The target of NATO’s attacks on Libya: Ending its financial independence

Political analyst Ian R. Crane discusses the real motives for the western military industrial complex attack on Lybia, the murder of former Pakistani president Benazir Bhutto, the conspiracy behind the BP oil spill in the Gulf of Mexico and the amazing common denominator among Iran, Iraq, Syria, Libya and Venezuela that not everyone may know.

U.S Government secretely passed gold coin tax

Amendment Slipped Into Health Care Legislation Would Track, Tax Coin and Bullion Transactions 

ABC

 Those already outraged by the president’s health care legislation now have a new bone of contention — a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny.

 The issue is rising to the fore just as gold coin dealers are attracting attention over sales tactics.

 Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.

 Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

 This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.

 Taking an early and vociferous role in opposing the measure is the precious metal and coin industry, according to Diane Piret, industry affairs director for the Industry Council for Tangible Assets. The ICTA, based in Severna Park, Md., is a trade association representing an estimated 5,000 coin and bullion dealers in the United States.

 “Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public,” Piret said. “Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale.”

 So every time a member of the public sells more than $600 worth of gold to a dealer, Piret said, the transaction will have to be reported to the government by the buyer.

 Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.

 With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he’ll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect.

 “I’ll have to hire two full-time people just to track all this stuff, which cuts into my profitability,” he said.

 An issue that combines gold coins, the Obama health care law and the IRS is bound to stir passions. Indeed, trading in gold coins and bars has surged since the financial crisis unfolded and Obama took office, metal dealers said.

 The buying of actual gold, as opposed to futures or options tied to the price of gold, has been a particularly popular trend among Tea Party supporters and others who are fearful of Obama’s economic policies, gold industry members such as Heller and Piret said.  

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As it turns out, the U.S. does negotiate with Terrorists and Drug Traffickers

By Luis R. Miranda

Have you heard the rumors that the U.S. is the main carrier of drugs around the world?  How about the one that tells how the former New York Stock Exchange boss went to Colombia to ask the Narcos to invest in the NYSE?  All rumors, right?  Nope.  There are enough trails to know that indeed the United States is not only the largest carrier and co-grower of drugs in the world.  There is also enough proof that Richard Grasso, the former NYSE’s head traveled to Colombia to meet with local narcotrafficking bosses to offer ‘his exchange’ to hide their money.

The U.S. military closely guards the largest poppy plantation in the world.

Currently, the United States guards and aids in the growth of poppies in Afghanistan, -as reported by Fox News’s Geraldo Rivera.  There is of course a good explanation for the double standard.  If the U.S. does not help President Karzai’s brother to make a living of it, then terrorists would grow it and use the money to attack the ‘free world.’  Coincidentally, this is exactly what happens in Colombia.  As reported by the Washington Post, Colombian president’s brother, Santiado Uribe, was the head of an infamous death squad in the northern part of the country, right out of a estate that belonged to the Uribe family.  Santiago, also known for his ties to drug cartels, took it upon himself to murder petty thieves, guerrilla sympathizers and suspected subversives.

But negotiating with Narcos is not limited to Colombia or Afghanistan.  The ‘glorious’ war on drugs reaches the highest heads of the current Obama administration.  Obama’s advisor George Soros is a known narco businessman too.  Soros is one of the most vocal people who want all illegal drugs to be legalized.  As part of the drug war, Colombia surrendered part of a mountainous territory to the FARC, a paramilitary group which was then allegedly dismantled as part of the negotiating process to end the war trade.

NYSE Richard Grasso embracing FARC leader Raul Reyes in 1999.

As the documentary American Drug War exposes, the U.S. has a long history of running drugs across the continents, especially from South America to the North, and more recently from Asia to America.  Since President Nixon legalized the trafficking of drugs by the U.S. government through the establishment of the war on drugs, the business of dealing and transporting drugs has grown exponentially and the result has been the laundering of billions of dollars by Wall Street banks which is then used to finance illegal intelligence secret operations around the globe.  Such operations are carried out to capture non collaborating countries, using guerrilla forces and special-ops military contractors.

Former Los Angeles Police Narcotics Detective Mike Ruppert sent shockwaves around the United States when he told CIA Director John Deutch and a room full of reporters that the organization he headed had been running drugs for a while.  Amadeus, Pegasus and Watch Tower are the names of three operations the CIA used to run drugs around the United States.  He himself had been recruited to help protect the agency’s dealing of drugs.  Ruppert challenged Deutch to investigate classified operations and to tell the truth to the public.

