Jim Rogers: Avoid The Dollar At All Costs

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June 30 (Bloomberg) — Jim Rogers, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, said investors should steer clear of the dollar as the U.S. economy slows and favor commodities this year.

The dollar has slipped 7.7 percent against the euro and 5.9 percent versus the yen in 2008 as the Federal Reserve cut interest rates to stave off a U.S. recession. Oil prices have doubled in the past 12 months, while gold is up 44 percent.

Avoid the dollar “at all costs,” Rogers, chairman of Rogers Holdings, said in a speech in Shanghai today. “The best investments in 2008 are commodities and natural resources. Agricultural prices have much higher to go over the next decade. We have a shortage of everything, including seeds.”

Oil and metal prices in New York have surged as a slumping U.S. currency made them cheaper for non-dollar investors to buy as a hedge against inflation in a slowing global economy. The dollar has stabilized in recent weeks, with currency volatility falling by the most since 1999 this quarter.

The comments from Rogers, 65, come two days after he told investors at a conference in Nanjing not to “give up” on Chinese shares, which have made China the world’s second worst performers this year. Rogers, who first started buying Chinese stocks in 1999, said he hadn’t sold any of his holdings.

Commodity Bull

Read moreJim Rogers: Avoid The Dollar At All Costs

Bush Fulfills His Grandfather’s Dream

It’s remarkably common for a grandson to take up his grandfather’s major project. This occurred to me when I read recently of Thor Heyerdahl’s grandson taking up his mission to cross the Pacific on a raft.

But what really struck me was the BBC story aired on July 23rd, 2007, documenting President George W. Bush’s grandfather’s involvement in a 1933 plot to overthrow the U.S. government and install a fascist dictatorship.

I knew the story, but had not considered the possibility that the grandson was trying to accomplish what his grandfather had failed to achieve.

Prescott Sheldon Bush (1895 to 1972) attended Yale University and joined the secret society known as Skull and Bones. Prescott is widely reported to have stolen the skull of Native American leader Geronimo. As far as I know, this has not actually been confirmed. In fact, Prescott seems to have had a habit of making things up. He sent letters home from World War I claiming he’d received medals for heroism. After the letters were printed in newspapers, he had to retract his claims.

If this does not yet sound like the life of a George W. Bush ancestor, try this on for size: Prescott Bush’s early business efforts tended to fail. He married the daughter of a very rich man named George Herbert Walker (the guy with the compound at Kennebunkport, Maine, that now belongs to the Bush family, and the origin of Dubya’s middle initial). Walker installed Prescott Bush as an executive in Thyssen and Flick. From then on, Prescott’s business dealings went better, and he entered politics.

Now, the name Thyssen comes from a German named Fritz Thyssen, major financial backer of the rise of Adolph Hitler. Thyssen was referred to in the New York Herald-Tribune as “Hitler’s Angel.” During the 1930s and early 1940s, and even as late as 1951, Prescott Bush was involved in business dealings with Thyssen, and was inevitably aware of both Thyssen’s political activities and the fact that the companies involved were financially benefiting the nation of Germany. In addition, the companies Prescott Bush profited from included one engaged in mining operations in Poland using slave labor from Auschwitz. Two former slave laborers have sued the U.S. government and the heirs of Prescott Bush for $40 billion.

Until the United States entered World War II it was legal for Americans to do business with Germany, but in late 1942 Prescott Bush’s businesses interests were seized under the Trading with the Enemy Act. Among those businesses involved was the Hamburg America Lines, for which Prescott Bush served as a manager. A Congressional committee, in a report called the McCormack-Dickstein Report, found that Hamburg America Lines had offered free passage to Germany for journalists willing to write favorably about the Nazis, and had brought Nazi sympathizers to America. (Is this starting to remind anyone of our current president’s relationship to the freedom of the press?)

The McCormack-Dickstein Committee was established to investigate a homegrown American fascist plot hatched in 1933. Here’s how the BBC promoted its recent story:

“Document uncovers details of a planned coup in the USA in 1933 by right-wing American businessmen. The coup was aimed at toppling President Franklin D Roosevelt with the help of half-a-million war veterans. The plotters, who were alleged to involve some of the most famous families in America, (owners of Heinz, Birds Eye, Goodtea, Maxwell Hse & George Bush´s Grandfather, Prescott) believed that their country should adopt the policies of Hitler and Mussolini to beat the great depression. Mike Thomson investigates why so little is known about this biggest ever peacetime threat to American democracy.”

