US To Purchase Oil From Libyan Rebels, Thereby Funding Al Qaeda

There is no Al-Qaeda (only Al-CIAda):

“The truth is, there is no Islamic army or terrorist group called Al Qaeda. And any informed intelligence officer knows this. But there is a propaganda campaign to make the public believe in the presence of an identified entity representing the ‘devil’ only in order to drive the TV watcher to accept a unified international leadership for a war against terrorism. The country behind this propaganda is the US.”
– Robin Cook, Former British Foreign Secretary

Al Qaeda Doesn’t Exist or How The US Created Al Qaeda (Documentary)

See also:

‘CIA Spy’ Raymond Davis Was Giving Nuclear Bomb Material to Al-Qaeda, Says Report

(FOX NEWS) Inside Job: ‘The US Government Escorted The Underwear Bomber Through Security Without A Passport To Board The Plane’, Say Two Attorneys, Eyewitnesses Who Were On Site

How the US let Al-CIAda get its hands on an Iraqi weapons factory

US To Purchase Oil From Libyan Rebels, Thereby Funding “Flickers” Of Al Qaeda

Following recent news that the supremely organized Libyan rebels have established their own central bank and oil company (does anyone recall when rebels merely rebelled instead of immediately setting up an oil export infrastructure and a fiat counterfeiting authority… those were the days), we now learn that this impressively “impromptu” development may have actually been intended all along.From Reuters: “The United States on Monday gave a green light to sales of Libyan crude oil from rebel-held territory, giving a potential boost to forces battling Muammar Gaddafi. A U.S. Treasury Department official said Libyan rebels would not be subject to U.S. sanctions if they avoid entities linked to Gaddafi’s regime, which would allow them to sell oil under their control.” And confirming just hos hypocritical any international embargo attempts are, here is the Un confirming that when it comes to determining international priorities, the only word that matters is the one that did not figure once in Obama’s Libya speech yesterday: “There is no U.N. embargo on Libyan oil,” a U.N. Security Council diplomat told Reuters on condition of anonymity. “The rebels can sell oil. But they can’t do it through the Libyan National Oil Corporation.”” And the kicker: according to the US NATO leader among those profiting from this latest move of US desperation is none other than Al Qaeda.

From Reuters:

The rebels, who retook a number of oil fields and terminals in eastern Libya over the weekend and were advancing west toward Gaddafi’s hometown of Sirte, must first establish clear lines of control and payment systems that do not involve Libya’s National Oil Corp, its central bank nor any other government entity, the official said.

No special permission would be needed from the Security Council’s Libya sanctions committee, which oversees compliance with the sanctions, for the rebels to sell oil, envoys said.

The Treasury on February 25 banned U.S. transactions with Libya’s state oil producer, the central bank and other state entities in an effort to cut off revenues to Gaddafi’s regime, in line with sanctions imposed by the U.N. and European Union.

With the backing of Western air strikes, Libyan rebels have retaken the main oil terminal cities in eastern Libya, including Es Sider, Ras Lanuf, Brega, Zueitina and Tobruk.

A senior Libyan rebel official said on Monday that rebels were in “active discussions” to have sanctions lifted on sales of oil from east Libyan fields.

Ali Tarhouni, who is in charge of the rebels’ economic, financial and oil matters in Benghazi said the fields were capable of pumping 100,000 to 130,000 barrels per day of crude, and most of this would be exported because of low refining capacity in eastern Libya. Before the crisis began, Libya was producing about 1.6 million barrels per day.

“We hope they will be lifted for the liberated areas as quickly as possible,” Tarhouni said of the sanctions. “Not with everybody, but with some countries.”

While we will not comment on the apparent hypocrisy of this latest development by the light crude starved US administration (sorry Saudi Arabia, nobody buys your lies about excess capacity anymore – proof here), what we will comment on is that the next time Gaddafi’s forces retake any and all oil fields currently in rebel hands, and pumping on behalf of the US, they will likely not receive a very friendly treatment. Especially since it now appears that K-Daf was actually spot on when he argued that Al Qaeda is reinforcing the rebels:

There is a good chance NATO pressure will encourage Libyan tyrant Moammar Gadhafi to leave power, the U.S. NATO commander told Congress Tuesday, but the opposition that could come in the Libyan leader’s wake has “flickers” of al Qaeda.

While there is a wide range of possible outcomes in Libya, running from a static stalemate to Gadhafi cracking, there is a “more than reasonable” chance of Gadhafi leaving power, Adm. James Stavridis said before the Senate Armed Services Committee,

But potential “flickers” of al Qaeda and Hezbollah elements have been seen in intelligence regarding the Libyan opposition, which is poised to take power if Gadhafi leaves, Stavridis said. However, he added there is no evidence of a significant presence of al Qaeda or other terrorist groups. Stavridis is also the commander of U.S. European Command.

