Convergence in Arabian Sea Week 41

The propaganda to attack Iran started when Bush was still in office and continues to today under the leadership of the Noble Peace Prize winner. The third US Aircraft carrier (CVN-74 Stennis) and the second big-deck amphibious warfare ship (LHA-5 Peleliu) dispatched several weeks ago to meet with the 5th US Fleet headquartered in the Arabian Sea, located by the Straits of Hormuz next to Iran.

In the 1980s, the USSR had tens of thousands of nuclear warheads aimed at the US, and not a drop of blood was shed. But now it seems the US has to invade every turd-world country that might have even a remote possibility of arming itself sometime in the future.
Who knows how it will kick off, but one things is certain: Wars with Libya, Syria, Iraq, Lebanon, Somalia, Sudan, and Iran have all been planned in advance as General Clark admits in this video:

$50 Silver by Dec 31, 2012

Wynter Benton (wynter_benton), is an anonymous blogger on Yahoo Finance who claims to be a group of former, disgruntled JP Morgan commodities traders under Blythe Master. They have accurately predicted many silver moves in early 2011, and now they have made a new prediction: silver will trade above $50 before Dec 31, 2012.

According to wynter_benton, the take-down of MF Global on October 31, 2011 was designed to prevent wynter_benton from taking delivery of a massive amount of physical silver that would break JP Morgan’s naked short silver position.

Benton also claims that JP Morgan’s $36 silver derivative time-bomb is still ticking, and that the ex-JPM traders have re-grouped and are on the offensive again.

I have no doubt silver will break $50 in the near future.  The question is: how long will it stay there?  Will it stick this time?

Social Security Disability Fund Will Run Out in 2015

According to the Social Security Trust Fund, the Social Security Disability Fund will run out in 2015. Either benefits for 12 million people will get cut by 30% (current law), or any shortfall will have to come from more deficits and debt. I suppose a third option would be to put the government in charge of health care to ensure these 12 million people die early.

S&P 500-to-Gold Ratio

Watch the S&P 500-to-gold ratio. If it reaches 0.1566, the S&P 500-to-Gold ratio has reached its historical low.

Today’s S&P 500-to-gold ratio has not yet fallen to its historical low of 0.1566. To reach historical lows set in 1981, the S&P 500 would either need to fall to 290, gold would need to rise to $7275/oz or some combination of the two would have to occur.

Source: Seeking Alpha