Happy St. Patrick’s Day weekend!
My Dear Friends,
Major Iranian banks have been deleted from the SWIFT system. This is the means of bank wire fund transfers.
This is a major act of economic war against Iran that challenges others to consider similar tactics. It might be reasonable if Iran had not just had large allies restate their allegiance in the form of China and Russia. This would be reasonable if the West had no economic points of vulnerability.
Unfortunately the Western financial system has real weak points that are in the hands of Iran’s new most powerful allies.
The US dollar utilization as a settlement currency is waning. The US bond market has already lost its main buyers who in China’s case have been sellers.
The Swift System war card would have better been held as a threat than used.
This is going to come home, and hurt after June 2012.
Jim Sinclair’s Commentary
The Swift arm of the law? The Swift System is being used as a weapon in the sanctions war. This will elevate gold as a settlement mechanism and further depreciate the dollar as a settlement mechanism.
This is coming home dollar wise and will create other currency blocks as settlement mechanisms.
A system to replace Swift will take birth. This is WAR, not talk of war.
U.S. May Sanction India Over Level of Iran-Oil Imports
By Indira A.R. Lakshmanan and Pratish Narayanan – Mar 15, 2012 6:43 AM MT
India has failed to reduce its purchases of Iranian oil, and if it doesn’t do so, President Barack Obama may be forced to impose sanctions on one of Asia’s most important nations, Obama administration officials said yesterday.
A decision to levy penalties under a new U.S. law restricting payments for Iranian oil could come as early as June 28, according to several U.S. officials who spoke on condition of anonymity because of the sensitivity of the issue.
“Given the level of trade, and in particular oil, between Iran and India, targeting an Indian entity that facilitates Iran’s access to the international financial market should be top of mind for the U.S. Treasury,” Avi Jorisch, a former Treasury Department official who is now a Washington-based consultant on deterring illicit finance, said in an interview.
The U.S. law, which targets oil payments made through Iran’s central bank, applies to any country that doesn’t make a “significant” reduction in its Iranian crude oil purchases during the first half of this year. If India fails to cut Iranian imports sufficiently, Obama may be compelled to bar access to the U.S. banking system for any Indian bank processing oil payments through Iran’s central bank, the U.S. officials said.
While India hasn’t asked its refiners to stop purchasing Iranian crude, the government has told processors in the South Asian nation to seek alternate supplies and gradually reduce their dependence on the Persian Gulf state due to increasing pressure from the U.S. in recent weeks, three Indian officials with direct knowledge of the situation said today.
‘SWIFT’ Reaction: Iran May Block Oil Exports
Iran may block oil exports a threatened the world’s economies as a reaction to new sanctions, says its former intelligence minister.
By Tzvi Ben Gedalyahu
First Publish: 3/18/2012, 7:48 AM
Iran may impose a blockade on oil exports that threaten the world’s economies as a reaction to new unprecedented sanctions, says its former intelligence minister Ali Fallahian.
Belgium’s Society for Worldwide Interbank Financial Telecommunication (SWIFT), which handles most international bank transfers, has eliminated Iran from its services.
The move is a “direct result of international and multilateral action to intensify financial sanctions against Iran," said SWIFT CEO Lazaro Campos. The embargo on Iran took effect Saturday and reduces Iran’s ability to use a secure network to receive payments. It also will affect Iranians wanting to receive money from relatives outside the country.
SWIFT’s decision is the harshest sanction placed on Iran in efforts to force the Islamic Republic to cooperate with United Nations nuclear inspectors and open up its nuclear facilities for surveillance to make sure it is not trying to build a nuclear weapon.The Western sanctions against companies dealing with Iran has not spread to China and India, but the SWIFT sanctions will make it harder for them to pay Iran, which has resorted to the barter system for some purchases.
“If the United States or Europe considers it its right to ignore international laws to meet its own interests, Iran may also decide to respond in kind wherever possible,” Fallahian told the government-controlled PRESS TV.
Jim Sinclair’s Commentary
About this there is no question.
Meredith Whitney: ‘Tidal Wave’ of Muni-Bond Defaults Still Coming
Thursday, 15 Mar 2012 01:35 PM
By Forrest Jones
A "tidal wave" of defaults in the municipal bond market is still building and will eventually hit the United States, says Wall Street analyst Meredith Whitney.
Many U.S. cities, towns and municipalities are insolvent but are treading along similar to how Greece did for years before officially defaulting.
In late 2010, Whitney told 60 Minutes that municipal defaults could run up into the hundreds of billions of dollars although that hasn’t happened. Maybe not officially, but insolvency is a deepening problem, and defaults are still on the way.
"You have Stockton (Calif.) that is on the brink of bankruptcy. You have five cities, including Detroit, which is on the brink of insolvency. It’s fascinating, because there’s been so much back-room political maneuvering to keep these cities from going bust," Whitney tells CNBC, pointing out how California is trying to pass legislation to prevent municipalities from declaring bankruptcy.
"So there’s been every effort on the part of the states to prevent this tidal wave of defaults, which is going to happen sooner or later. It’s happening at an accelerating pace."
Taxes are rising, social services are being cut and fiscal shortfalls will keep widening.
Jim Sinclair’s Commentary
Knowledge is power. Barack Obama signs an executive order this past Friday in preparation of national chaos.
Office of the Press Secretary
For Immediate Release
March 16, 2012
Executive Order — National Defense Resources Preparedness
NATIONAL DEFENSE RESOURCES PREPAREDNESS
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), and section 301 of title 3, United States Code, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
PART I – PURPOSE, POLICY, AND IMPLEMENTATION
Section 101. Purpose. This order delegates authorities and addresses national defense resource policies and programs under the Defense Production Act of 1950, as amended (the "Act").
Sec. 102. Policy. The United States must have an industrial and technological base capable of meeting national defenserequirements and capable of contributing to the technological superiority of its national defense equipment in peacetime and in times of national emergency. The domestic industrial and technological base is the foundation for national defense preparedness. The authorities provided in the Act shall be used to strengthen this base and to ensure it is capable of responding to the national defense needs of the United States.
Sec. 103. General Functions. Executive departments and agencies (agencies) responsible for plans and programs relating to national defense (as defined in section 801(j) of this order), or for resources and services needed to support such plans and programs, shall: