Friday, July 27, 2012

Evening Update:

Iran Bolsters Retaliation Capability In Persian Gulf, Experts Say

Iran is rapidly gaining new capabilities to strike at U.S. warships in the Persian Gulf, amassing an arsenal of sophisticated anti-ship missiles while expanding its fleet of fast-attack boats and submarines, U.S. and Middle Eastern analysts say.

The new systems, many of them developed with foreign assistance, are giving Iran’s commanders new confidence that they could quickly damage or destroy U.S. ships if hostilities erupt, the officials say.

In recent weeks, as nuclear talks with world powers have faltered and tensions have risen, Iran has repeated threats to shut down shipping in the oil-rich gulf region. Its leaders also have warned of massive retaliation for any attacks on its nuclear facilities, which the United States believes are civilian covers for an Iranian drive to acquire a nuclear-weapons capability.

Last week, Iran’s Foreign Ministry declared that the presence of U.S. warships in the gulf constituted a “real threat” to the region’s security.

Pentagon officials have responded by sending more ships, urged on by Congress as well as U.S. allies in the region. This month, the Navy announced that it would deploy the aircraft carrier USS John C. Stennis to the Middle East four months ahead of schedule. The shift will keep two carriers in the gulf region.

In either scenario, Iran’s ability to inflict significant damage is substantially greater than it was a decade ago. A Pentagon study in April warned that Iran had made gains in the “lethality and effectiveness” of its arsenal. The Pentagon declined to comment for this article.

Iran’s increased power to retaliate has led some military experts to question the wisdom of deploying aircraft carriers and other expensive warships to the gulf if a conflict appears imminent.

“If the U.S. chooses to station warships in the Strait of Hormuz during the buildup to conflict, it cedes the decision of when to fight and allows the fight to begin in the most advantageous place for Iran,” wrote the study’s author, Navy Lt. Cmdr. Colin Boynton. “This could lead to a devastating first salvo on U.S. Navy warships, which would most likely be operating under restrictive rules of engagement.”

The Navy has ordered new systems for defending against small-boat “swarms,” including ship-launched unmanned aerial vehicles and special missiles and artillery rounds for use against fast-attack craft. But many of the new defenses will not be deployed for several months, said Michael Eisenstadt, a former military adviser to the Pentagon and the State Department.

“We’re behind and we’re catching up,” Eisenstadt said. “But if there’s a conflict in the near term, we may not be completely ready.”

The US and world economy are near collapse. Sovereign debt, driven by increasingly desperate government interventions, spirals upward at accelerating rates. There is no recovery and there can be no recovery with the debt levels of both governments and citizens.

Incumbents, overwhelmingly want the appearance of a good economy in order to enhance their re-election prospects

Daniel Amerman described the motivations for printing more money:

1. Creating money out of thin air on a massive basis is all that stands between the current state of hidden depression, and overt depression with unemployment levels in excess of those seen in the US Great Depression of the 1930s.

2. It is the weapon of choice being used to wage currency war and reboot US economic growth.

3. It is the most effective way to meet not just current crushing debt levels, but to deal with the rapidly approaching massive generational crisis of paying for Boomer retirement promises.

4. Political survival and enhanced power for incumbent politicians.

Not reinstating some form of quantitative easing (printing money) would quickly reveal the bankruptcy of the federal government. Last year the Fed purchased 61% of treasuries issued. The Fed now has surpassed China (who is attempting to divest) as the largest holder of US debt. Federal funding needs are no less this year and in the future. Without printing, government cannot pay its bills. Tax collections and private capital markets are insufficient to meet the level of spending.

The entire financial system is under collapse. It’s not about the Greeks; it’s not about the Spanish; it’s not about the Italians; it’s not about the English; it’s not about the Americans; it’s not about the Chinese; it’s about everybody.

The Ponzi scheme of government has been going on for the last six or seven decades. Like all such schemes, it eventually exceeds its ability to continue. Every country in the world that has adopted the social welfare state model (a polite description of various stages of Socialism) is insolvent and hopelessly indebted to degrees from which they cannot recover.