Catherine Austin-Fitts, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, says of Grasso’s visit to Colombia:

I presume Grasso’s trip was not successful in turning the cash flow tide. Hence, Plan Colombia is proceeding apace to try to move narco deposits out of FARC’s control and back to the control of our traditional allies and, even if that does not work, to move Citibank’s market share and that of the other large US banks and financial institutions steadily up in Latin America.

In her essay Narco Dollars for Dummies, Fitts exposes how the money works in the illicit drug trade.  According to Fitts, the power of Narco Dollars comes when you combine drug trafficking with the Stock Market.  She points out that drugs are not always a commodity, but sometimes it becomes a currency.  When the military industry sells weapons to a terrorist group, for example, they may or may not pay in dollars.  When the green back is scarce, there is the option of paying with drugs.  That is why the CIA brings drugs into the U.S. as payment for the secret sale of arms to Colombia and other puppet governments in Latin America.

We all remember the Iran-Contra scandal.  The heart of the scandal was the fact that Oliver North and the White House (National Security Council) dealt drugs through Mena, Arkansas to facilitate arms shipments. Mena was of course a large contributor to Bill and Hillary Clinton’s multiple campaigns at the local regional and national levels.  Other examples of the drugs for arms trade are the conflicts in Vietnam, Kosovo, Mexico, and so on.  In all these cases, drugs, oil, gas and arms are the currencies used to deal.  “Add gold, currency and bank market share and you have the top of my checklist for understanding how the money works on any war or “low intensity conflict” around the globe,” says Fitts.

Along with Bill Clinton, the Bushes are some of the most corrupt elements of the American elites.

On the other side of the coin we have the Bushes.  George H.W. Bush was CIA director and U.S. President.  His sons Jeb and George W. were the governors of two of the largest drug markets in the United States: Texas and Florida.  The other two states are New York and California.  Later, George W. Bush became president of Unites States.  Can it be a coincidence that the sons of a former CIA Mafia boss successfully held office during one of the most intense drug trafficking period in the history of the country?

Why are people who used drugs put in jail then?  Well, drug trafficking is a round business.  The same corporations who benefit of the drug trade also run the prison system.   Take for example the CCA, or Corrections Corporation of America.  On its website they label their work as a service to build and run prisons.  “Our approach to public-private partnership in corrections combines the cost savings and innovation of business with the strict guidelines and consistent oversight of government.”  From the more than 2 million people in prison in the United States, more than 80 percent are non-violent offenders, who are in jail for smoking, selling or buying marihuana, for example.  The drug trade business simply collects profits from every possible point.  It plants the drugs, harvests them, transports them, sells them and imprisons those who use them.  Of course it is not enough with sending people to prison.  While innocent or non-violent offenders are inside the gulags, they are also obligated to work in slavery camps in order to multiple the profits for the prison industrial complex.  Is that a monopoly or what?

The second debt storm

Who will bail out the countries that bailed out the world’s corporations?

Market Watch

The debt mountain that brought down some of the world’s biggest banks and dragged the international financial system to the brink ofsovereign debt disaster has simply shifted to governments. Now it’s threatening countries around the globe — and, if left unchecked, could rip the very fabric of Europe’s economic system and wreck economic recoveries in the U.S., China and Latin America.

The impact on markets has been severe. The euro has slumped more than 12% against the dollar since the sovereign-debt crisis flared in southern Europe. Gold has marched to new highs as investors seek a safe haven and, perhaps most alarming, it is now more expensive to buy insurance against national default than it is to insure against corporate failure.

“The sovereign-debt crisis spun out of control in the past week, and we see no easy way to resolve it,” said Madeline Schnapp, director of macroeconomic research at TrimTabs Investment Research.

Some investors and analysts are increasingly concerned that governments may be no more capable of repaying their debts than the banks and insurance companies they saved. And, they warn, if a major country comes close to default, it could trigger a financial meltdown that would eclipse the panic that followed the bankruptcy of Lehman Brothers in 2008.

The world has seen sovereign debt crises before. Latin America, Africa and Asia have all experienced upheavals sparked by excessive debt. These crises were all accompanied by stunted economic growth, inflation and weak stock market returns, which make it even harder to pay off debts. As investors and government officials ponder the current state of affairs, they see ominous signs that the developed world may be facing a similarly bleak future.

