I told you to watch for the “even” numbers and the dollar has now dropped below the all-important 80 level and today closed at 79.70. Next up, gold at $1800.
Here is an email I received yesterday that I found very unsettling and without any merit. There are numerous topics that I try and avoid, and this is one, but I think this particular email should be published for reasons that will become obvious. My answer will be “respectful,” and factual.
Have you checked foreign aid the U.S. pays and that Israel has received over 1 Trillion dollars in military and aid from U.S. tax payers last year to support their Socialist government which has Socialistic Single Payer Free to Israeli citizens with abortion provided. I thought you conservatives hated socialism except I guess in Israel. Just think, at that rate of over 1 Trillion dollars per year from the U.S. our national debt would be paid off if we stopped supporting a Socialist Israel and used just that one country. The gangsters in Israel and the bought off politicians and the 5TH columnists in the U.S. won’t allow that to happen. You never mention that fact when discussing the National Debt. WHY!
I shouldn’t even dignify your email with a response, but you asked me, “WHY” I never mention this fact when discussing the National Debt.
Who cares if Israel’s government is more socialist than ours? It’s none of our business. So are France’s and many other of our friends. And what about all of the aid and support we give to radical Islamist governments form Libya to Egypt or to dictators in Saudi Arabia and Yemen? But you are only concerned with Israel, our only real friend in the strategically vital Middle East.
I understand that you believe we are wasting taxpayer money with our foreign aid, and in most cases that is absolutely true. But why pick on Israel, our only true friend in that neck of the woods and also an ally – and we have very few left in the Middle East.
What does abortion have to do with anything that I write in this newsletter? Personally, I am pro life, but have stressed repeatedly that it should not be a “political issue.” As for me being “conservative,” well actually I am Libertarian and would have voted for Ron Paul if given the opportunity.
Now let’s get to the meat of your allegations. Did you know that Israel is NOT the number recipient of our foreign aid? Don’t believe it huh? If you do a little research on your own, instead of forcing me to do it for you, you would find that Afghanistan is number one and if that isn’t throwing our tax money down a rat hole I’m not sure what is. Israel is number two. How about our aid to Libya and Egypt – where they are storming the US Embassy and in Libya where they killed the US Ambassador? These governments and their populace are blatantly anti-American. But you would rather pick on Israel. That’s your right, but if you do, then stick to the facts.
More to the point. Everyone makes errors and everyone is entitled to a mistake. Even you are. But your error is one of THREE DIGITS! Your trillion in US military aid to Israel in 2012 is so far off that you should be embarrassed. Three digits! The total US military aid to Israel in 2012 is around $2 billion! Your number is only off by a mere one trillion, eight hundred million. Wherever you go for this information, well you should look for another source! All you have to do is Google “US military aid to Israel in 2012” and you will find dozens of articles that give you the correct number. I did that, and even sent you several links.
But I felt I should go even further. I happen to be friends with a former Lt. Colonel in the Israeli Air Force and after retiring from running a major air base over there, he spent some time as a Liaison between the Israeli government and the Department of the Navy. His job was to procure military aid! He re-affirmed to me today that the number is in fact around $2 billion. What you don’t know is that around 40% of that number is held back and rebated to the Pentagon and the US suppliers who must be used as contractors. We get almost as much benefit form the military “aid” as the Israelis do. A case can be built that Israel would be better off without the “aid,” because they could use their own factories and work force to produce their own military hardware, and are perfectly capable of doing it, which would be a nice boost for THEIR economy. And then there would be no strings attached. Thought you should know that.
I try not to be pro or anti-Israel and strive to remain impartial, but you seem to be clearly in the “anti” category. You asked me why I don’t discuss this topic, so here it is, just for you. As for my readers, all of you already have your minds made up. You are either pro or against and nothing I write will make the slightest bit of difference in your pre-conceived views. It is not my job to convince you one way or the other, but I feel obligated to present the facts. That’s what you, Political Bob asked me to do and that’s what I did.
While I’m on the subject of emails – here is one I received from my dear friend, Backwoods Jack, whose commentary has been sorely missed by our readers of late. I sent Jack the following email from Jim Sinclair:
September 12, 2012, at 6:27 pm
by Jim Sinclair
Jim Sinclair’s Commentary
You have been informed of this growing trend toward a decline in the use of the dollar as the international settlement currency for 2 years.
