In The News:

Cypriots Face Draconian Case Controls To Stop Run On Banks

The measures were designed to prevent a run on the banks after a tumultuous two weeks in which Cypriots learnt they would lose billions of euros from accounts in an accord drawn up by the government to secure a €10bn bail-out from international lenders.

After confirming that banks will open for six hours today from midday, the island’s central bank said that cashing of cheques will be banned and bank withdrawals limited to €300 a day.

A spokesman said that the effectiveness of the controls would be evaluated on a daily basis, but a leak of the details to a Greek newspaper, Kathimerini, said that the curbs would stay in place for at least a week.

Famed Investor: A 'Systemic Crisis' Is Coming And Now Even Gold Can Save You

Famed Swiss investor Marc Faber, author of the Gloom Boom & Doom newsletter, on Wednesday warned that the U.S. is “creating bubbles and bubbles and bubbles” by printing money and sticking with poor financial policies. The coming crisis is going to be “systemic” and not even gold will be able to shield people from it, he explained.

When asked why the price of gold isn’t holding up as a “safe haven,” Faber had this to say:

“When you print money, the money does not flow evenly into the economic system. It stays essentially in the financial service industry and among people that have access to these funds, mostly well-to-do people. It does not go to the worker. I just mentioned that it doesn’t flow evenly into the system.

Now from time to time it will lift the NASDAQ like between 1997 and March 2000. Then it lifted home prices in the U.S. until 2007. Then it lifted the commodity prices in 2008 until July 2008 when the global economy was already in recession. More recently it has lifted selected emerging economies, stock markets in Indonesia, Philippines, Thailand, up four times from 2009 lows and now the U.S.

So we are creating bubbles and bubbles and bubbles. This bubble will come to an end. My concern is that we are going to have a systemic crisis where it is going to be very difficult to hide. Even in gold, it will be difficult to hide.”

Additionally, Faber said he sees “considerable downside risk” in the U.S. stock market.

'Syria No Longer Exists'

 Iran and Hezbollah have effectively taken over Syria, guiding the nation’s military operations and functions of government, as the Lebanese resistance group’s fighters have begun to flood into the Damascus area, reveals a well-placed source in the Syrian capital.

To make a “long version really short, Syria no longer exists,” the source told WND.

The government of Syria and the running of the Syrian military are no longer are under the command of the Syrians, he explained.

“Lebanon also is no more,” the source added. Like Syria, “it’s now in the sphere of Iran and Hezbollah” who “run everything now.”

The knowledgeable and well-situated source was referring to ongoing military operations against Syrian opposition forces. Rebel ranks have been infiltrated by Sunni al-Qaida-linked militants, including the al-Nusra Front, which sources say is affiliated with a similar group from Lebanon called Ansar Bayt al-Maqdis.

Because of direct Hezbollah involvement in fighting against anti-Syrian government fighters, militants have threatened to attack Hezbollah strongholds in Lebanon, a prospect that could quickly spread the sectarian Sunni-Shia fighting inside Lebanon.

Pitched battles already are taking place in the northern Lebanese city of Tripoli, a Sunni stronghold. Sunni opposition forces have been engaging Hezbollah fighters who have aligned themselves with Shiites and Shiite Alawites in the region.

The issue of Iranian and Hezbollah control over military operations and government functions in Syria comes as separate reports reveal they have moved a 50,000-strong force into Syria to fight alongside Syrian government troops.

Sources say there are plans to increase that number to some 100,000 Hezbollah fighters.

“The Hezbollah guys are here (in Damascus), not near Maroun el Ras,” one source said, referring to the influx of Hezbollah fighters into Syria.

The Meaning And Consequences Of Israel's Apology To Turkey

US President Barack Obama was on the line when Israeli Prime Minister Benjamin Netanyahu called Turkish Prime Minister Recep Tayyip Erdogan to apologize for the deaths of nine Turkish protesters aboard the Turkish ship Mavi Marmara on May 31, 2010.

For those who don’t remember, the Mavi Marmara was a Turkish ship that set sail in a bid to break Israel’s lawful maritime blockade of Hamas-controlled Gaza’s coastline. When Israeli naval commandos boarded the ship to interdict it, passengers on deck attacked them – in breach of international maritime law. Soldiers were stabbed, bludgeoned and thrown overboard. In a misguided attempt to show the good faith of Israeli actions, the naval commandos were sent aboard the ship armed with paintball guns. As a consequence, the soldiers were hard-pressed to defend themselves. In the hand-to-hand combat that ensued, nine of the Turkish attackers were killed.

By forcing Israel to apologize to Turkey, Obama effectively forced Israel to acknowledge that it is in the wrong for lawful actions by its military taken in defense of international law and of Israel’s national security. That is, Obama sided with the aggressor – Turkey – over the victim – Israel. And in so doing, he signaled, deliberately or inadvertently, to the rest of Israel’s neighbors that the US is no longer siding with Israel in regional disputes. As a consequence, they now feel that it is reasonable for them to press their advantage and demand further Israeli apologies for daring to defend itself from their aggression.

Whether or not Obama meant to send this message, this is a direct consequence of his visit. Now Israel needs to consider its options for moving forward. For Israel’s allies in Congress, it is important to take a strong position on the issue. Members of Congress and Senate would do well to pass resolutions stating their conviction that Israel, while within its own rights to apologize, operated with reasonable force and wholly in accordance with international law in its interdiction of the Mavi Marmara, which was on an illegal voyage to provide aid and comfort for an internationally recognized terrorist organization in contravention of binding UN Security Council resolution 1379 from September 2001, which prohibits the proffering of such aid. Congress should enjoin the administration to issue a declaration noting US support for Israel in its actions to defend itself from aggression in all forms, including from Hamas-controlled Gaza.

Second, Israel should scale back the level of military assistance it receives from the US. While Obama was in Israel, he pledged to expand US military assistance to Israel in the coming years. By unilaterally scaling back US assistance and developing its domestic military industries, Israel would send a strong signal to its neighbors that it is not completely dependent on the US and as a consequence, the level of US support for Israel does not determine Israel’s capacity to continue to defend itself.

On a wider level, it is important for Israel to develop the means to end its dependency on the US. Under Obama, despite the support of the great majority of the public, the US has become an undependable ally to Israel, and indeed to the rest of the US’s allies as well. The more quickly Israel can minimize its dependence, the better it will be for Israel, for the US and for the stability of the region. The apology to Turkey was a strategic error. To minimize its consequences, Israel must boldly assert its interests in Syria, Iran, and throughout the region.