The Peanut Gallery

Statements, comments and forecasts that have no substance, but just might turn out to be relevant.


1. Six months ago President Obama called for Hosni Mubarak to go, and so began the CNN inspired "Arab Spring". This week large forces of the Egyptian army entered Sinai with Israeli approval. And why, one may inquire? Apparently the Sinai has turned into a major training ground for Al Qaeda and Hamas insurgency. The majority of Egyptians support the Muslim Brotherhood, while clearly the military have no intention of handing over power to anyone. Meanwhile Mubarak, terminally ill with cancer is placed on trial in a cage in Cairo. 


2.The attack from Sinai by Palestinian terrorists on an Israeli civilian bus was perpetrated by an organization out of Gaza by name PLC. These guys are sponsored by Iran who are trying to divert attention from the Syrian civil war by creating a crisis between Israel and Egypt. The Iranian sponsored terror groups in Gaza apparently have more missiles in their possession than Hamas. So despite the quickly organised Hamas ceasefire (the Egyptians understand what the Iranians are up to), expect the spattering of missiles to continue. 


3.Hillary Clinton is tooting her horn on the impending fall of Gaddafi in Libya. This will be heralded as a foreign policy "success" by the administration.....for about three days. Then the penny will drop. Gaddafi will be replaced by another lunatic supported by different tribes, and the instability will continue. Even if Gaddafi falls, beware of his sons and followers. Family honour has to be addressed. To all those professors and intellectuals who consider this to be a renewal of the arab spring, the peanut gallery wishes them success. So long as it does not cost the American taxpayer......


4.A senior US military officer says Iranian-backed militias present the most dangerous security threat for Iraq, outpacing al-Qaeda-linked terrorists there. Maj. Gen. Jeffrey S. Buchanan, the senior US military spokesman in Iraq, says the Shiite militias are working to keep the Baghdad government weak and isolated. He says decisions on the number and types of attacks by the militias are made inside Iran, including through ties with the powerful Quds force. The US will be withdrawing at years end. Get ready for the mother of confrontations. What a waste of money!


5.The civil wars in Yemen and Syria continue. In both countries, the army is in charge. In fact, right across the arab world, armies and dictators are in control. Whatever happened to the social revolution? The one inspired by the western media, facebook and twitter?


6.Obama, citizen of the world, still insists on calling for for the evil, nasty arab leaders to go. Regardless of the outcome, the PG does not see any real change on the ground. Arab citizens, starved of happiness, are taking the opportunity to have a spontaneous celebration, then, after waking up with a massive hangover they find that the world still looks the same. Americans might remember the "change" that was coming to Washington.... 


7.GE are moving their x-ray division to China. GE also signed a joint venture with China to build planes. The Chinese don't have the technology. According to the NY Times GE earned $14.2 billion dollars last year and thanks to some fancy accounting footwork, did not pay a cent in taxes. Okay, so why is the PG mentioning all this? Hold onto your hats folks....GE chief executive officer Jeffrey Immelt, heads up the President's (Obama) Council on Jobs and Competitiveness. Tapping Immelt was supposed to provide the Obama administration with a business world perspective on job creation - not in China - in the US!


8.Bolstered by the development of a new stealth fighter, an aircraft carrier and a record number of space launches over the past year, China is on pace to achieve its goal of building a modern, regionally focused military by 2020, according to the Pentagon. In a report released Wednesday, the Pentagon said Beijing has closed critical technological gaps and is rapidly modernising its military equipment, all with an eye toward preventing possible U.S. and allied intervention in a conflict with Taiwan. PG: We wonder who's giving them a hand....

9.World markets are still volatile and will probably continue the volatility as uncertainty grips the financial world. One of the big questions on everyone's mind is "will there be a recession and if so, how deep?" One indicator is the price of copper (Dr Copper) which is pretty stable around the $4 mark at the moment, Indicating the possibility of a soft landing. A fall in the price of this metal would indicate at the least, a slowdown. 


