Evidence continues to surface that Saudi Arabia is funding Sunni insurgents in Iraq, who in turn are killing US troops. The relationship with Saudi Arabia and Israel precludes any dialogue with Iran. Such a policy continues to weaken the US position in the region and that forces new security architecture. The neocon position is to establish a new regional balance of power via a Sunni-Israel alliance. A new Gulf military organization is being formed with Qatar, Kuwait, Egypt, and Jordan and, of course, Saudi and Israel. This is Cheney’s newest brainchild. His regional efforts have thus far been a disaster and as a way out he is trying to create more conflict, which is exactly what the Illuminati does not want to happen. The meeting two weeks ago at Sharm El-Sheikh was to cement a Sunni-Israel bloc. The pay off was $20 billion worth of high technology weapons, which after all is said and done, is an $80 billion package, which are offensive weapons. In the face of this we find it interesting that Saudi Arabia refuses to cooperate with the US on al Qaeda, plus there is a massive scandal and a Justice Department investigation of charges of bribery by former Saudi Ambassador and Cheney’s partner-in-crime Prince Bandar in the BAE scandal. What is being laid here is the groundwork for perpetual war between the Shia and Sunni Muslims. Any attack on Iran will solidify power for those in control because such an exercise would be unsuccessful. The whole program is nothing more than utopian madness. You cannot easily invade and occupy Iran and a campaign of air strikes won’t work completely. Look at the disastrous results in Iraq.
We believe that finally plans are being put together for a withdrawal from Iraq. They would exit via Kuwait and that withdrawal would take probably two years. In the final analysis the Saudis have screwed the US and because they control so much oil they will get away with it.
On the other hand, we hear we should take military action against Pakistan’s border with Afghanistan. As we explained in an earlier article a move into Pakistan would be simply disastrous. We are talking about a nation of 160 million people in an area that India, China and Russia would love to get into. An invasion even if small, could break the country up and Islamic radicals could take over and if they did they would control nuclear bombs. In addition, we do not like the odds. Who wants to face down 20 million Pushtuns? It should be noted 13 million more Pushtuns live in Afghanistan as well and many are Taliban. If President Musharraf falls from power the country could split up into factions. Don’t forget like in so many countries that the British conquered and occupied they set boundaries that guaranteed further conflict. Most all these boundaries were unnatural and often tended to spit tribes up putting them indifferent countries. If Pakistan split into pieces as the result of US interference, the US would then face 33 million Pushtuns, half of whom are heavily armed.
President Musharraf has just suffered two defeats at the hands of the Supreme Court and is weakened politically. He has an internal war on his hands that he cannot win. He is trying to negotiate with the tribals, despite the pressure from the US to join hands and strike the extremists. If he does that it would be suicidal and a tragedy for the armed forces in Pakistan.
The Bush White House and NATO want Pakistan to do something that they failed to do themselves. They have lost the war in Iraq and in Afghanistan and they expect Musharraf to deliver at a point where he is at his weakest, with few options left. He cannot help and if the US invades he will quickly be out of power and chaos will ensue. That void will be filled by extremist Muslims and if they get a hold of those nuclear devices we shudder to think what could happen.
BNP Paribas, France’s biggest bank, halted withdrawals from three investment funds because it couldn’t fairly value their holdings after US subprime mortgage losses roiled credit markets. Assets in the funds were $2.2 billion.
As this took place the FTSE, CAC, DAX and Dow futures plunged. Italian, German, Dutch and US banks have halted liquidations. NIBC Holding N.V. in Holland has absorbed $188 million in losses so far.
As a result of all this the Fed added $24 billion in funds for banks to stem any extra demand and to assist foreign banks if necessary. The ECB, due to a sudden demand for cash from banks, loaned an unbelievable $130.2 billion to banks. As that took place overnight interest rates rose to their highest level in six years. The London Interbank rate rose to 5.86% from 5.35%.
As we predicted this would happen three years ago so it has happened. Liquidity has completely dried up, as investors aren’t recycling their money back because of subprime concerns.
The ECB provided the largest amount ever in a single so-called fine turning operation exceeding the $95 billion provided on 9/12/01 after 911.
So-called ALT-A mortgages, which were supposed to be higher quality than subprime loans, are also suffering rising delinquencies and the harsh scrutiny of rating agencies and rightly so, just as we predicted they would be. Loans that should have never been made.
What the ECB and the Fed are saying is here is unlimited cash to stay in business. The flipside is mega-inflation that eventually will send gold and silver straight up.