Good News in Libya Won’t Last

By Greg Hunter’s USAWatchdog.com 

It looks like the end of power for tyrant Muammar Gaddafi.  He’s been in power 40 years, but what will take his place?  Remember when stories broke out a few months ago about Libyan rebel al-Qaeda links?  It is a fact that was reported in one of many publications such as The Telegraph back in March.  The story headline read “Libyan rebel commander admits his fighters have al-Qaeda links.”  The story went on to say, “Abdel-Hakim al-Hasidi, the Libyan rebel leader, has said jihadists who fought against allied troops in Iraq are on the front lines of the battle against Muammar Gaddafi’s regime. . . . Earlier this month, al-Qaeda issued a call for supporters to back the Libyan rebellion, which it said would lead to the imposition of “the stage of Islam” in the country.” (Click here to read the complete Telegraph story.)  Did NATO’s 20,000 bombing missions help al-Qaeda win?  It sure looks like it.  The questions are why, and who got more than $6 billion in Libyan gold reserves?  I frankly do not have the answers, but what is coming to power next in Libya could make Gaddafi look like a boy scout.

Meanwhile, the rest of the world is breathing a sigh of relief and the markets are reflecting that, at least for a while.  Sure, Libya will be pumping oil at full speed again, and that should hold oil prices down.  I do not expect oil prices to stay suppressed with all the money printing going on to try to keep the world economy from falling off a cliff.  Friday, Bill Gross of PIMCO told Reuters, “Economic growth is slowing down.”  Gross went on to say that his company is predicting “0% growth,” or close to it by fourth quarter.  Sorry Mr. Gross, according to shadowstats.com, the economy is already hitting negative growth.  At the beginning of this month I reported, “The recent year over year 1.6% growth reported by the Bureau of Labor Statistics in the Gross Domestic Product (GDP) is a statistical crock, according to economist John Williams of Shadowstats.com.  In his most recent report, Williams said, ‘The SGS Alternate-GDP estimate for second-quarter 2011 is an approximate annual contraction of 2.8% versus the official estimate of a 1.6% gain.  Such is more negative than the alternate 2.6% annual contraction (2.2% official gain) in the first-quarter.’  Double-dip here we come.”  (Click here to read the original post.)

On the other side of the Atlantic, Europe remains in deep financial trouble.  Monty Guild of Guild Investment wrote Friday on JSMineset.com, “Several European countries recently banned short-selling of financial stocks. The U.S. did the same thing in the summer of calamitous 2008.   Financial stocks collapsed even further shortly afterward.  Expect to see a poorly re-engineered rerun with new actors but the same plot and the same ugly final act.  In the original, American taxpayers paid for the profligacy of bankers and politicians.  Now European taxpayers will foot the bill.” (Click here to read Mr. Guild’s complete excellent report.)  Monty Guild says that the EU will have to spend close to $2 trillion to get control of the sovereign debt problem.

Money printing and instability are the reasons gold is hitting one all-time high after another.  The yellow metal hit another one today.  I expect to see some sort of correction in the weeks ahead because the price has spiked so dramatically, but the long term trend is up.  The dire debt problems the western world faces will not be solved anytime soon.  Therefore, I predict the “good news” in Libya will not have a lasting effect on the markets.

Comments
  1. Davis

    And The Next Chapter Unfolds.

    Now that it appears the war in Libya is about to wind down there might be a few questions that need asking. Don’t be looking for any answers never mind the questions in you Main Stream Media source.

    As background it might be helpful to review a previous posting from May; http://theeveningchronicle.blogspot.com/2011/05/strange-case-of-gold-oil-and-mummar.html.

    At present there are at least two other events on the horizon that attention may turn too now that the logistic capabilities of supporting the so-called rebels in Libya can be freed up.

    The first and seemingly most immediate would be Syria, with both the President and Secretary of State Clinton issuing demands for President Assad’s resignation. Given the growing tension between Israel and Egypt over the recent attacks in Israel and the unpredictable nature of how the rest of the Arab world would react to a “kinetic action” against Syria in the heart of the region any such action might be biting of more than the Administration is willing to chew. If such an action were to be undertaken it could be almost guaranteed that Syria would launch an attack against Israel in order to try and bring other Arab states and perhaps Iran into the conflict on it’s side. At which point all bets would be off and the conflagration would spin out of control faster than a drunken Lindsey Lohan in a jewelry store.

