Weekly News Wrap-Up 12.28.12

11By Greg Hunter’s USAWatchdog.com 

There are just two stories that should be on everybody’s radar this week.  The first is the “Fiscal Cliff” or, as I like to call, it the “Blame Game Theater.”  The other big story is the Middle East.  Both of these stories are multi-faceted.  The “Fiscal Cliff” should be of great interest to all Americans.  This is simply a disgrace, and both sides should be taken to the wood shed for letting this get out of control.  The deal they have been talking about is less than half of what the Erskine Bowles commission was asking for (around $4 trillion), and that only slows the growth of government.  Many say the best thing we could do is go over the “Fiscal Cliff. “ At least we would get some real spending cuts.  I have taken some heat for suggesting tax increases.  I DO NOT think taxing more so we can spend more is the answer, but blowing another bubble and putting it off only makes things worse.

In 2001, we should have gone into recession, but instead, we got a housing bubble.  In 2008, we should have taken the big banks to receivership; instead, we bailed them out and continue to bail them out as they are technically insolvent.  If they were solvent, we would not need phony accounting and a $40 billion a month bailout provided by the Fed to infinity.  If we do go over the Fiscal Cliff, John Williams at Shadowstats.com says that “Would Trigger Confidence Problems That Never Could Be Recovered Fully.”  This is not only a debt crisis, but a real crisis in leadership by both parties.  

The other big story is the Middle East.  They are trying to come to some solution in Syria, but both sides are still fighting it hot and heavy.  44,000 Syrians have died in the nearly two year old civil war, and there is really no end in sight.  The fighting has already spilled over into surrounding countries and the possibility of a wider war is what makes this very dangerous.   

On the Eastern side of the Middle East, Iran is conducting war games from the Persian Gulf to the Northern Indian Ocean.  The U.S. and its allies have heavy presences there to stop Iran from blocking the Strait if war breaks out.  40% of the world’s sea-borne oil exports pass through the Strait of Hormuz.  It makes me nervous when any country conducts war games in close proximity to potential adversaries.  War can start by accident.  It can also be started by either side on purpose.  Either way, war in the Middle East would be a global disaster, especially with such a fragile global economy.  By the way, nothing is settled between Israel, Iran and Hamas.  I look for renewed fighting to break out in 2013.  

Join Greg Hunter for the Weekly News Wrap-Up for his analysis of these stories and more.

Comments
  1. Rev. William Joslin

    Great report Greg! I hope you have a Happy New Year! I think 2013 is going to be a wild ride.

  2. jay

    Greg: Good gift wrap up.By cutting 1 tree at a time eventually there will be sunshine enough for a garden.

    • Greg

      Thank you Jay, Art and Mitch for the comments and support!
      Greg

  3. art barnes

    Washington is broken, it doesn’t work, that roman circus needs to be totally revamped. Its the result of their own doing, never fixing anything till after its broke, then only patching it up, but always taking care of themselves.

  4. Mitch Bupp

    Thank You Greg for your reporting ….

  5. Charles H.

    Dear Greg,

    You know, I saw Greg Hunter on a blog today – he was looking pretty good. I mean – he was animated; and gesturing, and shining-out to where you could almost feel that that was him. I don’t always agree with his points: but I just had to sit back and watch, with some satisfaction, how he has grown into his work. I sure hope he doesn’t have to cover any graying hair; or comb his locks forward to hide any receding lines – considering the line of work he does. You ought to catch him once in a while! (I hope fame won’t ruin him.)

    • Greg

      Thank you Charles. I don’t think “fame will ruin me.” I just want to inform and save as many as possible. You are very kind.
      Greg

  6. jay

    Greg Where can i buy your site tee shirts? I didnt see anything on the site pages.

    • Greg

      Jay,
      I stopped selling them because they were not made in the USA. In overlooked that when ordering them so I got them in boxes in the garage. Send me an email at “info” and we will work something out if you still want one. Thank you for asking.

