Archive for the ‘Libya’ Category
It’s hard to believe how little Americans know about the real issues facing them after $6 billion was spent by both parties getting their message out (a record $2 billion for President alone). I don’t blame the politicians in this or any election cycle. After all, why talk about tough issues and choices if you are not pressured to do so. I blame the mainstream media (MSM) for acting more like cheerleaders and spin doctors than arbiters of truth for the public. The MSM ignored the real issues while spending hours on things like the Trayvon Martin tragedy. I do not know who is at fault, but I do know the MSM’s wall-to-wall coverage inferred there was a national problem of white on black murder when there is none. According to the latest FBI information, around 90% of blacks are killed by black people (likewise for the white on white murder rate).
The U.S. faces a financial storm of biblical proportions; I am talking a Noah’s Ark tsunami. The real fiscal cliff isn’t what is coming at the end of the year. It is the debasement of the U.S. dollar at the hands of the Federal Reserve that is printing $85 billion every month in “open-ended” currency creation. According to experts, it is only a matter of time before the U.S. bond market collapses with an interest rate spike that money manager Michael Pento says will turn into “an interest rate shock that will make the Great Depression look like the days of wine and roses.” Not a word in the debates or questions by the MSM to the candidates about money printing on a scale that has never been done in human history.
The 2008 financial meltdown was caused by a housing crisis created by big banks. They sold “liar loans,” packaged those loans into mortgage-backed securities, they were rated “Triple-A” when they were “toxic;” and when it all blew sky high, the bankers committed forgery, perjury and fraud that was politely called “robo-signing.” According to Professor William Black, who was also a top regulator in the Savings and Loan crisis of the 1980’s, more than 1,000 financial elites were successfully prosecuted in the aftermath of the S&L calamity. The 2008 meltdown was 70 times larger. There has not been a single financial elite charged with a crime. This fraud and crime is one of the main reasons the economy is still in deep trouble. According to Fabian Calvo of TheNoteHouse.us, “We haven’t even scratched the surface of being at the bottom of the housing market.” (His company buys and sells $100 million a year in real estate and sour mortgage debt.) $40 billion of the $85 billion the Fed prints every month is going for continued banker bailouts. You can talk all you want about raising taxes on rich, but the real money is in the banker bailouts. No meaningful discussion or questions were asked of the Presidential candidates on this subject either.
It has been widely reported the U.S. used al-Qaeda terrorists to help overthrow the Libyan government. It is doing the same thing in Syria. We all saw the results of this policy on 9/11/12 in Libya where four Americans (including a U.S. Ambassador) were killed in an al-Qaeda terrorist attack. Calls for help went unanswered, even though there was a live Internet video feed going into the White House situation room. No questions were asked by the MSM of either candidate of the logic and danger of this kind of foreign policy.
The President can legally order the execution of any U.S. citizen without due process. The President did just that last year when he ordered drone strikes in Yemen that killed three suspected American born terrorists. Relatives are suing the U.S. government for wrongful-death. According to a New York Times story, “The killings violated fundamental rights afforded to all U.S. citizens, including the right not to be deprived of life without due process of law,’ the complaint says.” (Click here for the NYT story.) There was not a single question asked of either Presidential candidate by the MSM about Presidential “license to kill.”
Finally, the National Defense Authorization Act (NDAA) was signed into law by President Obama on New Year’s Eve 2011. It allows for the indefinite detention of suspected terrorists which includes U.S. citizens. This law overrides due process contained in the Constitution. The President’s signing statementsays, “I want to clarify that my Administration will not authorize the indefinite military detention without trial of American citizens.” But that didn’t stop President Obama, a Constitutional scholar, from signing it into law anyway. The American Civil Liberties Union (ACLU) called this act “. . . a stain on our nation’s history – one that will ultimately be viewed with embarrassment and shame.” (Click here for more on the story.) You can’t get more liberal than the ACLU; and, yet, the left and right were silent and asked no questions of either Presidential candidate about this Constitutional atrocity.
