News & Analysis
DB Briefs: US Threatens Syrian Leader / The EU Needs More Centralization? / Gold's Irrational Rise?
U.S. and Allies Say Syria Leader Must Step Down
The United States and several of its major allies on Thursday called on Syria's president, Bashar al-Assad, to give up power. The carefully choreographed announcements came after months of popular protests and increasingly deadly reprisals that the United Nations commissioner for human rights said amounted to crimes against humanity by the Syrian authorities. ... "We have consistently said that President Assad must lead a democratic transition or get out of the way," Mr. Obama said in a written statement released Thursday morning after coordination with allies in Europe. – NY Times
Dominant Social Theme: The UN will make the world a better place, thanks to R2P.
Free-Market Analysis: We have covered this topic for some time now, as it became very clear to us that the global power elite, via the United Nations' broad powers to depose leaders of nation states, is intent on fast tracking the implementation of "democracy." Of course, prior to the UN adoption of R2P, nation states operated for the most part under the Treaty of Westphalia for centuries. In reality, R2P gives the Anglosphere enormous, worldwide powers. Any nation-state that does not obey the Anglosphere's dictates can now find itself on the wrong side of a massed international "coalition of the willing" led by NATO and fulfilling the strategic desires of the City of London, Washington DC and perhaps even Tel Aviv.
A Shaken Europe Looks for Bolder Fixes
A dramatic selloff in European financial markets on Thursday renewed fears that Europe's banks are too weak to withstand the Continent's debt crisis, increasing the chances that the region's leaders will be forced to pursue radical steps toward fiscal union in order to preserve their common currency. ... Germany and France presented the latest in a series of initiatives aimed at bolstering the euro zone's architecture. Investors immediately criticized the plan, which included steps toward tax harmonization and stricter budget controls. – Wall Street Journal
Dominant Social Theme: What we need is more centralization of power... more uniformity.
Free-Market Analysis: All of this illustrates amply that the EU fully intends to become a United States of Europe despite the long and ancient tradition of its member states, which, unlike the colonies, are cohesive tribal cultures that go back thousands of years. The parallels between the US, a political entity that has been around 200 years and Europe, which has been settled for some 10,000 years, are minimal at best. The more the EU bestrides Europe by trickery and legislative sleight of hand, the more it is likely resented by those it seeks to dominate. Initially, the EU was nothing more than a trading zone. Had its membership known that they were participating in the raising of an empire with 500 million inhabitants, chances are the EU would never have generated the level of cooperation necessary to survive, let alone thrive.
Gold Jumps to Record in Longest Rally Since 2007
Gold rose to a record above $1,860 an ounce, poised for the longest run of weekly gains since April 2007, as escalating concern the global economy is slowing drove equities lower and spurred demand for a haven. ... "The drivers of the gold price at this point in time are all future expectations, such as more global liquidity and worsening of the status quo in global GDP," said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. "Either the gold market has adopted a very negative, and in our opinion not justifiable, negative, Armageddon-like view, or it is building an irrational bubble." – Bloomberg
Dominant Social Theme: Gold's rise is irrational.
Free-Market Analysis: This is a constant theme being trumpeted by mainstream media. Earlier today, while watching the pom-pom show "CNBC Europe," we listened in amazement as Joe Kernan arrogantly diminshed gold as something he "just wouldn't want to own." Instead, Kernan would rather take the gold and buy a car because, as he says, "he doesn't have any cavities to fill." Do mainstream media pundits like Kernan not realize how ridiculous they sound? Gold is only "building an irrational bubble," as LGT's Dincer says above, for those who have no rational understanding of Austrian economics and monetary history. We suggest Kernan and Dincer go spend an extended period of time at the Mises Institute. Perhaps it wouldn't make any difference in what they say anyway.
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Posted by Merridth80 on 08/21/11 05:22 AM
We, The USA, needs to get out of the UN and mind our own business!!!
We can't afford to fight these skirmishes, and no one is going to pay us for protecting them, Especially When We Are the Aggressor's.
Does no one in DC have any brains or are they all sitting on them? For the good of our Country, Americans need to clean sweep all the Trash from DC. Start over with people who have at least read "The Constitution"!!!
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Posted by clark on 08/20/11 10:20 PM
10hawks said, "It should be clear that... "
Yeah, yeah, to those who are paying attention maybe, but not the majority of Western People. Cluelessness is a virtue these days.
Posted by 10hawks on 08/20/11 08:29 PM
It should be clear that an overt "NATO" attack on Syria, as opposed to the current proxy civil war in that
nation now being enabled by Western agent Saudi Arabia at NATO's behest, would spark a conflagration-- a 2011 Mideast War.
Such a move would be the excuse for Lebanese Hezbollah to attack Israel, as the Zionist cabal will be seen as the driving force behind this operation against their Syrian Shiite brethren.
It's unlikely Israel would not take advantage of an all out war with Lebanon, to finally launch the bombing of Iran, a long cherished goal of the belligerent Israeli power. Shiite Iran itself may want to reciprocate to protect their Syrian
ally. Of course the Palestinians would also be implicated, with an inevitable increased Israeli clampdown in the occupied areas and consequent militant reprisals.