      Greg

  7. JoeJustJoe

    Well, somebody must have said something stupid after the markets closed cuz Psycho VIXen (XIV) is breaking down and my sexy VIXen gals (TVIX, VXX, UVXY, VXZ)are rocketing skyward! It’s “almost” a “release the hoooounds” moment! :-)

  8. DAVE

    Hi Greg
    I’m totally in agreement with you and the up and coming collapse will be huge.I believe it will be sooner than later as other countries are on to the scheme but here’s the question.In regards to other countries,would it not be harmful for there own economy if we fail?Just as it would be for us if another one would fall .i.e. The EU. So on that note ,what would prevent the US from just continuing on it’s current.I realize China would like to step in but would they not go down too with the ship??
    Your thoughts please
    thank you very much/Dave

    • Greg

      Dave,
      What is going on today as far a global monetary policy is totally off the charts. It has never happened before. That said, The U.S. will probably be the biggest looser in all of this. The U.S. Dollar is the world’s reserve currency but that is in the process of ending. When the U.S. dollar is no longer the sole reserve currency then that’s when common American citizens will be hit with a very cold bucket of water, followed by an iron frying pan of red hot bacon grease. I do not know how this will all shake out because of the massive manipulation going on around the world but I do know time is running out to protect your assets.
      Greg

  9. Dave (archivesDave) Clumpner

    Thnx Greg for another great report.
    I wish a prosperous New Year for all of us and despite all the
    gloomy news, I’m predicting it’ll be better than 2012.
    Some scuttlebutt I just got from a friend in Huston…

    They’re re-gearing the oil ports to begin EXPORTING more oil & gas
    than importing.
    Second Green Shoot: Reconfirmed ~ There’s a MASSIVE ocean of oil under Gull Island, Alaska and they’re waiting for oil to go back up b4 drilling with the largest rig in the world.. ‘The Liberty’.
    Third One: Our natural gas alone may make us energy independent by the end of Obama’s second term.

    Stansberry and ilk could actually be onto something when they predict
    Obama will become another ‘Roosevelt Third Termer’ by making us energy
    independent.

    • Greg

      Dave,
      I think you are right, but I don’t think it will blossom in time to stop the coming financial calamity. Our debt is enormous and growing exponentially. I think the oil and nat gas story will help us pull out of this on the other side of this train wreck.
      Greg

      • Dave (archivesDave) Clumpner

        Greg,
        The odds are on your side, but recall, both of us thought this ‘train wreck’ would probably occur a yr or more ago.
        The ‘Wrecking Crew’ came up with several more ‘rail patches’ than we anticipated and my guess is they’ve got a few more ready to go b4 we totally derail or self destruct when at last, in accordance with
        their nefarious plans, most of the 99 Per-centers will
        ‘owe their souls to the company store’.
        https://www.youtube.com/watch?v=Joo90ZWrUkU

  10. DAVE

    Greg
    I realize what your saying and i believe it.The thing is,they all have to be in on it.Meaning China ,Russia,UK ect.Really!!!They have to know that there’s no way we can afford to pay it back If America falls ,won’t the rest go down as well?It has to be because they cannot survive without us so on that note it seems the GAME will go on.Here’s the 16 trillion dollar question which is who will be the one that wants to cash out i.e. bonds.
    There in lies another question which is who has the least risk and can with stand without US help??No one i can think of can you??
    thanks again Dave

    • Greg

      Dave,
      There are some other facets of this that you might be missing. Those countries you mentioned are all moving away from the dollar and are using it less and less to settle international trade. China (the #2 economy) has currency swaps with all Asian nations including Japan. (the #3 economy. At some point they pull the plug, and some or all of the $12 trillion liquid dollar assets come home. The inflation will be stunning. Many will not recover financially for a generation or two–some never. Thank you for you comment and participation on this site.
      Greg

      • jay

        Dave/Greg: The Elite secret controllers will in the end turn on the derivities/bond holders to form a united continet. Oil will be liquid gold.Canada,America,and mexico will be controlled by the united nations.
        Conspiracy theory? well i believe what ever is not proven wrong can be possible. Alex jones may be a nut case in some ways,but his documentary the end game is well worth watching.

        • Greg

          Jay,
          I don’t think Jones is stupid. Nothing would surprise me at this point. Thank you for weighing in here.
          Greg

  11. Jan

    Hello Greg,
    Thank you for another year of real news. I have gave up on the MSM a long time ago. I hope you don’t mind my sharing a couple of links on your site. I think both are very good.

    http://www.fortliberty.org/going-galt.html

    Who doesn’t dream of going Gault? I decided today the best thing we can do is go Gault on both political parties. The illusion of a two party system is a sham. They vote their own investments in favor of whatever corporate stocks they personally own. They don’t care about the little people, own their own investments so they do the bidding of the corporations. Why to we subscribe to this crap? I quit, if they want my vote, they can damn well earn it.