“The intelligence that I’m receiving at this point makes me feel that the leadership that I’m seeing are responsible men and women who are struggling against Col. Gadhafi,” Stavridis added.

There is probably “a sprinkling of extremists to perhaps include al Qaeda” in Libya among the rebels, “but no one should think the opposition is being led by al Qaeda or one of its affiliates,” the official said. Al Qaeda has had a presence in North Africa for years. It “wouldn’t be surprising if small numbers — a handful”– of extremists or al Qaeda are in Libya.

Thus in one easy step, the administration appears to have lost all its prior animosity toward Al Qaeda (and after all September 11 was so long ago…), and is now bypassing international embargoes to deal directly with them.

What next: we get confirmation that Al Qaeda is also providing crystal meth to Libya’s rebels?

Submitted by Tyler Durden on 03/29/2011 17:22 -0400

Source: ZeroHedge

IMF Prepares For ‘Threat To International Monetary System’

Back in April 2010, before Waddell and Reed sold a few shares of ES, effectively destroying the market on news that Europe was insolvent, we made the following observation: “The IMF has just announced that it is expanding its New Arrangement to Borrow (NAB) multilateral facility from its existing $50 billion by a whopping $500 billion (SDR333.5 billion), to $550 billion.” Little did we know that our conclusion “something big must be coming” would prove spot on just a month later after Greece, then Ireland, then Portgual, and soon Spain, Italy, Belgium, and pretty much all other European countries would topple like dominoes tethered together by a flawed monetary regime. Well, based on news from Dow Jones we can now safely predict the following: “something bigger must be coming.” As if the IMF’s trillions in open lending facilities (many of which have recently been adjusted to uncapped) were not enough, we now learn that the world lender of last resort (which in theory is the Fed, but apparently Bernanke has been getting a little shy lately so is offsetting his direct lending directives to secondary organizations like the IMF, leaving the Fed with only USD liquidity swaps) is about to activate a “Special Funding Pool” – Dow Jones explains: “The International Monetary Fund is expected to soon activate a special funding pool that will boost the fund’s ability to prevent or resolve economic crises, two people familiar with the situation said Thursday. One of the people said the activation of the funding–which can only be made by a special request from the IMF managing director to the board–was in anticipation of an expected wave of new IMF programs, including the possible expansion of the Greek bailout package.” Wonderful. Global financial cataclysm rinse repeat all over again…

More from Dow Jones:

Activating access to the funding pool could provide assurance to the market of the IMF’s ability to backstop any major funding crisis amid ongoing fears that Europe’s sovereign debt woes will worsen. The IMF board recently approved a boost to the so-called New Arrangements To Borrow, bringing the special pool of funding to around $580 billion, adding several hundred billion dollars to the total amount the fund has to tap. According to the IMF, the pool of supplementary resources are only to be activated when “needed to forestall or cope with a threat to the international monetary system.”

Read moreIMF Prepares For ‘Threat To International Monetary System’

Fitch Ratings and Standard & Poor’s Downgrade Portugal’s Credit Rating, Potugal Said to Require as Much as $99 Billion in Any European Bailout

Then come the other dominoes:  Spain, Italy, UK and France.

(Ireland and Greece have been totally destroyed.)

Spain is already ‘too big to bail out’:


Prof. Nouriel Roubini Tells Portugal To Seek Bailout, Spain ‘Too Big To Bail Out’:

Nouriel Roubini, the US economist, said Portugal should consider asking for a bailout before its financial plight worsens as the euro fell after the €85bn Ireland bailout failed to ease eurozone debt fears.

However, he said neighboring Spain, Europe’s fourth-largest economy, is “too big to bail out.”

Unless the ECB prints euros ‘until Europe runs out of trees’.

Mar. 25 (Bloomberg) A bailout for Portugal may total as much as 70 billion euros ($99 billion), two European officials with direct knowledge of the matter said, as credit-rating cuts threatened to deepen Portugal’s debt woes.

Preliminary calculations put the cost of a lifeline from 50 billion to 70 billion euros, said the officials, who declined to be named because the issue is confidential. Portugal continued to rule out a rescue after the parliament’s rejection of budget cuts led Prime Minister Jose Socrates to offer to quit.

Downgrades by Fitch Ratings and Standard & Poor’s dealt a further blow, as European Union leaders called on Socrates and the opposition parties to unite behind belt-tightening measures that might spare Portugal from becoming the third euro country to tap emergency aid.

