Russia, China and Iran Demonstrate a Show of Solidarity

Better watch your flanks West -

Iran, Syria, Russia and China are planning the “biggest-ever wargames in the Middle East,” according to an unconfirmed report on the semi-official Iranian news site Fars News. A Syrian official denied the claims.

According to the article, the four countries are preparing 90,000 troops, 400 aircraft and 1,000 tanks for the massive joint maneuvers, which are to take place along the Syrian coast within a month.

The report states that Russian “atomic submarines and warships, aircraft carriers and mine-clearing destroyers as well as Iranian battleships and submarines will also arrive in Syria” and that Egypt has agreed to let 12 Chinese warships cross the Suez Canal for the exercises.

The West, particularity the United States is participating in the same kind of rhetorical hubris that historically besets an empire, right before it collapses. There have been appeals to historical righteousness (We were a moral country), proclamations of former economic greatness, and when all else has failed, outright threats (Iran, Syria) and bullying (Afghanistan, Iraq, Pakistan, Uganda, China) as well as murder.

Yet delusion runs strong in the prideful. America has become a bankrupt, demoralized, de facto police state under the leadership of both political parties. If you doubt this, please view the chart below and note the trend of the last fifty years -

Nature abhors a vacuum and the former 'losers' of the world are organizing into at least partial display of America's former glory as predicted by this very blog, repeatedly. Unless the US wants to see itself suffer it's first very public defeat in a major war, we need to do some damage control in this country. Only when we have sufficiently removed the plank from our own eye, will we be able to see clearly to remove the speck from our neighbors.

Russia Responds In Syria

Who wants a real war?

The Obama administration says Russia is sending attack helicopters to Syrian President Bashar Assad's regime and is warning about a dramatic escalation in the Arab country's 15-month conflict.

Secretary of State Hillary Rodham Clinton says the delivery represents the "latest information." She says the U.S. is concerned as the helicopters "will escalate the conflict quite dramatically."

I love how Assad has a regime. It's not his government, it's an e-vil nasty thing specifically because we, the all-powerful United States, disagree with it. Of course, the rebels aren't anyone bad, like say Al-Quaeda. and there aren't any false reports, like baby slaughter going on... but you, my longstanding readers know better. Let us jump to the begining of 2011 -

Look for continued unrest with some governments getting overthrown. But as I indicated earlier, the globalists are literally banking on this to occur. We are still not there yet though. More riots need to take place, some shots, some new faces and then, we go to war.

and from this year's predictions -

• Syria  - It appears that the road to Iran lies through Syria. The US will try to draw in Hezbollah through "regime change". (Q1)
• Iran - Time will tell on this one. Iran is a tough nut to crack as opinion is running contrary to Western interests here. IF the US gets Syria, Iran is next. There has been a lot of posturing in 2011, but no one has been able to capitalize. Look for the moral justification route being presented via Iranian "guerrilla forces" "destabilizing Syria and attacking US or NATO "peacekeepers".

Russia getting involved is utterly predictable.(2006) We have been stomping around their territory (Georgia) for quite some time and they are not going to wait until we show up in Moscow to start doing something about it.

Personally, I feel this sort of escalation is good provided both parties restrain themselves. Imagine for a moment that you had a neighbor that liked to jump over your fence and violate your territory. So you install security cameras and an automated turret system. Yes, the situation has gotten ostensibly more hostile, but this is good because either the neighbor is going to cease and desist or is going to get his rear end handed to him. Either way, the conflict ends.

How does that saying go? Good fences make good neighbors...

Iran - Current Situational Analysis - Poisoning the Asian Well

I recently posted an update to the Iranian military action page (along with reordering it so that recent actions appear first). There is a world of maneuvering going on over the last few days -

• Jan 10, 2012 - The IAEA- Iranian officials earlier said the Fordo plant, deep inside the mountains near the central Iranian city of Qom, was build to produce 20-percent uranium needed for a research reactor in Tehran, which produces medical isotopes to treat cancer patients.
• Jan 9, 2012 - Iran has begun uranium enrichment at a new underground site built to withstand possible airstrikes
• Jan 9, 2012 - Iran has sentenced alleged CIA spy, 28 year old Amir Hekmati, to death. 
• Jan 9, 2012 - The Russian carrier Admiral Kuznetsov anchored at Syria’s Tartus port along with the destroyer Admiral Chabanenko and frigate Yaroslav Mudry.
• Dawoud Rajha was received on the deck by a guard of honor of marines under a flyover of Russian Su-33 and Su-25 fighter-bombers
• Jan 9, 2012 - France consigned an air defense destroyer Forbin to the waters off Tartus”
• Jan 8, 2012 - Defense Secretary Leon Panetta says is not yet building a bomb and called for continued diplomatic and economic pressure to persuade Tehran not to take that step.
• Jan 8, 2012 - RQ-4 Global Hawk UAV, took off from the USS Stennis aircraft carrier for for a Broad Aerial Maritime Surveillance Mission (BAMS) over the coasts of Iran.
• Jan 8, 2012 - Ali Ashraf Nouri, a senior commander in Iran’s Revolutionary Guard, told Khorasan daily on Sunday that the Iranian government has decided to close the strategic Strait of Hormuz at the mouth of the Persian Gulf if the country’s oil exports are blocked.
• Jan 8, 2012 - Philip Hammond, the UK's Defence Secretary, warned the regime in Tehran that Britain will not tolerate the ‘very significant consequences’ if it fulfils a threat to block the Strait of Hormuz.
• The HMS Daring is a Type 45 destroyer that has the world’s most sophisticated naval radar is sent to the Gulf.
• French Charles de Gaulle aircraft carrier is dispatched to the area as well.
• Jan 7, 2012 - Iran launches security exercises on Afghanistan border. Mohammad Pakpour, commander of the Revolutionary Guards' ground forces, said the "Martyrs of Unity" exercises near Khvat, 60 km (40 miles) from Afghanistan, were "aimed at boosting security along the Iranian borders," Fars reported. 

The Real Effect
So what on earth is going on? Quite frankly, a large chess match. The US and Israel's goal, along with NATO, is to invade Iran. Russia and China, Syria and Iran oppose this. Let us take a quick look at the events leading up to this from Iran's perspective:

• The US has invaded almost all nations surrounding Iran as part of a larger Geo-political strategy. (In existence before and NOT in response to 9/11 and the War on Terror) This is part of a much larger religious strategy designed to demonize Christianity AND Islam.
• Iran is currently surrounded by US forces.
• The US imposes sanctions on Iran.
• It is actively looking for justification for the war. (In part by using propaganda to paint Iran as aggressors)
• The US is positioning against Syria one of Iran's allies. (Part of the larger move) Israel is also joining the fray.
• And Jordan
• This same strategy was used recently, against Iraq and Libya.
• The US has been trying to wear down your forces recently.
• The French, with the Globalist Sarkozy, have positioned an aircraft carrier near your nation. (They too are part of the broader War on Terror)

It doesn't take a genius to figure out what the US wants to do to Iran. As a matter of fact, they keep screaming it from the pulpits. So where do you stand as a nation?

• The revived Russian Federation says they have your back. (2) (As part of the larger strategy)
• Countries are stating they will buy more oil in an attempt to bolster Iran
• South Korea
• China 
• Japan
• China might have your back. (I would think that would depend on how much they think the US will retaliate.)
• Do you take a shot at the UK's 'advanced' but eminently pegable and juicy target HMS Daring?
• Will NATO take the shot? And then claim you did it?
• You move your cutting edge, highly expensive facilities to where the 'enemy' can't get them.
• Eventually you push ahead with nuclear warheads because if you can get them, perhaps you'll be left alone or at a minimum, you'll take the other side with you.

Overall, I believe all of this is designed to inflame two parties -  The Muslims in the Mideast and the Asian nations. If the US can get Iran, the focus on the war on terror shifts from the Muslims of the Mideast to the Muslims from such countries as Uzbekistan, Turkmenistan, Tajikistan which just so happen to share a border wiiiiiith...........

China and Russia.

Saudi Arabia - Beware the Unintended Consequences

It appears that fragging the Muslims causes, uh...issues -

Reporting from Baghdad, Iraq yesterday, NBC’s Tom Brokaw said the Saudi Arabian monarchy is “so unhappy with the Obama administration for the way it pushed out President Mubarak of Egypt” that it has sent senior officials to the Peoples' Republic of China and Russia to seek expanded business opportunities with those countries.

After remarking on the difficulty of establishing democracy in the Middle East, Brokaw said that Defense Secretary Robert Gates “will face some tough questions in this region about the American intentions going on now with all this new turmoil, especially in an area where the United States has such big stakes politically and economically.”

“And a lot of those questions presumably will come from King Abdullah of Saudi Arabia,” reported Brokaw on the Nightly News. “I was told on the way in here that the Saudis are so unhappy with the Obama administration for the way it pushed out President Mubarak of Egypt that it sent high level emissaries to China and Russia to tell those two countries that Saudi Arabia now is prepared to do more business with them.”

The Real Effect
I wonder who would have thought that bombing a religion country back into the stone age would bring said country onboard with all of the rainbow filled hopes and dream of Democracy! Aren't we special?

Like we observed in 2005, commented on in 2005, and further expounded on in 2006. (In relation to Isr
ael) -

For the record, I do believe that Russia and China are very real and deadly military threats and that the last 17 years of diplomacy are nothing more than an attempt to lure the American people an military into a compromised position in order that they may easily secure dominance.

Look for Russia and China to block the U.S. led Iran sanctions leading the U.S. to impose it's own economic sanctions. Yet, Iran is not in any mood or position to be pressured by anyone, let alone the Great Satan. After this will follow some type of provocation that is tied to or directly the result of Iran's actions. This in turn enrages the "International Community" which sees no other option but to 'deal with Iran'.

The problem then becomes that Russia and China, two enormous militaries, are tied at the hip to Iran. They will perceive this as a direct threat and will most likely launch an invasion against the United States and Israel.

Of course, the US pays well for the time being, so it is in the Sauds best interest to hedge its options by securing alternate funding. Look for continued attrition as countries start siding with Russia and China. Yet, these powerhouses are not all they're reported to be, so some good ole fashioned backstabbing will come into play down the line.

Libya, Afghanistan and Iraq - Oh My

It just keeps getting better -

"I don't oppose all wars. ... What I am opposed to is a dumb war. What I am opposed to is a rash war. What I am opposed to is the cynical attempt by Richard Perle and Paul Wolfowitz and other armchair, weekend warriors in this administration to shove their own ideological agendas down our throats, irrespective of the costs in lives lost and in hardships borne."

“But I also know that Saddam poses no imminent and direct threat to the United States, or to his neighbors, that the Iraqi economy is in shambles, that the Iraqi military is a fraction of its former strength, and that in concert with the international community he can be contained until, in the way of all petty dictators, he falls away into the dustbin of history,” said Sen. Obama.

At least Obama is consistent. But before we delve too far into ideological reasons, let's examine the so-called "rebels" starting with their leader -

The commander of anti Gaddafi rebels forces in Libya has admitted that among the ranks of those fighting against the government are islamic militants who have fought and killed US troops in Iraq, otherwise known as “al qaeda” fighters.

Abdel-Hakim al-Hasidi, who made the remarks in an interview with Il Sole 24 Ore, an Italian newspaper, admitted that he had previously recruited fundamentalists to fight in Iraq, and said that the fighters are “today are on the front lines in Adjabiya”. 

al-Hasidi himself was captured in Pakistan in 2002 and handed over to US forces after fighting against US troops in Afghanistan. He was held in Libya and eventually released in 2008.

 Have you ever wondered why these little wars keep happening? Just why there's so much oppression in foreign lands? Well, this is nothing new in the world and it is routinely designed to operate this way courtesy of our own Central Intelligence Agency -

In his memoir, current Defense Secretary Robert Gates admits that American intelligence services began to aid the Mujahadeen in Afghanistan 6 months before the Soviet intervention. Zbigniew Brzezinski, Jimmy Carter’s national security advisor at the time, told the French newspaper Le Nouvel Observateur in 1998 that it was all true – that creating the Mujahadeen that would later morph into al-Qaeda and the Taliban was an “excellent idea” and he had no regrets, never mind the 400,000 who died as a result.

In addition to attacking Russia in Afghanistan – an effort that would ultimately result in the downfall of the Soviet empire – and plunging that nation into a horrific civil war, the intelligence effort established al-Qaeda as a foreign policy instrument used by the globalists to take down nations and regimes (specifically in Bosnia and Kosovo) and also was used to demonize resistance to forays by the globalists.

and more recently -

Mr. al-Hasidi is reportedly a member of the Libyan Islamic Fighting Group (LIFG), also known as Al-Jama’a al-Islamiyyah al-Muqatilah bi-Libya. It is the most powerful radical faction waging Jihad in Libya and was officially designated as an affiliate of al-Qaeda and the Taliban – both CIA creations – by the UN 1267 Committee. LIFG was founded in the fall of 1995 by Libyans who had fought against Soviet forces in Afghanistan, in short for the CIA and the ISI.

In 2007, documents captured by allied forces from the town of Sinjar, showed LIFG members made up the second-largest cohort of foreign fighters in Iraq, after Saudi Arabia.

Not surprisingly, another intelligence asset, al-Muhajiroun, is active in Libya. Al-Muhajiroun was involved in recruiting British Muslims to fight in Kosovo. The now banned organization, based out of a London mosque, is known to have harbored a number of British intelligence plants, including Haroon Rashid Aswat, supposedly the mastermind of the London 7/7 bombings. In 1997, the group’s leader, Abu Hamza al-Masri, started working with two branches of the British security services, the police’s Special Branch and MI5, the domestic counterintelligence service.

This same Zbigniew Brzezinski would go on to write the tell-tale look into Ordo ab Chao geo-strategic warfare in, The Grand Chessboard. Explained briefly, this doctrine of warfare seeks to create the chaos necessary to destabilize the world so that it can be controlled directly. This is exactly why we continue to see this revolving door of intervention, wars and subsequent bankruptcy that robs the populace of their capital.

Let's get back to ideology for a moment. This is an illegal war. There has been no declaration of war by the Congress, not even a censorship resolution on Qaddafi. To quote Congressman Ron Paul -

Article 1 Section 8 of the Constitution could not be clearer: the power and obligation to declare war resides solely in the US Congress.

Do you really support an action by any elected individual that flies in the face of his sworn oath? How can any individual that holds an elected office attempt to exercise his office when he flagrantly violates his constraints and most shockingly, arms those who reportedly carried out 9/11?

But let's stick our head in the sand further and ignore the illegality of it for a moment. Behind Afghanistan, Iraq and Pakistan this is the fourth country that the United States is currently committed to military operations in. This says nothing of our troop commitments to countries such as Georgia (9,000), South Korea (30,000), or Japan (50,000) Or heaven forbid we look into Romania, Bulgaria, Kyrgyzstan, Poland, Germany, Kosovo, Turkey, Saudi Arabia, Kuwait, Bahrain, Qatar, UAE, Somalia, Djibouti, Aruba, Egypt, Oman, Diego Garcia, Australia, or Singapore. Indeed, is there a country where we don't like to play soldier?

So just how much does this global action cost? As much as all of the world's military budgets combined. (Of course, you can add on Libya now too.) Where does that leave the United States fiscally? Technically, we're bust. Zip. Out of $ -

“If the United States actually defaults on our debt it would be catastrophic,” Dimon, 55, said at a U.S. Chamber of Commerce event in Washington today, when asked what may happen if the U.S. fails to increase its $14.29 trillion debt limit.

The government will reach its legal debt limit between April 15 and May 31 if Congress doesn’t act, the U.S. Treasury Department said March 1. The department, which may provide an updated timeline in early April, has said it could get an extra eight weeks before it exhausts emergency steps to avoid breaching the limit.(Uh, no. We hit it already.)

Of course, when confronted with such a thing, the Republicans will fold and the spending will continue. But with quantitative easing absolutely destroying purchasing power here and abroad, the Fed is confronted with a snafu. Either default and lock itself out of foreign markets or continue inflating and stoke the fires of rebellion abroad. (Take a guess at what they have chosen so far.)

Not surprisingly, local governments are just as bad -

In a speech before the United States Chamber of Commerce, JPMorgan Chase Chairman and CEO Jamie Dimon told the audience:

I wouldn’t panic about what I’m about to say. You’re going to see some municipalities not make it. I don’t think it’s going to shatter America, I just think it’s a part of the credit cycle.

He went on to say that some municipalities will need to renegotiate their debt and it will be hundreds of them that may “not make it.”

More immediately, foreclosures are leaving housing empty, food stamp usage is abysmally high, and unemployment stands at 15.9% (U6. It is over 22% if you take out all the shenanigans).

Let's look at just what we're bringing the good people of Libya. All this so-called freedom and stuff. Of course, this is from the same group that gave you depleted uranium in Iraq, look at the pictures (Warning: Graphic) if you have the balls to stomach what your tax dollars are really doing to the world.


And in what is the final oppinion on all of this, the NATO commander gives his take on the likely outcome  -

Speaking some 10 days in to the war on Libya, NATO chief Anders Fogh Rasmussen today said “clearly there’s no military solution” to the conflict, echoing the slogan NATO officials have constantly trotted out to explain the continuation of the Afghan War.

There you have it, billions spent. Thousands dead. And NO solution. This has nothing at all to do with "humanitarianism" or "justice". This has everything to do with removing an individual in a sovereign nation that isn't towing the globalist line and out of the ashes creating a new ethnic war. Of course, astute readers of mine knew that back on March 1st.

Libya - Because What the US Really Needs Is ANOTHER War

Like the exposed fraud that blames everyone else in a futile attempt to cover up his own misdoings -

US Special Forces have reportedly landed in Libya to train anti-Gaddafi rebels as a western-backed coup d’état in the oil-rich nation nears, with British and French “defense advisors” also arriving to set up training bases in the rebel-controlled eastern region of the country.

According to a report in the Pakistan Observer, hundreds of special forces personnel from the US, Britain and France arrived on February 23 and 24 in “American and French warships and small naval boats off Libyan ports of Benghazi and Tobruk.”

The article states that the report was confirmed by a Libyan diplomat in the region, who said that “The three Western states have landed their special forces troops in Cyrinacia and are now setting up their bases and training centres,” in a bid to bolster rebel forces resisting Gaddafi’s militia in the surrounding region.

“The Western forces are reportedly preparing to set-up training bases for local militias set-up by the rebel forces for an effective control of the oil-rich region and counter any push by pro-Qaddafi forces from Tripoli,” states the report.

The Real Effect
Training bases? Oh yeah, that won't devolve into a "peacekeeping" mission complete with lucrative oil contracts to uh, compensate us for our generosity. Of course there are scores of problems with this mentality invasion:

1. We absolutely cannot afford this.
2. This is none of our business.
3. This will most likely turn into a catalyst for a world war. (Think Muslim vs. Christian)
4. The Libyans are doing just fine taking care of this war themselves.
5. Aren't we in enough wars already? Afghanistan, Iraq, Pakistan, Yemen, etc...

