USA Watchdog | August 3 2012

Iran’s supreme leader, Ayatollah Ali Khamenei, said to his top generals, “We’ll be at war within weeks.”  The quote and story comes from Debka.com, a credible source.  Meanwhile, this week, Israeli Prime Minister Benjamin Netanyahu reportedly told U.S. Secretary of Defense Leon Panetta that sanctions are not working, and time is running out to stop Iran’s nuclear program.  Iran has repeatedly said it is for the peaceful production of energy.  This week, Panetta was in Israel for a visit and wants the Israelis to be patient.  Leadership there has repeated its stance that it has the right to defend itself.  Mind you, the U.S. military has announced a new 30,000 pound bunker buster is now operational and available for use.  It can penetrate 60 feet of reinforced concrete.  If Iran is attacked, all hell is going to break loose, and I think that will mark the beginning of World War III.

Also revealed this week, President Obama signed a secret order helping the Syrian rebels earlier this year.  Many sources have reported this, and now it is official.  The White House says it is not providing weapons.  The Russians and other news sources say the U.S. is providing weapons through back channels.

The Federal Reserve had a pretty gloomy picture of the economy this week, but it is still not offering any new stimulus.  Remember, they already have interest rates at near zero percent and those dollar swaps in Europe are probably working overtime.  Jim Sinclair says the longer the Fed waits, the bigger the response will have to be.  It might come all of a sudden instead of a planned and orchestrated event, like a reaction to a systemic collapse–but who knows.

Finally, it looks like another big brokerage is in financial trouble.  Knight Capital suffered a gigantic trading loss because of computerized high speed trading that went haywire.  Knight’s stock lost 80% of its values in just two days.  Are they going to end up like MF Global and PFG Best—bankrupt?  Who knows, but this is beginning to look like a trend, and it is not pretty for small investors.  Greg Hunter gives his analysis on these stories and more in the Weekly News Wrap-Up.