Read moreBush Fulfills His Grandfather’s Dream

Iran ready to strike at Israel’s nuclear heart

Iran has moved ballistic missiles into launch positions, with Israel’s Dimona nuclear plant among the possible targets, defence sources said last week.

The movement of Shahab-3B missiles, which have an estimated range of more than 1,250 miles, followed a large-scale exercise earlier this month in which the Israeli air force flew en masse over the Mediterranean in an apparent rehearsal for a threatened attack on Iran’s nuclear installations. Israel believes Iran’s nuclear programme is aimed at acquiring nuclear weapons.

The sources said Iran was preparing to retaliate for any onslaught by firing missiles at Dimona, where Israel’s own nuclear weapons are believed to be made.

Major-General Mohammad Jafari, the commander of the Revolutionary Guard, told a Tehran daily: “This country [Israel] is completely within the range of the Islamic Republic’s missiles. Our missile power and capability are such that the Zionist regime – despite all its abilities – cannot confront it.”

Read moreIran ready to strike at Israel’s nuclear heart

U.S. escalating covert operations against Iran: report

WASHINGTON (Reuters) – U.S. congressional leaders agreed late last year to President George W. Bush’s funding request for a major escalation of covert operations against Iran aimed at destabilizing its leadership, according to a report in The New Yorker magazine published online on Sunday.

The article by reporter Seymour Hersh, from the magazine’s July 7 and 14 issue, centers on a highly classified Presidential Finding signed by Bush which by U.S. law must be made known to Democratic and Republican House and Senate leaders and ranking members of the intelligence committees.

“The Finding was focused on undermining Iran’s nuclear ambitions and trying to undermine the government through regime change,” the article cited a person familiar with its contents as saying, and involved “working with opposition groups and passing money.”

Hersh has written previously about possible administration plans to go to war to stop Tehran from obtaining nuclear weapons, including an April 2006 article in the New Yorker that suggested regime change in Iran, whether by diplomatic or military means, was Bush’s ultimate goal.

Funding for the covert escalation, for which Bush requested up to $400 million, was approved by congressional leaders, according to the article, citing current and former military, intelligence and congressional sources.

Clandestine operations against Iran are not new. U.S. Special Operations Forces have been conducting crossborder operations from southern Iraq since last year, the article said.

These have included seizing members of Al Quds, the commando arm of the Iranian Revolutionary Guard, and taking them to Iraq for interrogation, and the pursuit of “high-value targets” in Bush’s war on terrorism, who may be captured or killed, according to the article.

Read moreU.S. escalating covert operations against Iran: report

Top US commander briefed on IDF’s four-front strategy in potential Iran war context

Top US commander Adm. Michael Mullen sees for himself
Top US commander Adm. Michael Mullen sees for himself

The visiting Chairman of the US Chiefs of Staff, Adm. Michael Mullen, carried out a guided tour of Israel’s borders with Syria, Lebanon and the Gaza Strip over the weekend. It was led by the IDF chief of staff Lt. Gen. Gabi Ashkenazi and OCs Northern and Southern Commands, Maj. Gens. Eisenkott and Galant.

He was briefed on IDF tactics in a war on all these potential flashpoints in the context of a comprehensive conflict with Iran and then held long conversations with defense minister Ehud Barak and Ashkenazi.

DEBKAfile‘s military sources report that it is very unusual for the top American commander to carry out a close, on-the-spot study of Israel’s potential war fronts. It was prompted on the one hand by skepticism in parts of the US high command of Israel’s ability to simultaneously strike Iran’s nuclear installations and fight off attacks from three borders while, at the same time, Adm. Mullen showed he was open to persuasion that the IDF’s prospective tactics and war plans were workable.

Military circles in Washington, commenting on the large-scale air maneuver Israel carried out with Greece earlier in June, have opined that 100 warplanes are not enough for the Israel Air Force to destroy all of Iran’s secret nuclear sites; more than 1,000 would be needed. Israel military tacticians in contact with US commanders have countered that, while Iran’s secret nuclear locations are scattered and buried deep, still, every chain has weak links and is therefore vulnerable.