    Another link for you to an rather long, but always excellent artile by Jim Willie:

    http://www.financialsense.com/contributors/jim-willie/coming-isolation-us-dollar

    Enjoy your New Year and keep up the outstanding service you provide on this site.

    • Greg

      Thanks Jan for your comment, links and participation in this site.
      Greg

  12. FallingLeaf

    Yes, we can call, it the “Blame Game Theater”, but I see it more as just a puppet drama and we are the little children in front of the small stage watching a few actors.

    Let’s understand this, the corrupt politicians are not going to listen to us, they are going to do what they want to do because it’s no longer, “…of the people, by the people and for the people…”.

    It is a time to take a stand (book out about just that booksbyoliver.com by Oliver) that shows Americans taking a stand against federal tyranny & ends up starting the 2nd American Revolution. I recommend it.

    We got tired of the continuing resolutions by congress and now they are going to give us something new called a ‘mini-solution’. It’s just a puppet show for the peasants.

    • Greg

      Thank you FallingLeaf.
      The solution they were fighting over was less than half or the Erskine-Bowles. Now this stupid “mini-solution” Debt rating cut here we come. This is pathetic and a disgrace. Thank you for your fine comment.
      Greg

  13. Janice

    It was increasingly clear towards mid-November that both Republicans and Democrats were putting on a show; there was no intention to avert the fiscal cliff. Some stopped paying attention to this nonsense back then.

    Obama as a 3rd term president; possible but unfortunate if it happens. There has been a exacerbation of problems, everywhere, since the turn of the century and it seems to have increased moreso during his term.

  14. DAVE

    Greg
    I agree and also see the large movements in gold as many CB’s are increasing.So in your opinion ,your thinking China will pull the plug.Well they are certainly positioning themselves but it would seem to backfire as trade with the worlds bread basket will be damaged.Anyhow ,is there any leading indicators that you lend yourself to as some sort of alert?like interest rates or the dollar index ect.In addition to those ,as fragile as things are,i think Japan and Europe are a huge liability even though it’s the US that’s the elephant in the room
    your thoughts
    thanks //Dave

    • Greg

      Dave,
      I look at this as a process not an event. The plug has been in the process of being pulled for several years. It is just now picking up speed. The final push over the cliff into hyperinflation will happen at a quickening rate. Many in government know this and that is why, for example, the senate just passed a bill that will give NY and NJ $60 billion (printed out the tin air dollars) for Hurricane Sandy damage. New York and New Jersey are in debt about $600 billion between them. They, in effect, are getting the rest of the country to help them fix the mess because they are beyond broke. They can’t print money and the federal government still can. So, print they will until the plug is finally pulled out of the wall. What’s another $60 billion anyway? It’s not just China doing the plug pulling, it is the rest of the world that is tired of the U.S. printing money to buy oil, fund wars and live well beyond our means. By the time most Americans put down their I-Phones and wake up it will be way too late-they will be wiped out. The two big signs will be rising inflation and then rising interest rates in that order. We already got rising inflation.
      Greg

      • JoeJustJoe

        The exchange traded ETF that shorts China (FXP) is saying that China will more than likely begin increasing investments in the “safety” of the U.S. dollar soon. I realize nobody but myself can see this, Greg. The ETF’s that short the world markets (EDZ, FXP, EEV) are my next “great” play so don’t worry if you missed the 50%+ moves in the sexy VIXen plays (VXX, TVIX, UVXY) I have been touting the past few weeks. My job (as always) is to show you where the money is whilst you fine folkes spew about what you “think” will happen next. :-) BTW, if ya see Yra Harris tell him I am getting even closer yet to joining him in his gold trade. I figger he only needs to lose another 40% or so of his money and the good news is the last 40% “usually” comes very quickly as the sheeple bail at ANY cost. That’s when I step up to rescue Yra from the smoking ruins of his gold trade ;-)

        • George

          So, if the brokerage you trade on or one of their many counterparts default, how does that impact your accounts? I will take a position in my pocket over all the positions on Wall St. In the end, unlike the government,all I can spend is in my pocket.

  15. tsuki

    I appreciate what you have said, and I want to thank you for introducing me to Jim Willie.

    While I am an audio learner and read for reinforcement, I spent a significant portion of my youth in Asia. His latest newsletter disturbed me. Read the portion on The New Asian Trade Zone.

