As we noted in a previous issue, NATO is expanding into Eastern Europe and intends to merge with the UN peacekeeping force to form a one world UN military force. In its sights now is to secure the energy security of its member states. This means the militarization of anything directly connected to the chain of energy, which has been strongly backed by the membership, particularly the new Eastern members. They are dependent on Russia for energy and such a posture could lead to war. Any disruption of energy distribution by Russia would be considered an act of war.
Russia needless to say isn’t very happy about such aggressive developments, when almost all NATO members have no energy output. This has led to the worst relations in 15 years between Russia and NATO. As you are well aware, NATO and particularly the US have made problems worse by declaring they will put missiles and radar in Poland and the Czech Republic. This could very well lead to another Balkan war touched off by Bosnia’s breakaway from Serbia by Albanian Muslims. Such a war would smooth the transition and globalization of NATO and the UN. The role of peacekeeper would then become a blunt belligerent farce. This is what we see in your future and another nightmare is about to begin.
The Fed and our government continue to tell us that the US economy’s growth rate will turn back up later this year. Builders and buyers know, even if it has escaped the Fed, that the housing market correction will last a lot longer, probably 2-1/2 more years. Those in private equity know they are dependent on the continued availability of liquidity from the credit derivative market. As we pointed out recently in reference to a Carlyle Group memo we agree that the sea of liquidity has a year to a year and a half to go before it begins to end. That will take an additional year to year and a half. All the while we’ll have hyperinflation until the asset base finally succumbs to deflation. Thus, mark 3 to 3-1/2 years before depression follows recession and stagflation. Gold is already anticipating these events as it moves higher in spite of central bank intervention.
The Mortgage Bankers Association’s mortgage application index rose 1.6% for the week ended 5/18. The average 30-year fixed rate mortgage rose 10 bps from 6.13% to 6.23%. The purchase index climbed 1.3% and their refi index rose 1.9%.
The SEC has fined Bisys Group $25 million to settle charges of fraud known as improper accounting practices that misstated financial results. They didn’t admit nor deny the SEC’s allegations.
Our president will have a real problem with Tony Blair’s successor Gordon Brown. He in all likelihood will withdraw support on Iraq. On the other hand, Brown is deeply in the Illuminists’ pocket and is a devoted Atlanticist and one worlder. We will see a quicker withdrawal of British troops from Iraq. There will be a decisive break with Mr. Blair’s support for the war.
A Bahraini, Juma al-Dassari, pointed a bleak picture of life and conditions at Guantanamo Bay. He tried to commit suicide 13 times to end his misery. Al-Dassari says, “I am here deprived of the simplest of human rights; I cannot describe the degree of our tragedy or the graveness of our misfortune. We are facing here the most horrible type of oppression, physical torture and terrorizing treatment at the hands of officers and physicians. What is happening here is what I call a cemetery or morgue for living people and is a mark of disgrace and shame for the United States. We are being tortured physically and psychologically on a regular basis and we die here a hundred times a day.” This is what our president and his administration are all about.
The Marxist-Leninist-neocon movement is over. All that is left to do is to drive a silver spike through its heart. Thus, it comes as no surprise that the fascist neocons are trying to silence their most prominent conservative critic. That is Ron Paul. He outraged the rabble during the first two debates by humbling the trash the Republicans had to offer as presidential timber. One thing Ron Paul has is guts, something sorely lacking in today’s world. He refused to bow to the elitist Il Duce. He told the TV audience after the debate that the self-appointed saint of 9/11 might consider reading the 9/11 report of the 9/11 Commission, which makes the same point in detail. This Rudy Giuliani is in favor of open borders. When Mayor of NYC he ordered his police not to turn illegal aliens over to the Fed’s. Ron Paul showed Giuliani up for exactly what he is – an elitist phony.
The JOC-ECI Industrial Price Index compiled by the Journal of Commerce is 7.8% higher than a year ago. This means interest rates are too low and bonds are in for a correction. That means stocks are too high and gold and silver are too low.