In the news:

Report: Al Qaeda Operating In Jerusalem

Al Qaeda claims to be operating a “Sunni Youth” terrorist cell in Jerusalem as Muslim extremism grows throughout the Middle East.

The "Sunni Youth Movement Cell in Greater Jerusalem” issued its first message Monday night, according to Debkafile,

Last month, the number of terrorist attacks against Israelis almost doubled from the previous month, rising from 44 in November to 81 in December.

The IDF has warned that terrorists will try to use the diplomatic impasse between Israel and the Palestinian Authority to execute attacks against Israeli civilians and soldiers. Another impetus for terrorists is the recent release by Israel of more than 1,000 terrorists and security prisoners for the return of kidnapped soldier Gilad Shalit.

After the deal was concluded, Hamas and other terrorist groups immediately announced their aim is to kidnap more Israelis as bargaining chips for more prisoner releases and concessions.

IDF Predicts Missile Attacks On Jerusalem In Future War

The army recently updated threat scenarios for every major city in Israel – and for the first time predicted that missiles might hit Jerusalem, even in a relatively minor conflict.

According to the IDF, the capital, which is in the range of Syrian and Hezbollah missiles, could also come under fire during a smaller conflict with Hamas and Islamic Jihad in the Gaza Strip. Both terrorist organizations are believed to possess Iranian rockets that have the ability to strike Jerusalem and the surrounding areas.

Persian Gulf Tensions Mount As U.S. Engages Israel On Iran

The Obama administration is engaged in a full-court press to persuade Israel that Iran’s nuclear threat can be contained short of war.

The U.S. lobbying has received a mixed reception from Israel, where the Netanyahu government has not ruled out a unilateral strike on Iran.

“We may be further along the road to war than most people believe,” said Michael Adler, an Iran scholar at the Woodrow Wilson International Center for Scholars.

Experts are divided as to the seriousness of the threat to cut off the strait and whether it will lead to war.

The resultant war also would give the U.S. a pretext to attack suspected Iranian nuclear sites, he said.

Except it didn’t apparently “take” in Jerusalem -- Prime Minister Benjamin Netanyahu continued to press for a more immediate ratcheting-up of pressure on Iran, in part by hinting that Israel might take action alone.

Likening himself to Israel’s first prime minister, David Ben-Gurion, who declared statehood against the counsel of some allies, Netanyahu said in a speech -- just days after the strategic dialogue -- that he would “make the right decision at the right moment,” whatever allies counseled.

That was seen as a rebuke to Leon Panetta, the U.S. defense secretary, who a week earlier had warned that striking Iran could envelop the region in a conflagration.

Iran: Ahmadinejad Says Sanctions Will Be Met With 'Force'

Iran is flexing its muscles in response to Western moves to isolate it economically.

The Iranian Central Bank will respond to new sanctions imposed by the United States "with force, "Iranian president Ahmadinejad told an annual meeting of senior central bank officials on Monday, according to state media.

Iran Test Fires Second Missile In 24 Hours As Posturing Escalates

As expected yesterday, when the US went out full bore with a Japan approach of McCollum-like strategy of leaving Iran no option but to keep escalating until finally the US has enough public support grounds for a response, in under 24 hours Iran has launched a second missile, this time not a medium-range SAM to a long-range shore-to-sea missile. Needless to say, the US 5th Navy is watching these quite welcome developments with great interest.

From Reuters: "Iran said on Monday it had successfully test fired a long-range missile during its naval exercise in the Gulf, flexing its military muscle to show it could hit Israel and U.S. bases in the region if attacked.

At this point it is glaringly obvious to all but the most confused that the US is consistently pushing Iran to escalate further and further, until such time as the US ships stationed in Bahrain say enough and decide it is time to sink some boats.

Consider the prophetic implications of this next article below:

Dream Of Universal Currency Just Won't Die

This is undeniably a period of epic turmoil, and many economists will tell you that sovereign states need sovereign currencies—full stop. But this notion ignores a fundamental truth: Countries with their own currency may have monetary independence, but in reality—as gun battles in Libya, CDOs in the US, and tsunamis in Japan have taught us—we are only becoming more economically intertwined, regardless of what our coins look like.

Now we see the arguments which will be used to usher in a single, world currency:

Step back from the current crisis to consider the long view, and currency unions—or even a single global currency—have a fair share of appeal. A universal medium of exchange could eliminate currency risk and jack up trade. It would mean speculators couldn’t short an individual country’s currency. Exporters wouldn’t have to fret over the gap between a price on a contract and the value of the payment. A single currency could halt spastic swings in prices and end conversion fees, leaving more of the pie for little stuff like R&D and employee health insurance. Oh—and it could put an end to international disputes over currency manipulation. Hello? China?

The fact is, the modern economy and monetary system are too damn precarious for us not to examine every possible way to protect against future shocks—including going all in on a universal currency. It’s a bit like geoengineering: radical and outrageous at first blush but, given humanity’s current predicament, not as outrageous as dismissing it out of hand.

Perhaps the seed for that universal currency has already been planted. The International Monetary Fund uses something called Special Drawing Rights, a crossbreed of four of the world’s key currencies, to make certain kinds of settlements between IMF members. Could SDR someday morph into the One Coin to Rule Them All? If so, some lucky designer will have a field day mashing up $, ¥, £, and, yes, €.

Is A Super-Volcano In Germany About To Blow?

A sleeping super-volcano in Germany is showing worrying signs of waking up.

It's lurking just 390 miles away underneath the tranquil Laacher See lake near Bonn and is capable of ejecting billions of tons of magma.

This monster erupts every 10 to 12,000 years and last went off 12,900 years ago, so it could blow at any time.

Experts believe that if it did go off, it could lead to widespread devastation, mass evacuations and even short-term global cooling from the resulting ash cloud blocking the sun.

Volcanologists believe that the Laacher See volcano is still active as carbon dioxide is bubbling up to the lake’s surface, which indicates that the magma chamber below is 'degassing'.