well, your federal government isn't going to tolerate that type of thinking: If passed by Congress, House Resolution 5344 will forbid you from purchasing protective body armor, making it a crime punishable by up to ten years in prison. Here's the official rationale: Because protective suits can be used by criminals in gun battles with police, law enforcement is placed in increased peril because protective armor worn by criminals potentially extends such exchanges. Got that?  Putting aside the state's concern for the welfare of its own agents over those of the public it is paid to serve -- this is really an extension of the folly of gun control laws which have no effect at keeping weapons out of the hands of criminals -- only those of law-abiding citizens. Imagine a conversation between two fugitives as they are loading up their Humvee for a blazing getaway with an impressive inventory of automatic weapons, assault rifles, hand grenades and ammunition. "I think we had better leave the body armor home; it's illegal now, ya know."

 

"Dont do stupid sh*t." ...War Hawk Hillary Clinton thus disparagingly described Barack Obama's articulated approach to foreign policy. If acurately attributed, this may actually be among the most eloquent approaches relating to U.S.foreign policy meddling since George Washington's farewell address of 1793.*  Seriously, this could be the one worthy dictate comprising the otherwise entirely incoherrant work-in-progress that fans of the President like to describe as 'The Obama Doctrine.' The problem though is that President Obama can't seem to distinguish between foreign policy sh*t and foreign policy Shinola, having undertaken as much of the former in his time in office as have these people.  

There are 150 countries in which U.S. troops are stationed --some to protect diplomatic personnel and corporate interests and some for more overt and nefarious activities. In the most benign of circumstances this creates resentment and bitterness toward the U.S. In cases where the U.S. has backed dictatorial regimes the result is a generational hatred of an America that is seen as having sponsored the tyranny people have been compelled to live under. So having stirred hornet's nests the world over the U.S. feigns surprise when radicalized barbarians arise out of the power vacuums it creates. There are only two possible political conditions in many of these countries: authoritarianism or chaos. Democracy (i.e. mob rule) as has been demonstrated by the utter disaster of the Arab Spring has no viability in tribal lands. By promoting it as a substitute for authoritarian regimes and arming rebel groups the U.S. has facilitated the overthrow of anti-Jihad dictators in Iraq (Saddam), Egypt (Mubarak) and Libya (Qaddafi) and engendered the most radicalized Islamic elements therein. A year ago in a New York Times editorial Vladimir Putin warned Americans about further destabilizing Syria.   

But if we insist on inserting ourselves into the affairs of foreign countries why do we continually pick the wrong side to support? It now appears the U.S. has decided we've been playing for the wrong team all along in Syria (West poised to join forces with Assad in face of Islamic State) and as Glenn Greenwald points out, it was only a year ago that U.S. Secretary of State John Kerry compared the man the U.S. is now (albeit reluctantly) allied with to Adolph Hitler. While vindicating Vladimir Putin, the turn of events must confuse John McCain terribly.

John McCain posing with members of Al-Queda controlled Syrian rebel group Al-Nusra Front

Senator McCain has never met a rebel group he didn't adore and the United States has been more than delighted to sponsor their ostensible democratic endeavors by furnishing them with assault weapons, grenades and rocket launchers, which have now come to very nicely fortify ISIS and other Jihadist groups. 

In light of the embarrassing and  Kafkaesque situation the U.S. now finds itself in Syria, the Obama administration is floating trial balloons in seeking to distance itself --via an AP report Tuesday -- from the fact that it is now fighting a group that only months ago it supported: "In an effort to avoid unintentionally strengthening the Syrian government, the White House could seek to balance strikes against the Islamic State with attacks on Assad regime targets."  

Give that a minute to sink in.  To demonstrate that it is emphatically not pulling an about-face, the U.S. will bomb Assad targets as well as ISIS.  'Switched sides?...uhh -- no, no not at all -- why...er..We're just keeping things fair, see?...Yea, that's the ticket...we're bombing everyone!' Someone is insane here and if this does not provoke in you a deep repulsion of the behavior of the United States government then I would suggest the afflicted party may well be you. As long as we're engaged with these people we've lost -- in the sense that "winning" these types of military engagements is a western-centric concept. Radicalized Islam's sole goal is war itself. For them fighting is victory. Russia learned this in what became a nine year guerrilla conflict with the people of Afghanistan.**   We're slow learners (with the caveat that in the end, war is always about money). 