Read moreFitch Ratings and Standard & Poor’s Downgrade Portugal’s Credit Rating, Potugal Said to Require as Much as $99 Billion in Any European Bailout

Peter Schiff on CNBC: Buy Gold it could go to $10,000

The following interview with Peter Schiff was before this happened:

Emergency: Record Collapse: USDJPY Flash Crashes As All Support Taken Out – USDJPY Goes Bidless – Technical USDJPY Observations: ‘If The Down Move Continues, 71.70 Is Next’

The Day The Yen Carry Trade Died

Added: 17.03.2011

Italy Bans Japanese Food Imports In Wake Of Nuclear Radiation

Italy bans Japanese food imports in wake of nuclear radiation (Monsters and Critics):

Rome – Italy has banned the import of food products from Japan due to concern that they may be contaminated by nuclear radiation, Health Ministry officials confirmed Wednesday.

The announcement was first made by Italian Health Minister Ferruccio Fazio during a Tuesday late-night television chat-show.

Read moreItaly Bans Japanese Food Imports In Wake Of Nuclear Radiation

Portuguese Bonds Slump on Bets Government Will Request Bailout

Amid crisis, Portuguese Facebook youth takes to streets (AP):

LISBON, Portugal – Portugal’s disgruntled Facebook generation, inspired by a pop song, marched in a dozen cities Saturday to vent its frustration at grim career prospects amid an acute economic crisis that shows no sign of abating.

Some 30,000 people, mostly in their 20s and 30s, crammed into Lisbon’s main downtown avenue, called onto the streets by a social media campaign that harnessed a broad sense of disaffection. Local media reported thousands more attended simultaneous protests at 10 other cities nationwide.

A banner at the front of the Lisbon march said, “Our country is in dire straits.” Another said, “We are the future.” The Lisbon march was festive and raucous, featuring brass bands, drum combos and small children with balloons. Middle-aged parents also turned out.

(Bloomberg) — Portuguese 10-year bonds had their biggest weekly slump in four while Greek and Irish debt of similar maturity also fell on speculation European leaders won’t prevent a worsening of the region’s sovereign debt crisis.

The yield on Portugal’s five and 10-year bonds reached euro-era records this week on bets the nation is nearing a request for financial aid from the European Union and the International Monetary Fund. The declines widened the premium, or spread, that investors demand to hold five-year Portuguese notes instead of benchmark German bunds, by 66 basis points in the week to 548 percentage points. Spanish 10-year bonds fell after the nation’s credit rating was cut by Moody’s Investors Service.

“Portugal is clearly the most vulnerable of the peripheral nations in Europe at the moment — there’s no doubt about it,” said Nick Stamenkovic, an Edinburgh-based fixed-income strategist at RIA Capital Markets Ltd., a broker for banks and investors. “Some of these smaller peripheral nations are paying punitive rates, and the rates are going up.”

Read morePortuguese Bonds Slump on Bets Government Will Request Bailout

Moody’s Downgrades Spain’s Credit Rating

See also:

Portugal: Only €4 Billion In Cash Vs €20 Billion In Bond Maturity And Deficit Outflows In 2011

Spain Is Still The Elephant In The European Room!


Prof. Nouriel Roubini Tells Portugal To Seek Bailout, Spain ‘Too Big To Bail Out’:

Nouriel Roubini, the US economist, said Portugal should consider asking for a bailout before its financial plight worsens as the euro fell after the €85bn Ireland bailout failed to ease eurozone debt fears.

However, he said neighboring Spain, Europe’s fourth-largest economy, is “too big to bail out.”

Moody’s has reignited the storm of controversy over the power of rating agencies after it downgraded Spain, and warned that the bank clean-up will cost vastly more that claimed.

A poster reading ‘Stop the crisis, create a company’ outside the Bank of Spain building in Madrid Photo: AP

The move comes a day before a crucial summit of EMU leaders to thrash out a “grand deal” intended to create workable machinery for the euro and end the debt crisis once and for all.

Moody’s cut Spain’s credit by one notch to Aa2 and said Madrid’s estimates of €20bn (£17.2bn) of fresh capital needed to rebuild the banks and cajas is too low. “The overall cost is likely to be nearer €40bn to €50bn,” rising to as much as €120bn in a “stressed scenario”.

Moody’s report raises fresh doubts over Spain’s ability to fend off contagion as the bond spreads on Greek, Irish, and Portuguese debt reach post-EMU highs.

Read moreMoody’s Downgrades Spain’s Credit Rating