Real Wealth #323 01/03/2013
United States Facing Debt Ceiling Meltdown!
Make sure you have core holdings in gold and silver. The danger has never been greater.
I’m thrilled that we’ve temporarily put off any ill effects from the Fiscal Cliff nightmare. By no means is the compromise a long term solution to all the problems I outlined in my December 18th monthly issue of Gold and Energy Advisor. The risks and dangers both domestic and foreign to the world economy are still enormous.
Right now the financial news media, is in a tizzy over the Sequestration re-scheduled for February and the risk of the GOP not raising the debt ceiling. No matter how much drama we are subjected to I am hopeful that Congress will raise the debt ceiling. Failing to do so will mean a double dip recession, chaos in the financial markets worldwide and could well set in motion a domino effect that unravels the Euro.
The danger of not raising the debt ceiling cannot be minimized. The sheer threat of our nation not paying its debts will cause the financial and commodity markets to swing wildly up and down. We could very well see the stock market plunge 1000 even 2000 points over the last few days before the deadline.
I have moved my 401K Funds to cash position. My company's 401K plan managed by ADP does not offer a gold or precious metals alternative. While I believe there will be enough GOP and DEM votes to raise the debt ceiling – no one can be sure at this point. The rhetoric so far remains dangerously out of touch with the danger.
While many of you may not be fans of President Obama, I believe that he is right on one thing The bills must be paid and the debt ceiling should never be used as leverage for ANY legislation. Bottom line: Congress should not threaten the good faith and credit of the United States.
If necessary, even though the President Obama ruled it out the last time the debt ceiling battle took place, I believe its in the best interest of the country for him to invoke the 14th Amendment. Yes, it may get challenged in court and could lead to Supreme Court confrontation. It could also lead to impeachment, although putting any President on trial for paying the bills would be political suicide for the Republican party.
While the debt ceiling crisis is extremely important and could well send gold over $2,000 and ounce at light speed. There are myriad of other crises still brewing around the world. While the Euro crisis is far from over and the revolution in Syria is a potential flash point. Iran deserves every investors attention especially now...
IRAN’s Nuclear Enriching Plant LEAKING!
I have been beating the drum about for the past 5+ years – Iran’s nuclear weapons program but even I never considered the other dangers Iran's nuclear weapons program presents. I never considered the massive environmental danger.
The fact is money is getting so tight in Iran, the nations' ability to maintain all the safety protocols needed to run a nuclear power plant much less a sophisticated nuclear enrichment weapons program – is now very clear.
The brutal economic sanctions has made Iran an economic basket case. Soaring unemployment, rationing, shortages of even the basic necessities of life have been compounded by a collapsing currency and Teheran's attempt to resupply Syria’s Assad’s desperate attempt to hold on to power.
The economic strain may well have lead to a serious accident at Iran's nuclear enrichment plant. Although, it is possible that the accident may have been the result of an Israeli or U.S. covert operation designed to stall Teheran's nuclear weapons ambitions. Either way...
Mass Evacuation of 1.5 Million Ordered!
Reports are leaking out of Iran that Iran’s government is ordering an evacuation of the city of Isfahan which is very close to the Soviet-built nuclear power plant. According to the BBC, an edict issued Wednesday by Iranian authorities orders Isfahan’s one-and-a-half million people to evacuate the city “because pollution has now reached emergency levels”.
Experts in these matters are warning that the evacuation order may corroborate previous reports that a uranium enrichment facility near Isfahan had been leaking radioactive material.
The first reports of this nuclear crisis was denied by Tehran over and over again in December via its state controlled media saying “the rumors about leaking and contamination at Isfahan’s [Uranium Enriching Facility] are not true at all.”
It’s believed that the nuclear enriching plant converts highly toxic yellow cake uranium into material that can be used to build the core of a nuclear bomb.
The evacuation order is now fueling concerns that Iranian officials have been and are now trying to cover up what could be a nuclear nightmare which would include fallout from a radioactive leak or worse.
The Iranian government has been closing schools trying to keep people at home and let the nuclear threat dissipate, but is now evacuating everyone.
Radiation fallout in Isfahan has been a problem since the opening of the nuclear enriching plant nearby.
The BBC quotes one expert Michael Rubin, a former Pentagon adviser on Iran and Iraq who has written and warned about the danger the city of Isfahan has been facing.
“Mass evacuations suggest a far more serious problem,” Rubin explained. “There are two possibilities here: There is a radiation leak and the regime is lying or there is really bad pollution and no one believes the regime’s explanations.”
Keep in mind that Iran has not allowed Western Officials tasked to inspect the technology being used in the enriching plant. So safety could be and probably is an enormous issue.
The nuclear processing plant at Isfahan has been targeted for attack in the past. For example, an unexplained explosion at the plant in 2011 was widely believed by intelligence experts to have reportedly damaged the facility.
Making the situation even more dangerous:
The nuclear enriching plant also sits on an active fault line!
Unbelievably the city of Isfahan has been destroyed at least six times from past earthquakes, making the danger of a horrifying event into a matter of time before it happens, not a question of if it will happen.
“Given that Iran is on an earthquake zone and has lost tens of thousands of people with regularity suggests that a devastating nuclear accident is only a matter of time,” said Rubin.
I would not be surprised to see both Syria and Iran’s governments fall in 2013. The danger of the nuclear fallout nightmare fueling another Persian spring revolt en mass must be of great concern to the Theocracy in power in Iran. Evacuating 1.5 million people is more than a spark; it could well be a flash point considering the economic distress Iran is dealing with. Here’s the key question:
If Iran’s government is faced with a much greater protest than experienced in 2011, is the Theocracy willing to murder 100,000, 200,000 or even a million protesters?
Editor Gold and Energy Advisor
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