Many Daily Reckoning readers are familiar with the original petrodollar deal the U.S made with Saudi Arabia.
It was set up by Henry Kissinger and Saudi princes in 1974 to prop up the U.S. dollar. At the time, confidence in the dollar was on shaky ground because President Nixon had ended gold convertibility of dollars in 1971.
Saudi Arabia was receiving dollars for their oil shipments, but they could no longer convert the dollars to gold at a guaranteed price directly with the U.S. Treasury. The Saudis were secretly dumping dollars and buying gold on the London market. This was putting pressure on the bullion banks receiving the dollar. Continue reading →
If the world has invested in the wrong things, and China is one of those things, then the bursting of the China bubble may be the greatest catastrophe of all. China’s financial system is a mess, and a major crisis cannot be far off. With the U.S. economy dipping lower and Europe facing its own financial nightmare, China cannot postpone its own day of reckoning. So what will China’s leaders do? What plans have they made?
To give readers some idea of the problem, a recent WikiLeak revealed that the U.S. had advanced knowledge of a secret Chinese missile test last year. In response to this revelation, Chinese Gen. Xu Guangyu told the South China Morning Post that American officials possessed enough advanced detail to suggest the presence of a sensitively placed U.S. spy in China’s rocket forces. According to the South China Morning Post, Gen. Xu said that “if China could no longer keep secret its missile launches, it would not be able to launch a surprise attack on the U.S.”
But why would China want to launch a surprise attack on the U.S.?
The most secretive of all the Special Operations forces, Delta Force, like the Air Force Special Ops shown here, often works under cover of darkness. STAFF SGT. EMERSON NUÑEZ/U.S. AIR FORCE. INSET: U.S. ARMY
Detachment Delta. The CAG—Combat Application Group. ACE—the Army Compartmented Element. Or simply “The Unit.” No matter what you call Delta Force, the U.S. Army’s first and most effective counterterrorism force has been silently protecting America and its allies since the late 1970s, when an upswing in terrorist activity such as bombings and hijackings led the military to create its own elite task force based on the British Special Air Service (SAS). Continue reading →
Russia will revive the Cold War-era Intervision Song Contest this October, according to July 25 reports.
Intervision was first established back in 1977 as a direct rival to the Europe-oriented Eurovision Song Contest. Few people in the participating Soviet nations had private telephones, so Intervision’s television viewers would turn on their house lights if they liked a certain song, or off if they didn’t. The state energy company would then record the size of each power spike, and report the results to the television company to determine points for each contestant. As the Soviet Union began to weaken in the early 1980s, Intervision was discontinued.
At first glance, what comes to mind is the Iranian hostage crisis of 1977 . Will this be escalated by Egypt? What will the Obama administration reaction be? This could very well be Obama’s incompetent Carter moment. Make no mistake, this is a hostage crisis.
(Reuters) – Six Americans working for publicly funded U.S. organizations promoting democracy in Egypt have been barred from leaving the country, provoking angry demands in Washington that Cairo’s new military rulers stop “endangering American lives”.
Among those hit by travel bans – one of those targeted called it “de facto detention” – is a son of U.S. Transportation Secretary Ray LaHood, as well as other foreign staffers of the International Republican Institute and National Democratic Institute, officials at the two organizations said.
The United States said Egypt should reverse them: “We are urging the government of Egypt to lift these restrictions immediately and allow these folks to come home as soon as possible,” State Department spokeswoman Victoria Nuland said.