Is History Repeating?

Can Turkey Lead the Islamic World and Still Be a Western Ally?

Erdogan Anadolu Agency via Getty Images

The AKP does not aspire to be a model for the Islamic world; it aspires to be its leader — a duty which includes safeguarding the interests of the nearly 20 million Muslims living in Europe. In Erdoğan’s view, it is the EU which must accommodate itself to Turkey, not vice versa. Erdoğan is saying to the West: If you want my help in the Middle East, then we’ll play by my rules.

All the Jobs in the Shale Oil Patch Are about To Go Down the Drain

The oil boom created by “fracking” is about to go bust because of the low price per barrel of oil. At the current price, it costs too much to get the oil out of the ground. Frackers borrowed too much money to set up their businesses, and needed to sell oil at significantly higher prices to make a profit. According to, the bankruptcies have just begun:

“There are too many ugly balance sheets,” warns one energy industry analyst, adding simply that “the group is not positioned for this downturn.” While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various ‘statistics’ about how the down-side of low oil prices is ‘contained’ and the huge colossal massive tax cut means ‘everything is awesome’ for America, the data – and now actions – do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come…

The Hunt for Capital Is On

It takes a lot of money to float an artificial economy’s boat. $80-plus billion dollars a month is what the FED is pouring into the banks and financial markets to keep the house of cards standing. Artificial suppression of the interest rate has produced a tepid increase in housing. Most of the single family homes sales are re-sales of existing homes to CASH buyers, not new buyers who need a loan to buy. Many of the new housing projects are rental properties–people who can’t buy a house need a place to live.

At the same time that government expenditures are increasing, the money-making sources that the government can tax are decreasing. Small businesses, facing higher priced regulatory fees and taxes, are closing. Once profitable companies that have lost too much business in the economic downturn are downsizing or shuttering the business. When businesses close, the inventory is depleted. Employees no longer get a paycheck because they no longer have a job. The government’s ability to raise money through permits, licenses, inventory taxes, payroll taxes, sales taxes and the like is annihilated. Income tax revenues shrink; people without jobs pay no taxes.

The government’s traditional sources for raising revenue are drying up. Yet the government would never think of right-sizing itself to match its existing income. Instead, the hunt for capital is on.

According to Catherine Austin Fitts, “When G-7 concluded their emergency meeting in London last weekend, they announced that they were going to target tax havens.”

Whew, you might say. I don’t need to worry because, as John Q. Public, I have no money in a tax haven.

Well, think again. When Cyprus bank accounts were raided, it was revealed that many of the account holders were Russians, Middle-easterners, and criminals hiding cash. Other unidentied parties also were said to be hiding money in the Cyprian tax haven. The Cyprus banks were well-known as a tax haven, and many diverse entities were pouring the money into bank accounts for safe-keeping.

Those who missed the chance to extract their money before the money was seized were pissed. Do you think for one minute that if other money they have stashed in other countries also is targeted for seizure, there will not be a retaliation? Fool me once,  shame on you. Fool me twice, shame on me. Stealing the money of  powerful wealthy entities will not be ignored.

Russia is a big country with lots of resources. China and other Asian nations have lots of money and technology and people to follow orders. Organized crime is cash rich and has long invisible tentacles that can reach out and touch enemies using covert mechanisms. And who knows who else is hiding money in tax havens the world over.

Remember 9/11 was an angry entity sending a message for what it considered bad behavior. And who got hurt? John Q. Public. Who is still paying the price as a consequence of 9/11? John Q. Public.

So don’t think for a minute that what the G-7 does to persons or countries who stash money in a tax haven has no effect–or consequence–for you. Consider how your own personal world has changed since 9/11? If the G-7 starts stealing the money of rich and powerful Russians, Asians, Middle-easterners and other foreign nationals, drug lords, gun runners, crime bosses and others, you haven’t seen anything yet.

Follow the Money

What is all the hubbub about gold? Most people don’t know and don’t care. But I will tell you this much: if you are smart, you will do what those who do know are doing.

What is that, you ask? They are gathering up their gold and sitting on it. If they loaned any out, they are getting it back under their own control.

The Telegraph’s James Delingpole points out:

Back in the mid-1920s, the head of the German Central Bank, Herr Hjalmar Schacht, went to New York to see Germany’s gold. However the NY Fed officials were unable to find the palette of Germany’s gold bullion. The Chairman of the Federal Reserve, Benjamin Strong was mortified, but to put him at ease Herr Schacht turned to him and said ‘Never mind, I believe you when you when you say the gold is there. Even if it weren’t you are good for its replacement.’ (H/T The Real Asset Company)

But that was then and this is now. In the eyes of the Germans – and who can blame them? – America has lost its mojo to such a degree that it can no longer be trusted honour its debts, even in the unlikely event that it were financially capable of doing so. Which is why, following in the footsteps of Venezuela’s Hugo Chavez (who may be an idiot but is definitely no fool), Germany is repatriatriating its gold from the US federal reserve.  It will now be stored in Frankfurt.

You and me, we aren’t central bankers. But if we pay attention, we will see that China, Germany, Venezuela, several mideastern countries and more are asking the United State, France and the United Kingdom to give back the gold that those countries have placed in protective vaults–the equivalent of a safety deposit box for you and me. The central bankers of the world are losing trust in each other. That means we should be wary of those “safekeeping” our “gold,” too.

Chinese Promise Sino-Russian New World Order

The Chinese are lining up with the Russians to stop what they describe as American global aggression in places like the middle east and north Africa. The following remarks are sobering when one considers the possible consequences to America.