The general public is blind to the great danger to the economy and our Republic. I lay the blame squarely at the feet of the MSM for not doing its job for the public good. PIMCO chief Bill Gross summed it all up in a tweet on Election Day that said, “Gross: Whew! It’s over. To the victor belongs the spoils of political power but to the US voter only continuing frustration will accrue.”
Greg Hunter USAWatchdog.com
Did Obama Withhold Cross-Border Authority?
Please help me.
I am trying as hard as I can to get out the word about cross-border authority (CBA).
I just can’t believe reporters don’t know enough to ask the right questions! It’s infuriating.
Libya, as far as standing down the rescue, is 100% Obama’s show, and nobody else’s. Only he can grant CBA [Cross-Border Authority], not Biden, not Panetta, not Dempsey, not Hillary, and certainly not Ham in Germany.
The entire episode is explained perfectly inside the context of not granting CBA. The CIA QRF *[Quick Response Force] in Tripoli? No problem, send them on the local Tripoli station chief’s say-so. He merely informs up COC [Chain of Command] that he has done so. CCs them so to speak. “This is what I am doing.” Ditto if Predators were in country, no problem using them.
But the big rescue air armada streaming toward Libya right away after the alarm got to Stuttgart and Africom? That has to stop. I believe at the 5pm meeting with Panetta and Biden in the Oval Office, he said, “No outside military intervention,” on the basis that the last report was the “lull” from the consulate, at about 1030 p.m. in Benghazi, when the attack appeared to be over and the situation stabilizing.
(As a soft exception, Obama may have authorized sending an unarmed Predator from outside of Libya, but I am thinking the two Predators were already in-country, and hence available to use within “no CBA granted” rules.)
“No outside military intervention” equals “no cross-border authority” and that constitutes “standing orders” until POTUS [President of the United States] changes them. Nobody else can “un-decide” the POTUS decree. The rescue air-armada of C-17s, C-130s and SOF helos like MH-47 Chinooks and Pavehawks cannot proceed directly to Libya without CBA being granted, so instead they are all staged at Sigonella, Sicily.
USN [United States Navy] ships are in position to “lilypad” helos for long over-water flights. Airborne tankers are coming into position. SOF forces in Sigonella are going over their gear for different contingencies. Fuming all night as officers keep checking in with operational commanders. “Hold in place, no rescue yet. We can’t find the President, it sounds like,” say the colonels to the majors and captains. 100s of military must know about this. I keep waiting for the conclusive whistle-blowers to come forward BEFORE the election. After won’t matter, it will be for the historians.
Panetta is falling on his sword for Obama with his absurd-on-its-face, “The military doesn’t do risky things” defense of no rescue.Panetta is destroying his future reputation entirely, to save Obama. The question is why? Loyalty?
Petreaus was probably “used” in some way early, about the supposed CIA intel link to the Mohammed video, and now he feels burned. So he conclusively said via his PAO, “The stand-down order did not come from CIA.”
Well, what is higher than CIA? Only White House. Obama, nobody else. Petreaus is naming Obama without naming him.
Now, as far as Obama / Huma Abedin / Valerie Jarrett etc actually wanting Ambassador Stevens dead, to terminate the end of the very dirty Libyan arms to Syrian AQ programs, I can’t speculate. Obama is not competent enough, I’m thinking.
But for sure, the ambassador going to unsecure Benghazi on 9-11 of all days stinks to me of a setup. You can bet Stevens would have told the Turks, “No, 9-11 is not a good day for us,” and stayed in Tripoli behind many high and thick walls. For him to go to dangerous Benghazi on 9-11 means the Turks totally insisted, but why would they care about the meeting date, unless they were in on a “hit” as the Judas goat?
Alternatively, ordering Stevens to meet the Turks in Benghazi on 9-11 may have come from down OUR chain of command. Stevens seems to have been wearing two hats as ambassador and CIA arms shipper. Moving between more-secure Tripoli, the Benghazi “consulate,” and the CIA “annex.” So orders to him might come down the State or the CIA commo channels, or both. I am unclear on his job title and true position, but either the CIA or State sends him final instructions. How this works with “dual-hatted” ambassadors, I haven’t a clue.