As if this wasn't enough, we get the usual policy hacks spitting out their support for Empire Building, liberty in Libya. They include the usual PNAC bunch, the same group that gave us 911 -

• Paul Wolfowitz
• Elliott Abrams
• Marc Thiessen
• Peter Wehner
• John Hannah
• William Kristol
• Robert Kagan
• Dan Senor
• Eric Edelman

Yes gentlemen, how's about we secure our border?

The truth of the matter is that this is the same old Ordo ab Chao policy that created most of the messes that we are in today and will create new ones for future interventions. Of course the IMF will need a piece too, to help with the rebuilding and all.

Now, imagine for a second that Iran invaded New Hampshire because they were struggling to be free. Would the rest of the United States stand for a foreign invasion by a religion that is hostile to our own? Further, why should the Arabs tolerate our presence there?

One last point, with Rahm Emmanuel now in charge of Chicago, I fear that a false flag will be staged there to justify an all out Christian jihad coming into 2012. Of course time will tell on that one.

The pieces are all connected, you just have to look long enough to find them all.

IMF Riots take Hold

With Iceland, Greece, Morocco, Algeria, Tunisia and other countries going before them Iraq, Lebanon, Jordan, Syria, Yemen, Albania and Egypt take a stab at rioting -

The Egyptian dissident Mohamed ElBaradei warned President Hosni Mubarak today that his regime is on its last legs, as tens of thousands of people prepared to take to the streets for a fourth day of anti-government protests.

The Nobel peace prize winner's comments to the Guardian represented his strongest intervention against the country's authoritarian government since he announced his intention to return to Egypt to join the protests. "I'm sending a message to the Guardian and to the world that Egypt is being isolated by a regime on its last legs," he said.

His words marked an escalation of the language he used on arrival in Cairo last night, when he merely urged the Mubarak government to "listen to the people" and not to use violence.

The Real Effect

Of course, how far behind is Japan or the United States for that matter? If the Suez Canal gets shut down, commodity costs, especially oil will probably explode as the vital shipping channel stops traffic.

As I stated back in May of 2010 -

There is a fundamental change in the way the middle-class and below of the world view the world. An "enlightenment" if you will. Here is the crux of the problem though. The globalists understood that the sheep would wake up, in fact they anticipated and planned for it by naming it the IMF riot. The relevant question is, who can outflank who here? Will the people get to the globalists before they are able to pull the trigger on the full police state?

In the Religious War Series, I outlined the sides that would start moving. Notice the following countries listed -

Side 2: Muslim/Communist -

• Russia
• Asia (Afghanistan, Pakistan, South Ossetia)
• Mideast (Iraq, Iran, Syria, Lebanon, Palestine, Gaza)
• African Union (Yemen, Niger, Ethiopia, Somalia, Mauritania, Mali, Algeria)

Side 3: Indo-China

• China
• North Korea

The Muslims are sure getting whipped into a frenzy. Gee, I wonder who's doing the driving? I expect that it will emerge that the U.S. is behind this via some alphabet soup agency. It appears that side 2 and 3 are getting goaded, one of the questions becomes when is side 1 (The Christians) going to receive the same treatment?

I believe that is being positioned for possibly late 2011, probably mid-to late 2012. (As stated in 2011 predictions)

With much of the fallout from "The Currency War" devastating the global economies, the action leaves the banks and hits the courts eventually ending on the battlefield. (More towards 2012)

• Worldwide, America is blamed for the global economic fallout.  (CDS, MBS securities)
• This stokes anti-American/liberty resentment which will find a place to mature later.
  
• A world war by the end of 2012

Look for continued unrest with some governments getting overthrown. But as I indicated earlier, the globalists are literally banking on this to occur. We are still not there yet though. More riots need to take place, some shots, some new faces and then, we go to war.

Update
Wow, that certainly didn't take long. The Telegraph is reporting the following -

The American Embassy in Cairo helped a young dissident attend a US-sponsored summit for activists in New York, while working to keep his identity secret from Egyptian state police.

On his return to Cairo in December 2008, the activist told US diplomats that an alliance of opposition groups had drawn up a plan to overthrow President Hosni Mubarak and install a democratic government in 2011.

Show of hands, who thinks that the Arabs will like that we're actively messing around in their countries? Anyone, anyone?!?

2011 Predictions

In what has become a mainstay here at the Real Effect, I strive to offer my readers with an excellent view of what is coming down the current events pipe by offering cutting-edge and usually provocative predictions.

Let us look at the past successes -

• 2010 (1,2,3) - After a three year absence, the predictions returned with a stunning 95% accuracy in part I, part II will be along shortly.
• 2007 - 2009 - Due to time constraints on research, the predictions became distributed throughout the year, peppered inside various articles. I leave the collection of those predictions to the reader for the time being.
• 2006 - The first incarnation of the annual predictions saw an accuracy rating of 69% and stunning prognostication of the following major events:
• Housing market collapse
• Democratic Congressional takeover
• Iran war targeting (Resulting in the resignation of Fox Fallun)
• China and North Korea identified as potential threats
• Oil/Gasoline price explosion
• Religious demonizing and marginalization
• Israeli Ariel Sharon's health issues

However, we here at The Real Effect are not in the business of rehashing the past, which is a matter best left to other parties. Presently we shall stick to our strength of making future predictions. So it is without further adieu I present the 2011 predictions! (Keep in mind, that all of this is barring what has become commonly called a WTSHTF scenario.)

