Good News in Libya Won’t Last

Posted at 1:00 PM (CST) by & filed under

By Greg Hunter’s

Dear CIGAs,

It looks like the end of power for tyrant Muammar Gaddafi.  He’s been in power 40 years, but what will take his place?  Remember when stories broke out a few months ago about Libyan rebel al-Qaeda links?  It is a fact that was reported in one of many publications such as The Telegraph back in March.  The story headline read “Libyan rebel commander admits his fighters have al-Qaeda links.”  The story went on to say, “Abdel-Hakim al-Hasidi, the Libyan rebel leader, has said jihadists who fought against allied troops in Iraq are on the front lines of the battle against Muammar Gaddafi’s regime. . . . Earlier this month, al-Qaeda issued a call for supporters to back the Libyan rebellion, which it said would lead to the imposition of “the stage of Islam” in the country.” (Click here to read the complete Telegraph story.)  Did NATO’s 20,000 bombing missions help al-Qaeda win?  It sure looks like it.  The questions are why, and who got more than $6 billion in Libyan gold reserves?  I frankly do not have the answers, but what is coming to power next in Libya could make Gaddafi look like a boy scout.

Meanwhile, the rest of the world is breathing a sigh of relief and the markets are reflecting that, at least for a while.  Sure, Libya will be pumping oil at full speed again, and that should hold oil prices down.  I do not expect oil prices to stay suppressed with all the money printing going on to try to keep the world economy from falling off a cliff.  Friday, Bill Gross of PIMCO told Reuters, “Economic growth is slowing down.”  Gross went on to say that his company is predicting “0% growth,” or close to it by fourth quarter.  Sorry Mr. Gross, according to, the economy is already hitting negative growth.  At the beginning of this month I reported, “The recent year over year 1.6% growth reported by the Bureau of Labor Statistics in the Gross Domestic Product (GDP) is a statistical crock, according to economist John Williams of  In his most recent report, Williams said, ‘The SGS Alternate-GDP estimate for second-quarter 2011 is an approximate annual contraction of 2.8% versus the official estimate of a 1.6% gain.  Such is more negative than the alternate 2.6% annual contraction (2.2% official gain) in the first-quarter.’  Double-dip here we come.” (Click here to read the original post.)