So once again, with the media establishing the U.S.'s latest bogeyman -- ISIS (aka The Islamic State) by feeding gruesome images to the public 24/7, the table is being set for yet another futile bombing campaign against yet another radicalized group born out of U..S. imperialism.  Of course there are no similar images of U.S. barbarism but that is because in contrast with ISIS, the CIA does not allow cameras at its torture sessions. As Charles Pierce recently pointed out, while the U.S. may not practice beheadings, "that's a pretty low bar for an evolved democracy." No matter, boobus americanus is being told that beheadings will soon be at our own doorstep if we fail to "do something." If there is to be any break from the cycle of disasterous consequences resulting from U.S. meddling in chaotic parts of the world we must remain at home. Yes, they are savages -- yes, they behead and yes, it is monstrous (and yes, we armed them). However it will either continue with our participation or without it. This is what we have sewn. We cannot repair this with more bombs. It only empowers them.

 

The actual number of covert, sub-covert and affiliated covert agencies the United States operates is classified, although the few who ought to know have probably lost track. One thing is certain; there is a plethora of spooks and otherwise Grade B script writers with all too much time on their hands and excessive amounts of taxpayer money in their petty cash slush accounts. It all leads to counter-productive mischief that serves nobody's interest but theirs. What fun they must have receiving government salaries (plus all the cash they can steal from disbursements earmarked for "operations") while cooking up ways to amuse themselves. This particular caper was hatched by the U.S. Agency for International Development, whose ostensible purpose is to oversee humanitarian aid: AP: US sent Latin youth undercover in anti-Cuba ploy.

You just can't make this stuff up. At least the United States government has the good sense to fudge economic data before it's released. The Canadians really need to send some of their pencil-pushers to intern at the U.S. Bureau of Labor Statistics to learn the 'ins and outs' of government data-doping: Canada Releases Atrocious Jobs Data; Then Revises It above the Highest Estimate Following Public Outcry

And then there is this: Fact or Fiction: US Treasury agents go undercover posing as Russian businessmen

 

This month marks the fortieth anniversary of Richard Nixon's resignation from the U.S. Presidency and the commencement of the post-Watergate campaign finance reform era. Four decades later the American political system has never been more corrupt. Well intentioned people however continue to waste their time discussing further "reforming" of campaign laws and layering additional anti-corruption legislation upon existing layers already in place. It is all a pointless sideshow that detracts from the real issue; as long as there are obscene amounts of money swirling around government the corruption cannot be controlled. A mountain of sugar draws ants. Step on as many as you wish but until you remove the sugar or at least reduce the size of the mountain the ants will continue their march. Total government expenditures  (federal, state and local) have ballooned from $453 billion in 1974, the year Nixon resigned to $6.3 trillion today. The ants have never been happier.

 

Think the labor market would be a problem? Try the derivatives market: Jackson Hole Theme: Labor Markets Can’t Take Higher Rates - Bloomberg

Janet Tavakoli, who has been featured here on several occasions, is one of the world's experts on derivatives -- the systemic time bomb underneath the financial system. Note her comment regarding the reception to her warnings.  Janet Tavakoli: The derivatives problem is bigger than ever

"When people like me speak up we're bullied...You speak up and you'll get nailed."

 

Why would you take investment advice from a former mafia boss? Because he likely has more integrity than the average Wall Street professional: CNBC: Mob boss calls a stock bubble. Mr. Franzese also sounds more competent. I'd prefer to share a foxhole with him than any banker.

 

The trend...

Russia’s Gazprom Neft to Sell Oil for Rubles, Yuan

 

Silver and gold...

Grant Williams succinctly summarized the obvious custodial gold Ponzi operation being run by the United States Federal Reserve. The difference between the victims of a private Ponzi schemes and those of a sovereign one is that there is a distinction between the ultimate victims (the people) and the official victims (politicians/government stewards). So the latter have similar incentive to perpetuate the lie as do the scheme's actual perpetrators.  