Economy

• Europe detonates, especially in the east -
• Eastern Europe sinks to crisis level with reports of food shortages, rioting and widespread Depression.
• Hungary (10 Yr 8.02%) may be the first to go.
• Western Europe contracts massively, putting extraordinary pressure on the Euro. But the call out of Belgium isn't about revoking the Euro, rather about the preservation of the European Union and the need to 'pull together'. I would expect that we could begin to see propaganda calling for a United Europe in the face of "x" (economic crisis, terror, war). Ultimately in the endgame, foreign creditors feel the massive pinch as they try to protect their investments, but the lack of a favorable response by the people will lead to war with the far east, but not yet.
• Bonds play an absolutely critical role with the European Financial Stability Facility taking center stage.The days of "free money" are coming to an end.
• Germany  (10 Yr 2.958%)- Notice how they refused to implement stimulus and now they are recovering? Yet in order to achieve a United Europe that involves Germany bailing out everyone else. This will probably lead to massive protests by the Germans over forced foreign austerity.
• Greece (Bonds - 12.01%) Still in a world of hurt
• Ireland (10 Yr 9.058%) was once the economic jewel of Europe, but recently Moody's slashed their rating by five levels. (How does that EU bureaucracy taste, eh?)
• Portugal (10 Yr 6.682%) - Dying on the vine, they will need foreign intervention.
• Italy (10 Yr 4.8%)
• Spain (10 Yr 5.453%), France (10 Yr 3.32%) and Belgium
• United States
• No recovery. The public is aware, but the media begins to be aware that all of the so-called recovery talk was nothing more than statistical nonsense.
• Consumer spending hits a wall and continues to decline moderately.
• Almost all classes are spending significantly more on food at home. (Sales at fast foods down?) Esp The poor (below $19,301)
• Housing costs have gone up significantly for the poor.
• Health insurance costs are exploding for all classes, esp middle - rich.
• Education costs have gone up for all but the poor. Unemployed students will build the coming revolution. (What else do they have to do?)
• 
• The country faces the worst Christmas in at least 25 years. It is very possible that this not be immediately realized because of nominal reporting but the devil is hidden in the details like margin compression, something Karl Denninger has been adamant about for quite some time.
• As this plays out throughout the first quarter, this kills off many struggling chains or at a bare minimum, (barring "bailouts") sets the stage for later Corporate Death.
• Massive Unemployment U-3 goes to 11%, U-6 to 18.5%  (Yes, I know I'm asking for it)
• 
  
• 
  The Employment rate continues to plunge
  
  
  
  
• Millions more people fall off the unemployment rosters.
• Actual Inflation is rampant and MASSIVE (+10-20%)
• Commodities - MASSIVE increases in cost. 
•  

• Oil becomes a political issue again (Due to being dollar driven) It will easily top $100 a barrel and probably aim for $150 again. (In line with last year's prediction that it will become an issue again later.) Yet people are using far less oil.
• 
• Gold - $1800 - $2000, Silver - $40 - 60
• Expect a massive rally in the first quarter of 2011, cooling off for the summer and then another strong rally at the back half of the year.
• Silver becomes especially difficult to physically source as the Comex cracks and demand goes up. (Perhaps hitting $40 in Q1, then cooling down until winter)
• Cotton - Clothing becomes expensive. This will eat away at many "cheap" clothing alternatives like Wal-Mart and Target.
• Food becomes more expensive, shortages continue.
•  
  
• Denninger -
  

  The lowest quintile - the poorest Americans - are spending 23% more on food, 8% more on housing, and 9% more on health insurance.
  
  What's worse, they're not spending less on food away from home.
  
  This is the key. They're not shifting spending (as you can see in the above table) they are being forced to spend more even as their income decreases.

• Local governments collapse
• Municipalities disband and declare bankruptcy to avoid liabilities. In fact, it's already starting.
• State governments stagger
• Deficits swell as many budgets were predicated upon the "summer of recovery" which turns out to be less of a recovery and more of a flat-line.
• Federal government surges nominally. While appearing to die, the federal government starts consuming everything in a dire attempt to stay solvent. (Sink or swim mentality)
• Currently the budget deficit is $202 Trillion (Including unfunded liabilities)
• Pensions are gradually shifted to state/Federal funds.
• Bond rates collapse further
• FDIC is still insolvent and its line of credit at the Treasury Dept. legally runs out
• Food stamp rates will continue to soar.

• Foreclosure-gate rocks the world
• Housing prices decline nominally by at least 5% (As Vox Day points out this is the amount of the 2009 tax credit) more likely 10% and perhaps it gets as bad as 20%.
• Please note that previous bubbles do not lead the way of the next economic expansion.
• H.R. 3808 is resurrected by the Republicans and signed into law. (This will be seen as bipartisanship)
• Individuals and companies attempt to protect their capitol by investing in anything that is inflation proof.
• Minor to moderate bank runs

 

• Stocks sell off nominally, finally.
•  Many of these institutions are holding a certain "value" on their books with regards to housing prices. If these values start plummeting, the banks will either be forced to seek another bailout or get crushed.
• The markets were propped up by MASSIVE injections of liquidity in POMOs and QE 1 and QE2.
• HFT (High Frequency Trading) becomes a mainstream term due to increasing exposure to the concept by the mainstream media. (Adobe)  

War
With much of the fallout from "The Currency War" devastating the global economies, the action leaves the banks and hits the courts eventually ending on the battlefield. (More towards 2012)

• Worldwide, America is blamed for the global economic fallout.  (CDS, MBS securities)
• This stokes anti-American/liberty resentment which will find a place to mature later.
  
• A world war by the end of 2012 (See the Religious War Series for details) 
• North Korea/South Korea trade volleys, but do NOT go to war. I don't believe this particular feud is at a fever pitch quite yet.

Politics
Having swept into power in 2010, the American populace's stomach for shenanigans is limited and the parties know it.

• The neoconservative version of the Tea Party takes its seats and promptly sells/blows out.
• To be sure there will be plenty of grandstanding about "austerity", but sacred cows like defense spending, corporate welfare and education will be supported by the NeoTeas.
• Critical legislation and opportunities (Like an End the Fed bill) are torpedoed by the appropriate sides.
• I will go so far as to say that a major 'patriot' will betray the movement.
  
• January - A lot of rhetoric, but not a lot of results. Talks by Republicans will resume of obstructionism and "dirty politics" by Obama.
• Presidential Race heats up - May?
• The third party "change" meme becomes more palatable, but not yet as frustrations lead to a party that will eventually become the Global Party
• The cry will go out that 'In this hour, we cannot afford to be divided.'

Religion
After a massive downturn over the last 5 years, the remnants of much of the "religious right" get fed up with the left's "societal engineering".  This leads to the following -

• Nationalistic denominationalism - The Christians return to the forefront with a vengeance as the Glenn Beck rally/Palin crowd embrace "Americana" nationalism and go after the infidels. 
• The "founder's intent"/"What this country was founded on" ends up fueling a nationalistic religious fervor that seeks to incarcerate and make war anyone who doesn't see their light.

But the rub lies in the fact that the left and the right are destined to destroy one another and lead to a new left/right party.


