Weekly News Wrap-Up 11.9.12

By Greg Hunter’s USAWatchdog.com 

After $6 billion spent on this election cycle, we have nearly the exact same Republican controlled House and Democratic controlled Senate and, of course, Barack Obama won re-election.  Get ready for more gridlock.  I do think some kind of deal will be made, but there’s no way we get one unless some taxes go up and spending cuts are enacted.  Congress and President have until the end of the year when mandatory cuts and tax increases take effect.  This is why they are calling this a “Fiscal Cliff.” 

It was revealed today that five days before the election, Iran took some shots at one of our drones.  It was unarmed and reportedly flying over international waters, but that didn’t stop two Iranian war planes from trying to shoot it down.  Shooting at a U.S. military aircraft could be considered an act of war, but I don’t think this will start one.  The U.S. is in not-so-secret meetings with Iran to reign in its nuclear program.  It looks like Iran feels it has the upper hand.  The U.S. is in a very weak place as war could crash the U.S. economy.  The $700 trillion derivatives market could go haywire and melt down if there was a war in the Middle East.  Interest rates and oil prices could spike, and the dollar could suffer a steep selloff.  That’s just a few of the things that could happen as a result of war in the Persian Gulf. 

Meanwhile, Iran has announced it will hold “massive” air defense drills during the next few days. It looks to me that Iran is sending a message to the world it is not afraid of the U.S. or an attack by anybody. 

Greece has voted for new pay cuts and benefit cuts in order to get another $40 billion from the European Union.  It was the narrowest of margins that passed the austerity measures.  Greece is suffering through riots and protests where people were chanting, “Fight! They’re drinking our blood!”  Now, is that any way to talk about the bankers who are trying to control you?  If you think this could never happen in the U.S., you are sadly mistaken.  

Finally, not every market was down because of fears of the Fiscal Cliff.  Gold was up for the week because it looks like nothing is going to stop or even slow down the money printing by the Fed that is of historic proportions.  

Join Greg Hunter as he gives his analysis in the Weekly News Wrap-Up. 

Comments
  1. George Too

    Greg,
    I do not see any way that we come out of this financial nose dive until its speed has been blunted by a few thousand feet of bedrock. As you put in a while back, we are a nation of denial

    • Greg

      George too,
      Me either.
      Thanks buddy.
      Greg

  2. Samantha in Tucson

    Hi Greg,

    I was sitting in my dermatologist’s office waiting room in Tucson on Wednesday and spoke with two older German women; neither knew the other one. From our brief conversation, it sounded like they both were from East Germany.

    One woman spoke up and said, “What do you think of the elections?” Before I could answer, she said, “I am very worried! What is wrong with this country!? People don’t know what socialism will do! It is not good!” She was clearly distressed. The other nodded her head in agreement. The first woman said that she felt the U.S. was “done for” and looked very sad.

    The second woman, trying to be a bit more optimistic, said that her grandchildren had college educations and good jobs…but that they worked hard in school to get good grades to get the jobs (she didn’t say what job sectors they were in). She said that when she came to the country in the 1960s things were tough, but she found eventually found a good job.

    Both women said that things were getting tougher for people and especially seniors. They said that they’d lost Medicare benefits under Obama and feared it will get far worse for them.

    Both had doubts about Obama’s birth status.

    The first lady continued and reiterated that socialism will be the end of this country; she could clearly see the path this country is headed down and it is not good.

    At the end of our conversation, the second woman said, “Well, the sun is shining, we are not dealing with hurricanes and we are lucky to live in Arizona.” She went on to say, “I am old and I may not live much longer.”

    A brief but interesting view from a couple of older East Germans.

    Samantha

    • Greg

      Yes Samantha the poor will get poorer.
      Greg

  3. frosty

    Greg,

    I am sure others will question your sense of humor in your mentioning the $700 derivatives market as just the 9 largest banks in the United States today have a total exposure of more than 200 trillion dollars in that global gambling casino.

    But not to worry as these banks are simply just “too big to fail”, so we can all go back to sleep and they can continue to eat, drink and be merry without risk since its all going on posterity’s dime….sigh!

    Groucho Marx was right…”Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies”

    • Greg

      Frosty,
      I left off “trillion” when I posted the “$700″ number. Fixed it, my bad. Nothing funny about the mess we are in that’s for sure. Thank you for your comment.
      Greg

  4. BOB D

    More war, more debt. Nobody talks about the worthless wars true cost.
    If the Bankers and rich had to pay for the wars up front, we never would of gone to war.
    Maybe you can’t say worthless wars because the troops feelings would be hurt. The troops know the wars are worthless. The wars will end up just like this last election. After all the big talk all the spending ,you end up in the same place.

  5. PatriotRider

    Greg:

    After having endured this election and constant arguing with friends, relatives, business associates and the like for the past 4 plus years over progressive plans, values and policies, I have changed my mind over what the next course of action should be for the GOP, Libertarians, and Conservatives.

    The American people have spoken, and there wishes should be 100% respected. The GOP in both houses of Congress should grant the President EVERYTHING he asks for; except for one minor item…no 2nd Ammendment restrictions;..ie Gun Control.

    - Let the Bush tax cuts expire
    - Let tax rates rise
    - Tax the rich
    - Pass more regulations
    - Fully implement ObamaCare
    - Spend more
    - Create more programs
    - Pass a 2 or 5 or 10 trillion dollar stimulus plan

    I mean after all, elections do have consequences. The Democrats should be made to take 100% ownership for the economy. I say to the GOP…DO IT!!! I will support you.

