Saturday, October 26, 2013

Weekly News Wrap-Up 10.25.13

4By Greg Hunter’s
The big story this week is Saudi Arabia and what its officials there are calling a “major shift” in relations with the U.S.  The Saudis are outraged over how the U.S. is handling the Syrian crisis.  The Kingdom is also angry at America’s increasingly cozy relations with Iran.  One official said the U.S. was “blatantly perfidious.”  That’s a nice way of saying the U.S. was untrustworthy and disloyal.  Please keep in mind Saudi Arabia has been a staunch ally in the Arab world, and that looks like we have major trouble coming.  Why, you ask.  Ever heard of the “petro dollar”?  If it were not for Saudi Arabia, that term may have never come into existence.  It was Saudi Arabia that first started using the dollar as the exclusive currency with which to buy its oil.  The rest of the world followed suit, and it’s been that way ever since the early 1970’s.  If Saudi Arabia starts taking payment in other currencies, you can kiss the dollar good bye as the world reserve currency.  Inflation would be a huge problem as countries around the globe would no longer need dollars to purchase oil.  Those dollars would come home in a torrent, and inflation would spike sky high in a hurry.  Many are brushing this off as a little tiff because they say the Saudis need U.S. military equipment and protection, but I am not so sure.  This is bad to be reported publicly in the press this way.  One of my sources says this is “extremely dollar negative.”  Another thing to consider, the Saudis hold hundreds of billions of dollars in Treasury bonds.  What happens if they stop buying and start selling those bonds?  Another source of mine says they have to do this to survive being overthrown.  Whether they are angry, afraid of being overthrown or both, this is very bad for the U.S. dollar.
Another piece of dollar negative news you are not being told about is the NSA spying is causing a rift in Europe so big that the European Union is suspending the U.S. from the global financial databank to avoid spying.  It has been reported the NSA has been spying on the leaders of 35 countries, including Germany.  The NSA even hacked the cell phone of Angela Merkel, the newly re-elected leader of Germany.  The NSA is single-handedly turning allies into enemies!  This, too, is extremely dollar negative. 
I know the failure of Obama Care, and the website is all over the news, but the big problem is the plan itself.  People are being dropped from insurance coverage.  Workers are having their hours cut back to part-time.  Doctors are opting out of Obama Care plans.  People are paying more in 45 states.  Deductibles and co-pays are going up for most people.  On top of it all, it is going to explode U.S. government debt.  This is a disaster, and I told you this was going to be the big issue for 2014.  I predicted Democrats would be running from Obama Care and not running on it.  Hey, it is already happening.  Now, Democrats want to suspend the penalty, or tax, for not signing up.  The genie is already out of the bottle, and that will not save this mess of a plan that is going to tank the U.S. economy.  I guarantee you nobody will be talking about the government shutdown come the 2014 election except Republicans that will say they tried to stop it but were made out to be villains because the math did not add up. 
Finally, the fraud the banks are committing just keeps piling up with zero criminal prosecutions.  Bank of America is the latest to be hit with the fraud label; but, once again, this is a civil prosecution, and nobody will go to jail.  B of A says it is innocent and is contemplating appeal.  The bank says it will “fight on.”  Where’s the outrage?  Well, it’s not coming from the mainstream media.  USA Today this week ran a story that touted JP Morgan CEO Jami Dimon as being “Teflon.”  Of course, the newspaper keeps spraying Teflon on him in the way it covers the huge fines and losses at the bank.  Between the so-called London Whale trade that went sour and the recent mortgage lending settlement, the bank has lost or paid out in fines more than $20 billion.  That is this year alone.  Of course, I am sure the cozy relationship between JP Morgan and the parent company of the newspaper, Gannett, has no bearing on the coverage the paper gives Dimon.  Gannett is business associates with JP Morgan, and JP Morgan is an investor in Gannett.  Hey, USA Today, how about asking which big banks are getting $40 billion each and every month.  You think some of these banks would use that money to pay these fines?  The MSM should be ashamed.  They are nothing more than government shills. 
Join Greg Hunter as he covers these stories and more in the Weekly News Wrap-Up