But Stevens meeting the Turks at the unsecure Benghazi “consulate” on 9-11 stinks to me of a deliberate setup. The Turks left the meeting and probably flashed their headlights to the attack team commanders lurking in shadows. A coded text, a word on a phone, meaning, “The ambassador is there, with minimal security: proceed with the attack plan.”
That is all pure speculation. What I know FOR SURE is that the big “stand down order” issue revolves around granting or withholding cross-border authority.
Every SOF officer and ops officer all the way up has this drummed into his head. We can make Obama respond to this question, even if reporters must shout it at him while he’s doing storm cleanup photo ops. If the reporters KNOW enough to ask the quesion.
That’s why I am shouting all over the internet about CBA.
I can’t believe cross-border authority permission is not one of the top discussion points about Benghazi.
That, and who “set him up” by sending him to Beghazi to meet the Turks on 9-11, with them leaving after dark.
And of course, down the road, was the military rescue-in-progress turned back because Obama actually wanted to make sure the consulate was wiped out? Is that why the spooks at the annex were refused permission to travel the under one mile to intervene? That would connect it all together, but for now, the best focus is on Obama either granting or withholding cross-border authority for the rescue.
Feel free to repost these musings of a long-ago SOF officer anywhere you please.
ABOUT THE AUTHOR: Matt Bracken was born in Baltimore, Maryland in 1957 and graduated from the University of Virginia in 1979 with a degree in Russian Studies. He was commissioned in the US Navy through the NROTC program at UVA, and then graduated from Basic Underwater Demolition/SEAL training class 105 in Coronado California. He served on east coast UDT and SEAL teams, taking a Naval Special Warfare detachment to Beirut in 1983. Mr. Bracken left active duty after Lebanon, upon completion of his obligated military service, but he remained in an active reserve status through the remainder of the 1980s. Since then he has lived in Florida, Virginia, South Carolina, Guam and California. In 1993 Mr. Bracken finished building a 48-foot steel sailing cutter of his own design, on which he has done extensive ocean cruising, including a solo voyage 9,000 miles from Panama to Guam and two Panama Canal transits.
NOTE: * Bracketed [words] denote FedUpUSA editor’s clarification of abbreviations.
Obama The Traitor: The Hits Keep Coming
The lid isn’t going to stay on this much longer folks.
First, we have this with General Ham, who apparently had a rapid-deployment force ready to go into action when he learned that the consulate was under assault. Then:
General Ham then received the order to stand down. His response was to screw it, he was going to help anyhow. Within 30 seconds to a minute after making the move to respond, his second in command apprehended General Ham and told him that he was now relieved of his command.
Got that? It appears from this report that he was placed under armed arrest for attempting to rescue our people.
But it doesn’t stop there; apparently General Ham is not the only member of the armed forces who attempted to respond as one would expect from Americans at-arms:
The Navy said Saturday it is replacing the admiral in command of an aircraft carrier strike group in the Middle East, pending the outcome of an internal investigation into undisclosed allegations of inappropriate judgment.
Inappropriate judgment eh? Like, perhaps, deciding that he was going to go do his job when our people were under attack through an act of war by belligerents?
There isn’t much that’s “inappropriate” in my view under such circumstances in terms of rapid response, but the CIC (that would be Obama) apparently sees things differently.
Remember, ladies and gentlemen, we have a military that is under civilan control. That means you and I are the final arbiters of what is and is not permissible military action, not the other way around. We, and not they, make that decision.
The questions you must now ask yourself as we come into these next couple of weeks, culminating in the election, are:
- Are you are going to remain silent and by doing so consent to the murder of four in Benghazi? If this is unacceptable to you then it is your duty as an American to do something about it. What you choose to do about it is of course up to you, and I urge lawful actions, not lawless ones, but the fact remains that our military structure means that you, and not they, are ultimately in control.