I conclude with GATA Secretary/Treasurer Chris Powell's latest update on GATA's Freedom of Information Act lawsuit and an appeal for contributions to assist with the legal costs. GATA is quite fortunate to be represented by and have Ted Olson as its legal counsel. I've often stated that given its counter-intuitive price action, I don't understand why anyone would be invested in gold today without believing that its price is heavily manipulated. This is your cause GATA is fighting for. Please support it.

"The Fed provided many records but, having secured an exemption for its most incriminating records, none of the records disclosed were of any interest. Meanwhile the State Department purported to be unable to find any gold-related records at all -- even as outside researchers were able to find such records on the department's own Internet site."

 

All the best,

Jeff

____________________________________

* Proclamation of Neutrality; 1793: "It is our true policy to steer clear of permanent alliances with any portion of the foreign world…”  

** Despite its overwhelming military advantage and lopsided "kill rate," Russia ultimately placed its tail between its legs and withdrew. Estimates of Afghans killed range from 900,000 to 1,500,000 vs. 14,000 Russians, a comparative casualty ratio of from 64:1 to over 100:1 at the higher end of the range. Russia's hardware superiority and military sophistication proved as futile in battling the terrain and will of the enemy as the disproportionate body count. By the end of the War the former Soviet Union had lost 451 aircraft (including 333 helicopters), 147 tanks, 1314 armored personnel carriers and armed infantry vehicles, 433 artillery guns and mortar and 11,369 cargo and fuel tanker trucks.

UPDATE: Farewell Petrodollar dominance - 8/14/14

Dear All,

This bit of news via Reuters overnight, which the mainstream press will surely downplay if even disseminate at all, could not be more significant to the future of the dollar, the gold price and future U.S. living standards.

The final straw in a pile of hubris, mismanagement and abuse that is knocking the dollar from the international reserve currency pedestal  may well be the ill-considered U.S. led economic sanctions of Russia.

President Obama, a former schoolteacher with a faculty lounge mentality understands none of this. Vladimir Putin by contrast is a hardened KGB operative with highly developed street smarts.

Which horse are you betting on?  

Reuters: Putin says Russia should aim to sell energy in roubles

Jeff

 

The Hannibal Directive and other moral tales - 8/9/14

 

Dear All,

One of my challenges is not making the blog depressing.  What is occurring in our political and financial world is dark stuff, both now massive and growing kleptocracies. What our government has evolved in to is really not surprising; it is the nature of government to steal form its people, the only variable is degree.*  When government is small there is less to steal, engendering less corruption and a higher quality of "public servant."  It was never a possibility that U.S. federal expenditures could reach $3.8 trillion without corrupting the political system to its core.  Then there is the financial system, which as has been covered here the past five years is a nest of government sponsored fraud run by banker Mafioso too powerful to criminally prosecute. It is all overwhelmingly depressing and I tire of writing about it as much as I tire of observing it.  So I thought I'd take a break to discuss this dearth of morality in the context of Gaza, which has become the site of the Olympics of moral judgment and which has resulted in a ubiquitous condemnation of Israel for its military conduct there.  

Governments are inhabited by politicians and bureaucrats; there isn't a government I don't detest and that includes Israel's. I also oppose all foreign aid and Israel is not exempted from that. Among the things that make Israel different from the United States though is that its government has no time or room for the type of global mischief making the United States practices. Israel is in a constant state of war-readiness or outright war and it has been that way for its over six decades of existence.  The country has its share of corruption and the attendant ethical lapses engendered by "government service," yet given its necessarily militarized mind set and in the face of constant threats and terror attacks from hostile populations on all sides, Israel maintains perhaps the least immoral government in the world.

The media drumbeat referencing the "innocent civilian" casualties incurred under Israel's air strikes in Gaza is a bit off the mark. Yes, they are civilians and yes, the children among them are certainly innocent but the adults are hardly clean-handed. For it was Gazans who in free elections in 2006 (agreed to by Israel under the 1993 Oslo Accords) chose Hamas to lead their government (which in turn promptly rejected the Accords agreed to by its predecessor, the PLO under which it formally recognized Israel). That these civilians now find themselves used by their chosen government as human bait (the term "human shield" also misses the mark) to draw Israeli bombs should come as no surprise to the Gaza populace which has in effect been drafted by its chosen leadership into a perverted form of military service. Hamas was a known quantity when Gazans rejected the more moderate PLO in favor of a dedicated terrorist organization whose very charter calls for the destruction of Israel. Hamas has not disappointed. It has reigned terror upon Israeli and far more upon its own people. 