10.The earthquake that rattled a wide swath of the eastern U.S. this week may have been a blessing in disguise for a 75-year-old who regained his hearing after the 5.8-magnitude tremor hit. Robert Valderzak, of Washington, D.C., lost his hearing in a fall on June 19 -- Father's Day. Since then the cancer patient has been at the Virginia Medical Center using a special speaker phone and an audio device system to communicate. The earthquake rocked the region at 1:51p.m. local time. When it was over, Valderzak, who had sat in silence for two months, sat up in his bed and told his kids, "My hearing is back. I can hear everything, people in the hallway." 


There are things known and there are things unknown, and in between are the doors - Jim Morrison

The Peanut Gallery

Statements, comments and forecasts that have no substance, but just might turn out to be relevant.

1.Saudi Arabia's King Abdullah demanded an end to the bloodshed in Syria on Monday and recalled his country's ambassador from Damascus, in a rare case of one of the Arab world's most powerful leaders intervening against another. It was the sharpest criticism the oil giant — an absolute monarchy that bans political opposition — has directed against any Arab state.  PG:What a crowd of hypocrites. It is a badly kept secret that Saudi Arabia is behind the rioting in Syria as they try to break the Iranian strangle hold on the Iran-Syria-Hizbullah axis. Note that all the Saudi allies in the Persian Gulf have joined the Saudi's as the Sunni-Shiite split grows. Suits Israel

2.US-based financial rating giant Standard & Poor's announced on Monday that it was leaving Israel's credit rating at "A" along with a solid rating forecast. S&P did, however, downgrade Israel's US securities-backed credit rating to AA+, in accordance with its latest historic downgrade of the United States' credit rating.

3.Libya—As layers of intrigue and mystery have accumulated in the days since last week's murder of the Libyan rebels' top military commander, one point has come into clearer focus: The rebels' nascent government appears to be in disarray and factionalized, struggling to prove its democratic bona fides as it responds to its first major internal crisis. PG:This is the Libyan way. In a democracy, we vote and in Libya, the quickest way to the top is to simply shoot first.

4.Central banks have bought more gold in the first half of this year than in all of 2010 as a long-anticipated reversal in so-called "official sector" sales gathers pace, a gold group reported on Thursday. Mexico has led the charge this year in ramping up its gold reserves, buying over $4 billion of bullion in early May, while the International Monetary Fund has ended a one-year effort to sell down its stocks at the end of last year.

PG COMMENT: These geniuses sold most of their gold holdings at $400-$500 an ounce.

5.WSJ: General Electric Co. said it is moving its X-ray business headquarters to China to accelerate sales in the country's fast-growing health-care market, the latest sign of China's growing importance to the giant U.S. conglomerate. GE Healthcare, known largely for its diagnostic equipment such as CT scans and magnetic-resonance-imaging machines, has been increasingly focused on growth in emerging markets such as China, where governments are spending to beef up medical care.

PG COMMENT: Really? The real reason behind the move....A stable supply of rare earth elements, of which China controls 95% of world supply. These elements are essential to the manufacture of x-ray, scanning and imaging machines. Also the same reason General Motors moved its magnetics division to China.

6.SHANGHAI—China's yuan hit a fresh high against the dollar late Friday after the central bank guided its currency upward for the third straight day, marking the yuan's biggest weekly rise since it was essentially unpegged from the greenback last year. The yuan has risen 3.1% against the U.S. currency this year and 6.8% since June 2010, when China effectively ended its currency's peg to the dollar. PG: The move is part of a long term Chinese strategy to replace the USD as the world's reserve currency.

7.Republican Gov. Rick Perry of Texas intends to run for president, his spokesman confirmed Thursday afternoon, signaling a new addition to the contest for the GOP nomination that is sure to recast the race. PG: A definite candidate for president, and together with Jon Huntsman the only GOP candidates capable of running the country.

8.JOHNS CREEK, Georgia (Reuters) - Tiger Woods offered a tantalizing glimpse of his old self at the PGA Championship on Thursday before the erratic play that has dogged him through the past, winless, two years returned to wreck his opening round. PG: How the mighty hath fallen. Its quite the tragedy. We hope he discovers the strength to find himself. Golf without a firing Tiger is pretty colourless.

9.POQUOSON, Va. — A 9-year-old boy who left his wallet containing hundreds of dollars at a Virginia convenience store got it back after he posted a handwritten letter. The boy, identified only as Charlie, says he left the wallet on the counter while he was getting a drink. The boy's letter which contained his photo was posted on the store's front door. It said the wallet contained more than $300 the boy had saved, along with gift cards he got for his birthday. The letter ended with, "I hope whoever has it needed it more than me." Store manager Marvin Ward declined to give further details on the woman who returned the wallet.

10. Is Obama Smart? An article by Brett Stephens in the WSJ makes for interesting reading.  http://online.wsj.com/article/SB10001424053111904140604576495932704234052.html?mod=WSJ_hp_mostpop_read&mg=com-wsj

11.And to compound this opinion... Richard Cohen of the Washington Post: "He is the very personification of cognitive dissonance—the gap between what we (especially liberals) expected of the first serious African American presidential candidate and the man he in fact is." More amazingly yet Mr. Cohen goes on to say of Mr. Obama, who not long ago was almost universally hailed as the greatest orator since Pericles, that he lacks even "the rhetorical qualities of the old-time black politicians." And to compound the amazement, Mr. Cohen tells us that he cannot even "recall a soaring passage from a speech."

Loyalty to a petrified opinion never yet broke a chain or freed a human soul - Mark Twain

The Downgrade

The Inconvenient truth congratulates S and P on the downgrade of US credit to AA+. Probably the best thing that ever happened to this great country! How do we know that this is an excellent step? Just listen to the bleating coming out of Washington. Especially from White House "officials" and "sources". Finally somebody has given the establishment a wake up call. Ironically, the call has come from the same agency who, quite frankly, played a major part in creating this crisis in the first place.

We repeat and will continue to repeat. The White House is handling the economic crisis as if it is a facilitating tool in Obama's re-election, cheered on by CNN. Well, sorry to disillusion these folks. The situation is not about politics or elections or the Obama legacy. This is about our children. About future generations and about continued freedom and democracy. Let us not fool ourselves. The alternatives to a weakened US are not pleasant to contemplate. As for the "surprised" looks? S&P warned in April that they expect a cut of at least 4 trillion. The only surprise is that someone actually did what they said they would do. Something quite foreign to The Washington establishment.

If anyone was under the illusion that there exists a painless solution. Well, that illusion has now been ruthlessly expelled by the markets. As for the different political groups either claiming victory or pointing fingers, your political days are numbered folks. Pelosi and the Tea Party...nobody won. America lost. A black and white solution does not exist. S&P basically laid it out. Entitlements need to be cut and tax reform needs to be enacted. A balanced approach. The only missing ingredient is leadership. Voices in the background echoing "that's what Obama said....". That's right, he said it...and we repeat... The only missing ingredient is leadership.

As for the markets, it is doubtful that anybody will argue with the the now obvious fact that gold is the only honest currency. The US treasury continues to state that US treasuries are the gold standard. Actually, gentlemen, gold is the gold standard and if somebody had adhered to it over the last 40 years, we would not be having this crisis today. If the stock market continues downwards today, it will not be because of the downgrade. The downgrade is only a symptom, not the disease.This market had been crashing a while before the downgrade was announced. Probably because the business community took one look at the lack of leadership and the pathetic debt deal, realised that another crisis had been mismanaged and voted with their feet.

From a pure economic point of view, the downgrade should be the start of a more sane attitude to the debt and the deficit. If the president does not understand, that from this point on he has to lead from the front and not point a finger at all and sundry. That the source of the problem is the economy and jobs, not Libya, Afghanistan or his untimely health plan. That his election for a 2nd term is less important than the long term future of the American people, and that US influence has been considerably weakened as a result of mismanagement. Well then, expect more of the same turmoil we have seen thus far. The downgrade presents a clearing of the air. The possibility of a fresh attitude to economic challenges and an opportunity to learn from past mistakes and to begin the preparation of a platform that will allow our children a decent opportunity to build upon for a brighter future. The markets will be our gauge.