- It appears that there were assets in the air that could have responded; are you going to remain silent knowing they were there and refuse to demand the public identification of the person or persons who refused to use them? It appears now that our men had designated the mortar team that was firing on them with a laser targeting device. Such an act never takes place unless there are assets in the air able to hit what’s been designated as the target and everyone else in the area can see the emission of energy used to “paint” the target. We therefore know, assuming the reports of that “painting” are accurate, that some form of aerial fire support was available and was intentionally not used. Again, you must decide if this is acceptable conduct.
- The predicate to all of this appears to have been the giving of heavy munitions to militants that may have been related to or connected with (or may have actually been!) Al-Qaida, which then “leaked” beyond where the people who gave those munitions intended them to go and be used. Is it acceptable that our government gave heavy weapons to a publicly-sworn enemy of our nation? There are multiple credible reports that the reason the Benghazi safe-house was hit was because the CIA was attempting to recover those weapons through what amounted to buying them back (that is, bribery.) You must once again decide whether or not giving heavy weapons to known and declared enemies of the United State is acceptableunder any circumstances, and if not, what you intend to do about it.
- This is not the first time we have armed belligerents on purpose; is that acceptable? Specifically, “Gun Runner” or “Fast and Furious” armed belligerent Mexican Drug Lords when then used some of those guns to shoot a United States citizen. They also, it must be presumed, used them to shoot a lot of innocent Mexican citizens. The key question here is when we as Americans will have had enough of this crap — it didn’t start with Obama, but he sure as hell has taken to a new level of art. Back during the Iran-Contra days we indicted and convicted 11 but then sat back while George HW Bush pardoned all of those who didn’t manage to beat the charges on appeal. Isn’t that nice?
We have a lot of serious problems in this country folks. Our economy is in the toilet, we have a central bank that is entirely out-of-control and a Congress that refuses to enforce the law that governs its operation (and has serially refused to do so for 100 years), we apparently are arming people who are sworn enemies of the United States and we sit back and we blow Saudi Arabian Kings who demand that the UN trash our First Amendment (and incidentally, Mr. Abdullah, go perform an anatomically-impossible act) instead of declaring him an enemy of our nation, never mind the obvious and well-documented monetary ties between his country and Al-Quaida, not to mention the 9/11 hijackers.
Some of our political candidates would like to argue over things like gay marriage, smoking pot and abortion, or promises to hand out more and more money to people in exchange for their vote. Others still would like to argue over whether one religion is superior to another. Others will bleat about how a vote that is not cast for one man is in fact a vote for another, although this is trivially proven to be mathematically false.
This is all small-ball and mental masturbation folks if, as is allged, a bunch of MANPADs that our government handed to Al-Qaida connected people start being used to shoot down airliners or our economy blows up as a consequence of unbridled, rampant deficits and QE-to-insanity.
We had damn well better wake the hell up as a body politic because if we don’t you’re going to wake up one of these mornings due to a GE Turbofan engine coming crashing through your roof, on fire and in pieces, and that will just be the beginning of a nightmare that will not end for years. This assumes that we don’t find ourselves in the middle of WWIII with mushrooms sprouting as the fruits across our “magnificent” plain. That was the ultimate ”solution” to the Depression and I’d rather not do it again, especially in a world where the loser can and probably will play “push button vaporization of your nearest city”rather than go down with a whimper.
Don’t tell me that Romney is going to fix it, because I’ve heard exactly nothing from him on any of these matters thus far that leads me to believe he would doanything other than turn his head and, if the shit got really thick, pardon Obama and everyone in his chain of command that ultimately was brought up on charges over this crap exactly as George HW Bush did.
Fox News has learned from sources who were on the ground in Benghazi that an urgent request from the CIA annex for military back-up during the attack on the U.S. consulate and subsequent attack several hours later on the annex itself was denied by the CIA chain of command — who also told the CIA operators twice to “stand down” rather than help the ambassador’s team when shots were heard at approximately 9:40 p.m. in Benghazi on Sept. 11.
You can’t be serious.
As I noted a few days ago it appears that our “purpose” in maintaining that “safe house” in Libya was that we had thousands of MANPADs — man-totable anti-aircraft missiles — “loose” over there, and were trying to find them and basically buy them back (read: bribery.) Therefore, we knew damn well that the so-called “annex” in question was a high-value target to anyone who had a stick in their ass about America, as it contained both weapons and lots of money — two commodities in high demand in that part of the world.