That is the benefit a reserve currency gets in the demand for contract settlement written in the dollar. This is the footprint that can be identified as the US Dollar now a reserve currency by default, not choice. It is the beginning of the end of the reserve role.
China And Russia Are Ruthlessly Cutting The Legs Out From Under The U.S. Dollar
The mainstream media in the United States is almost totally ignoring one of the most important trends in global economics. This trend is going to cause the value of the U.S. dollar to fall dramatically and it is going to cause the cost of living in the United States to go way up. Right now, the U.S. dollar is the primary reserve currency of the world. Even though that status has been chipped away at in recent years, U.S. dollars still make up more than 60 percent of all foreign currency reserves in the world. Most international trade (including the buying and selling of oil) is conducted in U.S. dollars, and this gives the United States a tremendous economic advantage. Since so much trade is done in dollars, there is a constant demand for more dollars all over the globe from countries that need them for trading purposes. So the Federal Reserve is able to flood our financial system with dollars without it causing a tremendous amount of inflation because the rest of the world ends up soaking up a lot of those dollars. But now that is changing. China and Russia have been spearheading a movement to shift away from using the U.S. dollar in international trade. At the moment, the shift is happening gradually, but at some point a tipping point will come (for example if Saudi Arabia were to declare that it will no longer take U.S. dollars for oil) and the entire global financial system is going to change. When that tipping point comes the global demand for U.S. dollars is going to absolutely plummet and nightmarish inflation will come to the United States. If such a scenario sounds far out to you, then you have not been paying attention. In fact, China and Russia have been working very hard to move us toward exactly such a scenario.
Backwoods Jack wrote me back:
Sorry, no cigar!! We get a minor downturn and Sinclair’s lacy panties get bunched up. Dollar Index still around 80 + or – An American ambassador is murdered in the Middle East and gold goes down. Go Figure!! Russia, China and Saudi Arabia just a bluff. They could not afford to lose our buying power. China sitting on a glut of goods, Russia was just admitted to the WTO and the Arabs are scared shitless that Romney may take Trumps advice on dealing with the Kingdom. They need our technology to ward off their enemies, the Shiites. I know your busy writing your daily report and have little time to expand other sources other than your circle of fatalists. I want gold and silver to soar and will load up when cabin sells.
I am not about to belittle Backwoods views here, and he is really just like most of your friends and your family. Most people just don’t want to see the truth when it is not uplifting. Backwoods is no different, in fact he is exactly like most of the people that you know and so are his views.
I do give him credit for understanding that buying gold and silver is a wise thing to do. He understands the solutions, but not the root cause of or the severity of the problems.
Backwoods is right, I don’t have the time to check out “other MSM sources” and I do spend my time with the “kooks” like Richard Russell, Jim Sinclair, John Embry, John Williams, Jim Wiley, Bill Murphy and the likes. You can also choose whose information you believe is more important to your well-being, MSM or the people I present to you every day.
There is a lesson in all of this – you can take a horse to water but you can’t make him drink. You can try to educate and help your friends and family, but it will all be to no avail. Most people don’t want to acknowledge that most of the world hates Americans. They are envious and jealous plus we have done one Hell of a job in pissing them off and screwing up THEIR lives. The inflation we “export” was the fuel for that hideous event we call Arab Spring. We replaced US friendly dictators with angry fundamentalist regimes. If you think, for one moment, that the Muslim Brotherhood is good for the US then I can’t help you. Sorry Mr. President, but I call em as I see em. Most of the world would like nothing more than to see the dollar de-throned as the world’s reserve currency. Then we wouldn’t be able to finance our global imperialism and would have to bring our troops home from the 130 foreign nations where they are currently stationed. That wouldn’t be all bad, you know. Ron Paul would certainly agree.
Here was my retort to Backwoods email:
Get some meat “tenderizer” because you will need it to sprinkle on your comments when you are forced to “eat your words.” Wish you were right, I really do, but you are in the dark on this topic and as usual, refuse to acknowledge the facts.
Love and kisses,