[[wysiwyg_imageupload:269:]]By Global Intelligence Report
INCIDENT: Sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain. This comes as Bahrain arrests 23 opposition leaders accused of terrorism offences and hints that Iran is behind an alleged plot to overthrow the government.
SIGNIFICANCE: Bahrain's attempted coup reports should be taken seriously, as Iran knows that its best chance of fighting the US and/or Israel is by proxy. Hitting Bahrain hard would greatly upset the overall security situation in the Middle East and Gulf region.
Foreign policy and international news
[[wysiwyg_imageupload:269:]]By Global Intelligence Report
The People's Republic of China's PLAN in the Indian and Pacific Oceans: The Game is Changing and the US is Now on the Defensive.
Two warships of the People's Republic of China (PRC) People's Liberation Army-Navy (PLAN) docked at a port in Myanmar on August 29, 2010, in the first publicized PLAN ship visit -- but not the first actual PLAN visit -- to Myanmar.
It was a move designed to help pre-position the PRC in its relations with Myanmar in the lead up to that country's upcoming national elections. The move also ended two decades of discreet PRC approaches to its naval presence in the Indian Ocean. It also follows the open PLAN task force presence in anti-piracy operations off the Horn of Africa, and the now open commitment to use of the Pakistani Baluchistan port of Gwadar, at the entrance to the Persian Gulf.
by JR Nyquist on Fri, 3 Sep 2010
Once upon a time there was a nation, free and proud. It was armed and ready for war. Its warriors were battle-ready and disciplined. But the leaders of this nation were socialists, and they were opposed to their own country's armed forces. In secret collaboration with a foreign power, they ordered their country's disarmament. They eliminated military units, they slashed military spending, and promoted commanders who were willing to disband their own armed forces.
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation Wealth Enhancement
“The crucial passage comes in Chapter 17 entitled "Velocity". Each big inflation -- whether the early 1920s in Germany, or the Korean and Vietnam wars in the US -- starts with a passive expansion of the quantity of money. This sits inert for a surprisingly long time. Asset prices may go up, but latent price inflation is disguised. The effect is much like lighter fuel on a camp fire before the match is struck.
People’s willingness to hold money can change suddenly for a "psychological and spontaneous reason", causing a spike in the velocity of money. It can occur at lightning speed, over a few weeks…
"Velocity took an almost right-angle turn upward in the summer of 1922," said Mr. O Parsson. Reichsbank officials were baffled. They could not fathom why the German people had started to behave differently almost two years after the bank had already boosted the money supply. He contends that public patience snapped abruptly once people lost trust and began to "smell a government rat".
Just like out of a Tom Clancy novel, it looks like the head of China's Central Bank, Gov. Zhou Xiaochuan has fled the country? The reason? A $430 billion dollar loss on treasuries. Could this be the first leak in the dam? We think it just might. Why would such a high profile guy be on the run? Consider that Madoff is spending the rest of his life in jail for a ponzi scheme. We don't think the Chinese justice system will be sofriendly to Mr. Xiaochuan. Consider a few things:
China's U.S. debt holdings is at about $843.7 billion, and according to the latest reports by the Treasury department, they have lightened up in June (by 24 billion) and then May (by 32.5 billion).
That is over a 50% haircut.
What happens when (not if) the Chinese start to dump? As famed investor Jim Rogers recently stated, "Head for the hills!" What exactly would it look like? Hard to say. But we will take a stab.
Watch interest rates hit double digits, really, really fast. As interest rates climb, whatever borrowing is left will cease. Business will crumble, unemployment will explode. Not a pretty picture.
Although we always try to be provocative, and at times admit to even being over the top, please note that we don't have a horse in this race. We only hope that cooler heads prevail.
Prime Minister Binyamin Netanyahu rushed on Sunday evening to distance himself and his government from Rabbi Ovadia Yosef’s death wish for Palestinian Authority President
Mahmoud Abbasand the Palestinian people, after the flood of angry Palestinian reactions to the comments.
“These words do not reflect the approach of Prime Minister Binyamin Netanyahu, nor the position of the government of Israel,” the Prime Minister’s Office said in a statement.
“…US Treasury data show that China has cut its holdings of Treasury debt by roughly $100 billion (L65 billion) over the past year to $844 billion…
Two epochal forces are colliding in the global bond market: core deflation is gathering force but the West is losing sovereign credibility just as fast.
Arch-bear Albert Edwards at Societe Generale advises clients to prepare for a violent policy swing from one extreme to the other. First we deflate into the abyss: Then we inflate hard rates to get out again. At some point the "euthanasia of the rentier" will wear off. Misjudge the sequence at your peril.”
Ambrose Evans-Pritchard, The Telegraph, London, 8/23/10
Just last week we reported that Israel was preparing for war with Iran. Just today, the former U.N nuclear chief is stating that Iran has material for 1-2 atams bombs. This comes on the heals that the current administration claims that Iran is ONE TWO YEARS AWAY from building a weapon of mass destruction.
In an interview with WorldNetDaily.com, Danny Damon, the deputy Speaker for Israel's parliment states, "We are prepared for all risks, and I think our enemies should know that even though we are speaking of peace, we are getting ready for a time of war, as well."
Damon goes on, "We are ready for all scenarios, and we are able to defend our civilian population. I cannot tell you how long we can wait more. But we prefer to wait and see if the international bodies are acting, or [whether] it will be only the burden of Israel, like it was in the early '80s, when the great leader, Menachem Begin, [made] the great decision to bomb the nuclear reactor in Iraq. I think we have to take action. It's about time to take action. It should be the international world and not only Israel. And I expect the administration in the White House to wake up as soon as possible."
Such a story comes right after the New York Times reports that the White House has assured Isreale that a nuclear threat from Iran is not imminent.
Several weeks ago, we asked the question of what if Matt Simmons (RIP) is right and that a third oil lead has been confirmed. Since then, it has been reported that the oil leak has been fixed and the spill has been mostly cleaned up.