    With an Administration palpably desperate to find a distraction from the consequences of its disastrous economic policies and with the financial elites equally desperate to keep the ponzi fraud of the markets alive, one Hugo Chavez comes to mind. The parallels between Chavez’s statements about desiring to create a gold backed monetary system for Latin America independent of the collapsing US dollar and Kaddafi’s wanting to create a “Gold Dinar” for settlement of oil contracts is unmistakable and undeniable. Hence the reason you won’t see anything about it in the MSM.

    Understanding that the US already has a sizeable military and intelligence logistics presence right next door in Columbia and there already exist tensions along the border over allegations of Columbian and possibly US troops crossing that border in pursuit of Columbian FARC insurgents the table may be already set for the set piece in the Orwellian nightmare. Add in huge oil reserves and that the US imports large amounts of it, exclusively to California, and the temptation for the Machiavellians may be too much to pass up.

    All this is speculation of course but when and if you here the propaganda machine that Polish err Venezuelan troops have cross the border and that American troops have been killed defending the Reich, err Columbia then maybe you will understand just what fools we are being played for.

    The only question then will be whether the American people will be in the streets protesting against being deprived of house, home, jobs and food or reacting to Kabuki Theater in the jungles of Columbia. The powers that be won’t really care which, as either one will allow for further ratcheting up of government control, depriving us of even more liberties in the name of security.

    Before the FED, JP Morgan, the B of E, the BIS begin congratulating themselves about shutting down Kaddafi and perhaps securing his 143.8 tons of gold to cover their short positions on the COMEX they might want to first find out how much of that gold is still in Tripoli and how much has already been moved to Caracas.

  2. edgar

    War was and is always is the “solution” of economic crisis in capitzalism – selling and using weapons and ammunition and after wards when anything is damaged in an occupied/ neocolonized country, there are no means of liveing, so that the aggressor “needs to help” with recovery/reconstruction programs, which are in the hidden agenda actually the cheap takeover (expropriation) of such facilities from the new puppet governments brought in.

  3. edgar

    War was and is always is the “solution” of economic crisis in capitalism. Selling and using weapons and ammunition and after wards when anything is damaged in an occupied/ neocolonized country, there are no means of living, so that the aggressor, respectively the provider of “humanitarian bombing” “needs to help” with recovery/reconstruction programs, which are in the hidden agenda actually the cheap takeover (expropriation) of such facilities from the new puppet governments brought in.

    Since civil infrastructure is always destroyed to urge the people to rather topple their leader instead of being completely bombed into stone age, power plants, telecommunication, broadcasting, newspapers actually anthing, can be taken over by the imperialists, especially when the economic facilities, land and resources were owned by the people before. A former mighty local capitalist would make too much trouble for imperialists and would let fight for his “freedom”.

  4. Art Barnes

    Good news then bad news, or as they say in the MSM “breaking news” is now becoming a twice weekly thing. The little oil correction will pale in consideration of a major developed country in the middle east with Bin Laden’s cabinet running the show. This has to turn out bad. I do feel sorry for the Lybian people because once again they have been tricked by their muslim brothers.

    As to the economy, double dip will be officially declared soon when the MSM finally reports the offical contraction of the GDP. Probably about February of next year or so after the 4th quarters’ rigged government statistics cannot keep the charade up any longer. Looking back on the default debate I can’t see how the “deal” that was made could turn out better than the default option, they both arive at the same place, however in the formal the end result will be deeper and longer lived.

  5. Sam

    Dear Greg,

    I knew that when Chavez started to nationalize the mines and demanded that his country’s gold be returned that gold would go up. And of course, it did.

    The continuing unrest around the world, with paper fiat in a flux, is causing yet more people to flee to gold.

    Last Friday, when gold shot up to the $1840 range, I did something I don’t ordinarily do. I bragged. You see, when I was a child, and then as an adult, I was the victim of bullying, both physical and mental. Everyone was “superior” to me. Still, I did my own thing, like collect coins. Last Friday I posted the London spot prices for gold and silver on Classmates.com, and then said, “At this moment, I am a millionaire. Who’s stupid now?”