There is no economic solution to this problem. Nor is there any other solution. The laws of arithmetic preclude one. Modern economies have reached the point where they have only two options as correctly described by Ludwig von Mises:

There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.

It is just that simple. No political rhetoric or economic policies can alter the outcome.


nathan said...

When a country is in debt and the solution to the problem is to add more debt through bailouts its going to come to a sad conclusion . Stephen is probably writhing with anger today at the second 100 plus day on the Dow but he is eventually going to be correct . Earnings season was very bad (As in Apple missed the consensus), Gdp was revised , You've got the Libor scandal and HSBC laundering money for Mexican Cartels)housing still stuck in the mud (no good news anywhere) and the market goes up ? So we are pretty much trading literally on the hopes of Fed intervention in the Us and in Europe ....Thats called a GIGANTIC bubble forming . Oh lets not forget the Timmy Geitner is being questioned for knowing about the Libor rates scandal" (Do ya think he'll see jail time ?)...So Stephen keep you're head up you're going to be absolutely correct its just that our printing press is as usual "buying time" .... Lets just hope the BRICS nations and China and India and Russia and Latin America and.......Don't start a movement away from the Us Dollar being the reserve currency of the world (UH-OH they already have)...Peace

Nathan said...

P.s Scott , i've made it my goal to out sarcasm you :)

Scott said...

That makes a lot of sense and I agree completely. Also I think there is a lot of evidence that BRICS are already in a movement away from the dollar. Its happening now.

Oh, and you still have a ways to go on the sarcasm thing - but you're learning:)

Gary said...

So Nathan:
When do you think the "bubble will burst?" Weeks, months, years?....

WVBORN56 said...

I wonder if the world leaders will take a two week break during the olympics? Still so many possibilities for war outbreak at any moment in the ME. I doubt Syria or other terrorists could care less about world harmony.

It has been interesting to watch the athletes parade in during the opening extravaganza. So many people who will suffer greatly during the tribulation. If only they would turn to Jesus!

Israeli Believer said...

Powerful post! And it lines up too well with what Stephen has been saying and the Krugg prediction he posted from 1980:

A stock market crash in August,
A ME war in September
A destruction of Chicago in October

Are we that close?

Ally said...

I cant vouch for the dates. Im thinking war first, then the crash (october im thinking fir the crash) but hey Im just guessing here. If we make it to the end of aug. Without m.e. War I will be very surprised.
WV-home safely!
There is a little part of me that really wants Steven to be right ;) lol! I certainly wouldnt be surprised, thats for sure!
First lets see if we can get through the Olympics securely :\

Anonymous said...

Bulls are playing with fire. Recent report from EWI indicates a 7 wave move up from the 04 JUNE lows which

Translation >>>>>


Anyone who believes that, go ahead
back up your little truck and buy
stocks, you will see what happens.

Yeah, I'm upset at bulls, but what
can I do ??

MOOD situation, that is all.

With a 1 down in place and a CORRECTIVE 7 wave number 2 up in
place, bulls have no where to

Bulls are expecting Central Banks
to behave like they have the power
of God....

Maybe JESUS should take His church
out next week and PROVE to them WHO the real
boss is.

It will be a LESSON they will never
forget.... I tell 'ya !!!!

Stephen >>>>>>>>>>>>>>

Caver said...

Agree with you guys....on all the fronts, not IF but WHEN....and a near term when at that.

And for the real power players, I don't think is mistaken direction but engineered...both the ME and the economy. OH, plenty of blindness below them striving to some higher idealistic "power to the people" pie-n-the-sky, but they're just the puppets.

Oh well, just the view from my little knothole to the world.

At any rate, seems to be agreement here....we're at the days, weeks, months countdown...well past the years and decades stage.

Hubae said...

The general population has the attitude that this will not happen. It amazes me how blind people are! I agrees WV the are going to be a lot of people going through the tribulation. Unfortunately it will take something huge to shake the masses to wake up and turn to Jesus. I am surrounded by unbelievers and I am afraid it will take the rapture to wake them up. Please pray for all the lost souls!
Maranatha.....we are going home soon!!!!