“The problem of the western world is that we have too much debt,” said Daniel Arbess, who manages the Xerion investment strategy at Perella Weinberg Partners. “Rather than reducing our debt, we’ve been moving it from one balance sheet to another.”

“All we’re doing is shifting chairs on the deck of the Titanic,” he added.

Europe’s bailout

Some governments have started to respond to market pressure, with the U.K. pledging billions of pounds in spending cuts this week. Spain and Portugal also unveiled austerity measures. But the problem is so big that investors remain wary. Check out Portugal’s plans.

Stock markets plunged and credit markets shuddered last week on concern Greece and other indebted European countries like Portugal and Spain might default. See the story on market impact.

“What’s happened on a corporate level is now happening on a national level. The first nation to experience this is Greece, but other nations will, too,” Schnapp said.

To stop Greece’s debt troubles turning into a run on the euro and a global stock market rout, the European Union unveiled an unprecedented package of almost $1 trillion in emergency loans, stabilization funds and International Monetary Fund support on Sunday.

In the days that followed, the European Central Bank bought the government debt of Greece and other countries on the periphery of the region’s single-currency zone, such as Portugal, Spain, Italy and Ireland, investors said. Such a drastic step has been shunned by the ECB until now. Read about the market response on Monday.

“Temporarily the crisis in terms of liquidity has been averted, but the underlying problem hasn’t gone away,” Schnapp added. “Giant debt and expenditures by governments are still there.”

TrimTabs cut its recommendation on U.S. equities to neutral from fully bullish on Sunday, in the wake of the European bailout.

Protection

The sovereign crisis has been brewing for months.

For much of the financial crisis, investors worried about financial institutions defaulting, rather than sovereign nations. But that pattern has been upended.

In early February, the cost of insuring against a sovereign default in Western Europe exceeded the price of similar protection against default by North American investment-grade companies. That was the first time this had happened, according to data compiled by Markit from the credit derivatives market.

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So, you think the dollar gained value?

The inflated currency isn’t worth a 1,200th of an ounce of gold

Lew Rockwell

The collapse of the dollar to less than a 1,200th of an ounce of gold is emerging as one of the astonishing stories of our time. Yet evendollar more astonishing is the lack of focus on that story by the intelligentsia in our press and politics. It is a silence on which these columns have remarked a number of times of late, including on March 14, 2008, right after the value of the greenback toppled below a thousandth of an ounce of gold. At the time we suggested that, once the Democrats had their nominee, it would be up to Senator McCain to confront them with the fact that the Congress they’ve controlled since 2006 has resulted in the dollar falling below a thousandth of an ounce of gold and to warn of its further collapse without the right leadership.

Now the default that has followed has been bi-partisan. It was less than five years ago that we issued, on December 5, 2005, an editorial called “The Bush Dollar.” It charted the collapse of the greenback to barely a 500th of an ounce of gold from the 265th of an ounce of gold that it was worth when President Bush acceded to the office where the buck – or, to use the phrase that our contributing editor Larry Parks likes, the “paper ticket” that passes for a buck – stops. At the time we issued that editorial, Mr. Bush had just named Benjamin Bernanke to chair the board of governors of the Federal Reserve. We noted that the dollar had continued to lose value at what we called an “astonishing rate.”

So on the eve of the election that gave the Democrats the control of Congress, we issued an editorial proposing the dollar be renamed “The Greenspan,” in honor, or dishonor, of the Fed chairman who’d just written a book that gave short shrift to the whole idea of measuring a dollar in gold. When it didn’t happen, we issued, on November 30, 2006, another editorial, “The Pelosi,” focusing on the fact that it was to the Congress that the Founders of America delegated power to coin money and regulate the value of it. Despite the efforts of Congressman Ron Paul to return to the idea of constitutional money, it rapidly became clear that the Congress wasn’t going to do anything more about the dollar under Mrs. Pelosi than it had under Dennis Hastert.

So in 2007 we proposed renaming the dollar “The Bernanke.” It called the pace at which the dollar was falling “scandalous.” It also quoted Congressman Ron Paul as having, in 2006, written, prophetically it looks like: “Economic law dictates reform at some point,” Mr. Paul had written in the fall of 2006. “But should we wait until the dollar is 1/1,000 of an ounce of gold or 1/2,000 of an ounce of gold? The longer we wait, the more people suffer and the more difficult reforms become.” We quoted Dr. Paul as warning that “runaway inflation inevitably leads to political chaos” and declared that the time for action is now.

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