    • Greg

      Sam,
      You are the man!!! Thank you for sharing your story of triumph.
      Greg

      • Sam

        Thank you.

  6. Davis

    Another suckers rally today.
    Now that the retail investors have been all but driven from the markets and all we have left are the algo driven HFT computers we can expect yet another irrational (if not short lived) rally in the markets today. In part the delusional will interpret the fall of Kaddafi as the harbinger of some new stability for North Africa. The TV pundits have already started with the lollipops and roses meme for the aftermath in Tripoli. I wonder if In-Trade has a bet on how long it will take for it to fall apart into chaos if not outright tribal warfare.
    But never mind that, everyone is anticipating the DJIA to be up today following the European markets and a lowering in the gold price on the London markets. The flurry of emails filling my in box on all the supposed “hot buys” has become one of my favorite forms of entertainment. They all can be summed up in one sentence: “This is the bottom you have to buy now or get left behind by a resurging market!” I guess they would have us ignore that each new “rally” has a half life even shorter than the previous one and is followed by an even larger decline. They’re trolling for suckers but I’m not one of them. As far as I’m concerned the fine print disclosure statement, or as they see it “get out of jail free card” is no pass for the criminal nature of this activity of preying upon the scared and uninformed.
    If one willingly jumps into a tank full of sharks knowing full well that you might get eaten it’s one thing, but when the sharks are chumming the waters to entice the unwilling and uninformed to jump right into their greedy jaws it’s quite another.
    But then it is just this kind of criminal fraud that got us into this mess and not a single one of these rapacious monsters of Wall Street has seen a single day in jail never mind in court, why then should we expect them to change their behavior. The SEC and the CFTC are staffed with former and future employees of the very institution they are allegedly regulating so don’t expect any justice any time soon. And when the pressure does begin to mount you can bet that the worst of them will already have left and be residing in Liechtenstein or someplace else with no extradition treaty and safely out of reach.

  7. Sarmad

    Two observations: 1) Rome was successively eroded by multiple of waves of small ‘barbarian’ attacks. The weaker it got the more the non-Romans were tempted to attack. “Rome did not fall in a day.” Watching Western hegemony gradually weaken reminds me of the story as told by Edward Gibbon.
    2) If US knows that it’s in serious trouble, it might actually be in its advantage (however strange it may seem), to help cause a general conflagration in the Middle East. If it is going to fall, why not bring everyone else down too and hope that things work out better in the aftermath? The conflagration of WW2 was intimately connected with the Great Depression etc.

  8. Hoppe

    Once again, as we have so many times in the past, the U.S. will replace one tyrant with another.

    The new tyrant will be friendly for a little while, until his ego gets too big, or he is offered another more popular alliance.

    As you point out Greg, radical muslims, aka al-Queada will most likely be that alliance.

    And the cycle continues… That 7 year old grandson now has his war forming up.

  9. Brian

    Lets not forget. Mr. Bernanke is going to talk to us little folk this week. I actually heard on the world market news this morning that “everyone” is hoping to hear good news from good old Ben that he is going to come out with a “type” of QE3. Realy!?.
    I already have the bucks set aside. If he mentions QE3, even in passing, im buying more silver…Sorry but gold is already outta my price range..
    I heard some where that if silver hits 50 dollars an once that hyperinflation is a certainty, some mathamatical deal..anyone no more about that?

  10. g.johnson

    2.8% shrinkage. honestly, i do believe that is wishful thinking.

    double dip? what? this recession/depression began in 1973/74. first dip.
    second dip was 1978/79. since then, there has been no real recovery, only occasional “corrections”. dozens of “dips”. inflation slowing a bit from time to time, but always continuing to climb against real value until the last vestiges of free market economy (which never did get off the ground as our founding fathers hoped it would)disappeared into corporate capitalism (the very last thing our founding fathers wanted to see)which, as we know, has manifested itself through a beggar’s banquet of financial shenanigans the likes of which even the most draconian sociopaths would have never dared dream to be possible 200 years ago.

    virtually every war on this planet that has been fought over the last 200 years (including our civil war) has been fought to secure profit and control to the crown. get it straight, if we have ever truly fought for our freedom, for the constitution, for individual rights, then we have failed miserably in securing those singular gems.we did not destroy the reich back in wwII, it just went relatively dormant for 50 years. now it is back with a vengeance having learned from it’s past mistakes and is poised to do true nasty. we the people have abandoned our duty of vigilance and now we are paying the price. and the price is going to get a whole lot steeper a whole lot sooner than you may think.