The tough threats issued by Iranian Revolutionary Guards commander Mohamed Ali Jafari on Saturday, June 28, were prompted by the Adm. Mullen’s Israeli border tour, word of which was flashed to Tehran by Syrian-Iranian observation posts inside Syrian and Lebanese borders.

(The Sunday Times added that Iran moved its ballistic Shihab-3 missiles into launch positions, with Israel’s Dimona nuclear plant among its possible targets.)

Saturday, DEBKAfile reported:

The IRGC chief, Mohammad Ali Jafari issued Tehran’s toughest and most explicit threats yet in response to recent reports of Israeli preparations to strike Iran’s nuclear installations.

Hinting at an American attack, he said: “If there is a confrontation between us and the enemy from outside the region , definitely the scope will reach the oil issue.”

After this action (of imposing controls on the Gulf waterway), the oil price will rise very considerably,” he said.

Read moreTop US commander briefed on IDF’s four-front strategy in potential Iran war context

The Dow-Crash, The Dollar, Gold, and WAR!

The June 2008 Dow Crash
and the coming first strike attack on Iran
herald the end of dollar hegemony.

BREAK-DOW!

They say that pictures speak a thousand words, so let’s start this with a picture:

Today, the Dow crashed through its eight-year support level at 11,750. There isn’t much below now to keep it from dropping all the way back down to the 7,500-range. What that will do to American investor psychology and worse, consumer confidence, and therefore spending, and therefore the economy, is only too apparent.

The gold-attack on Monday obviously didn’t take. Gold recovered the following day and powered up by $26 the very next day to close in NY at $911. On Friday, gold confirmed its breakout, which means there will be little holding it back – just like there is now very little that’s holding the Dow up.

Unsurprisingly, the US war machinery is in full swing at this time. Troop and military asset movements into the Iranian theater are nearly complete, the Israelis have flown their practice-attack of 100-plus fighter jets over the Mediterranean, and Congress has again prostrated itself before its banking-guild rulers who want total government (and therefore banking) of all economic activity.

Congress did this by passing the FISA Amendments Act of 2008 to give retroactive immunity to telcoms spying for the government, and by proposing a resolution (the already infamous H. Con. Res. 362) by which Congress demands that Bush completely blockade Iran in order to force it to stop enriching uranium. This, naturally, is a perfect setup for unleashing the long-planned bombing campaign on Iran. Congressmen know that Iran will not accede to these international demands.

End result: We will probably get another war because of all this, just like we got one back in 2002-03 when the Dow plunged into the chasm this recently broken support level has bridged for these past eight years (see chart above).

The problem is that this time, it is a bipartisan gang of US war mongers in our Congress who all appear hell-bent on forcing Bush to attack Iran with a preemptive strike, possibly even an unprovoked nuclear first strike – something that human history so far has not had to deal with.

It is also something that will cause the US to forfeit any legitimate claims of world leadership for the remainder of that history.

The War Currency

Wars are rarely fought over national security issues, as political leaders often claim. At rock bottom, they are mostly fought over economic issues.

Iraq and Iran (if Congress and the administration get their way) are the only two countries the US has ever attacked preemptively. They are also the only two oil-producing countries that ever went off the petrodollar. The alleged nuclear ambitions of a terrorist-sponsoring country cannot be the real reason for the planned attack – because terrorist-sponsor North Korea was not only allowed to develop nuclear weapons unmolested, it was even allowed to test-launch a potentially nuclear-tipped ICBM at the US without any military repercussions whatsoever.

There goes the “national security” rationalization for this planned attack.

This fact exposes the attacks for what they really are. tools of US monetary policy. The dollar has no real value internationally, save for the fact that the now militarily enforced necessity for countries to buy dollars in order to buy oil creates artificial demand.

The euro’s existence threatens all of this, now. Oil countries have a dollar-alternative in the euro, and so does the rest of the world. The euro is designed to not be quite as inflationary as the dollar is and has been. This is done by virtue of the ECB’s exclusive mandate of “price stability”, another word for inflation fighting.

Yet Another War Currency

Read moreThe Dow-Crash, The Dollar, Gold, and WAR!

FDA Issues Health Warning Over Amalgam

Related article:

Mercury Fillings Shattered! FDA, ADA Conspiracy to Poison Children with Toxic Mercury Fillings Exposed in Groundbreaking Lawsuit:

“The FDA has, for decades, ridiculously insisted that mercury fillings pose no health threat whatsoever to children. While dismissing hundreds of studies showing a clear link between mercury amalgam fillings (“silver fillings”) and disastrous neurological effects in the human body, the FDA denied the truth about mercury and effectively protected the mercury filling racket that has brought so much harm to so many people.