Don't expect anything original from an echo - Dunc Muncy

Take out your brain and jump on it - it gets all caked up - Mark Twain

Obama, the Markets and the Cookie Jar

So now it is two and a half years later. President Obama can no longer hide behind the Bush legacy, a great smile and an excellent turn of tongue. Anybody remember the optimism that greeted his election? The time has come to speak clearly and truthfully. Maybe the American people distinguish between Democrats and Republicans, but for the record, history will only remember who was president at the time. To be fair, the man inherited a woeful situation which he then proceeded to aggravate even further. Hindsight is 20 20. However, The Inconvenient Truth has been pointing out his mistaken priorities, since inception.

1.The president's first act after inauguration was to promote his healthcare plan. MISTAKE. An expensive plan promoted by a left leaning, clearly wet behind the ears president, in the middle of an economic crisis. These types of plans, generally are promoted during an expansion of the economic cycle. What he should have been concentrating on, was job creation.

2.Still floating on a bubble of euphoria, confident that the oratorial prowess and big smile that brought him to power in the US would work for him in other arenas, he reaches out to the muslim world, extending a hand of friendship. MISTAKE. At a cost of sounding repetitive, shaking hands with a crocodile. Masterful speeches in Cairo and Indonesia. Bowing to the Saudi king in a show of "respect". CNN applauds.

3.Overpopulation, rising commodity and food prices (caused by a sinking dollar and QE), create economic pandemonium in Tunisia and Egypt. Quick as a flash, and sensing possible history in the making, he sacrifices old friend Mubarak on National TV. MISTAKE. (Arguably his biggest foreign policy faux pax). After all arrogant left wing intellectualism dictates "the people...the people..." So now "the people" have a sick and dying man on trial in a cage in Cairo. Imagine, Mr. president if you had supported Mubarak and pushed for peaceful change in Egypt? Clearly Mubarak understood the nature of the beast. The cage confirms it. The attack on Lara Logan by "peaceful" demonstrators, should have tipped you off. How does watching all this make you feel?

4.The "arab spring" sets off a horrific chain of events in the area, all violent. Civil wars erupt in Yemen, Syria, Bahrein and Libya. Once again, Obama decides to save the "people" of libya. MISTAKE. Two expensive wars are not enough. Clearly oblivious of the economic problems bubbling at home, he orders an attack on Gaddafi. After all, whats a few billion in this sea of debt? The next generation can pay it off.

5.Priorities. The Obama priority was the mission in Afganisthan, as opposed to Iraq. MISTAKE. A tripling of the forces in Afghanistan cost a fortune, and to what end? What is the strategic significance of Afghanistan? The Iranians are licking their lips at the planned American withdrawal from Iraq at the end of the year. With a Shia majority in Iraq, this leaves Iran holding all the cards in this country that strategically borders the Persian Gulf .

6. Of course, nothing would be complete without mentioning Israel. The Obama plan for Israel is based on the mistaken theory that the settlements are the core of the problem. MISTAKE. In light of events now taking place in the area, no need to comment on the stupidity of this policy. There is no cure for stupid. 

7.For a full two years , the man had complete control of both houses. He was lord of the jungle. Did he begin the process of balancing the budget? MISTAKE. QE 1 and QE 2 increased the debt by over 2 trillion in two years. The Republicans conquered congress last November in a devasting defeat for Obama. Apparently unaware of the bubbling economic chaos and/or misreading the approaching political gridlock, he tries to find middle ground in a pathetic attempt to appease the right. MISTAKE. Its not about his place in history, his legacy, his ideology, his re-election or whose to blame. Its the economy old chap! Its about the American people and the next generation. But not to worry Barack, if plan A fails there are still another 25 letters.....

8.The markets are now speaking out loud and clear. The debt deal is what broke the camel's back. The last straw in the mismanagement of this great country. A mismanagement that began decades ago when the administration of the time  cancelled the gold standard and placed a bucket of milk in front of the fat cat politicians. The markets will do what Obama and his predecessors clearly have not. You can take that to the bank!