Yet the civilized world and the mainstream media that informs it has forgotten that relevant piece of history or chosen to overlook it. This amnesia actually extends back much farther when it comes to the history of Israel and its hostile neighbors.  Media hyperbole abounds as Israel's use of defensive force is spun to a largely ignorant world as excessive. Among the preferred measures of moral equity thrown about is the disproportionate number of Gaza civilian casualties compared to Israel's. Thomas Sowell recently nailed the absurdity of this calculus by wondering if these body counters were "aware that vastly more German civilians were killed by American bombers attacking Nazi Germany during World War II than American civilians killed in the United States by Hitler’s forces?" There is far more inhumanity unfurled upon the Muslim world by other Muslims on a daily basis than has been inflicted by Israel in its sixty plus years as a nation. 

And that for the most part is the way the media presents and its audience reacts to Israel's response to attacks on its own civilian populations -- no context  -- no history. Then there are the Hollywood stars and starlets who decide to share their self-imagined insights with us. In one ironic open letter a trio of Spaniards determined that their country's sordid history of Jew hatred should not inhibit them from displaying their vapidity. Penelope Cruz, Javier Bardem and Pedro Almodóvar signed the letter published in the Spanish newspaper, Eldario and elsewhere accusing Israel of genocide. Subsequent to the letter's publication Ms. Cruz issued a "clarification" which read in part: "I’m not an expert on the situation and I’m aware of the complexity of it." And therein lies the problem with so many in their rush to condemn Israel -- they are admittedly clueless.

Among the most remarkable features of the Israel bashing is that a good deal of it is coming from the liberal Jewish intelligentsia in the U.S. It is my strong suspicion that much of this is a result of a discomfort with Israel's tough culture; it conflicts with their liberal sensibility of how Jews should behave. Israel is a war hardened country formed in the immediate aftermath of the Holocaust. There are no tougher people on earth. When we are starkly reminded that ultimately this tiny country will do what it needs to do to defend its people -- that it will only tolerate unprovoked rocket attacks on its own civilians for so long before it responds with deadly force -- some of us stand tall, some retrench.

So I take this opportunity to say what an insufficient number of people dare mention. This conflict is not between Israel and Gaza's Palestinians but between Muslims and Jews. It amounts to but a footnote in a centuries-old Muslim hatred of Jews (not reciprocated) that is perpetuated in Muslim culture because Muslim culture offers so little else. When ignorance is a culture's currency it fills that vacuum with the worst type of leaders, resulting in one in which the ignorant are victimized not by imagined enemies but by their own hatred.  Islam is a primitive and destructive culture devoid of healthy factions; if it had any you would be hearing from them. What Israel has done in Gaza it has had to do. Will it end the cycle of violence?  Certainly not. The dearth of voices condemning Hamas from whatever sane corners of Islam may actually exist is Exhibit A.  But Israel's defense of its people will make nothing worse for Israel and it has made itself more secure in the short run. World opinion? Israel has done what it must and will let the chips fall. But where they fall will in the end not alter Israel's imperative to protect itself. Born from the ashes of the Holocaust, it knows that it can rely on no one else to do so. Moral clarity?  Here's moral clarity: Every death in Gaza -- every civilian, every child dead or mutilated in the rubble that Gaza has become was brought on by the people of Gaza. It taunted Israel with rockets fired at Israeil civilian populations and allowed its leadership to place rocket launchers in homes where their own children slept. Shame on them. 

Finally, Pat Condell is a Catholic born -- British comedian, writer and open atheist. Watch this. You won't regret it -- unless you suffer from Judeophopia.

 

More...

