USA Watchdog | July 13 2012
It looks like things are continuing to heat up in the Middle East. Last week, there was news that the U.S. was sending more military assets to the Persian Gulf. This week, the buildup continues with news the U.S. is sending underwater drones to combat possible Iranian mines and their drones. Meanwhile, in Syria, the Russians are reportedly sending a flotilla of 11 warships to the Syrian coast for maneuvers. NATO already has ships on the Syrian coast, and surveillance flights by the alliance are increasing in the region. This is not how you set the table for peace in the Middle East, even though the U.N. is attempting to put the East and West together to find a peaceful solution.
The Libor rate rigging scandal appears to be the biggest financial fraud in history. Barclays bank paid a $450 million fine last week to regulators, but more than a dozen international banks, and even the U.S. and UK governments, are implicated. $800 trillion in commerce is based on this key rate. Avalanches of lawsuits are reportedly on the way. Another brokerage firm has gone bust (PFGBest), and around $200 million of customer money is missing. The FBI is investigating, but where is the FBI investigation into MF Global? It went bust on Halloween of last year! Former New Jersey Governor and Goldman Sachs CEO Jon Corzine ran the brokerage where $1.6 billion of customer money vanished. What gives?
Another California city has filed for bankruptcy. San Bernardino is the third city in a month to do so in the Golden State. What did banking analyst Meredith Whitney say two years ago? There were 50 to 100 major municipal bond failures coming. It’s looking more and more like she was early but on target. Many more cities are reportedly in financial trouble across the nation. The Federal Reserve is worried about the economy. That was the news that broke this week when minutes of the Fed’s June meeting were released. Where’s the recovery? Now, many analysts say if the Fed prints money to boost the economy, gold is heading higher. One analyst at Merrill Lynch says it should hit $2,000 an ounce sometime next year. Greg Hunter gives his analysis of these stories and more in the Weekly News Wrap-Up.