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Bill Holter wrote today of the upcoming squeeze; not in the PHYSICAL PM markets – although that’s coming, too, as sure as night follows day – but worldwide consumers, care of the recent surge in oil prices and interest rates.  We’re all aware that the impact of higher oil prices is GLOBAL in nature, but so are U.S. Treasury yields; by far, the most important rate-setting instruments on the planet.

Yesterday was the year’s lowest volume day in the U.S. equity markets; as Syria or not, we are amidst the most popular holiday week on the American calendar.  This is why the PPT was successful in pushing the Dow up while oil continued its moonshot and interest rates rocketed higher – with the all-important ten-year yield surging back to 2.79%.  Think about it; the year’s lowest equity volume day, a terrible “pending home sales” number, surging oil prices and inevitable Middle Eastern WAR – and still the Fed was soundly beaten in its “QE” efforts.  Just wait until the WORLD returns from vacation next week; not to mention, the September 5th G-20 meeting – when the fate of the dollar itself will likely be discussed.

Back to Syria, I’m reminded of what I wrote last March in “AN ODE TO W.”  I was on my feet screaming at the television – ask my wife – when Bush II announced the Iraqi invasion; as I didn’t just think, but knew it would turn out to be a seminal, nation-killing event in American history.  However, those were the “good old days” compared to what I foresee of the upcoming Syrian invasion; as I truly believe it may catalyze a 21st century version of World War II.

Not just Russia, but China itself and even Iran are vowing to back Syria; whilst traditional U.S. lackeys England and France are towing Obama’s coattails, as Israel lurks in the shadows – looking for any excuse to enter the conflict.  NATO says last week’s alleged “chemical attack” needs to be investigated before actions can be taken, but last night Obama claimed he was “convinced” Assad is responsible; and thus, MUST be punished.  How sad that people “hoped” for “change” when he burst onto the national scene in 2007; you know when he made this quote at a campaign interview…

The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation.

Boston.com, December 20, 2007

And finally, my Indian friend informed me this morning that gold is trading at the equivalent of $1,650/oz. (35,000 Rs/10 grams) – following last night’s Reserve Bank of India intervention in the Rupee/dollar market.  Essentially, this is an ALL-TIME HIGH for Rupee-priced gold, as citizens panic to get whatever they can find – in most cases via illegal smuggling.  And yet, in perhaps the dumbest MSM article of all-time, Forbes.com claims “Gold hits all-time high against Rupee, curbing demand, say analysts.”  It’s times like this when I simply throw my hands up in the air screaming, ‘how stupid is the human race?’