    This concerns me. I would request that you look at the latest developments in the Asian Theater and use your skills to analyze down what this means to the US in the long term.

    Thanks.

    • Greg

      Thank you Tsuki.
      Greg

  16. Ugly

    There is really no way out of this other than bankruptcy. Time is not on our side. Too few workers and too many needers. I just renewed my bank CD at 0.35% interest. But I dont trust mutual funds anymore. I have 4 mutual funds, I will keep 1 and cash 3. I have several whole life Life Insurance policies. Will probably cash in all but 3.

    I would rather have the monies in my pocket that theirs.

  17. Doug

    Greg,
    I think we all agree on this site that America has allowed the politicians to gain outrageous poweres that has over time diluted the constitution and a free enterprise capitalistic society. Hell, you say capitalism and it’s like shouting out profanity. I’m out in California and what a mess, AND, the voting public actually asks for it. The sad fact is we are now outnumbered here in California and indeed within the Nation. A socialistic society is now in place and most want government to take the lead sacrificing any personal financial advancements. Work hard and get ahead, gone. Challenge political authority, gone. Show your family and future generations by example that honest hard work, the will to achieve and excell personally and financially is the American way, gone. Not for us, but for a little more than half of America, and it’s very sad. So, I so enjoy you and your guests because there are ways to position oneself in this changing America. We are realists and understand that we are powerless against the propaganda and scociopolitical movement. However, you and your guests offer compelling thought to minimize the coming collateral damage. Thanks for all that you do with the potential hope of being able to navigate through this shit.
    Thanks,

    • Greg

      Doug,
      2013 will deliver one heck of an economics lesson to America. Thank you for your comment and support.
      Greg

  18. frosty

    Greg,

    Those running the show won’t be taken to the wood shed, as suggested, but will be rewarded for the great job they are doing. Follow the power/money trail to see why.

    As I see it, the global show that we,the people,sit idly by and watch in our spare time while not tuned in to the ‘X-Factor’ or ‘Two and a Half Men’ or talking on our “Obama phones”, has three main features: the welfare state, the wars and the ballooning deficit.

    Although these issues are detrimental to our personal safety, prosperity and liberty as a nation, we the people are not running the show. Most of us are only dimly aware that something is not quite right in America but prefer to act as adult children looking to our parent, the State, to take care of us.

    In this stage, we are just “shareholders” assigned the duty to fund the three enterprises for the sole benefit of an unholy alliance of a small minority of others, namely politicians and the banking cartels that own them. These partners have organized the show and are conducting its operations to generate themselves tremendous rewards. By expanding the welfare state and fomenting endless war, politicians enhance their power and control over us. The banking cartels, by aiding and abetting the politicians in their cause, lend them fake money at interest to generate fabulous profits. It’s a wonderful world for these parties; a something-for-nothing enterprise they have going and one they will not willingly jeopardize.

    However, as with any unsustainable operation, ongoing crisis is inevitable. At these times, our “appointed leaders” will moan and complain about the situation while pretending to care about the shareholders. In reality, and speaking of wood sheds, they will be as willing to try and reduce the deficit, or cut back on wars as they would be willing to march out to the wood shed to punish themselves. Deficit spending, after all, brings great rewards to both the politicians and the banking cartels; it’s their very life’s blood.

    I’m guessing, with recent history as a guide, that the latest crisis will result in a more polarized society, increased dependency, higher taxes and expanded wars. The unholy alliance, basking under the glorious halo spun over them by their loyal media for having fought so hard and saved the day will once again, graciously and humbly, accept their rewards. The indebted shareholders will watch the can tumble a little farther down the road again and, relieved that some one else has saved them, settle back in front of the TV until the next crisis arises to disturb their slumbering free fall. Keep nudging us to wake up and smell the roses Greg. Thanks for all of your efforts.

    My best wishes to you for the new year,
    frosty

    • Greg

      Thank you Frosty for the comment and analysis.
      Greg

  19. DAVE

    Hi Greg
    Thanks for the info.i totally agree about the inflation and the bogus numbers they issue don’t help.I don’t think we will see any movment upward on interest rates though as the Fed cannot allow that.If the rates move up even 1% the debt would jump dramatically.I believe a good inflation indicator is the MDA on the DXY 77 being the break point. yyour thought Thanks Dave

    • Greg

      Dave,
      Not really concerned with the day to day. I think gold and silver will both have a big year in 2013.
      Greg

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