For over a hundred years, a cabal of “mercury mongers” made up of the American Dental Association, mercury filling manufacturers and indignant dentists have reaped windfall profits by implanting toxic fillings into the mouths of children, all while insisting that mercury – one of the most toxic heavy metals known to modern science – posed no health threat whatsoever.”


US issues health warning over mercury fillings (Independent, June 29, 2008):

Some 500 dentists in Britain have set up mercury-free practices

They’re in millions of mouths worldwide, but have been linked to heart disease and Alzheimer’s. Now a report concedes they may have a toxic effect on the body

Amalgam dental fillings – which contain the highly toxic metal mercury – pose a health risk, the world’s top medical regulatory agency has conceded.

After years of insisting the fillings are safe, the US government’s Food and Drug Administration (FDA) has issued a health warning about them. It represents a landmark victory for campaigners, who say the fillings are responsible for a range of ailments, including heart conditions and Alzheimer’s disease.

Earlier this month, in an unprecedented U-turn, the FDA dropped much of its reassuring language on the fillings from its website, substituting: “Dental amalgams contain mercury, which may have neurotoxic effects on the nervous systems of developing children and foetuses.” It adds that when amalgam fillings are “placed in teeth or removed they release mercury vapour”, and that the same thing happens when chewing.

The FDA is now reviewing its rules and may end up restricting or banning the use of the metal.

Read moreFDA Issues Health Warning Over Amalgam

The Price Of Food: 2007 – 2008

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Floods wipe out US crops
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Time to Stockpile Food?
Food Riots are Coming to the U.S.
UN alert: One-fourth of world’s wheat at risk from new fungus
THE FOUR HORSEMEN APPROACH – FAMINE IS IN THE AIR

The meat prices will very soon go through the roof too, because the livestock is fed with corn, soybeans and hay. And the prices will continue to rise because of accelerating inflation, the missing bees, flooding and more natural disasters coming. – The Infinite Unknown
__________________________________________________________________________________________

Source: Cattle Network

May

May

Percent

Meat & Dairy

Unit

2007

2008

Change

Ground Chuck Lb 2.766 2.798 1.16%
Ground Beef Lb 2.307 2.313 0.26%
Steak Round, Choice Lb 4.134 4.178 1.06%
Bacon, Sliced Lb 3.651 3.637 -0.38%
Pork Chops Lb 3.194 3.268 2.32%
Chicken Breast Lb 2.312 2.392 3.46%
Turkey, Frozen Lb 1.146 1.258 9.77%
Eggs, Grade A Doz 1.504 1.930 28.32%
Milk, Fresh Gal 3.259 3.760 15.37%
Cheddar Cheese Lb 3.976 4.397 10.59%
Source: ERS/USDA – Retail Prices

Field Crops

Unit

2007

2008

Change

Barley Bu $3.12 $4.76 52.56%
Beans, Dry Edible Cwt $3.08 $5.06 64.29%
Corn Bu $3.49 $5.12 46.70%
Cotton Lb $0.44 $0.61 37.95%
Flaxseed Bu $7.08 $16.60 134.46%
Hay Ton $138.00 $166.00 20.29%
Lentils Cwt $13.20 $32.70 147.73%
Oats Bu $2.49 $3.46 38.96%
Peanuts Lb $0.18 $0.20 12.29%
Peas, Dry Edible Cwt $10.10 $16.40 62.38%
Potatoes Cwt $7.95 $9.21 15.85%
Rice, Rough Cwt $10.00 $15.00 50.00%
Sorghum Cwt $6.49 $9.18 41.45%
Soybeans Bu $7.12 $12.30 72.75%
Sunflower Cwt $16.60 $27.40 65.06%
Wheat Bu $4.88 $8.80 80.33%
Source: USDA/NASS – Ag Prices Received

May

May

Percent

Fruits

Unit

2007

2008

Change

Apples Lb $0.27 $0.34 26.02%
Grapefruit Box $4.49 $5.12 14.03%
Lemons Box $8.14 $20.77 155.16%
Oranges Box $11.12 $6.95 -37.50%
Peaches Ton $820.00 $948.00 15.61%
Pears Ton $651.00 $525.00 -19.35%
Strawberries Cwt $68.60 $66.70 -2.77%
Tangerines Box $17.01 $5.98 -64.84%
Source: USDA/NASS – Ag Prices Received