Please read Dear Mr. President.... http://inctruth.blogspot.com/2011/02/dear-mr-president.html

Also please read Obama in La La Land http://inctruth.blogspot.com/2010/11/obama-in-la-la-land.html

And as for gold...There is no rush like a gold rush http://inctruth.blogspot.com/2010/10/there-is-no-rush-like-gold-rush_07.html

There is always one unexpected moment when the door opens and lets the future in - Graham Greene


Its not whether you win or lose, but how you place the blame - Anonymous politician

The Peanut Gallery

Statements, comments and forecasts that have no substance, but just might turn out to be relevant.

1.Ibrahim Qashoush's lyrics moved thousands of protesters in Syria who sang his jaunty verses at rallies, telling President Bashar Assad, "Time to leave." So when his body was dumped in the river flowing through his hometown, his killers added an obvious message: His throat was carved out. Qashoush's slaying underlines how brutal Syria's turmoil has become as authorities try to crush a persistent uprising. The PG continues to insist that Syria is in the throes of a civil war. Expect more death and chaos as the Saudis attempt to break the Syria-Iran coalition.

2.An exclusive Newsweek/Daily Beast poll of Egyptian voters portends Muslim Brotherhood influence, and trouble for the West, with this fall’s elections approaching. PG: 30% of Egyptians are illiterate. Its clear that the brotherhood will make a mockery of CNN's arab spring. The Peanut Gallery continues to declare that the arab spring is a political farce created to place a positive spin on this administration's disasterous middle eastern policies.

3.Mobs of ordinary Egyptians joined with soldiers to drive pro-democracy protesters from their encampment in Tahrir Square here Monday, showing how far the uprising's early heroes have fallen in the eyes of the public. Six months after young, liberal activists helped lead the popular movement that ousted President Hosni Mubarak, the hard core of these protesters was forcibly dispersed by the troops. Egyptians ganged up on the activists as they retreated from the square that has come to symbolize the Arab Spring. Expect a confrontation between the army and The Muslim Brotherhood!

4.Anybody remember Libya? Remember the western press cheering as "the tough guys" rushed in to save the "the good guys"? John Wayne and the 7th Cavalry doing it Hollywood style. Well, folks, as it turns out, this movie will probably run out of financing. The debt ceiling crisis simply magnifies the stupidity of the Libya decision. It also deepens the perception that most decision makers in the US, from the president down to the senate and congress are disconnected from the realities of a new world order that is slowly evolving.

5.A European study involving nearly 1,000 participants has found no link between cellular-phone use and brain tumors in children and adolescents, a group that may be particularly sensitive to phone emissions. The study, published in the Journal of the National Cancer Institute, was prompted by concerns that the brains of younger users may be more vulnerable to adverse health effects—such as cancer—from cellphones. Children have a developing nervous system, and cellphone emissions penetrate deeper into their brains.

6.WASHINGTON—The U.S. for the first time formally accused Iran of forging an agreement with al Qaeda, a pact in which Tehran helps move money, arms and fighters through Iranian territory to the terrorist group's bases in Pakistan and Afghanistan. "By exposing Iran's secret deal with al Qaeda allowing it to funnel funds and operatives through its territory, we are illuminating yet another aspect of Iran's unmatched support for terrorism," David Cohen, the Treasury Department's undersecretary for terrorism and financial intelligence, said on Thursday. PG: Are the Americans laying the initial groundwork for a strike against Iran?

7.The head of the Turkish armed forces General Isik Kosaner along with the heads of the ground, naval and air forces have resigned, broadcaster CNN Turk reported on Friday, apparently plunging NATO's second biggest military into disarray. The civilian government is trying to take control of the secular military for its own purposes. PG: This might takes years if not decades and emphasises the divide between secular and religious Turks.

8.Central banks are ramping up their gold buying as they seek to diversify their reserves away from the dollar and other beleaguered currencies. South Korea became the latest government to disclose a big bullion purchase, saying Tuesday that it recently bought 25 metric tons - more than doubling its holdings to 39 metric tons. Mexico, Russia and Thailand have also been major buyers in 2011.

9.George Soros sold all his gold holdings in the first quarter of this year, A year after calling it the "ultimate bubble". The price at the time of this inspired statement was below $1000 an ounce. On the other hand, John Paulson is still holding on tight to his gold. The peanut gallery maintains that gold, and the poor cousin, silver are in a primary bull market that is entering the blowoff stage. This is where phsycology takes over, so expect dramatic action in these markets. 

