Unrest continues in Middle East/silver prices exceeds $36.00

Harvey Organ   March 7 2011

Unrest continues in Middle East/silver prices exceeds $36.00

 

Charles Biderman On How The Fed Continues To Rig The Market And Why There Will Be A QE 3...And 4

Submitted by Tyler Durden on 03/07/2011 19:06 -0500

The last time Charles Biderman appeared on CNBC, he was carted onstage (and promptly off) in the late hours before Christmas Eve, when it was virtually assured nobody would hear the self-evident truths out of his mouth such as this one: "individuals have been selling, companies are net selling, insider selling and new offerings are swamping any buyback and any cash M&A activity since QE 2 was announced. Pension funds and hedge funds don't really have that much cash to invest. So what nobody's asking is what happens when QE 2 stops: if the only buyer is the Fed, and the Fed stops buying, I don't know what is going to happen...When I was on your show a year ago I was saying the same thing: we can't figure out who is doing the buying it has to be the government, and people said I was nuts. Now the government is admitting it is rigging the market." Now that the great muni scare forced retail to take proceeds from muni liquidations and invest in stocks just as the market topped out, CNBC brought Biderman on again, hoping to get something, anything, bullish out of the flow of funds expert. Wrong. "In December of 2009 received a lot of ridicule for saying that the Fed is rigging the market which as everybody is well aware." As for the "sustainable economic recovery" i.e., what happens to Quantitative Easing: "They probably will end for a while, we think there is going to be a QE3 and 4, or until the market says: "No Mas - we are not going to believe this game the Fed is playing... The Fed is printing over $100 billion a month to buy other assets and pay bills, and economic growth is picking up at a $200 billion annual rate. This is very inefficient method of boosting the economy, and then how do we repay these trillions that have been created out of thing air in the future." At which point the producer "screams get him off my show."

Fragile Consumer Credit Recovery Fizzles As Government Is Responsible For $25 Billion Of $5 Billion Increase, Revolving Credit Drops

 

Update: Rebels Reject Offer; Latest Libya Development: Gaddafi Offers Rebels To Hold People's Congress To Let Him Step Down With Guarantees

 

In The News Today

Posted: Mar 07 2011     By: Jim Sinclair      Post Edited: March 7, 2011 at 4:11 pm
Filed under: In The News

Jim Sinclair’s Commentary
You think the West might be meddling in this situation?

UK: Misunderstanding stymied SAS mission to Libya By DAVID STRINGER, Associated Press David Stringer, Associated Press – 2 hrs 53 mins ago
LONDON – Britain is blaming a misunderstanding for a bungled mission to contact Libya’s opposition that ended with eight people detained and the U.K. ambassador’s humbling apology broadcast on Libyan state television.
Foreign Secretary William Hague — who authorized the operation — told lawmakers the diplomatic team and their military escorts had been briefly held by rebel forces after they were seized last week.
"They were withdrawn yesterday after a serious misunderstanding about their role leading to their temporary detention," Hague told legislators Monday in Parliament.
The team included SAS special forces soldiers and diplomatic officials. Hague’s ministry would not confirm whether the officials sent to forge links with anti-Gadhafi forces were intelligence officers or diplomats.
Hague said the group had met with Mustafa Abdel Jalil, a former justice minister and now head of the National Libyan Council — the political wing of anti-Gadhafi groups.
He said opposition figures had "welcomed the idea" of establishing diplomatic ties, and confirmed other officials will be sent to eastern Libya to cement relations. Hague said Britain also continues to have contact with members of Libyan leader Moammar Gadhafi’s regime.
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Jim Sinclair’s Commentary
The development in the Mid East has ramifications that can substantiate Alf Field’s price objective far above mine.

Saudi Oil Production and Reserves – Reasons Behind Wikileaks Concerns Posted by Gail the Actuary on February 9, 2011 – 11:54am
The UK Guardian published an article yesterday titled WikiLeaks cables: Saudi Arabia cannot pump enough oil to keep a lid on prices, talking about the possibility that as soon as 2012, world oil production may begin to decline because of "peak oil". Saudi Arabia may not be able to raise production as much as claimed, and its reserves may be overstated by 40%. Leanan has put together a post with more about the cables. The Wikileak cables can be found here or here. In this post, we provide a few graphs, plus some links to (and excerpts from) prior posts by Oil Drum staff members about Saudi Arabia’s true situation.
Saudi Arabia tells us that they have lots of oil, but if we look at graphs of their historical production, there is nothing that looks like an upward trend. In fact, recent production is lower than it was in the late 1970s and early 1980s. This is a graph of Saudi oil production, consumption, and amount of net exports, from Energy Exports Databrowser.
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Jim Sinclair’s Commentary
World changing events are taking place in the oil rich Middle East.
Peak oil has passed. The economic dominance of the West is now history.
Those that have planned and organized the Middle East events are those that benefit here and there from chaos and $500 crude.

Saudi Arabia drafts another 10,000 troops ahead of protests
Saudi Arabia is drafting in up to 10,000 security forces to the north eastern Muslim Shia provinces ahead of mass protests planned next week. 12:37AM GMT 05 Mar 2011 

Desperate to avoid mass uprisings against the House of Saud, security forces have deployed in huge numbers across the region.
King Abdullah is also reported to have told neighbouring Bahrain that if they do not put down their own ongoing Shia revolt, his own forces will.
In response to the massive mobilisation, protesters are planning to place women on the front ranks to discourage Saudi forces from firing on them.
In Yemen, President Ali Abdullah Saleh set off a deadly battle for survival last night as he rejected an opposition peace proposal and ordered troops to fire on demonstrators, killing four. Efforts to suppress demonstrations by the key ally in the “war on terror” could jeopardise rising volumes of Western aid flooding into the country, diplomats warned.
President Saleh rejected an opposition proposal that would have brought demonstrations to a standstill in return for a promise to step down by the end of the year. Yemeni troops used rockets and machineguns to attack demonstrators in the north of the country, killing four and injuring nine.
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Spiking Oil, Plunging Economy

Posted: Mar 07 2011     By: Greg Hunter      Post Edited: March 7, 2011 at 3:10 pm
Filed under: USAWatchdog.com
By Greg Hunter’s USAWatchdog.com

Dear CIGAs,

This weekend, violence continued to erupt in the Middle East.   In Libya, the Gaddafi government launched counter attacks against the rebels.  Many fear there is a full blown civil war brewing in that oil rich country.
Yemeni loyalists also staged counterattacks against anti-government protesters in hopes of dispersing them.  They used sticks and stones, but still, 25 people were reported injured. All is not quiet in Egypt this weekend as the peaceful revolution there turned violent.  Reuters is reporting, “Men in plain clothes armed with swords and petrol bombs attacked protesters in Cairo on Sunday night during a demonstration demanding reform of security services with a reputation for brutality, witnesses said.” (Click here for the complete Reuters story.)
Even Saudi Arabia, the world’s biggest oil producer, is seeing protests gain momentum.  Officials are so worried, the security forces rounded up and detained nearly two dozen protesters in an effort to quell even the hint of revolution, but it may be too late.  Reuters reported yesterday, “More than 17,000 people backed a call on Facebook to hold two demonstrations in Saudi Arabia this month, the first one on Friday. A loose alliance of liberals, moderate Islamists and Shi’ites has petitioned King Abdullah to allow elections in the kingdom.” Keep in mind, public dissent is frowned upon in that part of the world.  (Click here to read the complete Reuters story.)
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