May

May

Percent

Vegetables

Unit

2007

2008

Change

Asparagus Cwt $91.90 $99.80 8.60%
Broccoli Cwt $26.70 $27.30 2.25%
Carrots Cwt $32.00 $25.50 -20.31%
Cauliflower Cwt $24.90 $37.40 50.20%
Celery Cwt $18.30 $37.70 106.01%
Cucumbers Cwt $28.50 $17.50 -38.60%
Lettuce Cwt $13.60 $16.80 23.53%
Onions Cwt $24.20 $31.70 30.99%
Snap Beans Cwt $38.80 $39.60 2.06%
Sweet Corn Cwt $21.40 $23.10 7.94%
Tomatoes Cwt $35.60 $40.40 13.48%
Source: USDA/NASS – Ag Prices Received
Prepared By: Rob Cook, rob@cattlenetwork.com

AT&T Whistleblower: Spy Bill Creates Infrastructure for a Police State

(What a courageous man! – The Infinite Unknown)

Mark Klein, the retired AT&T engineer who stepped forward with the technical documents at the heart of the anti-wiretapping case against AT&T, is furious at the Senate’s vote on Wednesday night to hold a vote on a bill intended to put an end to that lawsuit and more than 30 others.

[Wednesday]’s vote by Congress effectively gives retroactive immunity to the telecom companies and endorses an all-powerful president. It’s a Congressional coup against the Constitution.

The Democratic leadership is touting the deal as a “compromise,” but in fact they have endorsed the infamous Nuremberg defense: “Just following orders.” The judge can only check their paperwork. This cynical deal is a Democratic exercise in deceit and cowardice.

Klein saw a network monitoring room being built in AT&T’s internet switching center that only NSA-approved techs had access to. He squirreled away documents and then presented them to the press and the Electronic Frontier Foundation after news of the government’s warrantless wiretapping program broke.

Wired.com independently acquired a copy of the documents (.pdf) — which were under court seal — and published the wiring documents in May 2006 so that they could be evaluated.

The lawsuit that resulted from his documents is now waiting on the 9th U.S. Appeals Court to rule on whether it can proceed despite the government saying the whole matter is a state secret. A lower court judge ruled that it could, because the government admitted the program existed and that the courts could handle evidence safely and in secret.

But the appeals court ruling will likely never see the light of day, since the Senate is set to vote on July 8 on the FISA Amendments Act of 2008, which also largely legalizes Bush’s warrantless wiretapping program by expanding how the government can wiretap from inside the United States without getting individualized court orders.

Klein continues:

Congress has made the FISA law a dead letter–such a law is useless if the president can break it with impunity. Thus the Democrats have surreptitiously repudiated the main reform of the post-Watergate era and adopted Nixon’s line: “When the president does it that means that it is not illegal.” This is the judicial logic of a dictatorship.

The surveillance system now approved by Congress provides the physical apparatus for the government to collect and store a huge database on virtually the entire population, available for data mining whenever the government wants to target its political opponents at any given moment-all in the hands of an unrestrained executive power. It is the infrastructure for a police state.

Read moreAT&T Whistleblower: Spy Bill Creates Infrastructure for a Police State

As Bill Evolves, Mortgage Debt Is Snowballing

When Congress started fashioning a sweeping rescue package for struggling homeowners earlier this year, 2.6 million loans were in trouble. But the problem has grown considerably in just six months and is continuing to worsen.

More than three million borrowers are in distress, and analysts are forecasting a couple of million more will fall behind on their payments in the coming year as home prices fall further and the economy weakens.

Those stark numbers not only illustrate the challenges for the lawmakers trying to provide some relief to their constituents but also hint at what the next administration will be facing after the election. While the proposed program would help some homeowners, analysts say it would touch only a small fraction of those in trouble – the Congressional Budget Office estimates it would be used by 400,000 borrowers – and would do little to bolster the housing market.

“It’s not enough, even in the best of circumstances,” said Mark Zandi, chief economist of Moody’s Economy.com. The number of people who will be helped “is going to be overwhelmed by the three million that are headed toward default.”

Read moreAs Bill Evolves, Mortgage Debt Is Snowballing