  11. Rob

    Hi Greg!

    Yes you are right as the world is on a designed collision course with the rules set up by its Creator yet it moves blindly closer to the abyss. I would venture to say the rule book sets in most homes across this land being unopened for years. Jeremiah prophesied the middle east will be under the beast’s control as we enter the last seven years and your right this regime will make Gaddafi look like a boy scout. Wait until they prod Israel to attack Iran in September. This will keep the masses preoccupied while they put the finishing touches on the covenant for a global currency soon after the attack. Let us not forget the signs in the heavens as well. For more info on this please check out our web site http://www.unleavenedbreadministries.org

    In CHRIST! Rob

  12. Stief Bijer

    Thank you Greg–your articles are always insightful, clear and beneficial for future planning!

    Sadly, you leave unanswered several key questions in the beginning of this article.

    Full answers require a broad view of the history the so-called “Arab-Israel Middle East conflict.” Libya is just one piece of this power and money puzzle.

    Richard Maybury’s book, “The 1000 Year War” is the absolute best way to totally understand all the current KEY economic, political, military and social questions affecting the world today AND tomorrow. It is candid, factual and unbiased, so many people may prefer to keep their illusions and not read it.

    Nonetheless Maybury’s ~15 other great books and his highly profitable economic advice are also now world famous.

    Gratefully yours!

  13. NCdirtdigger

    Don’t look for freedom to break out in Libya.

    • Greg

      NCdirtdigger,
      The shortest truest statement I’ve heard in weeks! Thank you.
      Greg

  14. CogitoMan

    If Kaddafi was a tyrant then NATO is devil incarnate. Whatever crimes Kadaffi did pales in comparison the ones US did in Iraq and Afghanistan. If anyone should be put in the ICC court it should be first and foremost Bill Clinton, Bush and Obama plus lil Sarko and Cameron.

  15. nm

    CEO of S*P fired and replaced by the COO of Citibank.

    http://www.zerohedge.com/news/sp-board-fires-ceo-telling-truth-be-replaced-coo-citibank#new

  16. Jerry Frey

    Facts are stubborn things. The Main Stream Media refuses to acknowledge the truth about Islam and in particular, the Muslim Brotherhood. What their spokesmen say in English is different from what they tell Muslims in Arabic.

    http://napoleonlive.info/did-you-know/muslim-brotherhood-revealed/

  17. OTE

    The rise of the golden dinaro of Libya threatened to compete with the USD hegemony. The US HATES competition.

  18. Oldguy

    Jerry,
    Do you mean to say: “when their lips are moving……”? Shame on you.

  19. major

    You dumbasses cant you see the pattern here. These are orchestrated uprisings to replace arab leaders that are secular with Islamists. Then consolidate these Islamist nations in one massive Holy War to wipe out Israel, Followed by Europe and then the US eventually. What are the chances all these uprisings would occur in a half dozen or more middle east countries at the same time. Its not coincidence, its part of a larger plan and Obama and Hillary are in the middle of it somewhere.

    I guarantee if Obama is ever completely exposed there is an escape plan to take him into hiding in the Middle East along with all his Czars and fellow travelers.

  20. major

    You idiots cant you see the pattern here. These are orchestrated uprisings to replace arab leaders that are secular with Islamists. Then consolidate these Islamist nations in one massive Holy War to wipe out Israel, Followed by Europe and then the US eventually. What are the chances all these uprisings would occur in a half dozen or more middle east countries at the same time. Its not coincidence, its part of a larger plan and Obama and Hillary are in the middle of it somewhere.

    I guarantee if Obama is ever completely exposed there is an escape plan to take him into hiding in the Middle East along with all his Czars and fellow travelers.

Leave A Reply

Please Note: All comments are moderated and manually reviewed for spam. In turn, your comment may take up to 24 hours to be posted. USAWatchdog.com also reserves the right to edit comments for grammar and spelling errors.

Your email address will not be published. Required fields are marked *