10. The US debt deal is done. Lets look at the numbers. Ten years from now, at the present interest rate the debt should be $24 trillion. The present cuts reduce this figure to $22 trillion. A drop in the ocean. The markets crashed on the news. Probably because the business world had a good look at who is running the show, and voted with their feet. Meanwhile while everybody points fingers, history will only point to one individual. The commander-in chief Barack Obama. Amazing how this politician immediately takes credit for the good news but distributes blame for the bad news.

Yesterday's answer has nothing to do with today's problem - Bill gates

Israel-The Miracle Continues...

1.Israeli Green-Tech Makes First Solar-Powered Window

Jerusalem, July 14 - Israeli innovators have launched the world’s first solar-powered window, a revolutionary breakthrough that could cut heating and cooling costs for homes and businesses around the world and lead the way to a future of clean, energy efficient, self-powered buildings. "Harnessing The Sun" is what Gonen Fink, CEO of Pythagoras Solar, calls his company’s clean-energy breakthrough. The company is part of a new high-tech trend in Israel focusing on alternative energy. In recent years, Israel has helped pioneer the production of electric cars, solar power, wind power, biofuels and more.

2.IAI teams with Dassault in French Air Force UAV deal

In a deal worth an estimated €300-400 million, IAI will manufacture the F-Heron TP in Israel, and Dassault will assemble it. The Heron TP is one of the world's most advanced UAVs. It has a wingspan of 27 meters (the same as a Boeing 737 airliner), an operating range of over 40 hours, a GPS system for very long-range operations, and avionics for all-weather and day and night operations. The Heron TP is the latest version of the Heron, which has been operational for many years by the IAF, and by the Luftwaffe, the Royal Australian Air Force, the Royal Canadian Air Force in operations in Afghanistan and other arenas.

COMMENT: In case anyone has forgotten, a reminder that there are only 7 million Israeli's.

3.Cabinet approves new NIS 1.6b Eilat int'l airport

The cabinet today approved construction of a new international airport for Eilat at Timna at a cost NIS 1.6 billion. The airport will replace the resort town's current airport, and will end civilian use of the airport at the Ovda Air Force Base. 

COMMENT: With record amounts of tourists arriving every month in Israel, this was a natural step.

4.Israel's unemployment rate at all-time low

Israel's unemployment continued to fall in May 2011, reaching 5.7% of the civilian labor force in trend figures - an all-time low, the Central Bureau of Statistics reported today. The Bank of Israel recently commented on the encouraging labor market figures, saying that the economy was nearing full employment. This means that most of the civilian labor force that wants to work is working.

COMMENT: At full employment salaries will begin to rise (at the moment they are flat) and inflation could be a problem. Oh for problems like these!

5. Three countries interested in Iron Dome

"Israel Defense" reports that three countries are interested in procuring the Iron Dome anti-missile defense system, which proved its operational capability earlier this year. Two Asian countries are actively examining the system, made by Rafael Advance Defense Sysytems and military representatives may soon visit Israel for a demonstration. A US expert team is due to shortly arrive in Israel to examine Iron Dome. "The Americans understand that this is the only solution against rockets and mortars threatening local forces around the world," the source said. One of Iron Dome's most important successes is its radar system. The radar can distinguish between threats to a populated area and incoming rockets that will hit open ground.

6.Israel wins gold in Math Olympiad

Israeli students won five medals, one gold and four bronze, in the 52nd International Mathematical Olympiad (IMO), which concluded in Amsterdam on Friday. The instructor and head of the Israeli delegation, Lev Radislevsky, added: "We are very proud. We have a very talented team and we believed we would have great achievements in the Olympiad."

COMMENT: We are all very proud, Lev. Well done and keep the flag flying high. This comes on the heels of The Israeli physics team winning two gold medals, two silver medals and one bronze medal on Sunday at the International Physics Olympiad for high school students, which took place in Bangkok, Thailand.

Chains do not hold people together. It is threads, the threads and textures of their values, which sew people together through the years - Camille Corda Lee