Since "NATO" would be constrained to fight on Israel's behalf, we can speculate on the probabilities of global geopolitical open conflict-- both Russia and China have vital interests in Iran, besides being already more than peeved at the extent of 'Anglosphere's military operations in the region, along with the economic mayhem perpetrated by New York and London.
Time alone will tell how determined the fascist "money power" elites are to start a real world war, or how soon it
may break out in earnest...
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Posted by Summer on 08/20/11 06:03 PM
Thanks David. A very good link.
Surprise, surprise the debt-trap via IMF is doing its humanitarian work! It is just infuriating! Just yesterday I sent a donation, I only use Humanity First, as I know the vast majority of funds reach the needy, rather than in staff costs. In fact, my brother volunteered for them!
I heard that the in some African disaster areas there were massive, lavish houses and flashy cars - guess what? They belonged to Oxfam workers! I was disgusted to hear that peoples' generosity was being wasted in such a manner!
Anyway brilliant link, here are some important snippets:
"In Somalia's case (a nation once self sufficient in it's food production), the 'economic medicine' of the International Monetary Fund and the behest of colossal oil robber-barrens have contributed far more devastation than droughts towards producing the images of deprived and inebriated bodies you see on television."
'The loathsomely bias individuals which comprise the International Community, of whom are capable of feeding the entire African content with the loose change in their couch cushions, use today's reports of legitimate or fabricated human rights abuses in Africa and all over the world as a pretext for exercising avenues of modern imperial conquest in the morally bankrupt pursuit of private geopolitical, economic and militarily strategic gain... "
'Following the IMF-imposed austerity measures, Somalia began to grovel and churn by facing food shortages, record inflation and currency devaluation, to a point where a simple meal at a restaurant required paying with bundles of currency notes.'
'the nation of Somalia has been largely without a stable Government, after decades of intervention from foreign forces, the Somali people have been brought to their knees."
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Posted by David_Robertson on 08/20/11 05:21 PM
I agree Summer. Read this and weep: Click to view link
If only the people of the West knew what was being done and has been done in their name but dressed up in deceptive clothes I hope they would demand justice.
Posted by cat writer on 08/20/11 01:59 PM
Gold's rise IS irrational.
If markets ran on reason, then we would have had a bigger blowout long ago. We would not have a power elite in operation, and the United States would have been laughed into the dustbin of history.
Just because there are fundamental reasons for a market to move in a direction at a particular moment does not mean that people recognize or come to terms with those reasons. Action is by definition an emotional expression.
This is why technical analysis and trading methods work. The trader needs to maintain objectivity and discipline. The trader who sold gold for stocks in 1992/94 and sold stocks for gold in 1999/2000 would have been very successful indeed.
Posted by richard555 on 08/20/11 12:25 PM
To suggest that the "strategic desires" of the money power (or Anglosphere) are being implemented by a massed coalition of the willing for their own ends is accurate in my opinion. To suggest that Tel Aviv may be part of that decision making process smacks of Anti Semitism. Tel Aviv is involved only because they are useful to the real power out of New York, Washington and London. Are there Jews that are part of the "anglosphere"? Certainly there are some, which is pretty ironic in the light of history. But the real power that is trying to implement globalism only involves Tel Aviv when, and to the extent that the Israeli right wing can be useful to them. They have no love or use for anything or anyone that does not further their own cause. And Tel Aviv, for it's part, will take advantage of any help they can get for their own agenda from the " Anglosphere". But the money power has no Zionist agenda. They only have their own agenda and will use Zionism if it suits their purpose. Tel Aviv has no real power. Their only power lies in the areas where their agenda supports or coincides with that of the real power.
Posted by oldman67 on 08/20/11 10:08 AM
The US will only become involved in Syria if there is someting in it for them. Lives aren't that important but it is a good pretense for getting Click to view link is a shame that so many still can't see the real reason as to why the US and the UN want to get rid of Gaddafi.
Posted by memehunter on 08/19/11 10:58 PM
Alexsemen, I am reporting on an article published in the Guardian which I think should be of interest to readers here.
I don't know where you got the impression that I believe this. Anyway, apart from prefacing my comment with "speaking of irrationality", I wrote "Unfortunately, it does not seem to be meant as a joke".
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Posted by Summer on 08/19/11 09:19 PM
DB: "Any nation-state that does not obey the Anglosphere's dictates can now find itself on the wrong side of a massed international "coalition of the willing" led by NATO and fulfilling the strategic desires of the City of London, Washington DC and perhaps even Tel Aviv."
R2P: Excuse for smashing the only large-scale ideological alternative to 'democracy'/'the free world' - 'Muslim' states, and importantly: seizing, eventually all the lands Israel 'requires' (in Syria and Jordan etc) for its complete vision of the 'Holy Land' of old under King David.