At least three men, including two now-dead ones, ignored the order to stand down and attempted to defend the consulate. They died defending American soil despite orders to not do so. Worse, during the attempted defense they managed to get a laser designator on the people firing on the annex and yet they couldn’t get anyone to put ordnance on that location.
So exactly who refused help?
It is looking increasingly likely that the person responsible for this is President Obama himself, personally.
Breaking news on Benghazi: the CIA spokesman, presumably at the direction of CIA director David Petraeus, has put out this statement: “No one at any level in the CIA told anybody not to help those in need; claims to the contrary are simply inaccurate. ”
But clearly, someone did issue a “Stand Down” order (that was ignored.) Who was it?
There’s only one person left: President Obama himself.
Facts are funny thing — they eventually lead to inescapable conclusions, no matter how hard you’d wish they didn’t, as potential explanations for various events are examined and discarded.
It now appears that we have a President who not only intentionally put our men and women in harm’s way without appropriate defensive measures but when they came under attack he literally ordered them to die rather than defend them.
Are we as American going to sit for this outrage or will we call it what it is?
Colonel Gadhafi is seeking to join the Federal Reserve, as his interests align so neatly with Fed policy.
A secret transcript has come to light that reveals a shocking turn of events: Colonel Gadhafi is actively seeking a seat on the Board of Governors of the Federal Reserve System. These stills explain why the Colonel sees himself as a perfect fit for the Board.
April Fools. Except for the part about the Fed destroying America from within.
2011 has already been the most memorable year in ages and we haven’t even reached April yet. Revolutions have swept the Middle East, an unprecedented earthquake and tsunami have hit Japan, civil war has erupted in Libya, the price of oil has been soaring and the entire globe is teetering on the brink of economic collapse. It seems like almost everything that can be shaken is being shaken. Unfortunately, it does not appear that things are going to settle down any time soon. The Japanese economy has been dealt a critical blow, the European sovereign debt crisis could flare up again at any moment and the U.S. economy could potentially plunge into another recession by the end of the year. The global economy and world financial markets were really struggling to recover even when things were relatively stable. If all of this global instability gets even worse it could literally rip world financial markets apart.
Yes, things really are that bad. The mainstream media has been really busy downplaying the economic impact of the disaster in Japan and the chaos in the Middle East, but the truth is that these events have huge implications for the global economy. Today our world is more interconnected than ever, so economic pain in one area of the planet is going to have a significant effect on other areas of the globe.
The following are 10 economic disasters which could potentially rip world financial markets to shreds….
#1 War In Libya
Do you think that the “international community” would be intervening in Libya if they did not have a lot of oil? If you actually believe that, you might want to review the last few decades of African history. Millions upon millions of Africans have been slaughtered by incredibly repressive regimes and the “international community” did next to nothing about it.
But Libya is different.
Libya is the largest producer of oil in Africa.
Apparently the revolution in Libya was not going the way it was supposed to, so the U.S. and Europe are stepping in.
Moammar Gadhafi is vowing that this will be a “long war”, but the truth is that his forces don’t stand a chance against NATO.
Initially we were told that NATO would just be setting up a “no fly zone”, but there have already been reports of Libyan tank columns being assaulted and there has even been an air strike on Moammar Gadhafi’s personal compound in Tripoli.
So since when did a “no fly zone” include an attempt to kill a foreign head of state?
Let there be no mistake – the moment that the first Tomahawk cruise missiles were launched the United States declared war on Libya.
Already the Arab League, India, China and Russia have all objected to how this operation is being carried out and they are alarmed about the reports of civilian casualties.
Tensions around the globe are rising once again, and that is not a good thing for the world economy.
On a side note, does anyone recall anyone in the Obama administration even stopping for a moment to consider whether or not they should consult the U.S. Congress before starting another war?
The U.S. Constitution specifically requires the approval of the Congress before we go to war.