Culture

• Worldly obsession with 'otherworldly' entities picks up steam but does not reach critical mass. Such items will include:
• Aliens/Project Bluebeam
• Angel/Demon gates
• In reaction to rampant criminality, virtues become fashionable/marketable again.
• Crime increases - The desperate lower class sees the upper class as the reason for their suffering. Except the middle class will be their target, not the bankers.

Healthcare
As Obamacare takes hold, in order to make the "system" solvent, the Government moves to do the following:

• The licensing and eventual banning of vitamins and nutritional supplements. (Competition is a sin)
• Healthcare shortages are realized as workers retire early en-masse in order to avoid being part of the system. Doctors especially become more scarce as new recruits refuse to enter the field.
• A black market for health care becomes viable.

I've also decided to link to Vox and Karl's 2011 predictions for the reader's benefit. While they share many similarities, I can assure the reader that I have been writing these for at least 3 months now. (As the blog articles will attest.)

(Note: In my haste to get some of these out by the first of January, I might have left off some links or inadequately explained some of the  predictions. I reserve the right to edit some of the information until January 7th, 2011)

The Giants Make a Move - China, Russia Stop Using the Dollar

Certainly this has been on the table for some time, but it is quite interesting that it is being announced on the heels of the conflict in Korea -http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm

St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.

The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.

Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China's Tianwan nuclear power plant, the most advanced nuclear power complex in China.

The Real Effect
This is what happens when you act like an imperialist nation. Your partners decide to "opt out" of dealing with your nonsense and take matters into their own hands. Of course, this is a perfectly legitimate move, it's just going to anger Washington who views itself as the hub of the world.

I would expect protests from the west in the vein of "unfair trade practices" or even accusation of currency destruction being practiced by these two. Such are the delusions you develop when you idolize your own idiocy. It's likely, if not probable that Washington will see the need to "adjust" their attitude in some fashion, but the girl beater rarely thinks ahead when his woman gets herself a better, stronger man.

Korean War Analysis

The entire situation reminds me of the 888 war (Aug. 8, 2008) in which Georgia, with the backing of US Special Forces launched an attack on Russian forces in South Ossetia. At the time, the news agencies decided to start reporting slightly after the start and claim that it was Russia that was attacking Georgia while ignoring the earlier attacks.

In that particular war, if one ignored certain facts or was naively unaware of them, a certain narrative started to emerge that fingered the Russians as aggressive expansionists persecuting the poor Georgians. This scenario was later rebuffed as nonfactual as it came out that Georgia was in fact the aggressor in that conflict.

In this particular situation, several questions/observations immediately come to mind.

1. Who fired first?
1. According to South Korea, they fired by North Korea first, but not at them.
2. If we assume North Korea fired first and was launching a new war, why target civilians?
1. Let's just assume that the North Koreans are eeevil commie scum for a second - Why waste time, munitions and most importantly public relations blowing up strategic non-starters? Why not target military targets?
2. Is it possible that the South staged part of this incident to justify a response?
3. Why would the North announce they are continuing their "nuclear program" and then attack the next day? (A program they got from the US.)
4. The fact that South Korea just so happened to be running drills on invading the North in the area (close to the N.Korean border) at question at that time. Something that was well within their rights but within suspicion.
1. They started Monday and were scheduled to last until Nov 30th.

South Korea holds military exercises like Tuesday's off the west coast about every three months, and they typically provoke an angry response from North Korea, but Tuesday's confrontation was far from typical.

The Real Effect
Given all of this, how do I anticipate this will play out? Let's look at each player in the conflict.

South Korea
The ball is in their court now and the world awaits their next move. I'm unsure of how the Korean people will perceive this issue as it all depends on how many facts they can get their hands on.
I'm pretty certain that they will want blood. In addition, it seems that they are tired of being perceived as being "weak" on the security threat that is North Korea.

Add in the Cheonan sinking (Which is a short distance away and incredibly suspicious) and you have a very volatile mix. I believe the pressure from the people will be to retaliate in some sort of limited fashion. Perhaps on their "offensive" assets, like their missile bases. Yet that risks all out conflict with the North. This is not wise.

North Korea
With Kim Jung-Il is handing controls over to Kim Jung-Un, this could be concluded by enemies to be an act by him to solidify military control of this country. (Looks like someone got to that point already.) If this is true, Un risks losing control if he backs down which makes the North particularly dangerous.

After being rebuffed continually in attempts to form an alliance with the south, they just might see the writing on the wall and are moving into a total war footing. Further, with recent US/South Korean exercises in the area including the USS George Washington specifically the yellow sea and possible reports of US tactical nuclear weapons are moving into the theater, they may see things as becoming desperate. But they are tied at the hip with China.

China
I'm pretty certain that the reported Chinese missile that was fired from a Jin class submarine off the West coast recently is loosely related to this situation.They seem fairly reserved at this point and perhaps the most level headed - "The situation needs to be verified,", but they are playing the sides of this war and it is not in their interest to get involved, yet.

US
Needing a war to divert attention, this provides a much needed diversion from foreclosure gate and the ailing economy. In addition, with the TSA situation threatening the Federal power grab, something needs to happen to push things back into their control. With Thanksgiving just around the corner, Americans preoccupied with preparation and 28,000 troops stationed there, this might be a nice situation to bail out the Empire. Plus, wasn't Obama just there?

Europe
Ireland is bankrupt, Portugal is right behind them, Spain, and the UK. A war would be a nice diversion.


Russia
This is geographically close to them, I highly doubt they are pleased about having this sort of conflict in their back yard and want to see the situation diffused.

Israel
Reports of the North Koreans supplying the Iranians with nukes could spur the Israeli to push for the US to deal decisively with this situation.


Predictions

• The dollar will rise further. Perhaps this is the overall plan?
• Oil prices will increase. Not tremendously at first, but if this escalates $3 gas will be cheap in comparison.
• Domestic terrorism. If the US gets involved with the situation, I expect some sort of terror attack to target transportation methods that will allow the TSA to reassert itself, aggressively.

Overall, I don't see this as being "THE" event, rather one of the important stage setting events that pushes the players onto the stage in order to guarantee that they act their part. This is not normal, this is "security theater" on a grand scale.

Red Alert - Major Cracks In the US Economy

Foreclosure-gate is a mess, but the fallout is going to be far more catastrophic -

as Tracy Alloway says, mortgage-bond documentation generally says that if more than a minuscule proportion of notes in a mortgage pool weren’t properly transferred, then the trustee for the bondholders can force the investment bank who put the deal together to repurchase the mortgages. And it’s looking very much as though none of the notes were properly transferred.