I saw a documentary on Iraqi children on Press TV today - I felt extremely upset to see bright lives dimmed into the dust of rummaging through rubbish to survive. I am disgusted and angered. I have no words... only that my heart cries for justice against those who have caused so much suffering.
The culprits - a collaboration of many. However, Israel has the most vested interests (in the area) and AIPAC control of the 'muscle' (US) - They are the architects of what's occurring.
Now Israeli designs on war with Iran sees other 'Muslim' powers requiring dismantling/weakening (Syria inter alia) in order to be irrelevant entities during the planned war.
I want justice for the oppressed; I hope that I will see it one day.
Posted by John Danforth on 08/19/11 08:38 PM
Yep, let the games begin!
Posted by John Danforth on 08/19/11 08:36 PM
That will be seen as a panic move, and then all you'll get is gaps down every time the market re-opens as people wake up and start cashing out of their IRA's. Those that are left in there, that is.
Posted by Truthmeme on 08/19/11 06:01 PM
very important to know for all of us who want these WARS to stop: support Ron Paul and his money bomb this weekend to celebrate his 76th birthday. Send at least $20.12 for his 2012 Presidential celebration.
Click to view link
truthmeme
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Posted by David_Robertson on 08/19/11 05:42 PM
I told my sister four years ago to sell everything and buy gold or 50/50 gold and silver. She didn't and took a haircut. About one month ago I suggested that maybe she should sell everything and buy silver or 50/50 silver and gold. She hasn't yet because she feels nervous and her bank advisor says she shouldn't.
The point is my sister is Mrs. Average. For me she has always represented the sensible middle whereas I am the lunatic fringe, figuratively speaking. This is the same inertia that holds it all together and is probably a good thing. It is the same inertia that the elites count on to carry out their plans. It is the same inertia that works against Ron Paul but didn't work against Obama because although he called for CHANGE he must have said it in a way that the sensible middle KNEW he was just kidding. If they had believed him they would never have voted for him.
What we are seeing in the gold market is NOT a move by the sensible middle into gold. When that happens that can mean only one thing. THE END... THE BEGINNING.
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Posted by Col on 08/19/11 04:40 PM
Markets are obviously spooked, how long before someone realizes that suspending the markets on 5% drops "could" be an effective short term remedy.
I'm not advocating short duration Trading suspensions (1 -2 hrs) as the entire Financial system is a bust, in fact I don't even see it lasting to the point where Gold will hit $5000 per ounce, I think it will crash at $2000.
I'm just saying that the only option the market may have left is daily trading suspension on drops of 5%.
don't kill the messenger, I'm busy packing my rice.
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Posted by clark on 08/19/11 03:43 PM
In regards to gold, the truth is simply the truth - the Austrian Economists appear to be speaking truth to power - no one else seems to be.
Investors trade a commodity up over its true value before the "Oh,No " realization, however; gold Is more than simply a commodity.
Are Central Banks considered to be investors?
Gold will never be a bubble commodity just like the Tulips of Holland, a dried tulip turns to dust whereas gold still shines.
Not saying gold won't be a bubble someday, just that it is not the same as tulip mania. The mania aspect will be the same, the outcome will likely not be the same, as gold can continue to play a role related to currencies for the many reasons it is considered money.
Some might say, "Governments have successfully substituted one fiat currency for another e.g. Brazil in the 1990's." Only, the definition of "successfully" must be murky because things don't seem so successful right now. Just more can kicking.
I wonder if gold will sell off a bit when China's stock market crashes? Or will that event be another boost?
In the meantime, much of the world sings, "All you need is War, war,... war is all you need."
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Posted by memewatchers.com on 08/19/11 02:38 PM
The best response would be that nations or groups of nations operate under the Treaty of Westphalia.
@ DB - a section in the glossary on The Treaty of Westphalia would be helpful.
Posted by runderwo on 08/19/11 02:35 PM
Unbelievable, look at this out of the elite mouthpiece FT:
Click to view link
Please respect Click to view link's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@Click to view link to buy additional rights or use this link to reference the article - Click to view link
In the Bavarian region of Chiemgau, Germany, local shoppers can pay for their würstsalat lunch with brightly coloured Chiemgauer notes. Invented by an economics teacher in 2003, the money loses 2 per cent of its value every three months, funding the scheme, but also providing a helpful incentive to spend.
A similar plan for the US, some sort of tax on notes and coins, is just one of the more radical ideas being tossed around as a way for Ben Bernanke, the Federal Reserve chairman, to revive a sagging US economy.
[..]
Please respect Click to view link's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@Click to view link to buy additional rights or use this link to reference the article - Click to view link
It may be too late already, in which case perhaps only a gamble in the mould of the Bavarian schoolteacher remains: set a timetable for rates to rise, making it expensive not to borrow, and encouraging immediate spending.
Posted by reegje on 08/19/11 01:17 PM
I heard yesterday from Max Keiser that the Bank of England outsourced their gold holdings to JP Morgan. They don't have the physical gold.
They have to buy the gold.
Reply from The Daily Bell
The financial media aren't saying but some big financial institutions are certainly racing to buy or borrow enough god to deliver to Chavez.
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