Upon landing in the Middle East to negotiate a cease-fire Secretary of State John Kerry announced a $48 million "humanitarian Aid" package for Gaza -- virtually none of which will end up benefiting the Gazan people. The terrorist tunnels Hamas has built into Israel cost a reported $3 million apiece. This "aid" money will be used in three ways -- for tunnels, rockets and to line the pockets of Hamas leaders -- and all at the pleasure of the American taxpayer. Foreign aid you will recall, is the process by which the working people of rich countries transfer their money to the rich people of poor countries

 

The media's persistent anti-Israel media bias could not be better illustrated than in this hit piece, featuring UK television's Jon Snow playing the role of a pretend journalist. At the end of what is supposed to have been an interview of an Israeli spokesman Snow insults his subject with this accusation: "You don't have the courage [to speak to Hamas]!"  Charles Krauthammer on the other hand sets things straight as to Hamas' real agenda in Gaza. 

 

Writing in the current issue of The New Yorker, Ruth Margalit presents the rather plausible notion that Hadar Goldin, the Israeli soldier missing and feared captured by Hamas (and later declared dead by the Israeli Defense Forces) was in fact killed by I.D.F.  I endorse none of the implied subtext in Margalit's reporting; I pass it on only because it is if nothing else, interesting. Code-named "The Hannibal procedure" and de-classified in 2003, Israel has had a policy of killing its own soldiers as a last resort, in order to prevent their capture by the enemy: TheNewYorker: Hadar Goldin and the Hannibal Directive

 

The drumbeat of anti-Israel/Palestinian sympathetic articles and photos plastered all over the New York Times is neither coincidence nor novel.  Arguably the world's most powerful self-loathing Jewish family, the Sulzbergers have controlled The New York Times since 1896.  The paper has a long and dark history of anti-Israeli bias in its reporting and as this remarkable high school student documents in this TED presentation, its record of having suppressed reporting on the Holocaust is unambiguous and shameful. Anna Blech won first prize at the New York City History Day competition for her research paper, “Downplaying the Holocaust: Arthur Hays Sulzberger and The New York Times.”

 

Forget the media -- in less than three minutes this video neatly sums up the Gaza conflict.

 

Other matters...

Some former Cold War evangelists are actually among today's most reasoned and insightful critics of the Obama Administration's cavalier and dangerous provocations of Russia. Pat Buchanan has written a number of thoughtful pieces on the President's juvenile playground antics: Is Putin Worse than Stalin?

"[W]hat motivates those on our side who seek every opportunity to restart the Cold War?...Who is the real problem here?"

 

And the Editorial of the Year Thus-Far Award goes to Germany's Handelsbatt, which takes uncharacteristically sharp aim at President Obama's aimless sanctions and unproductive attacks on Vladimir Putin.

 

Prominent hacker Jonathan Zdziarski is warning that the NSA has a "back-door" to every iPhone. Anytime it chooses, you've got company: Forensic scientist identifies suspicious 'back door' running on every ios device

 

Why government is forcing tuition Costs higher

 

Traders compete in an arena that they understand is zero-sum. So it is somewhat of a wonder how large banks report consistent profits and near perfect results at their proprietary trading departments when -- if only by virtue of the large number of people manning these desks -- it is statistically impossible that these institutions employ such an abundance of geniuses. So what gives?  Welcome to the world of front-running, inside information and high-frequency trading theft: Perfect Pilfering -- A detailed exposé on how the market is rigged from a data-centric approach

 

What's missing from this headline and the substance of media reports about the gold and silver fixings is that the manipulation is constant and not limited to the London fixings.  Yes, the twice daily fixes are fraudulent rip-offs a-la Libor but the lock-down of precious metals is a 24/7 (Fed hosted) major bullion bank operation: Bloomberg: Deutsche Bank, HSBC Accused of Silver Fix Manipulation

 

As always,

Jeff

___________________________________

* Mencken referred to elections as "advanced auctions on stolen goods." It is among the reasons I refuse to vote, an activity I've described as placebo for the masses in which participants buy into the illusion that they are choosing something. I've been on the receiving end of political shakedowns and I know how the game is played. If it is ever necessary for me to "participate in the political process" I'll either need to deliver cash, a check or the bundled checks of others.  It's that simple. That reality is as good a reason as any to avoid the throngs of poorly groomed piereced and tattooed Americans waiting in line at polling places to pull levers, in the same way they line up for the buffets on cruise ships.