"None of the notes were properly transferred"? Uh oh. That's trouble but what's even more troubling is the sentence right before it - "if more than a minuscule proportion of notes in a mortgage pool weren’t properly transferred, then the trustee for the bondholders can force the investment bank who put the deal together to repurchase the mortgages."

Get that? The trustees for the bondholders can take that "toxic derivatives" and shove it right back down the banks throat. Gee, I wonder how that bodes for the big banks, what being forced to buy back TRILLIONS of their own crappy financial instruments? (At least it looks like they're getting ready for it.)

How much? I'm glad you asked! -

More importantly, a separate study by SNL Financial has determined that the total amount of residential (not commercial) mortgages in foreclosure between directly serviced, and those serviced for others, for the big three banks alone (JPM, WFC, BAC) is nearly a quarter of a trillion dollars!

Following the triple rule of government, I'm willing to bet that this particular issue will cost closer to 3/4 of a trillion at least. But wait I'll throw in more, for..well...free!

The hole could end up being as large as a trillion if one throws in the CMBS properties that are delinquent and in foreclosure ($61 billion in August per RealPoint).

The Real Effect
As I hate saying, well I do somewhat enjoy saying it - I hate it when I'm right, again and again. But enough posturing, you pay me to make predictions! For the moment let's look at what is coming next and you would do well to listen this time.

• This problem is only starting to be uncovered - it will get MUCH WORSE. When it does we will get the following -
• Fannie and Freddie which are backed by the taxpayers and will start hemorrhaging money. (If you can't foreclose, and squatters aren't paying on their mortgage debts, these two companies start losing more money.) Did I mention they're taxpayer backed? Guess who pays for their "losses"? That's right, YOU.
• When the MBS (Mortgage Backed Securities) referenced in the article go belly up, the investors in the MBS sue the pants off companies - JP Morgan, Citibank, etc because they sold the investors a LEMON. Just who are these investors? This splits into several probable issues: 
• A) Public pensions (Cops, firefighters) vaporize - Cops go on strike, crime goes up. Think France.
• B) Private pensions vaporize - Your grandmother goes broke. She riots with half the city! 
• C) The aforementioned companies go broke. After all, they're being sued into the ground. 

Poof, your retirement is gone! Well, isn't it fortunate that the Democrats are here to save your pension! After all it's not fair that your neighbor's money didn't get vaporized but yours did. He should pay his fair share!

Now, what's a new Republican Congress to do? The whole system is collapsing and don't you know that those dirty, dirty Democrats did it with all their Marxist thinking. (Never mind the fact the Republicans have been along for the ride.) Well, they just have to bail out the financial sector, again because this is the worst crisis evarrrrr! I'm sure Glenn Beck, Malkin and all the RINOs will go along for the ride.

At this point they will have no choice but to nationalize everything - police, firefighters, towns, people...you all belong to the Federal Government.

But wait, won't all this downward pressure put a crushing burden on the dollar? Great, now all we need is a bad bond auction to shake the confidence of the Treasury holders. At this point we will have two choices -

1. Sell the military to the highest bidder
2. Attack a country (preferably the one holding the bonds) to get it's people back to work.

Do you speak Mandarin? A shame, your new bosses will!

Iran Escalating, Tick Tock

Building on the news from last week, we get a peek at the Iran War Law -

US President Barack Obama signed into law last Thursday Congressional legislation against Iran that has the potential to heighten tensions, not only with Tehran, but America’s European and Asia rivals.

The Comprehensive Iran Sanctions, Accountability, and Divestment Act requires the US Treasury Department to bar access to the American financial system to any foreign bank conducting transactions with Iranian entities blacklisted by the UN or the US government. The list includes some major Iranian banks, the Iranian energy sector, and businesses associated with the Islamic Revolutionary Guard Corps (IRGC).

The legislation provocatively targets foreign companies selling refined petroleum products, such as gasoline and diesel, to Iran, including producers, insurers and those involved in transportation. While Iran has huge reserves of oil, its energy infrastructure and refining capacity are badly rundown due to a lack of investment, forcing the importation of gasoline.

Calling our bluff, Russia sees our bet and raises the pot by 20k -

In one of the biggest show of military might since the collapse of USSR, Russia mobilised 20,000 troops and state-of-the-art weapons in a drill, with President Dmitry Medvedev on Sunday asserting that his country is a “great” naval power capable of defending its interests.

The Real Effect
This reminds me of the freakout regarding Iran giving Syria radar. Oh no! The Syrians have radar think of all the planes they could see!!! Won't someone think of the children!?! Let's review shall we?

April 25, 2006 -

With China backing up Russia and both countries in bed with Iran, please explain to me how taking on the Persian empire is a wise move?

For the record, I do believe that Russia and China are very real and deadly military threats and that the last 17 years of diplomacy are nothing more than an attempt to lure the American people an(d) military into a compromised position in order that they may easily secure dominance.

With Obama refusing to part ways with Israel, yet orchestrating a supposed "rift" between the two countries, Israel moving to seize Lebanon (Perhaps to seize the timing on this death?) and slapping Turkey, the US army perhaps moving to block the Chinese and Russia, Hillary talking tough with Russia and other various items, things just continue to ratchet up. Will Israel give Iran any sort of ultimatum like Saddam got, or will they just launch operations?

Bilderberg Breaker Estulin: US Builds 13 Secret Bases for War with Russia

Iran...Pull the Trigger Already

Let us consider the developments over the last few weeks in the forthcoming Iranian/Syrian war:

* August 15, 2007 -
The United States has decided to designate Iran's Revolutionary Guard Corps, the country's 125,000-strong military branch, as a "specially designated global terrorist," according to U.S. officials, a move that allows Washington to target the group's business operations and finances.

* August 30, 2007 - NY Times -
A B-52 bomber took off from Minot Air Force base in North Dakota with six nuclear warheads. They were supposed to be detached from cruise missiles before the flight.

Larry Johnson raises the possibility that the nukes were headed to the Mideast via Barksdale Air Force Base.

*September 4, 2007 - Infowars reports -

Dick Cheney has ordered top Neo-Con media outlets, including Fox News and the Wall Street Journal, to unleash a PR blitz to sell a war with Iran from today, according to Barnett Rubin, the highly respected Afghanistan expert at New York University.

