Watch out for those terrorists!
I’ll tell you what I’m concerned about now. It’s not the train wreck called Obamacare. It’s not QE. It’s not the government’s inability to agree on a budget. I’m very concerned with our ill-fated policies in the Middle East.
The Saudis are furious over Obama’s policies in Iran, Syria and Egypt.
He backed away from his threat to use military force against Assad. Right or wrong, he has not supported the Sunni opposition.
He has done nothing to curtail Iran’s march toward becoming a nuclear power. Sitting back and talking about it allows Iran the time they need to become a nuclear nation.
We supported the Muslim Brotherhood, which was another slap in the face to Saudi Arabia. In the early 1970s we promised to support and protect the House of Saud in exchange for their pledge to sell their oil only in dollars. They have lived up to their end of the bargain, but this administration has taken the other side of all of these issues. This is bad news for the US dollar. I have discussed this for many years and it is an absolute fact that if (when) the dollar loses its petro-dollar status it is the worst possible event for our economy and the dollar. This is a very precarious situation. Below is an article from Greg Hunter at USAWatchdog.com:
Greg Hunter’s USAWatchdog.com
The big story this week is Saudi Arabia and what its officials there are calling a “major shift” in relations with the U.S. The Saudis are outraged over how the U.S. is handling the Syrian crisis. The Kingdom is also angry with America’s increasingly cozy relations with Iran. One official said the U.S. was “blatantly perfidious.” That’s a nice way of saying the U.S. was untrustworthy and disloyal. Please keep in mind Saudi Arabia has been a staunch ally in the Arab world, and that looks like we have major trouble coming. Why, you ask. Ever heard of the “petro dollar”? If it were not for Saudi Arabia, that term may have never come into existence. It was Saudi Arabia that first started using the dollar as the exclusive currency with which to buy its oil. The rest of the world followed suit, and it’s been that way ever since the early 1970’s. If Saudi Arabia starts taking payment in other currencies, you can kiss the dollar good bye as the world reserve currency. Inflation would be a huge problem, as countries around the globe would no longer need dollars to purchase oil. Those dollars would come home in a torrent, and inflation would spike sky high in a hurry. Many are brushing this off as a little tiff because they say the Saudis need U.S. military equipment and protection, but I am not so sure. This is bad to be reported publicly in the press this way. One of my sources says this is “extremely dollar negative.” Another thing to consider, the Saudis hold hundreds of billions of dollars in Treasury bonds. What happens if they stop buying and start selling those bonds? Another source of mine says they have to do this to survive being overthrown. Whether they are angry, afraid of being overthrown or both, this is very bad for the U.S. dollar.
Iran is just weeks away from the “breakout” after which it will be too late to stop them from building the bomb. Israel is willing to do what Obama won’t – use the military option to keep Iran from acquiring an atomic bomb. When it comes to a choice between world opinion and their very existence, their choice is clear. You may agree or disagree, but it really doesn’t matter. What they do matters. An Israeli attack on Iran’s nuclear facilities will ignite the price of oil and gold…the Middle East may well go up in flames. Saudi Arabia would be happy to see Israel attack Iran. They’re upset with Obama for not taking the lead. Dick Cheney is urging America to use force to stop Iran and says military intervention may be necessary. Here is an article below from USA Today:
Oren Dorell, USA TODAY 7:17 p.m. EDT October 25, 2013
A new report that says Iran may need as little as a month to produce enough uranium for a nuclear bomb is further evidence for why Israel will take military action before that happens, an Israeli defense official said Friday.
“We have made it crystal clear – in all possible forums, that Israel will not stand by and watch Iran develop weaponry that will put us, the entire Middle East and eventually the world, under an Iranian umbrella of terror,” Danny Danon, Israel’s deputy defense minister told USA TODAY.
According to an article below published by Newsmax, Dick Cheney said, “Military Action Against Iran May Be Inevitable.”
Sunday, 27 Oct 2013 04:26 PM
By Amy Woods
Former Vice President Dick Cheney said Sunday that negotiations with Iranian leaders about their country’s nuclear program will fail unless there is a threat of military action by the United States.
