USA Watchdog | August 31 2012
There’s a new U.N. report out that claims Iran has doubled its number of uranium enrichment machines. This does not bode well for diplomacy in settling the standoff over Iran’s nuclear program which is largely being done in heavily fortified underground bunkers. The Obama administration has said once again, this week, diplomatic options will not remain open“indefinitely.” On the other side of the Middle East, there are reports that Russia is backing out of Syria. If this is true, then look for the conflict to get much more heated as the rebels and the West try to finish off the Assad regime.
The big news at the GOP convention is not Romney or Ryan but the talk of gold and the fiscal cliff. It looks like the Republicans are not backing down on cutting taxes. The Democrats are just as adamant on raising taxes, and this standoff is spooking some on Wall Street. There is also not much talk about the GOP and a Fed audit and talk of some sort of gold standard. I think many see the dollar’s reserve currency status slipping away and are going to be forced into some sort of gold weighting for the buck to preserve that status.
The Fed met this week in Jackson Hole Wyoming, and many are expecting a big announcement. I don’t think so, at least, not just yet. The FDIC just announced bank earnings were up for the quarter to $34 billion. The housing market had its first year-over-year gain since 2010. Lots of folks are seeing the Fed on hold— at least, for now. Eventually, they will print more money and they will do that when we have another calamity.
Could war in the Middle East cause the Fed to print? Could a big bank failure cause them to print? Could another EU meltdown with Spanish or Italian bonds cause it to unleash the money flood gates? The answer to all is yes, yes and yes. And also out, this week, is a new report that shows the 50 states are in the red by nearly $4.2 trillion. Illinois had its debt rating cut, and many other stats are also in bad shape. Will the states cut spending, raise taxes or both?
Finally, there’s good news and bad news for Hurricane Isaac. The bad news is 25 inches of rain, massive flooding and half of Louisiana lost power. The good news–the storm is going to make its way into the Midwest and help with some of the drought ravaged crops. It’s too late for the corn, but soybeans and other crops are going to be helped out by the rainfall, and that is good news indeed! Greg Hunter gives his analysis on these stories and more in the Weekly News Wrap-Up.