But very few people seem to care too much about what the U.S. Constitution says these days.
In any event, the flow of oil out of Libya is likely to be reduced for an extended period of time now, and that is not going to be good for a deeply struggling global economy.
#2 Revolutions In The Middle East
Protests just seem to keep spreading to more countries in the Middle East. On Friday, five Syrian protesters were killed by government forces in the city of Daraa. Subsequently, over the weekend thousands of protesters reportedly stormed government buildings in that city and set them on fire.
Things in the region just seem to get wilder and wilder.
Even in countries where the revolutions are supposed to be “over” there is still a lot of chaos.
Have you seen what has been going on in Egypt lately?
The truth is that all of North Africa and nearly the entire Middle East is aflame with revolutionary fervor.
About the only place where revolution has not broken out is in Saudi Arabia. Of course it probably helps that the United States and Europe don’t really want a revolution in Saudi Arabia and the Saudis have a brutally effective secret police force.
In any event, as long as the chaos in the Middle East continues the price of oil is likely to remain very high, and that is not good news for the world economy.
#3 The Japanese Earthquake And Tsunami
Japan is the third largest economy in the world. When a major disaster happens in that nation it has global implications.
The tsunami that just hit Japan was absolutely unprecedented. Vast stretches of Japan have been more thoroughly destroyed than if they had been bombed by a foreign military power. It really was a nation changing event.
The Japanese economy is going to be crippled for an extended period of time. But it is not just Japan’s economy that has been deeply affected by this tragedy.
According to the Wall Street Journal, the recent disaster in Japan has caused supply chain disruptions all over the globe….
A shortage of Japanese-built electronic parts will force GM to close a plant in Zaragoza, Spain, on Monday and cancel shifts at a factory in Eisenach, Germany, on Monday and Tuesday, the company said Friday.
Not only that, GM has also suspended all “nonessential” spending globally as it evaluates the impact of this crisis.
The truth is that there are a whole host of industries that rely on parts from Japan. Supply chains all over the world are going to have to be changed as a result of this crisis. There are going to be some shortages of certain classes of products.
Japan is a nation that imports and exports tremendous quantities of goods. At least for a while both imports and exports will be significantly down, and that is not good news for a world economy that was already having a really hard time recovering from the recent economic downturn.
#4 The Japan Nuclear Crisis
Even if the worst case scenario does not play out, the reality is that the crisis at the Fukushima Dai-ichi nuclear plant is going to have a long lasting impact on the global economy.
Already, nuclear power projects all over the world are being rethought. The nuclear power industry was really starting to gain some momentum in many areas of the globe, but now that has totally changed.
But of much greater concern is the potential effect that all of this radiation will have on the Japanese people. Radiation from the disaster at the Fukushima Dai-ichi nuclear plant is now showing up in food and tap water in Japan as an article on the website of USA Today recently described….
The government halted shipments of spinach from one area and raw milk from another near the nuclear plant after tests found iodine exceeded safety limits. But the contamination spread to spinach in three other prefectures and to more vegetables — canola and chrysanthemum greens. Tokyo’s tap water, where iodine turned up Friday, now has cesium.
Hopefully the authorities in Japan will be able to get this situation under control before Tokyo is affected too much. The truth is that Tokyo is one of the most economically important cities on the planet.
But right now there is a lot of uncertainty surrounding Tokyo. For example, one very large German real estate fund says that their holdings in Tokyo are now “impossible to value” and they have suspended all customer withdrawals from the fund.
Once again, let us hope that a worst case scenario does not happen. But if we do get to the point where most of the population had to be evacuated from Tokyo for an extended period of time it would be absolutely devastating for the global economy.
#5 The Price Of Oil
Most people believe that the U.S. dollar is the currency of the world, but really it is oil. Without oil, the global economy that we have constructed simply could not function.
That is why it was so alarming when the price of oil went above $100 a barrel earlier this year for the first time since 2008. Virtually everyone agrees that if the price of oil stays high for an extended period of time it will have a highly negative impact on the world economy.
