Wednesday, July 18, 2007

Opening the Gates of Hell

EUR/USD 1.3784 Hi 1.3834 Low 1.3779
USD/JPY 121.89 Hi 122.34 Low 121.57
AUD/USD 0.8761 Hi 0.8789 Low 0.8716
EUR/JPY 168.00 Hi 168.59 Low 168.00

While the PUNDITS are distracted by the non-vote which will take place in the U.S. Senate, bigger things are afoot. On the 11h of July Senator Joseph Lieberman, a man with no shame and no conscience, introduced an amendment to a Defense Spending Bill in the U.S. Senate which declared that Iran was committing acts of hostility against the United States. No evidence was presented, none was requested and the bill passed unanimously. Which proves just how Anti-War the Democrats are.

That Senate vote gives George W. Bush a clear casus belli for attacking Iran. This time around the U.S. Government is not even bothering with presenting cooked intelligence to the voting public. In fact no-one is talking about the plans which are afoot at all. The mainstream media is far more interested in the Glasgow bonfire and the made-for-television non-vote on a U.S. withdrawal from Iraq. The American Establishment plans on staying in Iraq. Just nobody is keen to mention that unfortunate fact to the gullible American public. For now we are going with the Iraqi War withdrawal charade to keep Mom and Pop happy.

Meanwhile back in the real world the U.S. aircraft carrier Enterprise was moved to the waters near Iran on July 10. This is the third U.S. aircraft carrier now in that area. But hey don't worry it's just a sort of coincidence.

In fact the U.S. Navy spokeswoman, Denise Garcia, has reportedly stated that "These operations are not specifically aimed at Iran." Well gee I guess we can all relax now. They wouldn't lie to us, would they?

The word on the street is that an "incident" involving Iran is likely to occur in August of this year, when Congress is conveniently out to pasture. This "incident" will then justify the next leg of the U.S. military adventure in the Middle East. Charm, charm, charm. So the U.S. killing machine moves on. What are we up to? 1 million dead Iraqis, 4 million Iraqi refugees and no-one is even counting the wounded, the impact of the depleted uranium or the damage to the Iraqi economy and infrastructure. Oh and the nation which launched this unprovoked and illegal attack has lost some foot soldiers. Tut. Tut. I thought wars of choice were meant to be clean and swift at least for the invading party. Well I guess you can't help a few broken eggs, now can you?

The Iranians, of course, think that there's a way to get around this with logic and tactics. So far they have announced that U.N. inspectors can come back into the country. And they have also announced that the Japanese will have to pay for the OIL they buy in YEN. Well they do seem to know the score. But have they figured in Special Ops and made-for-television events like the Bay of Tonkin "incident" or even 9/11? When you think that over all these Iranian attempts to circumvent an attack seem a bit naive.

But this new war is something to look forward to you if you are an arms dealer or run a private army. For everyone else it will just be one step closer to WWIII.

None of this is bothering financial markets where the big news, well sort of, is that Rupert Murdoch, media mogul and war monger extraordinaire, has finally maybe clinched his deal. Hey great. That should see the Dow Jones (the Index not the Company) hit yet another high and keep all those nervous nellies from panicking. We don't panic until we want panic and we don't want panic yet. Stocks are hanging in there. The USD is doing less well. A new record high in the EUR/USD was reached overnight in Asia. Not to worry Sarkozy is coming to the rescue of the USD. And over in Asia the Carry Trade is helping keep the USD/JPY afloat. The USD index still doesn't look healthy but under the circumstances with two wars to pay for and another on the way it's the best that can be hoped for. What we are seeing is people (well the PPT anyway) sticking their fingers in the hole to try and keep the dike from busting open. When it bursts then it will get interesting.

OIL 74.28
GOLD 670.30

GOLD is creeping higher which is no surprise given that some people are planning for Armageddon and even without Armageddon the USD still looks like a very bad bet. The PPT may be working to fight the rising trend in GOLD but that just looks like sticking more fingers in another dike ready to be swept away. Not really much of a strategy there from the PPT, just desperation.

And OIL, of course, has been given a shot in the arm by the very big mess in the Middle East. Which is good because it means even more money for the Saudis who are reportedly the real source of funds for the insurgents killing U.S. troops. What a tangled web we weave.

Well I guess if the powers-that-be are looking to extend this violence, and odds on they are, then they have yet another casus belli just waiting to be dusted off and presented to the public. More war, more arms, more money to some very dodgey war profiteers. The Devil and his minions are sure having a lot of fun.

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