“I have trouble seeing how we’re going to achieve our objective short of that,” Cheney said on ABC’s “This Week,” after being asked if military action was likely. “I don’t have a lot of confidence in the administration to be able to negotiate an agreement. I talked to my friends in that part of the region. They’re very fearful that the whole Iranian exercise is going to go the same way as the Syrian exercise, that is, they’ll be bold talk from the administration, but in the final analysis, nothing effective will be done about the Iranian program.”
Cheney said if President George W. Bush had acted with force to take out Syria’s nuclear reactor the way the Israelis did in 2007 “we would have sent a clear signal about proliferation.”
“We would have given substance and meaning to our diplomacy,” Cheney said. “The Iranians would have to look and that and say, ‘These guys are serious about it, they mean business,’ and we’d be much more effective today negotiating with the Iranians if we’d taken out that Syrian reactor seven years ago.”
Gold is finally starting to catch some positive press. Mark Faber thinks gold has bottomed. I believe he is correct.
Submitted by Tyler Durden on 10/27/2013 13:54 -0400
“Since September 2011’s $1921 peak, gold has been in correction mode,” Mark Faber tells Barrons in this brief clip, but the overwhelmingly bearish sentiment combined with the major accumulation (most notably by China) means “gold prices have probably bottomed,” and some gold mining stocks are well positioned. While Faber has recently expressed concern at the potential for a major correction in stocks, he notes that there are pockets of value worth investigating including European Telcos and Indo-China travel-related stocks. However, the Gloom, Boom & Doom report writer warns that “stocks could be dead money for a while.”
There are so many events that are gold friendly. Out of control government debt; massive money creation by the Fed and a majority of the world’s major central banks; the drag on the US economy courtesy of Obamacare… and especially the probability of a war between Israel and Iran that will drag the US into the conflict. Everything I see tells me we are running fast out of time and options. As Jim Sinclair says below, the Great Leveling is coming and it will be followed by the Great Reset. GOTS (Get out of the system and do it now).
Posted October 27th, 2013 at 12:06 AM (CST) by Jim Sinclair
Jim Sinclair’s Commentary
The “Great Leveling” is certainly coming before the “Great Reset.”
Economist Caution: Prepare For ‘Massive Wealth Destruction’
Take immediate steps to protect your wealth . . . NOW!
That’s exactly what many well-respected economists, billionaires, and noted authors are telling you to do — experts such as Marc Faber, Peter Schiff, Donald Trump, and Robert Wiedemer. According to them, we are on the verge of another recession, and this one will be far worse than what we experienced during the last financial crisis.
Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”
Faber points out that this bleak outlook stems directly from Federal Reserve Chairman Ben Bernanke’s policy decisions, and the continuous printing of new money, referred to as “quantitative easing” in the media.
Sinclair’s “Great Leveling” is a collapse of the US dollar. His “Great Reset” is the introduction of a new reserve currency, replacing the US dollar and partially gold backed. Of this he has NO doubt! Get out of dollars, get out of the banking system, acquire a lot of gold and get assets out of the country while you still can.
If it seems like we keep repeating the same thing over and over it’s because we are. The issues are clear-cut. Your choices are simple. Stay in the system and stay in dollars, or don’t. The Chinese and Indians have made their choice. Gold and silver yes, dollars no.
August and September were very slow months for everyone in our industry. Many gold firms lost money, but our volume is just about the same as last year. We’re more than holding our own. I attribute it to the high quality writing we present from Andy Hoffman and Bill Holter. Our readers know what is going on and understand what has to be done.
Business has picked up in October. After a slow summer, gold and silver buyers are returning. People may still be nervous about buying gold and silver, but they are even more concerned about the fate of the dollar. Which they should be.
According to Bloomberg…
The U.S. Mint sold 38,000 ounces of American Eagle coins so far this month, almost triple September’s total, data on its website show. Gold holdings in exchange-traded products rose by 6.5 metric tons on Oct. 22, the most since October 2012, according to data compiled by Bloomberg.
–Moneynews.com, October 24, 2013