In particular, the U.S. economy is highly, highly dependent on cheap oil. This country is really spread out and we transport goods and services over vast distances. That is why the following facts are so alarming….
*The average price of a gallon of gasoline in the United States is now 75 cents higher than it was a year ago.
*In San Francisco, California, the average price of a gallon of gasoline is now $3.97.
*According to the Oil Price Information Service, U.S. drivers spent an average of $347 on gasoline during the month of February, which was 30 percent more than a year earlier.
*According to the U.S. Energy Department, the average U.S. household will spend approximately $700 more on gasoline in 2011 than it did during 2010.
#6 Food Inflation
Many people believe that the rapidly rising price of food has been a major factor in sparking the revolutions that we have seen in Africa and the Middle East. When people cannot feed themselves or their families they tend to lose it.
According to the United Nations, the global price of food hit a new all-time high earlier this year, and the UN is expecting the price of food to continue to go up throughout the rest of this year. Food supplies were already tight around the globe and this is certainly not going to help things.
The price of food has also been going up rapidly inside the United States. Last month the price of food in the United States rose at the fastest rate in 36 years.
American families are really starting to feel their budgets stretched. According to the U.S. Labor Department, the cost of living in the United States hit a brand new all-time record high in the month of February.
What this means is that U.S. families are going to have less discretionary income to spend at the stores and that is bad news for the world economy.
#7 The European Sovereign Debt Crisis
Several European governments have had their debt downgraded in the past several months. Portugal, Spain, Greece and Ireland are all in big time trouble. Several other European nations are not far behind them.
Right now Germany seems content to bail the “weak sisters” in Europe out, but if that changes at some point it is going to be an absolute nightmare for world financial markets.
#8 The Dying U.S. Dollar
Right now there is a lot of anxiety about the U.S. dollar. Prior to the tsunami, Japan was one of the primary purchasers of U.S. government debt. In fact, Japan was the second-largest foreign buyer of U.S. Treasuries last year.
But now as Japan rebuilds from this nightmare it is not going to have capital to invest overseas. Someone else is going to have to step in and buy up all of the debt that the Japanese were buying.
Not only that, but big bond funds such as PIMCO have announced that they are stepping away from U.S. Treasuries at least for now.
So if Japan is not buying U.S. Treasuries and bond funds such as PIMCO are not buying U.S. Treasuries, then who is going to be buying them?
The U.S. government needs to borrow trillions of dollars this year alone to roll over existing debt and to finance new debt. All of that borrowing has got to come from somewhere.
#9 The U.S. Housing Market
The U.S. housing market could potentially be on the verge of another major crisis. Just consider the following facts….
*In February, U.S. housing starts experienced their largest decline in 27 years.
*Deutsche Bank is projecting that 48 percent of all U.S. mortgages could have negative equity by the end of 2011.
*Two years ago, the average U.S. homeowner that was being foreclosed upon had not made a mortgage payment in 11 months. Today, the average U.S. homeowner that is being foreclosed upon has not made a mortgage payment in 17 months.
*In September 2008, 33 percent of Americans knew someone who had been foreclosed upon or who was facing the threat of foreclosure. Today that number has risen to 48 percent.
#10 The Derivatives Bubble
Most Americans do not even understand what derivatives are, but the truth is that they are one of the biggest threats to our financial system. Some experts estimate that the worldwide derivatives bubble is somewhere in the neighborhood of a quadrillion dollars. This bubble could burst at any time. Right now we are watching the greatest financial casino in the history of the globe spin around and around and around and everyone is hoping that at some point it doesn’t stop. Today, most money on Wall Street is not made by investing in good business ideas. Rather, most money on Wall Street is now made by making shrewd bets. Unfortunately, at some point the casino is going to come crashing down and the game will be over.
Most people simply do not realize how fragile the global economy is at this point.
The financial crash of 2008 was a devastating blow. The next wave of the economic crisis could be even worse.
So what will the rest of 2011 bring?
Well, nobody knows for sure, but a lot of experts are not optimistic.
David Rosenberg, the chief economist at Gluskin Sheff and Associates, is warning that the second half of the year could be very rough for the global economy….