    When it all comes crashing down we know who to blame.

    And no, I am not being sarcastic here. I really do mean this.

    Over the past how many years have you and everyone else been telling us that there is no going back. This fiscal situation cannot be fixed. That a collapse is imminent….etc, etc. So why fight it anymore. Give it to them.

    Again, no, I am not kidding.

  6. old nurse

    What do you think would have happened if one of their drones was flying in international waters just off the coast of DC! Of course, we would have shot it down. US foreign policy: do as I say, not as I do.

  7. Art Barnes

    Greg, a week of surprises, now the general has resigned, gas rationing, still many out of power in the east, just can’t wait to see what next week rolls out. Couldn’t tell you what will happen but you can bet it won’t be positive as haven’t seen positive for a while now. As to Iran not afraid of anybody, just posturing. I remember the big bully that I wasn’t afraid of in school until he hit me and then let me tell you I got afraid real quick. Iran is desperate to make a deal and if the State Department plays into them I could give them some lessons in poker as they could certainly use it. I can’t believe our State Department thinks that two pair beats a straight, Iran is simply outplaying out liberal State Department. Given enough time though Iran will over play its hand and may then be used by the government as a way out of a bad economy. We shall all see soon as throughout history many loud mouths with puffed up chests have lost their country when posturing gave way to hostilities.

  8. ca

    Who do you blame for?
    Republican !!!!They lost the war but still create problem

    • Greg

      CA,
      Both parties have created this mess that ALL Americans will have to endure. Thank you for your comment.
      Greg

  9. Mickey

    Greg, let the light shine on all at fault, we the people are at the top with the bankers, politicians, corporations & the court system! To much candy spoils the whole class, while no teachings of work ethics leads to dependency & man we got it bad!

    Todays news retired head of the CIA, 4 Star Gen P. steps down because of cheating on his wife! Now this does not add up, there is more to this than the story said. Looks like the walls are closing in on many high ranking people & it will grow as the ball of twine thrown out get smaller & smaller until they start eating their own & they will!

    Well the lay offs are under way nation wide, look for the gov to pass more regs & track every penny a person has, a gov in decline will do the most evil things as the public sets by & watchs until it is their door they come beating on.

    I keep reading more dire warnings about the lack of updating our Nuke plants, these privately owned power companies will not put up the money to buy the needed generarors to keep fuel pools cool in a complete power loss & the NRC keeps upping the amount of radation is safe for man, plants & amnials! If Mother Nature gets mad or if its a man made FUBAR, we would be wishing we never closed Coal Power Plants to keep the nuke plants going! We are shipping are Coal to China, another FUBAR by the EPA & out right greed!

    A hint to the middle class, I was at a Dollar Tree store today & it was packed with all sorts of folks, from poor to well to do & the shelves were being emptyed out, my 1st time there & I will return next week when the trucks run again, great deals on food & nothing is above a Dollar, I wonder how long it will last?! H.I. can come when you least expect, right?!

    I could rant on, but others have great stuff to add also, you job is a hard one & you it are doing very well, thanks from many of us in this small town!

  10. average joe

    Greg, I rarely post, but as I no longer watch any tv, certainly NO of these stupid so called “news” show, but I do enjoy the info I get when I come to sites like yours.

    Frankly, I see no way out of this. Pimpco just out out a tweet saying this debt of the fiscal cliff is like the grand canyon, well he’s only partly correct, the repeal of bush tax cuts, sequestration, etc, all that is just the dept to get out of the grand canyon. The REAL fiscal cliff, i.e. our debt, now approaching 20 trillion, is more like the levels of the Mariana’s trench.

    For me and my family, I work several jobs now thru my small business (when I say small, I mean 4 people, and that’s it), anything I can get, we are basically hunckering down, paying off our debt and I will be closing my business by the end of the year. God knows what Barry’s going to inflict businesses with, and its not like smaller sized businesses have hoards of people to figure it all out.

    For the first time, I feel absolute real sadness, and at the same time I am at peace, the only way this works now, since the takers outnumber the producers, is for the system to crash, and it won’t be long now, its getting closer and closer to 20 trillion in debt.

    So, I do pray for this country, but for my family and I we are hunckering down big time. Full disclosure, I did vote for Romney, at least with him, I felt he would not evilanize small businesses that Barry takes so much pleasure in doing. At least with romney, I know for me, I would have expanded by 1 person, now, I frankly see no point, my business was already on life support, so I see no sense in delaying the inevatible for my business. At least with romney, the revenues would have gone up.

    But now, frankly, I don’t care anymore, I’m taking care of me and my own, the takers can go to hell, and I don’t mean the people who genuinely are facing hard times who want to work but can’t find anything, I’m talking about the Obots who want their damn “free” ObamaPhone etc while sitting on their butts eating junk food bought from their food stamps.

    so, thank you for your website. And will be waiting for the crash, because its coming, there is no way around it, spending will accelerate, and revenues will sharply decrease. There is no way to avoid this reality.

    • Greg

      Average Joe,
      Thank you for the comment and sharing your analysis. I think you are pretty much spot-on man!!!
      Greg

  11. Franzpick

    “…some kind of deal will be made…”

    Our 2 party dictatorship has been self-dealing for decades: America’s debt-financing is now so fatally extended that “some kind of deal” now is only the cure more deadly than the disease. I hope Americans and responders here can soon elevate their thinking above and beyond one more 2 party compromise.

    • Greg

      Franzpick,
      I cannot argue, but these are the fools that are running the country.
      Greg

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