* Septemer 6, 2007 -According to the UK Independent, Israel has found nuke sites in Syria

Israel believes that North Korea has been supplying Syria and Iran with nuclear materials, a Washington defense official told the New York Times. “The Israelis think North Korea is selling to Iran and Syria what little they have left,” he said.

In addition -

Israeli jets "bombed a Syrian-Iranian missile base in northern Syria that was financed by Iran... It appears that the base was completely destroyed."

* September 7, 2007 - Fox News - Iran fined

Iran must pay $2.65 billion to the families of the 241 U.S. service members killed in the 1983 bombing of the U.S. Marine barracks in Beirut, a federal judge declared Friday.

* September 9, 2007 -
U.S. General David Pratreus testifies to Congress of a "proxy war" in Iraq against Iran. He strongly implied that it would soon be necessary to obtain authorisation to take action against Iran within its own borders, rather than just inside Iraq.

* September 10, 2007 - According to the Wall Street Journal -

The Pentagon is preparing to build a military base near the Iraq-Iran border to try to curtail the flow of advanced Iranian weaponry to Shiite militants across Iraq

Quoting Maj. Gen. Rick Lynch, the commander of the Army's 3rd Infantry Division, the Journal said the Pentagon also plans to build fortified checkpoints on major highways leading from the Iranian border to Baghdad, and install X-ray machines and explosives-detecting sensors at the only formal border crossing between the two countries.

"We've got a major problem with Iranian munitions streaming into Iraq. This Iranian interference is troubling and we have to stop it."

*September 12, 2007 - Again, the UK Independent, we are sending British troops to the Iraqi/Irani border -

The UK operation, in which up to 350 troops are involved, has come at the request of the Americans, who say that elements close to the Iranian regime have stepped up supplies of weapons to Shia militias in recent weeks in preparation for attacks inside Iraq.

The mission will include the King's Royal Hussars battle group, 250 of whom were told at the weekend that they would be returning to the UK as part of a drawdown of forces in Iraq.

The Iranians have threatened military action in response to attacks launched from Iraqi territory while the Pentagon has announced the building of a US base and fortified checkpoints at the frontier.

Fox News -

Political and military officers, as well as weapons of mass destruction specialists at the State Department, are now advising Secretary of State Condoleezza Rice that the diplomatic approach favored by (Under Secretary of State for Political Affairs Nicholas) Burns has failed and the administration must actively prepare for military intervention of some kind.
Consequently, according to a well-placed Bush administration source, "everyone in town" is now participating in a broad discussion about the costs and benefits of military action against Iran, with the likely timeframe for any such course of action being over the next eight to 10 months, after the presidential primaries have probably been decided, but well before the November 2008 elections.

The Real Effect
Could we be going into Iran? Nah... Fox News and the Wall Street Journal are pushing a war? Nah...

I believe that it is likely that the U.S. is asking the U.K. to get closer to the action so they'll get shot at, stay in Iraq and help with Iran.

I am close to amazed that it is taking as long as it is for the U.S. to go after Iran. I started researching the topic in early 1997, predicted an attack on Iran by 2005 in 1999 and for the last 2 years have been listening to the shrill cries of how we should invade, but it has not seemed that we have had the political guts to back up our rhetoric.

I have said and will say again that this is escalation warfare designed to destroy the American will and ultimately the United States itself. With the logical progression being: Afghanistan -> Iraq -> Iran/Syria -> North Korea -> China/Russia(Japan?)

From the Cutting Floor - Russia & China UN-Hip

Originally slated for release on - May 2, 2006

As predicted, Russia and China are putting up a front in the United Nations. This should demonstrate to anyone who is casually paying attention that the U.N.Publish is a worthless, corrupt organization that should not even be in the equation. But, we can't have much of a world empire without a governing power, can we?

As predicted, oil is making moves to the $75 range again.

Mideast Notes - The Real Effect On Target

I just wanted to get some quick points down for the record. Here is my take on the situation in the Mideast as it currently stands.

The Real Effect
We all know by know that the basic formula for world events is "problem + reaction = solution". In other words, create a problem, that causes a reaction and then you are free to offer a solution. Using this formula, let us think backwards.

We know that the endgame solution is to create a one-world government with a universal world leader. So the question becomes how to create a situation bad enough to warrant a world dictatorship? This is where the Mideast comes in.

I see the situation as going a little something like this:

• Israel continues to assert their right to "defend themselves". Something that they have been virtually unwilling to do for the last twenty years.
• This leads to more and more involvement with neighboring nations such as Syria, Iran and to a lesser extent China, Russia, Venezuela and North Korea.
• Hezbollah continues to schalack Israeli cities. (Tel Aviv told to be on rocket alert)
• Other countries begin to remove their people and send in peacekeepers/forces to assist which inevitably become targets. (U.S. Evacuation Teams Arrive in Lebanon)
• Fixed intelligence links the aforementioned nations of Iran, Syria and then Russia and company justifying war. (Bush Suspicious of Iranians) 

As I predicted -

"As Iraq-weariness begins to set in, Bush shifts strategy to going after Iran and/or Syria as another 'theater' in the global struggle on terror."

As I predicted six months ago, the situation devolves into open war in order to stabilize the world. (Us vs. Them mentality)

"But in order to truly bring in the "New World Order" a sacrifice of a greater scale is going to be needed. I believe that we have yet to see the global war that will create the supposed level of sacrifice needed to attain this and that a much larger one will be required. However, there is definitely a time table for this and it is running short."

 As I predicted, oil continues to climb to $4 a gallon (Crude climbs back near record high $78)

"Look for the trend that has been established over the last few years to continue. Gas starts to head upwards as it looks for equalization with overseas markets. Overseas, the price starts heading up to with $6 a gallon in the U.K. and much of Europe and close to if not just over $4 a gallon here in the U.S."

As I predicted, during this the U.N. is helpless and only exasperates the problem, leading to the call to a more efficient system. Thus the call for the world leader starts.

"I believe that if we get the awaited 'Phoenix Transformation' we will catch at least a high profile glimpse of new and an upcoming world leader who will stun the world with his seeming courage, morality and amazing solutions to the world's problems, specifically the issue of what to do with the Israeli/Palestinian conflict."

This also extends the Bush doctrine of "If you're not with us, you're with the terrorists.", except this will be converted into a worldwide call against organized religion and eventually be specifically targeted against Judaism and Christendom.

That's it for now. If I get some time later, I'll post some more.